Willamette Valley Vineyards (WVVI) 10-Q 13 May 14 2014 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
	Mar. 31, 2014	13-May-14
Document And Entity Information	'	'
Entity Registrant Name	'WILLAMETTE VALLEY VINEYARDS INC	'
Entity Central Index Key	'0000838875	'
Document Type	'10-Q	'
Document Period End Date	31-Mar-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	'	4,847,759
Document Fiscal Period Focus	'Q1	'
Document Fiscal Year Focus	'2014	'

BALANCE_SHEETS_unaudited

BALANCE SHEETS (unaudited) (USD $)	Mar. 31, 2014	Dec. 31, 2013
CURRENT ASSETS	'	'
Cash and cash equivalents	$190,757	$945,683
Accounts receivable, net	1,045,985	1,229,391
Inventories (Note 2)	9,921,788	9,833,312
Prepaid expenses and other current assets	141,781	177,769
Current portion of distribution agreement receivable	250,000	250,000
Income tax receivable	151,281	143,363
Total current assets	11,701,592	12,579,518
Restricted cash (Note 1)	450,000	450,000
Vineyard development costs, net	2,312,788	2,257,217
Property and equipment, net (Note 3)	14,389,374	13,659,090
Debt issuance costs, net	57,891	58,987
TOTAL ASSETS	28,911,645	29,004,812
CURRENT LIABILITIES	'	'
Accounts payable	601,163	711,333
Accrued expenses	388,469	456,842
Current portion of long-term debt	317,087	306,353
Line of credit	644,424	0
Deferred income taxes	444,000	444,000
Current portion of deferred revenue-distribution agreement	142,857	142,857
Unearned revenue	40,725	0
Grapes payable	0	689,028
Total current liabilities	2,578,725	2,750,413
Long-term debt, net of current portion	5,421,142	5,510,392
Deferred rent liability	177,792	182,490
Deferred revenue-distribution agreement, net of current portion	488,088	523,803
Deferred gain	177,433	185,456
Deferred income taxes	993,000	993,000
Total liabilities	9,836,180	10,145,554
COMMITMENTS AND CONTINGENCIES	'	'
SHAREHOLDERS' EQUITY	'	'
Common stock, no par value, 10,000,000 shares authorized, 4,953,177 and 4,945,977 shares issued at March 31, 2014 and December 31, 2013, respectively, 4,839,759 and 4,832,559 shares outstanding at March 31, 2014 and December 31, 2013, respectively.	8,898,377	8,857,085
Retained earnings	10,602,190	10,427,275
Less: Common stock held in treasury, at cost, 113,418 and 113,418 shares at March 31, 2014 and December 31, 2013, respectively	-425,102	-425,102
Total shareholder's equity	19,075,465	18,859,258
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$28,911,645	$29,004,812

BALANCE_SHEETS_Parenthetical

BALANCE SHEETS (Parenthetical) (USD $)	Mar. 31, 2014	Dec. 31, 2013
SHAREHOLDERS' EQUITY	'	'
Common stock, par value	$0	$0
Common stock, authorized shares	10,000,000	10,000,000
Common stock, issued shares	4,953,177	4,945,977
Common stock, outstanding shares	4,839,759	4,832,559
Common stock held in treasury	113,418	113,418

STATEMENTS_OF_OPERATIONS_unaud

STATEMENTS OF OPERATIONS (unaudited) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Income Statement [Abstract]	'	'
SALES, NET	$2,971,879	$3,041,559
COST OF SALES	1,249,890	1,284,897
GROSS PROFIT	1,721,989	1,756,662
SELLING GENERAL & ADMINISTRATIVE EXPENSES	1,473,254	1,267,958
INCOME FROM OPERATIONS	248,735	488,704
OTHER INCOME (EXPENSE)	'	'
Interest income	340	1,969
Interest expense	-65,996	-59,342
Other income, net	98,468	72,390
INCOME BEFORE INCOME TAXES	281,547	503,721
INCOME TAX PROVISION	-106,632	-207,128
NET INCOME	$174,915	$296,593
BASIC NET INCOME PER COMMON SHARE	$0.04	$0.06
DILUTED NET INCOME PER COMMON SHARE	$0.04	$0.06
Weighted average number of basic common shares outstanding	4,839,149	4,800,008
Weighted average number of diluted common shares outstanding	4,939,412	4,832,204

