Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Aug. 05, 2016 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Entity Registrant Name | DERMA SCIENCES, INC. | |
Entity Central Index Key | 892,160 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Trading Symbol | DSCI | |
Entity Common Stock, Shares Outstanding | 28,305,591 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Current Assets | ||
Cash and cash equivalents | $ 18,998,616 | $ 15,814,205 |
Short-term investments | 25,000,000 | 25,003,990 |
Accounts receivable, net of allowances of $606,218 and $704,527, respectively | 9,332,223 | 8,145,589 |
Inventories | 18,286,773 | 20,690,706 |
Prepaid expenses and other current assets | 1,014,749 | 1,449,407 |
Total current assets | 72,632,361 | 71,103,897 |
Long-term equity investment | 15,776,448 | 16,110,178 |
Equipment and improvements, net of accumulated depreciation and amortization of $8,426,608 and $7,634,541, respectively | 3,951,851 | 4,129,208 |
Identifiable intangible assets, net of accumulated amortization of $15,064,010 and $13,615,631, respectively | 8,382,866 | 9,831,245 |
Goodwill | 13,457,693 | 13,457,693 |
Other assets | 150,348 | 147,934 |
Total assets | 114,351,567 | 114,780,155 |
Current Liabilities | ||
Accounts payable | 2,285,434 | 2,473,056 |
Accrued expenses and other current liabilities | 4,951,112 | 6,691,340 |
Liabilities of discontinued operations | 1,477,511 | 4,371,010 |
Total current liabilities | 8,714,057 | 13,535,406 |
Long-term liabilities | 684,441 | 1,014,378 |
Deferred tax liability | 2,819,509 | 1,804,516 |
Total liabilities | 12,218,007 | 16,354,300 |
Commitments and contingencies (Note 11) | ||
Stockholders’ Equity | ||
Convertible preferred stock, $.01 par value; shares authorized 1,468,750; issued and outstanding 73,332 at June 30, 2016 and December 31, 2015 (liquidation preference of $3,222,368 at June 30, 2016) | 733 | 733 |
Common stock, $.01 par value; shares authorized 50,000,000; issued and outstanding 25,963,801 at June 30, 2016 and 25,876,870 at December 31, 2015 | 259,638 | 258,769 |
Additional paid-in capital | 236,303,495 | 234,943,291 |
Accumulated other comprehensive income | 7,394,757 | 5,272,908 |
Accumulated deficit | (141,825,063) | (142,049,846) |
Total stockholders’ equity | 102,133,560 | 98,425,855 |
Total liabilities and stockholders’ equity | $ 114,351,567 | $ 114,780,155 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Accounts receivable, allowances | $ 606,218 | $ 704,527 |
Equipment and improvements, accumulated depreciation and amortization | 8,426,608 | 7,634,541 |
Identifiable intangible assets, accumulated amortization | $ 15,064,010 | $ 13,615,631 |
Convertible preferred stock, par value per share (in dollars per share) | $ 0.01 | $ 0.01 |
Convertible preferred stock, shares authorized | 1,468,750 | 1,468,750 |
Convertible preferred stock, shares issued | 73,332 | 73,332 |
Convertible preferred stock, shares outstanding | 73,332 | 73,332 |
Convertible preferred stock, liquidation preference | $ 3,222,368 | |
Common stock, par value per share (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 25,963,801 | 25,876,870 |
Common stock, shares outstanding | 25,963,801 | 25,876,870 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2016 | Jun. 30, 2015 | [1] | Jun. 30, 2016 | Jun. 30, 2015 | [1] | |
Net Sales | $ 22,208,061 | $ 22,556,364 | $ 42,450,618 | $ 42,055,016 | ||
Cost of sales | 13,948,215 | 14,185,116 | 26,483,249 | 26,148,642 | ||
Gross Profit | 8,259,846 | 8,371,248 | 15,967,369 | 15,906,374 | ||
Operating Expenses | ||||||
Selling, general and administrative | 10,284,886 | 13,701,728 | 20,238,000 | 26,960,133 | ||
Research and development | 0 | 230,942 | 0 | 583,124 | ||
Total operating expenses | 10,284,886 | 13,932,670 | 20,238,000 | 27,543,257 | ||
Operating loss | (2,025,040) | (5,561,422) | (4,270,631) | (11,636,883) | ||
Other income, net | (4,535,101) | (880,514) | (4,803,141) | (512,726) | ||
Income (loss) from continuing operations before income taxes | 2,510,061 | (4,680,908) | 532,510 | (11,124,157) | ||
Income tax provision | 527,525 | 344,857 | 307,727 | 352,908 | ||
Net Income (Loss) from Continuing Operations | 1,982,536 | (5,025,765) | 224,783 | (11,477,065) | ||
Discontinued Operations | ||||||
Loss from discontinued operations, net of taxes | 0 | (4,259,946) | 0 | (8,418,223) | ||
Net Income (Loss) | $ 1,982,536 | $ (9,285,711) | $ 224,783 | $ (19,895,288) | ||
Net income (loss) per common share - basic | ||||||
Continuing operations | $ 0.08 | $ (0.19) | $ 0.01 | $ (0.45) | ||
Discontinued operations | 0 | (0.17) | 0 | (0.33) | ||
Total net income (loss) per common share - basic | 0.08 | (0.36) | 0.01 | (0.78) | ||
Net income (loss) per common share - diluted | ||||||
