Document_And_Entity_Informatio
Document And Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Nov. 13, 2013 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'AMERICAN LOCKER GROUP INC | ' |
Document Type | '10-Q | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Common Stock, Shares Outstanding | ' | 1,687,319 |
Amendment Flag | 'false | ' |
Entity Central Index Key | '0000008855 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Voluntary Filers | 'No | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Well-known Seasoned Issuer | 'No | ' |
Document Period End Date | 30-Sep-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Consolidated_Balance_Sheets_Cu
Consolidated Balance Sheets (Current Period Unaudited) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Current assets: | ' | ' |
Cash and cash equivalents | $396,114 | $413,353 |
Accounts receivable, less allowance for doubtful accounts of approximately $109,000 in 2013 and $162,000 in 2012 | 2,530,924 | 2,385,644 |
Inventories, net | 3,267,536 | 2,671,616 |
Prepaid expenses | 491,874 | 298,185 |
Deferred income taxes | 293,794 | 287,417 |
Total current assets | 6,980,242 | 6,056,215 |
Property, plant and equipment: | ' | ' |
Land | 0 | 500 |
Buildings and leasehold improvements | 577,133 | 803,021 |
Machinery and equipment | 11,977,174 | 11,292,235 |
12,554,307 | 12,095,756 | |
Less allowance for depreciation and amortization | -9,033,008 | -8,861,997 |
3,521,299 | 3,233,759 | |
Other noncurrent assets | 38,174 | 45,173 |
Deferred income taxes | 620,168 | 628,351 |
Total assets | 11,159,883 | 9,963,498 |
Current liabilities: | ' | ' |
Accounts payable | 2,266,346 | 1,856,023 |
Customer deposits | 221,958 | 255,753 |
Commissions, salaries, wages, and taxes thereon | 152,629 | 157,087 |
Income taxes payable | 6,507 | 3,888 |
Revolving line of credit | 1,699,742 | 1,300,000 |
Current portion of long-term debt | 240,000 | 200,000 |
Accrued settlement, current portion | 156,000 | ' |
Other accrued expenses | 1,331,539 | 690,584 |
Total current liabilities | 6,074,721 | 4,463,335 |
Long-term liabilities: | ' | ' |
Long-term debt, net of current portion | 960,000 | 400,000 |
Accrued settlement, net of current portion | 169,000 | ' |
Pension and other benefits | 2,038,487 | 2,128,210 |
3,167,487 | 2,528,210 | |
Total liabilities | 9,242,208 | 6,991,545 |
Stockholders’ equity: | ' | ' |
Common stock, $1.00 par value: Authorized shares – 4,000,000 Issued shares – 1,879,319 in 2013 and 1,879,319 in 2012; Outstanding shares – 1,687,319 in 2013 and 1,687,319 in 2012 | 1,879,319 | 1,879,319 |
Other capital | 271,380 | 288,395 |
Retained earnings | 3,055,365 | 4,386,520 |
Treasury stock at cost, 192,000 shares | -2,112,000 | -2,112,000 |
Accumulated other comprehensive loss | -1,476,389 | -1,470,281 |
Total stockholders’ equity | 1,917,675 | 2,971,953 |
Total liabilities and stockholders’ equity | 11,159,883 | 9,963,498 |
Redeemable Convertible Preferred Stock [Member] | Series C Preferred Stock [Member] | ' | ' |
Stockholders’ equity: | ' | ' |
Series C redeemable, convertible preferred stock, $1.00 par value: Liquidation preference of $5 per share Authorized shares - 100,000 Issued and outstanding shares - 60,000 in 2013 and 0 in 2012 | $300,000 | ' |
Consolidated_Balance_Sheets_Cu1
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) (USD $) | Sep. 30, 2013 | Sep. 13, 2013 | Dec. 31, 2012 |
Allowance for doubtful accounts (in Dollars) | $109,000 | ' | $162,000 |
Common stock, par value (in Dollars per share) | $1 | ' | $1 |
Common stock, authorized shares | 4,000,000 | ' | 4,000,000 |
Common stock, issued shares | 1,879,319 | ' | 1,879,319 |
Common stock, outstanding shares | 1,687,319 | ' | 1,687,319 |
Treasury stock at cost, shares | 192,000 | ' | 192,000 |
Redeemable Convertible Preferred Stock [Member] | Series C Preferred Stock [Member] | ' | ' | ' |
Series C redeemable, convertible preferred stock, par value (in Dollars per share) | $1 | ' | $0 |
Series C redeemable, convertible preferred stock, liquidation preference (in Dollars) | $5 | $5 | $0 |
Series C redeemable, authorized shares | 100,000 | 100,000 | 0 |
Series C redeemable, convertible preferred stock, issued shares | 60,000 | 60,000 | 0 |
Series C redeemable, convertible preferred stock, oustanding shares | 60,000 | ' | 0 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Net sales | $3,851,121 | $3,538,830 | $11,093,893 | $9,937,688 |
Cost of products sold | 2,983,879 | 2,582,726 | 8,472,200 | 7,025,060 |
Gross profit | 867,242 | 956,104 | 2,621,693 | 2,912,628 |
Selling, general and administrative expenses | 1,057,020 | 949,480 | 3,575,804 | 2,903,564 |
Restructuring costs | 0 | 66,185 | 0 | 283,924 |
Settlement expense | ' | ' | 441,583 | ' |
Total operating loss | -189,778 | -59,561 | -1,395,694 | -274,860 |
Other income (expense): | ' | ' | ' | ' |
Gain on sale of property | 205,055 | ' | 205,055 | ' |
Interest income | ' | 13,630 | 18,747 | 13,637 |
Other income (expense) – net | -6,019 | 24,327 | -28,273 | 9,611 |
Interest expense | -60,522 | -28,155 | -115,328 | -84,945 |
Total other income (expense) | 138,514 | 9,802 | 80,201 | -61,697 |
Net loss before income taxes | -51,264 | -49,759 | -1,315,493 | -336,557 |
Income tax benefit (expense) | -3,276 | 49,737 | -15,661 | 106,713 |
Net loss | -54,540 | -22 | -1,331,154 | -229,844 |
Provision for preferred stock dividends | -838 | ' | -838 | ' |
Net loss applicable to common shareholders | ($55,378) | ($22) | ($1,331,992) | ($229,844) |
Weighted average common shares: | ' | ' | ' | ' |
Basic (in Shares) | 1,687,319 | 1,683,985 | 1,687,319 | 1,682,661 |
Diluted (in Shares) | 1,687,319 | 1,683,985 | 1,687,319 | 1,682,661 |
Net loss per share applicable to common shareholders: | ' | ' | ' | ' |
Basic (in Dollars per share) | ($0.03) | $0 | ($0.79) | ($0.14) |
Diluted (in Dollars per share) | ($0.03) | $0 | ($0.79) | ($0.14) |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Net loss | ($54,540) | ($22) | ($1,331,154) | ($229,844) |
Other comprehensive income loss: | ' | ' | ' | ' |
Foreign currency translation adjustment | 24,962 | -3,574 | -20,395 | 976 |
Adjustment to minimum pension liability, net of tax effect of $5,625 in 2013 and $5,648 in 2012 | -8,495 | -16,299 | 14,287 | -14,346 |
Other comprehensive loss | 16,467 | -19,873 | -6,108 | -13,370 |
Total comprehensive loss | ($38,073) | ($19,895) | ($1,337,262) | ($243,214) |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Income (Unaudited) (Parentheticals) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Tax effect on adjustment to minimum pension liability | $3,345 | $6,417 | $5,625 | $5,648 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (Unaudited) (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Net loss | ($1,331,154) | ($229,844) |
Adjustments to reconcile net loss to net cash used in operating activities: | ' | ' |
Depreciation and amortization | 610,407 | 553,574 |
Gain on sale of property | -205,055 | ' |
Provision for uncollectible accounts | 26,214 | 39,000 |
Equity based compensation | -17,014 | 5,500 |
Deferred income taxes | 5,624 | -55,383 |
Changes in assets and liabilities: | ' | ' |
Accounts receivable | -181,131 | -263,803 |
Inventories | -596,221 | 142,015 |
Prepaid expenses | -189,105 | -128,363 |
Accounts payable, customer deposits, accrued legal settlement (current and long-term) and accrued expenses | 1,344,404 | -67,915 |