STATEMENTS_OF_CASH_FLOWS_unaud

STATEMENTS OF CASH FLOWS (unaudited) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
CASH FLOWS FROM OPERATING ACTIVITIES OF CONTINUING OPERATIONS	'	'
Net income	$174,915	$296,593
Adjustments to reconcile net income to net cash: from operating activities	'	'
Depreciation and amortization	235,478	189,113
(Gain)/loss on sale of assets	0	-4,850
Stock based compensation expense	5,292	4,101
Deferred rent liability	-4,698	-3,687
Deferred revenue-distribution agreement	-35,715	-35,715
Deferred gain	-8,023	-8,024
Change in operating assets and liabilities:	'	'
Accounts receivable	183,406	117,619
Inventories	-88,476	16,354
Prepaid expenses and other current assets	35,988	-65,081
Income taxes receivable	-7,918	8,734
Income taxes payable	0	110,994
Unearned revenue	40,725	0
Grapes payable	-689,028	-539,584
Accounts payable	-172,601	-140,254
Accrued expenses	-68,373	10,450
Net cash from operating activities	-399,028	-43,237
CASH FLOWS FROM INVESTING ACTIVITIES OF CONTINUING OPERATIONS	'	'
Additions to vineyard development	-74,488	-474,415
Additions to property and equipment	-883,318	-268,590
Proceeds from sale of asset	0	4,850
Payments received on note receivable	0	23,231
Net cash from investing activities	-957,806	-714,924
CASH FLOWS FROM FINANCING ACTIVITIES OF CONTINUING OPERATIONS	'	'
Proceeds from line of credit borrowing	644,424	0
Payments on long-term debt	-78,516	-52,066
Borrowings on long-term debt	0	15,000
Payment of debt issuance costs	0	-15,000
Proceeds from exercise of stock options	36,000	0
Repurchase of common stock	0	-10,700
Net cash from financing activities	601,908	-62,766
CASH FLOWS FROM DISCONTINUED OPERATIONS	'	'
Net cash from operating activities of discontinued operations	0	8,571
Net cash from discontinued operations	0	8,571
NET CHANGE IN CASH AND CASH EQUIVALENTS	-754,926	-812,356
CASH AND CASH EQUIVALENTS, beginning of period	945,683	4,553,113
CASH AND CASH EQUIVALENTS, end of quarter	190,757	3,740,757
NON-CASH INVESTING AND FINANCING ACTIVITIES	'	'
Purchases of property and equipment included in accounts payable	$62,431	$0

1_BASIS_OF_PRESENTATION

1. BASIS OF PRESENTATION	3 Months Ended
	Mar. 31, 2014
Accounting Policies [Abstract]	'
NOTE 1. BASIS OF PRESENTATION	'
	The accompanying unaudited interim financial statements as of and for the three months ended March 31, 2014 and 2013 have been prepared in conformity with accounting principles generally accepted in the United States (“GAAP”). The financial information as of December 31, 2013 is derived from the audited financial statements presented in the Willamette Valley Vineyards, Inc. (the “Company”) Annual Report on Form 10-K for the year ended December 31, 2013. Certain information or footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission. In the opinion of management, the accompanying financial statements include all adjustments necessary (which are of a normal recurring nature) for the fair statement of the results of the interim periods presented. The accompanying financial statements should be read in conjunction with the Company’s audited financial statements for the year ended December 31, 2013, as presented in the Company’s Annual Report on Form 10-K.
	Operating results for the three months ended March 31, 2014 are not necessarily indicative of the results that may be expected for the entire year ending December 31, 2014, or any portion thereof.
	The Company’s revenues include direct-to-consumer sales and national sales to distributors.  These sales channels utilize shared resources for production, selling and distribution.
	Basic earnings per share are computed based on the weighted-average number of common shares outstanding each period. Diluted earnings per share are computed using the weighted average number of shares of common stock and potentially dilutive common shares outstanding during the period.  Potentially dilutive shares from stock options and other potentially dilutive shares are excluded from the computation when their effect is anti-dilutive. At March 31, 2014 and 2013, potentially dilutive shares of 0 and 77,200, respectively, were excluded from the computation as their effect would be anti-dilutive.  100,263 and 32,196 potentially dilutive shares are included in the computation of dilutive earnings per share for the three month periods ended March 31, 2014 and 2013, respectively.
	Restricted cash – On September 23, 2013 Northwest Farm Credit Services advanced $1,973,949 of cash as net proceeds, calculated as a $2,000,000 loan less $26,051 of associated loan costs, of a loan agreement with the Company for the Hospitality Center remodel and expansion project.  These proceeds were held in an account with the lender and were accessible to the Company, upon certifying expenditures in excess of the Company’s commitment of $2.5 million to the project, with $450,000 being withheld, at March 31, 2014, until final project completion.  The Company has certified expenditures, up to the commitment requirement, and estimates that final expenditure certification will occur by May 31, 2014 and the Company will have access to the remaining funds.

