LaPolla Industries (LPAD) 10-Q/A 18 Sep 15 2015 Q1 Quarterly report (amended) Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2015	Apr. 29, 2015
Document And Entity Information
Entity Registrant Name	LAPOLLA INDUSTRIES INC
Entity Central Index Key	875,296
Document Type	10-Q/A
Document Period End Date	Mar. 31, 2015
Amendment Flag	true
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		121,110,757
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2,015
Amendment	This amendment is to amend Note 12 and Item 2 in Part I.

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) - $ / shares	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 Operati

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 Fl

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 pectively, 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 Pronouncement

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,” 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 New Accounting Standards Not Yet Adopted In May 2014, the FASB issued ASU No. 2014-09, " Revenue from Contracts with Customers 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.” Company’s In January 2015, the FASB issued ASU No. 2015-01, “ Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items.” Company’s In April 2015, the FASB issued ASU No. 2015-03, “ Simplifying the Presentation of Debt Issuance Costs ” Company’s

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: March 31, 2015 December 31, 2014 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: March 31, 2015 December 31, 2014 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 Curr

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: March 31, 2015 December 31, 2014 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: March 31, 2015 December 31, 2014 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 A

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: March 31, 2015 December 31, 2014 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 March 31, 2015 December 31, 2014 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 Non-Current

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: March 31, 2015 December 31, 2014 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 Curr

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: March 31, 2015 December 31, 2014 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 (b) Note Purchase Agreement (i) New Enhanced Note Adjusted] EBITDA, See also (ii) New Guaranty Agreement (c) Notes Payable – Related Party (i) November 14, 2014 Promissory Note (ii) January 21, 2015 Promissory Note Refer to (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) (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 (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 (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 Sh

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: March 31, 2015 March 31, 2014 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 Segments March 31, 2015 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 March 31, 2014 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 March 31, 2015 March 31, 2014 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 March 31, 2015 March 31, 2014 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) (2) 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 March 31, 2015 Sales $ 17,006,700 $ 202,179 $ — $ 285,347 $ 17,494,226 Long-Lived Assets 22,511,710 — — — 22,511,710 March 31, 2014 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, Critic23

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 pectively, 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 Pronounceme24

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,” 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
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

Trade Receivables (Tables)

Trade Receivables (Tables)	3 Months Ended
	Mar. 31, 2015
Receivables [Abstract]
Trade Receivables	March 31, 2015 December 31, 2014 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	March 31, 2015 December 31, 2014 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 Cu27

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	March 31, 2015 December 31, 2014 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 (Tables)	3 Months Ended
	Mar. 31, 2015
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment	March 31, 2015 December 31, 2014 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 Intangible29

Goodwill and Other Intangible Assets (Tables)	3 Months Ended
	Mar. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	March 31, 2015 December 31, 2014 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	March 31, 2015 December 31, 2014 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 Non-Curren30

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	March 31, 2015 December 31, 2014 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 Cu31

Accrued Expenses and Other Current Liabilities (Tables)	3 Months Ended
	Mar. 31, 2015
Payables and Accruals [Abstract]
Accrued expenses and other liabilities	March 31, 2015 December 31, 2014 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 33

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	March 31, 2015 March 31, 2014 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 March 31, 2015 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 March 31, 2014 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 March 31, 2015 March 31, 2014 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 March 31, 2015 March 31, 2014 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 March 31, 2015 Sales $ 17,006,700 $ 202,179 $ — $ 285,347 $ 17,494,226 Long-Lived Assets 22,511,710 — — — 22,511,710 March 31, 2014 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 Recei

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 (Deta

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 Cu40

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 -

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 Intangible42

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 Intangible43

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 Non-Curren44

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 Cu45

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 an

Financing Instruments - Loan and Security Agreement (Details Narrative) - Revolver Loan - USD ($)	1 Months Ended
	Sep. 01, 2010	Mar. 31, 2015	Dec. 31, 2014	Mar. 31, 2014
Line of Credit Facility [Line Items]
Bank Loans Funds Available	$ 13,000,000
Maturity Date	Mar. 31, 2016
Bank Loan Payable		$ 5,549,948	$ 5,435,005
Weighted-Average Interest Rate		6.00%	4.40%
Cash Available		$ 1,957,758		$ 2,217,907

Financing Instruments Note Purc

Financing Instruments Note Purchase Agreement - New Enhanced Note (Details Narrative) (USD $) - USD ($)	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	Dec. 10, 2016
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 Pu48

Financing Instruments Note Purchase Agreement - New Enhanced Note Terms (Details Narrative)	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,

Financing Instruments Note Pu49

Financing Instruments Note Purchase - New Guaranty Agreement (Details Narrative) - Note Purchase Agreement - USD ($)	Dec. 10, 2013	Mar. 31, 2015	Dec. 31, 2014
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 Paya

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	Jun. 10, 2014
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	Jun. 10, 2017
Accrued interest	$ 3,908

Financing Instruments Note Pu51

Financing Instruments Note Purchase Agreement - Future Minimum Payments (Details Narrative) (USD $)	3 Months Ended
	Mar. 31, 2015USD ($)
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) - 3 months ended Mar. 31, 2015 - Executive Employment Agreement - USD ($)	Total
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 (D53

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		$ 0.325
1/16/15 Adams Option
Related Party Transaction [Line Items]
Stock options fair value	$ 93,536
Common stock, shares	300,000
Share Price	$ 0.325
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 54

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 55

Net Income (Loss) per Common Share - Basic and Diluted (Details Narrative)	3 Months Ended
	Mar. 31, 2015shares
Antidilutive Secuities	3,005,000
Out-of-the-money
Antidilutive Secuities	2,080,000

Securities Transactions (Detail

Securities Transactions (Details Narrative) - 3 months ended Mar. 31, 2015 - USD ($)	Total
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 -

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 58

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 59

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 60

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