Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2014 | Jul. 28, 2015 | Jun. 30, 2015 | |
Document And Entity Information | |||
Entity Registrant Name | LIFEWAY FOODS INC | ||
Entity Central Index Key | 814,586 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2014 | ||
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 | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 16,346,017 | ||
Entity Public Float | $ 91,167,353 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2,014 |
Consolidated Statements Of Fina
Consolidated Statements Of Financial Condition - USD ($) | Dec. 31, 2014 | Dec. 31, 2013 |
Current assets | ||
Cash and cash equivalents | $ 3,260,244 | $ 3,306,608 |
Investments | 2,779,140 | 2,516,380 |
Certificates of deposits in financial institutions | 149,965 | 15,373 |
Inventories | 5,814,219 | 6,899,008 |
Accounts receivable, net of allowance for doubtful accounts and discounts of $1,050,000 in 2014 and 2013 | 10,213,541 | 10,444,839 |
Prepaid expenses and other current assets | 251,922 | 128,323 |
Other receivables | 134,338 | 103,272 |
Deferred income taxes | 408,340 | 322,071 |
Refundable income taxes | 1,140,796 | 1,014,947 |
Total current assets | 24,152,505 | 24,750,821 |
Property and equipment, net | 21,892,395 | 20,824,448 |
Intangible assets | ||
Goodwill | 14,068,091 | 14,068,091 |
Other intangible assets, net of accumulated amortization of $5,184,036 and $4,468,359 in 2014 and 2013, respectively | 3,059,764 | 3,750,441 |
Total intangible assets | 17,127,855 | 17,818,532 |
Other Assets | ||
Long-term accounts receivable net of current portion | 251,683 | 280,000 |
Total assets | 63,424,438 | 63,673,801 |
Current liabilities | ||
Current maturities of notes payable | 872,285 | 875,002 |
Accounts payable | 5,586,755 | 6,723,179 |
Accrued expenses | 2,066,076 | 1,284,060 |
Total current liabilities | 8,525,116 | 8,882,241 |
Notes payable | 8,124,515 | 8,999,012 |
Deferred income taxes | 2,075,095 | 2,843,426 |
Total liabilities | 18,724,726 | 20,724,679 |
Stockholders' equity | ||
Common stock, no par value; 40,000,000 shares authorized; 17,273,776 shares issued; 16,346,017 shares outstanding at 2014 and 2013 | 6,509,267 | 6,509,267 |
Paid-in-capital | 2,032,516 | 2,032,516 |
Treasury stock, at cost | (8,187,682) | (8,187,682) |
Retained earnings | 44,543,618 | 42,587,214 |
Accumulated other comprehensive income (loss), net of taxes | (198,007) | 7,807 |
Total stockholders' equity | 44,699,712 | 42,949,122 |
Total liabilities and stockholders' equity | $ 63,424,438 | $ 63,673,801 |
Consolidated Statements Of Fin3
Consolidated Statements Of Financial Condition (Parenthetical) - USD ($) | Dec. 31, 2014 | Dec. 31, 2013 |
Current assets | ||
Allowance for doubtful accounts and discounts | $ 1,050,000 | $ 1,050,000 |
Intangible assets | ||
Accumulated Amortization | $ 5,184,036 | $ 4,468,359 |
Stockholders' equity | ||
Common stock, no par value | $ 0 | $ 0 |
Common stock, shares authorized | 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 Inco
Consolidated Statements of Income and Comprehensive Income - USD ($) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Consolidated Statements Of Income And Comprehensive Income | |||
Sales | $ 130,215,716 | $ 108,966,094 | $ 89,754,007 |
Less: discounts and allowances | (11,256,103) | (11,441,952) | (8,402,742) |
Net sales | 118,959,613 | 97,524,142 | 81,351,265 |
Cost of goods sold | 87,560,837 | 68,274,674 | 53,098,191 |
Depreciation expense | 2,535,937 | 1,626,575 | 1,629,594 |
Total cost of goods sold | 90,096,774 | 69,901,249 | 54,727,785 |
Gross profit | 28,862,839 | 27,622,893 | 26,623,480 |
Selling expenses | 14,534,038 | 11,296,381 | 10,703,980 |
General and administrative | 9,377,645 | 7,582,397 | 6,319,972 |
Amortization expense | 715,677 | 712,803 | 754,817 |
Total operating expenses | 24,627,360 | 19,591,581 | 17,778,769 |
Income from operations | 4,235,479 | 8,031,312 | 8,844,711 |
Other income (expense): | |||
Interest and dividend income | 122,018 | 116,380 | 85,383 |
Rental income | 4,300 | 11,727 | 12,285 |
Interest expense | (276,895) | (203,365) | (177,622) |
Gain on sale of investments, net reclassified from OCI | 98,953 | 195,500 | 71,286 |
Gain (Loss) on sale of equipment | 6,592 | (304,958) | $ (11,169) |
Other Income (Expense) | 8,192 | 10,577 | |
Total other income (expense) | (36,840) | (174,139) | $ (19,837) |
Income before provision for income taxes | 4,198,630 | 7,857,173 | 8,824,874 |
Provision for income taxes | 2,242,226 | 2,866,875 | 3,205,076 |
Net income | $ 1,956,404 | $ 4,990,298 | $ 5,619,798 |
Basic and diluted earnings per common share | $ 0.12 | $ 0.31 | $ 0.34 |
Weighted average number of shares outstanding | 16,346,017 | 16,346,017 | 16,373,224 |
COMPREHENSIVE INCOME | |||
Net income | $ 1,956,404 | $ 4,990,298 | $ 5,619,798 |
Other comprehensive income (loss), net of tax: | |||
Unrealized gains (losses) on investments (net of tax), $93,540, $49,793 and $79,159 for 2014, 2013 and 2012, respectively | (145,571) | 64,674 | 102,816 |
Less reclassification adjustment for (gains) losses included in net income (net of taxes), $38,711, $85,042 and $31,009 for 2014, 2013 and 2012, respectively | (60,243) | (110,458) | (40,277) |
Comprehensive income | $ 1,750,590 | $ 4,944,514 | $ 5,682,337 |
Statement - Consolidated Statem
Statement - 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, Shares issued at Dec. 31, 2011 | 17,273,776 | |||||
Beginning Balance, Shares outstanding at Dec. 31, 2011 | 16,409,317 | |||||
Beginning Balance, Treasury stock shares at Dec. 31, 2011 | 864,459 | |||||
Beginning Balance, Amount at Dec. 31, 2011 | $ 6,509,267 | $ 2,032,516 | $ (7,606,974) | $ 34,431,296 | $ (8,948) | $ 35,357,157 |
Redemption of stock Shares Outstanding | (63,300) | |||||
Redemption of stock Treasury Stock | 63,300 | |||||
Redemption of stock | $ (580,708) | (580,708) | ||||
Other comprehensive income (loss): | ||||||
Unrealized gains on securities, net of taxes | $ 62,539 | 62,539 | ||||
Net income | $ 5,619,798 | 5,619,798 | ||||
Dividends ($.08) per share | (1,146,317) | (1,146,317) | ||||
Ending Balance, Shares issued at Dec. 31, 2012 | 17,273,776 | |||||
Ending Balance, Shares outstanding at Dec. 31, 2012 | 16,346,017 | |||||
Ending Balance, Treasury stock shares at Dec. 31, 2012 | 927,759 | |||||
Ending Balance, Amount at Dec. 31, 2012 | $ 6,509,267 | $ 2,032,516 | $ (8,187,682) | $ 38,904,777 | $ 53,591 | $ 39,312,469 |
Redemption of stock Shares Outstanding | ||||||
Redemption of stock Treasury Stock | ||||||
Redemption of stock | ||||||
Other comprehensive income (loss): | ||||||
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, Shares issued at Dec. 31, 2013 | 17,273,776 | 17,273,776 | ||||
Ending Balance, Shares outstanding at Dec. 31, 2013 | 16,346,017 | 16,346,017 | ||||
Ending Balance, Treasury stock shares at Dec. 31, 2013 | 927,759 | |||||