2_INVENTORIES

2. INVENTORIES	3 Months Ended
	Mar. 31, 2014
Inventory Disclosure [Abstract]	'
NOTE 2. INVENTORIES	'
	The Company’s inventories, by major classification, are summarized as follows, as of the dates shown:
		31-Mar-14		31-Dec-13
	Winemaking and packaging materials	$	907,296	$	732,909
	Work-in-process (costs relating to
	unprocessed and/or unbottled wine products)		3,862,697		4,099,224
	Finished goods (bottled wine and related products)		5,151,795		5,001,179
	Current inventories	$	9,921,788	$	9,833,312

3_PROPERTY_AND_EQUIPMENT

3. PROPERTY AND EQUIPMENT	3 Months Ended
	Mar. 31, 2014
Property, Plant and Equipment [Abstract]	'
NOTE 3. PROPERTY AND EQUIPMENT	'
	The Company’s property and equipment consists of the following, as of the dates shown:
		31-Mar-14			31-Dec-13
	Construction in progress	$	3,429,278		$	5,056,096
	Land, improvements and other buildings		3,605,471			3,605,471
	Winery building and hospitality center		9,607,046			7,378,516
	Equipment		7,506,237			7,162,200
			24,148,032			23,202,283
	Accumulated depreciation		(9,758,658	)		(9,543,193	)
		$	14,389,374		$	13,659,090

4_DISTRIBUTION_AGREEMENT_RECEI

4. DISTRIBUTION AGREEMENT RECEIVABLE AND DEFERRED REVENUE	3 Months Ended
	Mar. 31, 2014
Deferred Revenue Disclosure [Abstract]	'
4. DISTRIBUTION AGREEMENT RECEIVABLE AND DEFERRED REVENUE	'
	Effective September 1, 2011, the Company entered into an agreement with Young’s Market Company for distribution of Company-produced wines in Oregon and Washington.  The terms of this contract include exclusive rights to distribute Willamette Valley Vineyard’s wines in Oregon and Washington for seven years.  In an effort to facilitate the transition with as little disruption as possible, Young’s Market Company has agreed to compensate Willamette Valley Vineyards for ongoing Oregon sales and branding efforts.  As a result, the Company is due to receive $250,000 per year starting on September 2011 for each of the next four years for a total of $1,000,000. The remaining amount to be collected was $250,000 as of March 31, 2014 and December 31, 2013.  The total amount of $1,000,000 to be received by the Company related to this agreement is being recognized as revenue on a straight line basis over the seven year life of the agreement. For the three months ended March 31, 2014 and 2013, the Company has recognized revenue related to this agreement in the amount of $35,715 and $35,715, respectively, recorded to other income.

5_DEBT

5. DEBT	3 Months Ended
	Mar. 31, 2014
Debt Disclosure [Abstract]	'
NOTE 5. LONG TERM DEBT	'
	Line of Credit Facility – In December of 2005 the Company entered into a revolving line of credit agreement with Umpqua Bank that allows borrowings of up to $2,000,000 against eligible accounts receivables and inventories as defined in the agreement. The revolving line bears interest at prime, is payable monthly, and is subject to annual renewal. The Company renewed the credit agreement in June of 2013 for a period of 12 months. The interest rate was 3.25% at March 31, 2014 and December 31, 2013. At March 31, 2014 and December 31, 2013 there was an outstanding balance of $644,424 and $0, respectively, on this revolving line of credit.
	The line of credit agreement includes various covenants, which among other things, requires the Company to maintain minimum amounts of tangible net worth, debt/worth ratio, and debt service coverage as defined. As of March 31, 2014, the Company was in compliance with these covenants.
	Long Term Debt - The Company has four long term debt agreements with Farm Credit Services with an aggregate outstanding balance of $5,735,863 and $5,812,958 as of March 31, 2014 and December 31, 2013, respectively. These loans require monthly payments of $53,058 principal and interest for the life of the loans, at an annual fixed interest rate ranging from 4.75% to 6.70%, with maturity dates ranging from 2024 through 2028. The general purposes of these loans are to make capital improvements to the winery and vineyard facilities.
	The Company has a long term debt agreement with Kubota with a balance of $2,366 and $3,787 as of March 31, 2014 and December 31, 2013, respectively. This loan requires a monthly payment of $473 principal only for the life of the loan, at an annual interest rate of 0.0%, maturing in 2014.

