LaPolla Industries (LPAD) 10-Q 31 Oct 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2017	Oct. 31, 2017
Document And Entity Information
Entity Registrant Name	LAPOLLA INDUSTRIES INC
Entity Central Index Key	875,296
Document Type	10-Q
Document Period End Date	Sep. 30, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		127,816,247
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2,017

Condensed Balance Sheets

Condensed Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Assets, Current [Abstract]
Cash	$ 1,251	$ 1,722
Trade Receivables, Net	16,990	12,508
Inventories, Net	7,149	6,610
Prepaid Expenses and Other Current Assets	1,621	2,074
Total Current Assets	27,011	22,914
Property, Plant and Equipment, Net	1,089	985
Goodwill	4,235	4,235
Other Intangible Assets, Net	1,443	1,180
Deposits and Other Non-Current Assets, Net	63	81
Total Assets	33,841	29,395
Current Liabilities:
Accounts Payable	8,857	6,741
Accrued Expenses and Other Current Liabilities	2,598	2,938
Total Current Liabilities	11,455	9,679
Long-Term Debt, Net	5,960	8,945
Deferred Tax Liability	447	414
Total Liabilities	17,862	19,038
Stockholders' Equity:
Common Stock, $0.01 Par Value; 140,000,000 Shares Authorized; 123,569,129 and 123,494,129 Issued and Outstanding for September 30, 2017 and December 31, 2016, respectively.	1,236	1,235
Additional Paid-In Capital	93,067	93,600
Accumulated Deficit	(78,324)	(84,478)
Total Stockholders' Equity	15,979	10,357
Total Liabilities and Stockholders' Equity	$ 33,841	$ 29,395

Condensed Balance Sheets (Paren

Condensed Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2017	Dec. 31, 2016
Stockholders' Equity Attributable to Parent [Abstract]
Common Stock, Par Value (usd per share)	$ 0.01	$ 0.01
Common Stock, Shares Authorized (shares)	140,000,000	140,000,000
Common Stock, Shares Issued (shares)	123,569,129	123,494,129
Common Stock, Shares Outstanding (shares)	123,569,129	123,494,129

Condensed Statements of Operati

Condensed Statements of Operations - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Income Statement [Abstract]
Sales	$ 28,828	$ 20,917	$ 77,627	$ 61,647
Cost of Sales	21,535	14,773	57,163	43,719
Gross Profit	7,293	6,144	20,464	17,928
Operating Expenses:
Selling, General and Administrative	3,566	3,525	11,227	11,100
Professional Fees	458	339	1,299	969
Depreciation	30	20	73	79
Amortization of Other Intangible Assets	79	67	200	210
Consulting Fees	380	123	916	421
Total Operating Expenses	4,513	4,074	13,715	12,779
Operating Income	2,780	2,070	6,749	5,149
Other (Income) Expense:
Interest Expense	50	192	167	818
Interest Expense – Related Party	0	125	0	491
Interest Expense – Amortization of Discount	0	30	0	120
Loss on Extinguishment of Debt	0	306	0	306
Other Income	(9)	(90)	(57)	(701)
Total Other Expense	41	563	110	1,034
Income Before Income Taxes	2,739	1,507	6,639	4,115
Provision for Income Taxes	149	39	485	151
Net Income	$ 2,590	$ 1,468	$ 6,154	$ 3,964
Earnings Per Share:
Basic (usd per share)	$ 0.02	$ 0.01	$ 0.05	$ 0.03
Diluted (usd per share)	$ 0.02	$ 0.01	$ 0.05	$ 0.03
Basic, weighted average shares outstanding (shares)	123,544	123,016	123,519	122,654
Diluted, weighted average shares outstanding (shares	125,979	123,050	123,031	122,655

Condensed Statements of Cash Fl

Condensed Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Net Cash Provided by (Used in) Operating Activities [Abstract]
Net Income	$ 6,154	$ 3,964
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:
Depreciation	187	202
Amortization of Other Intangible Assets	200	210
Provision for Losses on Accounts Receivable	261	169
Share Based Compensation Expense	708	711
Interest Expense – Related Party	0	491
Interest Expense – Amortization of Discount	0	120
(Gain) Loss on Foreign Currency Exchange	(2)	8
Gain on Disposal of Assets	0	(9)
Loss on Extinguishment of Debt	0	306
Deferred Income Tax Provision	33	39
Changes in Assets and Liabilities:
Trade Receivables	(4,749)	(1,580)
Inventories	(486)	1,022
Prepaid Expenses and Other Current Assets	453	84
Other Intangible Assets	(463)	(190)
Deposits and Other Non-Current Assets	33	41
Accounts Payable	2,123	973
Accrued Expenses and Other Current Liabilities	(407)	(490)
Net Cash Provided by Operating Activities	4,045	6,071
Cash Flows From Investing Activities:
Additions to Property, Plant and Equipment	(276)	(133)
Net Cash Used in Investing Activities	(276)	(133)
Cash Flows From Financing Activities:
Proceeds from Line of Credit	4,250	9,953
Principal Repayments to Line of Credit	(7,250)	(250)
Cash Dividends Paid	(1,240)	0
Proceeds from Revolver Loan	0	54,996
Principal Repayments to Revolver Loan	0	(61,732)
Principal Repayments on Enhanced Notes	0	(7,688)
Net Cash Used in Financing Activities	(4,240)	(4,721)
Net (Decrease) Increase in Cash	(471)	1,217
Cash at Beginning of Period	1,722	0
Cash at End of Period	1,251	1,217
Supplemental Disclosure of Cash Flow Information:
Cash Payments for Income Taxes	202	27
Cash Payments for Interest	176	735
Supplemental Schedule of Non Cash Investing and Financing Activities:
Capital Additions in Accrued Expenses	67	0
Issuances of Common Stock for Guaranty by Related Party classified as Interest Expense	$ 0	$ 695

Basis of Presentation, Critical

Basis of Presentation, Critical Accounting Policies, Estimates, and Assumptions	9 Months Ended
	Sep. 30, 2017
Accounting Policies [Abstract]
Basis of Presentation, Critical Accounting Policies, Estimates, and Assumptions	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, 2016 , which was filed with the SEC on February 15, 2017, 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, 2016 . There have been no significant changes in the Company’s accounting policies during the three and nine months ended September 30, 2017 . 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. Reclassifications Certain reclassifications of prior year amounts have been made to confirm to the current year presentation. The reclassifications had no impact on net income.