Ending Balance, Amount at Dec. 31, 2013 | $ 6,509,267 | $ 2,032,516 | $ (8,187,682) | $ 42,587,214 | $ 7,807 | $ 42,949,122 |
Redemption of stock Shares Outstanding | ||||||
Redemption of stock Treasury Stock | ||||||
Redemption of stock | ||||||
Other comprehensive income (loss): | ||||||
Unrealized gains on securities, net of taxes | $ (205,814) | $ (205,814) | ||||
Net income | $ 1,956,404 | $ 1,956,404 | ||||
Dividends ($.08) per share | ||||||
Ending Balance, Shares issued at Dec. 31, 2014 | 17,273,776 | 17,273,776 | ||||
Ending Balance, Shares outstanding at Dec. 31, 2014 | 16,346,017 | 16,346,017 | ||||
Ending Balance, Treasury stock shares at Dec. 31, 2014 | 927,759 | |||||
Ending Balance, Amount at Dec. 31, 2014 | $ 6,509,267 | $ 2,032,516 | $ (8,187,682) | $ 44,543,618 | $ (198,007) | $ 44,699,712 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Cash flows from operating activities: | |||
Net income | $ 1,956,404 | $ 4,990,298 | $ 5,619,798 |
Adjustments to reconcile net income to net cash flows from operating activities: | |||
Depreciation and amortization | 3,251,614 | 2,339,378 | 2,384,411 |
Gain on sale of investments, net | (98,953) | (195,500) | (71,286) |
Deferred income taxes | (719,778) | (238,804) | (434,896) |
Bad Debt expense | 204,700 | 32,604 | 435,344 |
(Gain) Loss on sale of equipment | (6,592) | 304,958 | 11,169 |
(Increase) decrease in operating assets: | |||
Accounts receivable | 54,915 | (1,741,759) | (1,213,253) |
Other receivables | (31,066) | (94,447) | 215,379 |
Inventories | 1,084,789 | (959,822) | (984,711) |
Refundable income taxes | (125,849) | (930,119) | (43,512) |
Prepaid expenses and other current assets | (123,599) | (6,185) | (17,508) |
Increase (decrease) in operating liabilities: | |||
Accounts payable | (1,136,424) | 2,466,454 | (129,514) |
Accrued expenses | $ 782,016 | 128,383 | 601,952 |
Income taxes payable | (254,311) | 254,311 | |
Net cash provided by operating activities | $ 5,092,177 | 5,841,128 | 6,627,684 |
Cash flows from investing activities: | |||
Purchases of investments | (3,280,157) | (3,518,781) | (1,452,672) |
Proceeds from sale of investments | 2,773,570 | 3,001,016 | $ 1,475,730 |
Redemption of certificates of deposit | 15,000 | $ 423,997 | |
Investments in certificates of deposit | (149,965) | $ (150,255) | |
Purchases of property and equipment | (3,684,368) | $ (8,479,886) | $ (1,428,717) |
Proceeds from sale of equipment | 64,593 | 710,681 | |
Net cash used in investing activities | $ (4,261,327) | $ (7,862,973) | $ (1,555,914) |
Cash flows from financing activities: | |||
Checks written in excess of bank balance | (592,040) | ||
Purchase of treasury stock | (580,708) | ||
Dividends paid | $ (1,307,861) | (1,146,317) | |
Net proceeds from debt issuance | 4,975,000 | 250,000 | |
Repayment of notes payable | $ (877,214) | (624,912) | (1,831,626) |
Net cash used in financing activities | (877,214) | 3,042,227 | (3,900,691) |
Net decrease in cash and cash equivalents | (46,364) | 1,020,382 | 1,171,079 |
Cash and cash equivalents at the beginning of the period | 3,306,608 | 2,286,226 | 1,115,147 |
Cash and cash equivalents at the end of the period | $ 3,260,244 | $ 3,306,608 | $ 2,286,226 |
Nature Of Business
Nature Of Business | 12 Months Ended |
Dec. 31, 2014 | |
Notes to Financial Statements | |
Note 1 - Nature Of Business | Lifeway Foods, Inc. (the Company or Lifeway), an Illinois corporation, commenced operations in February 1986, and was incorporated under the laws of the State of Illinois on May 19, 1986. The Companys principal business activity is the manufacturing of probiotic, cultured, functional dairy health food products. Lifeways primary product is kefir, a dairy beverage similar to but distinct from yogurt, in several flavors and in several packages. In addition to kefir, Lifeway manufactures Lifeway Farmer Cheese, a line of various farmer cheeses. Lifeway distributes its products throughout the United States and in London. The Company manufactures all of its products distributed in the United States at Company-owned facilities. In the Chicago metropolitan area, Lifeway distributes its products on its own trucks and via distributors. The Company directly distributes its products in the Philadelphia and Tri State metropolitan areas using its own trucks . |
Summary Of Significant Accounti
Summary Of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2014 | |
Notes to Financial Statements | |
Note 2 - Summary Of Significant Accounting Policies | Out-of-period adjustments During fiscal 2014, adjustments to correct the accounting for certain items related to prior periods, in the aggregate, decreased income before provision for income taxes by approximately $600,000 and net income by approximately $400,000. These errors relate to an understatement of accrued expenses and the provision for income taxes arising primarily from inaccurate accounting for certain employee expense reports and an understatement of depreciation expense arising from assigning an incorrect useful life. We determined these adjustments to be immaterial, individually and in the aggregate, to our previously filed consolidated financial statements. A summary of the significant accounting policies applied in the preparation of the accompanying consolidated financial statements follows: Basis of presentation The accounting and reporting policies of the Company and its subsidiaries conform to U.S. generally accepted accounting principles. 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) (dissolved in February 2012), First Juice, Inc. (dissolved in December 2011) and Lifeway Wisconsin, Inc. Lifeway Wisconsin, Inc. was created to facilitate the operation of a production facility in Wisconsin. 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 28%, 35% and 31% of gross sales for the years ended December 31, 2014, 2013 and 2012, respectively. These customers accounted for approximately 23%, 25% and 30% of accounts receivable as of December 31, 2014, 2013 and 2012, 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 Companys 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 Companys 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 Companys products or changes in the size of the market for the Companys products. If the estimate of an intangible assets 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 Trade names 8-15 Formula 10 Customer relationships 8-12 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 Companys 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. Treasury stock Treasury stock is recorded using the cost method. Advertising and promotional costs The Company expenses advertising costs as incurred. For the years ended December 31, 2014, 2013 and 2012 total advertising expenses were $3,875,384, $2,685,691 and $2,679,798, 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. Segments The Company has two separate operating segments, the sale of fermented dairy products and three retail locations in Illinois that sell the Companys fermented dairy products. The Company has determined reportable segments based on how the Companys 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. Substantially all of the consolidated revenues of the Company relate to the sale of fermented dairy products which are produced using the same processes and materials and are sold to consumer retail food sellers through direct delivery and distributors in the United States. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2014 | |