6_STOCK_BASED_COMPENSATION

6. STOCK BASED COMPENSATION	3 Months Ended
	Mar. 31, 2014
Equity [Abstract]	'
NOTE 6. STOCK BASED COMPENSATION	'
	The Company has a stock incentive plan, originally created in 1992, and most recently amended in 2001.  No additional grants may be made under the plan.  All stock options have an exercise price that is equal to the fair market value of the Company’s stock on the date the options were granted.  Administration of the plan, including determination of the number, term, and type of options to be granted, lies with the Board of Directors or a duly authorized committee of the Board of Directors.  Options were generally granted based on employee performance with vesting periods ranging from date of grant to seven years.  At the date of the grant, the maximum term before expiration is ten years.
	The following table presents information related to the value of outstanding stock options for the period shown:
		Three months ended
		31-Mar-14
		Weighted Average Exercise
		Shares			Price
	Outstanding at beginning of period		260,200		$	3.82
	Granted		-			-
	Exercised		(7,200	)		5
	Forfeited		-			-
	Outstanding at end of period		253,000		$	3.79
	At March 31, 2014, the Company had 61,000 unvested stock options with associated unrecognized compensation cost of $33,583 that will be recognized over a weighted-average period of 2.48 years.  The intrinsic value of the 192,000 stock options exercisable at March 31, 2014 was $482,640.
	In accordance with the current accounting guidance for share-based payments, the Company recognizes compensation expense for options awarded under its stock incentive plans. Current accounting guidance requires the grant-date fair value of all share-based payment awards, including employee stock options, to be recognized as employee compensation expense over the requisite service period. The fair value of each stock option granted is estimated on the date of grant using the Black-Scholes stock option valuation model.
	The Company expenses stock options on a straight-line basis over the options’ related vesting term.  Pretax compensation expense related to stock options for the three months ended March 31, 2014 and 2013 were $5,292 and $4,101, respectively.
	During the three months ended March 31, 2014, 7,200 stock options were exercised as part of this plan.  During the three months ended March 31, 2013, there were no transactions related to stock option exercise activity.

7_INTEREST_AND_TAXES_PAID

7. INTEREST AND TAXES PAID	3 Months Ended
	Mar. 31, 2014
Other Income and Expenses [Abstract]	'
NOTE 7. INTEREST AND TAXES PAID	'
	Income taxes – The Company paid $114,550 and $87,400 in income taxes for the three months ended March 31, 2014 and 2013, respectively.
	Interest - The Company paid $82,788 and $59,342 for the three months ended March 31, 2014 and 2013, respectively, in interest on the long-term debt and revolving credit line.

