Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 26, 2016 | Jun. 30, 2015 | |
Entity Registrant Name | ALPHA PRO TECH LTD | ||
Entity Central Index Key | 884,269 | ||
Trading Symbol | apt | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Common Stock, Shares Outstanding (in shares) | 17,850,454 | ||
Entity Public Float | $ 34,458,372 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash | $ 9,681,000 | $ 5,495,000 |
Investments | 656,000 | 2,840,000 |
Accounts receivable, net of allowance for doubtful accounts of $46,000 and $60,000 as of December 31, 2015 and 2014, respectively | 2,762,000 | 5,333,000 |
Accounts receivable, related party | 8,000 | 333,000 |
Inventories | 16,398,000 | 16,544,000 |
Prepaid expenses | 3,092,000 | 4,472,000 |
Deferred income tax assets | 484,000 | 486,000 |
Total current assets | 33,081,000 | 35,503,000 |
Property and equipment, net | 2,907,000 | 3,315,000 |
Goodwill | 55,000 | 55,000 |
Definite-lived intangible assets, net | 51,000 | 71,000 |
Equity investments in unconsolidated affiliate | 3,040,000 | 3,008,000 |
Total assets | 39,134,000 | 41,952,000 |
Current liabilities: | ||
Accounts payable | 1,027,000 | 1,099,000 |
Accrued liabilities | 1,128,000 | 1,195,000 |
Total current liabilities | 2,155,000 | 2,294,000 |
Deferred income tax liabilities | 867,000 | 1,752,000 |
Total liabilities | $ 3,022,000 | $ 4,046,000 |
Commitments (Notes 9 and 12) | ||
Shareholders' equity: | ||
Common stock, $.01 par value: 50,000,000 shares authorized; 17,850,456 and 18,348,556 shares outstanding as of December 31, 2015 and 2014, respectively | $ 178,000 | $ 183,000 |
Additional paid-in capital | 16,526,000 | 17,833,000 |
Accumulated other comprehensive income (loss) | (148,000) | 1,375,000 |
Retained earnings | 19,556,000 | 18,515,000 |
Total shareholders' equity | 36,112,000 | 37,906,000 |
Total liabilities and shareholders' equity | $ 39,134,000 | $ 41,952,000 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Allowance for doubtful accounts | $ 46,000 | $ 60,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, shares outstanding (in shares) | 17,850,456 | 18,348,556 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Net sales | $ 44,955,000 | $ 47,649,000 |
Cost of goods sold, excluding depreciation and amortization | 28,983,000 | 30,197,000 |
Gross profit | 15,972,000 | 17,452,000 |
Operating expenses: | ||
Selling, general and administrative | 13,794,000 | 13,513,000 |
Depreciation and amortization | 703,000 | 721,000 |
Total operating expenses | 14,497,000 | 14,234,000 |
Income from operations | 1,475,000 | 3,218,000 |
Other income: | ||
Equity in income of unconsolidated affiliate | $ 32,000 | 300,000 |
Gain on sale of marketable securities and investment in common stock warrants | 409,000 | |
Interest income, net | $ 14,000 | 16,000 |
Total other income | 46,000 | 725,000 |
Income before provision for income taxes | 1,521,000 | 3,943,000 |
Provision for income taxes | 480,000 | 1,201,000 |
Net income | $ 1,041,000 | $ 2,742,000 |
Basic earnings per common share (in dollars per share) | $ 0.06 | $ 0.15 |
Diluted earnings per common share (in dollars per share) | $ 0.06 | $ 0.15 |
Basic weighted average common shares outstanding (in shares) | 18,197,109 | 18,414,775 |
Diluted weighted average common shares outstanding (in shares) | 18,238,364 | 18,724,185 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Net income | $ 1,041,000 | $ 2,742,000 |
Other comprehensive income (loss): | ||
Change in unrealized gain (loss) on marketable securities, net of tax | $ (1,523,000) | 995,000 |
Reclassification adjustment for gains included in net income | (245,000) | |
Total other comprehensive income (loss) | $ (1,523,000) | 750,000 |
Comprehensive income (loss) | $ (482,000) | $ 3,492,000 |
Consolidated Statement of Share
Consolidated Statement of Shareholders' Equity - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Total |
Balance (in shares) at Dec. 31, 2013 | 18,878,109 | ||||
Balance at Dec. 31, 2013 | $ 189,000 | $ 18,994,000 | $ 625,000 | $ 15,773,000 | $ 35,581,000 |
Options exercised (in shares) | 490,000 | 490,000 | |||
Options exercised | $ 5,000 | 770,000 | $ 775,000 | ||
Common stock repurchased and retired (in shares) | (1,019,553) | (1,019,553) | |||
Common stock repurchased and retired | $ (11,000) | (2,195,000) | $ (2,206,000) | ||
Excess tax benefit from stock options exercised | 231,000 | 231,000 | |||
Share-based compensation expense | 33,000 | 33,000 | |||
Net income | 2,742,000 | ||||
Other comprehensive income | $ 750,000 | ||||
Balance (in shares) at Dec. 31, 2014 | 18,348,556 | 18,348,556 | |||
Balance at Dec. 31, 2014 | $ 183,000 | 17,833,000 | 1,375,000 | 18,515,000 | $ 37,906,000 |
Options exercised (in shares) | 475,000 | 475,000 | |||
Options exercised | $ 5,000 | 760,000 | $ 765,000 | ||
Common stock repurchased and retired (in shares) | (973,100) | (973,100) | |||
Common stock repurchased and retired | $ (10,000) | (2,100,000) | $ (2,110,000) | ||
Excess tax benefit from stock options exercised | 9,000 | 9,000 | |||
Share-based compensation expense | 24,000 | 24,000 | |||
Net income | 1,041,000 | ||||
Other comprehensive income | (1,523,000) | $ (1,523,000) | |||
Balance (in shares) at Dec. 31, 2015 | 17,850,456 | 17,850,456 | |||
Balance at Dec. 31, 2015 | $ 178,000 | $ 16,526,000 | $ (148,000) | $ 19,556,000 | $ 36,112,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Cash Flows From Operating Activities: | ||
Net income | $ 1,041,000 | $ 2,742,000 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Share-based compensation | 24,000 | 33,000 |
Depreciation and amortization | 703,000 | 721,000 |
Equity in income of unconsolidated affiliate | $ (32,000) | (300,000) |
Gain on investment in common stock warrants | (30,000) | |
Gain on sale of marketable securities | (379,000) | |
Deferred income taxes | $ (48,000) | 267,000 |
Changes in assets and liabilities: | ||
Accounts receivable, net | 2,571,000 | (518,000) |
Accounts receivable, related party | 325,000 | (77,000) |
Inventories | 146,000 | (2,404,000) |
Prepaid expenses | 1,380,000 | (1,504,000) |
Accounts payable and accrued liabilities | (139,000) | 570,000 |
Net cash provided by (used in) operating activities | 5,971,000 | (879,000) |
Cash Flows From Investing Activities: | ||
Purchase of property and equipment | (274,000) | (947,000) |
Purchase of investments | (175,000) | (134,000) |
Proceeds from sale of investments | 0 | 440,000 |
Net cash used in investing activities | (449,000) | (641,000) |
Cash Flows From Financing Activities: | ||
Proceeds from exercise of stock options | 765,000 | 775,000 |
Repurchase of common stock | (2,110,000) | (2,206,000) |
Excess tax benefit from stock options exercised | 9,000 | 231,000 |
Net cash used in financing activities | (1,336,000) | (1,200,000) |
Increase (decrease) in cash | 4,186,000 | (2,720,000) |
Cash, beginning of the year | 5,495,000 | 8,215,000 |
Cash, end of the year | 9,681,000 | 5,495,000 |
Supplemental disclosure of cash flow information: | ||
Cash paid for income taxes | $ 303,000 | $ 968,000 |
Note 1 - The Company
Note 1 - The Company | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Nature of Operations [Text Block] | 1. The Company Alpha Pro Tech, Ltd. (“Alpha Pro Tech” or the “Company”) is in the business of protecting people, products and environments. The Company accomplishes this by developing, manufacturing and marketing a line of disposable protective apparel for the cleanroom, the industrial markets and the pharmaceutical markets; a line of building supply products for the new home and re-roofing markets; and a line of infection control products for the medical and dental markets. The Building Supply segment consists of construction weatherization products, such as housewrap and synthetic roof underlayment as well as other woven material. The Disposable Protective Apparel segment consists of a complete line of shoecovers, bouffant caps, coveralls, gowns, frocks and lab coats. The Infection Control segment consists of a line of face masks and eye shields. The Company’s products are sold under the "Alpha Pro Tech" brand name, and under private label, and are predominantly sold in the United States of America (“US”). |
Note 2 - Summary of Significant
Note 2 - Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | 2. Summary of Significant Accounting Policies Principles of Consolidation The consolidated financial statements of the Company include the accounts of the Company and its wholly owned subsidiaries, Alpha Pro Tech, Inc. and Alpha ProTech Engineered Products, Inc. All significant intercompany accounts and transactions have been eliminated. Events that occurred after December 31, 2015 through the date that these financial statements were filed with the Securities and Exchange Commission (“SEC”) were considered in the preparation of these financial statements. Periods Presented All amounts have been rounded to the nearest thousand with the exception of the share data. The Company qualified as a smaller reporting company at the measurement date for determining such qualification during 2015. According to the disclosure requirements for smaller reporting companies, the Company has included balance sheets as of the end of the two most recent years and statements of income, comprehensive income (loss), shareholders’ equity and cash flows for each of the two most recent years. Investments The Company periodically invests a portion of its cash in excess of short-term operating needs in marketable debt and equity securities. These investments are classified as available-for-sale in accordance with US generally accepted accounting principles (“US GAAP”). The Company does not have any investments in securities that are classified as held-to-maturity or trading. Available-for-sale investments are carried at their fair values using quoted prices in active markets for identical securities, with unrealized gains and losses, net of deferred income taxes, reported as a component of accumulated other comprehensive income (loss). Realized gains and losses, and declines in value deemed to be other-than-temporary on available-for-sale investments, are recognized in net income. The cost of securities sold is based on the specific identification method. Investments that the Company intends to hold for more than one year are classified as long-term investments in the accompanying balance sheets. The Company had an investment in non-trading warrants to purchase common stock in a publicly traded entity. These warrants were derivatives that were carried at fair value in the accompanying balance sheets. Gains or losses from changes in the fair value of the warrants are recognized in the accompanying statements of income in the period in which they occurred. Accounts Receivable Accounts receivable are recorded at the invoice amount and do not bear interest. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in the Company’s existing accounts receivable; however, changes in circumstances relating to accounts receivable may result in a requirement for additional allowances in the future. The Company determines the allowance based upon historical write-off experience and known conditions about its customers’ current ability to pay. Account balances are charged against the allowance when management determines that the probability for collection is remote. Inventories Inventories include freight-in, materials, labor and overhead costs and are stated at the lower of cost or market. Allowances are recorded for slow-moving, obsolete or unusable inventories. The Company assesses inventories for estimated obsolescence or unmarketable products and writes down the difference between the cost of the inventories and the estimated market values based upon assumptions about future sales and supplies on-hand. Property and Equipment Property and equipment are stated at cost less accumulated depreciation and amortization. Property and equipment are depreciated or amortized using the straight-line method over the shorter of the respective useful lives of the assets or the related lease terms as follows: Buildings (in years) 25 Machinery and equipment (in years) 5 - 15 Office furniture and equipment (in years) 2 - 7 Leasehold improvements (in years) 4 - 5 Expenditures for renewals and betterments are capitalized, whereas costs of maintenance and repairs are charged to operations in the period incurred. Goodwill and Intangible Assets The Company accounts for goodwill and definite-lived intangible assets in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 350, Intangibles – Goodwill and Other Fair Value of Financial Instruments The estimated fair values of financial instruments are determined based on relevant market information and cannot be determined with precision. The Company’s financial instruments consist primarily of cash and marketable securities. The Company’s marketable securities are classified as available-for-sale and are carried at fair market value based on quoted market prices. Impairment of Long-Lived Assets The Company reviews long-lived assets for impairment whenever events or changes in its business circumstances indicate that the carrying amounts of the assets may not be fully recoverable. If it is determined that the undiscounted future net cash flows are not sufficient to recover the carrying values of the assets, an impairment loss is recognized for the excess of the carrying values over the fair values of the assets. The Company believes that the future undiscounted net cash flows to be received from its long-lived assets exceed the assets’ carrying values and, accordingly, the Company has not recognized any impairment losses for the years ended December 31, 2015 and 2014. Revenue Recognition Sales are recognized when the following criteria are met: (1) persuasive evidence of an arrangement exists; (2) title transfers and the customer assumes the risk of loss; (3) the selling price is fixed or determinable; and (4) collection of the resulting receivable is reasonably assured. These criteria are satisfied upon shipment of product. Sales are reduced for any anticipated sales returns, rebates and allowances based on historical data. Shipping and Handling Costs The costs of shipping products to distributors are recorded in cost of goods sold. Stock-Based Compensation The Company maintains a stock option plan under which the Company may grant incentive stock options and non-qualified stock options to employees and non-employee directors. Stock options have been granted with exercise prices at or above the fair market value of the underlying shares of common stock on the date of grant. Options vest and expire according to terms established at the grant date . The Company accounts for stock-based awards in accordance with ASC 718, Stock Compensation For the years ended December 31, 2015 and 2014, there were 120,000 and zero stock options granted, respectively, under the Company’s option plan. The Company recognized $24,000 and $33,000 in share-based compensation expense for the years ended December 31, 2015 and 2014, respectively, related to issued options. Income Taxes The Company accounts for income taxes using the asset and liability method. A valuation allowance is recorded to reduce the carrying amounts of deferred income tax assets unless it is more likely than not that such assets will be realized. The Company’s policy is to record any interest and penalties assessed by the Internal Revenue Service as a component of the provision for income taxes. The Company presents taxes assessed by governmental authorities on revenue-producing activities (i.e., sales tax) on a net basis in the accompanying statements of income. The Company provides allowances for uncertain income tax positions when it is more likely than not that the position will not be sustained upon examination by the tax authority. Alpha Pro Tech, Ltd. and its subsidiaries file income tax returns in the US federal jurisdiction, and in various state and foreign jurisdictions. With limited exceptions, the Company is no longer subject to US federal, state or local income tax examination by tax authorities for years before 2012. The Company is not currently under examination in any of the jurisdictions in which it operates. Earnings Per Common Share The following table provides a reconciliation of both net income and the number of shares used in the computation of “basic” earnings per common share (“EPS”), which utilizes the weighted average number of common shares outstanding without regard to common stock equivalents, and “diluted” EPS, which includes all common stock equivalents which are dilutive for the years ended December 31, 2015 and 2014. Years Ended December 31, 2015 2014 Net income (numerator) $ 1,041,000 $ 2,742,000 Shares (denominator): Basic weighted average common shares outstanding 18,197,109 18,414,775 Add: Dilutive effect of common stock options 41,255 309,410 Diluted weighted average common shares outstanding 18,238,364 18,724,185 Earnings per common share: Basic $ 0.06 $ 0.15 Diluted $ 0.06 $ 0.15 Translation of Foreign Currencies Transactions in foreign currencies are translated into US dollars at the exchange rate prevailing at the transaction date. Monetary assets and liabilities in foreign currencies at each period end are translated at the exchange rate in effect at that date. Transaction gains or losses on foreign currencies are reflected in selling, general and administrative expenses and were not material for the years ended December 31, 2015 and 2014. The Company does not have a material foreign currency exposure due to the fact that all purchase agreements with companies in Asia and Mexico are in US dollars. In addition, all sales transactions are in US dollars. The Company’s only foreign currency exposure is with its Canadian branch office. The foreign currency exposure is not material due to the fact that the Company does not manufacture in Canada. The exposure primarily relates to payroll expenses in the Company’s administrative branch office in Canada. Research and Development Costs Research and development costs are expensed as incurred and are included in selling, general and administrative expenses. Such costs were not material for the years ended December 31, 2015 and 2014. Advertising Costs The Company expenses advertising costs as incurred. These costs are included in selling, general and administrative expenses and were $37,000 and $38,000 for the years ended December 31, 2015 and 2014, respectively. Use of Estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses for the reporting period. Actual results could differ from these estimates. Fair Value Measurements FASB ASC 820, Fair Value Measurements and Disclosures This hierarchy requires the Company to minimize the use of unobservable inputs and to use observable market data, if available, when determining fair value. The fair values of the Company's financial assets as of December 31, 2015 and 2014 were determined using the following levels of inputs: • Level 1—Quoted prices for identical instruments in active markets; • Level 2—Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets; and • Level 3—Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. Fair Value Measurements as of December 31, Total Level 1 Level 2 Level 3 Assets: Marketable securities - 2015 $ 656,000 $ 656,000 $ - $ - Marketable securities - 2014 2,840,000 2,840,000 - - The fair values for the marketable securities, classified as Level 1, were obtained from quoted market prices. New Accounting Standards Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory In November 2015, the FASB issued ASU 2015-17, Income Taxes Balance Sheet Classification of Deferred Taxes In February 2016, the FASB issued ASU No. 2016-02, Leases Management periodically reviews new accounting standards that are issued. Management has not identified any other new standards that it believes merit further discussion. |
Note 3 - Investments
Note 3 - Investments | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | 3. Investments As of December 31, 2015, investments totaled $656,000, which consisted of marketable securities. As of December 31, 2014, investments totaled $2,840,000, which consisted of marketable securities. The following provides information regarding the Company’s marketable securities as of December 31, 2015 and 2014: December 31, 2015 2014 Cost basis $ 502,000 $ 327,000 Gain previously recognized on warrants 380,000 380,000 Gain (loss) included in accumulated other comprehensive income (loss) (226,000 ) 2,133,000 Fair value $ 656,000 $ 2,840,000 No marketable securities were sold during the year ended December 31, 2015. The change in unrealized loss of $1,523,000 and unrealized gain of $995,000 in the statements of comprehensive income (loss) are presented net of tax for the years ended December 31, 2015 and 2014, respectively. The tax benefit on the unrealized loss was $835,000, and the tax expense on unrealized gain was $382,000, in 2015 and 2014, respectively. The Company held warrants to purchase common stock in an entity that were exercisable up to 167,500 shares of the entity. During 2014, all warrants were exercised. The following provides information regarding the Company’s investment in common stock warrants during the years ended December 31, 2015 and 2014: December 31, 2015 2014 Beginning balance $ - $ 350,000 Fair value change in common stock warrants (1) - 30,000 Fair value of warrants exercised - (380,000 ) Ending balance $ - $ - (1) Amounts are recognized in other income on the accompanying consolidated statement of income |