Pension and other benefits | -88,677 | -116,482 |
Income taxes | 2,619 | -66,321 |
Net cash used in operating activities | -619,089 | -188,022 |
Investing activities | ' | ' |
Purchase of property, plant and equipment | -908,154 | -241,511 |
Proceeds from sale of property, net of selling costs | 210,612 | ' |
Net cash used in investing activities | -697,542 | -241,511 |
Financing activities | ' | ' |
Long-term debt payments to Bank of America Merrill Lynch | -750,000 | -150,000 |
Proceeds from issuance of preferred stock | 300,000 | ' |
Payments on line of credit with Bank of America Merrill Lynch | -1,520,000 | ' |
Net cash provided by financing activities | 1,299,742 | 200,000 |
Effect of exchange rate changes on cash | -350 | -20,192 |
Net decrease in cash and cash equivalents | -17,239 | -249,725 |
Cash and cash equivalents at beginning of period | 413,353 | 525,632 |
Cash and cash equivalents at end of period | 396,114 | 275,907 |
Cash paid for: | ' | ' |
Interest | 110,302 | 74,898 |
Income taxes | 13,042 | 15,210 |
Bank of America Merrill Lynch [Member] | ' | ' |
Financing activities | ' | ' |
Long-term debt borrowings | 150,000 | ' |
Borrowings on line of credit | 220,000 | 350,000 |
Triumph Commercial Finance [Member] | ' | ' |
Financing activities | ' | ' |
Long-term debt borrowings | 1,200,000 | ' |
Borrowings on line of credit | $1,699,742 | ' |
Note_1_Basis_of_Presentation
Note 1 - Basis of Presentation | 9 Months Ended |
Sep. 30, 2013 | |
Disclosure Text Block [Abstract] | ' |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | ' |
1. Basis of Presentation | |
The accompanying unaudited consolidated financial statements of American Locker Group Incorporated (the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q. Accordingly, the financial statements do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of the Company’s management, all adjustments, consisting of normal recurring accruals, considered necessary for a fair presentation of such consolidated financial statements, have been included. Operating results for the nine and three month periods ended September 30, 2013 are not necessarily indicative of the results that may be expected for the year ended December 31, 2013. | |
The consolidated balance sheet at December 31, 2012 has been derived from the Company’s audited financial statements at that date, but does not include all of the financial information and footnotes required by generally accepted accounting principles for complete financial statements. For further information, refer to the Company’s consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012. | |
Additional risks and uncertainties not presently known or that the Company currently deems immaterial may also impair its business operations. Should one or more of these risks or uncertainties materialize, the Company’s business, financial condition or results of operations could be materially adversely affected. | |
Effect of New Accounting Guidance | |
In February 2013, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. The update requires companies to present either in a single note or parenthetically on the face of the financial statements the effect of significant amounts of reclassifications from each component of accumulated other comprehensive income based on its source and the income statement lines affected by the reclassification. For public entities, the amendments that are subject to the transition guidance will be effective for fiscal periods beginning after December 15, 2012. Adoption of this ASU did not have a material impact on the Company’s consolidated financial statements. | |
In July 2013, the FASB issued ASU No. 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. Under this guidance, an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward. This update is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. We believe adoption of this new guidance will not have a significant impact on the Company’s consolidated financial statements. |
Note_2_Disneyland_Concession_A
Note 2 - Disneyland Concession Agreement | 9 Months Ended |
Sep. 30, 2013 | |
Concession Agreement Disclosure [Abstract] | ' |
Concession Agreement Disclosure [Text Block] | ' |
2. Disneyland Concession Agreement | |
On September 24, 2010, the Company entered into an agreement (the “Disney Agreement”) with Disneyland Resort, a division of Walt Disney Parks and Resorts U.S., Inc., and Hong Kong International Theme Parks Limited, (collectively referred to as “Disney”) to provide locker services under a concession arrangement. Under the Disney Agreement, the Company installed, operates and maintains electronic lockers at Disneyland Park and Disney’s California Adventure Park in Anaheim, California and at Hong Kong Disneyland Park in Hong Kong. | |
The Company installed approximately 4,300 electronic lockers under the Disney Agreement. The Company retains ownership of the lockers and receives a portion of the revenue generated by the locker operations. The term of the Disney Agreement is five years, with an option to renew for one year at Disney’s option. Operation of the lockers began in late November 2010. The Agreement contains a buyout option at the end of each contract year and a provision to compensate the Company in the event Disney terminates the Agreement without cause. | |
The Company capitalized its costs related to the Disney Agreement and the Company is depreciating such costs over the five year term of the agreement. The Company recognizes revenue for its portion of the revenue as it is collected. |
Note_3_Inventories
Note 3 - Inventories | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Inventory Disclosure [Text Block] | ' | ||||||||
3. Inventories | |||||||||
Inventories are valued at the lower of cost or market value. Cost is determined using the first-in first-out method (FIFO). | |||||||||
Inventories consist of the following: | |||||||||
30-Sep-13 | 31-Dec-12 | ||||||||
Finished products | $ | 604,601 | $ | 602,753 | |||||
Work-in-process | 744,134 | 666,830 | |||||||
Raw materials | 1,918,801 | 1,402,033 | |||||||
Net Inventories | $ | 3,267,536 | $ | 2,671,616 | |||||
Note_4_Income_Taxes
Note 4 - Income Taxes | 9 Months Ended |
Sep. 30, 2013 | |
Income Tax Disclosure [Abstract] | ' |
Income Tax Disclosure [Text Block] | ' |
4. Income Taxes | |
Provision for income taxes is based upon the estimated annual effective income tax rate. The effective income tax rate for the nine months ended September 30, 2013 and 2012 was (1.2%) and 31.7%, respectively. For the nine months ended September 30, 2013, the difference in the effective income tax rate from the statutory rate is primarily due to an increase in the deferred tax asset valuation allowance offsetting the net operating loss carryforward generated in that period. For the nine months ended September 30, 2012, the difference in the effective income tax rate from the statutory rate is primarily due to permanent timing differences between expenses recorded for financial and tax reporting, an increase in the deferred tax asset valuation allowance, and the reversal of a previously accrued tax provision. |
Note_5_Stockholders_Equity
Note 5 - Stockholders' Equity | 9 Months Ended |
Sep. 30, 2013 | |
Stockholders' Equity Note [Abstract] | ' |