8_SEGMENT_REPORTING

8. SEGMENT REPORTING	3 Months Ended
	Mar. 31, 2014
Segment Reporting [Abstract]	'
NOTE 8. SEGMENT REPORTING	'
	The Company has identified two operating segments, Direct Sales and Distributor Sales, based upon their different distribution channels, margins and selling strategies.  Direct Sales includes retail sales in the tasting room and remote sites, Wine Club sales, on-site events, kitchen and catering sales and other sales made directly to the consumer without the use of an intermediary.  Distributor Sales include all sales through a third party where prices are given at a wholesale rate.
	The two segments reflect how the Company’s operations are evaluated by senior management and the structure of its internal financial reporting.  The Company evaluates performance based on the gross profit of the respective business segments.  Selling expenses that can be directly attributable to the segment, including depreciation of segment specific assets, are included, however, centralized selling expenses and general and administrative expenses are not allocated between operating segments.  Therefore, net income information for the respective segments is not available.  Discrete financial information related to segment assets, other than segment specific depreciation associated with selling, is not available and that information continues to be aggregated.
	The following table outlines the sales, cost of sales, gross margin, directly attributable selling expenses, and contribution margin of the segments for the three month periods ending March 31, 2014 and 2013.  Sales figures are net of related excise taxes.
		Three Months Ended March 31,
		Direct Sales						Distributor Sales						Total
		2014			2013			2014			2013			2014			2013
	Sales, net	$	943,651		$	813,258		$	2,028,228		$	2,228,301		$	2,971,879		$	3,041,559
	Cost of Sales		245,847			226,869			1,004,043			1,058,028			1,249,890			1,284,897
	Gross Margin		697,804			586,389			1,024,185			1,170,273			1,721,989			1,756,662
	Selling Expenses		516,293			365,518			299,139			305,745			815,432			671,263
	Contribution Margin	$	181,511		$	220,871		$	725,046		$	864,528		$	906,557		$	1,085,399
	Percent of Sales		31.8	%		26.7	%		68.2	%		73.3	%		100	%		100	%

2_INVENTORIES_Tables

2. INVENTORIES (Tables)	3 Months Ended
	Mar. 31, 2014
Inventories Tables	'
Inventories	'
		31-Mar-14		31-Dec-13
	Winemaking and packaging materials	$	907,296	$	732,909
	Work-in-process (costs relating to
	unprocessed and/or unbottled wine products)		3,862,697		4,099,224
	Finished goods (bottled wine and related products)		5,151,795		5,001,179
	Current inventories	$	9,921,788	$	9,833,312

3_PROPERTY_AND_EQUIPMENT_Table

3. PROPERTY AND EQUIPMENT (Tables)	3 Months Ended
	Mar. 31, 2014
Property And Equipment Tables	'
Property and Equipment	'
		31-Mar-14			31-Dec-13
	Construction in progress	$	3,429,278		$	5,056,096
	Land, improvements and other buildings		3,605,471			3,605,471
	Winery building and hospitality center		9,607,046			7,378,516
	Equipment		7,506,237			7,162,200
			24,148,032			23,202,283
	Accumulated depreciation		(9,758,658	)		(9,543,193	)
		$	14,389,374		$	13,659,090

6_STOCK_BASED_COMPENSATION_Tab

6. STOCK BASED COMPENSATION (Tables)	3 Months Ended
	Mar. 31, 2014
Stock Based Compensation Tables	'
Value of outstanding stock options	'
		Three months ended
		31-Mar-14
		Weighted Average Exercise
		Shares			Price
	Outstanding at beginning of period		260,200		$	3.82
	Granted		-			-
	Exercised		(7,200	)		5
	Forfeited		-			-
	Outstanding at end of period		253,000		$	3.79

8_SEGMENT_REPORTING_Tables

8. SEGMENT REPORTING (Tables)	3 Months Ended
	Mar. 31, 2014
Segment Reporting Tables	'
SEGMENT REPORTING	'
		Three Months Ended March 31,
		Direct Sales						Distributor Sales						Total
		2014			2013			2014			2013			2014			2013
	Sales, net	$	943,651		$	813,258		$	2,028,228		$	2,228,301		$	2,971,879		$	3,041,559
	Cost of Sales		245,847			226,869			1,004,043			1,058,028			1,249,890			1,284,897
	Gross Margin		697,804			586,389			1,024,185			1,170,273			1,721,989			1,756,662
	Selling Expenses		516,293			365,518			299,139			305,745			815,432			671,263
	Contribution Margin	$	181,511		$	220,871		$	725,046		$	864,528		$	906,557		$	1,085,399
	Percent of Sales		31.8	%		26.7	%		68.2	%		73.3	%		100	%		100	%

1_BASIS_OF_PRESENTATION_Detail

1. BASIS OF PRESENTATION (Details Narrative)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Basis Of Presentation Details Narrative	'	'
Antidilutive Securities Excluded from Computation of Earnings Per Share	0	77,200
Dilutive Securities included in computation of earnings per share	100,263	32,196