Continuing operations | 0.08 | (0.19) | 0.01 | (0.45) | ||
Discontinued operations | 0 | (0.17) | 0 | (0.33) | ||
Total net income (loss) per common share - diluted | $ 0.08 | $ (0.36) | $ 0.01 | $ (0.78) | ||
Shares used in computing net income (loss) per common share - basic | 25,915,065 | 25,759,843 | 25,897,179 | 25,656,875 | ||
Shares used in computing net income (loss) per common share - diluted | 26,058,893 | 25,759,843 | 26,036,047 | 25,656,875 | ||
[1] | Reclassified for discontinued operations. See Note 2. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |||
Net Income (Loss) | $ 1,982,536 | $ (9,285,711) | [1] | $ 224,783 | $ (19,895,288) | [1] |
Other Comprehensive Income (Loss) | ||||||
Foreign currency translation adjustment | 225,219 | (102,652) | 545,784 | (258,463) | ||
Unrealized gain on equity securities, net of taxes | 2,581,229 | (4,347) | 4,551,878 | 4,458 | ||
Less: reclassification of realized gain on equity securities included in net income (loss), net of taxes of $1,782,823 and $0, respectively | (2,975,813) | 0 | (2,975,813) | 0 | ||
Total other comprehensive income (loss) | (169,365) | (106,999) | 2,121,849 | (254,005) | ||
Comprehensive Income (Loss) | $ 1,813,171 | $ (9,392,710) | $ 2,346,632 | $ (20,149,293) | ||
[1] | Reclassified for discontinued operations. See Note 2. |
Consolidated Statements of Com6
Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Unrealized gain on equity securities, net of taxes | $ 1,546,426 | $ (2,715) | $ 2,727,050 | $ 2,786 |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Tax | $ 1,782,823 | $ 0 | $ 1,782,823 | $ 0 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | ||
Operating Activities | |||
Net income (loss) | $ 224,783 | $ (19,895,288) | [1] |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | |||
Depreciation and amortization of equipment and improvements | 527,243 | 527,987 | |
Amortization of identifiable intangible assets | 1,448,379 | 1,492,129 | |
Provision for bad debts | (109,982) | 18,235 | |
Allowance for sales adjustments | 14,041 | 168,184 | |
Provision for inventory obsolescence | 401,121 | (47,474) | |
Deferred rent | (39,623) | (43,506) | |
Stock-based compensation | 1,373,381 | 2,868,808 | |
Deferred income taxes | 78,853 | 270,255 | |
Gain on sale of investment | (4,740,136) | 0 | |
Loss on disposal of equipment | 18,615 | 0 | |
Changes in operating assets and liabilities: | |||
Accounts receivable | (1,175,699) | (560,785) | |
Inventories | 2,474,347 | (4,555,063) | |
Prepaid expenses and other assets | 507,121 | 1,685,116 | |
Accounts payable | (912,947) | 1,333,982 | |
Accrued expenses and other liabilities | (4,478,244) | (1,782,281) | |
Net cash used in operating activities | (4,388,747) | (18,519,701) | |
Investing Activities | |||
Purchase of investments | (35,008,483) | (35,000,230) | |
Proceeds from sale of investments | 42,606,631 | 45,996,000 | |
Purchase of equipment and improvements | (165,093) | (964,061) | |
Net cash provided by investing activities | 7,433,055 | 10,031,709 | |
Financing Activities | |||
Proceeds from exercise of stock options and warrants, net of costs | 5,700 | 1,991,130 | |
Payment of withholding taxes related to employee stock-based compensation | (18,010) | (67,409) | |
Net cash (used in) provided by financing activities | (12,310) | 1,923,721 | |
Effect of exchange rate changes on cash and cash equivalents | 152,413 | 173,121 | |
Net increase (decrease) in cash and cash equivalents | 3,184,411 | (6,391,150) | |
Cash and cash equivalents | |||
Beginning of period | 15,814,205 | 19,396,845 | |
End of period | 18,998,616 | 13,005,695 | |
Cash paid during the period for: | |||
Taxes | $ 430,922 | $ 0 | |
[1] | Reclassified for discontinued operations. See Note 2. |
Organization and Summary of Sig
Organization and Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block] | 1. Organization and Summary of Significant Accounting Policies Derma Sciences, Inc. and its subsidiaries (the “Company”) is a medical device company focused on two segments of the wound care marketplace: advanced wound care and traditional wound care products. The Company markets its products principally through direct sales representatives in the United States (“U.S.”), Canada and the United Kingdom (“U.K.”), and through independent distributors within other select international markets. The Company’s U.S. distribution facilities are located in St. Louis, Missouri and Houston, Texas. The Company utilizes third party distributors for distribution in Canada, Europe, Latin America, Asia and the Pacific. The Company has manufacturing facilities in Toronto, Canada and Nantong, China. See Note 12 for information on an announced sale and acquisition subsequent to June 30, 2016, which will impact the