Note 4 - Inventories
Note 4 - Inventories | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | 4 . Inventories Inventories consisted of the following: December 31, 2015 2014 Raw materials $ 6,456,000 $ 6,436,000 Work in process 4,143,000 4,834,000 Finished goods 5,799,000 5,274,000 $ 16,398,000 $ 16,544,000 |
Note 5 - Property and Equipment
Note 5 - Property and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | 5 . Property and Equipment Property and equipment consisted of the following: December 31, 2015 2014 Buildings $ 355,000 $ 355,000 Machinery and equipment 10,515,000 10,622,000 Office furniture and equipment 1,074,000 1,027,000 Leasehold improvements 497,000 463,000 12,441,000 12,467,000 Less accumulated depreciation and amortization (9,534,000 ) (9,152,000 ) $ 2,907,000 $ 3,315,000 Depreciation and amortization expense for property and equipment was $683,000 and $701,000 for the years ended December 31, 2015 and 2014, respectively. |
Note 6 - Goodwill and Intangibl
Note 6 - Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | 6. Goodwill and Intangible Assets Management evaluates goodwill for impairment on an annual basis (fourth quarter), and no impairment charge was identified for the years presented. Definite-lived intangible assets, consisting of patents and trademarks, are amortized over their useful lives. Intangible assets consisted of the following: December 31, 2015 December 31, 2014 Weighted Average Amortization Period (Years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Amortization Period (Years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Patents and Trademarks 5.0 $ 474,000 $ (423,000 ) $ 51,000 5.0 $ 474,000 $ (403,000 ) $ 71,000 Amortization expense for intangible assets was $20,000 for the years ended December 31, 2015 and 2014. Estimated future amortization expense related to definite-lived intangible assets is as follows: Years ending December 31 , 2016 $ 18,000 2017 11,000 2018 6,000 2019 ` 4,000 2020 2,000 Thereafter 10,000 $ 51,000 |
Note 7 - Equity Investments in
Note 7 - Equity Investments in Unconsolidated Affiliate | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Equity Method Investments and Joint Ventures Disclosure [Text Block] | 7. Equity Investments in Unconsolidated Affiliate In 2005, Alpha ProTech Engineered Products, Inc. (a subsidiary of Alpha Pro Tech, Ltd.) entered into a joint venture with a manufacturer in India for the production of building products. Under the terms of the joint venture agreement, a private company, Harmony Plastics Private Limited (“Harmony”), was created with ownership interests of 41.66% by Alpha ProTech Engineered Products, Inc. and 58.34% by Maple Industries and Associates. This joint venture positions Alpha ProTech Engineered Products, Inc. to respond to current and expected increased product demand for housewrap and synthetic roof underlayment and provides future capacity for sales of specialty roofing component products and custom products for industrial applications requiring high quality extrusion coated fabrics. The joint venture also supplies products for the Disposable Protective Apparel segment. The capital from the initial funding and a bank loan, which loan is guaranteed exclusively by the individual shareholders of Maple Industries and Associates and collateralized by the assets of Harmony, were utilized to purchase the original manufacturing facility in India. Harmony currently has five facilities in India (three owned and two rented), consisting of: (1) a 102,000 square foot building for manufacturing building products; (2) a 71,500 square foot building for manufacturing coated material and sewing proprietary disposable protective apparel; (3) a 16,000 square foot facility for sewing proprietary disposable protective apparel; (4) a 12,000 square foot rented facility that coats material; and (5) a 93,000 square foot rental for manufacturing of building products. All additions have been financed by Harmony with no guarantees from the Company. In accordance with ASC 810, Consolidation The Company records its investment in Harmony as “equity investments in unconsolidated affiliate” in the accompanying balance sheets. The Company records its equity interest in Harmony’s results of operations as “equity in income of unconsolidated affiliate” in the accompanying statements of income. The Company reviews annually its investment in Harmony for impairment. Management has determined that no impairment existed as of December 31, 2015 and 2014. For the years ended December 31, 2015 and 2014, the Company purchased $14,272,000 and $19,040,000 of inventories, respectively, from Harmony. For the years ended December 31, 2015 and 2014, the Company recorded equity in income of unconsolidated affiliate of $32,000 and $300,000, respectively. As of December 31, 2015, the Company’s investment in Harmony is $3,040,000, which consists of its original $1,450,000 investment and cumulative equity in income of unconsolidated affiliate of $2,609,000, less $942,000 in repayments of an advance and payments of $77,000 in dividends. |
Note 8 - Accrued Liabilities
Note 8 - Accrued Liabilities | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | 8. Accrued Liabilities Accrued liabilities consisted of the following: December 31, 2015 2014 Payroll expenses $ 207,000 $ 192,000 Bonuses payable 727,000 809,000 Uncertain tax position liability (Note 11) 194,000 194,000 $ 1,128,000 $ 1,195,000 |
Note 9 - Notes Payable
Note 9 - Notes Payable | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | 9. Notes Payable The Company maintains a credit facility with Wells Fargo Bank that expires in May 2016. Pursuant to the terms of the credit facility, the Company has borrowing capacity up to $3,500,000 based on eligible accounts receivable and inventories. The credit facility bears interest at prime plus 0.5% (prime rate was 3.50% and 3.25% as of December 31, 2015 and 2014, respectively) and is collateralized by accounts receivable, inventories, trademarks, patents and property and equipment. Under the terms of the facility, the Company pays a 0.6% unused loan fee, on a quarterly basis. As of December 31, 2015, the Company had no outstanding borrowings on its line of credit and no other debt. |
Note 10 - Shareholders' Equity
Note 10 - Shareholders' Equity | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Shareholders' Equity and Share-based Payments [Text Block] | 10. Shareholders' Equity Repurchase Program During the year ended December 31, 2015, the Company repurchased and retired 973,100 shares of its common stock for $2,110,000. During the year ended December 31, 2014, the Company repurchased and retired 1,019,553 shares of its common stock for $2,206,000. As of December 31, 2015, the Company had $1,278,000 available to repurchase common shares under the repurchase program. Option Activity The 2004 Stock Option Plan (the “2004 Plan”) is an equity compensation plan that provides for grants of both incentive stock options and non-qualified stock options to eligible individuals. The 2004 Plan is intended to recognize the contributions made to the Company by key employees of the Company, provide key employees with additional incentive to devote themselves to the future success of the Company and improve the ability of the Company to attract, retain and motivate individuals. The 2004 Plan also is intended as an incentive to certain members of the Board of Directors of the Company to continue to serve on the Board of Directors and to devote themselves to the future success of the Company. The 2004 Plan provides for a total of 5,000,000 common shares eligible for issuance. Under the 2004 Plan, approximately 3,350,000 options had been granted as of December 31, 2015. Under the 2004 Plan, option grants have a three-year vesting period and, since 2005, expire no later than the fifth anniversary from the date of grant. In 2004 and 2005, options granted had an expiration date of 10 years after the date of grant. The exercise price of the options is determined based on the fair value of the stock on the date of grant. The following table summarizes option activity for the years ended December 31, 2015 and 2014: Shares Weighted Average Exercise Price Per Option Options outstanding, December 31, 2013 1,070,000 $ 1.58 Exercised (490,000 ) 1.58 Canceled/expired/forfeited - - Options outstanding, December 31, 2014 580,000 1.58 Granted to non-employee directors 120,000 1.58 Exercised (475,000 ) 1.61 Canceled/expired/forfeited - - Options outstanding, December 31, 2015 225,000 1.52 Options exercisable, December 31, 2015 65,000 1.43 Stock options to purchase 225,000 and 580,000 shares of common stock were outstanding as of December 31, 2015 and 2014, respectively. All of the stock options were included in the computation of the weighted-average number of dilutive common shares outstanding for the year ended December 31, 2015. All except 30,000 of the stock options were included in the computation of the weighted-average number of dilutive common shares outstanding for the year ended December 31, 2014. The fair values of the share-based compensation awards granted were estimated using the Black-Scholes option-pricing model with the following assumptions and weighted average fair values: Stock Options For the Years Ended December 31, 2015 2014 Exercise price $ 1.58 - Risk-free interest rate 1.69 % - Expected volatility 59.20 % - Expected life in years 4.25 - Dividend rate - - Black-Scholes fair value $ 0.75 (1) - (1) The fair value calculation was based on the stock options granted during the year. The Company used the Black-Scholes option-pricing model to value the options. The Company uses historical data to estimate the expected term of the options. The risk-free interest rate for periods within the contractual life of the award is based on the US Treasury rates in effect at the time of grant. The expected volatility is based on historical volatility. The Company uses an estimated dividend payout ratio of zero, as the Company has not paid dividends in the past and, at this time, does not expect to do so in the future. The following table summarizes information about stock options as of December 31, 2015: Options Outstanding Options Exercisable Range of Exercise Prices Options Weighted Average Exercise Price Weighted Average Remaining Contract Life (in years) Aggregate Intrinsic Value Options Weighted Average Exercise Price Weighted Average Remaining Contract Life (in years) Aggregate Intrinsic Value $1.51 - $1.98 225,000 $ 1.52 3.76 $ 51,000 65,000 $ 1.43 2.29 $ 21,000 The intrinsic value is the amount by which the market value of the underlying common stock exceeds the exercise price of the respective stock options. The aggregate intrinsic value of stock options exercised during the years ended December 31, 2015 and 2014 was $340,000 and $1,057,000, respectively. As of December 31, 2015, $107,000 of total unrecognized compensation cost related to stock options is expected to be recognized over a weighted-average remaining period of 2.45 years. Cash received from 475,000 options exercised for the year ended December 31, 2015 was $765,000 . |
