Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | Apr. 29, 2015 | |
Document And Entity Information | ||
Entity Registrant Name | LAPOLLA INDUSTRIES INC | |
Entity Central Index Key | 875296 | |
Document Type | 10-Q | |
Document Period End Date | 31-Mar-15 | |
Amendment Flag | FALSE | |
Current Fiscal Year End Date | -19 | |
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 | 121,110,757 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2015 |
Condensed_Balance_Sheets
Condensed Balance Sheets (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Current Assets: | ||
Cash | ||
Trade Receivables, Net | 9,073,138 | 8,880,364 |
Costs and Estimated Earnings in Excess of Billings on Uncompleted Contracts | 18,411 | 18,411 |
Inventories | 5,796,782 | 5,268,025 |
Prepaid Expenses and Other Current Assets | 826,350 | 1,149,279 |
Total Current Assets | 15,714,681 | 15,316,079 |
Property, Plant and Equipment | 1,286,141 | 1,364,613 |
Other Assets: | ||
Goodwill | 4,234,828 | 4,234,828 |
Other Intangible Assets, Net | 1,183,217 | 1,183,452 |
Deposits and Other Non-Current Assets, Net | 382,148 | 399,083 |
Total Other Assets | 5,800,193 | 5,817,363 |
Total Assets | 22,801,015 | 22,498,055 |
Current Liabilities: | ||
Accounts Payable | 7,433,111 | 6,985,373 |
Accrued Expenses and Other Current Liabilities | 1,597,928 | 1,758,660 |
Total Current Liabilities | 9,031,039 | 8,744,033 |
Other Liabilities: | ||
Non-Current Portion of Revolver Loan | 5,549,948 | 5,435,005 |
Non-Current Portion of Note Payable- New Enhanced | 7,282,750 | 7,157,852 |
Non-Current Portion of Note Payable - Related Party | 500,000 | 250,000 |
Accrued Interest- Note Payable- Related Party | 8,701 | 3,173 |
Deferred Tax Liability | 91,150 | |
Total Other Liabilities | 13,432,549 | 12,846,030 |
Total Liabilities | 22,463,588 | 21,590,063 |
Stockholders' Equity: | ||
Common Stock, $.01 Par Value; 140,000 Shares Authorized; 121,110,757 and 119,839,566 Issued and Outstanding for March 31, 2015 and December 31, 2014, respectively. | 1,211,108 | 1,198,396 |
Additional Paid-In Capital | 90,805,030 | 89,989,110 |
Accumulated Deficit | -91,555,800 | -90,156,603 |
Accumulated Other Comprehensive Loss | -122,911 | -122,911 |
Total Stockholders' Equity | 337,427 | 907,992 |
Total Liabilities and Stockholders' Equity | $22,801,015 | $22,498,055 |
Condensed_Balance_Sheets_Paren
Condensed Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Stockholders' Equity: | ||
Common Stock, par value (in dollars per share) | $0.01 | $0.01 |
Common Stock, shares authorized (in shares) | 140,000,000 | 140,000,000 |
Common Stock, shares issued (in shares) | 121,110,757 | 119,839,566 |
Common Stock, shares outstanding (in shares) | 121,110,757 | 119,839,566 |
Condensed_Statements_of_Operat
Condensed Statements of Operations (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Income Statement [Abstract] | ||
Sales | $17,494,226 | $16,102,200 |
Cost of Sales | 13,907,390 | 13,032,873 |
Gross Profit | 3,586,836 | 3,069,327 |
Operating Expenses: | ||
Selling, General and Administrative | 3,668,677 | 3,303,507 |
Professional Fees | 387,327 | 19,951 |
Depreciation | 37,912 | 43,829 |
Amortization of Other Intangible Assets | 65,890 | 68,430 |
Consulting Fees | 162,313 | 136,933 |
Total Operating Expenses | 4,322,119 | 3,572,650 |
Operating Loss | -735,283 | -503,323 |
Other Expense: | ||
Interest Expense | 326,101 | 280,711 |
Interest Expense- Related Party | 186,726 | 198,991 |
Interest Expense- Amortization of Discount | 44,847 | 45,108 |
Other, Net | 15,090 | 18,381 |
Total Other Expense | 572,764 | 543,191 |
Loss Before Income Taxes | -1,308,047 | -1,046,514 |
Income Tax Expense | -91,150 | |
Net Loss | ($1,399,197) | ($1,046,514) |
Net Loss Per Share-Basic and Diluted | ($0.01) | ($0.01) |
Weighted Average Shares Outstanding | 120,426,487 | 114,399,050 |
Condensed_Statements_of_Cash_F
Condensed Statements of Cash Flows (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Cash Flows From Operating Activities | ||
Net Loss | ($1,399,197) | ($1,046,514) |
Adjustments to Reconcile Net Loss to Net Cash (Used in) Provided by Operating Activities: | ||
Depreciation | 91,565 | 108,391 |
Amortization of Other Intangible Assets | 65,890 | 68,430 |
Provision for Losses on Accounts Receivable | 79,361 | 110,420 |
Share Based Compensation Expense | 647,435 | 225,285 |
Interest Expense- Enhanced Notes PIK | 80,051 | 67,859 |
Interest Expense- Related Party | 186,726 | 198,991 |
Interest Expense -Amortization of Discount | 44,847 | 45,108 |
Gain on Disposal of Assets | -5,584 | |
Loss on Foreign Currency Exchange | 32,163 | 24,871 |
Deferred Income Tax Provision | 91,150 | |
Changes in Assets and Liabilities: | ||
Trade Receivables | -306,351 | -627,571 |
Inventories | -528,757 | 597,006 |
Prepaid Expenses and Other Current Assets | 322,929 | 305,249 |
Other Intangible Assets | -65,655 | -79,260 |
Deposits and Other Non-Current Assets | 16,935 | 24,008 |
Accounts Payable | 449,792 | 812,973 |
Accrued Expenses and Other Current Liabilities | -160,732 | -224,773 |
Net Cash (Used in) Provided by Operating Activities | -351,848 | 604,889 |
Cash Flows From Investing Activities | ||
Additions to Property, Plant and Equipment | -13,093 | -188,658 |
Proceeds from Disposal of Property, Plant and Equipment | 53,000 | |
Net Cash Used in Investing Activities | -13,093 | -135,658 |
Cash Flows From Financing Activities | ||
Proceeds from Revolver Loan | 18,437,068 | 16,164,029 |
Principal Repayments to Revolver Loan | -18,322,127 | -16,628,662 |
Proceeds from Note Payable- Related Party | 250,000 | |
Principal Repayments on Long-Term Debt | -4,598 | |
Net Cash Provided by Financing Activities | 364,941 | -469,231 |
Net Effect of Exchange Rate Changes on Cash | ||
Net Change In Cash | ||
Cash at Beginning of Period | ||
Cash at End of Period | ||
Supplemental Disclosure of Cash Flow Information: | ||
Cash Payments for Income Taxes | ||
Cash Payments for Interest | 294,825 | 251,084 |
Supplemental Schedule of Non Cash Investing and Financing Activities: | ||
Issuances of Common Stock for Personal Guarantees by Related Party Classified as Interest Expense | 181,198 | 181,198 |
Issuance of Common Stock in Exchange for Conversion of Note Payable- Related Party and Accrued Interest- Related Party | $301,996 |
Basis_of_Presentation_Critical
Basis of Presentation, Critical Accounting Policies, Estimates, and Assumptions.s | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation, Critical Accounting Policies, Estimates, and Assumptions. | Note 1. Basis of Presentation, Critical Accounting Policies, Estimates, and Assumptions. |
The condensed financial statements included herein are unaudited. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles (“GAAP”) in the United States have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). In the opinion of management, the accompanying statements reflect adjustments necessary to present fairly the financial position, results of operations and cash flows for those periods indicated, and contain adequate disclosure to make the information presented not misleading. Adjustments included herein are of a normal, recurring nature unless otherwise disclosed in the Notes to the condensed financial statements. | |
These unaudited condensed financial statements should be read in conjunction with the risk factors and the audited financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014, which was filed with the SEC on March 31, 2015, in order to fully understand the basis of presentation. Results of operations for interim periods are not necessarily indicative of the results of operations for a full year. The Company’s critical accounting policies were described in Note 1 to the audited financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. There have been no significant changes in the Company’s accounting policies during the first quarter of 2015. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect reported amounts of assets and liabilities, disclosure of contingent assets and liabilities and reported amounts of revenue and expenses. Actual results could differ from these estimates. | |
The Company's provision for income taxes is determined using the U.S. federal statutory rate. The Company recognizes deferred tax assets and liabilities for temporary differences between the financial reporting basis and the tax basis of our assets and liabilities along with net operating loss and tax credit carryovers. The Company's deferred tax asset was approximately $24.6 million and $23.5 million at March 31, 2015 and December 31, 2014, respectively. The Company recorded a valuation allowance against the deferred tax asset of $24.5 million and $23.5 million at March 31, 2015 and December 31, 2014, respectively, reducing its net carrying value to approximately $100,000. The Company had no increase or decrease in unrecognized income tax benefits or any accrued interest or penalties relating to tax uncertainties at March 31, 2015 and December 31, 2014. Unrecognized tax benefits are not expected to increase or decrease within the next twelve months. |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements. | Note 2. Recent Accounting Pronouncements. |