Recent Accounting Pronouncement

Recent Accounting Pronouncements	9 Months Ended
	Sep. 30, 2017
Accounting Changes and Error Corrections [Abstract]
Recent Accounting Pronouncements	Recent Accounting Pronouncements Recently Adopted Accounting Standards In July 2015, the FASB issued ASU 2015-11, "Inventory (Topic 330): Simplifying the Measurement of Inventory," which applies to inventory that is measured using first-in, first-out ("FIFO") or average cost. Under the updated guidance, an entity should measure inventory that is within scope at the lower of cost and net realizable value, which is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. Subsequent measurement is unchanged for inventory that is measured using last-in, last-out ("LIFO"). This ASU is effective for annual and interim periods beginning after December 15, 2016, and should be applied prospectively with early adoption permitted at the beginning of an interim or annual reporting period. The adoption did not have a material impact on the Company’s financial statements. In March 2016, the FASB issued ASU 2016-09, "Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting," which simplifies several aspects of the accounting for share-based payment awards to employees, including the accounting for income taxes, forfeitures, statutory tax withholding requirements and classification in the statement of cash flows. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. The adoption did not have a material impact on the Company’s financial statements. New Accounting Standards Not Yet Adopted In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09, "Revenue from Contracts with Customers." The ASU will supersede most of the existing revenue recognition requirements in U.S. generally accepted accounting principles ("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 of adopting this guidance. Note 2 - Recent Accounting Pronouncements, continued In February 2016, the FASB issued ASU 2016-02, "Leases: Amendments to the FASB Accounting Standards Codification," which requires companies to recognize all leases as assets and liabilities on the consolidated balance sheet. This ASU retains a distinction between finance leases and operating leases, and the classification criteria for distinguishing between finance leases and operating leases are substantially similar to the classification criteria for distinguishing between capital leases and operating leases in the current accounting literature. The result of retaining a distinction between finance leases and operating leases is that under the lessee accounting model, the effect of leases in a consolidated statement of comprehensive income and a consolidated statement of cash flows is largely unchanged from previous GAAP. The amendments are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Earlier application is permitted. The Company is currently evaluating the impact of adopting this guidance. In August 2016, the FASB issued ASU 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments," which contains amendments designed to make current GAAP clear or provide specific guidance on eight cash flow classification issues relating to how certain cash receipts and cash payments are presented and classified in the statement of cash flows, thereby reducing the current and potential future diversity in practice. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is permitted, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. An entity that elects early adoption must adopt all of the amendments in the same period. The amendments should be applied using a retrospective transition method to each period presented. If it is impracticable to apply the amendments retrospectively for some of the issues, the amendments for those issues would be applied prospectively as of the earliest date practicable. The Company is currently evaluating the impact of adopting this guidance. In January 2017, the FASB issued ASU 2017-04, "Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment," which contains amendments to simplify the subsequent measurement of goodwill. Under the amendments in this ASU, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. The amendments of this ASU are effective for fiscal years beginning after December 15, 2019. The Company is currently evaluating the impact of adopting this guidance. In May 2017, the FASB issued ASU 2017-09, "Compensation - Stock Compensation (Topic 718)," which provides clarity and reduces both (1) diversity in practice and (2) cost and complexity when applying the guidance in Topic 718 to a change to the terms or conditions of a share-based payment award. The amendments in this Update are effective for all entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. The Company is currently evaluating the impact of adopting this guidance. In July 2017, the FASB issued ASU 2017-11, "Earnings Per Share (Topic 260) Distinguishing Liabilities from Equity (Topic 480) Derivatives and Hedging (Topic 815)," which addresses the complexity of accounting for certain financial instruments with down round features. Down round features are features of certain equity-linked instruments (or embedded features) that result in the strike price being reduced on the basis of the pricing of future equity offerings. Current accounting guidance creates cost and complexity for entities that issue financial instruments (such as warrants and convertible instruments) with down round features that require fair value measurement of the entire instrument or conversion option. For public business entities, the amendments in Part I of this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. For all other entities, the amendments in Part I of this Update are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. The Company is currently evaluating the impact of adopting this guidance.

Dependence on Few Suppliers

Dependence on Few Suppliers	9 Months Ended
	Sep. 30, 2017
Risks and Uncertainties [Abstract]
Dependence on Few Suppliers	Dependence on Few Suppliers The Company is dependent on a few suppliers for certain raw materials and finished goods. For the three and nine month period ended September 30, 2017 and 2016 , raw materials and finished goods purchased from the three largest suppliers accounted for approximately 43% and 43% , and 43% and 41% of purchases, respectively.

Trade Receivables

Trade Receivables	9 Months Ended
	Sep. 30, 2017
Receivables [Abstract]
Trade Receivables	Trade Receivables Trade receivables are comprised of the following (in thousands): September 30, 2017 December 31, 2016 Trade Receivables $ 17,337 $ 12,874 Less: Allowance for Doubtful Accounts (347 ) (366 ) Trade Receivables, Net $ 16,990 $ 12,508

Inventories

Inventories	9 Months Ended
	Sep. 30, 2017
Inventory Disclosure [Abstract]
Inventories	Inventories The following is a summary of inventories (in thousands): September 30, 2017 December 31, 2016 Raw Materials $ 2,356 $ 2,157 Finished Goods 4,793 4,453 Inventories, Net $ 7,149 $ 6,610

Prepaid Expenses and Other Curr

Prepaid Expenses and Other Current Assets	9 Months Ended
	Sep. 30, 2017
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Prepaid Expenses and Other Current Assets	Prepaid Expenses and Other Current Assets The following is a summary of prepaid expenses and other current assets (in thousands): September 30, 2017 December 31, 2016 Prepaid Insurances $ 245 $ 735 Prepaid Marketing 71 181 Prepaid Consulting 68 94 Prepaid Other 1,237 1,064 Total Prepaid Expenses and Other Current Assets $ 1,621 $ 2,074

Property, Plant and Equipment

Property, Plant and Equipment	9 Months Ended
	Sep. 30, 2017
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment	Property, Plant and Equipment The following is a summary of property, plant and equipment (in thousands): September 30, 2017 December 31, 2016 Vehicles $ 194 $ 244 Leasehold Improvements 303 269 Office Furniture and Equipment 199 159 Computers and Software 1,108 907 Machinery and Equipment 2,572 2,557 Total Property, Plant and Equipment $ 4,376 $ 4,136 Less: Accumulated Depreciation (3,287 ) (3,151 ) Total Property, Plant and Equipment, Net $ 1,089 $ 985

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets	9 Months Ended
	Sep. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Other Intangible Assets	Goodwill and Other Intangible Assets Goodwill The following is a summary of Goodwill (in thousands): September 30, 2017 December 31, 2016 Foam $ 2,932 $ 2,932 Coatings 1,303 1,303 Total Goodwill $ 4,235 $ 4,235 Other Intangible Assets The following is a summary of Other Intangible Assets (in thousands): September 30, 2017 December 31, 2016 Gross Amount Accumulated Amortization Net Amount Gross Amount Accumulated Amortization Net Amount Product Formulation $ 138 $ (111 ) $ 27 $ 138 $ (104 ) $ 34 Trade Names 750 (457 ) 293 750 (419 ) 331 Approvals and Certifications 3,926 (2,803 ) 1,123 3,462 (2,647 ) 815 $ 4,814 $ (3,371 ) $ 1,443 $ 4,350 $ (3,170 ) $ 1,180

Deposits and Other Non-Current

Deposits and Other Non-Current Assets	9 Months Ended
	Sep. 30, 2017
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Deposits and Other Non-Current Assets	Deposits and Other Non-Current Assets The following is a summary of deposits and other non-current assets (in thousands): September 30, 2017 December 31, 2016 Prepaid Expenses $ 6 $ 8 Other Receivables — 9 Deposits 57 64 Total Deposits and Other Non-Current Assets $ 63 $ 81