Stockholders' Equity Note Disclosure [Text Block] | ' |
5. Stockholders’ Equity | |
On September 13, 2013, the Company filed a Certificate of Designation with the Secretary of State of the State of Delaware to authorize the issuance of up to 100,000 shares of Series C Preferred Stock and to establish the relative rights, preferences, qualifications, limitations and restrictions of such Series C Preferred Stock. The Certificate of Designation became effective upon such filing. The rights, preferences and privileges of the Series C Preferred Stock are as follows: | |
Dividends. Holders of Series C Preferred Stock are entitled to receive cash dividends at the annual rate of 6% per share and will be paid in preference to the holders of any other class or series of capital stock. Such dividends will begin accruing on the date of issuance and will be paid only when and if a dividend payment is declared by the Board of Directors. If the dividend has not been paid or set apart in full, the Company cannot purchase or redeem any class of capital stock (except the Series C Preferred Stock) unless the persons holding more than 60% of the outstanding shares of Series C Preferred Stock (the “Majority of Holders”) have given their consent. | |
Redemption. The Company may redeem the Series C Preferred Stock at any time, in whole or in part, for $5.00 per share, plus accrued and unpaid dividends. The Company may exercise such redemption right by providing notice to the holders of the Series C Preferred Stock at least 20, but not more than 50, days prior to the date on which such redemption is to occur. If the Company elects to redeem a portion, but not all, of the outstanding Series C Preferred Stock, such redemption may be made pro rata, by lot or in such other equitable manner as determined by the Company’s Board of Directors. | |
Amendment of Certificate of Designation. Without the consent of a Majority of Holders, the Company may not: amend or change the Certificate of Designation in a manner that affects adversely the rights and preferences of the holders of Series C Preferred Stock; authorize or issue any class of stock ranking senior to, or on a parity with, the Series C Preferred Stock with respect to payment of dividends or distribution of assets; or authorize the merger or consolidation of the Company or the sale of all or substantially all of its assets. | |
Voting Rights. The holders of Series C Preferred Stock shall have no voting rights, except upon matters for which a class vote is specifically required by law or as provided in the Certificate of Designation. | |
Conversion. Any time after January 11, 2014, a holder of Series C Preferred Stock may convert each share of such stock into the number of shares of the Company’s common stock as is determined by dividing $5.00 by the average of the closing price of the Company’s common stock for the 10 trading days immediately prior to the date of such conversion. Such conversion price may be adjusted from time to time as set forth in the Certificate of Designation. | |
Liquidation Preference. In the event of a “liquidation event,” as defined in the Certificate of Designation, the holders of Series C Preferred Stock are entitled to receive, in cash, a liquidating distribution of $5.00 per share, plus all accrued but unpaid dividends, before any distribution or payment may be made to the holders of shares of any other classes of capital stock. | |
On September 13, 2013, the Company issued 60,000 shares of its newly authorized Series C Preferred Stock to certain investors pursuant to a Purchase Agreement executed with those investors. The purchase price was $5.00 per share for aggregate consideration of $300,000. Net proceeds from the offering were used by the Company to fund working capital and for general corporate purposes. | |
The Company did not issue any shares of common stock in the first, second or third quarters of 2013. |
Note_6_Pension_Benefits
Note 6 - Pension Benefits | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | ||||||||||||||||
Pension and Other Postretirement Benefits Disclosure [Text Block] | ' | ||||||||||||||||
6. Pension Benefits | |||||||||||||||||
The following sets forth the components of net periodic benefit cost of the Company’s defined benefit pension plans for the nine months ended September 30, 2013 and 2012: | |||||||||||||||||
Nine months ended September 30, | |||||||||||||||||
Pension Benefits | |||||||||||||||||
U.S. Plan | Canadian Plan | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Service Cost | $ | - | $ | 10,500 | $ | - | $ | - | |||||||||
Interest Cost | 155,981 | 85,000 | 38,477 | 37,840 | |||||||||||||
Expected return on plan assets | (168,137 | ) | (80,500 | ) | (51,745 | ) | (41,525 | ) | |||||||||
Net actuarial loss | - | - | 27,569 | 6,871 | |||||||||||||
Amortizations | 106,207 | 47,000 | - | - | |||||||||||||
Net periodic benefit cost | $ | 94,051 | $ | 62,000 | $ | 14,301 | $ | 3,186 | |||||||||
Three months ended September 30, | |||||||||||||||||
Pension Benefits | |||||||||||||||||
U.S. Plan | Canadian Plan | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Service Cost | $ | - | $ | 5,250 | $ | - | $ | - | |||||||||
Interest Cost | 39,637 | 42,500 | 12,588 | 18,884 | |||||||||||||
Expected return on plan assets | (42,726 | ) | (40,250 | ) | (16,929 | ) | (20,723 | ) | |||||||||
Net actuarial loss | - | - | 9,019 | 3,429 | |||||||||||||
Amortizations | 26,989 | 23,500 | - | - | |||||||||||||
Net periodic benefit cost | $ | 23,900 | $ | 31,000 | $ | 4,678 | $ | 1,590 | |||||||||
The Company has frozen the accrual of any additional benefits under the U.S. defined benefit pension plan effective July 15, 2005. | |||||||||||||||||
Effective January 1, 2009, the Company converted its pension plan for its Canadian employees (the “Canadian Plan”) from a noncontributory defined benefit plan to a defined contribution plan. Until the conversion, benefits for the salaried employees were based on specified percentages of the employees’ monthly compensation. The conversion of the Canadian Plan has the effect of freezing the accrual of future defined benefits under the plan. Under the defined contribution plan, the Company will contribute 3% of employee compensation plus 50% of employee elective contributions up to a maximum contribution of 5% of employee compensation. | |||||||||||||||||
The Fair Value Measurements and Disclosure Topic of the Accounting Standards Codification (the “ASC”) requires the categorization of financial assets and liabilities, based on the inputs to the valuation technique, into a three-level fair value hierarchy. The fair value hierarchy gives the highest priority to the quoted prices in active markets for identical assets and liabilities and lowest priority to unobservable inputs. The various values of the Fair Value Measurements and Disclosure Topic of the ASC fair value hierarchy are described as follows: | |||||||||||||||||
Level 1 — Financial assets and liabilities whose values are based on unadjusted quoted market prices for identical assets and liabilities in an active market that the Company has the ability to access. | |||||||||||||||||
Level 2 — Financial assets and liabilities whose values are based on quoted prices in markets that are not active or model inputs that are observable for substantially the full term of the asset or liability. | |||||||||||||||||