Recently Adopted Accounting Standards | |
In April 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-08, “Presentation of Financial Statements and Property, Plant, and Equipment - Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity,” which amends the definition of a discontinued operation by raising the threshold for a disposal to qualify as discontinued operations. The ASU will also require entities to provide additional disclosures about discontinued operations as well as disposal transactions that do not meet the discontinued operations criteria. This guidance will be effective for fiscal years beginning after December 15, 2014, which will be the Company's fiscal year 2015, with early adoption permitted. The Company adopted the provisions of the guidance in the first quarter of 2015. The adoption did not have a material impact on the Company’s financial statements. | |
In June 2014, the FASB issued ASU No. 2014-12, “Compensation — Stock Compensation: Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period." The standard requires that a performance target that affects vesting of share-based payments and that could be achieved after the requisite service period be treated as a performance condition that affects vesting and as such, should not be reflected in estimating the grant-date fair value of the award. The standard is effective for annual and interim periods beginning after December 15, 2015. The Company adopted the provisions of the guidance in the first quarter of 2015. The adoption did not have a material impact on the Company’s financial statements. | |
New Accounting Standards Not Yet Adopted | |
In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers." The ASU will supersede most of the existing revenue recognition requirements in U.S. GAAP and will require entities to recognize revenue at an amount that reflects the consideration to which the Company expects to be entitled in exchange for transferring goods or services to a customer. The new standard also requires significantly expanded disclosures regarding the qualitative and quantitative information of an entity's nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The pronouncement is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period and is to be applied retrospectively, with early application not permitted. The Company is currently evaluating the impact the pronouncement will have on the Company’s financial statements and related disclosures. | |
New Accounting Standards Not Yet Adopted – continued | |
In August 2014, the FASB issued ASU No. 2014-15, “Presentation of Financial Statements—Going Concern: Disclosures of Uncertainties about an Entity’s Ability to Continue as a Going Concern.” The amendments in this ASU are intended to define management’s responsibility to evaluate whether there is substantial doubt about an organization’s ability to continue as a going concern and to provide related footnote disclosures. This ASU provides guidance that is intended to reduce diversity in the timing and content of disclosures that are commonly provided by organizations in the financial statement footnotes. The pronouncement is effective for annual reporting periods ending after December 15, 2016 and interim periods within annual periods beginning after December 15, 2016. Early adoption is permitted for annual or interim reporting periods for which the financial statements have not previously been issued. The Company is currently evaluating the impact the pronouncement will have on the Company’s financial statements and related disclosures. | |
In January 2015, the FASB issued ASU No. 2015-01, “Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items.” This ASU eliminates from GAAP the concept of extraordinary items and the need for an entity to separately classify, present, and disclose extraordinary events and transactions, while retaining certain presentation and disclosure guidance for items that are unusual in nature or occur infrequently. The pronouncement is effective for annual reporting periods beginning after December 15, 2015, including interim periods within that reporting period and may be applied retrospectively, with early application permitted. The Company is currently evaluating the impact the pronouncement will have on the Company’s financial statements and related disclosures. | |
In April 2015, the FASB issued ASU No. 2015-03, “Simplifying the Presentation of Debt Issuance Costs.” The accounting guidance requires that debt issuance costs related to a recognized debt liability be reported on the Statements of Financial Condition as a direct deduction from the carrying amount of that debt liability. The pronouncement is effective for annual reporting periods beginning after December 15, 2015, including interim periods within that reporting period, with early application permitted for financial statements that have not been previously issued. The Company is currently evaluating the impact the pronouncement will have on the Company’s financial statements and related disclosures. |
Liquidity
Liquidity | 3 Months Ended |
Mar. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Liquidity | Note 3. Liquidity. |
The Company had an accumulated deficit of $91,555,800 on March 31, 2015, had a net loss of $1,399,197 during the three months ended March 31, 2015, and used $351,848 of cash in operating activities during the three months ended March 31, 2015. As a result, there are concerns about the liquidity of the Company at March 31, 2015. The Company has a working capital surplus of $6,683,642. Management believes any cash generated from operations and the cash available under the Revolver Loan (defined in Note 12(a)), subject to borrowing base limitations, based on budgeted sales and expenses as supported by credit, margin and expense controls, are sufficient to fund the Company’s operations, including capital expenditures, for the next 12 months. |
Dependence_on_a_few_suppliers
Dependence on a few suppliers | 3 Months Ended |
Mar. 31, 2015 | |
Risks and Uncertainties [Abstract] | |
Dependence on a few suppliers | Note 4. Dependence on Few Suppliers. |
The Company is dependent on a few suppliers for certain raw materials and finished goods. For the three month periods ended March 31, 2015 and 2014, raw materials and finished goods purchased from the three largest suppliers accounted for approximately 42% and 47% of purchases, respectively. |
Trade_Receivables
Trade Receivables | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Receivables [Abstract] | |||||||||
Trade Receivables | Note 5. Trade Receivables. | ||||||||
Trade receivables are comprised of the following at: | |||||||||
31-Mar-15 | 31-Dec-14 | ||||||||
Trade Receivables | $ | 9,522,601 | $ | 9,497,247 | |||||
Less: Allowance for Doubtful Accounts | (449,463 | ) | (616,883 | ) | |||||
Trade Receivables, Net | $ | 9,073,138 | $ | 8,880,364 | |||||
Inventories
Inventories | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Inventory Disclosure [Abstract] | |||||||||
Inventories | Note 6. Inventories. | ||||||||
The following is a summary of inventories at: | |||||||||
31-Mar-15 | 31-Dec-14 | ||||||||
Raw Materials | $ | 1,443,135 | $ | 1,461,040 | |||||
Finished Goods | 4,353,647 | 3,806,985 | |||||||
Total Inventories | $ | 5,796,782 | $ | 5,268,025 | |||||
Prepaid_Expenses_and_Other_Cur
Prepaid Expenses and Other Current Assets | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||
Prepaid Expenses and Other Current Assets | Note 7. Prepaid Expenses and Other Current Assets. | ||||||||
The following is a summary of prepaid expenses and other current assets at: | |||||||||
31-Mar-15 | 31-Dec-14 | ||||||||
Prepaid Insurances | $ | 559,708 | $ | 568,088 | |||||
Prepaid Marketing | 67,893 | 172,919 | |||||||
Prepaid Consulting | 21,077 | 60,266 | |||||||
Prepaid Other | 177,672 | 348,006 | |||||||
Total Prepaid Expenses and Other Current Assets | $ | 826,350 | $ | 1,149,279 | |||||
Property_Plant_and_Equipment
Property, Plant and Equipment | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Property, Plant and Equipment | Note 8. Property, Plant and Equipment. | ||||||||
The following is a summary of property, plant and equipment at: | |||||||||
31-Mar-15 | 31-Dec-14 | ||||||||
Vehicles | $ | 475,357 | $ | 475,357 | |||||
Leasehold Improvements | 288,777 | 288,777 | |||||||
Office Furniture and Equipment | 303,259 | 297,737 | |||||||
Computers and Software | 904,673 | 897,102 | |||||||
Machinery and Equipment | 2,503,062 | 2,503,062 | |||||||
Total Property, Plant and Equipment | $ | 4,475,128 | $ | 4,462,035 | |||||
