Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | 14-May-15 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | SCOTTS LIQUID GOLD INC | |
Entity Central Index Key | 88000 | |
Document Type | 10-Q | |
Document Period End Date | 31-Mar-15 | |
Amendment Flag | FALSE | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | SLGD | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 11,635,039 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Income Statement [Abstract] | ||
Net sales | $6,948,200 | $5,483,800 |
Operating costs and expenses: | ||
Cost of sales | 3,739,400 | 2,976,600 |
Advertising | 247,200 | 199,600 |
Selling | 1,353,200 | 1,132,500 |
General and administrative | 909,200 | 670,500 |
Total operating costs and expenses | 6,249,000 | 4,979,200 |
Income from operations | 699,200 | 504,600 |
Other income | 4,100 | 8,600 |
Interest expense | -7,300 | -7,200 |
Income before income taxes | 696,000 | 506,000 |
Income tax expense | 12,400 | 8,400 |
Net income | $683,600 | $497,600 |
Net income per common share | ||
Basic | $0.06 | $0.04 |
Diluted | $0.06 | $0.04 |
Weighted average shares outstanding: | ||
Basic | 11,557,281 | 11,446,800 |
Diluted | 11,874,589 | 11,662,496 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $6,045,600 | $5,896,600 |
Trade receivables, net | 2,028,900 | 1,041,100 |
Inventories, net | 2,946,100 | 2,689,700 |
Income taxes receivable | 0 | 3,700 |
Prepaid expenses | 342,900 | 346,000 |
Total current assets | 11,363,500 | 9,977,100 |
Property, plant and equipment, net | 368,700 | 400,800 |
Other assets | 51,000 | 51,000 |
Total assets | 11,783,200 | 10,428,900 |
Current liabilities: | ||
Accounts payable | 1,210,200 | 616,300 |
Accrued payroll and benefits | 729,500 | 665,900 |
Income taxes payable | 2,900 | 0 |
Accrued property taxes | 20,400 | 34,200 |
Total current liabilities | 1,963,000 | 1,316,400 |
Total liabilities | 1,963,000 | 1,316,400 |
Shareholders’ equity: | ||
Common stock; $0.10 par value, authorized 50,000,000 shares; issued and outstanding 11,576,539 shares (2015) and 11,549,789 shares (2014) | 1,157,700 | 1,155,000 |
Capital in excess of par | 5,735,200 | 5,713,800 |
Retained earnings | 2,927,300 | 2,243,700 |
Total shareholders’ equity | 9,820,200 | 9,112,500 |
Total liabilities and shareholders’ equity | $11,783,200 | $10,428,900 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
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 | 11,576,539 | 11,549,789 |
Common stock, shares outstanding | 11,576,539 | 11,549,789 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Cash flows from operating activities: | ||
Net income | $683,600 | $497,600 |
Adjustment to reconcile net income to net cash used by operating activities: | ||
Depreciation and amortization | 39,500 | 35,800 |
Stock-based compensation | 17,200 | 17,500 |
Change in operating assets and liabilities: | ||
Trade receivables | -987,800 | -561,600 |
Inventories | -256,400 | 170,500 |
Prepaid expenses and other assets | 3,100 | 55,900 |
Income taxes (receivable) payable | 6,600 | 8,400 |
Accounts payable and accrued expenses | 643,700 | -330,100 |
Total adjustments to net income | -534,100 | -603,600 |
Net Cash Provided (Used) by Operating Activities | 149,500 | -106,000 |
Cash flow from investing activities: | ||
Purchase of property, plant and equipment | -7,400 | -9,900 |
Net Cash Used by Investing Activities | -7,400 | -9,900 |
Cash flow from financing activities: | ||
Proceeds from exercise of stock options | 6,900 | 0 |
Net Cash Provided by Financing Activities | 6,900 | 0 |
Net Increase (Decrease) in Cash and Cash Equivalents | 149,000 | -115,900 |
Cash and Cash Equivalents, beginning of period | 5,896,600 | 3,126,200 |
Cash and Cash Equivalents, end of period | 6,045,600 | 3,010,300 |
Supplemental disclosures: | ||
Cash paid during the period for interest | $7,300 | $7,200 |
Organization_and_Summary_of_Si
Organization and Summary of Significant Accounting Policies | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Accounting Policies [Abstract] | ||||||||
Organization and Summary of Significant Accounting Policies | Note 1. | Organization and Summary of Significant Accounting Policies. | ||||||
(a) | Company Background | |||||||
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) | Basis of Presentation | |||||||
The Consolidated Statements of Operations, Consolidated Balance Sheets, and the Consolidated Statements of Cash Flows included in this Report have been prepared by the Company. In our opinion, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position at March 31, 2015 and results of operations and cash flows for all periods have been made. | ||||||||
Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission. These consolidated financial statements should be read in conjunction with our financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2014. The results of operations for the period ended March 31, 2015 are not necessarily indicative of the operating results for the full year. | ||||||||
(d) | 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, and stock-based compensation. Actual results could differ from our estimates. | ||||||||
(e) | 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. | ||||||||
(f) | Sale of Accounts Receivable | |||||||
On November 3, 2008, effective as of October 31, 2008, we entered into a financing agreement with Summit Financial Resources, L.P. (“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 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 March 31, 2015, 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 2015 and 2014, we did not sell any of our accounts receivables to Summit. At March 31, 2015 and December 31, 2014 the entire credit line of $1.5 million was available for future factoring of accounts receivable invoices and borrowings secured by our inventory. | ||||||||
We report these transactions using the authoritative guidance of the Financial Accounting Standards Board (“FASB”) as a secured borrowing rather than as a sale. As a result, affected accounts receivable 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 provided (used) by operating activities” within the “Adjustment to reconcile net income to net cash used by operating activities” section of our Consolidated Statements of Cash Flows. | ||||||||
On March 16, 2011, with the consent of Summit, we entered into a financing agreement with Wells Fargo Bank, National Association (“Wells Fargo”) for the purpose of further lowering the cost of borrowing associated with the financing of our accounts receivable. Pursuant to this agreement, we may sell accounts receivables from one of our largest customers, Wal-Mart Stores, Inc. (“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 receivable sold, typically ranging from 102 to 105 days. At March 31, 2015, Wells Fargo used the 104-day LIBOR rate of 0.32%. | ||||||||
The agreement has no fixed termination date, but continues unless terminated by either party giving 30 days prior written notice to the other party. During the three months ended March 31, 2015 and 2014, we sold approximately $1,055,000 and $1,038,900, respectively, of our relevant accounts receivable to Wells Fargo for approximately $1,050,600 and $1,034,700, respectively. The difference between the invoiced amount of the receivable 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. | ||||||||
(g) | 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. | ||||||||
Inventories were comprised of the following at: | ||||||||
31-Mar-15 | December 31,2014 | |||||||
Finished goods | $ | 1,948,800 | $ | 1,626,300 | ||||
Raw materials | 1,051,700 | 1,117,800 | ||||||
Inventory reserve for obsolescence | (54,400 | ) | (54,400 | ) | ||||
$ | 2,946,100 | $ | 2,689,700 | |||||
(h) | 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 years 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. | ||||||||
(i) | 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 March 31, 2015, 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 March 31, 2015 and December 31, 2014 we had no long-term debt. | ||||||||
(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 or expense. 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 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 is influenced by several factors, including the promotional efforts of our customers, changes in 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 March 31, 2015 and December 31, 2014 approximately $599,300 and $795,300, respectively, had been reserved as a reduction of accounts receivable. Trade promotions to our customers and incentives such as coupons to our consumers are deducted from gross sales and totaled $510,100 and $529,800 for the three months ended March 31, 2015 and 2014, respectively. | ||||||||
(l) | Advertising Costs | |||||||
Advertising costs are expensed as incurred. | ||||||||
(m) | Stock-based Compensation | |||||||
During the three months ended March 31, 2015 and 2014, we did not grant any stock options. | ||||||||