Notes to Financial Statements | |
Note 3 - Intangible Assets | Intangible assets, and the related accumulated amortization, consist of the following: December 31, 2014 December 31, 2013 Cost Accumulated Amortization Cost Accumulated Amortization Recipes $ 43,600 $ 43,600 $ 43,600 $ 43,600 Customer lists and other customer related intangibles 4,529,200 2,926,719 4,504,200 2,474,790 Customer relationship 985,000 666,869 985,000 596,785 Trade names 2,248,000 1,178,198 2,248,000 1,028,334 Formula 438,000 368,650 438,000 324,850 $ 8,243,800 $ 5,184,036 $ 8,218,800 $ 4,468,359 Amortization expense is expected to be approximately the following for the 12 months ending December 31: 2015 $ 715,677 2016 697,427 2017 671,877 2018 634,863 2019 209,578 Thereafter 130,342 $ 3,059,764 Amortization expense during the years ended December 31, 2014, 2013 and 2012 was $715,677, $712,803 and $754,817, respectively. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2014 | |
Notes to Financial Statements | |
Note 4 - Investments | The cost and fair value of investments classified as available for sale are as follows: December 31, 2014 Cost Unrealized Gains Unrealized Losses Fair Value Equities $ 530,328 $ 19,608 $ (64,046) $ 485,890 Mutual Funds 445,337 0 (10,624) 434,713 Preferred Securities 180,120 195 (2,075) 178,240 Corporate Bonds 1,948,596 1,880 (270,179) 1,680,297 Total $ 3,104,381 $ 21,683 $ (346,924) $ 2,779,140 December 31, 2013 Cost Unrealized Gains Unrealized Losses Fair 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 December 31, 2012 Cost Unrealized Gains Unrealized Losses Fair Value Equities $ 639,974 $ 90,875 $ (5,190 ) $ 725,659 Corporate Bonds 1,135,064 16,212 (7,047 ) 1,144,229 Total $ 1,775,038 $ 107,087 $ (12,237 ) $ 1,869,888 Proceeds from the sale of investments were $2,773,570, $3,001,016 and $1,475,730 for the years ended December, 2014, 2013 and 2012, respectively. Gross gains of $177,420, $248,223 and $88,713 and gross losses of $78,467, $52,723 and $17,427 were realized on these sales during the years ended December, 2014, 2013 and 2012 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 December, 2014, 2013 and 2012: Less Than 12 Months 12 Months or Greater Total December 31, 2014 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Equities $ 162,268 $ (49,053 ) $ 141,417 $ (14,993 ) $ 303,685 $ (64,046 ) Mutual Funds 434,713 (10,624 ) 0 0 434,713 (10,624 ) Preferred Securities 80,640 (2,075 ) 0 0 80,640 (2,075 ) Corporate Bonds 1,056,140 (194,641 ) 497,277 (75,538 ) 1,553,417 (270,179 ) $ 1,733,761 $ (256,393 ) $ 638,694 $ (90,531 ) $ 2,372,455 $ (346,924 ) Less Than 12 Months 12 Months or Greater Total December 31, 2013 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Equities $ 213,222 $ (32,180 ) $ 0 $ 0 $ 213,222 $ (32,180 ) 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 $ (90,456 ) $ 96,726 $ (6,593 ) $ 1,150,059 $ (97,049 ) Less Than 12 Months 12 Months or Greater Total December 31, 2012 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Equities $ 63,620 $ (3,745 ) $ 21,910 $ (1,445 ) $ 85,530 $ (5,190 ) Corporate Bonds 301,229 (2,721 ) 193,930 (4,326 ) 495,159 (7,047 ) $ 364,849 $ (6,466 ) $ 215,840 $ (5,771 ) $ 580,689 $ (12,237 ) 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 December 31, 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 December 31, 2014. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2014 | |
Notes to Financial Statements | |
Note 5 - Inventories | Inventories consist of the following: December 31, 2014 2013 Finished goods $ 2,373,476 $ 3,027,900 Production supplies 2,069,742 2,690,097 Raw materials 1,371,001 1,181,011 Total inventories $ 5,814,219 $ 6,899,008 |
Property And Equipment
Property And Equipment | 12 Months Ended |
Dec. 31, 2014 | |
Notes to Financial Statements | |
Note 6 - Property And Equipment | Property and equipment consist of the following: December 31, 2014 2013 Land $ 1,856,370 $ 1,856,370 Buildings and improvements 15,125,803 14,587,022 Machinery and equipment 20,434,910 19,633,164 Vehicles 1,244,560 1,244,560 Office equipment 465,801 433,679 Construction in process 2,408,754 177,519 41,536,198 37,932,314 Less accumulated depreciation 19,643,803 17,107,866 Total property and equipment $ 21,892,395 $ 20,824,448 Lifeway completed the purchase of Golden Guernseys assets on July 2, 2013. The cost was approximately $7.4 million. Depreciation expense during the years ended December 31, 2014, 2013 and 2012 was $2,535,937, $1,626,575 and $1,629,594, respectively. Included in depreciation expense for the year ended December 31, 2014 is an adjustment of approximately $470,000 related to the Companys Starfruit leasehold improvements. |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Dec. 31, 2014 | |
Notes to Financial Statements | |
Note 7 - Accrued Expenses | Accrued expenses consist of the following: December 31, 2014 2013 Accrued payroll and payroll taxes $ 891,763 $ 477,312 Accrued property tax 331,278 306,608 Other 843,035 500,140 $ 2,066,076 $ 1,284,060 |
Notes Payable
Notes Payable | 12 Months Ended |
Dec. 31, 2014 | |
Notes to Financial Statements | |
Note 8 - Notes Payable | Notes payable consist of the following: December 31, 2014 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. $ 4,352,222 $ 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. 4,583,333 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. 12,198 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. 49,047 66,334 Total notes payable 8,996,800 9,874,014 Less current maturities 872,285 875,002 Total long-term portion $ 8,124,515 $ 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 these financial covenants at December 31, 2014. Further, the Company is required to deliver its annual and quarterly financial statements and related SEC filings within specified timeframes. Due to the Companys delay in completing such filings the Company obtained waivers as further discussed in Note 16. In addition, as of December 31, 2014 the Company had a $5 million revolving credit facility with The Private Bank. Borrowings under the facility were subject to interest at the prime rate or LIBOR plus 2.5%. At December 31, 2014 there were no borrowings under the facility. The facility expired in May 2015 but has been subsequently extended to May 2016. Maturities of notes payables are as follows: For the 12 months ending December 31, 2015 $ 872,285 2016 859,876 2017 849,084 2018 3,165,566 2019 3,249,989 Total $ 8,996,800 |
