Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Mar. 23, 2016 | Jun. 30, 2015 | |
Entity Registrant Name | CPI AEROSTRUCTURES INC | ||
Entity Central Index Key | 889,348 | ||
Trading Symbol | cvu | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Common Stock, Shares Outstanding (in shares) | 8,596,982 | ||
Entity Public Float | $ 77,727,039 | ||
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 |
Balance Sheets
Balance Sheets - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Current Assets: | ||
Cash | $ 1,002,023 | $ 1,504,907 |
Accounts receivable, net | 7,665,837 | 6,466,814 |
Costs and estimated earnings in excess of billings on uncompleted contracts | $ 102,622,387 | 79,054,139 |
Refundable income taxes | 8,138,322 | |
Prepaid expenses and other current assets | $ 1,065,473 | 828,275 |
Total current assets | 112,355,720 | 95,992,457 |
Property and equipment, net | 2,358,736 | 2,755,186 |
Deferred income taxes | 1,890,000 | 4,549,000 |
Other assets | 108,080 | 108,080 |
Total Assets | 116,712,536 | 103,404,723 |
Current Liabilities: | ||
Accounts payable | 18,379,469 | 8,928,456 |
Accrued expenses | 1,057,682 | 1,061,747 |
Billings in excess of costs and estimated earnings on uncompleted contracts | 175,438 | 193,650 |
Current portion of long-term debt | 1,011,491 | 971,713 |
Contract loss | 549,723 | 396,182 |
Line of credit | 23,700,000 | 25,150,000 |
Income taxes payable | 189,000 | 6,067 |
Total current liabilities | 45,062,803 | 36,707,815 |
Long-term debt, net of current portion | 483,961 | 1,289,843 |
Other liabilities | 633,663 | 593,909 |
Total Liabilities | $ 46,180,427 | $ 38,591,567 |
Commitments | ||
Shareholders’ Equity: | ||
Common stock - $.001 par value; authorized 50,000,000 shares, 8,583,511 and 8,500,555 shares, respectively, issued and outstanding | $ 8,584 | $ 8,501 |
Additional paid-in capital | 52,137,384 | 51,440,770 |
Retained earnings | 18,389,594 | 13,373,601 |
Accumulated other comprehensive loss | (3,453) | (9,716) |
Total Shareholders’ Equity | 70,532,109 | 64,813,156 |
Total Liabilities and Shareholders’ Equity | $ 116,712,536 | $ 103,404,723 |
Balance Sheets (Parentheticals)
Balance Sheets (Parentheticals) - $ / shares | Dec. 31, 2015 | Dec. 31, 2014 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, shares issued (in shares) | 8,583,511 | 8,583,511 |
Common stock, shares outstanding (in shares) | 8,500,555 | 8,500,555 |
Statements of Operations and Co
Statements of Operations and Comprehensive Income (Loss) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenue | $ 100,202,557 | $ 39,687,010 | $ 82,988,522 |
Cost of sales | 83,600,854 | 69,411,709 | 64,555,275 |
Gross profit (loss) | 16,601,703 | (29,724,699) | 18,433,247 |
Selling, general and administrative expenses | 7,636,148 | 7,308,220 | 6,704,524 |
Income (loss) from operations | 8,965,555 | (37,032,919) | 11,728,723 |
Other income (expense): | |||
Interest/other income (expense) | (40,433) | 145,072 | 78,957 |
Interest expense | (918,129) | (794,428) | (653,786) |
Total other expense, net | (958,562) | (649,356) | (574,829) |
Income (loss) before provision for (benefit from) income taxes | 8,006,993 | (37,682,275) | 11,153,894 |
Provision for (benefit from) income taxes | 2,991,000 | (12,473,000) | 3,417,000 |
Net income (loss) | 5,015,993 | (25,209,275) | 7,736,894 |
Other comprehensive income (loss), net of tax | |||
Change in unrealized gain (loss)- Interest rate swap | 6,263 | 11,399 | 19,712 |
Comprehensive income (loss) | $ 5,022,256 | $ (25,197,876) | $ 7,756,606 |
Income (loss) per common share-basic (in dollars per share) | $ 0.59 | $ (2.98) | $ 0.92 |
Income (loss) per common share-diluted (in dollars per share) | $ 0.58 | $ (2.98) | $ 0.91 |
Shares used in computing earnings per common share: | |||
Basic (in shares) | 8,552,817 | 8,465,937 | 8,389,048 |
Diluted (in shares) | 8,579,986 | 8,465,937 | 8,470,578 |
Statements of Shareholders' Equ
Statements of Shareholders' Equity - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | AOCI Attributable to Parent [Member] | Total |
Balance (in shares) at Dec. 31, 2012 | 8,371,439 | |||||
Balance at Dec. 31, 2012 | $ 8,371 | $ 49,780,673 | $ 30,845,982 | $ (40,827) | $ 80,594,199 | |
Net income (loss) | 7,736,894 | $ 7,736,894 | ||||
Change in unrealized loss from interest rate swap | 19,712 | |||||
Common stock issued upon exercise of options (in shares) | 18,399 | 45,000 | ||||
Common stock issued upon exercise of options | $ 18 | (18) | ||||
Common stock issued as employee compensation (in shares) | 20,655 | |||||
Common stock issued as employee compensation | $ 21 | 193,884 | ||||
Stock based compensation expense | 379,809 | |||||
Tax benefit from stock option plans | 27,000 | 27,000 | ||||
Balance (in shares) at Dec. 31, 2013 | 8,410,493 | |||||
Balance at Dec. 31, 2013 | $ 8,410 | 50,381,348 | 38,582,876 | (21,115) | 88,951,519 | |
Net Income | 7,736,894 | $ 7,736,894 | ||||
Change in unrealized loss from interest rate swap | 19,712 | |||||
Common stock issued upon exercise of options | $ 18 | (18) | ||||
Stock based compensation expense | 379,809 | |||||
Net income (loss) | (25,209,275) | (25,209,275) | $ (25,209,275) | |||
Change in unrealized loss from interest rate swap | 11,399 | 11,399 | ||||
Common stock issued upon exercise of options (in shares) | 85,312 | 155,000 | ||||
Common stock issued upon exercise of options | $ 86 | 447,665 | 447,751 | |||
Common stock issued as employee compensation (in shares) | 4,750 | |||||
Common stock issued as employee compensation | $ 5 | 57,992 | 57,997 | |||
Tax benefit from stock option plans | 86,000 | 86,000 | ||||
Balance (in shares) at Dec. 31, 2014 | 8,500,555 | 8,583,511 | ||||
Balance at Dec. 31, 2014 | $ 8,501 | 51,440,770 | 13,373,601 | (9,716) | 64,813,156 | $ 64,813,156 |
Stock based compensation expense | 467,765 | 467,765 | ||||
Net Income | (25,209,275) | (25,209,275) | (25,209,275) | |||
Change in unrealized loss from interest rate swap | 11,399 | 11,399 | ||||
Common stock issued upon exercise of options | $ 86 | 447,665 | 447,751 | |||
Net income (loss) | 5,015,993 | 5,015,993 | $ 5,015,993 | |||
Change in unrealized loss from interest rate swap | 6,263 | 6,263 | ||||
Common stock issued upon exercise of options (in shares) | 25,352 | 55,000 | ||||
Common stock issued upon exercise of options | $ 26 | 79,974 | 80,000 | |||
Common stock issued as employee compensation (in shares) | 6,255 | |||||
Common stock issued as employee compensation | $ 6 | 59,417 | 59,423 | |||
Stock based compensation expense | $ 51 | 524,223 | 524,274 | |||
Tax benefit from stock option plans | 33,000 | 33,000 | ||||
Balance (in shares) at Dec. 31, 2015 | 8,583,511 | 8,583,511 | ||||
Balance at Dec. 31, 2015 | $ 8,584 | 52,137,384 | 18,389,594 | (3,453) | 70,532,109 | $ 70,532,109 |
Net Income | $ 5,015,993 | 5,015,993 | $ 5,015,993 | |||
Change in unrealized loss from interest rate swap | $ 6,263 | 6,263 | ||||
Common stock issued upon exercise of options | $ 26 | 79,974 | 80,000 | |||
Stock based compensation expense (in shares) | 51,349 | |||||
Stock based compensation expense | $ 51 | $ 524,223 | $ 524,274 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash flows from operating activities: | |||
Net income (loss) | $ 5,015,993 | $ (25,209,275) | $ 7,736,894 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Depreciation, Depletion and Amortization | 854,063 | 763,736 | 704,435 |
Deferred rent | 46,017 | 17,098 | 54,621 |
Stock-based compensation expense | 524,274 | 467,765 | 379,809 |
Common stock issued as employee compensation | $ 59,423 | 57,993 | $ 41,830 |
Loss on disposal of fixed asset | 1,042 | ||
Deferred portion of provision for income taxes | $ 2,659,000 | (3,790,000) | $ (107,000) |
Tax benefit for stock options | (33,000) | $ (86,000) | $ (27,000) |
Bad debt expense | 50,000 | ||
Changes in operating assets and liabilities: | |||
(Increase) decrease in accounts receivable | $ (1,249,023) | $ (2,074,560) | $ 2,382,092 |
Decrease in other assets | 1,512,904 | ||
(Increase) decrease in costs and estimated earnings in excess of billings on uncompleted contracts | $ (23,568,248) | $ 33,542,997 | (3,612,292) |
Decrease in prepaid expenses and other current assets | (237,199) | (219,007) | $ (183,205) |
Increase in refundable income taxes | 8,133,433 | (8,138,322) | |
Increase (decrease) in accounts payable and accrued expenses | 9,446,948 | 1,715,580 | $ (5,817,028) |
Increase in accrued losses on uncompleted contracts | 153,541 | 396,182 | |
(Decrease) increase in income taxes payable | 220,822 | (730,469) | $ 582,536 |
Increase (decrease) in billings in excess of costs and estimated earnings on uncompleted contracts | (18,212) | (82,520) | (380,683) |
Net cash (used in) provided by operating activities | 2,057,832 | (3,367,760) | 3,267,913 |
Cash flows from investing activities: | |||
Purchase of property and equipment | (209,718) | (602,924) | (637,370) |
Net cash used in investing activities | (209,718) | (602,924) | $ (637,370) |
Cash flows from financing activities: | |||
Proceeds from exercise of stock options | 80,000 | 447,751 | |
Payment of line of credit | (9,650,000) | (4,700,000) | $ (13,100,000) |
Proceeds from line of credit | 8,200,000 | 8,500,000 | 11,000,000 |
Payment of long-term debt | (1,013,998) | (1,024,263) | (1,101,243) |
Tax benefit for stock options | 33,000 | 86,000 | 27,000 |
Net cash provided by (used in) financing activities | (2,350,998) | 3,309,488 | (3,174,243) |
Net decrease in cash | (502,884) | (661,196) | (543,700) |
Cash at beginning of year | 1,504,907 | 2,166,103 | 2,709,803 |
Cash at end of year | 1,002,023 | $ 1,504,907 | $ 2,166,103 |
Supplemental schedule of noncash investing and financing activities: | |||
Equipment acquired under capital lease | $ 247,881 | ||
Accrued expenses settled in exchange for common stock | $ 152,076 | ||
Stock options proceeds paid with Company’s stock | 303,064 | ||
Supplemental schedule of cash flow information: | |||
Cash paid during the year for interest | $ 1,000,403 | $ 915,695 | 985,189 |
Cash paid for income taxes | $ 351,275 | $ 855,000 | $ 3,000,000 |
Note 1 - Principal Business Act