Company. The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the U.S. for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the U.S. for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the three and six months ended June 30, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016. Information included in the consolidated balance sheet as of December 31, 2015 has been derived from the consolidated financial statements and footnotes thereto for the year ended December 31, 2015, included in the Annual Report on Form 10-K previously filed with the Securities and Exchange Commission. For further information refer to the Annual Report on Form 10-K for the year ended December 31, 2015. Net income (loss) per common share basic is computed by dividing net income (loss) by the weighted average number of common shares outstanding for the period. Net income (loss) per common share diluted reflects the potential dilution of earnings by including the effects of the assumed exercise, conversion or issuance of potentially issuable shares of common stock (“potentially dilutive securities”), including those attributable to stock options, warrants, convertible preferred stock and restricted stock units, in the weighted average number of common shares outstanding for a period, if dilutive. The effects of convertible preferred stock are determined using the if converted method. The effects of the assumed exercise of warrants and stock options, and assumed lapse of restrictions on restricted stock awards, are determined using the treasury stock method. Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Weighted average common shares outstanding - basic 25,915,065 25,759,843 25,897,179 25,656,875 Dilutive shares attributable to: Convertible preferred stock 73,332 - 73,332 - Additional stock issuable related to conversion of preferred stock 49,782 - 49,782 - Restricted share units - - - - Warrants - - - - Stock options 20,714 - 15,754 - Sub-total dilutive shares 143,828 - 138,868 - Weighted average common shares outstanding - diluted 26,058,893 25,759,843 26,036,047 25,656,875 Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Excluded dilutive shares: Convertible preferred stock - 73,332 - 73,332 Additional stock issuable related to conversion of preferred stock - 49,782 - 49,782 Restricted share units 196,800 677,500 196,800 677,500 Warrants 50,000 1,755,330 50,000 1,755,330 Stock options 2,617,607 2,540,607 2,622,567 2,540,607 Total dilutive shares 2,864,407 5,096,551 2,869,367 5,096,551 Revenue from Contracts with Customers In January 2016, the FASB issued ASU No. 2016-01, Accounting for Equity Investments and Financial Liabilities In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting |
Discontinued Operations
Discontinued Operations | 6 Months Ended |
Jun. 30, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | 2. Discontinued Operations Effective November 12, 2015, the Company approved a plan to terminate its Phase 3 Aclerastide (DSC127) clinical program for diabetic foot ulcer healing. This action was based on futility determinations emanating out of the planned, pre-specified interim analyses of trial data conducted by the program’s independent Data Monitoring Committee (“DMC”). The decision to end the studies followed the recommendation by the DMC to stop the trials. Based on this recommendation, the Company initiated an orderly termination of all its existing pharmaceutical development activities, comprised of the diabetic foot ulcer healing program and two other programs utilizing the DSC127 compound for other therapeutic indications. As a result of these actions, the Company’s pharmaceutical development activities have been reported as discontinued operations in the Company’s Consolidated Financial Statements. Amounts previously reported in the Pharmaceutical Wound Care segment have been reclassified to conform to this presentation to allow for meaningful comparison of continuing operations. There were no noncash charges included in the loss from discontinued operations in the consolidated statement of operations for the three and six months ended June 30, 2015. At June 30, 2016, the Company had $ 1,477,511 |
Restructuring and Other Charges
Restructuring and Other Charges | 6 Months Ended |
Jun. 30, 2016 | |
Restructuring Charges [Abstract] | |
