Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Mar. 30, 2015 | Jun. 30, 2014 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | SCOTTS LIQUID GOLD INC | ||
Entity Central Index Key | 88000 | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Amendment Flag | FALSE | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | SLGD | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $3,270,618 | ||
Entity Common Stock, Shares Outstanding | 11,576,539 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Income Statement [Abstract] | ||
Net sales | $24,343,600 | $19,292,200 |
Operating costs and expenses: | ||
Cost of sales | 13,691,700 | 10,469,800 |
Advertising | 812,700 | 657,500 |
Selling | 4,848,900 | 4,598,600 |
General and administrative | 2,876,000 | 2,782,200 |
Total operating costs and expenses | 22,229,300 | 18,508,100 |
Income from operations | 2,114,300 | 784,100 |
Rental and other income | 52,200 | 34,000 |
Interest expense | -29,200 | -80,000 |
Income before income taxes | 2,137,300 | 738,100 |
Income tax expense | 43,900 | 94,200 |
Net income | $2,093,400 | $643,900 |
Net income per common share : | ||
Basic | $0.18 | $0.06 |
Diluted | $0.18 | $0.06 |
Weighted average shares outstanding: | ||
Basic | 11,507,944 | 11,251,637 |
Diluted | 11,781,839 | 11,347,418 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Current assets: | ||
Cash and cash equivalents | $5,896,600 | $3,126,200 |
Trade receivables, net | 1,041,100 | 1,182,300 |
Inventories, net | 2,689,700 | 3,211,200 |
Income taxes receivable | 3,700 | 0 |
Prepaid expenses | 346,000 | 269,200 |
Total current assets | 9,977,100 | 7,788,900 |
Property, plant and equipment, net | 400,800 | 518,200 |
Other assets | 51,000 | 51,000 |
Total assets | 10,428,900 | 8,358,100 |
Current liabilities: | ||
Accounts payable | 616,300 | 860,900 |
Accrued payroll and benefits | 665,900 | 553,300 |
Accrued property taxes | 34,200 | 33,400 |
Total current liabilities | 1,316,400 | 1,447,600 |
Total liabilities | 1,316,400 | 1,447,600 |
Commitments and contingencies | ||
Shareholders’ equity: | ||
Common stock; $0.10 par value, authorized 50,000,000 shares; issued and outstanding 11,549,789 shares (2014) and 11,446,800 shares (2013) | 1,155,000 | 1,144,700 |
Capital in excess of par | 5,713,800 | 5,615,500 |
Retained earnings | 2,243,700 | 150,300 |
Total shareholders’ equity | 9,112,500 | 6,910,500 |
Total liabilities and shareholders’ equity | $10,428,900 | $8,358,100 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Statement Of Financial Position [Abstract] | ||
Common stock par value | $0.10 | $0.10 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 11,549,789 | 11,446,800 |
Common stock, shares outstanding | 11,549,789 | 11,446,800 |
Consolidated_Statements_of_Sha
Consolidated Statements of Shareholders' Equity (USD $) | Total | Common Stock | Capital in Excess of Par | Retained Earnings (deficit) |
Beginning Balance, Value at Dec. 31, 2012 | $6,102,700 | $1,093,700 | $5,502,600 | ($493,600) |
Beginning Balance, Shares at Dec. 31, 2012 | 10,937,000 | 10,937,000 | ||
Stock-based compensation, Value | 55,300 | 0 | 55,300 | 0 |
Stock-based compensation, Shares | 0 | |||
Stock options exercised, Value | 108,600 | 51,000 | 57,600 | 0 |
Stock options exercised, Shares | 509,800 | |||
Net income | 643,900 | 0 | 0 | 643,900 |
Ending Balance, Value at Dec. 31, 2013 | 6,910,500 | 1,144,700 | 5,615,500 | 150,300 |
Ending Balance, Shares at Dec. 31, 2013 | 11,446,800 | 11,446,800 | ||
Stock-based compensation, Value | 66,700 | 0 | 66,700 | 0 |
Stock-based compensation, Shares | 0 | |||
Stock options exercised, Value | 41,900 | 10,300 | 31,600 | 0 |
Stock options exercised, Shares | 102,989 | |||
Net income | 2,093,400 | 0 | 0 | 2,093,400 |
Ending Balance, Value at Dec. 31, 2014 | $9,112,500 | $1,155,000 | $5,713,800 | $2,243,700 |
Ending Balance, Shares at Dec. 31, 2014 | 11,549,789 | 11,549,789 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Cash flows from operating activities: | ||
Net income | $2,093,400 | $643,900 |
Adjustment to reconcile net income to net cash provided (used) by operating activities: | ||
Depreciation and amortization | 173,600 | 135,000 |
Stock-based compensation | 66,700 | 55,300 |
Loss on disposal of assets | 800 | 7,200 |
Change in operating assets and liabilities: | ||
Trade receivables | 141,200 | -213,100 |
Inventories | 521,500 | -1,235,400 |
Prepaid expenses and other assets | -76,800 | -98,300 |
Net payments on obligations collateralized by receivables and inventory | 0 | -1,201,400 |
Income taxes receivable | -3,700 | 0 |
Accounts payable and accrued expenses | -131,200 | -680,800 |
Total adjustments to net income | 692,100 | -3,231,500 |
Net Cash Provided (Used) by Operating Activities | 2,785,500 | -2,587,600 |
Cash flows from investing activities: | ||
Proceeds from sale of assets held for sale | 0 | 8,922,600 |
Purchase of property, plant and equipment | -57,000 | -208,000 |
Net Cash (Used) Provided by Investing Activities | -57,000 | 8,714,600 |
Cash flows from financing activities: | ||
Principal payments on long-term debt | 0 | -3,363,300 |
Proceeds from exercise of stock options | 41,900 | 108,600 |
Net Cash Provided (Used) by Financing Activities | 41,900 | -3,254,700 |
Net Increase in Cash and Cash Equivalents | 2,770,400 | 2,872,300 |
Cash and Cash Equivalents, beginning of year | 3,126,200 | 253,900 |
Cash and Cash Equivalents, end of year | 5,896,600 | 3,126,200 |
Supplemental disclosures: | ||
Cash paid during the period for interest | $29,200 | $48,400 |
Organization_and_Summary_of_Si
Organization and Summary of Significant Accounting Policies | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Accounting Policies [Abstract] | ||||||||
Organization and Summary of Significant Accounting Policies | Note 1. Organization and Summary of Significant Accounting Policies | |||||||
(a) | Company Background and Management’s Plans | |||||||
Scott’s Liquid Gold-Inc. (a Colorado corporation) was incorporated on February 15, 1954. Scott’s Liquid Gold-Inc. and its wholly-owned subsidiaries (collectively, the “Company”, “we”, “our”, or “us”) develop, manufacture, market and sell quality household and skin and hair care products. We are also a distributor in the United States of Montagne Jeunesse skin sachets and Batiste Dry Shampoo manufactured by two other companies. Our business is comprised of two segments, household products and skin and hair care products. | ||||||||
(b) | Principles of Consolidation | |||||||
Our consolidated financial statements include our accounts and those of our wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated. | ||||||||
(c) | Use of Estimates | |||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires us to make estimates and assumptions that affect the reported amounts in our financial statements of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include, but are not limited to, the realization of deferred tax assets, reserves for slow moving and obsolete inventory, customer returns and allowances, coupon redemptions and stock-based compensation. Actual results could differ from our estimates. | ||||||||
(d) | Cash Equivalents | |||||||
We consider all highly liquid investments with an original maturity of three months or less at the date of acquisition to be cash equivalents. | ||||||||
(e) | Sale of Accounts Receivable | |||||||
On November 3, 2008, effective as of October 31, 2008, we entered into a financing agreement with Summit for the purpose of providing working capital. The financing agreement with Summit was amended on March 12, 2009, March 16, 2011 (effective March 1, 2011) and on June 29, 2012 (effective July 1, 2012). The agreement has a term that expires on January 1, 2016, but it may be renewed for additional 12 month periods unless either party elects to cancel in writing at least 60 days prior to January 1, 2016 and thereafter on the anniversary date of each 12 month period. | ||||||||
The agreement provides for a factoring line up to $1.5 million and is secured primarily by accounts receivables, inventory, any lease in which we are a lessor and all investment property and guarantees by our active subsidiaries. Under the agreement, Summit will make loans at our request and in its discretion based on: (i) its purchases of our receivables, with recourse against us, at an advance rate of 85% (or such other percentage determined by Summit in its discretion) and (ii) our inventory not to exceed certain amounts, including an aggregate maximum of $500,000. Advances under the agreement have an interest rate of 1.0% over the prime rate (as published in The Wall Street Journal) for the accounts receivables portion of the advances and 2.5% over the prime rate for the inventory portion of the borrowings. At December 31, 2014, the prime rate was 3.25%. | ||||||||
There is also an administrative fee of 0.85% per month on the average monthly outstanding loan on the receivable portion of any advance if the average quarterly loan in the prior quarter was less than or equal to $1,000,000, and 0.75% per month if the average quarterly loan in the prior quarter was greater than $1,000,000 and of 1.0% per month on the average monthly outstanding loan on the inventory portion of any advance. | ||||||||
The agreement provides that neither we nor our active subsidiaries may engage in a change in control transaction without the prior written consent of Summit. Events of default include, but are not limited to, our failure to make a payment when due or a default occurring on any of our other indebtedness. | ||||||||
In 2014, we did not sell any of our accounts receivables to Summit. In 2013, we sold approximately $824,200 of our accounts receivables to Summit for approximately $700,600. As the advance rate on these accounts receivables was 85%, we retained an interest equal to 15% of those accounts receivables. On February 4, 2013, we paid $909,778 to Summit to repay the outstanding balance on our credit line and we have maintained a zero loan balance since that time. At December 31, 2014 and December 31, 2013, the entire credit line of $1.5 million was available for future factoring of accounts receivables invoices and borrowing secured by our inventory. | ||||||||
We report these transactions using the authoritative guidance of the FASB as a secured borrowing rather than as a sale. As a result, affected accounts receivables are reported under the “Current Assets” section within our Consolidated Balance Sheets as “Trade receivables, net.” Similarly, the net liability owing to Summit, if any, appears as “Obligations collateralized by receivables and inventory” within the “Current Liabilities” section of our Consolidated Balance Sheets. Net proceeds received on obligations collateralized by receivables and inventory appear as “net cash (used) provided by operating activities” within the “Adjustment to reconcile net income to net cash used by operating activities” section of our Consolidated Statements of Cash Flow. | ||||||||
On March 16, 2011, with the consent of Summit, we entered into a financing agreement with Wells Fargo for the purpose of further lowering the cost of borrowing associated with the financing of our accounts receivables. Pursuant to this agreement, we may sell accounts receivables from one of our largest customers, Wal-Mart, at a discount to Wells Fargo; provided, however, that Wells Fargo may reject offers to purchase such receivables in its discretion. These receivables may be purchased by Wells Fargo at a cost to us equal to LIBOR plus 1.15% per annum. The LIBOR rate used depends on the days to maturity of the receivables sold, typically ranging from 102 to 105 days. At December 31, 2014, Wells Fargo used the 104-day LIBOR rate of 0.28%. | ||||||||
The agreement has no fixed termination date, but continues unless terminated by either party giving 30 days prior written notice to the other party. In 2014, we sold approximately $4,516,100 of our relevant accounts receivables to Wells Fargo for approximately $4,497,700. In 2013, we sold approximately $4,098,000 of our relevant accounts receivables to Wells Fargo for approximately $4,080,600. The difference between the invoiced amount of the receivables and the cash that we received from Wells Fargo is a cost to us. This cost is in lieu of any cash discount our customer would have been allowed and, thus, is treated in a manner consistent with standard trade discounts granted to our customers. | ||||||||
The reporting of the sale of accounts receivables to Wells Fargo is treated as a sale rather than as a secured borrowing. As a result, affected accounts receivables are relieved from the Company’s financial statements upon receipt of the cash proceeds. | ||||||||
(f) | Inventories | |||||||
Inventories consist of raw materials and finished goods and are stated at the lower of cost (first-in, first-out method) or market. We record a reserve for slow moving and obsolete products and raw materials. We estimate this reserve based upon historical and anticipated sales. Amounts are stated in Note 2. | ||||||||
(g) | Property, Plant and Equipment | |||||||
Property, plant and equipment are recorded at historical cost. Depreciation is provided using the straight-line method over the estimated useful lives of the assets ranging from three to 20 years. Production equipment and production support equipment are estimated to have useful lives of 15 to 20 years and three to 10 years, respectively. Office furniture and office machines are estimated to have useful lives of 10 to 20 and three to five years, respectively. Carpets, drapes and company vehicles are estimated to have useful lives of five to 10 years. Maintenance and repairs are expensed as incurred. Improvements that extend the useful lives of the asset or provide improved efficiency are capitalized. | ||||||||
(h) | Financial Instruments | |||||||
Financial instruments which potentially subject us to concentrations of credit risk include cash and cash equivalents and trade receivables. We maintain our cash balances in the form of bank demand deposits with financial institutions that we believe are creditworthy. As of December 31, 2014, and periodically throughout the year, we have maintained balances in various operating accounts in excess of federally insured limits. We establish an allowance for doubtful accounts based upon factors surrounding the credit risk of specific customers, historical trends and other information. We have no significant financial instruments with off-balance sheet risk of accounting loss, such as foreign exchange contracts, option contracts or other foreign currency hedging arrangements. | ||||||||