Accrued Expenses and Other Curr

Accrued Expenses and Other Current Liabilities	9 Months Ended
	Sep. 30, 2017
Payables and Accruals [Abstract]
Accrued Expenses and Other Current Liabilities	Accrued Expenses and Other Current Liabilities The following is a summary of accrued expenses and other current liabilities (in thousands): September 30, 2017 December 31, 2016 Accrued Payroll $ 107 $ 3 Accrued Commissions 176 172 Accrued Inventory Purchases 172 249 Accrued Taxes and Other 2,082 2,011 Accrued Insurance 35 490 Deferred Finance Charge Income 26 13 Total Accrued Expenses and Other Current Liabilities $ 2,598 $ 2,938

Long-Term Debt

Long-Term Debt	9 Months Ended
	Sep. 30, 2017
Debt Disclosure [Abstract]
Long-Term Debt	Long-Term Debt The following is a summary of long-term debt (in thousands): Debt Facility Effective Cash Interest Rate September 30, 2017 December 31, 2016 Line of Credit 3.46% $ 6,000 $ 9,000 Less Debt Issuance Costs (40 ) (55 ) Long-Term Debt, Net $ 5,960 $ 8,945 The Company entered into a loan agreement with Bank of America, N.A. (the “Bank”) on September 7, 2016 (the “Loan Agreement”), which amended and restated in its entirety that certain prior Loan and Security Agreement dated August 31, 2010 with the Bank. The Loan Agreement provides an initial line of credit of $15 million for a 3 years term maturing on September 7, 2019 (the “Line of Credit”). The available amount of the Line of Credit will be reduced each quarter by $250,000 starting January 1, 2017, until it reaches $12 million on July 1, 2019, thereby reducing the Company’s unused line fee. The interest rate used by the Company is the daily floating LIBOR rate plus 2.25% . The Loan Agreement requires the Company to comply with two financial covenants, including: (i) an asset coverage ratio of at least (a) 1.10 to 1.00 from September 30, 2016, until September 30, 2017, (b) 1.15 to 1.00 from October 1, 2017, through March 31, 2018, and (c) 1.20 to 1.00 from April 1, 2018, and thereafter, tested quarterly, which in each case will be determined based upon the ratio of (x) 85% of book value of all accounts receivable, plus 55% of book value of all inventory, plus 50% of net book value of plant, property and equipment of the Company (the “Total Margined Value”) to (y) all outstanding liabilities for borrowed money and other interest-bearing liabilities arising under the Line of Credit (the “Total Line of Credit"); and (ii) a fixed charge coverage ratio of at least 1.20 to 1.00, tested quarterly based upon the ratio of (a) Adjusted EBITDA (as defined in the Loan Agreement), to (b) the sum of capital expenditures, cash taxes paid, interest expenses, principal payments made on borrowed money other than the Line of Credit and certain prior refinanced debt agreements, and distributions made, in each case for the immediately preceding four fiscal quarter period and determined on a consolidated basis. Upon closing of the Loan Agreement, an aggregate of $8.5 million was drawn from the Line of Credit and used to pay off certain prior refinanced debt agreements. The Company granted the Bank a continuing security interest in and lien upon substantially all assets of the corporation. If, at any time, the Company’s Total Margined Value is less than the amount outstanding under the Total Line of Credit, and that amount remains unpaid or future Total Margined Value calculations do not increase to an amount equal to the balance outstanding under the Total Line of Credit, the Bank, in its sole discretion, may accelerate any and all amounts outstanding under the Line of Credit. At September 30, 2017 , the balance outstanding on the Line of Credit, net of deferred financing costs, was $6.0 million , and the weighted-average interest rate was 2.46% . Cash available under our Line of Credit based on the Asset Coverage Ratio, and after giving effect to outstanding borrowings, at September 30, 2017 was $8.3 million . At September 30, 2017 , the Company was in compliance with all of its Loan Agreement debt covenants.

Related Party Transactions

Related Party Transactions	9 Months Ended
	Sep. 30, 2017
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions (a) On January 1, 2017, the Company granted a stock bonus to the chairman of the board, Richard J. Kurtz, for the right to acquire 100,000 shares of the Company's common stock, par value $0.01 . No monetary payment is required as a condition of receiving the shares of common stock, as the consideration is continued satisfactory chairman of the board services with the Company during the vesting period. The shares of common stock vest in four equal 25,000 share increments on March 31, 2017, June 30, 2017, September 30, 2017, and December 31, 2017, respectively, subject to continued chairman of the board services to the Company. Once vested, the shares of common stock are freely transferable. The transaction was valued at $53,000 (calculated by multiplying the 100,000 shares by the $0.53 closing price of the Company's common stock on the date of grant) and is being expensed over the requisite service period on the respective vesting dates. On March 31, 2017, the first tranche of 25,000 shares of common stock vested, which transaction was valued and recorded at $13,000 . (b) On January 5, 2017, the Company granted eight -year stock options to non-employee directors, Richard J. Kurtz, Jay C. Nadel, Arthur J. Gregg, and Augustus J. Larson, each for the right to acquire 100,000 shares of the Company's common stock, par value $0.01 , 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 $0.50 per share, which options vest 33,333 , 33,333 , and 33,334 on December 31, 2017, December 31, 2018, and December 31, 2019, respectively, subject to continued satisfactory board services. The transactions were valued in the aggregate at $191,000 which was estimated using the Black-Scholes option pricing model and will be expensed over the requisite vesting period. Note 12 - Related Party Transactions, continued (c) On April 6, 2017, and effective January 1, 2017, the Company entered into an Executive Employment Agreement with Jomarc C. Marukot, chief financial officer and treasurer (the “Marukot Employment Agreement”), which superseded and replaced all prior employment agreements between the Company and Mr. Marukot. The Marukot Employment Agreement provides, among other things, that Mr. Marukot will receive base compensation of $210,000 per annum and shall be entitled to a bonus equal to 25% of his base salary for each fiscal year if the Company's earnings before interest, taxes, depreciation, amortization, and share based compensation (“Adjusted EBITDA”) for such fiscal year exceeds a target established by the Company's Board of Directors (which bonus shall be increased to: (a) 30% of Mr. Marukot’s annual base compensation if the Company achieves 110% of the Adjusted EBITDA target for such fiscal year and (b) 35% of Mr. Marukot’s annual base compensation if the Company achieves 120% of the Adjusted EBITDA target for such fiscal year). In addition, if the Company achieves Adjusted EBITDA greater than 120% of the target in any fiscal year, the Company's CEO, in his discretion, may pay Mr. Marukot a bonus greater than 35% of his annual base compensation, subject to review and approval by the Compensation Committee and Board of Directors. The Marukot Employment Agreement also provides for a transaction bonus equal to 0.25% of the consideration received by the Company's shareholders (the amount of such bonus being subject to the restrictions and further calculations set forth in the Marukot Employment Agreement) upon consummation of a change in control if Mr. Marukot is still employed at such time or in the event Mr. Marukot’s employment is terminated within one year immediately preceding the consummation of a change in control. (d) On April 6, 2017, the Company entered into an Executive Employment Agreement with Michael T. Adams, chief governance officer, vice president and corporate secretary (the “Adams Employment Agreement”), which superseded and replaced all prior employment agreements between the Company and Mr. Adams. The Adams Employment Agreement provides, among other things, that Mr. Adams will receive base compensation of $200,000 per annum and shall be entitled to a bonus equal to 25% of his base salary for each fiscal year if the Company's Adjusted EBITDA for such fiscal year exceeds a target established by the Company's Board of Directors (which bonus shall be increased to: (a) 30% of Mr. Adams' annual base compensation if the Company achieves 110% of the Adjusted EBITDA target for such fiscal year and (b) 35% of Mr. Adams' annual base compensation if the Company achieves 120% of the Adjusted EBITDA target for such fiscal year). In addition, if the Company achieves Adjusted EBITDA greater than 120% of the target in any fiscal year, the Company's CEO, in his discretion, may pay Mr. Adams a bonus greater than 35% of his annual base compensation, subject to review and approval by the Compensation Committee and Board of Directors. Also, the Adams Employment Agreement provides for a transaction bonus equal to 0.50% of the consideration received by the Company's shareholders (the amount of such bonus being subject to the restrictions and further calculations set forth in the Adams Employment Agreement) upon consummation of a change in control if Mr. Adams is still employed at such time or in the event Mr. Adams’ employment is terminated within one year immediately preceding the consummation of a change in control. (e) During the nine months ended September 30, 2017, Richard J. Kurtz, Chairman of the Board and majority stockholder of the Company, indirectly purchased the Company’s products in a series of arm’s length transactions at or above the prevailing selling prices for the products at the time of each transaction, which transactions were valued in the aggregate at $825,000 , through entities in which he holds at least a 10% interest.