Restructuring and Related Activities Disclosure [Text Block] | Restructuring and Other Charges During the fourth quarter of 2015, the Company implemented a plan to reduce its cost structure in consideration of prospective market expectations for the business, coupled with the decision to move the business towards positive cash flow and profitability as soon as feasibly possible. The restructuring plan included the elimination of 39 952,534 Effective December 21, 2015, the Company’s Chairman of the Board, President and Chief Executive Officer (“CEO”) departed from the Company. On February 26, 2016, the former CEO resigned from the Company’s Board of Directors. While a national recruiting search for a permanent CEO is in process, the former lead director of the Company has assumed the role of Executive Chairman and Interim CEO. The Company incurred compensation and other benefit severance charges of $ 1,506,021 114,573 CEO Other Total Balance, January 1, 2016 $ 1,252,105 $ 826,932 $ 2,079,037 Charges during period - - - Payments during period (369,596) (779,059) (1,148,655) Balance, June 30, 2016 $ 882,509 $ 47,873 $ 930,382 Less current portion (589,048) (47,873) (636,921) Long term portion $ 293,461 $ - $ 293,461 |
Cash and Cash Equivalents and I
Cash and Cash Equivalents and Investments | 6 Months Ended |
Jun. 30, 2016 | |
Cash, Cash Equivalents, and Short-term Investments [Abstract] | |
Cash, Cash Equivalents, and Short-term Investments [Text Block] | 4. Cash and Cash Equivalents and Investments Cash and Cash Equivalents The Company considers cash and cash equivalents as amounts on hand, on deposit in financial institutions and highly liquid investments purchased with an original maturity of three months or less. The Company maintains cash and cash equivalents and money market mutual funds with various domestic and foreign financial institutions within the ordinary course of business, which at times may exceed jurisdictional insurance limits. Money market mutual funds consist of funds deposited into mutual funds investing in U.S. government and non-government obligations. Investments in Debt Securities Investments in debt securities include certificates of deposit purchased with an original maturity greater than three months which are deposited in various U.S. financial institutions and are fully insured by the Federal Deposit Insurance Corporation. The Company intends to hold the certificates of deposit to maturity and accordingly these investments are carried at amortized cost. Investments in debt securities with maturities greater than one year from the balance sheet date are classified as a long-term asset. Investment in Equity Securities In 2013 and 2014, the Company purchased an aggregate 2,802,277 8,483,693 7,594,158 925,000 resulting in a gain of $ 4,740,136 1,877,277 5.0 The investment in Comvita common stock is classified as an available-for-sale investment carried at fair value, with any unrealized gains and losses associated with the investment included in accumulated other comprehensive income and any dividends received recorded in other income, net in the Consolidated Statement of Operations. The investment is classified as a long term asset. As of June 30, 2016, the fair value of the Comvita common stock was $ 15,776,448 10,146,777 June 30, 2016 December 31, 2015 Cash $ 18,998,616 $ 10,784,522 Cash equivalents - 5,029,683 Cash and cash equivalents 18,998,616 15,814,205 Investments in debt securities 25,000,000 25,003,990 Investment in equity securities 15,776,448 16,110,178 Total investments 40,776,448 41,114,168 Total cash and cash equivalents and investments $ 59,775,064 $ 56,928,373 Fair Value Measurements, Using Total carrying Quoted prices Significant other Significant Cash and cash equivalents $ 18,998,616 $ 18,998,616 $ - $ - Investments in debt securities 25,000,000 25,000,000 - - Investment in equity securities 15,776,448 15,776,448 - - Total investments 40,776,448 40,776,448 - - Total $ 59,775,064 $ 59,775,064 $ - $ - The following table provides fair value information as of December 31, 2015: Fair Value Measurements, Using Total carrying Quoted prices Significant other Significant Cash and cash equivalents $ 15,814,205 $ 15,814,205 $ - $ - Investments in debt securities 25,003,990 25,003,990 - - Investment in equity securities 16,110,178 16,110,178 - - Total investments 41,114,168 41,114,168 - - Total $ 56,928,373 $ 56,928,373 $ - $ - Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets. Level 2 inputs are quoted prices for similar assets in active markets or inputs that are observable for the asset, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. Level 3 inputs are unobservable inputs based on management’s own assumptions used to measure assets at fair value. A financial asset’s classification is determined based on the lowest level input that is significant to the fair value measurement. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Inventory Disclosure [Text Block] | 5. Inventories June 30, 2016 December 31, 2015 Finished goods $ 12,887,368 $ 15,347,592 Work in process 397,813 346,233 Packaging materials 1,250,579 1,152,993 Raw materials 3,751,013 3,843,888 Total inventories $ 18,286,773 $ 20,690,706 |