The recorded amounts for cash and cash equivalents, receivables, other current assets, accounts payable and accrued expenses approximate fair value due to the short-term nature of these financial instruments. As of December 31, 2014 and December 31, 2013, we had no long-term debt. | ||||||||
(i) | Long-Lived Assets | |||||||
We follow FASB authoritative guidance as it relates to the proper accounting treatment for the impairment or disposal of long-lived assets. This guidance requires that long-lived assets and certain identifiable intangibles be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. | ||||||||
On February 1, 2013, we sold our Property for $9.5 million and received net proceeds of $8.9 million after deducting the expenses for selling the Property. Please see Note 12 for information on the sale of our Property. | ||||||||
(j) | Income Taxes | |||||||
We follow FASB authoritative guidance for the accounting for income taxes which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences attributable to differences between the financial statement carrying amounts of assets and liabilities and their respective income tax bases. A valuation allowance is provided when it is more likely than not that some portion or all of a deferred tax asset will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the period in which related temporary differences become deductible. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. | ||||||||
Taxes are reported based on tax positions that meet a more-likely-than-not standard and that are measured at the amount that is more-likely-than-not to be realized. Differences between financial and tax reporting which do not meet this threshold are required to be recorded as unrecognized tax benefits. We classify penalty and interest expense related to income tax liabilities as an income tax expense. There are no significant interest and penalties recognized in the statement of operations or accrued on the balance sheet. The Company’s information returns for tax years subject to examination by tax authorities include 2011 and 2012 through the current period for state and federal tax reporting purposes, respectively. | ||||||||
(k)Revenue Recognition | ||||||||
Our revenue recognition policy is significant because the amount and timing of revenue is a key component of our results of operations. We follow guidance issued by the FASB, which requires that certain criteria be met in order to recognize revenue. If these criteria are not met, then the associated revenue is deferred until it is met. In our case, the criteria generally are met when we have an arrangement to sell a product, we have delivered the product in accordance with that arrangement, the sales price of the product is determinable and we believe that we will be paid for the sale. | ||||||||
We establish reserves for customer returns of our products and customer allowances. We estimate these reserves based upon, among other things, an assessment of historical trends, information from customers and anticipated returns related to current sales activity. These reserves are established in the period of sale and reduce our revenue in that period. | ||||||||
Our reserve for customer allowances includes primarily reserves for trade promotions to support price features, displays, slotting fees and other merchandising of our products to our customers. The actual level of returns and customer allowances are influenced by several factors, including the promotional efforts of our customers, changes in the mix of our customers, changes in the mix of the products we sell and the maturity of the product. We may change our estimates based on actual results and consideration of other factors that cause returns and allowances. In the event that actual results differ from our estimates, the results of future periods may be impacted. | ||||||||
We also establish reserves for coupons, rebates and certain other promotional programs for consumers. We estimate these reserves based upon, among other things, an assessment of historical trends and current sales activity. These reserves are recorded as a reduction of revenue at the later of the date at which the revenue is recognized or the date at which the sale incentive is offered. | ||||||||
We have also established an allowance for doubtful accounts. We estimate this allowance based upon, among other things, an assessment of the credit risk of specific customers and historical trends. We believe our allowance for doubtful accounts is adequate to absorb any losses which may arise. In the event that actual losses differ from our estimates, the results of future periods may be impacted. | ||||||||
At December 31, 2014 and December 31, 2013 approximately $795,300 and $821,700, respectively, had been reserved for as a reduction of accounts receivables. Trade promotions to our customers and incentives such as coupons and rebates to the consumer are deducted from gross sales and totaled $2,056,300 and $2,036,800 for the years ended December 31, 2014 and 2013, respectively. | ||||||||
(l) | Advertising Costs | |||||||
Advertising costs are expensed as incurred. | ||||||||
(m) | Stock-based Compensation | |||||||
During 2014, we granted options to acquire 250,000 shares of our common stock to one of our executive officers at a price of $0.86 per share, which vest ratably over 60 months, or upon a change in control, and which expire after ten years. In addition, we granted options to acquire 35,000 shares of our common stock to our vice president of marketing at a price of $0.78 per share, options to acquire 2,500 shares of our common stock to an administrative employee at a price of $0.78 per share and options to acquire 60,000 shares of our common stock to two of our non-employee directors at a price of $0.79 per share, all of which vest ratably over 48 months, or upon a change in control, and which expire after five years. Such options were granted at 120% of the market value as of the date of grant. We also granted options to acquire 30,000 shares of our common stock to one of our non-employee directors at a price of $0.79 per share, which vested upon the date of grant, and expire after five years. Such options were also granted at 120% of the market value as of the date of grant. The options granted in 2014 had a weighted average fair market value on the date of grant of $0.56 per share. The weighted average fair market value of the options granted in 2014 were estimated on the date of grant, using a Black-Scholes option pricing model with the assumptions set forth below. | ||||||||
During 2013, we granted: (i) options to acquire 85,000 shares of our common stock to two of our executive officers at a price of $0.41 per share; (ii) an option to acquire 30,000 shares of our common stock to one of our board members at a price of $0.55 per share; (iii) an option to acquire 15,000 shares of our common stock to a regional sales manager at a price of $0.55 per share; (iv) an option to acquire 15,000 shares of our common stock to a regional sales manager at a price of $0.49 per share; and (v) an option to acquire 50,000 shares of our common stock to an executive officer at a price of $0.78 per share. These options which vest ratably over 48 months, or upon a change in control, and which expire after five years, were granted at 120% of the market value as of the date of grant. In addition, during 2013, we granted options to acquire 90,000 shares of our common stock to three of our non-employee directors. These options which vested upon the date of grant, and which expire after five years, were granted at 120% of the market value as of the date of grant. The options granted in 2013 had a weighted average fair market value on the date of grant of $0.30 per share. The weighted average fair market value of the options granted in 2013 were estimated on the date of grant, using a Black-Scholes option pricing model with the assumptions set forth below. | ||||||||
The weighted average fair market value of the options granted in the years ended December 31, 2014 and 2013 were estimated on the date of grant, using a Black-Scholes option pricing model with the following assumptions: | ||||||||
2014 | 2013 | |||||||
Expected life of options (using the “simplified method”) | 4.5 – 5.5 years | 4.5 years | ||||||
Average risk-free interest rate | 1.6%-1.7 | % | 0.8%- 1.5 | % | ||||
Average expected volatility of stock | 121%-128% | % | 137%-141 | % | ||||
Expected dividend rate | None | None | ||||||
Compensation cost related to stock options recognized in operating results (included in general and administrative expenses) under authoritative guidance issued by the FASB was $66,700 and $55,300 for the years ended December 31, 2014 and 2013, respectively. Approximately $242,500 of total unrecognized compensation costs related to non-vested stock options is expected to be recognized over the next 48-60 months, depending on the vesting provisions of the options. In accordance with this same authoritative guidance, there was no tax benefit from recording the non-cash expense as it relates to the options granted to our employees, as these were qualified stock options which are not normally tax deductible. With respect to the non-cash expense associated with the options granted to our non-employee directors, no tax benefit was recognized due to the existence of as yet unutilized net operating losses. At such time as these operating losses have been utilized and a tax benefit is realized from the issuance of non-qualified stock options, a corresponding tax benefit may be recognized. | ||||||||
(n) | Operating Costs and Expenses Classification | |||||||
Cost of sales includes costs associated with manufacturing and distribution including labor, materials, freight-in, purchasing and receiving, quality control, internal transfer costs, repairs, maintenance and other indirect costs, as well as warehousing and distribution costs. We classify shipping and handling costs comprised primarily of freight-out as selling expenses. Other selling expenses consist primarily of wages and benefits for sales and sales support personnel, travel, brokerage commissions and promotional costs, as well as certain other indirect costs. Shipping and handling costs totaled $1,517,500 and $1,461,700, for the years ended December 31, 2014 and 2013, respectively. | ||||||||
General and administrative expenses consist primarily of wages and benefits associated with management and administrative support departments, business insurance costs, professional fees, office facility rent and related expenses and other general support costs. | ||||||||
(o) | Recently Issued Accounting Standards | |||||||
In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”). ASU 2014-09 amends the guidance for revenue recognition to replace numerous industry-specific requirements and converges areas under this topic with those of the International Financial Reporting Standards. The ASU implements a five-step process for customer contract revenue recognition that focuses on transfer of control, as opposed to transfer of risk and rewards. The amendment also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenues and cash flows from contracts and customers. Other major provisions include the capitalization and amortization of certain contract costs, ensuring the time value of money is considered in the transaction price, and allowing estimates of variable consideration to be recognized before contingencies are resolved in certain circumstances. The amendments in this ASU are effective for reporting periods beginning after December 15, 2016, and early adoption is prohibited. Entities can transition to the standard either retrospectively or as a cumulative-effect adjustment as of the date of the adoption. We are currently assessing the impact, if any, that the adoption of ASU 2014-09 will have on our financial statements. | ||||||||
(p)Recently Adopted Accounting Standards | ||||||||
In August 2014, the FASB issued ASU No. 2014-015, “Presentation of Financial Statements - Going Concern” (“ASU 2014-15”). ASU 2014-15 requires management to assess, at each interim and annual reporting period, whether substantial doubt exists about an entity’s ability to continue as a going concern within one year after the date that the financial statements are issued and, when necessary, provide related footnote disclosures. Management’s assessment should be based on relevant conditions and events that are known and reasonably knowable at the date that the financial statements are issued. ASU 2014-15 is effective for fiscal years ending after December 15, 2016, which for the Company means the year ending December 31, 2016; however, early adoption is permitted. The adoption of this guidance did not have a material effect on the Company’s consolidated financial position, results of operations, or cash flows as the Company does not have any substantial doubt about its ability to continue as a going concern. |
Inventories
Inventories | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Inventories | Note 2: Inventories | |||||||
Inventories, consisting of materials, labor and overhead at December 31 were comprised of the following: | ||||||||
2014 | 2013 | |||||||
Finished goods | $ | 1,626,300 | $ | 1,636,500 | ||||
Raw materials | 1,117,800 | 1,621,000 | ||||||
Inventory reserve for obsolescence | (54,400 | ) | (46,300 | ) | ||||
$ | 2,689,700 | $ | 3,211,200 | |||||
Property_Plant_and_Equipment
Property, Plant and Equipment | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Property Plant And Equipment [Abstract] | ||||||||
Property, Plant and Equipment | ||||||||
Note 3: Property, Plant and Equipment | ||||||||
Property, plant and equipment at December 31 were comprised of the following: | ||||||||
2014 | 2013 | |||||||
Production equipment | $ | 5,039,900 | $ | 4,989,900 | ||||
Office furniture and equipment | 778,700 | 794,000 | ||||||
Other | 188,200 | 188,200 | ||||||
6,006,800 | 5,972,100 | |||||||
Less accumulated depreciation | (5,606,000 | ) | (5,453,900 | ) | ||||
$ | 400,800 | $ | 518,200 | |||||