Commitments And Contingencies
Commitments And Contingencies | 12 Months Ended |
Dec. 31, 2014 | |
Notes to Financial Statements | |
Note 9 - Commitments And Contingencies | The Company leases three stores for its Starfruit subsidiary. Total rent expense for these leases was $143,384, $347,164 and $379,348 for the years ended December 31, 2014, 2013 and 2012, 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 December 31, 2014 are as follows: For the year ending December 31, 2015 $ 70,539 2016 72,653 2017 74,832 2018 47,761 2019 49,194 Total $ 314,979 |
Provision For Income Taxes
Provision For Income Taxes | 12 Months Ended |
Dec. 31, 2014 | |
Notes to Financial Statements | |
Note 10 - Provision For Income Taxes | The provision for income taxes consists of the following: For the Years Ended December 31, 2014 2013 2012 Current: Federal $ 2,142,526 $ 2,551,505 $ 2,757,332 State and local 819,478 554,174 882,640 Total current 2,962,004 3,105,679 3,639,972 Deferred (719,778 ) (238,804 ) (434,896 ) Provision for income taxes $ 2,242,226 $ 2,866,875 $ 3,205,076 A reconciliation of the provision for income taxes and the income tax computed at the statutory rate is as follows: 2014 2013 2012 Amount Percentage Amount Percentage Amount Percentage Federal income tax expense computed at the statutory rate $ 1,427,534 34.0 % $ 2,666,223 34.0 % $ 3,000,457 34.0 % State and local tax expense, net 214,970 5.1 % 744,974 9.5 % 838,363 9.5 % U.S. domestic manufacturers deduction & other permanent differences 463,646 11.0 % (455,442 ) (5.8 )% (427,525 ) (4.9 )% Additions for tax positions of prior years 215,102 5.1 % 0 0 % 0 0 % Change in tax rates (138,008 ) (3.2 )% 0 0 % 0 0 % Change in tax estimate 58,982 1.4 % (88,880 ) (1.1 )% (206,219 ) (2.2 )% Provision for income taxes $ 2,242,226 53.4 % $ 2,866,875 36.6 % $ 3,205,076 36.4 % A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: 2014 2013 2012 Balance at January 1 $ $ $ Additions for tax positions of prior years 215,102 Balance at December 31 $ 215,102 $ $ The Company recognizes interest accrued related to unrecognized tax benefits in interest expense and penalties in operating expenses. During the years ended December 31, 2014, 2013, and 2012, the Company recognized approximately $64,600, $-, and $- in interest and penalties, respectively. The Company had approximately $64,600 and $- for the payment of interest and penalties accrued at December 31, 2014, and 2013, respectively. Amounts for deferred tax assets and liabilities are as follows: December 31, 2014 2013 2012 Non-current deferred tax assets (liabilities) arising from: Temporary differences - Accumulated depreciation and amortization $ (2,075,095 ) $ (2,896,058 ) $ (3,164,716 ) Capital loss carry-forwards 0 52,632 136,198 Total non-current net deferred tax liabilities (2,075,095 ) (2,843,426 ) (3,028,518 ) Current deferred tax assets arising from: Capital loss carry-forward 8,620 0 0 Unrealized losses (gain) on investments 127,234 (7,589 ) (41,260 ) Inventory 233,366 307,910 265,072 Allowance for doubtful accounts and discounts 39,120 21,750 10,875 Total current deferred tax assets 408,340 322,071 234,687 Net deferred tax liability $ (1,666,755 ) $ (2,521,355 ) $ (2,793,831 ) |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2014 | |
Notes to Financial Statements | |
Note 11 - Supplemental Cash Flow Information | Cash paid for interest and income taxes are as follows: For the Years Ended December 31, 2014 2013 2012 Interest $ 266,581 $ 205,739 $ 191,277 Income taxes $ 3,079,602 $ 4,362,991 $ 3,413,687 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2014 | |
Notes to Financial Statements | |
Note 12 - Fair Value Measurements | Financial Accounting Standards Board (FASB) Accounting Standards Codification Fair Value Measurementsand Disclosures Level 1. Level 2. ● 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. 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 December 31, 2014 and 2013. The majority of the Companys short-term investments are classified within Level 1 or Level 2 of the fair value hierarchy. The Companys valuation of its Level 1 investments, which include mutual funds, is based on quoted market prices in active markets for identical securities. The Companys 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 Companys financial assets at fair value for the years ended December 31, 2014 and 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 December 31, 2014 Level 1 Level 2 Level 3 Total Certificate of Deposits 0 149,965 0 149,965 Mutual Funds 434,713 0 0 434,713 Stocks 485,890 0 0 485,890 Preferred Securities 0 178,240 0 178,240 Corporate Bonds 0 1,680,297 0 1,680,297 Notes Payable 0 8,996,800 0 8,996,800 Assets and Liabilities at Fair Value as of December 31, 2013 Level 1 Level 2 Level 3 Total Certificate of Deposits 0 15,373 0 15,373 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 Companys 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 | 12 Months Ended |
Dec. 31, 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 Companys consolidated financial position or results of operations. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2014 | |
Notes to Financial Statements | |
Note 14 - Recent Accounting Pronouncements | In May 2014, the FASB issued ASU 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. In July 2015 the FASB decided to delay the effective date for implementation of ASU 2014-09. Under the delayed effective date, the Company is required to adopt the new standard not later than its first quarter of 2018. Management is currently evaluating the impact the adoption of ASU 2014-09 will have on the Companys consolidated financial position, results of operations or cash flows and the method of retrospective application, either full or modified. In July 2015, the FASB issued new accounting guidance for measuring inventory. The core principal of the guidance is that an entity should measure inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. This guidance does not apply to inventory that is being measured using the Last-In, First-Out (LIFO) or the retail inventory method. The guidance is effective for financial statements issued for annual and interim periods beginning after December 15, 2016 on a prospective basis. Early adoption is permitted. Management is currently evaluating the impact this will have on the consolidated financial statements. |
Segments And Products
Segments And Products | 12 Months Ended |
Dec. 31, 2014 | |
Notes to Financial Statements | |