Net Income (Loss) Per Common Sh

Net Income (Loss) Per Common Share - Basic and Diluted	9 Months Ended
	Sep. 30, 2017
Earnings Per Share [Abstract]
Net Income Per Common Share - Basic and Diluted	Net Income Per Common Share – Basic and Diluted Basic income per share is based upon the net income applicable to common shares and upon the weighted average number of common shares outstanding during the period. Diluted income per share reflects the effect of the assumed exercise of stock options only in periods in which such effect would have been dilutive. The computation of the Company’s basic and diluted earnings per share (in thousands, except per share data): For The Three Months Ended For The Nine Months Ended 2017 2016 2017 2016 Income available to common shareholders (A) $ 2,590 $ 1,468 $ 6,154 $ 3,964 Weighted average common shares outstanding (B) 123,544 123,016 123,519 122,654 Dilutive effect of equity incentive plans 1,935 34 (488 ) 1 Weighted average common shares outstanding, assuming dilution (C) 125,479 123,050 123,031 122,655 Basic earnings per common share (A)/(B) $ 0.02 $ 0.01 $ 0.05 $ 0.03 Diluted earnings per common share (A)/(C) $ 0.02 $ 0.01 $ 0.05 $ 0.03 Note 13 - Net Income Per Common Share – Basic and Diluted, continued For the three and nine months ended September 30, 2017 , a total of 1,415,000 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 the three and nine months ended September 30, 2016 , a total of 1,008,000 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.

Federal and State Income Taxes

Federal and State Income Taxes	9 Months Ended
	Sep. 30, 2017
Income Tax Disclosure [Abstract]
Federal and State Income Taxes	Federal and State Income Taxes The Company is a corporation subject to federal income tax at a statutory rate of 34% of pretax earnings. The Company estimated an annual effective income tax rate of 7.3% based on projected results for the year and applied this rate to income before taxes to calculate income tax expense. For the three months ended September 30, 2017 and 2016 the tax expense was approximately $149,000 and $39,000 , resulting in an effective tax rate of approximately 5.4% and 2.6% , respectively. For the nine months ended September 30, 2017 and 2016 the tax expense was approximately $485,000 and $151,000 , resulting in an effective tax rate of approximately 7.3% and 3.7% , respectively. The difference in the statutory and effective tax rates is primarily due to the company utilizing an available net operating loss carry-forward. Based on management's analysis, the Company did not have any uncertain tax positions as of September 30, 2017 .

Securities Transactions

Securities Transactions	9 Months Ended
	Sep. 30, 2017
Securities Financing Transactions [Abstract]
Securities Transactions	Securities Transactions (a) On March 31, 2017, the Company vested 25,000 shares of common stock, par value $0.01 , valued and recorded at $13,250 for a stock bonus. (b) On June 30, 2017, the Company vested 25,000 shares of common stock, par value $0.01 , valued and recorded at $13,250 for a stock bonus. (c) On September 30, 2017 , the Company vested 25,000 shares of common stock, par value $0.01 , valued and recorded at $13,250 for a stock bonus.

Business Segment and Geographic

Business Segment and Geographic Area Information	9 Months Ended
	Sep. 30, 2017
Segment Reporting [Abstract]
Business Segment and Geographic Area Information	Business Segment and Geographic Area Information Business Segments Summarized financial information for the reportable segments is as follows (in thousands): Three Months Ended September 30, 2017 2016 Foam Coatings Totals Foam Coatings Totals Sales $ 24,642 $ 4,186 $ 28,828 $ 17,719 $ 3,198 $ 20,917 Depreciation 23 4 27 15 3 18 Amortization of Other Intangible Assets 61 10 71 51 9 60 Interest Expense 21 4 25 147 27 174 Segment Profit 3,502 886 4,388 2,713 541 3,254 Segment Assets (1) 26,830 5,299 32,129 21,315 4,564 25,879 Expenditures for Segment Assets $ 199 $ 34 $ 233 $ (38 ) $ (7 ) $ (45 ) Note 16. Business Segment and Geographic Area Information, continued. Nine Months Ended September 30, 2017 2016 Foam Coatings Totals Foam Coatings Totals Sales $ 66,383 $ 11,244 $ 77,627 $ 52,088 $ 9,559 $ 61,647 Depreciation 55 9 64 59 11 70 Amortization of Other Intangible Assets 165 26 191 160 29 189 Interest Expense 72 12 84 603 112 715 Segment Profit 9,399 2,120 11,519 7,517 1,580 9,097 Segment Assets (1) 26,830 5,299 32,129 21,315 4,564 25,879 Expenditures for Segment Assets $ 395 $ 70 $ 465 $ 112 $ 21 $ 133 The following are reconciliations of reportable segment profit or loss, and assets, to the Company’s consolidated totals (in thousands): For The Three Months Ended For The Nine Months Ended Profit or Loss 2017 2016 2017 2016 Total Profit or Loss for Reportable Segments $ 4,388 $ 3,254 $ 11,519 $ 9,097 Unallocated Amounts: Corporate Expenses (1,649 ) (1,747 ) (4,880 ) (4,982 ) Income Before Income Taxes $ 2,739 $ 1,507 $ 6,639 $ 4,115 Assets At September 30, 2017 At December 31, 2016 Total Assets for Reportable Segments (1) $ 32,129 $ 27,104 Other Unallocated Amounts (2) 1,712 2,291 Consolidated Total $ 33,841 $ 29,395 (1) Segment assets are the total assets used in the operation of each segment. (2) Includes corporate assets which are principally cash and cash equivalents and deposits. 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. Sales and Long-Lived Assets by geographic area are as follows (in thousands): For The Three Months Ended For The Nine Months Ended Sales 2017 2016 2017 2016 United States $ 27,353 $ 19,564 $ 75,051 $ 57,507 Canada 503 247 729 878 Europe 765 921 1,443 1,870 Middle East — — — 3 Rest of World 207 185 404 1,389 Total $ 28,828 $ 20,917 $ 77,627 $ 61,647 Long Lived Assets (1) 6,774 6,464 6,774 6,464 (1) All segment assets are located in the United States.