2_INVENTORIES_Details

2. INVENTORIES (Details) (USD $)	Mar. 31, 2014	Dec. 31, 2013
Inventory Disclosure [Abstract]	'	'
Winemaking and packaging materials	$907,296	$732,909
Work-in-progress (costs relating to unprocessed and/or unbottled wine products)	3,862,697	4,099,224
Finished goods (bottled wine and related products)	5,151,795	5,001,179
Current inventories	$9,921,788	$9,833,312

3_PROPERTY_AND_EQUIPMENT_Detai

3. PROPERTY AND EQUIPMENT (Details) (USD $)	Mar. 31, 2014	Dec. 31, 2013
Property, Plant and Equipment [Abstract]	'	'
Construction in progress	$3,429,278	$5,056,096
Land, improvements and other buildings	3,605,471	3,605,471
Winery building and hospitality center	9,607,046	7,378,516
Equipment	7,506,237	7,162,200
Total Property and Equipment	24,148,032	23,202,283
Accumulated depreciation	-9,758,658	-9,543,193
Net Property and Equipment	$14,389,374	$13,659,090

4_DISTRIBUTION_AGREEMENT_RECEI1

4. DISTRIBUTION AGREEMENT RECEIVABLE AND DEFERRED REVENUE (Details Narrative) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Dec. 31, 2013
Distribution Agreement Receivable And Deferred Revenue Details Narrative	'	'	'
Distribution agreement receivable, revenue recognized during period	$35,715	$35,715	'
Distribution agreement remaining amount to be collected	$250,000	'	$250,000

5_DEBT_Details_Narrative

5. DEBT (Details Narrative) (USD $)	Mar. 31, 2014	Dec. 31, 2013
FarmCreditServicesMember	'	'
Debt Instrument [Line Items]	'	'
Aggregate Outstanding Balance	$5,735,863	$5,812,958
Monthly Minimum Payments	53,058	'
Interest rate minimum	4.75%	'
Interest rate maximum	6.70%	'
KubotaMember	'	'
Debt Instrument [Line Items]	'	'
Aggregate Outstanding Balance	2,366	3,787
Monthly Minimum Payments	473	'
Interest rate minimum	0.00%	'
Interest rate maximum	0.00%	'
Line of Credit Facility	'	'
Debt Instrument [Line Items]	'	'
Aggregate Outstanding Balance	$644,424	$0
Interest rate minimum	3.25%	'
Interest rate maximum	3.25%	'

6_STOCK_BASED_COMPENSATION_Det

6. STOCK BASED COMPENSATION (Details) (USD $)	3 Months Ended
	Mar. 31, 2014
Stock Based Compensation Details	'
Outstanding at beginning of period	260,200
Granted	0
Exercised	-7,200
Forfeited	0
Outstanding at end of period	253,000
Weighted average Price	'
Outstanding at beginning of period	$3.82
Granted	'
Exercised	$5
Forfeited	'
Outstanding at end of period	$3.79

6_STOCK_BASED_COMPENSATION_Det1

6. STOCK BASED COMPENSATION (Details Narrative) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Stock Based Compensation Details Narrative	'	'
Unrecognized compensation cost	$33,583	'
Compensation expense related to stock options	$5,292	$4,101

7_INTEREST_AND_TAXES_PAID_Deta

7. INTEREST AND TAXES PAID (Details Narrative) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Interest And Taxes Paid Details Narrative	'	'
Income taxes	$114,550	$87,400
Interest Paid	$82,788	$59,342

8_SEGMENT_REPORTING_Details

8. SEGMENT REPORTING (Details) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Sales, net	$2,971,879	$3,041,559
Cost of Sales	1,249,890	1,284,897
Gross Margin	1,721,989	1,756,662
Selling Expenses	815,432	671,263
Contribution Margin	906,557	1,085,399
Percent of Sales	100.00%	100.00%
Direct Sales	'	'
Sales, net	943,651	813,258
Cost of Sales	245,847	226,869
Gross Margin	697,804	586,389
Selling Expenses	516,293	365,518
Contribution Margin	181,511	220,871
Percent of Sales	31.80%	26.70%
Distributor Sales	'	'
Sales, net	2,028,228	2,228,301
Cost of Sales	1,004,043	1,058,028
Gross Margin	1,024,185	1,170,273
Selling Expenses	299,139	305,745
Contribution Margin	$725,046	$864,528
Percent of Sales	68.20%	73.30%