Level 3 — Financial assets and liabilities whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. | |||||||||||||||||
The fair value hierarchy of the plan assets are as follows: | |||||||||||||||||
30-Sep-13 | |||||||||||||||||
US Plan | Canadian Plan | ||||||||||||||||
Cash and cash equivalents | Level 1 | 102,515 | 11,295 | ||||||||||||||
Mutual funds | Level 1 | 263,456 | 1,268,527 | ||||||||||||||
Corporate/Government Bonds | Level 1 | 680,378 | - | ||||||||||||||
Equities | Level 1 | 1,030,949 | |||||||||||||||
Total | 2,077,298 | 1,279,822 | |||||||||||||||
US pension plan assets are invested solely in pooled separate account funds, which are managed by Bank of America Merrill Lynch. The net asset values (“NAV”) are based on the value of the underlying assets owned by the fund, minus its liabilities, and then divided by the number of units outstanding. The NAV’s unit price of the pooled separate accounts is not quoted on any market; however, the unit price is based on the underlying investments which are traded in an active market and are priced by independent providers. There have been no significant transfers in or out of Level 1 or Level 2 fair value measurements. | |||||||||||||||||
For additional information on the defined benefit pension plans, please refer to Note 10 of the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012. |
Note_7_Earnings_Per_Share
Note 7 - Earnings Per Share | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Earnings Per Share [Text Block] | ' | ||||||||
7. Earnings Per Share | |||||||||
The following table sets forth the computation of basic and diluted earnings per common share: | |||||||||
Nine months ended September 30, | |||||||||
2013 | 2012 | ||||||||
Numerator: | |||||||||
Net loss applicable to common shareholders | $ | (1,331,992 | ) | $ | (229,844 | ) | |||
Denominator: | |||||||||
Denominator for earnings per share (basic and diluted) ― weighted average shares | 1,687,319 | 1,682,661 | |||||||
Net loss per share applicable to common shareholders (basic and diluted): | $ | (0.79 | ) | $ | (0.14 | ) | |||
The Company had 12,000 stock options outstanding at September 30, 2012, which were not included in the common share computation for loss per share as of that date, as the common stock equivalents were anti-dilutive. The individual to whom these stock options had been issued terminated employment with the Company on April 2, 2013 and forfeited the stock options in the third quarter of 2013. |
Note_8_Debt
Note 8 - Debt | 9 Months Ended |
Sep. 30, 2013 | |
Debt Disclosure [Abstract] | ' |
Debt Disclosure [Text Block] | ' |
8. Debt | |
The Company had entered into a credit agreement with Bank of America Merrill Lynch (“BAML”), pursuant to which it had obtained a $1 million term loan, a $2.5 million revolving line of credit and a $500,000 draw note. The credit agreement contained certain covenants with which the Company was required to comply, including a debt service coverage ratio and a funded debt-to-EBITDA ratio. For the quarters ended March 31, 2013 and June 30, 2013, we were not in compliance with either covenant. On September 13, 2013, the Company entered into a Forbearance Agreement with BAML pursuant to which BAML agreed to waive the Company’s obligation to meet these financial covenants and forbear from enforcing its remedies against the Company with respect to such failure through November 30, 2013. On September 30, 2013, the Company terminated the credit agreement with BAML and repaid in full all of the borrowings under these credit facilities. | |
On September 30, 2013, the Company and its subsidiaries, Security Manufacturing Corporation and American Locker Security Systems, Inc. (the Company and its subsidiaries collectively referred to as the “Borrowers”), entered into a Loan Agreement (the “Loan Agreement”) with Triumph Savings Bank, SSB (d/b/a Triumph Commercial Finance) (the “Lender”). The Loan Agreement provides for a $2.8 million revolving credit facility (the “Revolver”) and a $1.2 million term loan facility (the “Term Loan”). The Borrowers initially borrowed approximately $1.7 million on the Revolver and $1.2 million on the Term Loan. The Company used these proceeds to repay in full the outstanding indebtedness under the Company’s prior credit facilities and equipment leases with BAML and for working capital and general corporate purposes. | |
The Revolver matures on September 30, 2016, although the Lender may, in its sole discretion, extend the maturity of the Revolver for a period of one year, and may further extend the Revolver for one-year periods thereafter. Available borrowings under the revolving credit facility are limited to a borrowing base of 85% of eligible trade receivables plus 50% of eligible inventory (capped at $1,000,000) less any availability reserves established by the Lender. The interest rate on the Revolver is 3.50% plus the greater of (a) the U.S. prime rate as published in The Wall Street Journal or (b) 3.25%. | |
The Term Loan is payable in equal monthly installments based on a 60-month amortization schedule. All unpaid principal on the Triumph Term Loan is due and payable on September 30, 2016, the maturity date. The interest rate on the Term Loan is 4.00% plus the greater of (a) the U.S. prime rate as published in The Wall Street Journal or (b) 3.25%. In the event of a default under the Loan Agreement, the Revolver and the Term Loan will each bear interest at the applicable rate plus an additional 2.00%. | |
The Borrowers will pay Lender an annual facility fee of $30,000 in the first year and, thereafter, an annual facility fee of 0.75% of the Revolver amount. In addition, the Borrowers will pay Lender a monthly unused line fee equal to 0.50% per annum of the average daily unused portion of the Revolver for the preceding month. In the event the Borrowers desire to terminate the Loan Agreement and prepay in full the amounts outstanding under the Revolver and the Term Loan, the Borrowers will pay a termination fee equal to $120,000 if terminated before September 30, 2014, $80,000 if terminated after September 30, 2014 but before September 30, 2015, and $40,000 if terminated after September 30, 2015 but before September 30, 2016. | |
The credit facilities under the Loan Agreement are secured by a security interest in substantially all of the assets of the Borrowers, including a pledge of a portion of the stock of Canadian Locker Company Limited, a subsidiary of American Locker Security Systems, Inc. All of the Borrowers are jointly and severally liable for all borrowings under the Loan Agreement. | |
The Borrowers are required to use the net cash proceeds from any asset disposition or the issuance of equity securities (excluding issuances to employees or another Borrower) or debt securities to prepay, first, the Term Loan and, if any proceeds remain, to pay down the Revolver. | |
The Loan Agreement includes various representations, warranties, affirmative and negative covenants, events of default, remedies and other provisions customary for a transaction of this nature. In addition, the Borrowers are required to comply with certain financial covenants, including a maximum debt to tangible net worth ratio, a minimum fixed charge coverage ratio and a minimum tangible net worth. |