Note 11 - Income Taxes
Note 11 - Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 11. Income Taxes The provision (benefit) for income taxes consisted of the following : For the Years Ended December 31, 2015 2014 Current $ 528,000 $ 934,000 Deferred (48,000 ) 267,000 $ 480,000 $ 1,201,000 Deferred income tax assets (liabilities) consisted of the following: December 31, 2015 2014 Current deferred income taxes: Foreign tax credits $ 66,000 $ 16,000 Temporary differences: Inventory reserve 107,000 158,000 Accrued expenses and inventory 311,000 312,000 Current deferred income tax assets, net $ 484,000 $ 486,000 Non-current deferred income taxes: Temporary differences: Property and equipment $ (681,000 ) $ (755,000 ) Intangible assets (3,000 ) (3,000 ) Marketable securities 78,000 (758,000 ) Basis diffence in investments (129,000 ) (129,000 ) Foreign exchange (45,000 ) (35,000 ) Other (12,000 ) - State income taxes (75,000 ) (72,000 ) Non-current deferred income tax liabilities (867,000 ) (1,752,000 ) Net deferred income tax liability $ (383,000 ) $ (1,266,000 ) The provision for income taxes differs from the amount that would be obtained by applying the US statutory rate to income before income taxes as a result of the following: For the Years Ended December 31, 2015 2014 Income taxes based on US statutory rate of 34% $ 518,000 $ 1,340,000 Non-deductible meals and entertainment 7,000 5,000 Domestic manufacturer's deduction (18,000 ) (41,000 ) Foreign taxes (11,000 ) (102,000 ) State taxes 75,000 88,000 Other (91,000 ) (89,000 ) $ 480,000 $ 1,201,000 In 2012, the Company modified its tax reporting for Harmony, which lowers the Company’s effective tax rate. The Company recorded an uncertain tax position liability of approximately $342,000 as of December 31, 2012. The uncertain tax position liability was reduced during 2013 to $194,000 after it was determined that certain tax returns could not be amended. Unrecognized tax benefits during the years ended December 31, 2015 and 2014 were as follows: For the Years Ended December 31, 2015 2014 Balance as of January 1 $ 194,000 $ 194,000 Gross increase from tax positions taken during the year - - Gross increase from tax positions taken during prior periods - - Reductions to unrecognized tax benefits - - Balance as of December 31 $ 194,000 $ 194,000 |
Note 12 - Operating Lease Commi
Note 12 - Operating Lease Commitments | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Leases of Lessee Disclosure [Text Block] | 12. Operating Lease Commitments The Company leases its facilities under non-cancelable operating leases expiring on various dates through January 1, 2024. The following summarizes future minimum lease payments required under non-cancelable operating lease agreements: Years Ending December 31, Future Minimum Lease Payments 2016 $ 919,000 2017 504,000 2018 504,000 2019 452,000 2020 450,000 Thereafter 1,388,000 $ 4,217,000 Total rent expense under operating leases for the years ended December 31, 2015 and 2014 was $1,036,000 and $1,018,000, respectively. |
Note 13 - Employee Benefit Plan
Note 13 - Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | 13. Employee Benefit Plans The Company has a 401(k) defined contribution profit sharing plan. Under the plan, US employees may contribute up to 12% of their gross earnings subject to certain limitations. The Company contributes an additional 0.5% of gross earnings for those employees contributing 1% of their gross earnings and contributes 1% of gross earnings for those employees contributing 2% to 12% of their gross earnings. The Company contributions become fully vested after five years. The amounts contributed to the plan by the Company were $37,000 and $38,000 for the years ended December 31, 2015 and 2014, respectively. The Company does not have any other significant pension, profit sharing or similar plans established for its employees. The former Chief Executive Officer and President are each entitled to a bonus equal to 5% of the pre-tax profits of the Company, excluding bonus expense. The former Chief Executive Officer was entitled to 75% of the bonus amount as he retired at the end of September 2015. Executive bonuses of $146,000 and $438,000 were accrued as of December 31, 2015 and 2014, respectively. |
Note 14 - Activity of Business
Note 14 - Activity of Business Segments | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | 14. Activity of Business Segments The Company operates through three segments: Building Supply: Disposable Protective Apparel: A portion of the Company’s equity in income of unconsolidated affiliate (Harmony) is included in the total segment income for the Disposable Protective Apparel segment. Infection Control: The accounting policies of the segments are the same as those described previously under Summary of Significant Accounting Policies (see Note 2). Segment data excludes charges allocated to the principal executive office and other corporate unallocated expenses and income taxes. The Company evaluates the performance of its segments and allocates resources to them based primarily on net sales. The following table presents net sales for each segment: Years Ended December 31, 2015 2014 Building Supply $ 25,800,000 $ 27,549,000 Disposable Protective Apparel 14,661,000 14,670,000 Infection Control 4,494,000 5,430,000 Consolidated net sales $ 44,955,000 $ 47,649,000 The following table presents the reconciliation of total segment income to total consolidated net income: Years Ended December 31, 2015 2014 Building Supply $ 3,605,000 $ 4,750,000 Disposable Protective Apparel 1,439,000 1,601,000 Infection Control 1,396,000 1,953,000 Total segment income 6,440,000 8,304,000 Gain on sale of marketable securities and investment in common stock warrants - 409,000 Unallocated corporate overhead expenses 4,919,000 4,770,000 Provision for income taxes 480,000 1,201,000 Consolidated net income $ 1,041,000 $ 2,742,000 The following table presents net sales and long-lived asset information by geographic area: Years Ended December 31, 2015 2014 Net sales by geographic region United States $ 43,753,000 $ 45,714,000 International 1,202,000 1,935,000 Consolidated net sales $ 44,955,000 $ 47,649,000 As of December 31, 2015 2014 Long-lived assets by geographic region United States $ 2,564,000 $ 2,944,000 International 343,000 371,000 Consolidated total long-lived assets $ 2,907,000 $ 3,315,000 Net sales by geographic region are based on the countries in which the customers are located. For the years ended December 31, 2015 and 2014, the Company did not generate sales from any country, except the United States, that were significant to the Company’s consolidated net sales . The following table presents the consolidated net property, equipment, goodwill and intangible assets by segment : As of December 31, 2015 2014 Disposable Protective Apparel $ 394,000 $ 450,000 Building Supply 2,410,000 2,613,000 Infection Control 166,000 368,000 Total segment assets 2,970,000 3,431,000 Unallocated corporate assets 43,000 10,000 Total consolidated assets $ 3,013,000 $ 3,441,000 |
Note 15 - Concentration of Risk
Note 15 - Concentration of Risk | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Concentration Risk Disclosure [Text Block] | 15. Concentration of Risk The Company maintains its cash in various bank accounts, the balances of which at times may exceed federally insured limits. The Company has not experienced any losses related to these accounts, and management does not believe that the Company is exposed to significant credit risk. The Company’s investments in marketable securities are in one publicly traded entity. The Company has recognized gain on investment in common stock warrants and unrealized gain (loss) in comprehensive income (loss). The Company is exposed to the fluctuation in the stock price of this investment. Management believes that adequate provision has been made for risk of loss on all credit transactions. The Company buys a significant amount of its disposable protective apparel products from a limited number of subcontractors located in Asia and, to a much lesser extent, a subcontractor in Mexico. Management believes that other suppliers could provide similar products at comparable terms. A change in suppliers, however, could cause a delay in shipment and a possible loss of sales, which would affect operating results adversely. The Building Supply segment buys semi-finished housewrap and synthetic roof underlayment from its joint venture, Harmony, located in India. Although there are a limited number of manufacturers of the particular product, management believes that other suppliers could provide similar products at comparable terms. A change in suppliers, however, could cause a delay in shipment and a possible loss of sales, which would affect operating results adversely. The Company provides products to customers located primarily in the US. Customers accounting for 10% or more of accounts receivable as of December 31, 2015 and 2014, and 10% or more of net sales for the years ended December 31, 2015 and 2014, were as follows: Accounts receivable: 2015 2014 Customer A 11% * Customer B 23% 17% Customer C 8% 17% Net Sales: Customer B 18% 15% * |