Note 15 - Segments And Products | The Company has two separate operating segments, the sale of fermented dairy products and three retail locations in Illinois that sell the Companys fermented dairy products. The Company has determined reportable segments based on how the Companys 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. Substantially all of the consolidated revenues of the Company relate to the sale of fermented dairy products which are produced using the same processes and materials and are sold to consumer retail food sellers through direct delivery and distributors in the United States. The Company had less than $1 million in revenues attributable to its retail locations during the years ended December 31, 2014, 2013 or 2012.The Companys annual revenues attributable to its three retail locations are considered not to be material and accordingly the Company has not presented financial information separately for this segment. Substantially all of the consolidated revenues and assets of the Company are within the United States. The Company manufactures probiotic, cultured, functional dairy health food products. The Companys primary product is kefir, a dairy beverage similar to but distinct from yogurt, in several flavors and in several packages. In addition to the drinkable products, Lifeway manufactures Lifeway Farmer Cheese, a line of various farmer cheeses. Sales of products by category were as follows for the years ended December 31: 2014 2013 2012 Lifeway Farmer Cheese $ 10,266,319 $ 9,388,067 $ 9,777,033 Drinkable Kefir other than ProBugs 110,297,098 90,441,363 73,003,926 ProBugs 7,867,980 7,126,630 4,628,990 Frozen Kefir 1,784,319 2,010,034 2,344,058 Total sales $ 130,215,716 $ 108,966,094 $ 89,754,007 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2014 | |
Notes to Financial Statements | |
Note 16 - Subsequent Events | On April 6, 2015 and May 14, 2015, the Company received letters (the Nasdaq Notices) from The NASDAQ Stock Market LLC (Nasdaq) notifying the Company that because it had not yet filed with the SEC its Annual Report on Form 10-K for the fiscal year ended December 31, 2014 (the Form 10-K) and its Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2015 (the First Quarter Form 10-Q), the Company is not in compliance with the periodic filing requirements for continued listing set forth in Nasdaq Listing Rule 5250(c)(1). The Company, by filing this report, has filed the Form 10-K. The Company is diligently working to file the First Quarter Form 10-Q and the Companys Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2015 (the Second Quarter Form 10-Q) and to regain compliance with Nasdaq Rule 5250(c)(1). On August 11, 2015, The Private Bank agreed to extend the due date for the Company to deliver its Annual Report on Form 10-K for the fiscal year ended December 31, 2014 until August 14, 2015 as well as the due date for the Company to deliver its First Quarter Form 10-Q to September 30, 2015 and its Second Quarter Form 10-Q to October 15, 2015. On August 11, 2015, The Private Bank also extended the maturity date for the revolving credit facility to July 31, 2016. |
Summary Of Significant Accoun23
Summary Of Significant Accounting Policies (Policy) | 12 Months Ended |
Dec. 31, 2014 | |
Summary Of Significant Accounting Policies Policy | |
Basis Of Presentation | The accounting and reporting policies of the Company and its subsidiaries conform to U.S. generally accepted accounting principles. |
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) (dissolved in February 2012), First Juice, Inc. (dissolved in December 2011) and Lifeway Wisconsin, Inc. Lifeway Wisconsin, Inc. was created to facilitate the operation of a production facility in Wisconsin. |
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 28%, 35% and 31% of gross sales for the years ended December 31, 2014, 2013 and 2012, respectively. These customers accounted for approximately 23%, 25% and 30% of accounts receivable as of December 31, 2014, 2013 and 2012, 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 Companys 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 Companys 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 Companys products or changes in the size of the market for the Companys products. If the estimate of an intangible assets 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 Trade names 8-15 Formula 10 Customer relationships 8-12 |
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 Companys 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. |
Treasury Stock | Treasury stock is recorded using the cost method. |
Advertising And Promotional Costs | The Company expenses advertising costs as incurred. For the years ended December 31, 2014, 2013 and 2012 total advertising expenses were $3,875,384, $2,685,691 and $2,679,798, 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. |
Segments | The Company has two separate operating segments, the sale of fermented dairy products and three retail locations in Illinois that sell the Companys fermented dairy products. The Company has determined reportable segments based on how the Companys 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. Substantially all of the consolidated revenues of the Company relate to the sale of fermented dairy products which are produced using the same processes and materials and are sold to consumer retail food sellers through direct delivery and distributors in the United States. |
Summary Of Significant Accoun24
Summary Of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2014 | |
Summary Of Significant Accounting Policies Tables | |
Schedule Of Property And Equipment, Estimated 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 |
Schedule Of Intangible Assets Useful Lives | Category Years Recipes 4 Trade names 8-15 Formula 10 Customer relationships 8-12 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2014 | |
Intangible Assets Tables | |
Schedule Of Accumulated Amortization Of Intangible Assets | December 31, 2014 December 31, 2013 Cost Accumulated Amortization Cost Accumulated Amortization Recipes $ 43,600 $ 43,600 $ 43,600 $ 43,600 Customer lists and other customer related intangibles 4,529,200 2,926,719 4,504,200 2,474,790 Customer relationship 985,000 666,869 985,000 596,785 Trade names 2,248,000 1,178,198 2,248,000 1,028,334 Formula 438,000 368,650 438,000 324,850 $ 8,243,800 $ 5,184,036 $ 8,218,800 $ 4,468,359 |
Amortization Expense On Future Intangible Assets | 2015 $ 715,677 2016 697,427 2017 671,877 2018 634,863 2019 209,578 Thereafter 130,342 $ 3,059,764 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 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: December 31, 2014 Cost Unrealized Gains Unrealized Losses Fair Value Equities $ 530,328 $ 19,608 $ (64,046) $ 485,890 Mutual Funds 445,337 0 (10,624) 434,713 Preferred Securities 180,120 195 (2,075) 178,240 Corporate Bonds 1,948,596 1,880 (270,179) 1,680,297 Total $ 3,104,381 $ 21,683 $ (346,924) $ 2,779,140 December 31, 2013 Cost Unrealized Gains Unrealized Losses Fair 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 December 31, 2012 Cost Unrealized Gains Unrealized Losses Fair Value Equities $ 639,974 $ 90,875 $ (5,190 ) $ 725,659 Corporate Bonds 1,135,064 16,212 (7,047 ) 1,144,229 Total $ 1,775,038 $ 107,087 $ (12,237 ) $ 1,869,888 |