Note_9_Restructuring
Note 9 - Restructuring | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | ||||||||||||||||
Restructuring and Related Activities Disclosure [Text Block] | ' | ||||||||||||||||
9. Restructuring | |||||||||||||||||
In 2009, the Company restructured its business operations to streamline its cost structure. The restructuring included plans for the relocation and consolidation of its Ellicottville, New York operations into its Texas facility. This planned relocation resulted in certain severance and payroll expenses. The balance remaining of such accrued restructuring expenses included in Other accrued expenses in the Company’s consolidated balance sheet as of September 30, 2013 was $13,500, and the Company expects to make such payments before the end of fiscal year 2013. | |||||||||||||||||
In 2012, the Company commenced the Ellicottville relocation, resulting in the realization of expense for discontinued inventory, severance and professional fees to complete the move. As a result, the Company recorded a restructuring charge in 2012 of approximately $283,900. Of this amount, $89,000 was recorded as an increase to the inventory reserve and is included in Inventory, net in the Company’s consolidated balance sheet as of September 30, 2013. | |||||||||||||||||
The following table analyzes the changes in the Company’s reserve with respect to the restructuring plan for the nine and three months ended September 30, 2013: | |||||||||||||||||
31-Dec-12 | Expense | Payment/Charges | 30-Sep-13 | ||||||||||||||
Severance | $ | 27,900 | — | $ | (14,400 | ) | $ | 13,500 | |||||||||
Inventory | 89,000 | — | — | 89,000 | |||||||||||||
Other | 12,000 | — | $ | (12,000 | ) | — | |||||||||||
Total | $ | 128,900 | — | $ | (26,400 | ) | $ | 102,500 | |||||||||
30-Jun-13 | Expense | Payment/Charges | 30-Sep-13 | ||||||||||||||
Severance | $ | 13,500 | — | — | $ | 13,500 | |||||||||||
Inventory | 89,000 | — | — | 89,000 | |||||||||||||
Other | — | — | — | — | |||||||||||||
Total | $ | 102,500 | — | — | $ | 102,500 | |||||||||||
On August 8, 2013, the Company completed the sale of certain real property located in Ellicottville, New York pursuant to a Purchase and Sale Agreement dated May 7, 2013 by and between American Locker Security Systems, Inc., a wholly-owned subsidiary of the Company, and Michael Young. Mr. Young purchased the real property, consisting of an approximately 12,800 square foot building, for total consideration of $212,500. The Company received proceeds, net of selling costs, of approximately $211,000 and recorded a gain on the sale of this property of approximately $205,000. The sale of this property concluded the Ellicottville relocation described herein. |
Note_10_Commitments_and_Contin
Note 10 - Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies Disclosure [Text Block] | ' |
10. Commitments and Contingencies | |
In July 2001, the Company received a letter from the New York State Department of Environmental Conservation (the “NYSDEC”) advising the Company that it is a potentially responsible party (“PRP”) with respect to environmental contamination at, and alleged migration from, property located in Gowanda, New York which was sold by the Company to Gowanda Electronics Corporation prior to 1980. In March 2001, the NYSDEC issued a Record of Decision with respect to the Gowanda site in which it set forth a remedy including continued operation of an existing extraction well and air stripper, installation of groundwater pumping wells and a collection trench, construction of a treatment system in a separate building on the site, installation of a reactive iron wall covering 250 linear feet, which is intended to intercept any contaminates and implementation of an on-going monitoring system. The NYSDEC has estimated that its selected remediation plan will cost approximately $688,000 for initial construction and a total of $1,997,000 with respect to expected operation and maintenance expenses over a 30-year period after completion of initial construction. The Company has not conceded to the NYSDEC that the Company is liable with respect to this matter and has not agreed with the NYSDEC that the remediation plan selected by NYSDEC is the most appropriate plan. At the present time the Company has only been identified as a potentially responsible party (“PRP”). The Company also believes that other parties may have been identified by the NYSDEC as PRPs, and the allocation of financial responsibility of such parties has not been determined. To the Company’s knowledge, the NYSDEC has not commenced implementation of the remediation plan and has not indicated when construction will start, if ever. Based upon currently available information, the Company is unable to estimate timing with respect to the resolution of this matter. The Company’s primary insurance carrier has assumed the cost of the Company’s defense in this matter, subject to a reservation of rights. | |
Beginning in September 1998 and continuing through the date of filing of this Quarterly Report on Form 10-Q, the Company has been named as an additional defendant in approximately 234 cases pending in state court in Massachusetts and 1 in the state of Washington. The plaintiffs in each case assert that a division of the Company manufactured and furnished components containing asbestos to a shipyard during the period from 1948 to 1972 and that injury resulted from exposure to such products. The assets of this division were sold by the Company in 1973. During the process of discovery in certain of these actions, documents from sources outside the Company have been produced which indicate that the Company appears to have been included in the chain of title for certain wall panels which contained asbestos and which were delivered to the Massachusetts shipyards. Defense of these cases has been assumed by the Company’s insurance carrier, subject to a reservation of rights. Settlement agreements have been entered in approximately 35 cases with funds authorized and provided by the Company’s insurance carrier. Further, over 167 cases have been terminated as to the Company without liability to the Company under Massachusetts procedural rules. Therefore, the balance of unresolved cases against the Company as of March 25, 2013, the most recent date information is available, is approximately 32 cases. | |
While the Company cannot estimate potential damages or predict what the ultimate resolution of these asbestos cases may be because the discovery proceedings on the cases are not complete, based upon the Company’s experience to date with similar cases, as well as the assumption that insurance coverage will continue to be provided with respect to these cases, at the present time, the Company does not believe that the outcome of these cases will have a significant adverse impact on the Company’s operations or financial condition. |
Note_11_Legal_Matters
Note 11 - Legal Matters | 9 Months Ended |
Sep. 30, 2013 | |
Disclosure Text Block Supplement [Abstract] | ' |
Legal Matters and Contingencies [Text Block] | ' |
11. Legal Matters | |