Depreciation expense for the years ended December 31, 2014 and 2013 was $173,600 and $135,000, respectively. Please see Note 12 for information on the sale of our Property. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2014 | |
Debt Disclosure [Abstract] | |
Debt | Note 4: Debt |
On June 28, 2006, we entered into a loan with a fifteen year amortization with Citywide Banks (the “Bank”) for $5,156,600 secured by the land, building and fixtures at our Denver, Colorado facilities and repaid the loan in full at the closing on the sale of our Property on February 1, 2013. | |
Please see Note 1(e) for information on our financing agreements with Summit and Wells Fargo. Note 1(e) also includes a discussion of the accounting treatment of the funds borrowed pursuant to these agreements. |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Income Taxes | Note 5: Income Taxes | |||||||||||
The provision for income tax for the years ended December 31 is as follows: | ||||||||||||
2014 | 2013 | |||||||||||
Current provision (benefit): | ||||||||||||
Federal | $ | 33,900 | $ | 32,800 | ||||||||
State | 10,000 | 61,400 | ||||||||||
Total current provision (benefit) | 43,900 | 94,200 | ||||||||||
Deferred provision (benefit): | ||||||||||||
Federal | 724,700 | 42,600 | ||||||||||
State | 61,800 | 3,800 | ||||||||||
Valuation allowance | (786,500 | ) | -46,400 | |||||||||
Total deferred provision (benefit) | 0 | 0 | ||||||||||
Provision (benefit): | ||||||||||||
Federal | 33,900 | 32,800 | ||||||||||
State | 10,000 | 61,400 | ||||||||||
Total provision (benefit) | $ | 43,900 | $ | 94,200 | ||||||||
Income tax expense (benefit) at the statutory tax rate is reconciled to the overall income tax expense (benefit) as follows: | ||||||||||||
2014 | 2013 | |||||||||||
Federal income tax at statutory rates | $ | 726,700 | $ | 251,000 | ||||||||
State income taxes, net of federal tax effect | 61,900 | 22,500 | ||||||||||
Change in unrecognized benefit | (17,600 | ) | (6,300 | ) | ||||||||
Trade Promotions…………………………………………………………... | 0 | -152,700 | ||||||||||
Other | 59,400 | 26,100 | ||||||||||
Total | 830,400 | 140,600 | ||||||||||
Change in valuation allowance | (786,500 | ) | -46,400 | |||||||||
Provision for income taxes | $ | 43,900 | $ | 94,200 | ||||||||
Deferred income taxes are based on estimated future tax effects of differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amount used for income tax purposes given the provision of enacted tax laws. The net deferred tax assets and liabilities as of December 31, 2014 and 2013 are comprised of the following: | ||||||||||||
2014 | 2013 | |||||||||||
Deferred tax assets: | ||||||||||||
Net operating loss carryforwards | $ | 2,840,800 | $ | 3,647,400 | ||||||||
Tax credit and other carryforwards | 344,800 | 302,500 | ||||||||||
Trade receivables | 178,000 | 160,200 | ||||||||||
Inventories | 28,200 | 26,900 | ||||||||||
Accrued vacation | 35,400 | 87,800 | ||||||||||
Other | 10,300 | 46,100 | ||||||||||
Total deferred taxes | 3,437,500 | 4,270,900 | ||||||||||
Deferred tax liability: | ||||||||||||
Accumulated depreciation for tax purposes | (58,400 | ) | (105,300 | ) | ||||||||
Total deferred tax liabilities | (58,400 | ) | (105,300 | ) | ||||||||
Net deferred tax asset, before allowance | 3,379,100 | 4,165,600 | ||||||||||
Valuation allowance | (3,379,100 | ) | (4,165,600 | ) | ||||||||
Net deferred tax asset | $ | 0 | $ | 0 | ||||||||
At December 31, 2014, we had federal net operating loss carryforwards of approximately $7,043,000 and federal tax credit carryforwards related to research and development efforts of approximately $278,200, both of which expire over a period ending in 2033. At December 31, 2014, there was approximately $66,600 of alternative minimum tax credits which have no expiration period. State tax loss carryforwards at December 31, 2014 are approximately $14,998,600 expiring over a period ending in 2033. | ||||||||||||
A valuation allowance was established due mainly to the uncertainty relating to the future utilization of net operating loss carryforwards. The valuation allowance was decreased by $786,500 for 2014 and decreased by $46,400 for 2013, primarily related to utilization of net operating losses and tax credits for these years. The amount of the deferred tax assets considered realizable could be adjusted in the future based upon changes in circumstances that result in a change in our assessment of our ability to realize those deferred tax assets through the generation of taxable income or other tax events. | ||||||||||||
We adhere to the authoritative guidance with respect to accounting for uncertainty in income taxes. This guidance prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. It requires that we recognize in our consolidated financial statements, only those tax positions that are “more-likely-than-not” of being sustained as of the adoption date, based on the technical merits of the position. As a result of the implementation of this guidance, each year we perform a comprehensive review of our material tax positions. | ||||||||||||
As a result of this review, we identified certain uncertain tax positions that need to be adjusted. As of December 31, 2014 and December 31, 2013, we identified approximately $0 and $395,100 of related tax positions, respectively. | ||||||||||||
2014 | 2013 | |||||||||||
Balance at January 1, | $ | 395,100 | $ | 412,100 | ||||||||
Additions based on tax positions related to current year | 0 | 320,000 | ||||||||||
Reductions for tax positions of prior years or change in valuation | (395,100 | ) | -337,000 | |||||||||
Balance at December 31, | $ | 0 | $ | 395,100 | ||||||||
Due to our net operating loss carryforward position and valuation allowance against our net deferred tax assets, the recognition of the unrecognized tax benefits detailed above would not affect our effective tax rate. We do not expect that the amount of unrecognized benefits will change significantly within the next 12 months. | ||||||||||||
Our policy is to recognize interest and penalties related to uncertain tax benefits in income tax expense. As a result of our net operating loss carryforward position, we have no accrued interest or penalties related to uncertain tax positions as of December 31, 2014 or December 31, 2013. | ||||||||||||
We and our subsidiaries are subject to the following material taxing jurisdictions: United States and Colorado. The tax years that remain open to examination by the Internal Revenue Service are 2011 and years thereafter. However, due to our net operating loss carryforwards from prior periods, the Internal Revenue Service could potentially review the losses back to 2000. The tax years that remain open to examination by the State of Colorado are 2010 and years thereafter. |
Shareholders_Equity
Shareholders' Equity | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Equity [Abstract] | ||||||||||||||||
Shareholders' Equity | Note 6: Shareholders’ Equity | |||||||||||||||
In 2005, we adopted a stock option plan for our employees, officers and directors (the “2005 Plan”). At the Annual Shareholders’ Meeting in May 2011, shareholders approved an amendment to the 2005 Plan to increase the number of shares issuable under the plan from 1,500,000 shares to a total of 3,000,000 shares. Options granted before May 2011 are granted at not less than current market price of the stock on the date of grant and are exercisable from five to ten years from the grant date. Options granted after May 2011, pursuant to the plan amendment in May 2011, are required to be granted at not less than the higher of (1) 120% of current market price on the date of grant or (2) the average of market price over the prior 30 trading days. Except for the grant of 30,000 options to one of our board members in 2014 and the grant of 90,000 options to three of our board members in 2013 that vested upon the date of grant, the options granted in 2014 and 2013 vest each month over 48-60 months or upon a change in control. | ||||||||||||||||
Stock option activity under the 2005 Plan is as follows: | ||||||||||||||||
Number of | Weighted Average | Weighted Average Remaining Contractual | Aggregate Intrinsic Value | |||||||||||||
Options | Exercise Price | Life | ||||||||||||||
Maximum number of shares under the plan | 3,000,000 | |||||||||||||||
Outstanding, December 31, 2012 | 1,263,350 | $ | 0.22 | 2.1 years | $ | 73,600 | ||||||||||
Granted in 2013 | 285,000 | 0.52 | ||||||||||||||
Exercised in 2013 | (509,830 | ) | 0.21 | |||||||||||||
Cancelled/Expired in 2013 | (344,000 | ) | 0.21 | |||||||||||||
Outstanding, December 31, 2013 | 694,520 | $ | 0.35 | 3.1 years | $ | 211,100 | ||||||||||
Granted in 2014 | 377,500 | 0.84 | ||||||||||||||
Exercised in 2014 | (102,958 | ) | 0.41 | |||||||||||||
Cancelled/Expired in 2014 | (50,093 | ) | 0.51 | |||||||||||||
Outstanding, December 31, 2014 | 918,969 | $ | 0.53 | 4.4 years | $ | 374,600 | ||||||||||
Exercisable, December 31, 2014 | 442,414 | $ | 0.33 | 2.0 years | $ | 269,800 | ||||||||||
Available for issuance, December 31, 2014 | 2,081,031 | |||||||||||||||
A summary of the status of non-vested shares underlying the options outstanding as of December 31, 2014 under the 2005 Plan is as follows: | ||||||||||||||||
Number of | Weighted Average | |||||||||||||||
Options | Exercise Price | |||||||||||||||
Non-vested, December 31, 2012 | 445,192 | $ | 0.22 | |||||||||||||
Granted in 2013 | 285,000 | 0.52 | ||||||||||||||
Vested in 2013 | (304,844 | ) | 0.21 | |||||||||||||
Cancelled/Expired in 2013 | (110,663 | ) | 0.21 | |||||||||||||
Non-vested, December 31, 2013 | 314,685 | $ | 0.35 | |||||||||||||
Granted in 2014 | 377,500 | 0.84 | ||||||||||||||
Vested in 2014 | (194,214 | ) | 0.41 | |||||||||||||
Cancelled/Expired in 2014 | (21,416 | ) | 0.51 | |||||||||||||
Non-vested, December 31, 2014 | 476,555 | $ | 0.53 | |||||||||||||
A summary of additional information related to the options outstanding as of December 31, 2014 under the 2005 Plan is as follows: | ||||||||||||||||
Range of Exercise Prices | Number of Options | Weighted Average Remaining Contractual | Weighted Average Exercise | |||||||||||||
Life | Price | |||||||||||||||
$0.17-$0.39 | 353,525 | 1.2 years | $ | 0.23 | ||||||||||||
1.2 years | ||||||||||||||||
$0.40-$0.62 | 167,944 | 3.4 years | $ | 0.45 | ||||||||||||
$0.63-$0.86 | 397,500 | 7.7 years | $ | 0.83 | ||||||||||||
Total | 918,969 | 4.4 years | $ | 0.53 | ||||||||||||
We have an Employee Stock Ownership Plan (“Plan”) to provide retirement benefits for our employees. The Plan is designed to invest primarily in our common stock and is non-contributory on the part of our employees. Contributions to the Plan are discretionary as determined by our Board of Directors. We expense the cost of contributions to the Plan. No contributions were made to the Plan in 2014 or 2013. At December 31, 2014 and 2013, a total of 830,682 and 860,053 shares of our common stock, respectively, have been allocated and earned by our employees. |
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Earnings Per Share [Abstract] | ||||||||
Earnings Per Share | Note 7: Earnings per Share | |||||||
We present basic and diluted earnings per share in accordance with authoritative guidance which establishes standards for computing and presenting basic and diluted earnings per share. Per share data is determined by using the weighted average number of common shares outstanding. Common equivalent shares are considered only for diluted earnings per share, unless considered anti-dilutive. Common equivalent shares, determined using the treasury stock method, result from stock options with exercise prices that are below the average market price of the common stock. | ||||||||
Basic earnings per share include no dilution and are computed by dividing income available to common shareholders by the weighted-average number of shares outstanding during the period. Diluted earnings per share reflect the potential of securities that could share in our earnings. There were common stock equivalents of 427,500 and 106,778 shares outstanding at December 31, 2014 and 2013, respectively, consisting of stock options that were not included in the calculation of earnings per share because they would have been anti-dilutive. | ||||||||
A reconciliation of the weighted average number of common shares outstanding for the years ended December 31 is as follows: | ||||||||
2014 | 2013 | |||||||
Common shares outstanding, beginning of the year | 11,446,800 | 10,937,000 | ||||||
Weighted average common shares issued | 61,144 | 314,637 | ||||||
Weighted average number of common shares outstanding | 11,507,944 | 11,251,637 | ||||||
Dilutive effect of common share equivalents | 273,895 | 95,781 | ||||||
Diluted weighted average number of common shares outstanding | 11,781,839 | 11,347,418 | ||||||
We have authorized 20,000,000 shares of preferred stock issuable in one or more series, none of which are issued or outstanding as of December 31, 2014. |
Segment_Information
Segment Information | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||
Segment Information | Note 8: Segment Information | |||||||||||||||
We operate in two different segments: household products and skin and hair care products. Our products are sold nationally and internationally (primarily Canada), directly through our sales force and indirectly through independent brokers and manufacturer’s representatives, to mass merchandisers, drugstores, supermarkets, hardware stores and other retail outlets and to wholesale distributors. Management has chosen to organize our business around these segments based on differences in the products sold. | ||||||||||||||||
Accounting policies for our segments are the same as those described in Note 1. We evaluate segment performance based on segment income or loss before income taxes. | ||||||||||||||||
The following provides information on our segments as of and for the years ended December 31: | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Household | Skin and Hair | Household | Skin and Hair | |||||||||||||
Products | Care Products | Products | Care Products | |||||||||||||
Net sales to external customers | $ | 5,890,200 | $ | 18,453,400 | $ | 5,335,500 | $ | 13,956,700 | ||||||||
(Loss) income before income taxes | $ | (666,200 | ) | $ | 2,803,500 | $ | (990,900 | ) | $ | 1,729,000 | ||||||
Identifiable assets | $ | 4,119,400 | $ | 3,471,800 | $ | 3,514,000 | $ | 3,733,800 | ||||||||