Compensation cost related to stock options recognized in operating results (included in general and administrative expenses) under authoritative guidance issued by the FASB was $17,200 and $17,500 in the three months ended March 31, 2015 and 2014, respectively. Approximately $225,300 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 employees, as these were qualified stock options which are not normally tax deductible. With respect to the non-cash expense associated with options granted to the non-employee directors, no tax benefit is 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 $344,000 and $354,500 for the three months ended March 31, 2015 and 2014, 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 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. | ||||||||
Earnings_Per_Share
Earnings Per Share | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Earnings Per Share [Abstract] | ||||||||
Earnings Per Share | Note 2. | Earnings per Share. | ||||||
We present basic and diluted earnings or loss 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 397,500 and 110,000 shares outstanding at March 31, 2015 and 2014, 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 three months ended March 31, 2015 and 2014 is as follows: | ||||||||
2015 | 2014 | |||||||
Common shares outstanding, beginning of the year | 11,549,789 | 11,446,800 | ||||||
Weighted average common shares issued | 7,492 | 0 | ||||||
Weighted average number of common shares outstanding | 11,557,281 | 11,446,800 | ||||||
Dilutive effect of common share equivalents | 317,308 | 215,696 | ||||||
Diluted weighted average number of common shares outstanding | 11,874,589 | 11,662,496 | ||||||
We have authorized 20,000,000 shares of preferred stock issuable in one or more series, none of which is issued or outstanding as of March 31, 2015. |
Segment_Information
Segment Information | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||
Segment Information | Note 3. | 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. We have 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 for the three months ended March 31: | ||||||||||||||||
2015 | 2014 | |||||||||||||||
Household | Skin and | Household | Skin and | |||||||||||||
Products | Hair Care | Products | Hair Care | |||||||||||||
Products | Products | |||||||||||||||
Net sales to external customers | $ | 1,613,300 | $ | 5,334,900 | $ | 1,360,600 | $ | 4,123,200 | ||||||||
Cost of sales | 759,800 | 2,979,600 | 712,300 | 2,264,300 | ||||||||||||
Advertising expenses | 101,200 | 146,000 | 181,100 | 18,500 | ||||||||||||
Selling expenses | 439,300 | 913,900 | 381,900 | 750,600 | ||||||||||||
General and administrative expenses | 405,100 | 504,100 | 320,000 | 350,500 | ||||||||||||
Total operating costs and expenses | 1,705,400 | 4,543,600 | 1,595,300 | 3,383,900 | ||||||||||||
(Loss) income from operations | (92,100 | ) | 791,300 | (234,700 | ) | 739,300 | ||||||||||
Other income | 1,000 | 3,100 | 6,100 | 2,500 | ||||||||||||
Interest expense | (1,800 | ) | (5,500 | ) | (1,800 | ) | (5,400 | ) | ||||||||
(Loss) income before income taxes | $ | (92,900 | ) | $ | 788,900 | $ | (230,400 | ) | $ | 736,400 | ||||||
Identifiable assets | $ | 6,126,700 | $ | 4,413,100 | $ | 3,476,500 | $ | 3,875,400 | ||||||||
The following is a reconciliation of segment information to consolidated information for the three months ended March 31: | ||||||||||||||||
2015 | 2014 | |||||||||||||||
Net sales to external customers | $ | 6,948,200 | $ | 5,483,800 | ||||||||||||
Consolidated income before income | $ | 696,000 | $ | 506,000 | ||||||||||||
taxes | ||||||||||||||||
Identifiable assets | $ | 10,539,800 | $ | 7,351,900 | ||||||||||||
Corporate assets | 1,243,400 | 1,199,600 | ||||||||||||||
Consolidated total assets | $ | 11,783,200 | $ | 8,551,500 | ||||||||||||
Corporate assets noted above are comprised primarily of our cash and investments, and property and equipment not directly associated with our manufacturing, warehousing, shipping and receiving activities. | ||||||||||||||||
Organization_and_Summary_of_Si1
Organization and Summary of Significant Accounting Policies (Policies) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
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. | ||||||||
Basis of Presentation | (c) | Basis of Presentation | ||||||
The Consolidated Statements of Operations, Consolidated Balance Sheets, and the Consolidated Statements of Cash Flows included in this Report have been prepared by the Company. In our opinion, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position at March 31, 2015 and results of operations and cash flows for all periods have been made. | ||||||||
Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission. These consolidated financial statements should be read in conjunction with our financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2014. The results of operations for the period ended March 31, 2015 are not necessarily indicative of the operating results for the full year. | ||||||||