On February 5, 2013, the Company was notified by one of its customers that certain product purchased by that customer had quality issues. On March 11, 2013, the Company and the customer entered into an agreement whereby the Company will reimburse the customer for reasonable costs and expenses incurred on or before December 31, 2013 by the customer in its efforts to resolve the quality issue. In the fourth quarter of 2012 and the second quarter of 2013, the Company recorded expense of $50,000 and approximately $102,000, respectively, for costs to be reimbursed to the customer pursuant to the terms of the agreement, all of which had been paid as of September 30, 2013. The Company has no current obligation to reimburse the customer for costs incurred after December 31, 2013 and has in place liability coverage for third-party injury and property damage that might occur as a result of the product’s quality issue. | |
In February 2013, a customer brought legal action against the Company alleging the Company defaulted on its obligations and failed to perform pursuant to the terms of a written agreement entered into with the Company in February 2012. The customer sought to recover its damages in an unspecified sum and liquidated damages in the amount of $50,000 as well as costs and fees. In April 2013, the customer and the Company agreed to a settlement of the customer’s claims pursuant to which the Company agreed to pay the customer an aggregate amount of $30,000. Under terms of the settlement agreement, the Company made five monthly payments of $6,000 to the customer beginning May 1, 2013, with the last payment made on September 1, 2013. | |
In March 2012, the Company was named as a defendant in a legal action brought by a competitor (which was also a former customer and supplier) who alleged that the Company and certain other third-party defendants profited improperly from the use of intellectual property developed by such competitor. The Company believed the asserted claims were without merit and that its chances of prevailing without material liability were high. However, due largely to the increasing costs of the ongoing litigation, the Company and the plaintiff entered into a settlement agreement effective as of June 12, 2013 (the “Settlement Agreement”). Under the Settlement Agreement, the Company agreed to pay all outstanding invoices due to the plaintiff from the Company as of the date of the settlement, net of existing amounts due to the Company from the plaintiff, and further to pay license, service and other fees to the plaintiff in return for the plaintiff’s providing maintenance services on lockers distributed to certain of the Company’s customers. At March 31, 2013, the Company recorded an expense of approximately $412,000 related to the settlement. Of this amount, approximately $377,000 was recorded as accrued settlement and approximately $35,000 was included in other accrued expenses at March 31, 2013. The Company will pay amounts due to the plaintiff under the terms of the Settlement Agreement over a minimum period of 29 months which began June 1, 2013. | |
The Company is involved in other claims and litigation from time to time in the normal course of business. The Company does not believe these matters will have a significant adverse impact on the Company’s operations or financial condition. |
Note_12_Related_Party_Transact
Note 12 - Related Party Transactions | 9 Months Ended |
Sep. 30, 2013 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions Disclosure [Text Block] | ' |
12. Related Party Transactions | |
As more fully described in Note 5, on September 13, 2013, the Company issued shares of Series C Preferred Stock to certain investors pursuant to a Purchase Agreement executed with those investors. One of the investors who purchased Series C Preferred Stock on that date, Paul Luber, is a member of the Company’s board of directors. Mr. Luber purchased 20,000 shares of Series C Preferred Stock with an aggregate liquidation preference of $100,000. |
Accounting_Policies_by_Policy_
Accounting Policies, by Policy (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | ' |
Comprehensive Income, Policy [Policy Text Block] | ' |
Effect of New Accounting Guidance | |
In February 2013, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. The update requires companies to present either in a single note or parenthetically on the face of the financial statements the effect of significant amounts of reclassifications from each component of accumulated other comprehensive income based on its source and the income statement lines affected by the reclassification. For public entities, the amendments that are subject to the transition guidance will be effective for fiscal periods beginning after December 15, 2012. Adoption of this ASU did not have a material impact on the Company’s consolidated financial statements. | |
In July 2013, the FASB issued ASU No. 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. Under this guidance, an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward. This update is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. We believe adoption of this new guidance will not have a significant impact on the Company’s consolidated financial statements. |
Note_3_Inventories_Tables
Note 3 - Inventories (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Schedule of Inventory, Current [Table Text Block] | ' | ||||||||
30-Sep-13 | 31-Dec-12 | ||||||||
Finished products | $ | 604,601 | $ | 602,753 | |||||
Work-in-process | 744,134 | 666,830 | |||||||
Raw materials | 1,918,801 | 1,402,033 | |||||||
Net Inventories | $ | 3,267,536 | $ | 2,671,616 |
Note_6_Pension_Benefits_Tables
Note 6 - Pension Benefits (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | ||||||||||||||||
Schedule of Net Benefit Costs [Table Text Block] | ' | ||||||||||||||||
Nine months ended September 30, | |||||||||||||||||
Pension Benefits | |||||||||||||||||
U.S. Plan | Canadian Plan | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Service Cost | $ | - | $ | 10,500 | $ | - | $ | - | |||||||||
Interest Cost | 155,981 | 85,000 | 38,477 | 37,840 | |||||||||||||
Expected return on plan assets | (168,137 | ) | (80,500 | ) | (51,745 | ) | (41,525 | ) | |||||||||
Net actuarial loss | - | - | 27,569 | 6,871 | |||||||||||||
Amortizations | 106,207 | 47,000 | - | - | |||||||||||||
Net periodic benefit cost | $ | 94,051 | $ | 62,000 | $ | 14,301 | $ | 3,186 | |||||||||
Three months ended September 30, | |||||||||||||||||
Pension Benefits | |||||||||||||||||
U.S. Plan | Canadian Plan | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Service Cost | $ | - | $ | 5,250 | $ | - | $ | - | |||||||||
Interest Cost | 39,637 | 42,500 | 12,588 | 18,884 | |||||||||||||
Expected return on plan assets | (42,726 | ) | (40,250 | ) | (16,929 | ) | (20,723 | ) | |||||||||
Net actuarial loss | - | - | 9,019 | 3,429 | |||||||||||||
Amortizations | 26,989 | 23,500 | - | - | |||||||||||||
Net periodic benefit cost | $ | 23,900 | $ | 31,000 | $ | 4,678 | $ | 1,590 | |||||||||
Schedule of Allocation of Plan Assets [Table Text Block] | ' | ||||||||||||||||
30-Sep-13 | |||||||||||||||||
US Plan | Canadian Plan | ||||||||||||||||
Cash and cash equivalents | Level 1 | 102,515 | 11,295 | ||||||||||||||
Mutual funds | Level 1 | 263,456 | 1,268,527 | ||||||||||||||
Corporate/Government Bonds | Level 1 | 680,378 | - | ||||||||||||||
Equities | Level 1 | 1,030,949 | |||||||||||||||
Total | 2,077,298 | 1,279,822 |
Note_7_Earnings_Per_Share_Tabl
Note 7 - Earnings Per Share (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | ' | ||||||||