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2017
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events (a) On October 2, 2017, in recognition of Jay C. Nadel's contribution and dedication in building the Company towards $200 million in value pursuant to his Advisory Agreement dated February 22, 2011 (the "Nadel Agreement"), the Compensation Committee of the Company's Board of Directors (the "Committee"), comprised of independent directors, deemed it in the best interest of the Company and its stockholders and upon recommendation of Richard J. Kurtz, Chairman of the Board and majority stockholder of the Company, granted a stock award to Mr. Nadel, of 3,747,118 shares of Common Stock (the “Nadel Stock Award”), which was approved by the Company’s Board of Directors. The Nadel Stock Award was fully vested as of the date of grant. The transaction was valued and recorded as $2,960,223 (calculated by multiplying the 3,747,118 shares by the $0.79 closing price of the Company's common stock on the date of grant). (b) On October 4, 2017, in recognition of Douglas Kramer’s many years of service and dedication to the Company, together with excellent service in creating value for stockholders, the Committee, comprised of independent directors, deemed it in the best interest of the Company and its stockholders to grant a stock award to Mr. Kramer of 500,000 shares of Common Stock (the “Kramer Stock Award”), which was approved by the Company’s Board of Directors. The Kramer Stock Award was fully vested as of the date of grant. The transaction was valued and recorded as $380,000 (calculated by multiplying the 500,000 shares by the $0.76 closing price of the Company's common stock on the date of grant). (c) On October 4, 2017, the Company entered into a definitive merger agreement with Icynene U.S. Holding Corp. ("Icynene") and Blaze Merger Sub Inc. ("Merger Sub"), pursuant to which Merger Sub will merge with and into the Company, with the Company as the surviving corporation and wholly-owned subsidiary of Icynene. The transaction is valued at approximately $160 million , including net debt. (d) 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)	9 Months Ended
	Sep. 30, 2017
Accounting Policies [Abstract]
Basis of Accounting	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, 2016 , which was filed with the SEC on February 15, 2017, 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, 2016 . There have been no significant changes in the Company’s accounting policies during the three and nine months ended September 30, 2017 . 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.
Recently Adopted Accounting Standards and New Accounting Standards Not Yet Adopted	New Accounting Standards Not Yet Adopted In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09, "Revenue from Contracts with Customers." The ASU will supersede most of the existing revenue recognition requirements in U.S. generally accepted accounting principles ("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 of adopting this guidance. Note 2 - Recent Accounting Pronouncements, continued In February 2016, the FASB issued ASU 2016-02, "Leases: Amendments to the FASB Accounting Standards Codification," which requires companies to recognize all leases as assets and liabilities on the consolidated balance sheet. This ASU retains a distinction between finance leases and operating leases, and the classification criteria for distinguishing between finance leases and operating leases are substantially similar to the classification criteria for distinguishing between capital leases and operating leases in the current accounting literature. The result of retaining a distinction between finance leases and operating leases is that under the lessee accounting model, the effect of leases in a consolidated statement of comprehensive income and a consolidated statement of cash flows is largely unchanged from previous GAAP. The amendments are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Earlier application is permitted. The Company is currently evaluating the impact of adopting this guidance. In August 2016, the FASB issued ASU 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments," which contains amendments designed to make current GAAP clear or provide specific guidance on eight cash flow classification issues relating to how certain cash receipts and cash payments are presented and classified in the statement of cash flows, thereby reducing the current and potential future diversity in practice. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is permitted, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. An entity that elects early adoption must adopt all of the amendments in the same period. The amendments should be applied using a retrospective transition method to each period presented. If it is impracticable to apply the amendments retrospectively for some of the issues, the amendments for those issues would be applied prospectively as of the earliest date practicable. The Company is currently evaluating the impact of adopting this guidance. In January 2017, the FASB issued ASU 2017-04, "Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment," which contains amendments to simplify the subsequent measurement of goodwill. Under the amendments in this ASU, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. The amendments of this ASU are effective for fiscal years beginning after December 15, 2019. The Company is currently evaluating the impact of adopting this guidance. In May 2017, the FASB issued ASU 2017-09, "Compensation - Stock Compensation (Topic 718)," which provides clarity and reduces both (1) diversity in practice and (2) cost and complexity when applying the guidance in Topic 718 to a change to the terms or conditions of a share-based payment award. The amendments in this Update are effective for all entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. The Company is currently evaluating the impact of adopting this guidance. In July 2017, the FASB issued ASU 2017-11, "Earnings Per Share (Topic 260) Distinguishing Liabilities from Equity (Topic 480) Derivatives and Hedging (Topic 815)," which addresses the complexity of accounting for certain financial instruments with down round features. Down round features are features of certain equity-linked instruments (or embedded features) that result in the strike price being reduced on the basis of the pricing of future equity offerings. Current accounting guidance creates cost and complexity for entities that issue financial instruments (such as warrants and convertible instruments) with down round features that require fair value measurement of the entire instrument or conversion option. For public business entities, the amendments in Part I of this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. For all other entities, the amendments in Part I of this Update are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. The Company is currently evaluating the impact of adopting this guidance.

Trade Receivables (Tables)

Trade Receivables (Tables)	9 Months Ended
	Sep. 30, 2017
Receivables [Abstract]
Schedule of Trade Receivables	Trade receivables are comprised of the following (in thousands): September 30, 2017 December 31, 2016 Trade Receivables $ 17,337 $ 12,874 Less: Allowance for Doubtful Accounts (347 ) (366 ) Trade Receivables, Net $ 16,990 $ 12,508

Inventories (Tables)

Inventories (Tables)	9 Months Ended
	Sep. 30, 2017
Inventory Disclosure [Abstract]
Summary of Inventories	The following is a summary of inventories (in thousands): September 30, 2017 December 31, 2016 Raw Materials $ 2,356 $ 2,157 Finished Goods 4,793 4,453 Inventories, Net $ 7,149 $ 6,610

Prepaid Expenses and Other Cu26

Prepaid Expenses and Other Current Assets (Tables)	9 Months Ended
	Sep. 30, 2017
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Summary of Prepaid Expenses and Other Current Assets	The following is a summary of prepaid expenses and other current assets (in thousands): September 30, 2017 December 31, 2016 Prepaid Insurances $ 245 $ 735 Prepaid Marketing 71 181 Prepaid Consulting 68 94 Prepaid Other 1,237 1,064 Total Prepaid Expenses and Other Current Assets $ 1,621 $ 2,074

Property, Plant and Equipment (

Property, Plant and Equipment (Tables)	9 Months Ended
	Sep. 30, 2017
Property, Plant and Equipment [Abstract]
Summary of Property, Plant and Equipment	The following is a summary of property, plant and equipment (in thousands): September 30, 2017 December 31, 2016 Vehicles $ 194 $ 244 Leasehold Improvements 303 269 Office Furniture and Equipment 199 159 Computers and Software 1,108 907 Machinery and Equipment 2,572 2,557 Total Property, Plant and Equipment $ 4,376 $ 4,136 Less: Accumulated Depreciation (3,287 ) (3,151 ) Total Property, Plant and Equipment, Net $ 1,089 $ 985