Note 1 - Principal Business Activity and Summary of Significant Account Policies | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | 1. Principal business activity And summary of significant Accounting policies CPI Aerostructures, Inc. (“CPI Aero®” or the “Company”) is a U.S. supplier of aircraft parts for fixed wing aircraft and helicopters in both the commercial and defense markets. We manufacture complex aerostructure assemblies, as well as aerosystems. Additionally, we supply parts for MRO and kitting contracts. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires the use of estimates by management. Actual results could differ from these estimates. Revenue Recognition The Company’s revenue is recognized based on the percentage of completion method of accounting for its contracts measured by the percentage of total costs incurred to date to estimated total costs at completion for each contract. Contract costs include all direct material, labor costs, tooling and those indirect costs related to contract performance, such as indirect labor, supplies, tools, repairs and depreciation costs. Selling, general and administrative costs are charged to expense as incurred. Estimated losses on uncompleted contracts are recognized in the period in which such losses are determined. Changes in job performance may result in revisions to costs and income and are recognized in the period in which revisions are determined to be required. The percentage of completion method of accounting involves considerable use of estimates in determining revenues, costs and profits and in assigning the amounts to accounting periods and, as a result, there can be a significant disparity between earnings (both for accounting and taxes) as reported and actual cash received by the Company during any reporting period. In accordance with industry practice, costs and estimated earnings in excess of billings on uncompleted contracts, included in the accompanying balance sheets, contain amounts relating to contracts and programs with long production cycles, a portion of which will not be realized within one year. The Company’s recorded revenue may be adjusted in later periods in the event that the Company’s cost estimates prove to be inaccurate or a contract is terminated. When adjustments are required for the estimated total revenue on a contract, these changes are recognized with an inception-to-date effect in the current period. Also, when estimates of total costs to be incurred exceed estimates of total revenue to be earned, a provision for the entire loss on the contract is recorded in the period in which the loss is determined. During the year ended December 31, 2014, the Company adjusted the estimated total revenue and recorded a loss on its Wing Replacement Program (“WRP”) for the U.S. Air Force’s A-10 Thunderbolt aircraft (“A-10”). The long - term future of the A-10 has been uncertain since March 2014 when the U.S. Department of Defense released its 2015 Budget Request that called for the retirement of the entire A-10 fleet. More recent events have led the Company to conclude that our A-10 WRP will likely not continue to the full 242 aircraft as anticipated at the start of the program. The 2015 Department of Defense Appropriations Act passed by the United States House of Representatives on June 20, 2014 provides no funding for A-10 operations in U. S. Government fiscal year 2015 that commenced October 1, 2014. Further, this bill rescinds funding from the 2014 U. S. Department of Defense Budget that was to have been used for the procurement of additional wings for the A-10 in 2015. Because of the probable termination of the Company’s A-10 WRP, the Company reduced its revenue estimates with respect to this program by approximately 41% in 2014. This change in estimate results in an approximate cumulative $44.7 million decrease in revenue from the inception of the program in 2008 through June 30, 2014, all of which was recorded in the quarter ended June 30, 2014. Also, the uncertainty of the future of the A-10 aircraft has impacted the Company’s ability to achieve normal program cost reductions at suppliers. Accordingly, in addition to the $44.7 million adjustment to revenue in 2014, we have recorded a $2.6 million adjustment to cost of sales on the A-10 WRP. Government Contracts The Company’s government contracts are subject to the procurement rules and regulations of the U.S. government. Many of the contract terms are dictated by these rules and regulations. Specifically, cost-based pricing is determined under the Federal Acquisition Regulation (“FAR”), which provide guidance on the types of costs that are allowable in establishing prices for goods and services under U.S. government contracts. For example, costs such as those related to charitable contributions, advertising, interest expense, and public relations are unallowable, and therefore not recoverable through sales. During and after the fulfillment of a government contract, the Company may be audited in respect of the direct and allocated indirect costs attributable thereto. These audits may result in adjustments to the Company’s contract cost, and/or revenue. When contractual terms allow, the Company invoices its customers on a progress basis. Cash The Company maintains its cash in two financial institutions. The balances are insured by the Federal Deposit Insurance Corporation. From time to time, the Company’s balances may exceed these limits. As of December 31, 2015 and 2014, the Company had approximately $1,103,000 and $1,110,000, respectively, of uninsured balances. The Company limits its credit risk by selecting financial institutions considered to be highly credit worthy. Balance Sheet Classification of Deferred Taxes During the fourth quarter of 2015, the Company early adopted amended Financial Accounting Standards Board (“FASB”) guidance which eliminates the requirement to separate deferred income tax liabilities and assets into current and noncurrent amounts on the balance sheet. Rather the amended guidance requires deferred tax liabilities and assets be classified as noncurrent on the balance sheet. Prior period amounts were restated to conform with this presentation. The adoption of this guidance resulted in the elimination of “Deferred income tax assets” of $1,708,000 within current assets, the elimination of “Deferred tax liabilities” of $128,000 within current liabilities, the elimination of “Deferred tax liabilities” of $622,000 within non-current liabilities and the elimination of “Deferred tax assets” of $3,591,000 within non-current assets on the Company’s Balance Sheet at December 31, 2014. Accounts Receivable Accounts receivable are reported at their outstanding unpaid principal balances. The Company writes off accounts when they are deemed to be uncollectible. Property and Equipment Depreciation and amortization of property and equipment is provided by the straight-line method over the shorter of estimated useful lives of the respective assets or the life of the lease, for leasehold improvements. Rent We recognize rent expense on a straight-line basis over the expected lease term. Within the provisions of certain leases there are escalations in payments over the lease term. The effects of the escalations have been reflected in rent expense on a straight-line basis over the expected lease term. Long - Lived Assets The Company reviews its long-lived assets and certain related intangibles for impairment whenever changes in circumstances indicate that the carrying amount of an asset may not be fully recoverable. As a result of its review, the Company does not believe that any such change has occurred. If such changes in circumstance are present, a loss is recognized to the extent the carrying value of the asset is in excess of the fair value of cash flows expected to result from the use of the asset and amounts expected to be realized upon its eventual disposition. Short-Term Debt The fair value of the Company’s short-term debt is estimated based on the current rates offered to the Company for debt of similar terms and maturities. Using this method, the fair value of the Company’s short-term debt was not significantly different than the stated value at December 31, 2015 and 2014. Derivatives Our use of derivative instruments has primarily been to hedge interest rates. These derivative contracts are entered into with financial institutions. We do not use derivative instruments for trading purposes and we have procedures in place to monitor and control their use. We record these derivative financial instruments on the balance sheet at fair value. For derivative instruments that are designated and qualify as a cash flow hedge, the effective portion of the gain or loss on the derivative instrument is reported as a component of other comprehensive loss and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Any ineffective portion of the gain or loss on the derivative instrument for a cash flow hedge is recorded in the results of operations immediately. For derivative instruments not designated as hedging instruments, the gain or loss is recognized in the results of operations immediately. See below for a discussion of our use of derivative instruments, management of credit risk inherent in derivative instruments and fair value information. In October 2008, the Company entered into an interest rate swap with the objective of reducing our exposure to cash flow volatility arising from interest rate fluctuations associated with certain debt. The notional amount, maturity date, and currency of these contracts match those of the underlying debt. The Company has designated this interest rate swap contract as a cash flow hedge. The Company measures ineffectiveness by comparing the cumulative change in the forward contact with the cumulative change in the hedged item. No material ineffectiveness was recognized in 2015 and 2014. As of December 31, 2015 and 2014, we had a net deferred loss associated with cash flow hedges of approximately $4,500 and $14,700, respectively, due to the interest rate swap which has been included in Other Liabilities. As a result of the use of derivative instruments, the Company is exposed to risk that the counterparties may fail to meet their contractual obligations. Recent adverse developments in the global financial and credit markets could negatively impact the creditworthiness of our counterparties and cause one or more of our counterparties to fail to perform as expected. To mitigate the counterparty credit risk, we only enter into contracts with carefully selected major financial institutions based upon their credit ratings and other factors, and continually assess the creditworthiness of counterparties. To date, all counterparties have performed in accordance with their contractual obligations. Fair Value At December 31, 2015 and 2014, the fair values of cash, accounts receivable, accounts payable and accrued expenses approximated their carrying values because of the short-term nature of these instruments. 