Nine months ended September 30, | |||||||||
2013 | 2012 | ||||||||
Numerator: | |||||||||
Net loss applicable to common shareholders | $ | (1,331,992 | ) | $ | (229,844 | ) | |||
Denominator: | |||||||||
Denominator for earnings per share (basic and diluted) ― weighted average shares | 1,687,319 | 1,682,661 | |||||||
Net loss per share applicable to common shareholders (basic and diluted): | $ | (0.79 | ) | $ | (0.14 | ) |
Note_9_Restructuring_Tables
Note 9 - Restructuring (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | ||||||||||||||||
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | ' | ||||||||||||||||
31-Dec-12 | Expense | Payment/Charges | 30-Sep-13 | ||||||||||||||
Severance | $ | 27,900 | — | $ | (14,400 | ) | $ | 13,500 | |||||||||
Inventory | 89,000 | — | — | 89,000 | |||||||||||||
Other | 12,000 | — | $ | (12,000 | ) | — | |||||||||||
Total | $ | 128,900 | — | $ | (26,400 | ) | $ | 102,500 | |||||||||
30-Jun-13 | Expense | Payment/Charges | 30-Sep-13 | ||||||||||||||
Severance | $ | 13,500 | — | — | $ | 13,500 | |||||||||||
Inventory | 89,000 | — | — | 89,000 | |||||||||||||
Other | — | — | — | — | |||||||||||||
Total | $ | 102,500 | — | — | $ | 102,500 |
Note_2_Disneyland_Concession_A1
Note 2 - Disneyland Concession Agreement (Details) (Long Term Supply Commitment [Member]) | 9 Months Ended |
Sep. 30, 2013 | |
Long Term Supply Commitment [Member] | ' |
Note 2 - Disneyland Concession Agreement (Details) [Line Items] | ' |
Number of lockers installed | 4,300 |
Duration of agreement | '5 years |
Renewal period | '1 year |
Amortization period | '5 years |
Note_3_Inventories_Details_Inv
Note 3 - Inventories (Details) - Inventories (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Inventories [Abstract] | ' | ' |
Finished products | $604,601 | $602,753 |
Work-in-process | 744,134 | 666,830 |
Raw materials | 1,918,801 | 1,402,033 |
Net Inventories | $3,267,536 | $2,671,616 |
Note_4_Income_Taxes_Details
Note 4 - Income Taxes (Details) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Income Tax Disclosure [Abstract] | ' | ' |
Effective Income Tax Rate Reconciliation, Percent | -1.20% | 31.70% |
Note_5_Stockholders_Equity_Det
Note 5 - Stockholders' Equity (Details) (Redeemable Convertible Preferred Stock [Member], Series C Preferred Stock [Member], USD $) | 0 Months Ended | ||
Sep. 13, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | |
Note 5 - Stockholders' Equity (Details) [Line Items] | ' | ' | ' |
Preferred Stock, Shares Authorized (in Shares) | 100,000 | 100,000 | 0 |
Preferred Stock, Dividend Rate, Percentage | 6.00% | ' | ' |
Preferred Stock, Liquidation Preference, Value (in Dollars) | $5 | $5 | $0 |
Preferred Stock, Shares Issued (in Shares) | 60,000 | 60,000 | 0 |
Sale of Stock, Price Per Share (in Dollars per share) | $5 | ' | ' |
Proceeds from Issuance of Redeemable Convertible Preferred Stock (in Dollars) | $300,000 | ' | ' |
Minimum [Member] | ' | ' | ' |
Note 5 - Stockholders' Equity (Details) [Line Items] | ' | ' | ' |
Equity Method Investment, Ownership Percentage | 60.00% | ' | ' |
Note_6_Pension_Benefits_Detail
Note 6 - Pension Benefits (Details) (Canadian Plan [Member]) | 9 Months Ended |
Sep. 30, 2013 | |
Canadian Plan [Member] | ' |
Note 6 - Pension Benefits (Details) [Line Items] | ' |
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 3.00% |
Defined Contribution Plan Employee Elective Employer Contribution Percent | 50.00% |
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 5.00% |
Note_6_Pension_Benefits_Detail1
Note 6 - Pension Benefits (Details) - Components of Net Periodic Employee Benefit Cost (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
U.S. Plan [Member] | ' | ' | ' | ' |
Note 6 - Pension Benefits (Details) - Components of Net Periodic Employee Benefit Cost [Line Items] | ' | ' | ' | ' |
Service Cost | ' | $5,250 | ' | $10,500 |
Interest Cost | 39,637 | 42,500 | 155,981 | 85,000 |
Expected return on plan assets | -42,726 | -40,250 | -168,137 | -80,500 |
Amortizations | 26,989 | 23,500 | 106,207 | 47,000 |
Net periodic benefit cost | 23,900 | 31,000 | 94,051 | 62,000 |
Canadian Plan [Member] | ' | ' | ' | ' |
Note 6 - Pension Benefits (Details) - Components of Net Periodic Employee Benefit Cost [Line Items] | ' | ' | ' | ' |
Interest Cost | 12,588 | 18,884 | 38,477 | 37,840 |
Expected return on plan assets | -16,929 | -20,723 | -51,745 | -41,525 |
Net actuarial loss | 9,019 | 3,429 | 27,569 | 6,871 |
Net periodic benefit cost | $4,678 | $1,590 | $14,301 | $3,186 |
Note_6_Pension_Benefits_Detail2
Note 6 - Pension Benefits (Details) - Fair Value Hierarchy of Plan Assets (USD $) | Sep. 30, 2013 |
Cash and Cash Equivalents [Member] | U.S. Plan [Member] | Fair Value, Inputs, Level 1 [Member] | ' |
Note 6 - Pension Benefits (Details) - Fair Value Hierarchy of Plan Assets [Line Items] | ' |
Fair Value of Plan Assets | $102,515 |
Cash and Cash Equivalents [Member] | Canadian Plan [Member] | Fair Value, Inputs, Level 1 [Member] | ' |
Note 6 - Pension Benefits (Details) - Fair Value Hierarchy of Plan Assets [Line Items] | ' |
Fair Value of Plan Assets | 11,295 |
Mutual Funds [Member] | U.S. Plan [Member] | Fair Value, Inputs, Level 1 [Member] | ' |
Note 6 - Pension Benefits (Details) - Fair Value Hierarchy of Plan Assets [Line Items] | ' |
Fair Value of Plan Assets | 263,456 |
Mutual Funds [Member] | Canadian Plan [Member] | Fair Value, Inputs, Level 1 [Member] | ' |
Note 6 - Pension Benefits (Details) - Fair Value Hierarchy of Plan Assets [Line Items] | ' |
Fair Value of Plan Assets | 1,268,527 |
Corporate Or Government Bonds [Member] | U.S. Plan [Member] | Fair Value, Inputs, Level 1 [Member] | ' |
Note 6 - Pension Benefits (Details) - Fair Value Hierarchy of Plan Assets [Line Items] | ' |
Fair Value of Plan Assets | 680,378 |
Equities [Member] | U.S. Plan [Member] | Fair Value, Inputs, Level 1 [Member] | ' |
Note 6 - Pension Benefits (Details) - Fair Value Hierarchy of Plan Assets [Line Items] | ' |
Fair Value of Plan Assets | 1,030,949 |
U.S. Plan [Member] | ' |
Note 6 - Pension Benefits (Details) - Fair Value Hierarchy of Plan Assets [Line Items] | ' |
Fair Value of Plan Assets | 2,077,298 |
Canadian Plan [Member] | ' |
Note 6 - Pension Benefits (Details) - Fair Value Hierarchy of Plan Assets [Line Items] | ' |
Fair Value of Plan Assets | $1,279,822 |
Note_7_Earnings_Per_Share_Deta
Note 7 - Earnings Per Share (Details) | 9 Months Ended |
Sep. 30, 2012 | |
Earnings Per Share [Abstract] | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 12,000 |
Note_7_Earnings_Per_Share_Deta1
Note 7 - Earnings Per Share (Details) - Computation of Basic and Diluted Earnings Per Share (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Numerator: | ' | ' | ' | ' |
Net loss applicable to common shareholders (in Dollars) | ($55,378) | ($22) | ($1,331,992) | ($229,844) |
Denominator: | ' | ' | ' | ' |
Denominator for earnings per share (basic and diluted) b weighted average shares | ' | ' | 1,687,319 | 1,682,661 |
Net loss per share applicable to common shareholders (basic and diluted): (in Dollars per share) | ' | ' | ($0.79) | ($0.14) |
Note_8_Debt_Details
Note 8 - Debt (Details) (USD $) | 1 Months Ended | 1 Months Ended | 1 Months Ended | ||||||||
Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 08, 2010 | Sep. 30, 2013 | Sep. 30, 2013 | |