The following is a reconciliation of segment information to consolidated information: | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Net sales to external customers | $ | 24,343,600 | $ | 19,292,200 | ||||||||||||
Income before income taxes | $ | 2,137,300 | $ | 738,100 | ||||||||||||
Consolidated income before income taxes | $ | 2,137,300 | $ | 738,100 | ||||||||||||
Identifiable assets | $ | 7,591,200 | $ | 7,247,800 | ||||||||||||
Corporate assets | 2,837,700 | 1,110,300 | ||||||||||||||
Consolidated total assets | $ | 10,428,900 | $ | 8,358,100 | ||||||||||||
Corporate assets noted above are comprised primarily of our cash and property and equipment not directly associated with manufacturing, warehousing, shipping and receiving activities. | ||||||||||||||||
We attribute our net sales to different geographic areas based on the location of the customer. All of our long-lived assets are located in the United States. For the year ended December 31, revenues for each geographical area are as follows: | ||||||||||||||||
2014 | 2013 | |||||||||||||||
United States | $ | 24,236,000 | $ | 19,190,300 | ||||||||||||
Foreign countries | 107,600 | 101,900 | ||||||||||||||
Total net sales | $ | 24,343,600 | $ | 19,292,200 | ||||||||||||
In 2014 and 2013, Ulta accounted for approximately $4,741,400 and $3,253,400, respectively, of our consolidated net sales and Wal-Mart accounted for approximately $4,409,600 and $4,130,300, respectively, of our consolidated net sales. We sell both household products and skin and hair care products to Wal-Mart, but we sell only skin and hair care products to Ulta. These customers are not related to us. | ||||||||||||||||
The outstanding trade receivables from Ulta accounted for 19.5% and 20.9% of our total trade receivables at December 31, 2014 and 2013, respectively. The outstanding trade receivables from Wal-Mart accounted for 14.0% and 13.7% of our total trade receivables at December 31, 2014 and 2013, respectively. A loss of one or both of these customers could have a material adverse effect on us because it is uncertain whether our consumer base served by these customers would purchase our products at other retail outlets. No long-term contracts exist between us and these customers or any other customer. |
Retirement_Plans
Retirement Plans | 12 Months Ended |
Dec. 31, 2014 | |
Compensation And Retirement Disclosure [Abstract] | |
Retirement Plans | Note 9: Retirement Plans |
We have a 401(k) Profit Sharing Plan (“401(k) Plan”) covering our full-time employees who have completed four months of service as defined in the 401(k) Plan, and are age 18 or older. Participants may defer up to 75% of their compensation up to the maximum limit determined by law. We may make discretionary “matching” contributions up to a maximum of 6% of each participant’s compensation, but only for those employees earning no more than $35,000 annually. Additionally, we can make discretionary “profit sharing” contributions to eligible employees. Participants are always fully vested in their contributions, matching contributions and allocated earnings thereon. Vesting in our profit sharing contribution is based on years of service, with a participant fully vested after five years. Our Company matching contributions totaled $4,300 and $3,500, in 2014 and 2013, respectively. We made no discretionary profit sharing contributions in 2014 or 2013. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2014 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | |
Note 10. Commitments and Contingencies | |
Leases | |
In connection with the sale of our Property on February 1, 2013, we entered into a lease with the purchaser for approximately 16,078 square feet of office space (the “Office Lease”) and approximately 113,620 square feet of manufacturing and warehouse space (the “Warehouse Lease”). Annual rental expense under the Office Lease and Warehouse Lease for 2014 was $214,800 and $379,400, respectively. Annual rental expense under the Office Lease and Warehouse Lease for 2013 was $191,600 and $338,500, respectively. Minimum annual rental payments under the Office Lease are approximately $221,200 and $18,500 for the years ending December 31, 2015 and 2016, respectively. Minimum annual rental payments under the Warehouse Lease are approximately $390,800 and $32,600 for the years ending December 31, 2015, and 2016 respectively. See Note 12 for information on the terms of the Office Lease and the Warehouse Lease. | |
We have entered into various operating lease agreements, primarily for office equipment. Annual rental expense under these leases totaled $50,300 and $78,500 in 2014 and 2013, respectively. Minimum annual rental payments under noncancellable operating leases are approximately $46,700, $33,700 and $19,900 for the years ending December 31, 2015, 2016 and 2017, respectively. Presently we have no lease commitments beyond 2017. | |
In connection with the sale of our Property on February 1, 2013, we assigned the following leases to the purchaser. In October 2009, we entered into a five-year operating lease agreement for one floor of our five-story office building to an established subsidiary of an international company. We began to receive rent payments in November 2009 that would have continued through October 2014. In September of 2012, we entered into a lease expiring December 31, 2015 for one-half of a floor of our office building. We began to receive rent payments in November 2012. In December of 2012, we entered into a lease expiring March 31, 2016 for one of our warehouse buildings. Rent payments started in May 2013. |
Valuation_and_Qualifying_Accou
Valuation and Qualifying Accounts | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Valuation And Qualifying Accounts [Abstract] | ||||||||||||||||
Valuation and Qualifying Accounts | Note 11. Valuation and Qualifying Accounts | |||||||||||||||
Balance at | Additions | Deductions | Balance at | |||||||||||||
beginning | charged to | end of | ||||||||||||||
of year | expense | year | ||||||||||||||
Year ended December 31, 2013 | ||||||||||||||||
Returns and allowances and doubtful accounts reserve | $ | 468,400 | $ | 2,039,300 | $ | 1,686,000 | $ | 821,700 | ||||||||
Year ended December 31, 2014 | ||||||||||||||||
Returns and allowances and doubtful accounts reserve | $ | 821,700 | $ | 2,056,300 | $ | 2,082,700 | $ | 795,300 | ||||||||
Sale_of_Property
Sale of Property | 12 Months Ended |
Dec. 31, 2014 | |
Leases [Abstract] | |
Sale of Property | Note 12. Sale of Property |
On February 1, 2013, we consummated the sale of our Property located at 4880 Havana Street, Denver, Colorado, consisting of approximately 10.8 acres of land improved with four buildings containing approximately 241,684 square feet of office, warehouse, and manufacturing space, with associated improvements and personal property, and adjacent vacant land of approximately 5.5 acres. We sold the Property for a purchase price of $9,500,000 and incurred selling expenses of $579,800, including $570,000 for real estate brokerage commissions. | |
In connection with the sale, we entered into the Office Lease with the purchaser to lease approximately 16,078 square feet of office space and entered into the Warehouse Lease to lease approximately 113,620 square feet of manufacturing and warehouse space currently used by us. Each of the Office Lease and the Warehouse Lease has an initial term of three years, with options to extend the term for two additional terms of three years each. Rent for the Office Lease is $13.00 per square foot per annum, with annual 3% increases. Rent for the Warehouse Lease is $3.25 per square foot per annum, with annual 3% increases, and we will pay an additional $1.25 per square foot per annum as our share of the purchaser’s operating expenses under the Warehouse Lease (including taxes, insurance and common area maintenance charges). If certain uncontrollable operating expenses increase by more than 5% per year, our share of operating expenses under the Warehouse Lease may be increased. | |
As of the date of the closing, the principal and interest balance on our long-term debt secured by the Property with the Bank was $3,373,961. This debt was repaid in full at closing. We also paid approximately $202,000 at closing for real estate property taxes for 2012. In addition, on February 4, 2013, we paid $909,778 to Summit to repay the outstanding balance on our credit line with Summit and we have maintained a zero loan balance since that time. We made this payment to reduce our interest costs. Please see Note 1(e) for information on our financing agreement with Summit. Also, in February 2013, we paid certain other financial obligations to suppliers and vendors in the amount of approximately $960,000 and we incurred approximately $150,000 in capital expenditures as a result of the sale of our Property. |
Organization_and_Summary_of_Si1
Organization and Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Accounting Policies [Abstract] | ||||||||
Principles of Consolidation | (b) | Principles of Consolidation | ||||||
Our consolidated financial statements include our accounts and those of our wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated. | ||||||||
Use of Estimates | (c) | Use of Estimates | ||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires us to make estimates and assumptions that affect the reported amounts in our financial statements of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include, but are not limited to, the realization of deferred tax assets, reserves for slow moving and obsolete inventory, customer returns and allowances, coupon redemptions and stock-based compensation. Actual results could differ from our estimates. | ||||||||
Cash Equivalents | (d) | Cash Equivalents | ||||||
We consider all highly liquid investments with an original maturity of three months or less at the date of acquisition to be cash equivalents. | ||||||||
Sale of Accounts Receivable | (e) | Sale of Accounts Receivable | ||||||
On November 3, 2008, effective as of October 31, 2008, we entered into a financing agreement with Summit for the purpose of providing working capital. The financing agreement with Summit was amended on March 12, 2009, March 16, 2011 (effective March 1, 2011) and on June 29, 2012 (effective July 1, 2012). The agreement has a term that expires on January 1, 2016, but it may be renewed for additional 12 month periods unless either party elects to cancel in writing at least 60 days prior to January 1, 2016 and thereafter on the anniversary date of each 12 month period. | ||||||||
The agreement provides for a factoring line up to $1.5 million and is secured primarily by accounts receivables, inventory, any lease in which we are a lessor and all investment property and guarantees by our active subsidiaries. Under the agreement, Summit will make loans at our request and in its discretion based on: (i) its purchases of our receivables, with recourse against us, at an advance rate of 85% (or such other percentage determined by Summit in its discretion) and (ii) our inventory not to exceed certain amounts, including an aggregate maximum of $500,000. Advances under the agreement have an interest rate of 1.0% over the prime rate (as published in The Wall Street Journal) for the accounts receivables portion of the advances and 2.5% over the prime rate for the inventory portion of the borrowings. At December 31, 2014, the prime rate was 3.25%. | ||||||||
There is also an administrative fee of 0.85% per month on the average monthly outstanding loan on the receivable portion of any advance if the average quarterly loan in the prior quarter was less than or equal to $1,000,000, and 0.75% per month if the average quarterly loan in the prior quarter was greater than $1,000,000 and of 1.0% per month on the average monthly outstanding loan on the inventory portion of any advance. | ||||||||
The agreement provides that neither we nor our active subsidiaries may engage in a change in control transaction without the prior written consent of Summit. Events of default include, but are not limited to, our failure to make a payment when due or a default occurring on any of our other indebtedness. | ||||||||
In 2014, we did not sell any of our accounts receivables to Summit. In 2013, we sold approximately $824,200 of our accounts receivables to Summit for approximately $700,600. As the advance rate on these accounts receivables was 85%, we retained an interest equal to 15% of those accounts receivables. On February 4, 2013, we paid $909,778 to Summit to repay the outstanding balance on our credit line and we have maintained a zero loan balance since that time. At December 31, 2014 and December 31, 2013, the entire credit line of $1.5 million was available for future factoring of accounts receivables invoices and borrowing secured by our inventory. | ||||||||
We report these transactions using the authoritative guidance of the FASB as a secured borrowing rather than as a sale. As a result, affected accounts receivables are reported under the “Current Assets” section within our Consolidated Balance Sheets as “Trade receivables, net.” Similarly, the net liability owing to Summit, if any, appears as “Obligations collateralized by receivables and inventory” within the “Current Liabilities” section of our Consolidated Balance Sheets. Net proceeds received on obligations collateralized by receivables and inventory appear as “net cash (used) provided by operating activities” within the “Adjustment to reconcile net income to net cash used by operating activities” section of our Consolidated Statements of Cash Flow. | ||||||||
On March 16, 2011, with the consent of Summit, we entered into a financing agreement with Wells Fargo for the purpose of further lowering the cost of borrowing associated with the financing of our accounts receivables. Pursuant to this agreement, we may sell accounts receivables from one of our largest customers, Wal-Mart, at a discount to Wells Fargo; provided, however, that Wells Fargo may reject offers to purchase such receivables in its discretion. These receivables may be purchased by Wells Fargo at a cost to us equal to LIBOR plus 1.15% per annum. The LIBOR rate used depends on the days to maturity of the receivables sold, typically ranging from 102 to 105 days. At December 31, 2014, Wells Fargo used the 104-day LIBOR rate of 0.28%. | ||||||||