Less: Accumulated Depreciation | (3,188,987 | ) | (3,097,422 | ) | |||||
Total Property, Plant and Equipment, Net | $ | 1,286,141 | $ | 1,364,613 | |||||
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||
Goodwill and Other Intangible Assets | Note 9. Goodwill and Other Intangible Assets. | ||||||||||||||||||||||||
Goodwill | |||||||||||||||||||||||||
The following is a summary of Goodwill at: | |||||||||||||||||||||||||
31-Mar-15 | 31-Dec-14 | ||||||||||||||||||||||||
Foam | $ | 2,932,208 | $ | 2,932,208 | |||||||||||||||||||||
Coatings | 1,302,620 | 1,302,620 | |||||||||||||||||||||||
Total Goodwill | $ | 4,234,828 | $ | 4,234,828 | |||||||||||||||||||||
Other Intangible Assets | |||||||||||||||||||||||||
31-Mar-15 | 31-Dec-14 | ||||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | ||||||||||||||||||||
Amount | Amortization | Amount | Amount | Amortization | Amount | ||||||||||||||||||||
Product Formulation | $ | 138,471 | $ | (93,083 | ) | $ | 45,388 | $ | 138,471 | $ | (90,775 | ) | $ | 47,696 | |||||||||||
Trade Names | 750,186 | (331,728 | ) | 418,458 | 750,186 | (319,224 | ) | 430,962 | |||||||||||||||||
Approvals and Certifications | 1,900,670 | (1,181,299 | ) | 719,371 | 1,835,013 | (1,130,219 | ) | 704,794 | |||||||||||||||||
$ | 2,789,327 | $ | (1,606,110 | ) | $ | 1,183,217 | $ | 2,723,670 | $ | (1,540,218 | ) | $ | 1,183,452 | ||||||||||||
Deposits_and_Other_NonCurrent_
Deposits and Other Non-Current Assets, Net. | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||
Deposits and Other Non-Current Assets, Net. | Note 10. Deposits and Other Non-Current Assets. | ||||||||
The following is a summary of deposits and other non-current assets at: | |||||||||
31-Mar-15 | 31-Dec-14 | ||||||||
Deferred Financing Fees | $ | 170,979 | $ | 195,201 | |||||
Prepaid Expenses | 6,529 | 7,104 | |||||||
Other Receivables | 51,055 | 43,193 | |||||||
Deposits | 153,585 | 153,585 | |||||||
Total Deposits and Other Non-Current Assets | $ | 382,148 | $ | 399,083 |
Accrued_Expenses_and_Other_Cur
Accrued Expenses and Other Current Liabilities | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Payables and Accruals [Abstract] | |||||||||
Accrued Expenses and Other Current Liabilities | Note 11. Accrued Expenses and Other Current Liabilities. | ||||||||
The following is a summary of accrued expenses and other current liabilities at: | |||||||||
31-Mar-15 | 31-Dec-14 | ||||||||
Accrued Payroll | $ | 21,572 | $ | 206,364 | |||||
Accrued Commissions | 110,445 | 113,193 | |||||||
Accrued Inventory Purchases | 123,398 | 108,016 | |||||||
Accrued Taxes and Other | 898,388 | 818,544 | |||||||
Accrued Insurance | 417,785 | 482,007 | |||||||
Deferred Finance Charge Income | 26,340 | 30,536 | |||||||
Total Accrued Expenses and Other Current Liabilities | $ | 1,597,928 | $ | 1,758,660 | |||||
Financing_Instruments
Financing Instruments | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||
Transfers and Servicing [Abstract] | |||||||||||||||||||||
Financing Instruments | Note 12. Financing Instruments. | ||||||||||||||||||||
(a) Loan and Security Agreement. The Company entered into a Loan and Security Agreement with Bank of America, N.A., effective September 1, 2010 (“Loan Agreement”), as amended from time to time, under which Bank of America agreed to a $13,000,000 revolver loan, which matures on March 31, 2016 ("Revolver Loan"). The Company granted Bank of America a continuing security interest in and lien upon all Company assets. The Base Rate is equal to the greater of (a) the Prime Rate; (b) the Federal Funds Rate, plus 0.50%; or (c) LIBOR for a 30 day interest period, plus 1.50%. The Company has four material debt covenants to comply with relating to its Loan Agreement: (i) capital expenditures are limited to $625,000 on an annual basis, (ii) the amount outstanding under the revolver Loan may not exceed the Borrowing Base (calculation defined as an amount determined by a detailed calculation and includes an amount equal to 85% of eligible accounts receivable, plus 55% of eligible inventory); (iii) maintain a fixed charge coverage ratio, tested monthly as of the last day of each calendar month for the twelve month period then ended, of at least 1.0 to 1.0, and (iv) maintain minimum liquidity of $500,000. The Company is required to submit its Borrowing Base calculation to Bank of America daily. If, at any time, the Company’s Borrowing Base calculation is less than the amount outstanding under the Revolver Loan, and that amount remains unpaid or future Borrowing Base calculations do not increase to an amount equal to the balance outstanding under the Revolver Loan, Bank of America, in its sole discretion, may accelerate any and all amounts outstanding under the Revolver Loan. At March 31, 2015 and December 31, 2014, the balance outstanding on the Revolver Loan was $5,549,948 and $5,435,005, and the weighted-average interest rate was 6.0% and 4.4%, respectively. At March 31, 2015, the Company was in compliance with all of its Loan Agreement debt covenants. | |||||||||||||||||||||
(b) Note Purchase Agreement. | |||||||||||||||||||||
(i) New Enhanced Note. The Company entered into a Note Purchase Agreement with Enhanced Jobs for Texas Fund, LLC (“Enhanced Jobs”) and Enhanced Credit Supported Loan Fund, LP (“Enhanced Credit”), on December 10, 2013, authorizing the issuance of an aggregate of $7.2 million in subordinated secured promissory notes maturing December 10, 2016 (“New Enhanced Note”), of which $5.7 million was to Enhanced Credit and $1.5 million was to Enhanced Jobs. Repayment of the $7.2 million is required on the maturity date of December 10, 2016. Interest is payable monthly and broken down into current pay interest at the rate of 7.25% per annum, and PIK interest at the rate of 4.25% (which is added to the principal balance of the outstanding notes) to create the aggregate interest rate of 15%. The Company has the right to prepay the New Enhanced Note, subject to a prepayment premium equal to 3% for the first year or 2% for the second year. The Company also entered into a security agreement with the New Enhanced Note providing for a second lien on all assets of the Company after Bank of America, which has a first lien on all assets of the Company. The Company has four material debt covenants to comply with relating to its New Enhanced Note: (i) capital expenditures are limited to $625,000 on an annual basis, (ii) a minimum [Adjusted] EBITDA, which cannot for the three (3) months ending on the last day of each month set forth in a schedule, be less than the corresponding amount set forth in the schedule for such period, (iii) maintain a fixed charge coverage ratio, tested monthly as of the last day of each calendar month, in each case for the most recently completed twelve calendar months, equal to a minimum ratio set forth in the schedule for such month, and (iv) maintain minimum liquidity of $500,000. A purchase discount of $542,886 is being amortized to interest expense using the effective interest method over the three year term of the New Enhanced Note (See also (ii) below). At March 31, 2015 and December 31, 2014, the balance outstanding on the New Enhanced Note was $7,282,750 and $7,157,852 and the effective interest rate was 23.2% and 23.6%, respectively. At March 31, 2015, the Company was in compliance with all of its New Enhanced Note debt covenants. | |||||||||||||||||||||
(ii) New Guaranty Agreement. In connection with the New Enhanced Note described in (i) above, the Chairman and majority stockholder of the Company (the “Guarantor”), entered into a Guaranty Agreement with Enhanced Credit, as agent for the New Enhanced Note, to secure the Company’s performance under the New Enhanced Note. The Company, in exchange for Guarantor’s personal guarantee of the obligations under the New Enhanced Note, granted Guarantor 3,681,000 shares of common stock, par value $.01 per share, which shares vest monthly on a pro rata basis over the three year term of the New Enhanced Note (“New Guaranty Shares”). The New Guaranty Shares were valued at $.60 per share, the closing price of the Company’s common stock as quoted on OTC Markets on the day preceding the closing date of December 10, 2013, for an aggregate amount of $2,208,600. The New Guaranty Shares are being recorded as interest expense – related party, thereby increasing the effective interest rate of the New Enhanced Note. At March 31, 2015 and December 31, 2014, there were 1,600,581 and 1,298,584 New Guaranty Shares vested, valued and recorded at $980,348 and $779,151, respectively. | |||||||||||||||||||||
(c) Notes Payable – Related Party. | |||||||||||||||||||||
(i) November 14, 2014 Promissory Note. The Company entered into a $250,000 promissory note with the Chairman of the Board, bearing interest at 8% per annum, and maturing June 10, 2017, which is subordinated to the Loan Agreement and the New Enhanced Note described in (a) and (b)(i) above. At March 31, 2015 and December 31, 2014, there was $1,634 and $4,773 outstanding in accrued and unpaid interest, respectively. | |||||||||||||||||||||