Accrued Expenses and Other Liab
Accrued Expenses and Other Liabilities | 6 Months Ended |
Jun. 30, 2016 | |
Payables and Accruals [Abstract] | |
Accounts Payable, Accrued Liabilities, and Other Liabilities Disclosure, Current [Text Block] | 6. Accrued Expenses and Other Liabilities June 30, 2016 December 31, 2015 Accrued compensation and related taxes $ 1,344,408 $ 2,390,855 Liabilities related to restructuring (Note 3) 930,382 2,079,037 Accrued sales incentives and other fees 627,633 613,186 Accrued royalties 461,591 444,563 Other 2,271,539 2,178,077 Total accrued expenses and other liabilities $ 5,635,553 $ 7,705,718 Less current portion (4,951,112) (6,691,340) Long term liabilities $ 684,441 $ 1,014,378 |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2016 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | 7. Stockholders’ Equity Preferred Stock Subsequent to the issuances of its preferred stock, the Company has undertaken a number of common stock offerings that impact the preferred stock conversion ratios. As of June 30, 2016, current Series A and B preferred stockholders holding 73,332 123,114 49,782 Upon conversion, the 49,782 incremental shares associated with the conversion ratio adjustments will be recorded to common stock at par with the offset to additional paid in capital as all of the convertible preferred stock was issued prior to the November 16, 2000 effective date of certain provisions of Accounting Standards Codification 470 (formerly Emerging Issues Task Force Issue No. 00-27 Application of Issue No. 98-5 to Certain Convertible Instruments) Common Stock During the six months ended June 30, 2016, the Company issued 86,931 2,057 5,700 84,874 90,450 Stock Purchase Warrants At June 30, 2016, the Company had 50,000 January 14, 2019 11.81 There were no warrants exercised during the six months ended June 30, 2016. There were 1,705,330 Equity Based Compensation Under the Derma Sciences, Inc. 2012 Equity Incentive Plan (the “EIP Plan”) the Company is authorized to issue 6,000,000 2,638,321 196,800 1,945,512 Stock Options The EIP Plan permits the granting of both incentive and nonqualified stock options to employees and nonqualified stock options to non-employee directors and consultants of the Company. The option exercise price may not be less than the fair market value of the stock on the date of the grant of the option. The duration of each option may not exceed 10 Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Risk-free interest rate 1.10 % 1.12 % 1.43 % 1.61 % Volatility factor 40.0 % 36.8 % 43.9 % 45.7 % Dividend yield 0 % 0 % 0 % 0 % Expected option life (years) 3.47 3.59 5.54 5.69 The risk-free rate utilized represents the U.S. treasury yield curve rate for the expected option life at the time of grant. The volatility factor was calculated based on the Company’s historical stock price volatility equal to the expected life of the option at the grant date. The dividend yield is 0 Based on the Company’s historical experience of options that were forfeited before becoming fully vested, the Company has assumed an annualized forfeiture rate of 1.0 Options Weighted Outstanding January 1, 2016 2,301,760 $ 9.04 Granted 621,390 $ 3.35 Forfeited (52,452) $ 7.41 Exercised (3,675) $ 3.17 Expired (228,702) $ 9.33 Outstanding June 30, 2016 2,638,321 $ 7.71 Expected to vest June 30, 2016 2,611,938 $ 7.71 Exercisable at June 30, 2016 1,972,383 $ 8.44 During the six months ended June 30, 2016, the Company granted 501,490 119,900 1.40 During the six months ended June 30, 2016, 3,675 stock options were exercised on a for-cash and cashless basis. A total of 2,057 1,560 Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Cost of sales $ 26,230 $ 36,898 $ 69,949 $ 109,601 Selling, general and administrative expenses 280,589 540,568 699,281 1,324,646 Discontinued operations - (2,605) - 44,184 Total stock option compensation expense $ 306,819 $ 574,861 $ 769,230 $ 1,478,431 As of June 30, 2016, there was $ 1,240,494 100,543 2.11 0.50 Restricted Share Units The Company has issued service, performance and market-based restricted share units to employees, consultants and directors of the Company. Expense for restricted share awards is amortized on a straight-line basis over the awards’ vesting period. The fair value of service and performance awards are determined using the quoted market price of the Company’s common stock on the date of grant, while market based performance awards are valued using a binomial/lattice pricing mode. Number of Weighted Average Unvested January 1, 2016 152,750 $ 8.59 Granted 136,800 $ 3.91 Vested (90,450) $ 7.50 Cancelled (2,300) $ 8.83 Unvested June 30, 2016 196,800 $ 5.83 In connection with the vesting of restricted share unit awards during