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 December, 2014, 2013 and 2012: Less Than 12 Months 12 Months or Greater Total December 31, 2014 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Equities $ 162,268 $ (49,053 ) $ 141,417 $ (14,993 ) $ 303,685 $ (64,046 ) Mutual Funds 434,713 (10,624 ) 0 0 434,713 (10,624 ) Preferred Securities 80,640 (2,075 ) 0 0 80,640 (2,075 ) Corporate Bonds 1,056,140 (194,641 ) 497,277 (75,538 ) 1,553,417 (270,179 ) $ 1,733,761 $ (256,393 ) $ 638,694 $ (90,531 ) $ 2,372,455 $ (346,924 ) Less Than 12 Months 12 Months or Greater Total December 31, 2013 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Equities $ 213,222 $ (32,180 ) $ 0 $ 0 $ 213,222 $ (32,180 ) 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 $ (90,456 ) $ 96,726 $ (6,593 ) $ 1,150,059 $ (97,049 ) Less Than 12 Months 12 Months or Greater Total December 31, 2012 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Equities $ 63,620 $ (3,745 ) $ 21,910 $ (1,445 ) $ 85,530 $ (5,190 ) Corporate Bonds 301,229 (2,721 ) 193,930 (4,326 ) 495,159 (7,047 ) $ 364,849 $ (6,466 ) $ 215,840 $ (5,771 ) $ 580,689 $ (12,237 ) |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2014 | |
Inventories Tables | |
Schedule Of Inventories | December 31, 2014 2013 Finished goods $ 2,373,476 $ 3,027,900 Production supplies 2,069,742 2,690,097 Raw materials 1,371,001 1,181,011 Total inventories $ 5,814,219 $ 6,899,008 |
Property And Equipment (Tables)
Property And Equipment (Tables) | 12 Months Ended |
Dec. 31, 2014 | |
Property And Equipment Tables | |
Schedule Of Property And Equipment | December 31, 2014 2013 Land $ 1,856,370 $ 1,856,370 Buildings and improvements 15,125,803 14,587,022 Machinery and equipment 20,434,910 19,633,164 Vehicles 1,244,560 1,244,560 Office equipment 465,801 433,679 Construction in process 2,408,754 177,519 41,536,198 37,932,314 Less accumulated depreciation 19,643,803 17,107,866 Total property and equipment $ 21,892,395 $ 20,824,448 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2014 | |
Accrued Expenses Tables | |
Schedule Of Accrued Expenses | December 31, 2014 2013 Accrued payroll and payroll taxes $ 891,763 $ 477,312 Accrued property tax 331,278 306,608 Other 843,035 500,140 $ 2,066,076 $ 1,284,060 |
Notes Payable (Tables)
Notes Payable (Tables) | 12 Months Ended |
Dec. 31, 2014 | |
Notes Payable Tables | |
Schedule Of Notes Payable | December 31, 2014 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. $ 4,352,222 $ 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. 4,583,333 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. 12,198 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. 49,047 66,334 Total notes payable 8,996,800 9,874,014 Less current maturities 872,285 875,002 Total long-term portion $ 8,124,515 $ 8,999,012 |
Maturities Of Notes Payable | For the 12 months ending December 31, 2015 $ 872,285 2016 859,876 2017 849,084 2018 3,165,566 2019 3,249,989 Total $ 8,996,800 |
Commitments And Contingencies (
Commitments And Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2014 | |
Commitments And Contingencies Tables | |
Schedule Of Annual Minimum Base Rental Payments | For the year ending December 31, 2015 $ 70,539 2016 72,653 2017 74,832 2018 47,761 2019 49,194 Total $ 314,979 |
Provision For Income Taxes (Tab
Provision For Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2014 | |
Provision For Income Taxes Tables | |
Summary Of The Provision For Income Taxes | For the Years Ended December 31, 2014 2013 2012 Current: Federal $ 2,142,526 $ 2,551,505 $ 2,757,332 State and local 819,478 554,174 882,640 Total current 2,962,004 3,105,679 3,639,972 Deferred (719,778 ) (238,804 ) (434,896 ) Provision for income taxes $ 2,242,226 $ 2,866,875 $ 3,205,076 |
Reconciliation Of Provision For Income Taxes At Statutory Rate | 2014 2013 2012 Amount Percentage Amount Percentage Amount Percentage Federal income tax expense computed at the statutory rate $ 1,427,534 34.0 % $ 2,666,223 34.0 % $ 3,000,457 34.0 % State and local tax expense, net 214,970 5.1 % 744,974 9.5 % 838,363 9.5 % U.S. domestic manufacturers deduction & other permanent differences 463,646 11.0 % (455,442 ) (5.8 )% (427,525 ) (4.9 )% Additions for tax positions of prior years 215,102 5.1 % 0 0 % 0 0 % Change in tax rates (138,008 ) (3.2 )% 0 0 % 0 0 % Change in tax estimate 58,982 1.4 % (88,880 ) (1.1 )% (206,219 ) (2.2 )% Provision for income taxes $ 2,242,226 53.4 % $ 2,866,875 36.6 % $ 3,205,076 36.4 % |
Reconciliation of amount of unrecognized tax benefits | 2014 2013 2012 Balance at January 1 $ $ $ Additions for tax positions of prior years 215,102 Balance at December 31 $ 215,102 $ $ |
Schedule Of Deferred Tax Assets And Liabilities | December 31, 2014 2013 2012 Non-current deferred tax assets (liabilities) arising from: Temporary differences - Accumulated depreciation and amortization $ (2,075,095 ) $ (2,896,058 ) $ (3,164,716 ) Capital loss carry-forwards 0 52,632 136,198 Total non-current net deferred tax liabilities (2,075,095 ) (2,843,426 ) (3,028,518 ) Current deferred tax assets arising from: Capital loss carry-forward 8,620 0 0 Unrealized losses (gain) on investments 127,234 (7,589 ) (41,260 ) Inventory 233,366 307,910 265,072 Allowance for doubtful accounts and discounts 39,120 21,750 10,875 Total current deferred tax assets 408,340 322,071 234,687 Net deferred tax liability $ (1,666,755 ) $ (2,521,355 ) $ (2,793,831 ) |
Supplemental Cash Flow Inform33
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2014 | |
Supplemental Cash Flow Information Tables | |
Summary Of Cash Paid For Interest And Income Taxes | For the Years Ended December 31, 2014 2013 2012 Interest $ 266,581 $ 205,739 $ 191,277 Income taxes $ 3,079,602 $ 4,362,991 $ 3,413,687 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2014 | |
Fair Value Measurements Tables | |
Schedule Of Fair Value Assets And Liabilities As Classified | Assets and Liabilities at Fair Value as of December 31, 2014 Level 1 Level 2 Level 3 Total Certificate of Deposits 0 149,965 0 149,965 Mutual Funds 434,713 0 0 434,713 Stocks 485,890 0 0 485,890 Preferred Securities 0 178,240 0 178,240 Corporate Bonds 0 1,680,297 0 1,680,297 Notes Payable 0 8,996,800 0 8,996,800 Assets and Liabilities at Fair Value as of December 31, 2013 Level 1 Level 2 Level 3 Total Certificate of Deposits 0 15,373 0 15,373 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 |
Segments And Products (Tables)
Segments And Products (Tables) | 12 Months Ended |
Dec. 31, 2014 | |
Segments And Products Tables | |