(ii) January 21, 2015 Promissory Note. The Company entered into a $250,000 promissory note with the Chairman of the Board, bearing interest at 8% per annum, and maturing June 10, 2017, which is subordinated to the Loan Agreement and the New Enhanced Note described in (a) and (b)(i) above. At March 31, 2015, there was $3,908 outstanding in accrued and unpaid interest. Refer to Note 13 – Related Party Transactions, Item (e), for more information. | |||||||||||||||||||||
(d) Future Minimum Principal Payments on Long-Term Debt | |||||||||||||||||||||
At March 31, 2015, future minimum principal payments of long-term debt are as follows: | |||||||||||||||||||||
Payments Due By Period | |||||||||||||||||||||
Less Than | 1 to 3 | 4 to 5 | More Than | ||||||||||||||||||
1 Year | Years | Years | 5 Years | Total | |||||||||||||||||
Revolver Loan | $ | — | $ | 5,549,948 | $ | — | $ | — | $ | 5,549,948 | |||||||||||
New Enhanced Note | — | 7,282,750 | — | — | 7,282,750 | ||||||||||||||||
Notes Payable – Related Party | — | 500,000 | — | — | 500,000 | ||||||||||||||||
Total | $ | — | $ | 13,332,698 | $ | — | $ | — | $ | 13,332,698 | |||||||||||
Related_Party_Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 13. Related Party Transactions. |
(a) On January 1, 2015, Jomarc C. Marukot and the Company entered into an Executive Employment Agreement, dated as of January 1, 2015 (the “Marukot Agreement”), pursuant to which Mr. Marukot shall serve as the Company’s CFO and Corporate Treasurer for a term commencing on January 1, 2015 and ending December 31, 2016 (the “Employment Term”). Pursuant to the Marukot Agreement, Mr. Marukot is entitled to: (i) an annual base salary of $190,000; (ii) annual bonus equal to 25% of his annual base salary if the Company achieves its budgeted earnings before interest, taxes, depreciation, amortization, and share based compensation (“Adjusted EBITDA”) per calendar year, which annual bonus may be increased to 30%, 35%, or more than 35% in the CEO’s discretion, of his annual base salary if the Company achieves 110%, 120%, or more than 120%, respectively, of its budgeted Adjusted EBITDA; (iii) change in control bonus of 25% of his annual base salary upon consummation of a change in control if he is still employed at the time; (iv) medical, dental, life insurance, and disability benefits; (v) four months’ portion of his annual base salary for termination due to death or disability; (vi) four months’ portion of his annual base salary, awards and benefit plans and, if he would have received it had he remained employed for four months after his actual termination date, the change in control bonus in the event of termination without cause by the Company; and (vii) twelve months annual base salary if terminated within the first twelve months of the Employment Term or the remaining annual base salary if terminated after twelve months of his employment due to a change in control. Mr. Marukot is also entitled to earn awards under equity or other plans or programs that the Company, in its discretion, determines to put into effect and to participate in compensation and benefit programs offered by the Company to its executive officers. The Marukot Agreement also provides for a non-competition provision for the Employment Term and for a period of twelve months after the termination of Mr. Marukot’s employment. | |
(b) On January 16, 2015, the Company granted Douglas J. Kramer, CEO and President, the right to acquire 850,000 shares of the Company’s common stock, $0.01 par value per share, at an exercise price per share equal to the fair market value of a share of the Company’s common stock on the date of grant, determined based on the per share closing price on such date, or $0.325 per share, which options were immediately vested and exercisable at the time of grant (“Kramer Option”). The Kramer Option was granted as final replacement for 2,000,000 stock options granted on July 12, 2005 which expired July 12, 2013 (the “Prior Expired Options”). The Prior Expired Options were inadvertently extended to December 31, 2015, however, due to an eight year life limitation under the Company’s Equity Incentive Plan, as amended (the “Equity Plan”), they were deemed canceled at the end of eight years. Moreover, the Equity Plan only permits the grant of a total of 2,000,000 stock options during any calendar year. Mr. Kramer had exceeded this limit during the 2014 year and as a result, the Company was only able to grant Mr. Kramer 1,150,000 stock options during the 2014 year as partial replacement for the 2,000,000 Prior Expired Options. The transaction was valued at $86,147, which was estimated using the Black-Scholes option pricing model and expensed on the date of grant. | |
(c) On January 16, 2015, the Company granted an eight-year stock option to Michael T. Adams, CGO, EVP, and Corporate Secretary, for 300,000 shares of the Company’s common stock, $0.01 par value per share, at an exercise price per share equal to the fair market value of a share of the Company’s common stock on the date of grant, determined based on the closing price on such date, or $0.325 per share (“Adams Option”). The Adams Option vests in three equal end of calendar year increments, subject to Mr. Adams meeting certain performance criteria, commencing on December 31, 2015 and ending December 31, 2017, or upon consummation of a change in control. Once vested, the stock options are immediately exercisable. The transaction was valued at $93,536, which was estimated using the Black-Scholes option pricing model and will be expensed over the requisite vesting period. | |
(d) On January 23, 2015, the Company and Bank of America, N.A. entered into a Twelfth Amendment (the “Twelfth Amendment”) to the Loan Agreement. Pursuant to the Twelfth Amendment, certain definitions were changed and a new definition was added in the Loan Agreement as follows: (1) Fixed Charge Coverage Ratio was changed to the ratio, determined for any period on a consolidated basis for the Company, of (a) the sum of (i) EBITDA, (ii) Subordinated Debt incurred during such period on or after August 31, 2014 (other than the Twelfth Amendment Subordinated Debt), and (iii) up to $267,000 in Accounts charged off by the Company in August, 2014, to (b) the sum of Capital Expenditures (except those financed with Borrowed Money other than Revolver Loans), cash taxes paid, interest expense (other than payment-in-kind), principal payments made on Borrowed Money other than Revolver Loans, excluding (solely) principal payments made on the Subordinated Term Debt due December 10, 2013, in an amount not exceeding $150,000, and Distributions made, in each case determined for such period; (2) Revolver Termination Date was changed (extended) to March 31, 2016; and (3) Subordinated Debt was added defining Subordinated Debt loaned to the Company by Richard Kurtz in an amount at least equal to $250,000, required as a condition to the effectiveness of the Twelfth Amendment. Refer to Item (e) below for more information on the Subordinated Debt. | |
(e) On January 21, 2015, the Company borrowed $250,000 from the Chairman of the Board and majority stockholder as a condition precedent to entering into the Twelfth Amendment and entered into a promissory note (the “1/21/15 Kurtz Note”). Pursuant the 1/21/15 Kurtz Note, the Company agreed to pay 8% per annum on the principal balance of $250,000 and repay the principle balance on June 10, 2017. The 1/21/15 Kurtz Note is subordinated to the Loan Agreement and New Enhanced Note. See also Item (d) above. | |
(f) On March 23, 2015, the Company granted an eight-year stock option to Harvey L. Schnitzer, COO, for 300,000 shares of the Company’s common stock, $0.01 par value per share, at an exercise price per share equal to the fair market value of a share of the Company’s common stock on the date of grant, determined based on the closing price on such date, or $0.41 per share (“Schnitzer Option”). The Schnitzer Option vests in three equal end of calendar year increments, subject to Mr. Schnitzer meeting certain performance criteria, commencing on December 31, 2015 and ending December 31, 2017, or upon consummation of a change in control. Once vested, the stock options are immediately exercisable. The transaction was valued at $118,122, which was estimated using the Black-Scholes option pricing model and will be expensed over the requisite vesting period. | |
(g) During the quarter ended March 31, 2015, the Company issued an aggregate of 969,195 shares of restricted common stock pursuant to the anti-dilution provisions in an agreement with the Vice Chairman, Jay C. Nadel, for advisory and consulting services, which transactions were valued and recorded in the aggregate at $397,509. | |