the six months ended June 30, 2016, 5,576 18,010 During the three months ended June 30, 2016 and 2015, restricted share unit compensation expense was $ 271,949 666,966 555,418 1,319,707 As of June 30, 2016, the intrinsic value of the non-vested awards was $ 775,392 797,333 0.78 In May of 2016, in consideration of prior service to the Company, the Company granted two retiring directors 30,000 48,733 In May of 2015, in consideration of prior service to the Company, the Company granted a retiring director 15,000 70,670 Shares Reserved for Future Issuance Convertible preferred stock (series A B) 73,332 Additional stock issuable related to conversion of preferred stock (series A B) 49,782 Common stock options outstanding 2,638,321 Common stock warrants outstanding 50,000 Restricted share units outstanding 196,800 Common stock equivalents available for grant 1,945,512 Total common stock shares reserved 4,953,747 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 6 Months Ended |
Jun. 30, 2016 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Comprehensive Income (Loss) Note [Text Block] | 8. Accumulated Other Comprehensive Income Foreign Unrealized Gain on Total Balance at January 1, 2016 $ 555,938 $ 4,716,970 $ 5,272,908 Other comprehensive income before reclassification 545,784 4,551,878 5,097,662 Amounts reclassified from accumulated other comprehensive income - (2,975,813) (2,975,813) Balance at June 30, 2016 $ 1,101,722 $ 6,293,035 $ 7,394,757 Amount reclassified from Affected line item in Unrealized gain on equity securities, net of taxes Realized gain on equity securities $ (4,758,636) Other income, net Income tax provision 1,782,823 Income tax provision Total reclassification $ (2,975,813) |
Operating Segments
Operating Segments | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | 9. Operating Segments The Company operates in two segments: advanced wound care and traditional wound care products. They are managed separately as each segment requires different technology, marketing and sales strategies. Advanced wound care products principally consist of both novel and otherwise differentiated dressings, devices and skin substitutes designed to promote wound healing and/or prevent infection. Traditional wound care products principally consist of commodity related dressings, ointments, gauze bandages, adhesive bandages, wound closure strips, catheter fasteners and skin care products. Advanced and traditional wound care products are marketed globally to acute care, extended care, home health care, wound and burn care clinics and physician offices. The Company utilizes a broad network of well-established distributors to deploy the majority of its products to end users. A smaller portion of the Company’s sales are sold directly to care providers and through retail. The advanced and traditional wound care products are both manufactured internally and sourced from third party suppliers. The majority of marketing expenses are deployed in support of advanced wound care products with traditional wound care products requiring limited support. The Company utilizes direct sales representatives, distributor relationships and contractual relationships with buying groups and wound care service providers to sell its products. Direct sales representatives are used solely in support of advanced wound care sales in the U.S. and the U.K. and for both advanced and traditional wound care products in Canada. Each operating segment is managed at the segment contribution level consisting of gross profit minus direct expense consisting of distribution, marketing, sales, research and development and intangible amortization expenses. Expenses are allocated directly by segment to the extent possible. Expenses common to both operating segments are allocated consistently using activity based assumptions. The aggregation or allocation of indirect expenses by segment is not practical. Three Months Ended June 30, 2016 Advanced Traditional Other Total Net sales $ 10,974,270 $ 11,233,791 $ - $ 22,208,061 Gross profit 5,852,464 2,407,382 - 8,259,846 Direct expense (6,227,238) (1,101,690) - (7,328,928) Segment contribution $ (374,774) $ 1,305,692 - 930,918 Indirect income, net $ 1,051,618 1,051,618 Net income from continuing operations $ 1,982,536 Three Months Ended June 30, 2015 Net sales $ 10,292,016 $ 12,264,348 $ - $ 22,556,364 Gross profit 4,862,036 3,509,212 - 8,371,248 Direct expense (8,694,042) (1,433,222) - (10,127,264) Segment contribution $ (3,832,006) $ 2,075,990 - (1,756,016) Indirect expenses, net $ (3,269,749) (3,269,749) Net loss from continuing operations $ (5,025,765) Six Months Ended June 30, 2016 Advanced Traditional Other Total Net sales $ 21,574,441 $ 20,876,177 $ - $ 42,450,618 Gross profit 11,237,610 