The agreement has no fixed termination date, but continues unless terminated by either party giving 30 days prior written notice to the other party. In 2014, we sold approximately $4,516,100 of our relevant accounts receivables to Wells Fargo for approximately $4,497,700. In 2013, we sold approximately $4,098,000 of our relevant accounts receivables to Wells Fargo for approximately $4,080,600. The difference between the invoiced amount of the receivables and the cash that we received from Wells Fargo is a cost to us. This cost is in lieu of any cash discount our customer would have been allowed and, thus, is treated in a manner consistent with standard trade discounts granted to our customers. | ||||||||
The reporting of the sale of accounts receivables to Wells Fargo is treated as a sale rather than as a secured borrowing. As a result, affected accounts receivables are relieved from the Company’s financial statements upon receipt of the cash proceeds. | ||||||||
Inventories | (f) | Inventories | ||||||
Inventories consist of raw materials and finished goods and are stated at the lower of cost (first-in, first-out method) or market. We record a reserve for slow moving and obsolete products and raw materials. We estimate this reserve based upon historical and anticipated sales. Amounts are stated in Note 2. | ||||||||
Property, Plant and Equipment | (g) | Property, Plant and Equipment | ||||||
Property, plant and equipment are recorded at historical cost. Depreciation is provided using the straight-line method over the estimated useful lives of the assets ranging from three to 20 years. Production equipment and production support equipment are estimated to have useful lives of 15 to 20 years and three to 10 years, respectively. Office furniture and office machines are estimated to have useful lives of 10 to 20 and three to five years, respectively. Carpets, drapes and company vehicles are estimated to have useful lives of five to 10 years. Maintenance and repairs are expensed as incurred. Improvements that extend the useful lives of the asset or provide improved efficiency are capitalized. | ||||||||
Financial Instruments | (h) | Financial Instruments | ||||||
Financial instruments which potentially subject us to concentrations of credit risk include cash and cash equivalents and trade receivables. We maintain our cash balances in the form of bank demand deposits with financial institutions that we believe are creditworthy. As of December 31, 2014, and periodically throughout the year, we have maintained balances in various operating accounts in excess of federally insured limits. We establish an allowance for doubtful accounts based upon factors surrounding the credit risk of specific customers, historical trends and other information. We have no significant financial instruments with off-balance sheet risk of accounting loss, such as foreign exchange contracts, option contracts or other foreign currency hedging arrangements. | ||||||||
The recorded amounts for cash and cash equivalents, receivables, other current assets, accounts payable and accrued expenses approximate fair value due to the short-term nature of these financial instruments. As of December 31, 2014 and December 31, 2013, we had no long-term debt. | ||||||||
Long-Lived Assets | (i) | Long-Lived Assets | ||||||
We follow FASB authoritative guidance as it relates to the proper accounting treatment for the impairment or disposal of long-lived assets. This guidance requires that long-lived assets and certain identifiable intangibles be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. | ||||||||
On February 1, 2013, we sold our Property for $9.5 million and received net proceeds of $8.9 million after deducting the expenses for selling the Property. Please see Note 12 for information on the sale of our Property. | ||||||||
Income Taxes | (j) | Income Taxes | ||||||
We follow FASB authoritative guidance for the accounting for income taxes which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences attributable to differences between the financial statement carrying amounts of assets and liabilities and their respective income tax bases. A valuation allowance is provided when it is more likely than not that some portion or all of a deferred tax asset will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the period in which related temporary differences become deductible. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. | ||||||||
Taxes are reported based on tax positions that meet a more-likely-than-not standard and that are measured at the amount that is more-likely-than-not to be realized. Differences between financial and tax reporting which do not meet this threshold are required to be recorded as unrecognized tax benefits. We classify penalty and interest expense related to income tax liabilities as an income tax expense. There are no significant interest and penalties recognized in the statement of operations or accrued on the balance sheet. The Company’s information returns for tax years subject to examination by tax authorities include 2011 and 2012 through the current period for state and federal tax reporting purposes, respectively. | ||||||||
Revenue Recognition | (k)Revenue Recognition | |||||||
Our revenue recognition policy is significant because the amount and timing of revenue is a key component of our results of operations. We follow guidance issued by the FASB, which requires that certain criteria be met in order to recognize revenue. If these criteria are not met, then the associated revenue is deferred until it is met. In our case, the criteria generally are met when we have an arrangement to sell a product, we have delivered the product in accordance with that arrangement, the sales price of the product is determinable and we believe that we will be paid for the sale. | ||||||||
We establish reserves for customer returns of our products and customer allowances. We estimate these reserves based upon, among other things, an assessment of historical trends, information from customers and anticipated returns related to current sales activity. These reserves are established in the period of sale and reduce our revenue in that period. | ||||||||
Our reserve for customer allowances includes primarily reserves for trade promotions to support price features, displays, slotting fees and other merchandising of our products to our customers. The actual level of returns and customer allowances are influenced by several factors, including the promotional efforts of our customers, changes in the mix of our customers, changes in the mix of the products we sell and the maturity of the product. We may change our estimates based on actual results and consideration of other factors that cause returns and allowances. In the event that actual results differ from our estimates, the results of future periods may be impacted. | ||||||||
We also establish reserves for coupons, rebates and certain other promotional programs for consumers. We estimate these reserves based upon, among other things, an assessment of historical trends and current sales activity. These reserves are recorded as a reduction of revenue at the later of the date at which the revenue is recognized or the date at which the sale incentive is offered. | ||||||||
We have also established an allowance for doubtful accounts. We estimate this allowance based upon, among other things, an assessment of the credit risk of specific customers and historical trends. We believe our allowance for doubtful accounts is adequate to absorb any losses which may arise. In the event that actual losses differ from our estimates, the results of future periods may be impacted. | ||||||||
At December 31, 2014 and December 31, 2013 approximately $795,300 and $821,700, respectively, had been reserved for as a reduction of accounts receivables. Trade promotions to our customers and incentives such as coupons and rebates to the consumer are deducted from gross sales and totaled $2,056,300 and $2,036,800 for the years ended December 31, 2014 and 2013, respectively. | ||||||||
Advertising Costs | (l) | Advertising Costs | ||||||
Advertising costs are expensed as incurred. | ||||||||
Stock-based Compensation | (m) | Stock-based Compensation | ||||||
During 2014, we granted options to acquire 250,000 shares of our common stock to one of our executive officers at a price of $0.86 per share, which vest ratably over 60 months, or upon a change in control, and which expire after ten years. In addition, we granted options to acquire 35,000 shares of our common stock to our vice president of marketing at a price of $0.78 per share, options to acquire 2,500 shares of our common stock to an administrative employee at a price of $0.78 per share and options to acquire 60,000 shares of our common stock to two of our non-employee directors at a price of $0.79 per share, all of which vest ratably over 48 months, or upon a change in control, and which expire after five years. Such options were granted at 120% of the market value as of the date of grant. We also granted options to acquire 30,000 shares of our common stock to one of our non-employee directors at a price of $0.79 per share, which vested upon the date of grant, and expire after five years. Such options were also granted at 120% of the market value as of the date of grant. The options granted in 2014 had a weighted average fair market value on the date of grant of $0.56 per share. The weighted average fair market value of the options granted in 2014 were estimated on the date of grant, using a Black-Scholes option pricing model with the assumptions set forth below. | ||||||||
During 2013, we granted: (i) options to acquire 85,000 shares of our common stock to two of our executive officers at a price of $0.41 per share; (ii) an option to acquire 30,000 shares of our common stock to one of our board members at a price of $0.55 per share; (iii) an option to acquire 15,000 shares of our common stock to a regional sales manager at a price of $0.55 per share; (iv) an option to acquire 15,000 shares of our common stock to a regional sales manager at a price of $0.49 per share; and (v) an option to acquire 50,000 shares of our common stock to an executive officer at a price of $0.78 per share. These options which vest ratably over 48 months, or upon a change in control, and which expire after five years, were granted at 120% of the market value as of the date of grant. In addition, during 2013, we granted options to acquire 90,000 shares of our common stock to three of our non-employee directors. These options which vested upon the date of grant, and which expire after five years, were granted at 120% of the market value as of the date of grant. The options granted in 2013 had a weighted average fair market value on the date of grant of $0.30 per share. The weighted average fair market value of the options granted in 2013 were estimated on the date of grant, using a Black-Scholes option pricing model with the assumptions set forth below. | ||||||||
The weighted average fair market value of the options granted in the years ended December 31, 2014 and 2013 were estimated on the date of grant, using a Black-Scholes option pricing model with the following assumptions: | ||||||||
2014 | 2013 | |||||||
Expected life of options (using the “simplified method”) | 4.5 – 5.5 years | 4.5 years | ||||||
Average risk-free interest rate | 1.6%-1.7 | % | 0.8%- 1.5 | % | ||||
Average expected volatility of stock | 121%-128% | % | 137%-141 | % | ||||
Expected dividend rate | None | None | ||||||
Compensation cost related to stock options recognized in operating results (included in general and administrative expenses) under authoritative guidance issued by the FASB was $66,700 and $55,300 for the years ended December 31, 2014 and 2013, respectively. Approximately $242,500 of total unrecognized compensation costs related to non-vested stock options is expected to be recognized over the next 48-60 months, depending on the vesting provisions of the options. In accordance with this same authoritative guidance, there was no tax benefit from recording the non-cash expense as it relates to the options granted to our employees, as these were qualified stock options which are not normally tax deductible. With respect to the non-cash expense associated with the options granted to our non-employee directors, no tax benefit was recognized due to the existence of as yet unutilized net operating losses. At such time as these operating losses have been utilized and a tax benefit is realized from the issuance of non-qualified stock options, a corresponding tax benefit may be recognized. | ||||||||
Operating Costs and Expenses Classification | (n) | Operating Costs and Expenses Classification | ||||||
Cost of sales includes costs associated with manufacturing and distribution including labor, materials, freight-in, purchasing and receiving, quality control, internal transfer costs, repairs, maintenance and other indirect costs, as well as warehousing and distribution costs. We classify shipping and handling costs comprised primarily of freight-out as selling expenses. Other selling expenses consist primarily of wages and benefits for sales and sales support personnel, travel, brokerage commissions and promotional costs, as well as certain other indirect costs. Shipping and handling costs totaled $1,517,500 and $1,461,700, for the years ended December 31, 2014 and 2013, respectively. | ||||||||
General and administrative expenses consist primarily of wages and benefits associated with management and administrative support departments, business insurance costs, professional fees, office facility rent and related expenses and other general support costs. | ||||||||
Recently Issued Accounting Standards | (o) | Recently Issued Accounting Standards | ||||||