Default [Member] | Before September 30,2014 [Member] | After September 30, 2014 [Member] | After September 30, 2015 [Member] | Accounts Receivable [Member] | Raw Material And Finished Goods [Member] | The Revolver [Member] | The Term Loan [Member] | Bank of America Merrill Lynch [Member] | Triumph Commercial Finance [Member] | Maximum [Member] | |
Triumph Commercial Finance [Member] | Triumph Commercial Finance [Member] | Triumph Commercial Finance [Member] | Triumph Commercial Finance [Member] | Triumph Commercial Finance [Member] | Raw Material And Finished Goods [Member] | ||||||
Triumph Commercial Finance [Member] | |||||||||||
Note 8 - Debt (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loans Payable to Bank | ' | ' | ' | ' | ' | ' | ' | $1,200,000 | $1,000,000 | ' | ' |
Long-term Line of Credit | ' | ' | ' | ' | ' | ' | 1,700,000 | ' | 2,500,000 | ' | ' |
Long-term Debt | ' | ' | ' | ' | ' | ' | ' | ' | 500,000 | ' | ' |
Balance payment date | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30-Sep-13 | ' |
Line of Credit Facility, Maximum Borrowing Capacity | ' | ' | ' | ' | ' | ' | 2,800,000 | 1,200,000 | ' | ' | 1,000,000 |
Debt Instrument, Maturity Date | ' | ' | ' | ' | ' | ' | 30-Sep-16 | ' | ' | ' | ' |
Eligible accounts receivable, raw materials and finished goods of the company | ' | ' | ' | ' | 85.00% | 50.00% | ' | ' | ' | ' | ' |
Line of Credit Facility, Interest Rate During Period | ' | ' | ' | ' | ' | ' | 3.50% | ' | ' | ' | ' |
Debt Instrument, Basis Spread on Variable Rate | 2.00% | ' | ' | ' | ' | ' | 3.25% | 3.25% | ' | ' | ' |
Debt Instrument, Interest Rate, Stated Percentage | ' | ' | ' | ' | ' | ' | ' | 4.00% | ' | ' | ' |
Line of Credit Facility, Commitment Fee Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30,000 | ' |
Line of Credit Facility, Commitment Fee Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.75% | ' |
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.50% | ' |
Liabilities Subject to Compromise, Early Contract Termination Fees | ' | $120,000 | $80,000 | $40,000 | ' | ' | ' | ' | ' | ' | ' |
Note_9_Restructuring_Details
Note 9 - Restructuring (Details) (USD $) | 0 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | |||||||
Aug. 08, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | |
sqft | Facility Relocation One [Member] | Facility Relocation One [Member] | Inventory [Member] | Inventory [Member] | Inventory [Member] | Inventory [Member] | |||||||
Note 9 - Restructuring (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring Reserve | ' | $102,500 | ' | $102,500 | ' | $102,500 | $128,900 | ' | $13,500 | $89,000 | $89,000 | $89,000 | $89,000 |
Restructuring Charges | ' | 0 | 66,185 | 0 | 283,924 | ' | ' | 283,900 | ' | 0 | 0 | ' | ' |
Area of Real Estate Property (in Square Feet) | 12,800 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total Consideration For Property Held for Sale | 212,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from Sale of Property Held-for-sale | 211,000 | ' | ' | 210,612 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gain (Loss) on Disposition of Property Plant Equipment | $205,000 | $205,055 | ' | $205,055 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Note_9_Restructuring_Details_C
Note 9 - Restructuring (Details) - Changes in Company's Reserve with Respect to Restructuring Plan (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Note 9 - Restructuring (Details) - Changes in Company's Reserve with Respect to Restructuring Plan [Line Items] | ' | ' | ' | ' |
Beginning Balance | $102,500 | ' | $128,900 | ' |
Expense | 0 | 66,185 | 0 | 283,924 |
Payment/Charges | 0 | ' | -26,400 | ' |
Ending Balance | 102,500 | ' | 102,500 | ' |
Employee Severance [Member] | ' | ' | ' | ' |
Note 9 - Restructuring (Details) - Changes in Company's Reserve with Respect to Restructuring Plan [Line Items] | ' | ' | ' | ' |
Beginning Balance | 13,500 | ' | 27,900 | ' |
Expense | 0 | ' | 0 | ' |
Payment/Charges | 0 | ' | -14,400 | ' |
Ending Balance | 13,500 | ' | 13,500 | ' |
Inventory [Member] | ' | ' | ' | ' |
Note 9 - Restructuring (Details) - Changes in Company's Reserve with Respect to Restructuring Plan [Line Items] | ' | ' | ' | ' |
Beginning Balance | 89,000 | ' | 89,000 | ' |
Expense | 0 | ' | 0 | ' |
Payment/Charges | 0 | ' | ' | ' |
Ending Balance | 89,000 | ' | 89,000 | ' |
Other Restructuring [Member] | ' | ' | ' | ' |
Note 9 - Restructuring (Details) - Changes in Company's Reserve with Respect to Restructuring Plan [Line Items] | ' | ' | ' | ' |
Beginning Balance | ' | ' | 12,000 | ' |
Expense | 0 | ' | 0 | ' |
Payment/Charges | $0 | ' | ($12,000) | ' |
Note_10_Commitments_and_Contin1
Note 10 - Commitments and Contingencies (Details) (USD $) | 9 Months Ended |
Sep. 30, 2013 | |
ft | |
Note 10 - Commitments and Contingencies (Details) [Line Items] | ' |
Installation of a reactive iron wall covering area (in Feet) | 250 |
Environmental Remediation Estimated Initial Construction Cost (in Dollars) | $688,000 |
Environmental Remediation Expense Expected To Be Incurred (in Dollars) | $1,997,000 |
Estimated period | '30 years |
Unresolved cases | 32 |
Massachusetts [Member] | ' |
Note 10 - Commitments and Contingencies (Details) [Line Items] | ' |
Loss Contingency, Pending Claims, Number | 234 |
Loss Contingency, Claims Settled and Dismissed, Number | 35 |
Number of cases terminated | 167 |
Washington [Member] | ' |
Note 10 - Commitments and Contingencies (Details) [Line Items] | ' |
Loss Contingency, Pending Claims, Number | 1 |
Note_11_Legal_Matters_Details
Note 11 - Legal Matters (Details) (USD $) | 9 Months Ended | 1 Months Ended | 4 Months Ended | ||||
Sep. 30, 2013 | 31-May-13 | Dec. 31, 2012 | Feb. 28, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2013 | |
Customer [Member] | Competitior [Member] | Competitior [Member] | Competitior [Member] | ||||
Note 11 - Legal Matters (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Loss Contingency, Estimate of Possible Loss | ' | $102,000 | $50,000 | ' | ' | ' | ' |
Loss Contingency, Damages Sought, Value | ' | ' | ' | 50,000 | ' | ' | ' |
Loss Contingency, Damages Awarded, Value | ' | ' | ' | 30,000 | ' | ' | ' |
Number of monthly payments to pay per damanges value | ' | ' | ' | 5 | 29 | ' | ' |
Monthly payments to customers | ' | ' | ' | 6,000 | ' | ' | ' |
Customer beginning date of monthly payments | ' | ' | ' | 1-May-13 | ' | ' | 1-Jun-13 |
Loss Contingency Damages Date of Last Payment | ' | ' | ' | 1-Sep-13 | ' | ' | ' |
Litigation Settlement, Expense | 441,583 | ' | ' | ' | ' | 412,000 | ' |
Estimated Litigation Liability | ' | ' | ' | ' | ' | 377,000 | ' |
Other Accrued Liabilities, Current | $1,331,539 | ' | $690,584 | ' | ' | $35,000 | ' |
Note_12_Related_Party_Transact1
Note 12 - Related Party Transactions (Details) (Redeemable Convertible Preferred Stock [Member], Series C Preferred Stock [Member], USD $) | Sep. 30, 2013 | Sep. 13, 2013 | Dec. 31, 2012 |
Note 12 - Related Party Transactions (Details) [Line Items] | ' | ' | ' |
Preferred Stock, Shares Issued | 60,000 | 60,000 | 0 |
Preferred Stock, Liquidation Preference, Value (in Dollars) | $5 | $5 | $0 |
Board Member [Member] | ' | ' | ' |
Note 12 - Related Party Transactions (Details) [Line Items] | ' | ' | ' |
Preferred Stock, Shares Issued | ' | 20,000 | ' |
Preferred Stock, Liquidation Preference, Value (in Dollars) | ' | $100,000 | ' |