Note 16 - Employment Agreements
Note 16 - Employment Agreements | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Employment Agreements [Text Block] | 16. Employment Agreements The Company signed five-year employment agreements with two of its executive officers, which automatically renew annually on the agreements’ anniversary date. The agreements provide that, if the officers terminate employment without cause, as defined in the agreements, the officers are entitled to receive certain severance payments. If termination occurs due to retirement, the officers may enter into a four-year consulting arrangement with the Company at a specified percentage of the officers’ then current salaries. Upon death or disability, the Company will also make certain payments to the executive or the executive’s estate or beneficiary, as applicable. During the third quarter of 2015, our former CEO retired, which resulted in a severance amount of $601,000. The severance amount is paid out to the former CEO over a 12-month period, and the related accrual as of December 31, 2015 was $452,000. The former CEO did not enter into a consulting arrangement subsequent to his retirement. |
Note 17 - Subsequent Events
Note 17 - Subsequent Events | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | 1 7 . Subsequent Events The Company has reviewed and evaluated whether any additional material subsequent events have occurred from December 31, 2015 through the filing date of the Company’s Annual Report on Form 10-K. All appropriate subsequent event disclosures have been made in the consolidated financial statements |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Consolidation, Policy [Policy Text Block] | Principles of Consolidation The consolidated financial statements of the Company include the accounts of the Company and its wholly owned subsidiaries, Alpha Pro Tech, Inc. and Alpha ProTech Engineered Products, Inc. All significant intercompany accounts and transactions have been eliminated. Events that occurred after December 31, 2015 through the date that these financial statements were filed with the Securities and Exchange Commission (“SEC”) were considered in the preparation of these financial statements. |
Basis of Accounting, Policy [Policy Text Block] | Periods Presented All amounts have been rounded to the nearest thousand with the exception of the share data. The Company qualified as a smaller reporting company at the measurement date for determining such qualification during 2015. According to the disclosure requirements for smaller reporting companies, the Company has included balance sheets as of the end of the two most recent years and statements of income, comprehensive income (loss), shareholders’ equity and cash flows for each of the two most recent years. |
Marketable Securities, Policy [Policy Text Block] | Investments The Company periodically invests a portion of its cash in excess of short-term operating needs in marketable debt and equity securities. These investments are classified as available-for-sale in accordance with US generally accepted accounting principles (“US GAAP”). The Company does not have any investments in securities that are classified as held-to-maturity or trading. Available-for-sale investments are carried at their fair values using quoted prices in active markets for identical securities, with unrealized gains and losses, net of deferred income taxes, reported as a component of accumulated other comprehensive income (loss). Realized gains and losses, and declines in value deemed to be other-than-temporary on available-for-sale investments, are recognized in net income. The cost of securities sold is based on the specific identification method. Investments that the Company intends to hold for more than one year are classified as long-term investments in the accompanying balance sheets. The Company had an investment in non-trading warrants to purchase common stock in a publicly traded entity. These warrants were derivatives that were carried at fair value in the accompanying balance sheets. Gains or losses from changes in the fair value of the warrants are recognized in the accompanying statements of income in the period in which they occurred. |
Receivables, Policy [Policy Text Block] | Accounts Receivable Accounts receivable are recorded at the invoice amount and do not bear interest. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in the Company’s existing accounts receivable; however, changes in circumstances relating to accounts receivable may result in a requirement for additional allowances in the future. The Company determines the allowance based upon historical write-off experience and known conditions about its customers’ current ability to pay. Account balances are charged against the allowance when management determines that the probability for collection is remote. |
Inventory, Policy [Policy Text Block] | Inventories Inventories include freight-in, materials, labor and overhead costs and are stated at the lower of cost or market. Allowances are recorded for slow-moving, obsolete or unusable inventories. The Company assesses inventories for estimated obsolescence or unmarketable products and writes down the difference between the cost of the inventories and the estimated market values based upon assumptions about future sales and supplies on-hand. |
Property, Plant and Equipment, Policy [Policy Text Block] | Property and Equipment Property and equipment are stated at cost less accumulated depreciation and amortization. Property and equipment are depreciated or amortized using the straight-line method over the shorter of the respective useful lives of the assets or the related lease terms as follows: Buildings (in years) 25 Machinery and equipment (in years) 5 - 15 Office furniture and equipment (in years) 2 - 7 Leasehold improvements (in years) 4 - 5 Expenditures for renewals and betterments are capitalized, whereas costs of maintenance and repairs are charged to operations in the period incurred. |
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block] | Goodwill and Intangible Assets The Company accounts for goodwill and definite-lived intangible assets in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 350, Intangibles – Goodwill and Other |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair Value of Financial Instruments The estimated fair values of financial instruments are determined based on relevant market information and cannot be determined with precision. The Company’s financial instruments consist primarily of cash and marketable securities. The Company’s marketable securities are classified as available-for-sale and are carried at fair market value based on quoted market prices. |
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | Impairment of Long-Lived Assets The Company reviews long-lived assets for impairment whenever events or changes in its business circumstances indicate that the carrying amounts of the assets may not be fully recoverable. If it is determined that the undiscounted future net cash flows are not sufficient to recover the carrying values of the assets, an impairment loss is recognized for the excess of the carrying values over the fair values of the assets. The Company believes that the future undiscounted net cash flows to be received from its long-lived assets exceed the assets’ carrying values and, accordingly, the Company has not recognized any impairment losses for the years ended December 31, 2015 and 2014. |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition Sales are recognized when the following criteria are met: (1) persuasive evidence of an arrangement exists; (2) title transfers and the customer assumes the risk of loss; (3) the selling price is fixed or determinable; and (4) collection of the resulting receivable is reasonably assured. These criteria are satisfied upon shipment of product. Sales are reduced for any anticipated sales returns, rebates and allowances based on historical data. |
Shipping and Handling Cost, Policy [Policy Text Block] | Shipping and Handling Costs The costs of shipping products to distributors are recorded in cost of goods sold. |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Stock-Based Compensation The Company maintains a stock option plan under which the Company may grant incentive stock options and non-qualified stock options to employees and non-employee directors. Stock options have been granted with exercise prices at or above the fair market value of the underlying shares of common stock on the date of grant. Options vest and expire according to terms established at the grant date . The Company accounts for stock-based awards in accordance with ASC 718, Stock Compensation For the years ended December 31, 2015 and 2014, there were 120,000 and zero stock options granted, respectively, under the Company’s option plan. The Company recognized $24,000 and $33,000 in share-based compensation expense for the years ended December 31, 2015 and 2014, respectively, related to issued options. |
Income Tax, Policy [Policy Text Block] | Income Taxes The Company accounts for income taxes using the asset and liability method. A valuation allowance is recorded to reduce the carrying amounts of deferred income tax assets unless it is more likely than not that such assets will be realized. The Company’s policy is to record any interest and penalties assessed by the Internal Revenue Service as a component of the provision for income taxes. The Company presents taxes assessed by governmental authorities on revenue-producing activities (i.e., sales tax) on a net basis in the accompanying statements of income. The Company provides allowances for uncertain income tax positions when it is more likely than not that the position will not be sustained upon examination by the tax authority. Alpha Pro Tech, Ltd. and its subsidiaries file income tax returns in the US federal jurisdiction, and in various state and foreign jurisdictions. With limited exceptions, the Company is no longer subject to US federal, state or local income tax examination by tax authorities for years before 2012. The Company is not currently under examination in any of the jurisdictions in which it operates. |