In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”). ASU 2014-09 amends the guidance for revenue recognition to replace numerous industry-specific requirements and converges areas under this topic with those of the International Financial Reporting Standards. The ASU implements a five-step process for customer contract revenue recognition that focuses on transfer of control, as opposed to transfer of risk and rewards. The amendment also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenues and cash flows from contracts and customers. Other major provisions include the capitalization and amortization of certain contract costs, ensuring the time value of money is considered in the transaction price, and allowing estimates of variable consideration to be recognized before contingencies are resolved in certain circumstances. The amendments in this ASU are effective for reporting periods beginning after December 15, 2016, and early adoption is prohibited. Entities can transition to the standard either retrospectively or as a cumulative-effect adjustment as of the date of the adoption. We are currently assessing the impact, if any, that the adoption of ASU 2014-09 will have on our financial statements. | ||||||||
Recently Adopted Accounting Standards | (p)Recently Adopted Accounting Standards | |||||||
In August 2014, the FASB issued ASU No. 2014-015, “Presentation of Financial Statements - Going Concern” (“ASU 2014-15”). ASU 2014-15 requires management to assess, at each interim and annual reporting period, whether substantial doubt exists about an entity’s ability to continue as a going concern within one year after the date that the financial statements are issued and, when necessary, provide related footnote disclosures. Management’s assessment should be based on relevant conditions and events that are known and reasonably knowable at the date that the financial statements are issued. ASU 2014-15 is effective for fiscal years ending after December 15, 2016, which for the Company means the year ending December 31, 2016; however, early adoption is permitted. The adoption of this guidance did not have a material effect on the Company’s consolidated financial position, results of operations, or cash flows as the Company does not have any substantial doubt about its ability to continue as a going concern. |
Organization_and_Summary_of_Si2
Organization and Summary of Significant Accounting Policies (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Accounting Policies [Abstract] | ||||||||
Weighted Average Fair Market Value of the Options Granted Estimated on the Date of Grant Assumptions | The weighted average fair market value of the options granted in the years ended December 31, 2014 and 2013 were estimated on the date of grant, using a Black-Scholes option pricing model with the following assumptions: | |||||||
2014 | 2013 | |||||||
Expected life of options (using the “simplified method”) | 4.5 – 5.5 years | 4.5 years | ||||||
Average risk-free interest rate | 1.6%-1.7 | % | 0.8%- 1.5 | % | ||||
Average expected volatility of stock | 121%-128% | % | 137%-141 | % | ||||
Expected dividend rate | None | None | ||||||
Inventories_Tables
Inventories (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Composition of Inventory | Inventories, consisting of materials, labor and overhead at December 31 were comprised of the following: | |||||||
2014 | 2013 | |||||||
Finished goods | $ | 1,626,300 | $ | 1,636,500 | ||||
Raw materials | 1,117,800 | 1,621,000 | ||||||
Inventory reserve for obsolescence | (54,400 | ) | (46,300 | ) | ||||
$ | 2,689,700 | $ | 3,211,200 | |||||
Property_Plant_and_Equipment_T
Property, Plant and Equipment (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Property Plant And Equipment [Abstract] | ||||||||
Schedule of Property, Plant and Equipment | Property, plant and equipment at December 31 were comprised of the following: | |||||||
2014 | 2013 | |||||||
Production equipment | $ | 5,039,900 | $ | 4,989,900 | ||||
Office furniture and equipment | 778,700 | 794,000 | ||||||
Other | 188,200 | 188,200 | ||||||
6,006,800 | 5,972,100 | |||||||
Less accumulated depreciation | (5,606,000 | ) | (5,453,900 | ) | ||||
$ | 400,800 | $ | 518,200 | |||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Schedule of Provision for Income Tax | The provision for income tax for the years ended December 31 is as follows: | |||||||||||
2014 | 2013 | |||||||||||
Current provision (benefit): | ||||||||||||
Federal | $ | 33,900 | $ | 32,800 | ||||||||
State | 10,000 | 61,400 | ||||||||||
Total current provision (benefit) | 43,900 | 94,200 | ||||||||||
Deferred provision (benefit): | ||||||||||||
Federal | 724,700 | 42,600 | ||||||||||
State | 61,800 | 3,800 | ||||||||||
Valuation allowance | (786,500 | ) | -46,400 | |||||||||
Total deferred provision (benefit) | 0 | 0 | ||||||||||
Provision (benefit): | ||||||||||||
Federal | 33,900 | 32,800 | ||||||||||
State | 10,000 | 61,400 | ||||||||||
Total provision (benefit) | $ | 43,900 | $ | 94,200 | ||||||||
Schedule of Income Tax Expense (Benefit) at the Statutory Tax Rate | Income tax expense (benefit) at the statutory tax rate is reconciled to the overall income tax expense (benefit) as follows: | |||||||||||
2014 | 2013 | |||||||||||
Federal income tax at statutory rates | $ | 726,700 | $ | 251,000 | ||||||||
State income taxes, net of federal tax effect | 61,900 | 22,500 | ||||||||||
Change in unrecognized benefit | (17,600 | ) | (6,300 | ) | ||||||||
Trade Promotions…………………………………………………………... | 0 | -152,700 | ||||||||||
Other | 59,400 | 26,100 | ||||||||||
Total | 830,400 | 140,600 | ||||||||||
Change in valuation allowance | (786,500 | ) | -46,400 | |||||||||
Provision for income taxes | $ | 43,900 | $ | 94,200 | ||||||||
Schedule of Net Deferred Tax Assets and Liabilities | Deferred income taxes are based on estimated future tax effects of differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amount used for income tax purposes given the provision of enacted tax laws. The net deferred tax assets and liabilities as of December 31, 2014 and 2013 are comprised of the following: | |||||||||||
2014 | 2013 | |||||||||||
Deferred tax assets: | ||||||||||||
Net operating loss carryforwards | $ | 2,840,800 | $ | 3,647,400 | ||||||||
Tax credit and other carryforwards | 344,800 | 302,500 | ||||||||||
Trade receivables | 178,000 | 160,200 | ||||||||||
Inventories | 28,200 | 26,900 | ||||||||||
Accrued vacation | 35,400 | 87,800 | ||||||||||
Other | 10,300 | 46,100 | ||||||||||
Total deferred taxes | 3,437,500 | 4,270,900 | ||||||||||
Deferred tax liability: | ||||||||||||
Accumulated depreciation for tax purposes | (58,400 | ) | (105,300 | ) | ||||||||
Total deferred tax liabilities | (58,400 | ) | (105,300 | ) | ||||||||
Net deferred tax asset, before allowance | 3,379,100 | 4,165,600 | ||||||||||
Valuation allowance | (3,379,100 | ) | (4,165,600 | ) | ||||||||
Net deferred tax asset | $ | 0 | $ | 0 | ||||||||
Schedule of Deferred Tax Assets | 2014 | 2013 | ||||||||||
Balance at January 1, | $ | 395,100 | $ | 412,100 | ||||||||
Additions based on tax positions related to current year | 0 | 320,000 | ||||||||||
Reductions for tax positions of prior years or change in valuation | (395,100 | ) | -337,000 | |||||||||
Balance at December 31, | $ | 0 | $ | 395,100 | ||||||||
Shareholders_Equity_Tables
Shareholders' Equity (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Equity [Abstract] | ||||||||||||||||
Schedule of Options Granted | Stock option activity under the 2005 Plan is as follows: | |||||||||||||||
Number of | Weighted Average | Weighted Average Remaining Contractual | Aggregate Intrinsic Value | |||||||||||||
Options | Exercise Price | Life | ||||||||||||||
Maximum number of shares under the plan | 3,000,000 | |||||||||||||||
Outstanding, December 31, 2012 | 1,263,350 | $ | 0.22 | 2.1 years | $ | 73,600 | ||||||||||
Granted in 2013 | 285,000 | 0.52 | ||||||||||||||
Exercised in 2013 | (509,830 | ) | 0.21 | |||||||||||||
Cancelled/Expired in 2013 | (344,000 | ) | 0.21 | |||||||||||||
Outstanding, December 31, 2013 | 694,520 | $ | 0.35 | 3.1 years | $ | 211,100 | ||||||||||
Granted in 2014 | 377,500 | 0.84 | ||||||||||||||
Exercised in 2014 | (102,958 | ) | 0.41 | |||||||||||||
Cancelled/Expired in 2014 | (50,093 | ) | 0.51 | |||||||||||||
Outstanding, December 31, 2014 | 918,969 | $ | 0.53 | 4.4 years | $ | 374,600 | ||||||||||
Exercisable, December 31, 2014 | 442,414 | $ | 0.33 | 2.0 years | $ | 269,800 | ||||||||||
Available for issuance, December 31, 2014 | 2,081,031 | |||||||||||||||
Schedule of Non-vested Options Outstanding | A summary of the status of non-vested shares underlying the options outstanding as of December 31, 2014 under the 2005 Plan is as follows: | |||||||||||||||
Number of | Weighted Average | |||||||||||||||
Options | Exercise Price | |||||||||||||||
Non-vested, December 31, 2012 | 445,192 | $ | 0.22 | |||||||||||||
Granted in 2013 | 285,000 | 0.52 | ||||||||||||||
Vested in 2013 | (304,844 | ) | 0.21 | |||||||||||||
Cancelled/Expired in 2013 | (110,663 | ) | 0.21 | |||||||||||||
Non-vested, December 31, 2013 | 314,685 | $ | 0.35 | |||||||||||||
Granted in 2014 | 377,500 | 0.84 | ||||||||||||||
Vested in 2014 | (194,214 | ) | 0.41 | |||||||||||||
Cancelled/Expired in 2014 | (21,416 | ) | 0.51 | |||||||||||||
Non-vested, December 31, 2014 | 476,555 | $ | 0.53 | |||||||||||||
Summary of Additional Information Related to the Options Outstanding | A summary of additional information related to the options outstanding as of December 31, 2014 under the 2005 Plan is as follows: | |||||||||||||||
Range of Exercise Prices | Number of Options | Weighted Average Remaining Contractual | Weighted Average Exercise | |||||||||||||
Life | Price | |||||||||||||||
$0.17-$0.39 | 353,525 | 1.2 years | $ | 0.23 | ||||||||||||
1.2 years | ||||||||||||||||
$0.40-$0.62 | 167,944 | 3.4 years | $ | 0.45 | ||||||||||||
$0.63-$0.86 | 397,500 | 7.7 years | $ | 0.83 | ||||||||||||
Total | 918,969 | 4.4 years | $ | 0.53 | ||||||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Earnings Per Share [Abstract] | ||||||||
Reconciliation of the Weighted Average Number of Common Shares Outstanding | A reconciliation of the weighted average number of common shares outstanding for the years ended December 31 is as follows: | |||||||
2014 | 2013 | |||||||
Common shares outstanding, beginning of the year | 11,446,800 | 10,937,000 | ||||||
Weighted average common shares issued | 61,144 | 314,637 | ||||||
Weighted average number of common shares outstanding | 11,507,944 | 11,251,637 | ||||||
Dilutive effect of common share equivalents | 273,895 | 95,781 | ||||||
Diluted weighted average number of common shares outstanding | 11,781,839 | 11,347,418 | ||||||
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||
Information on Segments | The following provides information on our segments as of and for the years ended December 31: | |||||||||||||||
2014 | 2013 | |||||||||||||||
Household | Skin and Hair | Household | Skin and Hair | |||||||||||||
Products | Care Products | Products | Care Products | |||||||||||||
Net sales to external customers | $ | 5,890,200 | $ | 18,453,400 | $ | 5,335,500 | $ | 13,956,700 | ||||||||
(Loss) income before income taxes | $ | (666,200 | ) | $ | 2,803,500 | $ | (990,900 | ) | $ | 1,729,000 | ||||||
Identifiable assets | $ | 4,119,400 | $ | 3,471,800 | $ | 3,514,000 | $ | 3,733,800 | ||||||||
Reconciliation of Segment Information | The following is a reconciliation of segment information to consolidated information: | |||||||||||||||
2014 | 2013 | |||||||||||||||
Net sales to external customers | $ | 24,343,600 | $ | 19,292,200 | ||||||||||||
Income before income taxes | $ | 2,137,300 | $ | 738,100 | ||||||||||||
Consolidated income before income taxes | $ | 2,137,300 | $ | 738,100 | ||||||||||||
Identifiable assets | $ | 7,591,200 | $ | 7,247,800 | ||||||||||||
Corporate assets | 2,837,700 | 1,110,300 | ||||||||||||||
Consolidated total assets | $ | 10,428,900 | $ | 8,358,100 | ||||||||||||
Schedule of Revenues for Each Geographical Areas | We attribute our net sales to different geographic areas based on the location of the customer. All of our long-lived assets are located in the United States. For the year ended December 31, revenues for each geographical area are as follows: | |||||||||||||||
2014 | 2013 | |||||||||||||||
United States | $ | 24,236,000 | $ | 19,190,300 | ||||||||||||
Foreign countries | 107,600 | 101,900 | ||||||||||||||
Total net sales | $ | 24,343,600 | $ | 19,292,200 | ||||||||||||
Valuation_and_Qualifying_Accou1
Valuation and Qualifying Accounts (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Valuation And Qualifying Accounts [Abstract] | ||||||||||||||||
Schedule of Valuation and Qualifying Accounts | ||||||||||||||||
Balance at | Additions | Deductions | Balance at | |||||||||||||
beginning | charged to | end of | ||||||||||||||
of year | expense | year | ||||||||||||||
Year ended December 31, 2013 | ||||||||||||||||
Returns and allowances and doubtful accounts reserve | $ | 468,400 | $ | 2,039,300 | $ | 1,686,000 | $ | 821,700 | ||||||||
Year ended December 31, 2014 | ||||||||||||||||
Returns and allowances and doubtful accounts reserve | $ | 821,700 | $ | 2,056,300 | $ | 2,082,700 | $ | 795,300 | ||||||||
Organization_and_Summary_of_Si3
Organization and Summary of Significant Accounting Policies (Details Textual) (USD $) | 12 Months Ended | 1 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended |
Dec. 31, 2014 | Mar. 31, 2011 | Feb. 04, 2013 | Dec. 31, 2013 | Mar. 16, 2011 | |
Segment | |||||
Schedule Of Organization And Presentation Of Financial Statements [Line Items] | |||||
Number of business segment | 2 | ||||
Expiration date of financing agreement | 1-Jan-16 | ||||
Renewal period of agreement | 12 months | ||||
Additional renewal Period of agreement | 12 months | ||||
Cancelation period of agreement | at least 60 days | ||||
Account receivables | $1,500,000 | ||||
Percentage of advance rate of loan after March 1, 2011 | 85.00% | ||||
Aggregate amount of inventory | 500,000 | ||||
Percentage of administrative fees on inventory portion | 1.00% | ||||
Percentage of administrative fees on receivable portion, Less Than or equal to $1000000 | 0.85% | ||||
Percentage of administrative fees on receivable portion, More Than $1000000 | 0.75% | ||||
Computation of administrative fees on receivable portion, Specified Amount for different rates | 1,000,000 | ||||
Credit line available for future factoring of accounts receivables and borrowings secured by inventory | 1,500,000 | 1,500,000 | |||
Credit line loan balance | 0 | ||||
Percentage of retained account receivable as interest. | 15.00% | ||||
Minimum | |||||
Schedule Of Organization And Presentation Of Financial Statements [Line Items] | |||||
Period to maturity of receivables sold | 102 days | ||||
Maximum | |||||
Schedule Of Organization And Presentation Of Financial Statements [Line Items] | |||||
Period to maturity of receivables sold | 105 days | ||||