Goodwill and Other Intangible28

Goodwill and Other Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Summary of Goodwill	The following is a summary of Goodwill (in thousands): September 30, 2017 December 31, 2016 Foam $ 2,932 $ 2,932 Coatings 1,303 1,303 Total Goodwill $ 4,235 $ 4,235
Summary of Other Intangible Assets	The following is a summary of Other Intangible Assets (in thousands): September 30, 2017 December 31, 2016 Gross Amount Accumulated Amortization Net Amount Gross Amount Accumulated Amortization Net Amount Product Formulation $ 138 $ (111 ) $ 27 $ 138 $ (104 ) $ 34 Trade Names 750 (457 ) 293 750 (419 ) 331 Approvals and Certifications 3,926 (2,803 ) 1,123 3,462 (2,647 ) 815 $ 4,814 $ (3,371 ) $ 1,443 $ 4,350 $ (3,170 ) $ 1,180

Deposits and Other Non-Curren29

Deposits and Other Non-Current Assets (Tables)	9 Months Ended
	Sep. 30, 2017
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Summary of Deposits and Other Non-Current Assets	The following is a summary of deposits and other non-current assets (in thousands): September 30, 2017 December 31, 2016 Prepaid Expenses $ 6 $ 8 Other Receivables — 9 Deposits 57 64 Total Deposits and Other Non-Current Assets $ 63 $ 81

Accrued Expenses and Other Cu30

Accrued Expenses and Other Current Liabilities (Tables)	9 Months Ended
	Sep. 30, 2017
Payables and Accruals [Abstract]
Schedule of Accrued Expenses and Other Current Liabilities	The following is a summary of accrued expenses and other current liabilities (in thousands): September 30, 2017 December 31, 2016 Accrued Payroll $ 107 $ 3 Accrued Commissions 176 172 Accrued Inventory Purchases 172 249 Accrued Taxes and Other 2,082 2,011 Accrued Insurance 35 490 Deferred Finance Charge Income 26 13 Total Accrued Expenses and Other Current Liabilities $ 2,598 $ 2,938

Long-Term Debt Long-Term Debt (

Long-Term Debt Long-Term Debt (Tables)	9 Months Ended
	Sep. 30, 2017
Debt Disclosure [Abstract]
Summary of Long-Term Debt	The following is a summary of long-term debt (in thousands): Debt Facility Effective Cash Interest Rate September 30, 2017 December 31, 2016 Line of Credit 3.46% $ 6,000 $ 9,000 Less Debt Issuance Costs (40 ) (55 ) Long-Term Debt, Net $ 5,960 $ 8,945

Net Income (Loss) per Common 32

Net Income (Loss) per Common Share - Basic and Diluted (Tables)	9 Months Ended
	Sep. 30, 2017
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	The computation of the Company’s basic and diluted earnings per share (in thousands, except per share data): For The Three Months Ended For The Nine Months Ended 2017 2016 2017 2016 Income available to common shareholders (A) $ 2,590 $ 1,468 $ 6,154 $ 3,964 Weighted average common shares outstanding (B) 123,544 123,016 123,519 122,654 Dilutive effect of equity incentive plans 1,935 34 (488 ) 1 Weighted average common shares outstanding, assuming dilution (C) 125,479 123,050 123,031 122,655 Basic earnings per common share (A)/(B) $ 0.02 $ 0.01 $ 0.05 $ 0.03 Diluted earnings per common share (A)/(C) $ 0.02 $ 0.01 $ 0.05 $ 0.03

Business Segment and Geograph33

Business Segment and Geographic Area Information (Tables)	9 Months Ended
	Sep. 30, 2017
Segment Reporting [Abstract]
Schedule of Segment Reporting Information, by Segment	Summarized financial information for the reportable segments is as follows (in thousands): Three Months Ended September 30, 2017 2016 Foam Coatings Totals Foam Coatings Totals Sales $ 24,642 $ 4,186 $ 28,828 $ 17,719 $ 3,198 $ 20,917 Depreciation 23 4 27 15 3 18 Amortization of Other Intangible Assets 61 10 71 51 9 60 Interest Expense 21 4 25 147 27 174 Segment Profit 3,502 886 4,388 2,713 541 3,254 Segment Assets (1) 26,830 5,299 32,129 21,315 4,564 25,879 Expenditures for Segment Assets $ 199 $ 34 $ 233 $ (38 ) $ (7 ) $ (45 ) Note 16. Business Segment and Geographic Area Information, continued. Nine Months Ended September 30, 2017 2016 Foam Coatings Totals Foam Coatings Totals Sales $ 66,383 $ 11,244 $ 77,627 $ 52,088 $ 9,559 $ 61,647 Depreciation 55 9 64 59 11 70 Amortization of Other Intangible Assets 165 26 191 160 29 189 Interest Expense 72 12 84 603 112 715 Segment Profit 9,399 2,120 11,519 7,517 1,580 9,097 Segment Assets (1) 26,830 5,299 32,129 21,315 4,564 25,879 Expenditures for Segment Assets $ 395 $ 70 $ 465 $ 112 $ 21 $ 133
Reconciliation of Reportable Segment Profit or Loss	The following are reconciliations of reportable segment profit or loss, and assets, to the Company’s consolidated totals (in thousands): For The Three Months Ended For The Nine Months Ended Profit or Loss 2017 2016 2017 2016 Total Profit or Loss for Reportable Segments $ 4,388 $ 3,254 $ 11,519 $ 9,097 Unallocated Amounts: Corporate Expenses (1,649 ) (1,747 ) (4,880 ) (4,982 ) Income Before Income Taxes $ 2,739 $ 1,507 $ 6,639 $ 4,115
Reconciliation of Assets from Segment to Consolidated	Assets At September 30, 2017 At December 31, 2016 Total Assets for Reportable Segments (1) $ 32,129 $ 27,104 Other Unallocated Amounts (2) 1,712 2,291 Consolidated Total $ 33,841 $ 29,395 (1) Segment assets are the total assets used in the operation of each segment. (2) Includes corporate assets which are principally cash and cash equivalents and deposits.
Summary of Sales and Long-Lived Assets by Geographic Area	Sales and Long-Lived Assets by geographic area are as follows (in thousands): For The Three Months Ended For The Nine Months Ended Sales 2017 2016 2017 2016 United States $ 27,353 $ 19,564 $ 75,051 $ 57,507 Canada 503 247 729 878 Europe 765 921 1,443 1,870 Middle East — — — 3 Rest of World 207 185 404 1,389 Total $ 28,828 $ 20,917 $ 77,627 $ 61,647 Long Lived Assets (1) 6,774 6,464 6,774 6,464 (1) All segment assets are located in the United States.