(h) During the quarter ended March 31, 2015, the Company vested an aggregate of 301,996 shares of restricted common stock as New Guaranty Shares, issued to the Chairman of the Board and majority stockholder in connection with his personal guarantees relating to the New Enhanced Note, which transactions were valued and recorded in the aggregate at $181,198, and classified as interest expense – related party. |
Net_Income_Loss_per_Common_Sha
Net Income (Loss) per Common Share - Basic and Diluted | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Net Income (Loss) per Common Share - Basic and Diluted | Note 14. Net Income (Loss) Per Common Share – Basic and Diluted. | ||||||||
Basic income (loss) per share is based upon the net income (loss) applicable to common shares and upon the weighted average number of common shares outstanding during the period. Diluted income (loss) per share reflects the effect of the assumed exercise of stock options and warrants only in periods in which such effect would have been dilutive. | |||||||||
The computation of the Company’s basic and diluted earnings per share at: | |||||||||
31-Mar-15 | 31-Mar-14 | ||||||||
Net loss available to common shareholders (A) | $ | (1,399,197 | ) | $ | (1,046,514 | ) | |||
Weighted average common shares outstanding (B) | 120,426,487 | 114,399,050 | |||||||
Dilutive effect of equity incentive plans | 1,150,000 | 2,460,000 | |||||||
Weighted average common shares outstanding, assuming dilution (C) | 120,446,210 | 115,796,196 | |||||||
Basic earnings per common share (A)/(B) | $ | (0.01 | ) | $ | (0.01 | ) | |||
Diluted earnings per common share (A)/(C) | $ | (0.01 | ) | $ | (0.01 | ) | |||
For March 31, 2015, a total of 3,005,000 shares of common stock underlying vested and exercisable stock options were excluded from the calculation of diluted earnings per common share as the exercise prices of the stock options were greater than the market value of the common shares (out-of-the-money). For March 31, 2014, a total of 2,080,000 shares of common stock underlying vested and exercisable stock options were excluded from the calculation of diluted earnings per common share as the exercise prices of the stock options were out-of-the-money. Out-of-the money options could be included in the calculation in the future if the market value of the Company’s common shares increases and is greater than their exercise price. |
Securities_Transactions
Securities Transactions | 3 Months Ended |
Mar. 31, 2015 | |
Notes to Financial Statements | |
Securities Transactions | Note 15. Securities Transactions. |
(a) During the quarter ended March 31, 2015, the Company issued an aggregate of 969,195 shares of common stock pursuant to the anti-dilution provisions in an advisory and consulting agreement, valued and recorded in the aggregate at $397,509. | |
(b) During the quarter ended March 31, 2015, the Company vested an aggregate of 301,996 shares of common stock issued for a personal guarantee relating to a financing, valued and recorded in the aggregate at $181,198, and classified as interest expense. |
Business_Segment_Information
Business Segment Information | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||
Business Segment Information | Note 16. Business Segment and Geographic Area Information. | ||||||||||||||||||||
Business Segments | |||||||||||||||||||||
The Company is a leading national manufacturer and supplier operating two segments, Foam and Coatings, based on manufacturing competencies. The accounting policies of the segments are the same as those described in the summary of significant accounting policies. The Company allocates resources to segments and evaluates the performance of segments based upon reported segment sales. Administrative expenses are allocated to both segments. Unallocated costs reflect certain corporate expenses, insurance, investor relations, and gains and losses related to the disposal of corporate assets and derivative liabilities and are included in Unallocated Amounts. There are no intersegment sales or transfers. | |||||||||||||||||||||
Segments | |||||||||||||||||||||
31-Mar-15 | Foam | Coatings | Totals | ||||||||||||||||||
Sales | $ | 15,405,967 | $ | 2,088,259 | $ | 17,494,226 | |||||||||||||||
Depreciation | 30,048 | 4,073 | 34,121 | ||||||||||||||||||
Amortization of Other Intangible Assets | 52,223 | 7,079 | 59,302 | ||||||||||||||||||
Interest Expense | 245,552 | 33,284 | 278,836 | ||||||||||||||||||
Segment Profit | $ | 512,895 | $ | 186,390 | $ | 699,285 | |||||||||||||||
Segment Assets (1) | 19,030,071 | 3,481,639 | 22,511,710 | ||||||||||||||||||
Expenditures for Segment Assets | $ | 11,530 | $ | 1,563 | $ | 13,093 | |||||||||||||||
31-Mar-14 | Foam | Coatings | Totals | ||||||||||||||||||
Sales | $ | 14,020,272 | $ | 2,081,928 | $ | 16,102,200 | |||||||||||||||
Depreciation | 34,346 | 5,100 | 39,446 | ||||||||||||||||||
Amortization of Other Intangible Assets | 53,624 | 7,963 | 61,587 | ||||||||||||||||||
Interest Expense | 228,477 | 33,928 | 262,405 | ||||||||||||||||||
Segment Profit | $ | 518 | $ | 169,838 | $ | 170,356 | |||||||||||||||
Segment Assets (1) | 17,843,756 | 3,506,688 | 21,350,444 | ||||||||||||||||||
Expenditures for Segment Assets | $ | 164,266 | $ | 24,392 | $ | 188,658 | |||||||||||||||
The following are reconciliations of reportable segment profit or loss, and assets, to the Company’s totals at: | |||||||||||||||||||||
Segments Profit | |||||||||||||||||||||
31-Mar-15 | 31-Mar-14 | ||||||||||||||||||||
Total Profit for Reportable Segments | $ | 699,285 | $ | 170,356 | |||||||||||||||||
Unallocated Amounts: | |||||||||||||||||||||
Corporate Expenses | (2,007,332 | ) | (1,216,870 | ) | |||||||||||||||||
Loss Before Income Taxes | $ | (1,308,047 | ) | $ | (1,046,514 | ) | |||||||||||||||
Assets | 31-Mar-15 | 31-Mar-14 | |||||||||||||||||||
Total Assets for Reportable Segments (1) | $ | 22,511,710 | $ | 21,350,444 | |||||||||||||||||
Other Unallocated Amounts (2) | 289,305 | 317,943 | |||||||||||||||||||
Total | $ | 22,801,015 | $ | 21,668,387 | |||||||||||||||||
(1) Segment assets are the total assets used in the operation of each segment. | |||||||||||||||||||||
(2) Includes corporate assets which are principally cash and prepaid expenses. | |||||||||||||||||||||
Geographic Area Information | |||||||||||||||||||||
The Company does not operate any manufacturing sites nor maintain a permanent establishment in any particular country outside of the United States at this time. The Company’s products are sold to independent distributors globally for select target markets. Sales are attributed to geographic areas based on customer location. Long-lived assets are attributable to geographic areas based on asset location. | |||||||||||||||||||||
Geographic Area | |||||||||||||||||||||
United States | Europe | Middle East | Rest of World | Total | |||||||||||||||||
31-Mar-15 | |||||||||||||||||||||
Sales | $ | 17,006,700 | $ | 202,179 | $ | — | $ | 285,347 | $ | 17,494,226 | |||||||||||
Long-Lived Assets | 22,511,710 | — | — | — | 22,511,710 | ||||||||||||||||
31-Mar-14 | |||||||||||||||||||||
Sales | $ | 14,562,577 | $ | 409,496 | $ | 660,000 | $ | 470,127 | $ | 16,102,200 | |||||||||||
Long-Lived Assets | 21,350,444 | — | — | — | 21,350,444 | ||||||||||||||||
Subsequent_Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 17. Subsequent Events. |
The Company has evaluated subsequent events through the date of filing this report. | |
Basis_of_Presentation_Critical1
Basis of Presentation, Critical Accounting Policies, Estimates, and Assumptions (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
Basis Of Presentation Critical Accounting Policies Estimates And Assumptions Policies | |
Basis of Presentation, Critical Accounting Policies, Estimates, and Assumptions | The condensed financial statements included herein are unaudited. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles (“GAAP”) in the United States have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). In the opinion of management, the accompanying statements reflect adjustments necessary to present fairly the financial position, results of operations and cash flows for those periods indicated, and contain adequate disclosure to make the information presented not misleading. Adjustments included herein are of a normal, recurring nature unless otherwise disclosed in the Notes to the condensed financial statements. |
These unaudited condensed financial statements should be read in conjunction with the risk factors and the audited financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014, which was filed with the SEC on March 31, 2015, in order to fully understand the basis of presentation. Results of operations for interim periods are not necessarily indicative of the results of operations for a full year. The Company’s critical accounting policies were described in Note 1 to the audited financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. There have been no significant changes in the Company’s accounting policies during the first quarter of 2015. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect reported amounts of assets and liabilities, disclosure of contingent assets and liabilities and reported amounts of revenue and expenses. Actual results could differ from these estimates. | |