Summit | |||||
Schedule Of Organization And Presentation Of Financial Statements [Line Items] | |||||
Sale of account receivables | 0 | 824,200 | |||
Proceeds from sale of account receivables | 700,600 | ||||
Retained interest on accounts receivable | 15.00% | ||||
Repayment of outstanding balance on credit line | 909,778 | ||||
Wells Fargo Bank | |||||
Schedule Of Organization And Presentation Of Financial Statements [Line Items] | |||||
Variable rate | 0.28% | ||||
Sale of account receivables | 4,516,100 | 4,098,000 | |||
Proceeds from sale of account receivables | $4,497,700 | $4,080,600 | |||
Period of LIBOR rate used | 104 days | ||||
Period of notice for termination of agreement | 30 days | ||||
Prime Rate | |||||
Schedule Of Organization And Presentation Of Financial Statements [Line Items] | |||||
Variable rate | 3.25% | ||||
Prime Rate | Accounts Receivables | |||||
Schedule Of Organization And Presentation Of Financial Statements [Line Items] | |||||
Interest rate of agreement amount | 1.00% | ||||
Prime Rate | Inventories | |||||
Schedule Of Organization And Presentation Of Financial Statements [Line Items] | |||||
Interest rate of agreement amount | 2.50% | ||||
LIBOR Rate | Wells Fargo Bank | |||||
Schedule Of Organization And Presentation Of Financial Statements [Line Items] | |||||
Interest rate of agreement amount | 1.15% |
Organization_and_Summary_of_Si4
Organization and Summary of Significant Accounting Policies (Details Textual 1) (USD $) | 0 Months Ended | 12 Months Ended | |
Feb. 01, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | |
Organization and summary of significant accounting policies (Textual) [Abstract] | |||
Significant financial instruments with off-balance sheet risk | $0 | ||
Long-term debt | 0 | 0 | |
Sale of property, amount | 9,500,000 | ||
Net proceeds received from sale of property | 0 | 8,922,600 | |
Interest and penalties recognized in statement of operations | 0 | ||
Accrued interest or penalties related to uncertain tax positions | 0 | 0 | |
Reserve for reduction in account receivables | 795,300 | 821,700 | |
Trade Promotion to Customer | $2,056,300 | $2,036,800 | |
Minimum | |||
Organization and summary of significant accounting policies (Textual) [Abstract] | |||
Useful life of property, plant and equipment | 3 years | ||
Maximum | |||
Organization and summary of significant accounting policies (Textual) [Abstract] | |||
Useful life of property, plant and equipment | 20 years | ||
Production Equipment | Minimum | |||
Organization and summary of significant accounting policies (Textual) [Abstract] | |||
Useful life of property, plant and equipment | 15 years | ||
Production Equipment | Maximum | |||
Organization and summary of significant accounting policies (Textual) [Abstract] | |||
Useful life of property, plant and equipment | 20 years | ||
Production Support Equipment | Minimum | |||
Organization and summary of significant accounting policies (Textual) [Abstract] | |||
Useful life of property, plant and equipment | 3 years | ||
Production Support Equipment | Maximum | |||
Organization and summary of significant accounting policies (Textual) [Abstract] | |||
Useful life of property, plant and equipment | 10 years | ||
Office Furniture and Equipment | Minimum | |||
Organization and summary of significant accounting policies (Textual) [Abstract] | |||
Useful life of property, plant and equipment | 10 years | ||
Office Furniture and Equipment | Maximum | |||
Organization and summary of significant accounting policies (Textual) [Abstract] | |||
Useful life of property, plant and equipment | 20 years | ||
Office Equipment | Minimum | |||
Organization and summary of significant accounting policies (Textual) [Abstract] | |||
Useful life of property, plant and equipment | 3 years | ||
Office Equipment | Maximum | |||
Organization and summary of significant accounting policies (Textual) [Abstract] | |||
Useful life of property, plant and equipment | 5 years | ||
Carpet, Drapes and Company Vehicles | Minimum | |||
Organization and summary of significant accounting policies (Textual) [Abstract] | |||
Useful life of property, plant and equipment | 5 years | ||
Carpet, Drapes and Company Vehicles | Maximum | |||
Organization and summary of significant accounting policies (Textual) [Abstract] | |||
Useful life of property, plant and equipment | 10 years |
Organization_and_Summary_of_Si5
Organization and Summary of Significant Accounting Policies (Details Textual 2) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Organization and Summary of Significant Accounting Policies (Additional Textual) [Abstract] | ||
Period over which compensation costs related to non-vested stock options recognize | 48 months | 48 months |
Expiry of options | 5 years | 5 years |
Price of option with maximum maturity | 120.00% | 120.00% |
Weighted average fair market value of the options granted | $0.56 | $0.30 |
Stock-based compensation | $66,700 | $55,300 |
Unrecognized compensation costs related to non-vested stock options | 242,500 | |
Tax benefit from recording non-cash expense relates to options granted to employees | 0 | |
Shipping and handling costs | 1,517,500 | 1,461,700 |
Minimum | ||
Organization and Summary of Significant Accounting Policies (Additional Textual) [Abstract] | ||
Period over which compensation costs related to non-vested stock options recognize | 48 months | |
Maximum | ||
Organization and Summary of Significant Accounting Policies (Additional Textual) [Abstract] | ||
Period over which compensation costs related to non-vested stock options recognize | 60 months | |
General and Administrative Expense | ||
Organization and Summary of Significant Accounting Policies (Additional Textual) [Abstract] | ||
Stock-based compensation | $66,700 | $55,300 |
Executive Officer | ||
Organization and Summary of Significant Accounting Policies (Additional Textual) [Abstract] | ||
Number of Shares Granted | 250,000 | 85,000 |
Average Option Price Per Share Granted | $0.86 | $0.41 |
Period over which compensation costs related to non-vested stock options recognize | 60 months | |
Expiry of options | 10 years | |
Vice President | ||
Organization and Summary of Significant Accounting Policies (Additional Textual) [Abstract] | ||
Number of Shares Granted | 35,000 | |
Average Option Price Per Share Granted | $0.78 | |
Administrative Employee | ||
Organization and Summary of Significant Accounting Policies (Additional Textual) [Abstract] | ||
Number of Shares Granted | 2,500 | |
Average Option Price Per Share Granted | $0.78 | |
Two Non-Employee Directors | ||
Organization and Summary of Significant Accounting Policies (Additional Textual) [Abstract] | ||
Number of Shares Granted | 60,000 | |
Average Option Price Per Share Granted | $0.79 | |
One Non-Employee Director | ||
Organization and Summary of Significant Accounting Policies (Additional Textual) [Abstract] | ||
Number of Shares Granted | 30,000 | |
Average Option Price Per Share Granted | $0.79 | |
One Board Member | ||
Organization and Summary of Significant Accounting Policies (Additional Textual) [Abstract] | ||
Number of Shares Granted | 30,000 | |
Average Option Price Per Share Granted | $0.55 | |
Regional Sales Manager One | ||
Organization and Summary of Significant Accounting Policies (Additional Textual) [Abstract] | ||
Number of Shares Granted | 15,000 | |
Average Option Price Per Share Granted | $0.55 | |
Regional Sales Manager Two | ||
Organization and Summary of Significant Accounting Policies (Additional Textual) [Abstract] | ||
Number of Shares Granted | 15,000 | |
Average Option Price Per Share Granted | $0.49 | |
Executive Officer One | ||
Organization and Summary of Significant Accounting Policies (Additional Textual) [Abstract] | ||
Number of Shares Granted | 50,000 | |
Average Option Price Per Share Granted | $0.78 | |
Three Non-Employee Directors | ||
Organization and Summary of Significant Accounting Policies (Additional Textual) [Abstract] | ||
Number of Shares Granted | 90,000 |
Organization_and_Summary_of_Si6
Organization and Summary of Significant Accounting Policies - Assumptions Used in Determining Fair Value of Options Granted (Details) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Expected life of options (using the bsimplified methodb) | 4 years 6 months | |
Expected dividend rate | 0.00% | 0.00% |
Minimum | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Expected life of options (using the bsimplified methodb) | 4 years 6 months | |
Average risk-free interest rate | 1.60% | 0.80% |
Average expected volatility of stock | 121.00% | 137.00% |
Maximum | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Expected life of options (using the bsimplified methodb) | 5 years 6 months | |
Average risk-free interest rate | 1.70% | 1.50% |
Average expected volatility of stock | 128.00% | 141.00% |
Inventories_Details
Inventories (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Inventory Disclosure [Abstract] | ||
Finished goods | $1,626,300 | $1,636,500 |
Raw materials | 1,117,800 | 1,621,000 |
Inventory reserve for obsolescence | -54,400 | -46,300 |
Inventories, net | $2,689,700 | $3,211,200 |
Property_Plant_and_Equipment_D
Property, Plant and Equipment (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Schedule of Property, Plant and Equipment | ||
Property, Plant and Equipment, gross | $6,006,800 | $5,972,100 |
Less accumulated depreciation | -5,606,000 | -5,453,900 |
Property, Plant and Equipment, Total | 400,800 | 518,200 |
Production Equipment | ||
Schedule of Property, Plant and Equipment | ||
Property, Plant and Equipment, gross | 5,039,900 | 4,989,900 |
Office Furniture and Equipment | ||
Schedule of Property, Plant and Equipment | ||
Property, Plant and Equipment, gross | 778,700 | 794,000 |
Other | ||
Schedule of Property, Plant and Equipment | ||
Property, Plant and Equipment, gross | $188,200 | $188,200 |
Property_Plant_and_Equipment_D1
Property, Plant and Equipment (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment (Textual) [Abstract] | ||
Depreciation and amortization | $173,600 | $135,000 |
Debt_Details_Textual
Debt (Details Textual) (Secured Debt, USD $) | 12 Months Ended | |
Dec. 31, 2014 | Jun. 28, 2006 | |
Secured Debt | ||
Line Of Credit Facility [Line Items] | ||
Date of entering into loan agreement | 28-Jun-06 | |
Loan amortization period | 15 years | |
Loan amount, secured by land, building and fixtures | $5,156,600 | |
Sale of real estate assets, date | 1-Feb-13 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Current provision (benefit): | ||
Federal | $33,900 | $32,800 |
State | 10,000 | 61,400 |
Total current provision (benefit) | 43,900 | 94,200 |
Deferred provision (benefit): | ||
Federal | 724,700 | 42,600 |
State | 61,800 | 3,800 |
Change in valuation allowance | -786,500 | -46,400 |
Total deferred provision (benefit) | 0 | 0 |
Provision (benefit): | ||
Federal | 33,900 | 32,800 |
State | 10,000 | 61,400 |
Total provision (benefit) | $43,900 | $94,200 |
Income_Taxes_Details_1
Income Taxes (Details 1) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of income tax expense (benefit) at the statutory tax rate | ||
Federal income tax at statutory rates | $726,700 | $251,000 |
State income taxes, net of federal tax effect | 61,900 | 22,500 |
Change in unrecognized benefit | -17,600 | -6,300 |
Trade Promotions | 0 | -152,700 |
Other | 59,400 | 26,100 |
Total | 830,400 | 140,600 |
Change in valuation allowance | -786,500 | -46,400 |
Total provision (benefit) | $43,900 | $94,200 |
Income_Taxes_Details_2
Income Taxes (Details 2) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Deferred tax assets: | ||
Net operating loss carryforwards | $2,840,800 | $3,647,400 |
Tax credit and other carryforwards | 344,800 | 302,500 |
Trade receivables | 178,000 | 160,200 |
Inventories | 28,200 | 26,900 |
Accrued vacation | 35,400 | 87,800 |
Other | 10,300 | 46,100 |
Total deferred taxes | 3,437,500 | 4,270,900 |
Deferred tax liability: | ||
Accumulated depreciation for tax purposes | -58,400 | -105,300 |
Total deferred tax liabilities | -58,400 | -105,300 |
Net deferred tax asset, before allowance | 3,379,100 | 4,165,600 |
Valuation allowance | -3,379,100 | -4,165,600 |
Net deferred tax asset | $0 | $0 |
Income_Taxes_Details_Textual
Income Taxes (Details Textual) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Taxes (Textual) [Abstract] | |||
Deferred tax assets, tax credit carryforwards, alternative minimum tax | $66,600 | ||
Income Taxes (Additional Textual) [Abstract] | |||
Change in valuation allowance | -786,500 | -46,400 | |
Deferred tax positions unrecognized tax benefit | 0 | 395,100 | 412,100 |
Accrued interest or penalties related to uncertain tax positions | 0 | 0 | |
State and Local Jurisdiction | |||
Income Taxes (Textual) [Abstract] | |||
Operating loss carryforwards | 14,998,600 | ||
Federal new operating loss carryforwards expiration date | 31-Dec-33 | ||
Income Taxes (Additional Textual) [Abstract] | |||
Income tax year open to examination | 2010 | ||
Domestic Tax Authority | |||
Income Taxes (Additional Textual) [Abstract] | |||
Income tax year open to examination | 2011 | ||
Internal Revenue Service (IRS) | |||
Income Taxes (Textual) [Abstract] | |||
Operating loss carryforwards | 7,043,000 | ||
Federal new operating loss carryforwards expiration date | 31-Dec-33 | ||
Research and Development Expense | Internal Revenue Service (IRS) | |||
Income Taxes (Textual) [Abstract] | |||
Tax credit carryforward, amount | $278,200 | ||
Expiration date for tax credit carryforwards | 31-Dec-33 |
Income_Taxes_Details_3
Income Taxes (Details 3) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of deferred tax assets | ||
Balance at January 1, | $395,100 | $412,100 |
Additions based on tax positions related to current year | 0 | 320,000 |
Reductions for tax positions of prior years or change in valuation | -395,100 | -337,000 |
Balance at December 31, | $0 | $395,100 |
Shareholders_Equity_Details_Te
Shareholders' Equity (Details Textual) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2011 | 31-May-11 | |
Shareholders' Equity (Textual) [Abstract] | ||||
Stock exercisable period | 5 years | 5 years | ||
Percentage of current market price for grant value calculation | 120.00% | 120.00% | ||
Shareholders' Equity (Additional Textual) [Abstract] | ||||