Use of Estimates | (d) | 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, and stock-based compensation. Actual results could differ from our estimates. | ||||||||
Cash Equivalents | (e) | 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 | (f) | Sale of Accounts Receivable | ||||||
On November 3, 2008, effective as of October 31, 2008, we entered into a financing agreement with Summit Financial Resources, L.P. (“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 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 March 31, 2015, 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 2015 and 2014, we did not sell any of our accounts receivables to Summit. At March 31, 2015 and December 31, 2014 the entire credit line of $1.5 million was available for future factoring of accounts receivable invoices and borrowings secured by our inventory. | ||||||||
We report these transactions using the authoritative guidance of the Financial Accounting Standards Board (“FASB”) as a secured borrowing rather than as a sale. As a result, affected accounts receivable 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 provided (used) by operating activities” within the “Adjustment to reconcile net income to net cash used by operating activities” section of our Consolidated Statements of Cash Flows. | ||||||||
On March 16, 2011, with the consent of Summit, we entered into a financing agreement with Wells Fargo Bank, National Association (“Wells Fargo”) for the purpose of further lowering the cost of borrowing associated with the financing of our accounts receivable. Pursuant to this agreement, we may sell accounts receivables from one of our largest customers, Wal-Mart Stores, Inc. (“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 receivable sold, typically ranging from 102 to 105 days. At March 31, 2015, Wells Fargo used the 104-day LIBOR rate of 0.32%. | ||||||||
The agreement has no fixed termination date, but continues unless terminated by either party giving 30 days prior written notice to the other party. During the three months ended March 31, 2015 and 2014, we sold approximately $1,055,000 and $1,038,900, respectively, of our relevant accounts receivable to Wells Fargo for approximately $1,050,600 and $1,034,700, respectively. The difference between the invoiced amount of the receivable 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 | (g) | 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. | ||||||||
Inventories were comprised of the following at: | ||||||||
31-Mar-15 | December 31,2014 | |||||||
Finished goods | $ | 1,948,800 | $ | 1,626,300 | ||||
Raw materials | 1,051,700 | 1,117,800 | ||||||
Inventory reserve for obsolescence | (54,400 | ) | (54,400 | ) | ||||
$ | 2,946,100 | $ | 2,689,700 | |||||
Property, Plant and Equipment | (h) | 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 years 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 | (i) | 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 March 31, 2015, 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 March 31, 2015 and December 31, 2014 we had no long-term debt. | ||||||||
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 or expense. 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 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 is influenced by several factors, including the promotional efforts of our customers, changes in 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 March 31, 2015 and December 31, 2014 approximately $599,300 and $795,300, respectively, had been reserved as a reduction of accounts receivable. Trade promotions to our customers and incentives such as coupons to our consumers are deducted from gross sales and totaled $510,100 and $529,800 for the three months ended March 31, 2015 and 2014, respectively. | ||||||||
Advertising Costs | (l) | Advertising Costs | ||||||
Advertising costs are expensed as incurred. | ||||||||
Stock-based Compensation | (m) | Stock-based Compensation | ||||||
During the three months ended March 31, 2015 and 2014, we did not grant any stock options. | ||||||||
Compensation cost related to stock options recognized in operating results (included in general and administrative expenses) under authoritative guidance issued by the FASB was $17,200 and $17,500 in the three months ended March 31, 2015 and 2014, respectively. Approximately $225,300 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 employees, as these were qualified stock options which are not normally tax deductible. With respect to the non-cash expense associated with options granted to the non-employee directors, no tax benefit is 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 $344,000 and $354,500 for the three months ended March 31, 2015 and 2014, 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 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. |