The Company's provision for income taxes is determined using the U.S. federal statutory rate. The Company recognizes deferred tax assets and liabilities for temporary differences between the financial reporting basis and the tax basis of our assets and liabilities along with net operating loss and tax credit carryovers. The Company's deferred tax asset was approximately $24.6 million and $23.5 million at March 31, 2015 and December 31, 2014, respectively. The Company recorded a valuation allowance against the deferred tax asset of $24.5 million and $23.5 million at March 31, 2015 and December 31, 2014, respectively, reducing its net carrying value to approximately $100,000. The Company had no increase or decrease in unrecognized income tax benefits or any accrued interest or penalties relating to tax uncertainties at March 31, 2015 and December 31, 2014. Unrecognized tax benefits are not expected to increase or decrease within the next twelve months. |
Recent_Accounting_Pronouncemen1
Recent Accounting Pronouncements (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements. | Recently Adopted Accounting Standards |
In April 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-08, “Presentation of Financial Statements and Property, Plant, and Equipment - Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity,” which amends the definition of a discontinued operation by raising the threshold for a disposal to qualify as discontinued operations. The ASU will also require entities to provide additional disclosures about discontinued operations as well as disposal transactions that do not meet the discontinued operations criteria. This guidance will be effective for fiscal years beginning after December 15, 2014, which will be the Company's fiscal year 2015, with early adoption permitted. The Company adopted the provisions of the guidance in the first quarter of 2015. The adoption did not have a material impact on the Company’s financial statements. | |
In June 2014, the FASB issued ASU No. 2014-12, “Compensation — Stock Compensation: Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period." The standard requires that a performance target that affects vesting of share-based payments and that could be achieved after the requisite service period be treated as a performance condition that affects vesting and as such, should not be reflected in estimating the grant-date fair value of the award. The standard is effective for annual and interim periods beginning after December 15, 2015. The Company adopted the provisions of the guidance in the first quarter of 2015. The adoption did not have a material impact on the Company’s financial statements. | |
New Accounting Standards Not Yet Adopted | New Accounting Standards Not Yet Adopted |
In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers." The ASU will supersede most of the existing revenue recognition requirements in U.S. GAAP and will require entities to recognize revenue at an amount that reflects the consideration to which the Company expects to be entitled in exchange for transferring goods or services to a customer. The new standard also requires significantly expanded disclosures regarding the qualitative and quantitative information of an entity's nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The pronouncement is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period and is to be applied retrospectively, with early application not permitted. The Company is currently evaluating the impact the pronouncement will have on the Company’s financial statements and related disclosures. |
Trade_Receivables_Tables
Trade Receivables (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Receivables [Abstract] | |||||||||
Trade Receivables | 31-Mar-15 | 31-Dec-14 | |||||||
Trade Receivables | $ | 9,522,601 | $ | 9,497,247 | |||||
Less: Allowance for Doubtful Accounts | (449,463 | ) | (616,883 | ) | |||||
Trade Receivables, Net | $ | 9,073,138 | $ | 8,880,364 |
Inventories_Tables
Inventories (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Inventory Disclosure [Abstract] | |||||||||
Inventories | 31-Mar-15 | 31-Dec-14 | |||||||
Raw Materials | $ | 1,443,135 | $ | 1,461,040 | |||||
Finished Goods | 4,353,647 | 3,806,985 | |||||||
Total Inventories | $ | 5,796,782 | $ | 5,268,025 |
Prepaid_Expenses_and_Other_Cur1
Prepaid Expenses and Other Current Assets. (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||
Prepaid Expenses and Other Current Assets | 31-Mar-15 | 31-Dec-14 | |||||||
Prepaid Insurances | $ | 559,708 | $ | 568,088 | |||||
Prepaid Marketing | 67,893 | 172,919 | |||||||
Prepaid Consulting | 21,077 | 60,266 | |||||||
Prepaid Other | 177,672 | 348,006 | |||||||
Total Prepaid Expenses and Other Current Assets | $ | 826,350 | $ | 1,149,279 |
Property_Plant_and_Equipment_T
Property, Plant and Equipment (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Property, Plant and Equipment | 31-Mar-15 | 31-Dec-14 | |||||||
Vehicles | $ | 475,357 | $ | 475,357 | |||||
Leasehold Improvements | 288,777 | 288,777 | |||||||
Office Furniture and Equipment | 303,259 | 297,737 | |||||||
Computers and Software | 904,673 | 897,102 | |||||||
Machinery and Equipment | 2,503,062 | 2,503,062 | |||||||
Total Property, Plant and Equipment | $ | 4,475,128 | $ | 4,462,035 | |||||
Less: Accumulated Depreciation | (3,188,987 | ) | (3,097,422 | ) | |||||
Total Property, Plant and Equipment, Net | $ | 1,286,141 | $ | 1,364,613 |
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||
Goodwill | 31-Mar-15 | 31-Dec-14 | |||||||||||||||||||||||
Foam | $ | 2,932,208 | $ | 2,932,208 | |||||||||||||||||||||
Coatings | 1,302,620 | 1,302,620 | |||||||||||||||||||||||
Total Goodwill | $ | 4,234,828 | $ | 4,234,828 | |||||||||||||||||||||
Other Intangible Assets | 31-Mar-15 | 31-Dec-14 | |||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | ||||||||||||||||||||
Amount | Amortization | Amount | Amount | Amortization | Amount | ||||||||||||||||||||
Product Formulation | $ | 138,471 | $ | (93,083 | ) | $ | 45,388 | $ | 138,471 | $ | (90,775 | ) | $ | 47,696 | |||||||||||
Trade Names | 750,186 | (331,728 | ) | 418,458 | 750,186 | (319,224 | ) | 430,962 | |||||||||||||||||
Approvals and Certifications | 1,900,670 | (1,181,299 | ) | 719,371 | 1,835,013 | (1,130,219 | ) | 704,794 | |||||||||||||||||
$ | 2,789,327 | $ | (1,606,110 | ) | $ | 1,183,217 | $ | 2,723,670 | $ | (1,540,218 | ) | $ | 1,183,452 |
Deposits_and_Other_NonCurrent_1
Deposits and Other Non-Current Assets, Net. (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||
Deposits and other non-current assets | 31-Mar-15 | 31-Dec-14 | |||||||
Deferred Financing Fees | $ | 170,979 | $ | 195,201 | |||||
Prepaid Expenses | 6,529 | 7,104 | |||||||
Other Receivables | 51,055 | 43,193 | |||||||
Deposits | 153,585 | 153,585 | |||||||
Total Deposits and Other Non-Current Assets | $ | 382,148 | $ | 399,083 |
Accrued_Expenses_and_Other_Cur1
Accrued Expenses and Other Current Liabilities (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Payables and Accruals [Abstract] | |||||||||
Accrued expenses and other liabilities | 31-Mar-15 | 31-Dec-14 | |||||||
Accrued Payroll | $ | 21,572 | $ | 206,364 | |||||
Accrued Commissions | 110,445 | 113,193 | |||||||
Accrued Inventory Purchases | 123,398 | 108,016 | |||||||
Accrued Taxes and Other | 898,388 | 818,544 | |||||||
Accrued Insurance | 417,785 | 482,007 | |||||||
Deferred Finance Charge Income | 26,340 | 30,536 | |||||||
Total Accrued Expenses and Other Current Liabilities | $ | 1,597,928 | $ | 1,758,660 |
Financing_Instruments_Tables
Financing Instruments (Tables) | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||
Future minimum payments of long-term debt | Payments Due By Period | ||||||||||||||||||||
Less Than | 1 to 3 | 4 to 5 | More Than | ||||||||||||||||||
1 Year | Years | Years | 5 Years | Total | |||||||||||||||||
Revolver Loan | $ | — | $ | 5,549,948 | $ | — | $ | — | $ | 5,549,948 | |||||||||||
New Enhanced Note | — | 7,282,750 | — | — | 7,282,750 | ||||||||||||||||
Notes Payable – Related Party | — | 500,000 | — | — | 500,000 | ||||||||||||||||
Total | $ | — | $ | 13,332,698 | $ | — | $ | — | $ | 13,332,698 |
Net_Income_Loss_per_Common_Sha1
Net Income (Loss) per Common Share - Basic and Diluted (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Net Income Loss Per Common Share - Basic And Diluted Tables | |||||||||
Basic and Diluted earnings per share | 31-Mar-15 | 31-Mar-14 | |||||||
Net loss available to common shareholders (A) | $ | (1,399,197 | ) | $ | (1,046,514 | ) | |||
Weighted average common shares outstanding (B) | 120,426,487 | 114,399,050 | |||||||