2015 2014 Carrying Fair Value Carrying Amount Fair Value Debt Short-term borrowings and long-term debt $ 25,195,452 $ 25,195,452 $ 27,411,556 $ 27,411,556 We estimated the fair value of debt using market quotes and calculations based on market rates. The following tables present the fair values of liabilities measured on a recurring basis as of December 31, 2015 and 2014: Fair Value Measurements 201 Description Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Interest Rate Swap $ 4,453 -- $ 4,453 -- Total $ 4,453 -- $ 4,453 -- Fair Value Measurements Description Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Interest Rate Swap $ 14,716 -- $ 14,716 -- Total $ 14,716 -- $ 14,716 -- The fair value of the Company’s interest rate swap was determined by comparing the fixed rate set at the inception of the transaction to the “replacement swap rate,” which represents the market rate for an offsetting interest rate swap with the same notional amounts and final maturity date. The market value is then determined by calculating the present value interest differential between the contractual swap and the replacement swap. As of December 31, 2015 and 2014, $4,453 and $14,716, respectively, was included in other liabilities related to the fair value of the Company’s interest rate swap, and $3,453 and $9,716, respectively, net of tax of $1,000 and $5,000, respectively, was included in Accumulated Other Comprehensive Loss. Earnings Per Share Basic earnings per common share is computed using the weighted-average number of shares outstanding. Diluted earnings per common share is computed using the weighted-average number of shares outstanding adjusted for the incremental shares attributed to outstanding options to purchase common stock. Incremental shares of approximately 85,000 were used in the calculation of diluted earnings per common share in 2015. Incremental shares of 184,983 were not included in the diluted earnings per share calculations at December 31, 2015, as their exercise price was in excess of the Company’s quoted market price and, accordingly, these shares are not assumed to be exercised for the diluted earnings per share calculation. No incremental shares were used in the calculation of diluted loss per common share in 2014, as the effect of incremental shares would be anti-dilutive. Incremental shares of 381,919 were used in the calculation of diluted earnings per common share in 2013. Incremental shares of 116,292 were not included in the diluted earnings per share calculations at December 31, 2013, as their exercise price was in excess of the Company’s quoted market price and accordingly, these shares are not assumed to be exercised for the diluted earnings per share calculation. Income taxes Income taxes are accounted for under the asset and liability method whereby deferred tax assets and liabilities are recognized for future tax consequences attributable to the temporary differences between the financial statements carrying amounts of assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period that includes the enactment date. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company has recorded a liability of approximately $98,000 for unrecognized tax benefits resulting from tax positions taken, or expected to be taken, in an income tax return. It is the Company’s policy to recognize interest and penalties related to uncertain tax positions as a component of income tax expense. Uncertain tax positions are evaluated and adjusted as appropriate, while taking into account the progress of audits of various taxing jurisdictions. R ecent A ccounting P ronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2014-09 (“ASU 2014-09”), Revenue from Contracts with Customers (Topic 606) |
Note 2 - Costs and Estimated Ea
Note 2 - Costs and Estimated Earnings in Excess of Billings on Uncompleted Contracts | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Long-term Contracts or Programs Disclosure [Text Block] | 2. COSTS AND ESTIMATED EARNINGS IN EXCESS OF BILLINGS ON UNCOMPLETED CONTRACTS At December 31, 2015, costs and estimated earnings in excess of billings on uncompleted contracts (unbilled) consist of: U.S. Government Commerc Total Costs incurred on uncompleted contracts $ 349,458,368 $ 123,078,356 $ 472,536,724 Estimated earnings 62,718,792 49,539,299 112,258,091 412,177,160 172,617,655 584,794,815 Less billings to date 353,601,903 128,745,963 482,347,866 Costs and estimated earnings in excess of billings on uncompleted contracts $ 58,575,257 $ 43,871,692 $ 102,446,949 At December 31, 2014, costs and estimated earnings in excess of billings on uncompleted contracts (unbilled) consist of: U.S. Government Commercial Total Costs incurred on uncompleted contracts $ 299,871,583 $ 90,272,545 $ 390,144,128 Estimated earnings 56,708,610 39,773,983 96,482,593 356,580,193 130,046,528 486,626,721 Less billings to date 313,441,471 94,324,761 407,766,232 Costs and estimated earnings in excess of billings on uncompleted contracts $ 43,138,722 $ 35,721,767 $ 78,860,489 The above amounts are included in the accompanying balance sheets under the following captions at December 31, 2015 and 2014. 2015 2014 Costs and estimated earnings in excess of billings on uncompleted contracts $ 102,622,387 $ 79,054,139 Billings in excess of costs and estimated earnings on uncompleted contracts (175,438 ) (193,650 ) Totals $ 102,446,949 $ 78,860,489 Unbilled costs and estimated earnings are billed in accordance with applicable contract terms. As of December 31, 2015, approximately $17.6 million of the balances above are not expected to be collected within one year. There are no amounts billed under retainage provisions. Revisions in the estimated gross profits on contracts and contract amounts are made in the period in which the circumstances requiring the revisions occur. During the years ended December 31, 2015, 2014 and 2013, the effect of such revisions in total estimated contract profits resulted in a decrease to the total gross profit to be earned on the contracts of approximately $1,875,000, $42,568,000 and $3,700,000, respectively, from that which would have been reported had the revised estimate been used as the basis of recognition of contract profits in prior years. Although management believes it has established adequate procedures for estimating costs to complete on uncompleted open contracts, it is at least reasonably possible that additional significant costs could occur on contracts prior to completion. |
Note 3 - Accounts Receivable
Note 3 - Accounts Receivable | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | 3. ACCOUNTS RECEIVAB LE Accounts receivable consists of trade receivables as follows: December 31, 2015 2014 Billed receivables $ 7,740,837 $ 6,491,814 Less: allowance for doubtful accounts (75,000 ) (25,000 ) $ 7,665,837 $ 6,466,814 |
Note 4 - Property and Equipment
Note 4 - Property and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | 4. PROPERTY AND EQUIPMENT: December 31, Estimated 2015 2014 Useful Life (years) Machinery and equipment $ 1,910,532 $ 1,646,787 5 to 10 Computer equipment 3,326,594 3,163,227 5 Furniture and fixtures 610,323 610,323 7 Automobiles and trucks 13,162 13,162 5 Leasehold improvements 1,562,856 1,532,355 10 7,423,467 6,965,854 Less accumulated depreciation and amortization 5,064,731 4,210,668 $ 2,358,736 $ 2,755,186 Depreciation and amortization expense for the years ended December 31, 2015, 2014 and 2013 was $854,063, $763,736 and $704,435, respectively. During the years ended December 31, 2015 and 2014, the Company acquired $247,881 and $67,283, respectively, of property and equipment under capital leases. |
Note 5 - Line of Credit
Note 5 - Line of Credit | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Line of Credit [Text Block] | 5. LINE OF CREDIT: On December 5, 2012, the Company entered into an Amended and Restated Credit Agreement with Sovereign Bank, now called Santander Bank, N.A. (“Santander”) as the sole arranger, administrative agent and collateral agent and Valley National Bank. The Restated Agreement provides for a revolving credit loan commitment (the “Revolving Facility”) of $35 million. The term of the Restated Agreement is through December 2016. As of December 31, 2015, the Company was in compliance with all covenants contained in the Restated Agreement. As of December 31, 2015, the Company had $23.7 million outstanding under the Revolving Facility bearing interest at 3.5%. |
Note 6 - Long-term Debt
Note 6 - Long-term Debt | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Long-term Debt [Text Block] | 6. LONG-TERM DEBT On March 9, 2012, the Company obtained a $4.5 million term loan from Santander to be amortized over five years (the “Santander Term Facility”). The Santander Term Facility was used to purchase tooling and equipment for new programs. Santander Term Facility bears interest at the lower of LIBOR plus 3% or Santander’s prime rate, 3.25% at December 31, 2015. Additionally, the Company and Santander entered into a five-year interest rate swap agreement, in the notional amount of $4.5 million. Under the interest rate swap, the Company pays an amount to Santander representing interest on the notional amount at a fixed rate of 4.11% and receives an amount from Santander Bank representing interest on the notional amount of a rate equal to the one-month LIBOR plus 3%. The effect of this interest rate swap will be the Company paying a fixed interest fixed rate of 4.11% over the term of the SantanderTerm Facility. The maturities of the long-term debt are as follows: Year ending December 31, 2016 $1,011,491 2017 376,527 2018 47,638 2019 38,791 2020 21,005 $1,495,452 Also included in long-term debt are capital leases and notes payable of $295,452 and $161,555 at December 31, 2015 and 2014, respectively, including a current portion of $111,491 and $71,713, respectively. The cost of assets under capital leases was approximately $1,363,977 and $1,118,720 at December 31, 2015 and 2014, respectively. Accumulated depreciation of assets under capital leases was approximately $971,000 and $765,000 at December 31, 2015 and 2014, respectively. |
Note 7 - Commitments
Note 7 - Commitments | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Commitments Disclosure [Text Block] | 7. COMMITMENTS: The Company has employment agreements with two employees. The aggregate future commitment under these agreements is $606,000 for the year ending December 31, 2016. These agreements provide for additional bonus payments that are calculated as defined in the respective employment agreements. The Company leases an office and warehouse facility under a non-cancelable operating lease which expires in April, 2022. The aggregate future commitment under this lease agreement is as follows: Year ending December 31, 2016 $1,600,467 2017 1,639,382 2018 1,679,465 2019 1,720,750 2020 1,763,274 Thereafter 2,409,432 $10,812,770 Rent expense for the years ended December 31, 2015, 2014 and 2013 was $1,608,701, $1,608,702 and $1,636,171, respectively. |
Note 8 - Income Taxes