4,729,759 - 15,967,369 Direct expense (12,212,481) (2,118,554) - (14,331,035) Segment contribution $ (974,871) $ 2,611,205 - 1,636,334 Indirect expenses, net $ (1,411,551) (1,411,551) Net income from continuing operations $ 224,783 Six Months Ended June 30, 2015 Net sales $ 20,063,040 $ 21,991,976 $ - $ 42,055,016 Gross profit 9,763,160 6,143,214 - 15,906,374 Direct expense (17,129,122) (2,746,673) - (19,875,795) Segment contribution $ (7,365,962) $ 3,396,541 - (3,969,421) Indirect expenses, net $ (7,507,644) (7,507,644) Net loss from continuing operations $ (11,477,065) The following table presents net sales by location of entity: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 United States 83 % 83 % United States 83 % 83 % Canada 11 % 12 % Canada 11 % 11 % Rest of World 6 % 5 % Rest of World 6 % 6 % For the three months ended June 30, 2016 and 2015, the Company had a major Canadian customer comprising 11 12 11 11 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | 10. Income Taxes Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Current tax expense $ 274,020 $ 77,908 $ 228,874 $ 82,653 Deferred tax expense 253,505 266,949 78,853 270,255 Income tax expense $ 527,525 $ 344,857 $ 307,727 $ 352,908 Effective tax rate 21.0 % (3.9) % 57.8 % (1.8) % For the three and six months ended June 30, 2016, the Company recognized income tax expense consisting of a U.S. and foreign income tax expense. The U.S. income tax expense relates to the tax impact of the unrealized gain on equity securities from accumulated other comprehensive income and tax treatment of goodwill net of amortization for financial reporting but not tax purposes of acquired identified intangible assets. The foreign income tax expense relates to income taxes recognized as a result of income recognized by the Canadian operations and taxes paid on a dividend from the Comvita investment. For the three and six months ended June 30, 2015 the Company recognized income tax expense consisting of foreign and U.S. income tax expenses. The foreign income tax expense relates to income taxes recognized as a result of the net income incurred by the Canadian operations and taxes paid on a dividend from the Comvita investment. The U.S. income tax expense consists of a deferred tax expense due to differences in financial reporting and tax treatment of goodwill net of amortization for financial reporting but not tax purposes of acquired identified intangible assets. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | Commitments and Contingencies Comvita Licensing Agreement In February 2010, the Company entered into a new agreement with Comvita (the “Comvita Agreement”) under which the Company received perpetual and exclusive worldwide licensing rights for Manuka Honey based MEDIHONEY wound and skin care products for all markets outside of the consumer market. The Comvita Agreement also provides that Comvita will serve as the Company’s supplier for Manuka Honey and will not provide Manuka Honey to any other entities for use in the professional medical-surgical marketplace. The Comvita Agreement calls for graduated royalty payments based on sales and milestone payments. The license rights may be terminated or rendered non-exclusive by Comvita if the Company fails to meet certain minimum royalty requirements. Comvita is a stockholder of the Company. The Company purchased $ 1,334,892 1,436,100 685,695 635,898 615,365 506,795 BioDLogics, LLC License Agreement On January 14, 2014, the Company entered into a license, market development and commercialization agreement (the “Agreement”) with BioDLogics, LLC (“BioD”) relating to BioD’s human placental based products (the “Licensed Products”) and intellectual property related thereto. Under the Agreement, BioD granted to the Company an exclusive, perpetual, royalty-bearing license to use, offer for sale and sell, the Licensed Products in North America (the “Territory”), including the rights to sublicense solely as provided in the Agreement, for a broad range of dermal applications (the “Field”). During the term of the Agreement, the Company will be responsible for the sale and marketing of the Licensed Products in the Field throughout the Territory. As part of its commercialization efforts, the Company is required to fund clinical studies up to $ 2,000,000 Royalties are payable to BioD under the agreement based upon a sliding scale of the Company’s net sales of Licensed Products within the Territory and declining as net sales increase. Royalty rates range from the low double digits and decline to the mid-single digits. The Company incurred BioD royalties of $ 166,074 127,040 19,750,000 The Agreement may be terminated as follows: (i) upon mutual agreement of the parties; (ii) by BioD if the Company