Dependence on Few Suppliers (De

Dependence on Few Suppliers (Details) - Supplier Concentration Risk [Member] - Purchases [Member] - supplier	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Concentration Risk [Line Items]
Concentration Risk, Number of Suppliers	3	3	3	3
Concentration Risk (percent)	43.00%	43.00%	43.00%	41.00%

Trade Receivables (Details)

Trade Receivables (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Receivables [Abstract]
Trade Receivables	$ 17,337	$ 12,874
Less: Allowance for Doubtful Accounts	(347)	(366)
Trade Receivables, Net	$ 16,990	$ 12,508

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Inventory Disclosure [Abstract]
Raw Materials	$ 2,356	$ 2,157
Finished Goods	4,793	4,453
Inventories, Net	$ 7,149	$ 6,610

Prepaid Expenses and Other Cu37

Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Prepaid Insurances	$ 245	$ 735
Prepaid Marketing	71	181
Prepaid Consulting	68	94
Prepaid Other	1,237	1,064
Total Prepaid Expenses and Other Current Assets	$ 1,621	$ 2,074

Property, Plant and Equipment -

Property, Plant and Equipment - Property, Plant and Equipment (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 4,376	$ 4,136
Less: Accumulated Depreciation	(3,287)	(3,151)
Total Property, Plant and Equipment, Net	1,089	985
Vehicles [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	194	244
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	303	269
Office Furniture and Equipment [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	199	159
Computers and Software [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	1,108	907
Machinery and Equipment [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 2,572	$ 2,557

Goodwill and Other Intangible39

Goodwill and Other Intangible Assets - Goodwill (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Goodwill [Line Items]
Total Goodwill	$ 4,235	$ 4,235
Operating Segments [Member] | Foam [Member]
Goodwill [Line Items]
Total Goodwill	2,932	2,932
Operating Segments [Member] | Coatings [Member]
Goodwill [Line Items]
Total Goodwill	$ 1,303	$ 1,303

Goodwill and Other Intangible40

Goodwill and Other Intangible Assets - Other Intangible Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Finite-Lived Intangible Assets [Line Items]
Gross Amount	$ 4,814	$ 4,350
Accumulated Amortization	(3,371)	(3,170)
Net Amount	1,443	1,180
Product Formulation [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Amount	138	138
Accumulated Amortization	(111)	(104)
Net Amount	27	34
Trade Names [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Amount	750	750
Accumulated Amortization	(457)	(419)
Net Amount	293	331
Approvals and Certifications [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Amount	3,926	3,462
Accumulated Amortization	(2,803)	(2,647)
Net Amount	$ 1,123	$ 815

Deposits and Other Non-Curren41

Deposits and Other Non-Current Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Prepaid Expenses	$ 6	$ 8
Other Receivables	0	9
Deposits	57	64
Total Deposits and Other Non-Current Assets	$ 63	$ 81

Accrued Expenses and Other Cu42

Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Accrued Liabilities and Other Liabilities [Abstract]
Accrued Payroll	$ 107	$ 3
Accrued Commissions	176	172
Accrued Inventory Purchases	172	249
Accrued Taxes and Other	2,082	2,011
Accrued Insurance	35	490
Deferred Finance Charge Income	26	13
Total Accrued Expenses and Other Current Liabilities	$ 2,598	$ 2,938

Long-Term Debt - Summary of Lon

Long-Term Debt - Summary of Long-Term Debt (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
Less Debt Issuance Costs	$ (40)	$ (55)
Long-Term Debt, Net	$ 5,960	8,945
Line of Credit [Member] | Line of Credit [Member]
Debt Instrument [Line Items]
Effective Cash Interest Rate (as a percent)	3.46%
Long-Term Debt	$ 6,000	$ 9,000

Long-Term Debt - Loan Agreement

Long-Term Debt - Loan Agreement (Details) $ in Thousands	Sep. 07, 2016USD ($)covenant	Mar. 31, 2018	Sep. 30, 2017USD ($)	Sep. 07, 2019	Jul. 01, 2019USD ($)	Jan. 01, 2017USD ($)	Dec. 31, 2016USD ($)
Debt Instrument [Line Items]
Amounts outstanding net of deferred financing costs			$ 5,960				$ 8,945
Line of Credit [Member] | Loan Agreement [Member]
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 15,000
Debt instrument term (in years)	3 years
Quarterly decrease in borrowing capacity						$ 250
Number of debt covenants (in covenant) | covenant	2
Financial covenant, minimum asset coverage ratio			1.10
Financial covenant, book value of accounts receivable compared to all borrowings and interest bearing liabilities (percent)	85.00%
Financial covenant, book value of inventory compared to all borrowings and interest bearing liabilities (percent)	55.00%
Financial covenant, book value of plant, property and equipment compared to all borrowings and interest bearing liabilities (percent)	50.00%
Financial covenant, minimum fixed charge coverage ratio	1.20
Amounts outstanding net of deferred financing costs	$ 8,500		$ 6,000
Weighted average interest rate (percent)			2.46%
Remaining borrowing capacity			$ 8,300
Line of Credit [Member] | Loan Agreement [Member] | Daily Floating LIBOR [Member]
Debt Instrument [Line Items]
Interest rate (percent)	2.25%
Line of Credit [Member] | Loan Agreement [Member] | Forecast [Member]
Debt Instrument [Line Items]
Maximum borrowing capacity					$ 12,000
Financial covenant, minimum asset coverage ratio		1.15		1.20

Related Party Transactions (Det

Related Party Transactions (Details) - USD ($)	Jul. 31, 2017	Apr. 06, 2017	Mar. 31, 2017	Jan. 05, 2017	Jan. 01, 2017	Sep. 30, 2017	Dec. 31, 2016
Related Party Transaction [Line Items]
Common Stock, Par Value (usd per share)	$ 0.01					$ 0.01	$ 0.01
Board of Directors Chairman | Purchases Through Affiliated Entities [Member]
Related Party Transaction [Line Items]
Aggregate arm's length transaction purchases						$ 825,000
Board of Directors Chairman | Purchases Through Affiliated Entities [Member] | Minimum [Member]
Related Party Transaction [Line Items]
Ownership interest in purchasing entities						10.00%
Chief Financial Officer [Member]
Related Party Transaction [Line Items]
Related Party Transaction, Annual Base Salary		$ 210,000
Related Party Transaction, Annual Bonus Percentage of Base Salary		25.00%
Related Party Transaction, Annual Bonus Percentage of Base Salary, Increase Option One		30.00%
Related Party Transaction, Annual Bonus Percentage of Base Salary, EBITDA Threshold One		110.00%
Related Party Transaction, Annual Bonus Percentage of Base Salary, Increase Option Two		35.00%
Related Party Transaction, Annual Bonus Percentage of Base Salary, EBITDA Threshold Two		120.00%
Transaction Bonus, Percent		0.25%
Chief Financial Officer [Member] | Minimum [Member]
Related Party Transaction [Line Items]
Related Party Transaction, Annual Bonus Percentage of Base Salary, EBITDA Threshold Three		120.00%
Related Party Transaction, Annual Bonus Percentage of Base Salary, Increase Option Three		35.00%
Vice President [Member]
Related Party Transaction [Line Items]
Related Party Transaction, Annual Base Salary		$ 200,000
Related Party Transaction, Annual Bonus Percentage of Base Salary		25.00%
Related Party Transaction, Annual Bonus Percentage of Base Salary, Increase Option One		30.00%
Related Party Transaction, Annual Bonus Percentage of Base Salary, EBITDA Threshold One		110.00%
Related Party Transaction, Annual Bonus Percentage of Base Salary, Increase Option Two		35.00%
Related Party Transaction, Annual Bonus Percentage of Base Salary, EBITDA Threshold Two		120.00%
Transaction Bonus, Percent		0.50%
Vice President [Member] | Minimum [Member]
Related Party Transaction [Line Items]
Related Party Transaction, Annual Bonus Percentage of Base Salary, EBITDA Threshold Three		120.00%
Related Party Transaction, Annual Bonus Percentage of Base Salary, Increase Option Three		35.00%
Employee Stock Option [Member] | Board of Directors Chairman
Related Party Transaction [Line Items]
Options, grants in period					100,000
Common Stock, Par Value (usd per share)					$ 0.01
Options, intrinsic value					$ 53,000
Share price (usd per share)					$ 0.53
Employee Stock Option [Member] | Director
Related Party Transaction [Line Items]
Share price (usd per share)				$ 0.50
Right to acquire shares (shares)				100,000
Fair value of options vested in the period				$ 191,000
Employee Stock Option [Member] | Vice President [Member]
Related Party Transaction [Line Items]
Expiration period (years)	8 years
Share-based Compensation Award, Tranche One [Member] | Employee Stock Option [Member] | Board of Directors Chairman
Related Party Transaction [Line Items]
Options vested in period (in shares)			25,000
Fair value of options vested in the period			$ 13,000
Share-based Compensation Award, Tranche One [Member] | Employee Stock Option [Member] | Director
Related Party Transaction [Line Items]
Options vested in period (in shares)				33,333
Share-based Compensation Award, Tranche Two [Member] | Employee Stock Option [Member] | Board of Directors Chairman
Related Party Transaction [Line Items]
Options vested in period (in shares)					25,000
Share-based Compensation Award, Tranche Two [Member] | Employee Stock Option [Member] | Director
Related Party Transaction [Line Items]
Options vested in period (in shares)				33,333
Share-based Compensation Award, Tranche Three [Member] | Employee Stock Option [Member] | Board of Directors Chairman
Related Party Transaction [Line Items]
Options vested in period (in shares)					25,000
Share-based Compensation Award, Tranche Three [Member] | Employee Stock Option [Member] | Director
Related Party Transaction [Line Items]
Options vested in period (in shares)				33,334
Share-based Compensation Award, Tranche Four [Member] | Employee Stock Option [Member] | Board of Directors Chairman
Related Party Transaction [Line Items]
Options vested in period (in shares)					25,000