Earnings Per Share, Policy [Policy Text Block] | Earnings Per Common Share The following table provides a reconciliation of both net income and the number of shares used in the computation of “basic” earnings per common share (“EPS”), which utilizes the weighted average number of common shares outstanding without regard to common stock equivalents, and “diluted” EPS, which includes all common stock equivalents which are dilutive for the years ended December 31, 2015 and 2014. Years Ended December 31, 2015 2014 Net income (numerator) $ 1,041,000 $ 2,742,000 Shares (denominator): Basic weighted average common shares outstanding 18,197,109 18,414,775 Add: Dilutive effect of common stock options 41,255 309,410 Diluted weighted average common shares outstanding 18,238,364 18,724,185 Earnings per common share: Basic $ 0.06 $ 0.15 Diluted $ 0.06 $ 0.15 |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Translation of Foreign Currencies Transactions in foreign currencies are translated into US dollars at the exchange rate prevailing at the transaction date. Monetary assets and liabilities in foreign currencies at each period end are translated at the exchange rate in effect at that date. Transaction gains or losses on foreign currencies are reflected in selling, general and administrative expenses and were not material for the years ended December 31, 2015 and 2014. The Company does not have a material foreign currency exposure due to the fact that all purchase agreements with companies in Asia and Mexico are in US dollars. In addition, all sales transactions are in US dollars. The Company’s only foreign currency exposure is with its Canadian branch office. The foreign currency exposure is not material due to the fact that the Company does not manufacture in Canada. The exposure primarily relates to payroll expenses in the Company’s administrative branch office in Canada. |
Research and Development Expense, Policy [Policy Text Block] | Research and Development Costs Research and development costs are expensed as incurred and are included in selling, general and administrative expenses. Such costs were not material for the years ended December 31, 2015 and 2014. |
Advertising Costs, Policy [Policy Text Block] | Advertising Costs The Company expenses advertising costs as incurred. These costs are included in selling, general and administrative expenses and were $37,000 and $38,000 for the years ended December 31, 2015 and 2014, respectively. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses for the reporting period. Actual results could differ from these estimates. |
Fair Value Measurement, Policy [Policy Text Block] | Fair Value Measurements FASB ASC 820, Fair Value Measurements and Disclosures This hierarchy requires the Company to minimize the use of unobservable inputs and to use observable market data, if available, when determining fair value. The fair values of the Company's financial assets as of December 31, 2015 and 2014 were determined using the following levels of inputs: • Level 1—Quoted prices for identical instruments in active markets; • Level 2—Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets; and • Level 3—Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. Fair Value Measurements as of December 31, Total Level 1 Level 2 Level 3 Assets: Marketable securities - 2015 $ 656,000 $ 656,000 $ - $ - Marketable securities - 2014 2,840,000 2,840,000 - - The fair values for the marketable securities, classified as Level 1, were obtained from quoted market prices. |
New Accounting Pronouncements, Policy [Policy Text Block] | New Accounting Standards Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory In November 2015, the FASB issued ASU 2015-17, Income Taxes Balance Sheet Classification of Deferred Taxes In February 2016, the FASB issued ASU No. 2016-02, Leases Management periodically reviews new accounting standards that are issued. Management has not identified any other new standards that it believes merit further discussion. |
Note 2 - Summary of Significa26
Note 2 - Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | Buildings (in years) 25 Machinery and equipment (in years) 5 - 15 Office furniture and equipment (in years) 2 - 7 Leasehold improvements (in years) 4 - 5 |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Years Ended December 31, 2015 2014 Net income (numerator) $ 1,041,000 $ 2,742,000 Shares (denominator): Basic weighted average common shares outstanding 18,197,109 18,414,775 Add: Dilutive effect of common stock options 41,255 309,410 Diluted weighted average common shares outstanding 18,238,364 18,724,185 Earnings per common share: Basic $ 0.06 $ 0.15 Diluted $ 0.06 $ 0.15 |
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | Fair Value Measurements as of December 31, Total Level 1 Level 2 Level 3 Assets: Marketable securities - 2015 $ 656,000 $ 656,000 $ - $ - Marketable securities - 2014 2,840,000 2,840,000 - - |
Note 3 - Investments (Tables)
Note 3 - Investments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Schedule of Available-for-sale Securities Reconciliation [Table Text Block] | December 31, 2015 2014 Cost basis $ 502,000 $ 327,000 Gain previously recognized on warrants 380,000 380,000 Gain (loss) included in accumulated other comprehensive income (loss) (226,000 ) 2,133,000 Fair value $ 656,000 $ 2,840,000 |
Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block] | December 31, 2015 2014 Beginning balance $ - $ 350,000 Fair value change in common stock warrants (1) - 30,000 Fair value of warrants exercised - (380,000 ) Ending balance $ - $ - |
Note 4 - Inventories (Tables)
Note 4 - Inventories (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | December 31, 2015 2014 Raw materials $ 6,456,000 $ 6,436,000 Work in process 4,143,000 4,834,000 Finished goods 5,799,000 5,274,000 $ 16,398,000 $ 16,544,000 |
Note 5 - Property and Equipme29
Note 5 - Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Schedule of Property and Equipment Carrying Value [Table Text Block] | December 31, 2015 2014 Buildings $ 355,000 $ 355,000 Machinery and equipment 10,515,000 10,622,000 Office furniture and equipment 1,074,000 1,027,000 Leasehold improvements 497,000 463,000 12,441,000 12,467,000 Less accumulated depreciation and amortization (9,534,000 ) (9,152,000 ) $ 2,907,000 $ 3,315,000 |
Note 6 - Goodwill and Intangi30
Note 6 - Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | December 31, 2015 December 31, 2014 Weighted Average Amortization Period (Years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Amortization Period (Years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Patents and Trademarks 5.0 $ 474,000 $ (423,000 ) $ 51,000 5.0 $ 474,000 $ (403,000 ) $ 71,000 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | 2016 $ 18,000 2017 11,000 2018 6,000 2019 ` 4,000 2020 2,000 Thereafter 10,000 $ 51,000 |
Note 8 - Accrued Liabilities (T
Note 8 - Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Schedule of Accrued Liabilities [Table Text Block] | December 31, 2015 2014 Payroll expenses $ 207,000 $ 192,000 Bonuses payable 727,000 809,000 Uncertain tax position liability (Note 11) 194,000 194,000 $ 1,128,000 $ 1,195,000 |
Note 10 - Shareholders' Equity
Note 10 - Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | Shares Weighted Average Exercise Price Per Option Options outstanding, December 31, 2013 1,070,000 $ 1.58 Exercised (490,000 ) 1.58 Canceled/expired/forfeited - - Options outstanding, December 31, 2014 580,000 1.58 Granted to non-employee directors 120,000 1.58 Exercised (475,000 ) 1.61 Canceled/expired/forfeited - - Options outstanding, December 31, 2015 225,000 1.52 Options exercisable, December 31, 2015 65,000 1.43 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Stock Options For the Years Ended December 31, 2015 2014 Exercise price $ 1.58 - Risk-free interest rate 1.69 % - Expected volatility 59.20 % - Expected life in years 4.25 - Dividend rate - - Black-Scholes fair value $ 0.75 (1) - |
Schedule of Share-based Compensation, Activity [Table Text Block] | Options Outstanding Options Exercisable Range of Exercise Prices Options Weighted Average Exercise Price Weighted Average Remaining Contract Life (in years) Aggregate Intrinsic Value Options Weighted Average Exercise Price Weighted Average Remaining Contract Life (in years) Aggregate Intrinsic Value $1.51 - $1.98 225,000 $ 1.52 3.76 $ 51,000 65,000 $ 1.43 2.29 $ 21,000 |
Note 11 - Income Taxes (Tables)
Note 11 - Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | For the Years Ended December 31, 2015 2014 Current $ 528,000 $ 934,000 Deferred (48,000 ) 267,000 $ 480,000 $ 1,201,000 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | December 31, 2015 2014 Current deferred income taxes: Foreign tax credits $ 66,000 $ 16,000 Temporary differences: Inventory reserve 107,000 158,000 Accrued expenses and inventory 311,000 312,000 Current deferred income tax assets, net $ 484,000 $ 486,000 Non-current deferred income taxes: Temporary differences: Property and equipment $ (681,000 ) $ (755,000 ) Intangible assets (3,000 ) (3,000 ) Marketable securities 78,000 (758,000 ) Basis diffence in investments (129,000 ) (129,000 ) Foreign exchange (45,000 ) (35,000 ) Other (12,000 ) - State income taxes (75,000 ) (72,000 ) Non-current deferred income tax liabilities (867,000 ) (1,752,000 ) Net deferred income tax liability $ (383,000 ) $ (1,266,000 ) |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | For the Years Ended December 31, 2015 2014 Income taxes based on US statutory rate of 34% $ 518,000 $ 1,340,000 Non-deductible meals and entertainment 7,000 5,000 Domestic manufacturer's deduction (18,000 ) (41,000 ) Foreign taxes (11,000 ) (102,000 ) State taxes 75,000 88,000 Other (91,000 ) (89,000 ) $ 480,000 $ 1,201,000 |
Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block] | For the Years Ended December 31, 2015 2014 Balance as of January 1 $ 194,000 $ 194,000 Gross increase from tax positions taken during the year - - Gross increase from tax positions taken during prior periods - - Reductions to unrecognized tax benefits - - Balance as of December 31 $ 194,000 $ 194,000 |
Note 12 - Operating Lease Com34
Note 12 - Operating Lease Commitments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Years Ending December 31, Future Minimum Lease Payments 2016 $ 919,000 2017 504,000 2018 504,000 2019 452,000 2020 450,000 Thereafter 1,388,000 $ 4,217,000 |