Schedule of sales of products by category | 2014 2013 2012 Lifeway Farmer Cheese $ 10,266,319 $ 9,388,067 $ 9,777,033 Drinkable Kefir other than ProBugs 110,297,098 90,441,363 73,003,926 ProBugs 7,867,980 7,126,630 4,628,990 Frozen Kefir 1,784,319 2,010,034 2,344,058 Total sales $ 130,215,716 $ 108,966,094 $ 89,754,007 |
Summary Of Significant Accoun36
Summary Of Significant Accounting Policies (Details) | 12 Months Ended |
Dec. 31, 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 Accoun37
Summary Of Significant Accounting Policies (Details 1) | 12 Months Ended |
Dec. 31, 2014 | |
Recipes [Member] | |
Intangible assets, useful lives | 4 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 Accoun38
Summary Of Significant Accounting Policies (Details Narrative) - USD ($) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Summary Of Significant Accounting Policies Details Narrative | |||
Percentage of gross sales | 28.00% | 35.00% | 31.00% |
Percentage of accounts receivable | 23.00% | 25.00% | 30.00% |
Total advertising expenses | $ 3,875,384 | $ 2,685,691 | $ 2,679,798 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) | Dec. 31, 2014 | Dec. 30, 2014 | Dec. 31, 2013 |
Cost | $ 8,243,800 | $ 8,218,800 | |
Accumulated Amortization | 5,184,036 | 4,468,359 | |
Recipes [Member] | |||
Cost | 43,600 | 43,600 | |
Accumulated Amortization | 43,600 | 43,600 | |
Customer Lists And Other Customer Related Intangibles [Member] | |||
Cost | 4,529,200 | 4,504,200 | |
Accumulated Amortization | 2,926,719 | 2,474,790 | |
Customer Relationships [Member] | |||
Cost | $ 985,000 | 985,000 | |
Accumulated Amortization | $ 666,869 | 596,785 | |
Trade Names [Member] | |||
Cost | 2,248,000 | 2,248,000 | |
Accumulated Amortization | 1,178,198 | 1,028,334 | |
Formula [Member] | |||
Cost | 438,000 | 438,000 | |
Accumulated Amortization | $ 368,650 | $ 324,850 |
Intangible Assets (Details 1)
Intangible Assets (Details 1) | Dec. 31, 2014USD ($) |
Intangible Assets Details 1 | |
2,015 | $ 715,677 |
2,016 | 697,427 |
2,017 | 671,877 |
2,018 | 634,863 |
2,019 | 209,578 |
Thereafter | 130,342 |
Finite-Lived Intangible Assets, Net, Total | $ 3,059,764 |
Intangible Assets (Details Narr
Intangible Assets (Details Narrative) - USD ($) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Intangible Assets Details Narrative | |||
Amortization expense | $ 715,677 | $ 712,803 | $ 754,817 |
Investments (Details)
Investments (Details) - USD ($) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cost | $ 3,104,381 | $ 2,498,934 | $ 1,775,038 |
Unrealized Gains | 21,683 | 114,496 | 107,087 |
Unrealized Losses | (346,924) | (97,050) | (12,237) |
Fair Value | 2,779,140 | 2,516,380 | 1,869,888 |
Equity Securities [Member] | |||
Cost | 530,328 | 1,006,169 | 639,974 |
Unrealized Gains | 19,608 | 98,213 | 90,875 |
Unrealized Losses | (64,046) | (32,181) | (5,190) |
Fair Value | 485,890 | 1,072,201 | 725,659 |
Mutual Funds [Member] | |||
Cost | 445,337 | 54,847 | |
Unrealized Gains | 0 | 1,994 | |
Unrealized Losses | (10,624) | 0 | |
Fair Value | 434,713 | 56,841 | |
Preferred Securities [Member] | |||
Cost | 180,120 | 464,585 | |
Unrealized Gains | 195 | 12,960 | |
Unrealized Losses | (2,075) | (15,449) | |
Fair Value | 178,240 | 462,096 | |
Corporate Bond Securities [Member] | |||
Cost | 1,948,596 | 973,333 | 1,135,064 |
Unrealized Gains | 1,880 | 1,329 | 16,212 |
Unrealized Losses | (270,179) | (49,420) | (7,047) |
Fair Value | $ 1,680,297 | $ 925,242 | $ 1,144,229 |
Investments (Details 1)
Investments (Details 1) - USD ($) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Less Than 12 Months, Fair Value | $ 1,733,761 | $ 1,053,333 | $ 364,849 |
Less Than 12 Months, Unrealized Losses | (256,393) | (90,456) | (6,466) |
12 Months or Greater, Fair Value | 638,694 | 96,726 | 215,840 |
12 Months or Greater, Unrealized Losses | (90,531) | (6,593) | (5,771) |
Total, Fair Value | 2,372,455 | 1,150,059 | 580,689 |
Total, Unrealized Losses | (346,924) | (97,049) | (12,237) |
Equity Securities [Member] | |||
Less Than 12 Months, Fair Value | 162,268 | 213,222 | 63,620 |
Less Than 12 Months, Unrealized Losses | (49,053) | (32,180) | (3,745) |
12 Months or Greater, Fair Value | 141,417 | 0 | 21,910 |
12 Months or Greater, Unrealized Losses | (14,993) | 0 | (1,445) |
Total, Fair Value | 303,685 | 213,222 | 85,530 |
Total, Unrealized Losses | (64,046) | (32,180) | (5,190) |
Mutual Funds [Member] | |||
Less Than 12 Months, Fair Value | 434,713 | 0 | |
Less Than 12 Months, Unrealized Losses | (10,624) | 0 | |
12 Months or Greater, Fair Value | 0 | 0 | |
12 Months or Greater, Unrealized Losses | 0 | 0 | |
Total, Fair Value | 434,713 | 0 | |
Total, Unrealized Losses | (10,624) | 0 | |
Preferred Securities [Member] | |||
Less Than 12 Months, Fair Value | 80,640 | 224,125 | |
Less Than 12 Months, Unrealized Losses | (2,075) | (15,449) | |
12 Months or Greater, Fair Value | 0 | 0 | |
12 Months or Greater, Unrealized Losses | 0 | 0 | |
Total, Fair Value | 80,640 | 224,125 | |
Total, Unrealized Losses | (2,075) | (15,449) | |
Corporate Bond Securities [Member] | |||
Less Than 12 Months, Fair Value | 1,056,140 | 615,986 | 301,229 |
Less Than 12 Months, Unrealized Losses | (194,641) | (42,827) | (2,721) |
12 Months or Greater, Fair Value | 497,277 | 96,726 | 193,930 |
12 Months or Greater, Unrealized Losses | (75,538) | (6,593) | (4,326) |
Total, Fair Value | 1,553,417 | 712,712 | 495,159 |
Total, Unrealized Losses | $ (270,179) | $ (49,420) | $ (7,047) |
Investments (Details Narrative)
Investments (Details Narrative) - USD ($) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Investments Details Narrative | |||
Proceeds from sale of investments | $ 2,773,570 | $ 3,001,016 | $ 1,475,730 |
Gross realized gains | 177,420 | 248,223 | 88,713 |
Gross realized losses | $ 78,467 | $ 52,723 | $ 17,427 |
Inventories (Details)
Inventories (Details) - USD ($) | Dec. 31, 2014 | Dec. 31, 2013 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 2,373,476 | $ 3,027,900 |
Production supplies | 2,069,742 | 2,690,097 |
Raw materials | 1,371,001 | 1,181,011 |
Total inventories | $ 5,814,219 | $ 6,899,008 |
Property And Equipment (Details
Property And Equipment (Details) - USD ($) | Dec. 31, 2014 | Dec. 31, 2013 |
Property and equipment, gross | $ 41,536,198 | $ 37,932,314 |
Less accumulated depreciation | 19,643,803 | 17,107,866 |
Total property and equipment | 21,892,395 | 20,824,448 |
Land [Member] | ||
Property and equipment, gross | 1,856,370 | 1,856,370 |
Buildings And improvements [Member] | ||
Property and equipment, gross | 15,125,803 | 14,587,022 |
Machinery And Equipment [Member] | ||
Property and equipment, gross | 20,434,910 | 19,633,164 |
Vehicles [Member] | ||
Property and equipment, gross | 1,244,560 | 1,244,560 |
Office Equipment [Member] | ||
Property and equipment, gross | 465,801 | 433,679 |
Construction In Progress [Member] | ||
Property and equipment, gross | $ 2,408,754 | $ 177,519 |