Note 8 - Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 8 INCOME TAXES The provision for (benefit from) income taxes consists of the following: Year ended December 31, 2015 2014 2013 Current: Federal $ 82,000 $ (8,646,000 ) $ 3,334,000 Prior year under accrual 143,000 44,000 190,000 State 107,000 6,000 --- Deferred: Federal 2,659,000 (3,877,000 ) (107,000 ) $ 2,991,000 $ (12,473,000 ) $ 3,417,000 The difference between the income tax provision computed at the federal statutory rate and the actual tax provision is accounted for as follows: December 31, 2015 2014 2013 Taxes computed at the federal statutory rate $ 2,722,000 $ (12,812,000 ) $ 3,792,000 State income tax, net 70,000 4,000 -- Prior year true-up 325,000 44,000 190,000 Research and development tax credit (177,000 ) (140,000 ) --- Reduction in domestic production activity -- 893,000 --- AMT credit carryforward -- (584,000 ) --- Permanent differences 51,000 122,000 (565,000 ) Provision for (benefit from) income taxes $ 2,991,000 $ (12,473,000 ) $ 3,417,000 The components of deferred income tax assets and liabilities are as follows: Deferred Tax Assets: 2015 2014 Revenue recognition $ -- $ 560,000 Interest rate swap 3,000 5,000 FIN 48 liability 33,000 --- Allowance for doubtful accounts 26,000 9,000 Credit carryforwards 1,303,000 1,134,000 Deferred rent 212,000 197,000 Stock options 626,000 827,000 Charitable contributions carry foward 18,000 --- Net operating loss carryforward 1,006,000 2,567,000 Deferred Tax Assets 3,227,000 5,299,000 Deferred Tax Liabilities: Prepaid expenses 156,000 128,000 Revenue recognition 606,000 --- Property and equipment 575,000 622,000 Deferred tax liabilities 1,337,000 750,000 Net Deferred Tax Assets $ 1,890,000 $ 4,549,000 The Company recognized, for income tax purposes, a tax benefit of $33,000, $86,000 and $27,000 for the years ended December 31, 2015, 2014 and 2013, respectively, for compensation expense related to its stock option plan for which no corresponding charge to operations has been recorded. Such amounts have been added to additional paid-in capital in those years. |
Note 9 -Stock Based Compensatio
Note 9 -Stock Based Compensation | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 9. STOCK BASED COMPENSATION The Company accounts for compensation expense associated with stock options and restricted stock units (“RSUs”) based on the fair value of the options and units on the date of grant. The Company used the modified transition method to establish the beginning balance of the additional paid-in capital pool related to the tax effects of employee stock-based compensation, which is available to absorb tax deficiencies recognized subsequent to the adoption of the fair value method. The Company’s net income (loss) for the years ended December 31, 2015, 2014 and 2013, includes approximately $524,000, $468,000 and $380,000 of stock based compensation expense, respectively, for the grant of stock options and RSUs . The Company recorded reductions in income tax payable of approximately $325,000, $513,000 and $266,000 for the years ended December 31, 2015, 2014 and 2013, respectively, as a result of the tax benefit upon exercise of options. The compensation expense related to the Company’s stock based compensation arrangements is recorded as a component of selling, general and administrative expenses. Cash flows resulting from tax deductions in excess of the cumulative compensation cost recognized from options exercised (excess tax benefits) are classified as cash inflows from financing activities and cash inflows from operating activities. In 2000, the Company adopted the Performance Equity Plan 2000 (the “2000 Plan”). The 2000 Plan, as amended, reserved 1,230,000 common shares for issuance. The 2000 Plan provides for the issuance of either incentive stock options or nonqualified stock options to employees, consultants or others who provide services to the Company. The options’ exercise price is equal to the closing price of the Company’s shares on the day of issuance, except for incentive stock options granted to the Company’s president, which are exercisable at 110% of the closing price of the Company’s shares on the date of issuance. In 2009, the Company adopted the Performance Equity Plan 2009 (the “2009 Plan”). The 2009 Plan reserved 500,000 common shares for issuance. The 2009 Plan provides for the issuance of either incentive stock options or nonqualified stock options to employees, consultants or others who provide services to the Company. The options’ exercise price is equal to the closing price of the Company’s shares on the day of issuance, except for incentive stock options granted to any person possessing more than 10% of the total combined voting power of all classes of Company stock, which are exercisable at 110% of the closing price of the Company’s shares on the date of issuance. The Company has 113,787 options available for grant under the 2009 Plan. The estimated fair value of each option award granted was determined on the date of grant using the Black-Scholes option valuation model. The following weighted average assumptions were used for option grants during the years ended December 31, 2014 and 2013: 2014 2013 Risk-free interest rate 1.45 % 0.72 % Expected volatility 102.0 % 106.0 % Dividend yield 0 % 0 % Expected option term in years 5 5 The Company did not grant any stock options in 2015. The risk free interest rate for the years ended December 31, 2014 and 2013 is based on the five year U.S. Treasury note rate on the day of grant. The expected volatility computation for the years ended December 31, 2014 and 2013 is based on the average of the volatility over the most recent five year period, which represents the Company’s estimate of expected volatility over the expected option term. The Company has never paid a dividend, and is not expected to pay a dividend in the foreseeable future, therefore the dividend yield is assumed to be zero. The Company assumes zero forfeitures of options. A summary of the status of the Company’s stock option plans is as follows: Fixed Options Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding at January 1, 2013 495,517 $ 9.33 2.73 Granted during period 46,402 10.64 Exercised (45,000 ) 6.70 Forfeited/Expired (35,000 ) 8.20 Outstanding at December 31, 2013 461,919 9.80 2.28 Granted during period 43,064 14.67 Exercised (155,000 ) 8.52 Outstanding at December 31, 2014 349,983 10.97 2.20 Granted during period - - Exercised (55,000 ) 8.00 Forfeited/Expired (25,000 ) 14.08 Outstanding at December 31, 2015 269,983 $ 11.29 $ 1.71 $ 221,397 Vested at December 31, 2015 269,983 $ 11.29 $ 1.71 $ 221,397 The weighted-average fair value of each option granted during the years ended December 31, 2014 and 2013, estimated as of the grant date using the Black-Scholes option valuation model was $10.86 and $8.17, respectively. The Company’s stock options granted to non-employee directors vest immediately upon grant and have a maximum contractual term of five years. Stock options granted to employees vest over three years and have a maximum contractual term of ten years. The expected option term is calculated utilizing historical data of option exercises. During the year ended December 31, 2015, 10,000 stock options were exercised for cash, resulting in proceeds to the Company of $80,000. During the same period, 45,000 options were exercised, pursuant to provisions of the stock option plan, where the Company received no cash and 29,648 shares of its common stock in exchange for the 45,000 shares issued in the exercise. The 29,648 shares that the Company received were valued at $362,012, the fair market value of the shares on the dates of exercise . During the years ended December 31, 2015, 2014 and 2013, the Company recognized a tax benefit of $33,000, $86,000 and $27,000, respectively, from the exercise of stock options. The intrinsic value of stock options exercised during the years ended December 31, 2015, 2014 and 2013 was approximately $230,500, $679,000 and $266,000, respectively. The fair value of all options vested during the years ended December 31, 2015, 2014 and 2013 was approximately $221,000, $387,000 and $2,472,000, respectively. |
Note 10 - Employee Benefit Plan
Note 10 - Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Compensation and Employee Benefit Plans [Text Block] | 10. EMPLOYEE BENEFIT PLAN On September 11, 1996, the Company’s board of directors instituted a defined contribution plan under Section 401(k) of the Internal Revenue Code (the “Code”). On October 1, 1998, the Company amended and standardized its plan as required by the Code. Pursuant to the amended plan, qualified employees may contribute a percentage of their pretax eligible compensation to the Plan and the Company will match a percentage of each employee’s contribution. Additionally, the Company has a profit-sharing plan covering all eligible employees. Contributions by the Company are at the discretion of management. The amount of contributions recorded by the Company in 2015, 2014 and 2013 amounted to $422,334, $355,428 and $326,416, respectively. |
Note 11 - Major Customers
Note 11 - Major Customers | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Major Customers [Text Block] | 11. MAJOR CUSTOMERS: One percent of revenue in 2015, 2% of revenue in 2014 and 2% of revenue in 2013 were directly to the U.S. government. Less than 1% and 1% of accounts receivable at December 31, 2015 and 2014, respectively, were from the U. S. Government. In addition, in 2015, 30%, 17%, 13% and 12% of our revenue were to our four largest commercial customers, respectively. In 2014, 22%, 22%, 19% and 11% of our revenue were to our four largest commercial customers, respectively. At December 31, 2015, 30%, 18% and 16% of accounts receivable were from our three largest commercial customers. At December 31, 2014, 26%, 21% and 15% of accounts receivable were from our three largest commercial customers. At December 31, 2015 and 2014, 1% of costs and estimated earnings in excess of billings on uncompleted contracts were from the U.S. Government. At December 31, 2015, 26%, 23%, 13%, and 11% of costs and estimated earnings in excess of billings on uncompleted contracts were from our four largest commercial customers. At December 31, 2014, 27%, 25%, 13% and 8% of costs and estimated earnings in excess of billings on uncompleted contracts were from our four largest commercial customers. |
Note 12 - Quarterly Financial D