Note 14 - Activity of Busines35
Note 14 - Activity of Business Segments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Years Ended December 31, 2015 2014 Building Supply $ 25,800,000 $ 27,549,000 Disposable Protective Apparel 14,661,000 14,670,000 Infection Control 4,494,000 5,430,000 Consolidated net sales $ 44,955,000 $ 47,649,000 |
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | Years Ended December 31, 2015 2014 Building Supply $ 3,605,000 $ 4,750,000 Disposable Protective Apparel 1,439,000 1,601,000 Infection Control 1,396,000 1,953,000 Total segment income 6,440,000 8,304,000 Gain on sale of marketable securities and investment in common stock warrants - 409,000 Unallocated corporate overhead expenses 4,919,000 4,770,000 Provision for income taxes 480,000 1,201,000 Consolidated net income $ 1,041,000 $ 2,742,000 |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] | Years Ended December 31, 2015 2014 Net sales by geographic region United States $ 43,753,000 $ 45,714,000 International 1,202,000 1,935,000 Consolidated net sales $ 44,955,000 $ 47,649,000 As of December 31, 2015 2014 Long-lived assets by geographic region United States $ 2,564,000 $ 2,944,000 International 343,000 371,000 Consolidated total long-lived assets $ 2,907,000 $ 3,315,000 |
Reconciliation of Assets from Segment to Consolidated [Table Text Block] | As of December 31, 2015 2014 Disposable Protective Apparel $ 394,000 $ 450,000 Building Supply 2,410,000 2,613,000 Infection Control 166,000 368,000 Total segment assets 2,970,000 3,431,000 Unallocated corporate assets 43,000 10,000 Total consolidated assets $ 3,013,000 $ 3,441,000 |
Note 15 - Concentration of Ri36
Note 15 - Concentration of Risk (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Schedule of Revenue by Major Customers by Reporting Segments [Table Text Block] | Accounts receivable: 2015 2014 Customer A 11% * Customer B 23% 17% Customer C 8% 17% Net Sales: Customer B 18% 15% |
Note 2 - Summary of Significa37
Note 2 - Summary of Significant Accounting Policies (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Minimum [Member] | ||
Finite-Lived Intangible Asset, Useful Life | 5 years | |
Maximum [Member] | ||
Finite-Lived Intangible Asset, Useful Life | 17 years | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 120,000 | 0 |
Allocated Share-based Compensation Expense | $ 24,000 | $ 33,000 |
Advertising Expense | $ 37,000 | $ 38,000 |
Note 2 - Property and Equipment
Note 2 - Property and Equipment (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Building [Member] | Maximum [Member] | |
Property and Equipment | |
Building [Member] | |
Property and Equipment | 25 years |
Machinery and Equipment [Member] | Maximum [Member] | |
Property and Equipment | 15 years |
Machinery and Equipment [Member] | Minimum [Member] | |
Property and Equipment | 5 years |
Furniture and Fixtures [Member] | Maximum [Member] | |
Property and Equipment | 7 years |
Furniture and Fixtures [Member] | Minimum [Member] | |
Property and Equipment | 2 years |
Leasehold Improvements [Member] | Maximum [Member] | |
Property and Equipment | 5 years |
Leasehold Improvements [Member] | Minimum [Member] | |
Property and Equipment | 4 years |
Note 2 - Reconciliation of Net
Note 2 - Reconciliation of Net Income and Number of Shares Used in Computations of Basic and Diluted EPS (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Net income (numerator) | $ 1,041,000 | $ 2,742,000 |
Shares (denominator): | ||
Basic weighted average common shares outstanding (in shares) | 18,197,109 | 18,414,775 |
Add: Dilutive effect of common stock options (in shares) | 41,255 | 309,410 |
Diluted weighted average common shares outstanding (in shares) | 18,238,364 | 18,724,185 |
Earnings per common share: | ||
Basic (in dollars per share) | $ 0.06 | $ 0.15 |
Diluted (in dollars per share) | $ 0.06 | $ 0.15 |
Note 2 - Fair Value of Financia
Note 2 - Fair Value of Financial Assets (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Marketable Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Available-for-sale Securities, Current | $ 656,000 | $ 2,840,000 |
Marketable Securities [Member] | ||
Available-for-sale Securities, Current | 656,000 | 2,840,000 |
Available-for-sale Securities, Current | $ 656,000 | $ 2,840,000 |
Note 3 - Investments (Details T
Note 3 - Investments (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Proceeds from Sale and Maturity of Marketable Securities | $ 0 | $ 440,000 |
Available-for-sale Securities, Current | 656,000 | 2,840,000 |
Marketable Securities, Unrealized Gain (Loss) | (1,523,000) | 995,000 |
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Tax | $ (835,000) | $ 382,000 |
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 167,500 |
Note 3 - Available-for-Sale Mar
Note 3 - Available-for-Sale Marketable Securities (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Marketable Securities [Member] | ||
Cost basis | $ 502,000 | $ 327,000 |
Gain previously recognized on warrants | 380,000 | 380,000 |
Gain (loss) included in accumulated other comprehensive income (loss) | (226,000) | 2,133,000 |
Available-for-sale Securities, Current | 656,000 | 2,840,000 |
Available-for-sale Securities, Current | $ 656,000 | $ 2,840,000 |
Note 3 - Investment in Common S
Note 3 - Investment in Common Stock Warrants (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | ||
Warrant [Member] | |||
Beginning balance | $ 350,000 | ||
Gain on investment in common stock warrants | [1] | 30,000 | |
Fair value of warrants exercised | $ (380,000) | ||
Ending balance | |||
Beginning balance | $ 2,840,000 | ||
Gain on investment in common stock warrants | $ (30,000) | ||
Ending balance | $ 656,000 | $ 2,840,000 | |
[1] | Amounts are recognized in other income on the accompanying consolidated statement of income. |
Note 4 - Inventories (Details)
Note 4 - Inventories (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Raw materials | $ 6,456,000 | $ 6,436,000 |
Work in process | 4,143,000 | 4,834,000 |
Finished goods | 5,799,000 | 5,274,000 |
$ 16,398,000 | $ 16,544,000 |
Note 5 - Property and Equipme45
Note 5 - Property and Equipment (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Depreciation, Depletion and Amortization, Nonproduction | $ 683,000 | $ 701,000 |
Note 5 - Property and Equipme46
Note 5 - Property and Equipment (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Buildings | $ 355,000 | $ 355,000 |
Machinery and equipment | 10,515,000 | 10,622,000 |
Office furniture and equipment | 1,074,000 | 1,027,000 |
Leasehold improvements | 497,000 | 463,000 |
12,441,000 | 12,467,000 | |
Less accumulated depreciation and amortization | (9,534,000) | (9,152,000) |
$ 2,907,000 | $ 3,315,000 |
Note 6 - Goodwill and Intangi47
Note 6 - Goodwill and Intangible Assets (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill, Impairment Loss | $ 0 | $ 0 |
Amortization of Intangible Assets | $ 20,000 | $ 20,000 |
Note 6 - Definite-lived Intangi
Note 6 - Definite-lived Intangible Assets (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Patents and Trademarks [Member] | ||
Finite-Lived Intangible Asset, Useful Life | 5 years | 5 years |
Gross Carrying Amount | $ 474,000 | $ 474,000 |
Accumulated Amortization | (423,000) | (403,000) |
Net Carrying Amount | 51,000 | 71,000 |
Net Carrying Amount | $ 51,000 | $ 71,000 |
Note 6 - Estimated Future Amort
Note 6 - Estimated Future Amortization Expense Related to Definite-Lived Intangible Assets (Details) | Dec. 31, 2015USD ($) |
2,016 | $ 18,000 |
2,017 | 11,000 |
2,018 | 6,000 |
2019 ` | 4,000 |
2,020 | 2,000 |
Thereafter | 10,000 |
$ 51,000 |
Note 7 - Equity Investments i50
Note 7 - Equity Investments in Unconsolidated Affiliate (Details Textual) - USD ($) | 12 Months Ended | 120 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2005 | |
Harmony [Member] | Alpha Pro Tech Engineered Products [Member] | ||||
Equity Method Investment, Ownership Percentage | 41.66% | |||
Harmony [Member] | Maple Industries and Associates [Member] | ||||
Equity Method Investment, Ownership Percentage | 58.34% | |||
Harmony [Member] | ||||
Equity Method Investment, Other than Temporary Impairment | $ 0 | $ 0 | ||
Equity Method Investments | 3,040,000 | $ 3,040,000 | ||
Equity Method Investment, Aggregate Cost | $ 1,450,000 | |||
Proceeds from Equity Method Investment, Dividends or Distributions, Return of Capital | 942,000 | |||
Proceeds from Equity Method Investment, Dividends or Distributions | 77,000 | |||
Expense To Acquire Inventory | 14,272,000 | 19,040,000 | ||
Income (Loss) from Equity Method Investments | 32,000 | $ 300,000 | ||
Cumulative Equity In Income Of Unconsolidated Affiliate | $ 2,609,000 | $ 2,609,000 |
Note 8 - Accrued Liabilities (D
Note 8 - Accrued Liabilities (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Payroll expenses | $ 207,000 | $ 192,000 |
Accrued Bonuses, Current | 727,000 | 809,000 |
Uncertain tax position liability (Note 11) | 194,000 | 194,000 |
$ 1,128,000 | $ 1,195,000 |
Note 9 - Notes Payable (Details
Note 9 - Notes Payable (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Prime Rate [Member] | ||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | |
Long-term Line of Credit | $ 0 | |
Other Long-term Debt | 0 | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 3,500,000 | |
Prime Rate | 3.50% | 3.25% |
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.60% |
Note 10 - Shareholders' Equit53
Note 10 - Shareholders' Equity (Details Textual) - USD ($) | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
The2004 Plan Member | Granted in 2004 and 2005 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | |||
The2004 Plan Member | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 5,000,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 3,350,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |||
Stock Repurchased and Retired During Period, Shares | 973,100 | 1,019,553 | ||
Payments for Repurchase of Common Stock | $ 2,110,000 | $ 2,206,000 | ||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 1,278,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 120,000 | 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 225,000 | 580,000 | 1,070,000 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 30,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.00% | [1] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 340,000 | $ 1,057,000 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 107,000 | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 164 days | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 475,000 | 490,000 | ||