Organization_and_Summary_of_Si2
Organization and Summary of Significant Accounting Policies (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Accounting Policies [Abstract] | ||||||||
Composition of Inventory | ||||||||
Inventories were comprised of the following at: | ||||||||
31-Mar-15 | December 31,2014 | |||||||
Finished goods | $ | 1,948,800 | $ | 1,626,300 | ||||
Raw materials | 1,051,700 | 1,117,800 | ||||||
Inventory reserve for obsolescence | (54,400 | ) | (54,400 | ) | ||||
$ | 2,946,100 | $ | 2,689,700 | |||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
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 three months ended March 31, 2015 and 2014 is as follows: | |||||||
2015 | 2014 | |||||||
Common shares outstanding, beginning of the year | 11,549,789 | 11,446,800 | ||||||
Weighted average common shares issued | 7,492 | 0 | ||||||
Weighted average number of common shares outstanding | 11,557,281 | 11,446,800 | ||||||
Dilutive effect of common share equivalents | 317,308 | 215,696 | ||||||
Diluted weighted average number of common shares outstanding | 11,874,589 | 11,662,496 | ||||||
Segment_Information_Tables
Segment Information (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||
Information on Segments | The following provides information on our segments for the three months ended March 31: | |||||||||||||||
2015 | 2014 | |||||||||||||||
Household | Skin and | Household | Skin and | |||||||||||||
Products | Hair Care | Products | Hair Care | |||||||||||||
Products | Products | |||||||||||||||
Net sales to external customers | $ | 1,613,300 | $ | 5,334,900 | $ | 1,360,600 | $ | 4,123,200 | ||||||||
Cost of sales | 759,800 | 2,979,600 | 712,300 | 2,264,300 | ||||||||||||
Advertising expenses | 101,200 | 146,000 | 181,100 | 18,500 | ||||||||||||
Selling expenses | 439,300 | 913,900 | 381,900 | 750,600 | ||||||||||||
General and administrative expenses | 405,100 | 504,100 | 320,000 | 350,500 | ||||||||||||
Total operating costs and expenses | 1,705,400 | 4,543,600 | 1,595,300 | 3,383,900 | ||||||||||||
(Loss) income from operations | (92,100 | ) | 791,300 | (234,700 | ) | 739,300 | ||||||||||
Other income | 1,000 | 3,100 | 6,100 | 2,500 | ||||||||||||
Interest expense | (1,800 | ) | (5,500 | ) | (1,800 | ) | (5,400 | ) | ||||||||
(Loss) income before income taxes | $ | (92,900 | ) | $ | 788,900 | $ | (230,400 | ) | $ | 736,400 | ||||||
Identifiable assets | $ | 6,126,700 | $ | 4,413,100 | $ | 3,476,500 | $ | 3,875,400 | ||||||||
Reconciliation of Segment Information | The following is a reconciliation of segment information to consolidated information for the three months ended March 31: | |||||||||||||||
2015 | 2014 | |||||||||||||||
Net sales to external customers | $ | 6,948,200 | $ | 5,483,800 | ||||||||||||
Consolidated income before income | $ | 696,000 | $ | 506,000 | ||||||||||||
taxes | ||||||||||||||||
Identifiable assets | $ | 10,539,800 | $ | 7,351,900 | ||||||||||||
Corporate assets | 1,243,400 | 1,199,600 | ||||||||||||||
Consolidated total assets | $ | 11,783,200 | $ | 8,551,500 | ||||||||||||
Organization_and_Summary_of_Si3
Organization and Summary of Significant Accounting Policies (Details Textual) (USD $) | 3 Months Ended | 1 Months Ended | 0 Months Ended | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2011 | Mar. 16, 2011 | Mar. 31, 2014 | Dec. 31, 2014 | |
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 receivable portion, Less Than or equal to $1000000 | 0.85% | ||||
Percentage of administrative fees on receivable portion, More Than $1000000 | 0.75% | ||||
Percentage of administrative fees on inventory portion | 1.00% | ||||
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 | |||
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 | ||||
Wells Fargo Bank | |||||
Schedule Of Organization And Presentation Of Financial Statements [Line Items] | |||||
Interest rate of agreement amount | 0.32% | 1.15% | |||
Period of LIBOR rate used | 104 days | ||||
Sale of account receivables | 1,055,000 | 1,038,900 | |||
Proceeds from sale of account receivables | $1,050,600 | $1,034,700 | |||
Period of notice for termination of agreement | 30 days | ||||
Prime Rate | |||||
Schedule Of Organization And Presentation Of Financial Statements [Line Items] | |||||
Interest rate of agreement amount | 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% |
Organization_and_Summary_of_Si4