Note 12 - Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Quarterly Financial Information [Text Block] | 12. QUARTERLY FINANCIAL DATA (UNAUDITED) The results of any single quarter are not necessarily indicative of the Company’s results for the full year. Earnings per share data is computed independently for each of the periods presented. As a result, the sum of the earnings per share amounts for the quarter may not equal the total for the year. Quarter ended 2015 March 31, June 30, September 30, December 31, Revenue $ 19,876,566 $ 21,944,320 $ 26,790,881 $ 31,590,790 Gross Profit 3,602,071 3,848,369 5,596,432 3,554,831 Net Income 928,120 990,108 2,446,085 651,680 Income per common share Basic 0.11 0.12 0.29 0.08 Diluted 0.11 0.12 0.28 0.08 2014 Revenue $ 21,883,517 $ (23,751,623 ) $ 21,487,677 $ 20,067,439 Gross Profit (loss) 4,491,132 (42,963,154 ) 4,471,304 4,276,019 Net Income (loss) 1,728,869 (29,691,951 ) 1,697,547 1,056,260 Income (loss) per common share Basic 0.21 (3.50 ) 0.20 0.20 Diluted 0.20 (3.50 ) 0.20 0.20 |
Note 13 - Subsequent Event
Note 13 - Subsequent Event | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | 13. SUBSEQUENT EVENT On March 24, 2016, the Company entered into a Credit Agreement with Bank United as the sole arranger, administrative agent and collateral agent and Citizens Bank N.A. The Credit Agreement provides for a revolving credit loan commitment of $30 million and a $10 million term loan. The proceeds of the Credit Agreement were used to pay off all amounts outstanding under the Santander Term Facility and the Revolving Facility. The term of the Credit Agreement is through March of 2019. The revolving loan bears interest at a rate based upon a pricing grid, as defined in the agreement. The range for LIBOR based loans is between 2% and 2.75% above the then applicable LIBOR rate. The range of base rate loans is between the bank’s prime rate and 0.25% above the bank’s prime rate. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Schedule of Valuation and Qualifying Accounts Disclosure [Text Block] | Schedule II - Valuation and Qualifying Accounts Allowance for Doubtful Accounts (Deducted from Accounts Receivable) 2015 2014 2013 Balance at January 1 $ 25,000 $ 25,000 $ 25,000 (Deductions from)/charges to costs and expenses 50,000 - - Deductions from reserves - - - Balance at December 31, $ 75,000 $ 25,000 $ 25,000 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires the use of estimates by management. Actual results could differ from these estimates. |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition The Company’s revenue is recognized based on the percentage of completion method of accounting for its contracts measured by the percentage of total costs incurred to date to estimated total costs at completion for each contract. Contract costs include all direct material, labor costs, tooling and those indirect costs related to contract performance, such as indirect labor, supplies, tools, repairs and depreciation costs. Selling, general and administrative costs are charged to expense as incurred. Estimated losses on uncompleted contracts are recognized in the period in which such losses are determined. Changes in job performance may result in revisions to costs and income and are recognized in the period in which revisions are determined to be required. The percentage of completion method of accounting involves considerable use of estimates in determining revenues, costs and profits and in assigning the amounts to accounting periods and, as a result, there can be a significant disparity between earnings (both for accounting and taxes) as reported and actual cash received by the Company during any reporting period. In accordance with industry practice, costs and estimated earnings in excess of billings on uncompleted contracts, included in the accompanying balance sheets, contain amounts relating to contracts and programs with long production cycles, a portion of which will not be realized within one year. The Company’s recorded revenue may be adjusted in later periods in the event that the Company’s cost estimates prove to be inaccurate or a contract is terminated. When adjustments are required for the estimated total revenue on a contract, these changes are recognized with an inception-to-date effect in the current period. Also, when estimates of total costs to be incurred exceed estimates of total revenue to be earned, a provision for the entire loss on the contract is recorded in the period in which the loss is determined. During the year ended December 31, 2014, the Company adjusted the estimated total revenue and recorded a loss on its Wing Replacement Program (“WRP”) for the U.S. Air Force’s A-10 Thunderbolt aircraft (“A-10”). The long - term future of the A-10 has been uncertain since March 2014 when the U.S. Department of Defense released its 2015 Budget Request that called for the retirement of the entire A-10 fleet. More recent events have led the Company to conclude that our A-10 WRP will likely not continue to the full 242 aircraft as anticipated at the start of the program. The 2015 Department of Defense Appropriations Act passed by the United States House of Representatives on June 20, 2014 provides no funding for A-10 operations in U. S. Government fiscal year 2015 that commenced October 1, 2014. Further, this bill rescinds funding from the 2014 U. S. Department of Defense Budget that was to have been used for the procurement of additional wings for the A-10 in 2015. Because of the probable termination of the Company’s A-10 WRP, the Company reduced its revenue estimates with respect to this program by approximately 41% in 2014. This change in estimate results in an approximate cumulative $44.7 million decrease in revenue from the inception of the program in 2008 through June 30, 2014, all of which was recorded in the quarter ended June 30, 2014. Also, the uncertainty of the future of the A-10 aircraft has impacted the Company’s ability to achieve normal program cost reductions at suppliers. Accordingly, in addition to the $44.7 million adjustment to revenue in 2014, we have recorded a $2.6 million adjustment to cost of sales on the A-10 WRP. |
Government Contractors, Policy [Policy Text Block] | Government Contracts The Company’s government contracts are subject to the procurement rules and regulations of the U.S. government. Many of the contract terms are dictated by these rules and regulations. Specifically, cost-based pricing is determined under the Federal Acquisition Regulation (“FAR”), which provide guidance on the types of costs that are allowable in establishing prices for goods and services under U.S. government contracts. For example, costs such as those related to charitable contributions, advertising, interest expense, and public relations are unallowable, and therefore not recoverable through sales. During and after the fulfillment of a government contract, the Company may be audited in respect of the direct and allocated indirect costs attributable thereto. These audits may result in adjustments to the Company’s contract cost, and/or revenue. When contractual terms allow, the Company invoices its customers on a progress basis. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash The Company maintains its cash in two financial institutions. The balances are insured by the Federal Deposit Insurance Corporation. From time to time, the Company’s balances may exceed these limits. As of December 31, 2015 and 2014, the Company had approximately $1,103,000 and $1,110,000, respectively, of uninsured balances. The Company limits its credit risk by selecting financial institutions considered to be highly credit worthy. |
Balance Sheet Classification, Deferred Taxes [Policy Text Block] | Balance Sheet Classification of Deferred Taxes During the fourth quarter of 2015, the Company early adopted amended Financial Accounting Standards Board (“FASB”) guidance which eliminates the requirement to separate deferred income tax liabilities and assets into current and noncurrent amounts on the balance sheet. Rather the amended guidance requires deferred tax liabilities and assets be classified as noncurrent on the balance sheet. Prior period amounts were restated to conform with this presentation. The adoption of this guidance resulted in the elimination of “Deferred income tax assets” of $1,708,000 within current assets, the elimination of “Deferred tax liabilities” of $128,000 within current liabilities, the elimination of “Deferred tax liabilities” of $622,000 within non-current liabilities and the elimination of “Deferred tax assets” of $3,591,000 within non-current assets on the Company’s Balance Sheet at December 31, 2014. |
Receivables, Policy [Policy Text Block] | Accounts Receivable Accounts receivable are reported at their outstanding unpaid principal balances. The Company writes off accounts when they are deemed to be uncollectible. |
Property, Plant and Equipment, Policy [Policy Text Block] | Property and Equipment Depreciation and amortization of property and equipment is provided by the straight-line method over the shorter of estimated useful lives of the respective assets or the life of the lease, for leasehold improvements. |
Rent [PolicyText Block] | Rent We recognize rent expense on a straight-line basis over the expected lease term. Within the provisions of certain leases there are escalations in payments over the lease term. The effects of the escalations have been reflected in rent expense on a straight-line basis over the expected lease term. |
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | Long - Lived Assets The Company reviews its long-lived assets and certain related intangibles for impairment whenever changes in circumstances indicate that the carrying amount of an asset may not be fully recoverable. As a result of its review, the Company does not believe that any such change has occurred. If such changes in circumstance are present, a loss is recognized to the extent the carrying value of the asset is in excess of the fair value of cash flows expected to result from the use of the asset and amounts expected to be realized upon its eventual disposition. |
Debt, Policy [Policy Text Block] | Short-Term Debt The fair value of the Company’s short-term debt is estimated based on the current rates offered to the Company for debt of similar terms and maturities. Using this method, the fair value of the Company’s short-term debt was not significantly different than the stated value at December 31, 2015 and 2014. |