Dilutive effect of equity incentive plans | 1,150,000 | 2,460,000 | |||||||
Weighted average common shares outstanding, assuming dilution (C) | 120,446,210 | 115,796,196 | |||||||
Basic earnings per common share (A)/(B) | $ | (0.01 | ) | $ | (0.01 | ) | |||
Diluted earnings per common share (A)/(C) | $ | (0.01 | ) | $ | (0.01 | ) |
Business_Segment_Information_T
Business Segment Information (Tables) | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||
Reportable Segments | |||||||||||||||||||||
Segments | |||||||||||||||||||||
31-Mar-15 | Foam | Coatings | Totals | ||||||||||||||||||
Sales | $ | 15,405,967 | $ | 2,088,259 | $ | 17,494,226 | |||||||||||||||
Depreciation | 30,048 | 4,073 | 34,121 | ||||||||||||||||||
Amortization of Other Intangible Assets | 52,223 | 7,079 | 59,302 | ||||||||||||||||||
Interest Expense | 245,552 | 33,284 | 278,836 | ||||||||||||||||||
Segment Profit | $ | 512,895 | $ | 186,390 | $ | 699,285 | |||||||||||||||
Segment Assets (1) | 19,030,071 | 3,481,639 | 22,511,710 | ||||||||||||||||||
Expenditures for Segment Assets | $ | 11,530 | $ | 1,563 | $ | 13,093 | |||||||||||||||
31-Mar-14 | Foam | Coatings | Totals | ||||||||||||||||||
Sales | $ | 14,020,272 | $ | 2,081,928 | $ | 16,102,200 | |||||||||||||||
Depreciation | 34,346 | 5,100 | 39,446 | ||||||||||||||||||
Amortization of Other Intangible Assets | 53,624 | 7,963 | 61,587 | ||||||||||||||||||
Interest Expense | 228,477 | 33,928 | 262,405 | ||||||||||||||||||
Segment Profit | $ | 518 | $ | 169,838 | $ | 170,356 | |||||||||||||||
Segment Assets (1) | 17,843,756 | 3,506,688 | 21,350,444 | ||||||||||||||||||
Expenditures for Segment Assets | $ | 164,266 | $ | 24,392 | $ | 188,658 | |||||||||||||||
Reconciliation of reportable segment profit or loss | Segments Profit | ||||||||||||||||||||
31-Mar-15 | 31-Mar-14 | ||||||||||||||||||||
Total Profit for Reportable Segments | $ | 699,285 | $ | 170,356 | |||||||||||||||||
Unallocated Amounts: | |||||||||||||||||||||
Corporate Expenses | (2,007,332 | ) | (1,216,870 | ) | |||||||||||||||||
Loss Before Income Taxes | $ | (1,308,047 | ) | $ | (1,046,514 | ) | |||||||||||||||
Reconciliation of reportable segment assets | |||||||||||||||||||||
Assets | 31-Mar-15 | 31-Mar-14 | |||||||||||||||||||
Total Assets for Reportable Segments (1) | $ | 22,511,710 | $ | 21,350,444 | |||||||||||||||||
Other Unallocated Amounts (2) | 289,305 | 317,943 | |||||||||||||||||||
Total | $ | 22,801,015 | $ | 21,668,387 | |||||||||||||||||
Geographic Area | Geographic Area | ||||||||||||||||||||
United States | Europe | Middle East | Rest of World | Total | |||||||||||||||||
31-Mar-15 | |||||||||||||||||||||
Sales | $ | 17,006,700 | $ | 202,179 | $ | — | $ | 285,347 | $ | 17,494,226 | |||||||||||
Long-Lived Assets | 22,511,710 | — | — | — | 22,511,710 | ||||||||||||||||
31-Mar-14 | |||||||||||||||||||||
Sales | $ | 14,562,577 | $ | 409,496 | $ | 660,000 | $ | 470,127 | $ | 16,102,200 | |||||||||||
Long-Lived Assets | 21,350,444 | — | — | — | 21,350,444 |
Basis_of_Presentation_Details_
Basis of Presentation (Details Narrative) (USD $) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Income Taxes | ||
Deferred Tax Asset | $24,600,000 | $23,500,000 |
Deferred Tax asset valuation allowance | 24,600,000 | 23,500,000 |
Deferred Tax Asset, net | $100,000 |
Liquidity_Details_Narrative
Liquidity (Details Narrative) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Accumulated Deficit | $91,555,800 | $90,156,603 | |
Net Loss | -1,399,197 | -1,046,514 | |
Net Cash (Used in) Provided by Operating Activities | -351,848 | 604,889 | |
Working Capital Surplus | $6,683,642 |
Dependence_on_a_few_suppliers_
Dependence on a few suppliers (Details Narrative) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Notes to Financial Statements | ||
Major Suppliers | 42% | 47% |
Trade_Receivables_Trade_Receiv
Trade Receivables - Trade Receivables (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Accounts Receivable, Net, Current [Abstract] | ||
Trade Receivables | $9,522,601 | $9,497,247 |
Less: Allowance for Doubtful Accounts | -449,463 | -616,883 |
Trade Receivables, Net | $9,073,138 | $8,880,364 |
Inventories_Inventories_Detail
Inventories - Inventories (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Inventory Disclosure [Abstract] | ||
Raw Materials | $1,443,135 | $1,461,040 |
Finished Goods | 4,353,647 | 3,806,985 |
Inventories | $5,796,782 | $5,268,025 |
Prepaid_Expenses_and_Other_Cur2
Prepaid Expenses and Other Current Assets. - Prepaid Expenses and Other Current Assets (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepaid Insurances | $559,708 | $568,088 |
Prepaid Marketing | 67,893 | 172,919 |
Prepaid Consulting | 21,077 | 60,266 |
Prepaid Other | 177,672 | 348,006 |
Total Prepaid Expenses and Other Current Assets | $826,350 | $1,149,279 |
Property_Plant_and_Equipment_P
Property, Plant and Equipment - Property, Plant and Equipment (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment [Abstract] | ||
Vehicles | $475,357 | $475,357 |
Leasehold Improvements | 288,777 | 288,777 |
Office Furniture and Equipment | 303,259 | 297,737 |
Computers and Software | 904,673 | 897,102 |
Machinery and Equipment | 2,503,062 | 2,503,062 |
Total Property, Plant and Equipment | 4,475,128 | 4,462,035 |
Less: Accumulated Depreciation | -3,188,987 | -3,097,422 |
Property, Plant and Equipment | $1,286,141 | $1,364,613 |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets - Goodwill (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Foam | $2,932,208 | $2,932,208 |
Coatings | 1,302,620 | 1,302,620 |
Goodwill | $4,234,828 | $4,234,828 |
Goodwill_and_Other_Intangible_3
Goodwill and Other Intangible Assets - Other Intangible Assets (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible Assets, Gross | $2,789,327 | $2,723,670 |
Accumulated Amortization | -1,606,110 | -1,540,218 |
Intangible Assets, Net | 1,183,217 | 1,183,452 |
Product Formulation | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible Assets, Gross | 138,471 | 138,471 |
Accumulated Amortization | -93,083 | -90,775 |
Intangible Assets, Net | 45,388 | 47,696 |
Trade Names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible Assets, Gross | 750,186 | 750,186 |
Accumulated Amortization | -331,728 | -319,224 |
Intangible Assets, Net | 418,458 | 430,962 |
Approvals and Certifications | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible Assets, Gross | 1,900,670 | 1,835,013 |
Accumulated Amortization | -1,181,299 | -1,130,219 |
Intangible Assets, Net | $719,371 | $704,794 |
Deposits_and_Other_NonCurrent_2
Deposits and Other Non-Current Assets, Net. - Deposits and other non-current assets (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Deferred Financing Fees | $170,979 | $195,201 |
Prepaid Expenses | 6,529 | 7,104 |
Other Receivables | 51,055 | 43,193 |
Deposits | 153,585 | 153,585 |
Total Deposits and Other-Non-Current Assets | $382,148 | $399,083 |
Accrued_Expenses_and_Other_Cur2
Accrued Expenses and Other Current Liabilities - Accrued expenses and other liabilities (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Accrued Liabilities and Other Liabilities [Abstract] | ||
Accrued Payroll | $21,572 | $206,364 |
Accrued Commissions | 110,445 | 113,193 |
Accrued Inventory Purchases | 123,398 | 108,016 |
Accrued Taxes and Other | 898,388 | 818,544 |
Accrued Insurance | 417,785 | 482,007 |
Deferred Finance Charge Income | 26,340 | 30,536 |
Total Accrued Expenses and Other Current Liabilities | $1,597,928 | $1,758,660 |
Financing_Instruments_Loan_and
Financing Instruments - Loan and Security Agreement (Details Narrative) (Revolver Loan, USD $) | 1 Months Ended | ||
Sep. 01, 2010 | Mar. 31, 2015 | Dec. 31, 2014 | |
Revolver Loan | |||
Line of Credit Facility [Line Items] | |||
Bank Loans Funds Available | $13,000,000 | ||
Maturity Date | 31-Mar-16 | ||
Bank Loan Payable | $5,549,948 | $5,435,005 | |
Weighted-Average Interest Rate | 6.00% | 4.40% |
Financing_Instruments_Note_Pur
Financing Instruments Note Purchase Agreement - New Enhanced Note (Details Narrative) (USD $) (USD $) | 0 Months Ended | 12 Months Ended | |
Dec. 10, 2013 | Dec. 31, 2014 | Mar. 31, 2015 | |
Note Purchase Agreement | |||
Line of Credit Facility [Line Items] | |||
Bank Loans Funds Available | $7,200,000 | ||
Maturity Date | 10-Dec-16 | ||
Interest Rate | 7.25% | 11.00% | |
Enhanced Notes Payable | 7,157,852 | 7,282,750 | |
Effective Interest Rate | 23.60% | 23.20% | |
Pruchase discount | 542,886 | ||
Enhanced Jobs for Texas | |||
Line of Credit Facility [Line Items] | |||
Bank Loans Funds Available | 5,700,000 | ||
Enhanced Texas Fund | |||
Line of Credit Facility [Line Items] | |||
Bank Loans Funds Available | $1,500,000 |
Financing_Instruments_Note_Pur1
Financing Instruments Note Purchase Agreement - New Enhanced Note Terms (Details Narrative) (Note Purchase Agreement) | 3 Months Ended |
Mar. 31, 2015 | |
Note Purchase Agreement | |