Proceeds from Stock Options Exercised | $ 765,000 | $ 775,000 | ||
[1] | The fair value calculation was based on the stock options granted during the year. |
Note 10 - Stock Option Activity
Note 10 - Stock Option Activity (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Employees and Non-employee Directors [Member] | ||
Granted to non-employee directors (in shares) | 120,000 | |
Granted to non-employee directors (in dollars per share) | $ 1.58 | |
Options outstanding (in shares) | 580,000 | 1,070,000 |
Options outstanding (in dollars per share) | $ 1.58 | $ 1.58 |
Exercised (in shares) | (475,000) | (490,000) |
Exercised (in dollars per share) | $ 1.61 | $ 1.58 |
Canceled/expired/forfeited (in shares) | ||
Canceled/expired/forfeited (in dollars per share) | ||
Options outstanding (in shares) | 225,000 | 580,000 |
Options outstanding (in dollars per share) | $ 1.52 | $ 1.58 |
Granted to non-employee directors (in shares) | 120,000 | 0 |
Options exercisable (in shares) | 65,000 | |
Options exercisable (in dollars per share) | $ 1.43 |
Note 10 - Stock Option Valuatio
Note 10 - Stock Option Valuation Assumptions (Details) - $ / shares | 1 Months Ended | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | [1] | ||
Exercise price (in dollars per share) | $ 1.58 | $ 1.58 | |||
Risk-free interest rate | 1.69% | ||||
Expected volatility | 59.20% | ||||
Expected life in years | 4 years 91 days | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.00% | ||||
Black-Scholes fair value (in dollars per share) | [1] | $ 0.75 | $ 0.75 | ||
[1] | The fair value calculation was based on the stock options granted during the year. |
Note 10 - Information about Sto
Note 10 - Information about Stock Options (Details) | 12 Months Ended |
Dec. 31, 2015USD ($)$ / sharesshares | |
Range of Exercise Prices, Lower Limit (in dollars per share) | $ 1.51 |
Range of Exercise Prices, Upper Limit (in dollars per share) | $ 1.98 |
Options Outstanding Options (in shares) | shares | 225,000 |
Options Outstanding Weighted Average Exercise Price (in dollars per share) | $ 1.52 |
Options Outstanding Weighted Average Remaining Contract Life | 3 years 277 days |
Options Outstanding Aggregate Intrinsic Value | $ | $ 51,000 |
Options Exercisable Options (in shares) | shares | 65,000 |
Options Exercisable Weighted Average Exercise Price (in dollars per share) | $ 1.43 |
Options Exercisable Weighted Average Remaining Contract Life | 2 years 105 days |
Options Exercisable Aggregate Intrinsic Value | $ | $ 21,000 |
Note 11 - Income Taxes (Details
Note 11 - Income Taxes (Details Textual) - USD ($) | Dec. 31, 2013 | Dec. 31, 2012 |
Liability for Uncertain Tax Positions, Current | $ 194,000 | $ 342,000 |
Note 11 - Provision for Income
Note 11 - Provision for Income Taxes (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Current | $ 528,000 | $ 934,000 |
Deferred | (48,000) | 267,000 |
$ 480,000 | $ 1,201,000 |
Note 11 - Deferred Income Tax A
Note 11 - Deferred Income Tax Assets (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Foreign tax credits | $ 66,000 | $ 16,000 |
Inventory reserve | 107,000 | 158,000 |
Accrued expenses and inventory | 311,000 | 312,000 |
Current deferred income tax assets, net | 484,000 | 486,000 |
Non-current deferred income taxes: | ||
Property and equipment | (681,000) | (755,000) |
Intangible assets | (3,000) | (3,000) |
Marketable securities | 78,000 | 758,000 |
Marketable securities | (78,000) | (758,000) |
Basis diffence in investments | (129,000) | (129,000) |
Foreign exchange | (45,000) | $ (35,000) |
Other | (12,000) | |
State income taxes | (75,000) | $ (72,000) |
Non-current deferred income tax liabilities | (867,000) | (1,752,000) |
Net deferred income tax liability | $ (383,000) | $ (1,266,000) |
Note 11 - Income Tax Reconcilia
Note 11 - Income Tax Reconciliation (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Income taxes based on US statutory rate of 34% | $ 518,000 | $ 1,340,000 |
Non-deductible meals and entertainment | 7,000 | 5,000 |
Domestic manufacturer's deduction | (18,000) | (41,000) |
Foreign taxes | (11,000) | (102,000) |
State taxes | 75,000 | 88,000 |
Other | (91,000) | (89,000) |
$ 480,000 | $ 1,201,000 |
Note 11 - Income Tax Reconcil61
Note 11 - Income Tax Reconciliation (Details) (Parentheticals) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Statutory Rate | 34.00% | 34.00% |
Note 11 - Unrecognized Tax Bene
Note 11 - Unrecognized Tax Benefits (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Balance as of January 1 | $ 194,000 | $ 194,000 |
Reductions to unrecognized tax benefits | ||
Balance as of December 31 | $ 194,000 | $ 194,000 |
Note 12 - Operating Lease Com63
Note 12 - Operating Lease Commitments (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Operating Leases, Rent Expense | $ 1,036,000 | $ 1,018,000 |
Note 12 - Future Minimum Lease
Note 12 - Future Minimum Lease Payments Required under Non-cancelable Operating Lease (Details) | Dec. 31, 2015USD ($) |
2,016 | $ 919,000 |
2,017 | 504,000 |
2,018 | 504,000 |
2,019 | 452,000 |
2,020 | 450,000 |
Thereafter | 1,388,000 |
$ 4,217,000 |
Note 13 - Employee Benefit Pl65
Note 13 - Employee Benefit Plans (Details Textual) - USD ($) | 1 Months Ended | 12 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | |
President [Member] | |||
Bonus Percentage | 5.00% | ||
Chief Executive Officer [Member] | |||
Bonus Percentage | 5.00% | ||
Accrued Bonuses, Current | $ 146,000 | $ 438,000 | |
Former CEO [Member] | |||
Percentage Of Bonus Upon Retirement | 75.00% | ||
For Employees Contributing 1 Percent of Gross Earnings [Member] | |||
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 0.50% | ||
For Employees Contributing 2 to12 Percent of Gross Earnings [Member] | |||
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 1.00% | ||
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 12.00% | ||
Defined Contribution Plan Employers Matching Contribution Vesting Period | 5 years | ||
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 37,000 | 38,000 | |
Accrued Bonuses, Current | $ 727,000 | $ 809,000 |
Note 14 - Activity of Busines66
Note 14 - Activity of Business Segments (Details Textual) | 12 Months Ended |
Dec. 31, 2015 | |
Number of Operating Segments | 3 |
Note 14 - Consolidated Net Sale
Note 14 - Consolidated Net Sales (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Building Supply [Member] | Operating Segments [Member] | ||
Consolidated net sales | $ 25,800,000 | $ 27,549,000 |
Disposable Protective Apparel [Member] | Operating Segments [Member] | ||
Consolidated net sales | 14,661,000 | 14,670,000 |
Infection Control [Member] | Operating Segments [Member] | ||
Consolidated net sales | 4,494,000 | 5,430,000 |
Consolidated net sales | $ 44,955,000 | $ 47,649,000 |
Note 14 - Reconciliation of Tot
Note 14 - Reconciliation of Total Segment Income to Total Consolidated Net Income (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Operating Segments [Member] | Building Supply [Member] | ||
Consolidated net income | $ 3,605,000 | $ 4,750,000 |
Operating Segments [Member] | Disposable Protective Apparel [Member] | ||
Consolidated net income | 1,439,000 | 1,601,000 |
Operating Segments [Member] | Infection Control [Member] | ||
Consolidated net income | 1,396,000 | 1,953,000 |
Operating Segments [Member] | ||
Consolidated net income | 6,440,000 | 8,304,000 |
Corporate, Non-Segment [Member] | ||
Consolidated net income | $ 4,919,000 | 4,770,000 |
Common Stock [Member] | ||
Gain on sale of marketable securities and investment in common stock warrants | 409,000 | |
Consolidated net income | $ 1,041,000 | 2,742,000 |
Provision for income taxes | $ 480,000 | $ 1,201,000 |
Note 14 - Consolidated Net Sa69
Note 14 - Consolidated Net Sales and Long-lived Asset Information by Geographic Area (Details) - Reportable Geographical Components [Member] - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
UNITED STATES | ||
Net sales by geographic region | ||
Consolidated sales | $ 43,753,000 | $ 45,714,000 |
Long-lived assets by geographic region | ||
Consolidated long-lived assets | 2,564,000 | 2,944,000 |
International Member | ||
Net sales by geographic region | ||
Consolidated sales | 1,202,000 | 1,935,000 |
Long-lived assets by geographic region | ||
Consolidated long-lived assets | 343,000 | 371,000 |
Consolidated sales | 44,955,000 | 47,649,000 |
Consolidated long-lived assets | $ 2,907,000 | $ 3,315,000 |
Note 14 - Consolidated Net Prop
Note 14 - Consolidated Net Property and Equipment, Goodwill and Intangible Assets (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Disposable Protective Apparel [Member] | Operating Segments [Member] | ||
Consolidated assets | $ 394,000 | $ 450,000 |
Building Supply [Member] | Operating Segments [Member] | ||
Consolidated assets | 2,410,000 | 2,613,000 |
Infection Control [Member] | Operating Segments [Member] | ||
Consolidated assets | 166,000 | 368,000 |
Operating Segments [Member] | ||
Consolidated assets | 2,970,000 | 3,431,000 |
Corporate, Non-Segment [Member] | ||
Consolidated assets | 43,000 | 10,000 |
Consolidated assets | $ 3,013,000 | $ 3,441,000 |
Note 15 - Concentration of Ri71
Note 15 - Concentration of Risk (Details Textual) - Customer Concentration Risk [Member] | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Accounts Receivable [Member] | ||
Concentration Risk Threshold Percentage | 10.00% | 10.00% |
Sales Revenue, Goods, Net [Member] | ||
Concentration Risk Threshold Percentage | 10.00% | 10.00% |
Note 15 - Customer Concentratio
Note 15 - Customer Concentration (Details) - Customer Concentration Risk [Member] | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Accounts Receivable [Member] | Customer A [Member] | ||
Customer | 11.00% | |
Accounts Receivable [Member] | Customer B [Member] | ||
Customer | 23.00% | 17.00% |
Accounts Receivable [Member] | Customer C [Member] | ||
Customer | 8.00% | 17.00% |
Sales Revenue, Goods, Net [Member] | Customer B [Member] | ||
Customer | 18.00% | 15.00% |
Note 16 - Employment Agreemen73
Note 16 - Employment Agreements (Details Textual) - Former CEO [Member] - USD ($) | Dec. 31, 2015 | Sep. 30, 2015 |
Deferred Compensation Arrangement with Individual, Recorded Liability | $ 601,000 | |
Deferred Compensation Arrangement With Individual Recorded Liability Current | $ 452,000 |