Net Income (Loss) per Common 46

Net Income (Loss) per Common Share - Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Earnings Per Share [Abstract]
Income available to common shareholders	$ 2,590	$ 1,468	$ 6,154	$ 3,964
Weighted average common shares outstanding (shares)	123,544	123,016	123,519	122,654
Dilutive effect of equity incentive plans	$ 1,935	$ 34	$ (488)	$ 1
Weighted average common shares outstanding, assuming dilution (shares)	125,479	123,050	123,031	122,655
Basic earnings per common share (usd per share)	$ 0.02	$ 0.01	$ 0.05	$ 0.03
Diluted earnings per common share (usd per share)	$ 0.02	$ 0.01	$ 0.05	$ 0.03

Net Income (Loss) per Common 47

Net Income (Loss) per Common Share - Basic and Diluted - Narrative (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Out-of-the-money [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (shares)	1,415	1,008	1,415	1,008

Federal and State Income Taxes

Federal and State Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Income Tax Disclosure [Abstract]
Statutory tax rate (percent)			34.00%
Effective tax rate (percent)	5.40%	2.60%	7.30%	3.70%
Income tax expense	$ 149	$ 39	$ 485	$ 151

Securities Transactions (Detail

Securities Transactions (Details) - USD ($) $ / shares in Units, shares in Thousands	Sep. 30, 2017	Jun. 30, 2017	Jul. 31, 2017	Dec. 31, 2016
Common Stock, Par Value (usd per share)	$ 0.01		$ 0.01	$ 0.01
Affiliated Entity [Member]
Common stock issued (shares)	25	25
Common Stock, Par Value (usd per share)	$ 0.01	$ 0.01
Value of common stock issued	$ 13,250	$ 13,250

Business Segment and Geograph50

Business Segment and Geographic Area Information - Reportable Segments (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Segment Reporting Information [Line Items]
Sales	$ 28,828	$ 20,917	$ 77,627	$ 61,647
Depreciation	27	18	64	70
Amortization of Other Intangible Assets	71	60	191	189
Interest Expense	25	174	84	715
Segment Profit	4,388	3,254	11,519	9,097
Segment Assets	32,129	25,879	32,129	25,879
Expenditures for Segment Assets	233	(45)	465	133
Operating Segments [Member] | Foam [Member]
Segment Reporting Information [Line Items]
Sales	24,642	17,719	66,383	52,088
Depreciation	23	15	55	59
Amortization of Other Intangible Assets	61	51	165	160
Interest Expense	21	147	72	603
Segment Profit	3,502	2,713	9,399	7,517
Segment Assets	26,830	21,315	26,830	21,315
Expenditures for Segment Assets	199	(38)	395	112
Operating Segments [Member] | Coatings [Member]
Segment Reporting Information [Line Items]
Sales	4,186	3,198	11,244	9,559
Depreciation	4	3	9	11
Amortization of Other Intangible Assets	10	9	26	29
Interest Expense	4	27	12	112
Segment Profit	886	541	2,120	1,580
Segment Assets	5,299	4,564	5,299	4,564
Expenditures for Segment Assets	$ 34	$ (7)	$ 70	$ 21

Business Segment and Geograph51

Business Segment and Geographic Area Information - Reconciliation of Reportable Segment Profit or Loss (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Segment Reporting [Abstract]
Total Profit or Loss for Reportable Segments	$ 4,388	$ 3,254	$ 11,519	$ 9,097
Corporate Expenses	(1,649)	(1,747)	(4,880)	(4,982)
Income Before Income Taxes	$ 2,739	$ 1,507	$ 6,639	$ 4,115

Business Segment and Geograph52

Business Segment and Geographic Area Information - Reconciliation of Reportable Segment Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Segment Reporting [Abstract]
Total Assets for Reportable Segments	$ 32,129	$ 27,104
Other Unallocated Amounts	1,712	2,291
Consolidated Total	$ 33,841	$ 29,395

Business Segment and Geograph53

Business Segment and Geographic Area Information - Geographic Area Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Revenues from External Customers and Long-Lived Assets [Line Items]
Sales	$ 28,828	$ 20,917	$ 77,627	$ 61,647
Long-Lived Assets	6,774	6,464	6,774	6,464
United States [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Sales	27,353	19,564	75,051	57,507
Canada [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Sales	503	247	729	878
Europe [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Sales	765	921	1,443	1,870
Middle East [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Sales	0	0	0	3
Rest of the World [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Sales	$ 207	$ 185	$ 404	$ 1,389

Subsequent Events (Details)

Subsequent Events (Details) - USD ($)	Oct. 04, 2017	Oct. 02, 2017	Feb. 22, 2011
Common Stock Award | Director
Subsequent Event [Line Items]
Total net worth achievement target for stock award grants			$ 200,000,000
Common Stock Award | Director | Subsequent Event
Subsequent Event [Line Items]
Number of shares issued in a deferred compensation arrangement		3,747,118
Fair value of shares issued		$ 2,960,223
Exercise price of shares issued (dollars per share)		$ 0.79
Common Stock Award | Chief Executive Officer | Subsequent Event
Subsequent Event [Line Items]
Number of shares issued in a deferred compensation arrangement	500,000
Fair value of shares issued	$ 380,000
Exercise price of shares issued (dollars per share)	$ 0.76
Lapolla | Icynene | Subsequent Event
Subsequent Event [Line Items]
Consideration transferred in a merger agreement	$ 160,000,000