Derivatives, Policy [Policy Text Block] | Derivatives Our use of derivative instruments has primarily been to hedge interest rates. These derivative contracts are entered into with financial institutions. We do not use derivative instruments for trading purposes and we have procedures in place to monitor and control their use. We record these derivative financial instruments on the balance sheet at fair value. For derivative instruments that are designated and qualify as a cash flow hedge, the effective portion of the gain or loss on the derivative instrument is reported as a component of other comprehensive loss and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Any ineffective portion of the gain or loss on the derivative instrument for a cash flow hedge is recorded in the results of operations immediately. For derivative instruments not designated as hedging instruments, the gain or loss is recognized in the results of operations immediately. See below for a discussion of our use of derivative instruments, management of credit risk inherent in derivative instruments and fair value information. In October 2008, the Company entered into an interest rate swap with the objective of reducing our exposure to cash flow volatility arising from interest rate fluctuations associated with certain debt. The notional amount, maturity date, and currency of these contracts match those of the underlying debt. The Company has designated this interest rate swap contract as a cash flow hedge. The Company measures ineffectiveness by comparing the cumulative change in the forward contact with the cumulative change in the hedged item. No material ineffectiveness was recognized in 2015 and 2014. As of December 31, 2015 and 2014, we had a net deferred loss associated with cash flow hedges of approximately $4,500 and $14,700, respectively, due to the interest rate swap which has been included in Other Liabilities. As a result of the use of derivative instruments, the Company is exposed to risk that the counterparties may fail to meet their contractual obligations. Recent adverse developments in the global financial and credit markets could negatively impact the creditworthiness of our counterparties and cause one or more of our counterparties to fail to perform as expected. To mitigate the counterparty credit risk, we only enter into contracts with carefully selected major financial institutions based upon their credit ratings and other factors, and continually assess the creditworthiness of counterparties. To date, all counterparties have performed in accordance with their contractual obligations. |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair Value At December 31, 2015 and 2014, the fair values of cash, accounts receivable, accounts payable and accrued expenses approximated their carrying values because of the short-term nature of these instruments. 2015 2014 Carrying Fair Value Carrying Amount Fair Value Debt Short-term borrowings and long-term debt $ 25,195,452 $ 25,195,452 $ 27,411,556 $ 27,411,556 We estimated the fair value of debt using market quotes and calculations based on market rates. The following tables present the fair values of liabilities measured on a recurring basis as of December 31, 2015 and 2014: Fair Value Measurements 201 Description Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Interest Rate Swap $ 4,453 -- $ 4,453 -- Total $ 4,453 -- $ 4,453 -- Fair Value Measurements Description Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Interest Rate Swap $ 14,716 -- $ 14,716 -- Total $ 14,716 -- $ 14,716 -- The fair value of the Company’s interest rate swap was determined by comparing the fixed rate set at the inception of the transaction to the “replacement swap rate,” which represents the market rate for an offsetting interest rate swap with the same notional amounts and final maturity date. The market value is then determined by calculating the present value interest differential between the contractual swap and the replacement swap. As of December 31, 2015 and 2014, $4,453 and $14,716, respectively, was included in other liabilities related to the fair value of the Company’s interest rate swap, and $3,453 and $9,716, respectively, net of tax of $1,000 and $5,000, respectively, was included in Accumulated Other Comprehensive Loss. |
Earnings Per Share, Policy [Policy Text Block] | Earnings Per Share Basic earnings per common share is computed using the weighted-average number of shares outstanding. Diluted earnings per common share is computed using the weighted-average number of shares outstanding adjusted for the incremental shares attributed to outstanding options to purchase common stock. Incremental shares of approximately 85,000 were used in the calculation of diluted earnings per common share in 2015. Incremental shares of 184,983 were not included in the diluted earnings per share calculations at December 31, 2015, as their exercise price was in excess of the Company’s quoted market price and, accordingly, these shares are not assumed to be exercised for the diluted earnings per share calculation. No incremental shares were used in the calculation of diluted loss per common share in 2014, as the effect of incremental shares would be anti-dilutive. Incremental shares of 381,919 were used in the calculation of diluted earnings per common share in 2013. Incremental shares of 116,292 were not included in the diluted earnings per share calculations at December 31, 2013, as their exercise price was in excess of the Company’s quoted market price and accordingly, these shares are not assumed to be exercised for the diluted earnings per share calculation. |
Income Tax, Policy [Policy Text Block] | Income taxes Income taxes are accounted for under the asset and liability method whereby deferred tax assets and liabilities are recognized for future tax consequences attributable to the temporary differences between the financial statements carrying amounts of assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period that includes the enactment date. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company has recorded a liability of approximately $98,000 for unrecognized tax benefits resulting from tax positions taken, or expected to be taken, in an income tax return. It is the Company’s policy to recognize interest and penalties related to uncertain tax positions as a component of income tax expense. Uncertain tax positions are evaluated and adjusted as appropriate, while taking into account the progress of audits of various taxing jurisdictions. |
New Accounting Pronouncements, Policy [Policy Text Block] | R ecent A ccounting P ronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2014-09 (“ASU 2014-09”), Revenue from Contracts with Customers (Topic 606) |
Note 1 - Principal Business A22
Note 1 - Principal Business Activity and Summary of Significant Account Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Fair Value, by Balance Sheet Grouping [Table Text Block] | 2015 2014 Carrying Fair Value Carrying Amount Fair Value Debt Short-term borrowings and long-term debt $ 25,195,452 $ 25,195,452 $ 27,411,556 $ 27,411,556 |
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | Fair Value Measurements 201 Description Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Interest Rate Swap $ 4,453 -- $ 4,453 -- Total $ 4,453 -- $ 4,453 -- Fair Value Measurements Description Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Interest Rate Swap $ 14,716 -- $ 14,716 -- Total $ 14,716 -- $ 14,716 -- |
Note 2 - Costs and Estimated 23
Note 2 - Costs and Estimated Earnings in Excess of Billings on Uncompleted Contracts (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Unrealized Gain (Loss) on Investments [Table Text Block] | U.S. Government Commerc Total Costs incurred on uncompleted contracts $ 349,458,368 $ 123,078,356 $ 472,536,724 Estimated earnings 62,718,792 49,539,299 112,258,091 412,177,160 172,617,655 584,794,815 Less billings to date 353,601,903 128,745,963 482,347,866 Costs and estimated earnings in excess of billings on uncompleted contracts $ 58,575,257 $ 43,871,692 $ 102,446,949 U.S. Government Commercial Total Costs incurred on uncompleted contracts $ 299,871,583 $ 90,272,545 $ 390,144,128 Estimated earnings 56,708,610 39,773,983 96,482,593 356,580,193 130,046,528 486,626,721 Less billings to date 313,441,471 94,324,761 407,766,232 Costs and estimated earnings in excess of billings on uncompleted contracts $ 43,138,722 $ 35,721,767 $ 78,860,489 |
Net Unbilled and Estimated Earnings [Table Text Block] | 2015 2014 Costs and estimated earnings in excess of billings on uncompleted contracts $ 102,622,387 $ 79,054,139 Billings in excess of costs and estimated earnings on uncompleted contracts (175,438 ) (193,650 ) Totals $ 102,446,949 $ 78,860,489 |
Note 3 - Accounts Receivable (T
Note 3 - Accounts Receivable (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | December 31, 2015 2014 Billed receivables $ 7,740,837 $ 6,491,814 Less: allowance for doubtful accounts (75,000 ) (25,000 ) $ 7,665,837 $ 6,466,814 |
Note 4 - Property and Equipme25
Note 4 - Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | December 31, Estimated 2015 2014 Useful Life (years) Machinery and equipment $ 1,910,532 $ 1,646,787 5 to 10 Computer equipment 3,326,594 3,163,227 5 Furniture and fixtures 610,323 610,323 7 Automobiles and trucks 13,162 13,162 5 Leasehold improvements 1,562,856 1,532,355 10 7,423,467 6,965,854 Less accumulated depreciation and amortization 5,064,731 4,210,668 $ 2,358,736 $ 2,755,186 |
Note 6 - Long-term Debt (Tables
Note 6 - Long-term Debt (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Schedule of Maturities of Long-term Debt [Table Text Block] | Year ending December 31, 2016 $1,011,491 2017 376,527 2018 47,638 2019 38,791 2020 21,005 $1,495,452 |
Note 7 - Commitments (Tables)
Note 7 - Commitments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Contractual Obligation, Fiscal Year Maturity Schedule [Table Text Block] | Year ending December 31, 2016 $1,600,467 2017 1,639,382 2018 1,679,465 2019 1,720,750 2020 1,763,274 Thereafter 2,409,432 $10,812,770 |
Note 8 - Income Taxes (Tables)
Note 8 - Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Year ended December 31, 2015 2014 2013 Current: Federal $ 82,000 $ (8,646,000 ) $ 3,334,000 Prior year under accrual 143,000 44,000 190,000 State 107,000 6,000 --- Deferred: Federal 2,659,000 (3,877,000 ) (107,000 ) $ 2,991,000 $ (12,473,000 ) $ 3,417,000 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | December 31, 2015 2014 2013 Taxes computed at the federal statutory rate $ 2,722,000 $ (12,812,000 ) $ 3,792,000 State income tax, net 70,000 4,000 -- Prior year true-up 325,000 44,000 190,000 Research and development tax credit (177,000 ) (140,000 ) --- Reduction in domestic production activity -- 893,000 --- AMT credit carryforward -- (584,000 ) --- Permanent differences 51,000 122,000 (565,000 ) Provision for (benefit from) income taxes $ 2,991,000 $ (12,473,000 ) $ 3,417,000 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | Deferred Tax Assets: 2015 2014 Revenue recognition $ -- $ 560,000 Interest rate swap 3,000 5,000 FIN 48 liability 33,000 --- Allowance for doubtful accounts 26,000 9,000 Credit carryforwards 1,303,000 1,134,000 Deferred rent 212,000 197,000 Stock options 626,000 827,000 Charitable contributions carry foward 18,000 --- Net operating loss carryforward 1,006,000 2,567,000 Deferred Tax Assets 3,227,000 5,299,000 Deferred Tax Liabilities: Prepaid expenses 156,000 128,000 Revenue recognition 606,000 --- Property and equipment 575,000 622,000 Deferred tax liabilities 1,337,000 750,000 Net Deferred Tax Assets $ 1,890,000 $ 4,549,000 |