Options grant value calculation description | Options granted after May 2011, pursuant to the plan amendment in May 2011, are required to be granted at not less than the higher of (1) 120% of current market price on the date of grant or (2) the average of market price over the prior 30 trading days | |||
Employer discretionary contribution to defined plan | $0 | $0 | ||
Shares Held in Employee Stock Option Plan, Allocated | 830,682 | 860,053 | ||
2005 Plan | ||||
Shareholders' Equity (Textual) [Abstract] | ||||
Number of shares issuable under 2005 Plan | 3,000,000 | 1,500,000 | ||
Percentage of current market price for grant value calculation | 120.00% | |||
Number of trading days for calculation of average market price | 30 days | |||
Shareholders' Equity (Additional Textual) [Abstract] | ||||
Number of Shares Granted | 377,500 | 285,000 | ||
2005 Plan | Minimum | ||||
Shareholders' Equity (Textual) [Abstract] | ||||
Stock exercisable period | 5 years | |||
Options vesting period | 48 months | |||
2005 Plan | Maximum | ||||
Shareholders' Equity (Textual) [Abstract] | ||||
Stock exercisable period | 10 years | |||
Options vesting period | 60 months | |||
2005 Plan | Board Members | ||||
Shareholders' Equity (Additional Textual) [Abstract] | ||||
Number of Shares Granted | 90,000 | 30,000 | ||
Amended Two Thousand Five Plan | ||||
Shareholders' Equity (Textual) [Abstract] | ||||
Number of shares issuable under 2005 Plan | 3,000,000 |
Shareholders_Equity_Details
Shareholders' Equity (Details) (2005 Plan, USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | 31-May-11 | |
2005 Plan | ||||
Schedule of options granted | ||||
Maximum number of shares under the plan | 3,000,000 | 1,500,000 | ||
Outstanding Number of Options Beginning Balance | 694,520 | 1,263,350 | ||
Number of Options Granted | 377,500 | 285,000 | ||
Number of Options Exercised | -102,958 | -509,830 | ||
Number of Options Cancelled/Expired | -50,093 | -344,000 | ||
Outstanding Number of Options Ending Balance | 918,969 | 694,520 | 1,263,350 | |
Exercisable Number of Options Ending Balance | 442,414 | |||
Available for Issuance Number of Options Ending Balance | 2,081,031 | |||
Weighted Average Exercise Price | ||||
Outstanding Weighted Average Exercise Price Beginning Balance | $0.35 | $0.22 | ||
Weighted Average Exercise Price Granted | $0.84 | $0.52 | ||
Weighted Average Exercise Price Exercised | $0.41 | $0.21 | ||
Weighted Average Exercise Price Cancelled/Expired | $0.51 | $0.21 | ||
Outstanding Weighted Average Exercise Price Ending Balance | $0.53 | $0.35 | $0.22 | |
Weighted Average Exercise Price Exercisable Ending Balance | $0.33 | |||
Weighted Average Remaining Contractual Life | ||||
Weighted Average Remaining Contractual Life Options Outstanding | 4 years 4 months 24 days | 3 years 1 month 6 days | 2 years 1 month 6 days | |
Weighted Average Remaining Contractual Life Options Exercisable | 2 years | |||
Aggregate Intrinsic Value | ||||
Outstanding Aggregate Intrinsic Value Beginning Balance | $211,100 | $73,600 | ||
Outstanding Aggregate Intrinsic Value Ending Balance | 374,600 | 211,100 | 73,600 | |
Aggregate Intrinsic Value Exercisable Ending Balance | $269,800 |
Shareholders_Equity_Details1
Shareholders' Equity (Details1) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Non-vested, Weighted Average Exercise Price | ||
Non-vested, Weighted Average Exercise Price Granted | $0.56 | $0.30 |
2005 Plan | ||
Non-vested Stock Options | ||
Non-vested, Number of Options Beginning Balance | 314,685 | 445,192 |
Number of Options Granted | 377,500 | 285,000 |
Non-vested, Number of Options Vested | -194,214 | -304,844 |
Non-vested, Number of Options Cancelled/Expired | -21,416 | -110,663 |
Non-vested, Number of Options Ending Balance | 476,555 | 314,685 |
Non-vested, Weighted Average Exercise Price | ||
Non-vested, Weighted Average Exercise Price Beginning Balance | $0.35 | $0.22 |
Non-vested, Weighted Average Exercise Price Granted | $0.84 | $0.52 |
Non-vested, Weighted Average Exercise Price Vested | $0.41 | $0.21 |
Non-vested, Weighted Average Exercise Price Cancelled/Expired | $0.51 | $0.21 |
Non-vested, Weighted Average Exercise Price Ending Balance | $0.53 | $0.35 |
Shareholders_Equity_Details2
Shareholders' Equity (Details2) (2005 Plan, USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Summary of additional information related to the options outstanding | |
Exercisable Weighted Average Number of Option Outstanding | 918,969 |
Average Option Price Per share Exercised | 4 years 4 months 24 days |
Options Outstanding and Exercisable Weighted Average Exercise Price | $0.53 |
Range One | |
Summary of additional information related to the options outstanding | |
Upper range of Exercise prices | $0.39 |
Lower range of Exercise prices | $0.17 |
Exercisable Weighted Average Number of Option Outstanding | 353,525 |
Average Option Price Per share Exercised | 1 year 2 months 12 days |
Options Outstanding and Exercisable Weighted Average Exercise Price | $0.23 |
Range Two | |
Summary of additional information related to the options outstanding | |
Upper range of Exercise prices | $0.62 |
Lower range of Exercise prices | $0.40 |
Exercisable Weighted Average Number of Option Outstanding | 167,944 |
Average Option Price Per share Exercised | 3 years 4 months 24 days |
Options Outstanding and Exercisable Weighted Average Exercise Price | $0.45 |
Range Three | |
Summary of additional information related to the options outstanding | |
Upper range of Exercise prices | $0.86 |
Lower range of Exercise prices | $0.63 |
Exercisable Weighted Average Number of Option Outstanding | 397,500 |
Average Option Price Per share Exercised | 7 years 8 months 12 days |
Options Outstanding and Exercisable Weighted Average Exercise Price | $0.83 |
Earnings_Per_Share_Details_Tex
Earnings Per Share (Details Textual) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Earnings Per Share Additional Textual [Abstract] | ||
Preferred stock issuable | 20,000,000 | |
Preferred stock issued | 0 | |
Preferred stock outstanding | 0 | |
Stock Options | ||
Earnings Per Share Textual [Abstract] | ||
Anti-dilutive securities comprised of outstanding stock options | 427,500 | 106,778 |
Earnings_Per_Share_Details
Earnings Per Share (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | |
Earnings Per Share [Abstract] | |||
Beginning Balance, Shares | 11,446,800 | 10,937,000 | 11,549,789 |
Weighted average common shares issued | 61,144 | 314,637 | |
Weighted average number of common shares outstanding | 11,507,944 | 11,251,637 | |
Dilutive effect of common share equivalents | 273,895 | 95,781 | |
Diluted weighted average number of common shares outstanding | 11,781,839 | 11,347,418 |
Segment_Information_Details_Te
Segment Information (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Information [Line Items] | ||
Number of business segment | 2 | |
Wal-Mart | ||
Segment Reporting Information [Line Items] | ||
Entity wide revenue, net sales from major customer | $4,409,600 | $4,130,300 |
Wal-Mart | Customer Concentration Risk | Accounts Receivables | ||
Segment Reporting Information [Line Items] | ||
Entity wide outstanding trade receivable percentage from major customer | 14.00% | 13.70% |
Ulta | ||
Segment Reporting Information [Line Items] | ||
Entity wide revenue, net sales from major customer | $4,741,400 | $3,253,400 |
Ulta | Customer Concentration Risk | Accounts Receivables | ||
Segment Reporting Information [Line Items] | ||
Entity wide outstanding trade receivable percentage from major customer | 19.50% | 20.90% |
Segment_Information_Details
Segment Information (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Information [Line Items] | ||
Net sales | $24,343,600 | $19,292,200 |
(Loss) income before income taxes | 2,137,300 | 738,100 |
Total assets | 10,428,900 | 8,358,100 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Total assets | 7,591,200 | 7,247,800 |
Operating Segments | Household Products | ||
Segment Reporting Information [Line Items] | ||
Net sales | 5,890,200 | 5,335,500 |
(Loss) income before income taxes | -666,200 | -990,900 |
Total assets | 4,119,400 | 3,514,000 |
Operating Segments | Skin And Hair Care Products | ||
Segment Reporting Information [Line Items] | ||
Net sales | 18,453,400 | 13,956,700 |
(Loss) income before income taxes | 2,803,500 | 1,729,000 |
Total assets | $3,471,800 | $3,733,800 |
Segment_Information_Details_1
Segment Information (Details 1) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Reconciliation of segment information | ||
Net sales to external customers | $24,343,600 | $19,292,200 |
Income before income taxes | 2,137,300 | 738,100 |
(Loss) income before income taxes | 2,137,300 | 738,100 |
Total assets | 10,428,900 | 8,358,100 |
Operating Segments | ||
Reconciliation of segment information | ||
Total assets | 7,591,200 | 7,247,800 |
Corporate, Non-Segment | ||
Reconciliation of segment information | ||
Total assets | $2,837,700 | $1,110,300 |
Segment_Information_Details_2
Segment Information (Details 2) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of revenues for each geographical areas | ||
Net sales | $24,343,600 | $19,292,200 |
United States | ||
Schedule of revenues for each geographical areas | ||
Net sales | 24,236,000 | 19,190,300 |
Foreign Countries | ||
Schedule of revenues for each geographical areas | ||
Net sales | $107,600 | $101,900 |
Retirement_Plans_Details
Retirement Plans (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Retirement Plans (Textual) [Abstract] | ||
Minimum Completed years of service for eligible in plan | 4 months | |
Minimum age of employee for becoming eligible in plan | 18 years | |
Maximum limit of Employee Compensation Defer percentage | 75.00% | |
Percentage of discretionary contributions | 6.00% | |
Maximum Annual earnings limit for employer contribution | $35,000 | |
Vesting period of service to employee for profit sharing contribution | 5 years | |
Amount of matching contribution | 4,300 | 3,500 |
Discretionary profit sharing contribution | $0 |
Commitments_and_Contingencies_
Commitments and Contingencies (Details Textual) (USD $) | 12 Months Ended | 1 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Oct. 31, 2009 | Feb. 01, 2013 | |
sqft | ||||
Commitments and Contingencies (Additional Textual) [Abstract] | ||||
Annual rental expense under operating lease agreements | $50,300 | $78,500 | ||
Minimum annual rental payments under noncancellable operating leases for next year | 46,700 | |||
Minimum annual rental payments under noncancellable operating leases for 2nd year | 33,700 | |||
Minimum annual rental payments under noncancellable operating leases for 3rd year | 19,900 | |||
Minimum annual rental payments under noncancellable operating leases afterwards | 0 | |||
Office Lease | ||||
Commitments and Contingencies (Additional Textual) [Abstract] | ||||
Area of leased back from the purchaser | 16,078 | |||
Annual rental expenses under sale leaseback | 214,800 | 191,600 | ||
Minimum annual rental payments under sale leaseback for next year | 221,200 | |||
Minimum annual rental payments under sale leaseback for 3rd year | 18,500 | |||
Warehouse Lease | ||||
Commitments and Contingencies (Additional Textual) [Abstract] | ||||
Area of leased back from the purchaser | 113,620 | |||
Annual rental expenses under sale leaseback | 379,400 | 338,500 | ||
Minimum annual rental payments under sale leaseback for next year | 390,800 | |||
Minimum annual rental payments under sale leaseback for 3rd year | $32,600 | |||
One Floor of Office Building | ||||
Commitments and Contingencies (Textual) [Abstract] | ||||
Lease Agreement Period | 5 years | |||
One Half Floor of Office Building | ||||
Commitments and Contingencies (Textual) [Abstract] | ||||
Lease expiration date | 31-Dec-15 | |||
Warehouse Buildings | ||||
Commitments and Contingencies (Textual) [Abstract] | ||||
Lease expiration date | 31-Mar-16 |
Valuation_and_Qualifying_Accou2
Valuation and Qualifying Accounts (Details) (Returns And Allowances And Doubtful Accounts Reserve, USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Returns And Allowances And Doubtful Accounts Reserve | ||
Schedule of Valuation and Qualifying Accounts | ||
Balance at beginning of year | $821,700 | $468,400 |
Additions charged to expense | 2,056,300 | 2,039,300 |
Deductions | 2,082,700 | 1,686,000 |
Balance at end of year | $795,300 | $821,700 |
Sale_of_Property_Details_Textu
Sale of Property (Details Textual) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended |
Feb. 01, 2013 | Dec. 31, 2014 | Feb. 04, 2013 | |
acre | |||
Property | |||
sqft | |||
Sale Leaseback Transaction [Line Items] | |||
Area of land for which sale was consummated | 10.8 | ||
Number of buildings improved in land | 4 | ||
Area of office, warehouse, and manufacturing space | 241,684 | ||
Area of adjacent vacant land | 5.5 | ||
Sale of facilities, amount | $9,500,000 | ||
Selling Expense | 579,800 | ||
Real estate brokerage commissions | 570,000 | ||
Term of leased back from the purchaser, additional rent per square foot criteria for uncontrolled operating expenses maximum percentage | 5.00% | ||
Principal and interest balance on long term debt | 3,373,961 | ||
Real estate property taxes | 202,000 | ||
Credit line loan balance | 0 | ||
Payment of other financial obligation to suppliers and vendors | 960,000 | ||
Capital expenditures | 150,000 | ||
Summit | |||
Sale Leaseback Transaction [Line Items] | |||
Repayment of outstanding balance on credit line | $909,778 | ||
Office Lease | |||
Sale Leaseback Transaction [Line Items] | |||
Area of leased back from the purchaser | 16,078 | ||
Term of leased back from the purchaser | 3 years | ||
Number of extensions allowed for leased back from the purchaser | 2 | ||
Term of leased back from the purchaser, extension period | 3 years | ||
Term of leased back from the purchaser, rent per square foot | 13 | ||
Term of leased back from the purchaser, incremental rent percentage | 3.00% | ||
Warehouse Lease | |||
Sale Leaseback Transaction [Line Items] | |||
Area of leased back from the purchaser | 113,620 | ||
Term of leased back from the purchaser | 3 years | ||
Number of extensions allowed for leased back from the purchaser | 2 | ||
Term of leased back from the purchaser, extension period | 3 years | ||
Term of leased back from the purchaser, rent per square foot | 3.25 | ||
Term of leased back from the purchaser, incremental rent percentage | 3.00% | ||
Term of leased back from the purchaser, additional rent Per square foot related to operating expenses | 1.25 |