Organization and Summary of Significant Accounting Policies - Inventories (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Inventory Disclosure [Abstract] | ||
Finished goods | $1,948,800 | $1,626,300 |
Raw materials | 1,051,700 | 1,117,800 |
Inventory reserve for obsolescence | -54,400 | -54,400 |
Inventories, net | $2,946,100 | $2,689,700 |
Organization_and_Summary_of_Si5
Organization and Summary of Significant Accounting Policies (Details Textual 1) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Organization and summary of significant accounting policies (Textual) [Abstract] | |||
Reserve for reduction in account receivables | $599,300 | $795,300 | |
Trade Promotion to Customer | 510,100 | 529,800 | |
Significant financial instruments with off-balance sheet risk | 0 | ||
Long-term debt | 0 | 0 | |
Interest and penalties recognized in statement of operations | 0 | ||
Accrued interest or penalties related to uncertain tax positions | $0 | ||
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_Si6
Organization and Summary of Significant Accounting Policies (Details Textual 2) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Organization and Summary of Significant Accounting Policies (Additional Textual) [Abstract] | ||
Stock-based compensation | $17,200 | $17,500 |
Unrecognized compensation costs related to non-vested stock options | 225,300 | |
Shipping and handling costs | 344,000 | 354,500 |
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 | $17,200 | $17,500 |
Earnings_Per_Share_Details_Tex
Earnings Per Share (Details Textual) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
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 | 397,500 | 110,000 |
Earnings_Per_Share_Details
Earnings Per Share (Details) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | |
Earnings Per Share [Abstract] | |||
Beginning Balance, Shares | 11,549,789 | 11,446,800 | 11,576,539 |
Weighted average common shares issued | 7,492 | 0 | |
Weighted average number of common shares outstanding | 11,557,281 | 11,446,800 | |
Dilutive effect of common share equivalents | 317,308 | 215,696 | |
Diluted weighted average number of common shares outstanding | 11,874,589 | 11,662,496 |
Segment_Information_Details_Te
Segment Information (Details Textual) | 3 Months Ended |
Mar. 31, 2015 | |
Segment | |
Segment Reporting [Abstract] | |
Number of business segment | 2 |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||
Net sales | $6,948,200 | $5,483,800 | |
Cost of sales | 3,739,400 | 2,976,600 | |
Advertising expenses | 247,200 | 199,600 | |
Selling expenses | 1,353,200 | 1,132,500 | |
General and administrative expenses | 909,200 | 670,500 | |
Total operating costs and expenses | 6,249,000 | 4,979,200 | |
Income from operations | 699,200 | 504,600 | |
Other income | 4,100 | 8,600 | |
Interest expense | -7,300 | -7,200 | |
Income before income taxes | 696,000 | 506,000 | |
Total assets | 11,783,200 | 8,551,500 | 10,428,900 |
Household Products | |||
Segment Reporting Information [Line Items] | |||
Net sales | 1,613,300 | 1,360,600 | |
Cost of sales | 759,800 | 712,300 | |
Advertising expenses | 101,200 | 181,100 | |
Selling expenses | 439,300 | 381,900 | |
General and administrative expenses | 405,100 | 320,000 | |
Total operating costs and expenses | 1,705,400 | 1,595,300 | |
Income from operations | -92,100 | -234,700 | |
Other income | 1,000 | 6,100 | |
Interest expense | -1,800 | -1,800 | |
Income before income taxes | -92,900 | -230,400 | |
Total assets | 6,126,700 | 3,476,500 | |
Skin And Hair Care Products | |||
Segment Reporting Information [Line Items] | |||
Net sales | 5,334,900 | 4,123,200 | |
Cost of sales | 2,979,600 | 2,264,300 | |
Advertising expenses | 146,000 | 18,500 | |
Selling expenses | 913,900 | 750,600 | |
General and administrative expenses | 504,100 | 350,500 | |
Total operating costs and expenses | 4,543,600 | 3,383,900 | |
Income from operations | 791,300 | 739,300 | |
Other income | 3,100 | 2,500 | |
Interest expense | -5,500 | -5,400 | |
Income before income taxes | 788,900 | 736,400 | |
Total assets | $4,413,100 | $3,875,400 |
Segment_Information_Details_1
Segment Information (Details 1) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Reconciliation of segment information | |||
Net sales to external customers | $6,948,200 | $5,483,800 | |
Consolidated income before income taxes | 696,000 | 506,000 | |
Total assets | 11,783,200 | 8,551,500 | 10,428,900 |
Operating Segments | |||
Reconciliation of segment information | |||
Total assets | 10,539,800 | 7,351,900 | |
Corporate, Non-Segment | |||
Reconciliation of segment information | |||
Total assets | $1,243,400 | $1,199,600 |