Note 9 -Stock Based Compensat29
Note 9 -Stock Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | 2014 2013 Risk-free interest rate 1.45 % 0.72 % Expected volatility 102.0 % 106.0 % Dividend yield 0 % 0 % Expected option term in years 5 5 |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | Fixed Options Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding at January 1, 2013 495,517 $ 9.33 2.73 Granted during period 46,402 10.64 Exercised (45,000 ) 6.70 Forfeited/Expired (35,000 ) 8.20 Outstanding at December 31, 2013 461,919 9.80 2.28 Granted during period 43,064 14.67 Exercised (155,000 ) 8.52 Outstanding at December 31, 2014 349,983 10.97 2.20 Granted during period - - Exercised (55,000 ) 8.00 Forfeited/Expired (25,000 ) 14.08 Outstanding at December 31, 2015 269,983 $ 11.29 $ 1.71 $ 221,397 Vested at December 31, 2015 269,983 $ 11.29 $ 1.71 $ 221,397 |
Note 12 - Quarterly Financial30
Note 12 - Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Schedule of Quarterly Financial Information [Table Text Block] | Quarter ended 2015 March 31, June 30, September 30, December 31, Revenue $ 19,876,566 $ 21,944,320 $ 26,790,881 $ 31,590,790 Gross Profit 3,602,071 3,848,369 5,596,432 3,554,831 Net Income 928,120 990,108 2,446,085 651,680 Income per common share Basic 0.11 0.12 0.29 0.08 Diluted 0.11 0.12 0.28 0.08 2014 Revenue $ 21,883,517 $ (23,751,623 ) $ 21,487,677 $ 20,067,439 Gross Profit (loss) 4,491,132 (42,963,154 ) 4,471,304 4,276,019 Net Income (loss) 1,728,869 (29,691,951 ) 1,697,547 1,056,260 Income (loss) per common share Basic 0.21 (3.50 ) 0.20 0.20 Diluted 0.20 (3.50 ) 0.20 0.20 |
Schedule II - Valuation and Q31
Schedule II - Valuation and Qualifying Accounts (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Summary of Valuation Allowance [Table Text Block] | 2015 2014 2013 Balance at January 1 $ 25,000 $ 25,000 $ 25,000 (Deductions from)/charges to costs and expenses 50,000 - - Deductions from reserves - - - Balance at December 31, $ 75,000 $ 25,000 $ 25,000 |
Note 1 - Principal Business A32
Note 1 - Principal Business Activity and Summary of Significant Account Policies (Details Textual) | 12 Months Ended | |||
Dec. 31, 2015USD ($)shares | Dec. 31, 2014USD ($)shares | Dec. 31, 2013shares | Jun. 30, 2014USD ($) | |
Reclassification of Deferred Tax Assets from Current to Noncurrent [Member] | December 31, 2014 [Member] | ||||
Deferred Tax Assets, Gross, Current | $ 1,708,000 | |||
Deferred Tax Liabilities, Net, Current | 128,000 | |||
Deferred Tax Liabilities, Net, Noncurrent | 622,000 | |||
Deferred Tax Assets, Net, Noncurrent | 3,591,000 | |||
Interest Rate Swap [Member] | Other Noncurrent Liabilities [Member] | ||||
Derivative Liability | $ 4,453 | $ 14,716 | ||
Weighted Average Number Diluted Shares Outstanding Adjustment | shares | 85,000 | 0 | 381,919 | |
Loss Contingency, Estimate of Possible Loss, Percentage | 41.00% | |||
Loss Contingency, Estimate of Possible Loss | $ 44,700,000 | |||
Loss Contingency, Estimate of Change in Cost of Sales | $ 2,600,000 | |||
Number of Financial Institutions with which Cash is Maintained | 2 | |||
Cash, Uninsured Amount | $ 1,103,000 | $ 1,110,000 | ||
Deferred Gain (Loss) on Derivative, Net | 4,500 | 14,700 | ||
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges, Effect Net of Tax | 3,453 | 9,716 | ||
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges, Tax Effect | $ 1,000 | $ 5,000 | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | shares | 184,983 | 116,292 | ||
Unrecognized Tax Benefits | $ 98,000 |
Note 1 - Fair Values of Cash, A
Note 1 - Fair Values of Cash, Accounts Receivable, Accounts Payable and Accrued Expenses (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Reported Value Measurement [Member] | ||
Short-term borrowings and long-term debt | $ 25,195,452 | $ 27,411,556 |
Estimate of Fair Value Measurement [Member] | ||
Short-term borrowings and long-term debt | $ 25,195,452 | $ 27,411,556 |
Note 1 - Fair Values of Financi
Note 1 - Fair Values of Financial Liabilities Measured on a Recurring Basis (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value, Inputs, Level 2 [Member] | ||
Derivative Liability | $ 4,453 | $ 14,716 |
Total | 4,453 | 14,716 |
Derivative Liability | 4,453 | 14,716 |
Total | $ 4,453 | $ 14,716 |
Note 2 - Costs and Estimated 35
Note 2 - Costs and Estimated Earnings in Excess of Billings on Uncompleted Contracts (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Costs in Excess of Billings, Noncurrent | $ 17,600,000 | ||
Increase (Decrease) in Estimated Gross Profits on Contracts Due to Revisions | $ (1,875,000) | $ (42,568,000) | $ (3,700,000) |
Note 2 - Costs and Estimated 36
Note 2 - Costs and Estimated Earnings in Excess of Billings on Uncompleted Contracts (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
US Government [Member] | ||
Costs incurred on uncompleted contracts | $ 349,458,368 | $ 299,871,583 |
Estimated earnings | 62,718,792 | 56,708,610 |
Sub-total | 412,177,160 | 356,580,193 |
Less billings to date | 353,601,903 | 313,441,471 |
Costs and estimated earnings in excess of billings on uncompleted contracts | 58,575,257 | 43,138,722 |
Commercial [Member] | ||
Costs incurred on uncompleted contracts | 123,078,356 | 90,272,545 |
Estimated earnings | 49,539,299 | 39,773,983 |
Sub-total | 172,617,655 | 130,046,528 |
Less billings to date | 128,745,963 | 94,324,761 |
Costs and estimated earnings in excess of billings on uncompleted contracts | 43,871,692 | 35,721,767 |
Costs incurred on uncompleted contracts | 472,536,724 | 390,144,128 |
Estimated earnings | 112,258,091 | 96,482,593 |
Sub-total | 584,794,815 | 486,626,721 |
Less billings to date | 482,347,866 | 407,766,232 |
Costs and estimated earnings in excess of billings on uncompleted contracts | $ 102,446,949 | $ 78,860,489 |
Note 2 - Net Unbilled and Estim
Note 2 - Net Unbilled and Estimated Billings (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Costs and estimated earnings in excess of billings on uncompleted contracts | $ 102,622,387 | $ 79,054,139 |
Billings in excess of costs and estimated earnings on uncompleted contracts | (175,438) | (193,650) |
Totals | $ 102,446,949 | $ 78,860,489 |
Note 3 - Accounts Receivable (D
Note 3 - Accounts Receivable (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Billed receivables | $ 7,740,837 | $ 6,491,814 |
Less: allowance for doubtful accounts | (75,000) | (25,000) |
$ 7,665,837 | $ 6,466,814 |
Note 4 - Property and Equipme39
Note 4 - Property and Equipment (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Depreciation, Depletion and Amortization | $ 854,063 | $ 763,736 | $ 704,435 |
Property, Plant and Equipment, Additions | $ 247,881 | $ 67,283 |
Note 4 - Property and Equipme40
Note 4 - Property and Equipment (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Machinery and Equipment [Member] | Minimum [Member] | ||
Estimated Useful Life | 5 years | |
Machinery and Equipment [Member] | Maximum [Member] | ||
Estimated Useful Life | 10 years | |
Machinery and Equipment [Member] | ||
Property and equipment, gross | $ 1,910,532 | $ 1,646,787 |
Computer Equipment [Member] | ||
Property and equipment, gross | $ 3,326,594 | 3,163,227 |
Estimated Useful Life | 5 years | |
Furniture and Fixtures [Member] | ||
Property and equipment, gross | $ 610,323 | 610,323 |
Estimated Useful Life | 7 years | |
Vehicles [Member] | ||
Property and equipment, gross | $ 13,162 | 13,162 |
Estimated Useful Life | 5 years | |
Leasehold Improvements [Member] | ||
Property and equipment, gross | $ 1,562,856 | 1,532,355 |
Estimated Useful Life | 10 years | |
Property and equipment, gross | $ 7,423,467 | 6,965,854 |
Less accumulated depreciation and amortization | 5,064,731 | 4,210,668 |
Property and equipment, net | $ 2,358,736 | $ 2,755,186 |
Note 5 - Line of Credit (Detail
Note 5 - Line of Credit (Details Textual) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 05, 2012 |
Revolving Credit Facility [Member] | Restated Agreement [Member] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 35 | |
Line of Credit Facility, Interest Rate at Period End | 3.25% | |
Long-term Line of Credit | $ 23.7 | |
Line of Credit Facility, Interest Rate at Period End | 3.50% |
Note 6 - Long-term Debt (Detail
Note 6 - Long-term Debt (Details Textual) - USD ($) | Mar. 09, 2012 | Dec. 31, 2015 | Dec. 31, 2014 |
Sovereign Term Facility [Member] | Term Loan [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||
Debt Instrument, Basis Spread on Variable Rate | 3.00% | ||
Sovereign Term Facility [Member] | Term Loan [Member] | |||
Debt Instrument, Face Amount | $ 4,500,000 | ||
Period Of Amortization | 5 years | ||
Sovereign Term Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Interest Rate Swap [Member] | |||
Debt Instrument, Basis Spread on Variable Rate | 3.00% | ||
Sovereign Term Facility [Member] | Interest Rate Swap [Member] | |||
Derivative, Remaining Maturity | 5 years | ||
Derivative Liability, Notional Amount | $ 4,500,000 | ||
Derivative, Swaption Interest Rate | 4.11% | ||
Derivative, Average Swaption Interest Rate | 4.11% | ||
Restated Agreement [Member] | Revolving Credit Facility [Member] | |||
Line of Credit Facility, Interest Rate at Period End | 3.25% | ||
Assets Held under Capital Leases [Member] | |||
Property, Plant and Equipment, Gross | $ 1,363,977 | $ 1,118,720 | |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | $ 971,000 | 765,000 | |
Line of Credit Facility, Interest Rate at Period End | 3.50% | ||
Long-term Debt and Capital Lease Obligations | $ 295,452 | 161,555 | |
Long-term Debt and Capital Lease Obligations, Current | 111,491 | 71,713 | |
Property, Plant and Equipment, Gross | 7,423,467 | 6,965,854 | |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | $ 5,064,731 | $ 4,210,668 |
Note 6 - Maturities of Long-ter
Note 6 - Maturities of Long-term Debt (Details) | Dec. 31, 2015USD ($) |
2,016 | $ 1,011,491 |
2,017 | 376,527 |
2,018 | 47,638 |
2,019 | 38,791 |
2,020 | 21,005 |
Total maturities | $ 1,495,452 |
Note 7 - Commitments (Details T
Note 7 - Commitments (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Employees Agreement [Member] | |||
Other Commitment | $ 606,000 | ||
Operating Leases, Rent Expense, Net | $ 1,608,701 | $ 1,608,702 | $ 1,636,171 |
Note 7 - Future Commitment unde
Note 7 - Future Commitment under Employment Agreement (Details) | Dec. 31, 2015USD ($) |
2,016 | $ 1,600,467 |
2,017 | 1,639,382 |
2,018 | 1,679,465 |
2,019 | 1,720,750 |
2,020 | 1,763,274 |
Thereafter | 2,409,432 |
$ 10,812,770 |
Note 8 - Income Taxes (Details