Line of Credit Facility [Line Items] | |
Terms | The Company has four material debt covenants to comply with relating to its New Enhanced Note: (i) capital expenditures are limited to $625,000 on an annual basis, (ii) a minimum [Adjusted] EBITDA, which cannot for the three (3) months ending on the last day of each month set forth in a schedule, be less than the corresponding amount set forth in the schedule for such period, (iii) maintain a fixed charge coverage ratio, tested monthly as of the last day of each calendar month, in each case for the most recently completed twelve calendar months, equal to a minimum ratio set forth in the schedule for such month, and (iv) maintain minimum liquidity of $500,000. |
Financing_Instruments_Note_Pur2
Financing Instruments Note Purchase - New Guaranty Agreement (Details Narrative) (Note Purchase Agreement, USD $) | 0 Months Ended | 3 Months Ended | 12 Months Ended |
Dec. 10, 2013 | Mar. 31, 2015 | Dec. 31, 2014 | |
Note Purchase Agreement | |||
Restricted Common Stock Issued, shares | 3,681,000 | 1,600,581 | 1,298,584 |
Restricted Common Stock, par value | $0.01 | ||
Per Share | $0.60 | ||
Restricted Common Stock Issued, Amount | $2,208,600 | $980,348 | $779,151 |
Financing_Instruments_Note_Pay
Financing Instruments Note Payable - Related Party (Details Narrative) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Dec. 31, 2014 | |
Promissory Note - November 14, 2014 | ||
Related Party Transaction [Line Items] | ||
Note due to related party | $250,000 | |
Interest Rate | 8.00% | |
Maturity Date | 10-Jun-14 | |
Accrued interest | 1,634 | 4,773 |
Promissory Note - January 21, 2015 | ||
Related Party Transaction [Line Items] | ||
Note due to related party | 250,000 | |
Interest Rate | 8.00% | |
Maturity Date | 10-Jun-17 | |
Accrued interest | $3,908 |
Financing_Instruments_Note_Pur3
Financing Instruments Note Purchase Agreement - Future Minimum Payments (Details Narrative) (USD $) (USD $) | 3 Months Ended |
Mar. 31, 2015 | |
Payments on Notes Payable | $13,332,698 |
Revolver Loan | |
Payments on Notes Payable | 5,549,948 |
Note Purchase Agreement | |
Payments on Notes Payable | 7,282,750 |
Notes Payable-Related Party | |
Payments on Notes Payable | $500,000 |
Related_Party_Transactions_Det
Related Party Transactions (Details Narrative 1) (Executive Employment Agreement, USD $) | 3 Months Ended |
Mar. 31, 2015 | |
Executive Employment Agreement | |
Annual Compensation | $190,000 |
Bonus Terms | (i) an annual base salary of $190,000; (ii) annual bonus equal to 25% of his annual base salary if the Company achieves its budgeted earnings before interest, taxes, depreciation, amortization, and share based compensation (“Adjusted EBITDA”) per calendar year, which annual bonus may be increased to 30%, 35%, or more than 35% in the CEO’s discretion, of his annual base salary if the Company achieves 110%, 120%, or more than 120%, respectively, of its budgeted Adjusted EBITDA; (iii) change in control bonus of 25% of his annual base salary upon consummation of a change in control if he is still employed at the time; (iv) medical, dental, life insurance, and disability benefits; (v) four months’ portion of his annual base salary for termination due to death or disability; (vi) four months’ portion of his annual base salary, awards and benefit plans and, if he would have received it had he remained employed for four months after his actual termination date, the change in control bonus in the event of termination without cause by the Company; and (vii) twelve months annual base salary if terminated within the first twelve months of the Employment Term or the remaining annual base salary if terminated after twelve months of his employment due to a change in control. |
Related_Party_Transactions_Det1
Related Party Transactions (Details Narrative 2) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Dec. 31, 2014 | |
Kramer Option | ||
Related Party Transaction [Line Items] | ||
Replacement of stock options | 2,000,000 | |
Stock options,granted | 1,150,000 | |
Stock options fair value | $86,147 | |
Common stock, shares | 850,000 | |
Share Price | $0.33 | |
1/16/15 Adams Option | ||
Related Party Transaction [Line Items] | ||
Stock options fair value | 93,536 | |
Common stock, shares | 300,000 | |
Share Price | $0.33 | |
Twelfth Amendment | ||
Related Party Transaction [Line Items] | ||
Accounts charged off | 267,000 | |
Capital expenditures | 150,000 | |
11/14/14 Kurtz Note | ||
Related Party Transaction [Line Items] | ||
Advances from notes payable | 250,000 | |
Interest rate | 8.00% | |
3/23/15 Schnitzer Option | ||
Related Party Transaction [Line Items] | ||
Stock options fair value | 118,122 | |
Common stock, shares | 300,000 | |
Share Price | $0.41 | |
Advisory and consulting services | ||
Related Party Transaction [Line Items] | ||
Restricted common stock, shares | 969,195 | |
Restricted common stock, value | 397,509 | |
Chairman and Principal Stockholder | ||
Related Party Transaction [Line Items] | ||
Restricted common stock, shares | 301,996 | |
Restricted common stock, value | $181,198 |
Net_Income_Loss_per_Common_Sha2
Net Income (Loss) per Common Share - Basic and Diluted (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Earnings Per Share [Abstract] | ||
Net loss available to common shareholders (A) | ($1,399,197) | ($1,046,514) |
Weighted average common shares outstanding (B) | 120,426,487 | 114,399,050 |
Dilutive effect of employee equity incentive plans | $1,150,000 | $2,460,000 |
Weighted average common shares outstanding, assuming dilution (C) | 120,446,210 | 115,796,196 |
Basic earnings per common share (A)/(B) | ($0.01) | ($0.01) |
Diluted earnings per common share (A)/(C) | ($0.01) | ($0.01) |
Net_Income_Loss_per_Common_Sha3
Net Income (Loss) per Common Share - Basic and Diluted (Details Narrative) | 3 Months Ended |
Mar. 31, 2015 | |
Antidilutive Secuities | 3,005,000 |
Out-of-the-money | |
Antidilutive Secuities | 2,080,000 |
Securities_Transactions_Detail
Securities Transactions (Details Narrative) (USD $) | 3 Months Ended |
Mar. 31, 2015 | |
Advisory and consulting services | |
Restricted Stock issued for Services, shares | 969,195 |
Restricted Stock issued for Services, amount | $397,509 |
Related Party | |
Restricted Stock issued for Guaranty of Note, shares | 301,996 |
Restricted Stock issued for Guaranty of Note, amount | $181,198 |
Business_Segment_Information_R
Business Segment Information - Reportable Segments (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Segment Reporting Information [Line Items] | ||
Sales | $17,494,226 | $16,102,200 |
Depreciation | 34,121 | 39,446 |
Amortization of Other Intangible Assets | 59,302 | 61,587 |
Interest Expense | 278,836 | 262,405 |
Segment Profit | 699,285 | 170,356 |
Segment Assets (1) | 22,511,710 | 21,350,444 |
Expenditures for Segment Assets | 13,093 | 188,658 |
Foam | ||
Segment Reporting Information [Line Items] | ||
Sales | 15,405,967 | 14,020,272 |
Depreciation | 30,048 | 34,346 |
Amortization of Other Intangible Assets | 52,223 | 53,624 |
Interest Expense | 245,552 | 228,477 |
Segment Profit | 512,895 | 518 |
Segment Assets (1) | 19,030,071 | 17,843,756 |
Expenditures for Segment Assets | 11,530 | 164,266 |
Coatings | ||
Segment Reporting Information [Line Items] | ||
Sales | 2,088,259 | 2,081,928 |
Depreciation | 4,073 | 5,100 |
Amortization of Other Intangible Assets | 7,079 | 7,963 |
Interest Expense | 33,284 | 33,928 |
Segment Profit | 186,390 | 169,838 |
Segment Assets (1) | 3,481,639 | 3,506,688 |
Expenditures for Segment Assets | $1,563 | $24,392 |
Business_Segment_Information_R1
Business Segment Information - Reconciliation of reportable segment profit or loss (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | ||
Total Profit or Loss for Reportable Segments | $699,285 | $170,356 |
Corporate Expenses | -2,007,332 | -1,216,870 |
Loss Before Income Taxes | ($1,308,047) | ($1,046,514) |
Business_Segment_Information_R2
Business Segment Information - Reconciliation of reportable segment assets (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 |
Segment Reporting [Abstract] | |||
Total Assets for Reportable Segments | $22,511,710 | $21,350,444 | |
Other Unallocated Amounts | 289,305 | 317,943 | |
Total Assets | $22,801,015 | $22,498,055 | $21,668,387 |
Business_Segment_Information_G
Business Segment Information - Geographic Area Information (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Sales | $17,494,226 | $16,102,200 |
Long Lived Assets | 22,511,710 | 21,350,444 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Sales | 17,006,700 | 14,562,577 |
Long Lived Assets | 22,511,710 | 21,350,444 |
Europe | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Sales | 202,179 | 409,496 |
Middle East | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Sales | 660,000 | |
Rest of the World | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Sales | $285,347 | $470,127 |