Property And Equipment (Detai47
Property And Equipment (Details Narrative) - USD ($) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Depreciation expense | $ 2,535,937 | $ 1,626,575 | $ 1,629,594 |
Starfruit [Member] | |||
Depreciation expense | $ 470,000 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) | Dec. 31, 2014 | Dec. 31, 2013 |
Accrued Expenses Details | ||
Accrued payroll and payroll taxes | $ 891,763 | $ 477,312 |
Accrued property tax | 331,278 | 306,608 |
Other | 843,035 | 500,140 |
Total accrued expenses | $ 2,066,076 | $ 1,284,060 |
Notes Payable (Details)
Notes Payable (Details) - USD ($) | Dec. 31, 2014 | Dec. 31, 2013 |
Total notes payable | $ 8,996,800 | $ 9,874,014 |
Less current maturities | 872,285 | 875,002 |
Total long-term portion | 8,124,515 | 8,999,012 |
Notes Payable To Banks [Member] | ||
Total notes payable | 4,352,222 | 4,858,889 |
Note Payable To Private Bank [Member] | ||
Total notes payable | 4,583,333 | 4,916,667 |
Notes Payable To Ford Credit Corp [Member] | ||
Total notes payable | 12,198 | 32,124 |
Note Payable To Fletcher Jones Of Chicago Ltd Llc [Member] | ||
Total notes payable | $ 49,047 | $ 66,334 |
Notes Payable (Details 1)
Notes Payable (Details 1) - USD ($) | Dec. 31, 2014 | Dec. 31, 2013 |
Notes Payable Details 1 | ||
2,015 | $ 872,285 | |
2,016 | 859,876 | |
2,017 | 849,084 | |
2,018 | 3,165,566 | |
2,019 | 3,249,989 | |
Total notes payable | $ 8,996,800 | $ 9,874,014 |
Notes Payable (Details Narrativ
Notes Payable (Details Narrative) | Dec. 31, 2014USD ($) |
Notes Payable Details Narrative | |
Revolving credit facility | $ 5,000,000 |
Commitments And Contingencies52
Commitments And Contingencies (Details) | Dec. 31, 2014USD ($) |
Commitments And Contingencies Details | |
2,015 | $ 70,539 |
2,016 | 72,653 |
2,017 | 74,832 |
2,018 | 47,761 |
2,019 | 49,194 |
Total | $ 314,979 |
Commitments And Contingencies53
Commitments And Contingencies (Details Narrative) - USD ($) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Commitments And Contingencies Details Narrative | |||
Total expenses on leases | $ 143,384 | $ 347,164 | $ 379,348 |
Provision For Income Taxes (Det
Provision For Income Taxes (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Current: | |||
Federal | $ 2,142,526 | $ 2,551,505 | $ 2,757,332 |
State and local | 819,478 | 554,174 | 882,640 |
Total current | 2,962,004 | 3,105,679 | 3,639,972 |
Deferred | (719,778) | (238,804) | (434,896) |
Provision for income taxes | $ 2,242,226 | $ 2,866,875 | $ 3,205,076 |
Provision For Income Taxes (D55
Provision For Income Taxes (Details 1) - USD ($) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Disclosure [Abstract] | |||
Federal income tax expense computed at the statutory rate | $ 1,427,534 | $ 2,666,223 | $ 3,000,457 |
Federal income tax expense computed at the statutory rate, percentage | 34.00% | 34.00% | 34.00% |
State and local tax expense, net | $ 214,970 | $ 744,974 | $ 838,363 |
State and local tax expense, net, percentage | 5.10% | 9.50% | 9.50% |
U.S. domestic manufacturers' deduction & other permanent differences | $ 463,646 | $ (455,442) | $ (427,525) |
U.S. domestic manufacturers' deduction & other permanent differences, percentage | 11.00% | (5.80%) | (4.90%) |
Additions for tax positions of prior years | $ 215,102 | ||
Additions for tax positions of prior years, percentage | 5.10% | 0.00% | 0.00% |
Change in tax rates | $ (138,008) | $ 0 | $ 0 |
Change in tax rates, percentage | (3.20%) | 0.00% | 0.00% |
Change in tax estimate | $ 58,982 | $ (88,880) | $ (206,219) |
Change in tax estimate, percentage | 1.40% | 1.10% | 2.20% |
Provision for income taxes | $ 2,242,226 | $ 2,866,875 | $ 3,205,076 |
Provision for income taxes, percentage | 53.40% | 36.60% | 36.40% |
Provision For Income Taxes (D56
Provision For Income Taxes (Details 2) - USD ($) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Provision For Income Taxes Details 2 | |||
Balance at January 1 | |||
Additions for tax positions of prior years | $ 215,102 | ||
Balance at December 31 | $ 215,102 |
Provision For Income Taxes (D57
Provision For Income Taxes (Details 3) - USD ($) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Non-current deferred tax assets (liabilities) arising from: Temporary differences - | |||
Accumulated depreciation and amortization | $ (2,075,095) | $ (2,896,058) | $ (3,164,716) |
Capital loss carry-forwards | 0 | 52,632 | 136,198 |
Total non-current net deferred tax liabilities | (2,075,095) | (2,843,426) | 3,028,518 |
Current deferred tax assets arising from: | |||
Capital loss carry-forward | 8,620 | 0 | 0 |
Unrealized losses (gain) on investments | 127,234 | (7,589) | (41,260) |
Inventory | 233,366 | 307,910 | 265,072 |
Allowance for doubtful accounts and discounts | 39,120 | 21,750 | 10,875 |
Total current deferred tax assets | 408,340 | 322,071 | 234,687 |
Net deferred tax liability | $ (1,666,755) | $ (2,521,355) | $ (2,793,831) |
Provision For Income Taxes (D58
Provision For Income Taxes (Details Narrative) - USD ($) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Provision For Income Taxes Details Narrative | |||
Interest and penalties | $ 64,600 |
Supplemental Cash Flow Inform59
Supplemental Cash Flow Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Supplemental Cash Flow Information Details | |||
Interest | $ 266,581 | $ 205,739 | $ 191,277 |
Income taxes | $ 3,079,602 | $ 4,362,991 | $ 3,413,687 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) | Dec. 31, 2014 | Dec. 31, 2013 |
Certificate of Deposits | $ 149,965 | $ 15,373 |
Mutual Funds | 434,713 | 56,841 |
Stocks | 485,890 | 1,072,201 |
Preferred Securities | 178,240 | 462,096 |
Corporate Bonds | 1,680,297 | 925,242 |
Notes Payable | 8,996,800 | 9,874,014 |
Level1 [Member] | ||
Certificate of Deposits | 0 | 0 |
Mutual Funds | 434,713 | 56,841 |
Stocks | 485,890 | 1,072,201 |
Preferred Securities | 0 | 0 |
Corporate Bonds | 0 | 0 |
Notes Payable | 0 | 0 |
Level2 [Member] | ||
Certificate of Deposits | 149,965 | 15,373 |
Mutual Funds | 0 | 0 |
Stocks | 0 | 0 |
Preferred Securities | 178,240 | 462,096 |
Corporate Bonds | 1,680,297 | 925,242 |
Notes Payable | 8,996,800 | 9,874,014 |
Level3 [Member] | ||
Certificate of Deposits | 0 | 0 |
Mutual Funds | 0 | 0 |
Stocks | 0 | 0 |
Preferred Securities | 0 | 0 |
Corporate Bonds | 0 | 0 |
Notes Payable | $ 0 | $ 0 |
Segments And Products (Details)
Segments And Products (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Total sales | $ 130,215,716 | $ 108,966,094 | $ 89,754,007 |
Lifeway Farmer Cheese [Member] | |||
Total sales | 10,266,319 | 9,388,067 | 9,777,033 |
Drinkable Kefir Other Than ProBugs [Member] | |||
Total sales | 110,297,098 | 90,441,363 | 73,003,926 |
ProBugs[Member] | |||
Total sales | 7,867,980 | 7,126,630 | 4,628,990 |
Frozen Kefir [Member] | |||
Total sales | $ 1,784,319 | $ 2,010,034 | $ 2,344,058 |