Note 8 - Income Taxes (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | $ 33,000 | $ 86,000 | $ 27,000 |
Note 8 - Provision for Income T
Note 8 - Provision for Income Taxes (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Current: | |||
Federal | $ 82,000 | $ (8,646,000) | $ 3,334,000 |
Prior year under accrual | 143,000 | 44,000 | $ 190,000 |
State | 107,000 | 6,000 | |
Deferred: | |||
Federal | 2,659,000 | (3,877,000) | $ (107,000) |
$ 2,991,000 | $ (12,473,000) | $ 3,417,000 |
Note 8 - Effective Income Tax R
Note 8 - Effective Income Tax Rate Reconciliation (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Taxes computed at the federal statutory rate | $ 2,722,000 | $ (12,812,000) | $ 3,792,000 |
State income tax, net | 70,000 | 4,000 | |
Prior year true-up | 325,000 | 44,000 | $ 190,000 |
Research and development tax credit | $ (177,000) | (140,000) | |
Reduction in domestic production activity | 893,000 | ||
AMT credit carryforward | (584,000) | ||
Permanent differences | $ 51,000 | 122,000 | $ (565,000) |
Provision for (benefit from) income taxes | $ 2,991,000 | $ (12,473,000) | $ 3,417,000 |
Note 8 - Components of Deferred
Note 8 - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred Tax Assets Current Member | ||
Interest rate swap | $ 3,000 | $ 5,000 |
Deferred Tax Liability [Member] | ||
Revenue recognition | $ 606,000 | |
Revenue recognition | $ 560,000 | |
FIN 48 liability | $ 33,000 | |
Allowance for doubtful accounts | 26,000 | $ 9,000 |
Credit carryforwards | 1,303,000 | 1,134,000 |
Deferred rent | 212,000 | 197,000 |
Stock options | 626,000 | $ 827,000 |
Charitable contributions carry foward | 18,000 | |
Net operating loss carryforward | 1,006,000 | $ 2,567,000 |
Deferred Tax Assets | 3,227,000 | 5,299,000 |
Prepaid expenses | 156,000 | 128,000 |
Property and equipment | 575,000 | 622,000 |
Deferred tax liabilities | 1,337,000 | 750,000 |
Net Deferred Tax Assets | $ 1,890,000 | $ 4,549,000 |
Note 9 -Stock Based Compensat50
Note 9 -Stock Based Compensation (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Stock Option Plan 1995 [Member] | |||
Allocated Share-based Compensation Expense | $ 468,000 | $ 380,000 | |
Employee Service Share-based Compensation, Tax Benefit Realized from Exercise of Stock Options | $ 325,000 | 513,000 | 266,000 |
Performance Equity Plan 2000 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 1,230,000 | ||
Share-based Compensation Arrangement, Exercisable Price for Options Granted to President and Specific Persons as Percentage of Closing Price | 110.00% | ||
Share-based Compensation Arrangement Percentage of Voting Stock Considered for Higher Exercise Price | 10.00% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 113,787 | ||
Performance Equity Plan 2009 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 500,000 | ||
Maximum [Member] | Non-employees [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Remaining Contractual Term | 5 years | ||
Maximum [Member] | Employees Agreement [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Remaining Contractual Term | 10 years | ||
Employees Agreement [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||
Issue of Stock for Cash and Noncash Consideration [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 10,000 | ||
Treasury Stock, Value, Acquired, Cost Method | $ 362,012 | ||
Issue of Stock for Noncash Consideration 2 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 45,000 | ||
Treasury Stock, Shares, Acquired | 29,648 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | 0 | ||
Allocated Share-based Compensation Expense | $ 524,000 | ||
Employee Service Share-based Compensation, Tax Benefit Realized from Exercise of Stock Options | $ 33,000 | $ 86,000 | $ 27,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.00% | 0.00% | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 10.86 | $ 8.17 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 55,000 | 155,000 | 45,000 |
Proceeds from Stock Options Exercised | $ 80,000 | $ 447,751 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | 230,500 | 679,000 | $ 266,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | $ 221,000 | $ 387,000 | $ 2,472,000 |
Note 9 - Weighted-average Assum
Note 9 - Weighted-average Assumptions Used for Options Granted (Details) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Risk-free interest rate | 1.45% | 0.72% |
Expected volatility | 102.00% | 106.00% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.00% | 0.00% |
Expected option term in years | 5 years | 5 years |
Note 9 - Stock Option Activity
Note 9 - Stock Option Activity (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Options, Outstanding (in shares) | 349,983 | 461,919 | 495,517 | |
Weighted average exercise price, Outstanding (in dollars per share) | $ 10.97 | $ 9.80 | $ 9.33 | |
Weighted average remaining contractual life, Outstanding | 1 year 259 days | 2 years 73 days | 2 years 102 days | 2 years 266 days |
Granted during period (in shares) | 43,064 | 46,402 | ||
Weighted average exercise price, Granted (in dollars per share) | $ 14.67 | $ 10.64 | ||
Options, Exercised (in shares) | (55,000) | (155,000) | (45,000) | |
Weighted average exercise price, Exercised (in dollars per share) | $ 8 | $ 8.52 | $ 6.70 | |
Forfeited/Expired (in shares) | (25,000) | (35,000) | ||
Forfeited/Expired (in dollars per share) | $ 14.08 | $ 8.20 | ||
Options, Outstanding (in shares) | 269,983 | 349,983 | 461,919 | 495,517 |
Weighted average exercise price, Outstanding (in dollars per share) | $ 11.29 | $ 10.97 | $ 9.80 | $ 9.33 |
Average intrinsic value, Outstanding | $ 221,397 | |||
Options, vested (in shares) | 269,983 | |||
Weighted average exercise price, vested (in dollars per share) | $ 11.29 | |||
Weighted average remaining contractual life, vested | 1 year 259 days | |||
Average intrinsic value, vested | $ 221,397 |
Note 10 - Employee Benefit Pl53
Note 10 - Employee Benefit Plan (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Contribution Plan, Cost Recognized | $ 422,334 | $ 355,428 | $ 326,416 |
Note 11 - Major Customers (Deta
Note 11 - Major Customers (Details Textual) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Costs and Estimated Earnings in Excess of Billings on Uncompleted Contracts [Member] | Customer Concentration Risk [Member] | US Government [Member] | |||
Concentration Risk, Percentage | 1.00% | 1.00% | |
Costs and Estimated Earnings in Excess of Billings on Uncompleted Contracts [Member] | Customer Concentration Risk [Member] | Customer A [Member] | |||
Concentration Risk, Percentage | 26.00% | 27.00% | |
Costs and Estimated Earnings in Excess of Billings on Uncompleted Contracts [Member] | Customer Concentration Risk [Member] | Customer B [Member] | |||
Concentration Risk, Percentage | 23.00% | 25.00% | |
Costs and Estimated Earnings in Excess of Billings on Uncompleted Contracts [Member] | Customer Concentration Risk [Member] | Customer C [Member] | |||
Concentration Risk, Percentage | 13.00% | 13.00% | |
Costs and Estimated Earnings in Excess of Billings on Uncompleted Contracts [Member] | Customer Concentration Risk [Member] | Customer D [Member] | |||
Concentration Risk, Percentage | 11.00% | 8.00% | |
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | US Government [Member] | |||
Concentration Risk, Percentage | 1.00% | 2.00% | 2.00% |
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Customer A [Member] | |||
Concentration Risk, Percentage | 30.00% | 22.00% | 26.00% |
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Customer B [Member] | |||
Concentration Risk, Percentage | 17.00% | 22.00% | 21.00% |
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Customer C [Member] | |||
Concentration Risk, Percentage | 13.00% | 19.00% | |
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Customer D [Member] | |||
Concentration Risk, Percentage | 12.00% | 11.00% | |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer A [Member] | |||
Concentration Risk, Percentage | 30.00% | ||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer B [Member] | |||
Concentration Risk, Percentage | 18.00% | ||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer C [Member] | |||
Concentration Risk, Percentage | 16.00% | 15.00% | |
Number of Large Customers Contributed to Revenue of Entity | 4 | 4 | |
Number of Large Customers Included in Accounts Receivable of Entity | 3 | 3 | |
Number of Large Commercial Customers Accounted for Major Share in Costs and Estimated Earnings in Excess of Billings on Uncompleted Contracts | 4 | 4 |
Note 12 - Quarterly Financial55
Note 12 - Quarterly Financial Data (Details) - USD ($) | 3 Months Ended | 12 Months Ended | 15 Months Ended | ||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2015 | Jun. 30, 2015 | |
Revenue | $ 31,590,790 | $ 26,790,881 | $ 21,944,320 | $ 19,876,566 | $ 20,067,439 | $ 21,487,677 | $ (23,751,623) | $ 21,883,517 | $ 100,202,557 | $ 39,687,010 | $ 82,988,522 | ||
Gross Profit (loss) | 3,554,831 | 5,596,432 | 3,848,369 | 3,602,071 | 4,276,019 | 4,471,304 | (42,963,154) | 4,491,132 | 16,601,703 | (29,724,699) | 18,433,247 | ||
Net income (loss) | $ 651,680 | $ 2,446,085 | $ 990,108 | $ 928,120 | $ 1,056,260 | $ 1,697,547 | $ (29,691,951) | $ 1,728,869 | $ 5,015,993 | $ (25,209,275) | $ 7,736,894 | ||
Basic (in dollars per share) | $ 0.08 | $ 0.29 | $ 0.12 | $ 0.11 | $ 0.20 | $ 0.20 | $ (3.50) | $ 0.21 | $ 0.59 | $ (2.98) | $ 0.92 | ||
Diluted (in dollars per share) | $ 0.08 | $ 0.11 | $ 0.20 | $ 0.20 | $ (3.50) | $ 0.20 | $ 0.58 | $ (2.98) | $ 0.91 | $ 0.28 | $ 0.12 |
Note 13 - Subsequent Event (Det
Note 13 - Subsequent Event (Details Textual) - USD ($) $ in Millions | Mar. 24, 2016 | Dec. 31, 2015 |
Revolving Credit Facility [Member] | Bank United [Member] | Subsequent Event [Member] | ||
Long-term Line of Credit | $ 30 | |
Citizens Bank N.A. [Member] | Subsequent Event [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | ||
Debt Instrument, Basis Spread on Variable Rate | 2.00% | |
Citizens Bank N.A. [Member] | Subsequent Event [Member] | London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | ||
Debt Instrument, Basis Spread on Variable Rate | 2.75% | |
Citizens Bank N.A. [Member] | Subsequent Event [Member] | Prime Rate [Member] | Maximum [Member] | ||
Debt Instrument, Basis Spread on Variable Rate | 0.25% | |
Citizens Bank N.A. [Member] | Subsequent Event [Member] | ||
Notes Payable | $ 10 | |
Long-term Line of Credit | $ 23.7 |
Schedule II - Allowance for Dou
Schedule II - Allowance for Doubtful Accounts (Details) - Allowance for Doubtful Accounts [Member] - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Balance at January 1 | $ 25,000 | $ 25,000 | $ 25,000 |
(Deductions from)/charges to costs and expenses | 50,000 | ||
Balance at December 31, | $ 75,000 | $ 25,000 | $ 25,000 |