challenges certain BioD patents or trade secrets; (iii) by BioD if the Company fails to meet the annual minimum net sales requirement under the Agreement, unless the Company pays the difference between the amount of royalties that would have been due had the minimum annual net sales for such year been achieved and royalty payments made by the Company with respect to net sales during such year plus any milestone payments payable; or (iv) by either party in the event of a material breach or certain events of bankruptcy. The annual minimum net sales requirement commenced in 2015. The Company achieved the minimum net sales requirement for the April 1, 2015 through March 31, 2016 contract year. On July 27, 2016 the Company agreed to acquire BioD, LLC, the parent company of BioDLogics, LLC (Note 12). Canadian Distribution Agreement In May 2005, the Company entered into a distribution agreement with a Canadian company to serve as the exclusive distributor of its products in Canada. The agreement also appoints the distributor as the Company’s Canadian servicing agent to fulfill supply contracts held directly by the Company. The agreement was most recently amended in May 2016, extending it through August 31, 2016, while negotiations for a new agreement proceed. 2,284,000 Contingencies On occasion, the Company is involved in claims and other legal actions arising in the ordinary course of business. In the opinion of management, the ultimate disposition of these matters will not have a material adverse effect on the Company’s consolidated financial position, results of operations, or liquidity. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | Subsequent Events Sale of First Aid Division On July 26, 2016, the Company agreed to sell its First Aid Division (“FAD”) to Dukal Corporation (“Dukal”) for approximately $ 12,200,000 9,500,000 2,700,000 16,700,000 1,700,000 Acquisition of BioD, LLC On August 5, 2016, the Company acquired BioD, LLC for $ 21,300,309 13,845,258 7,455,051 30,000,000 26,500,000 18,600,000 16,300,000 2,900,000 162,160 In addition, certain former BioD, LLC equity holders purchased approximately $ 2,300,000 4.1692 |
Organization and Summary of S20
Organization and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the U.S. for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the U.S. for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the three and six months ended June 30, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016. Information included in the consolidated balance sheet as of December 31, 2015 has been derived from the consolidated financial statements and footnotes thereto for the year ended December 31, 2015, included in the Annual Report on Form 10-K previously filed with the Securities and Exchange Commission. For further information refer to the Annual Report on Form 10-K for the year ended December 31, 2015. |
Principles of Consolidation, Policy [Policy Text Block] | Principles of Consolidation |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition |
Net Loss Per Share, Policy [Policy Text Block] | Net Income (Loss) per Share Net income (loss) per common share basic is computed by dividing net income (loss) by the weighted average number of common shares outstanding for the period. Net income (loss) per common share diluted reflects the potential dilution of earnings by including the effects of the assumed exercise, conversion or issuance of potentially issuable shares of common stock (“potentially dilutive securities”), including those attributable to stock options, warrants, convertible preferred stock and restricted stock units, in the weighted average number of common shares outstanding for a period, if dilutive. The effects of convertible preferred stock are determined using the if converted method. The effects of the assumed exercise of warrants and stock options, and assumed lapse of restrictions on restricted stock awards, are determined using the treasury stock method. Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Weighted average common shares outstanding - basic 25,915,065 25,759,843 25,897,179 25,656,875 Dilutive shares attributable to: Convertible preferred stock 73,332 - 73,332 - Additional stock issuable related to conversion of preferred stock 49,782 - 49,782 - Restricted share units - - - - Warrants - - - - Stock options 20,714 - 15,754 - Sub-total dilutive shares 143,828 - 138,868 - Weighted average common shares outstanding - diluted 26,058,893 25,759,843 26,036,047 25,656,875 Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Excluded dilutive shares: Convertible preferred stock - 73,332 - 73,332 Additional stock issuable related to conversion of preferred stock - 49,782 - 49,782 Restricted share units 196,800 677,500 196,800 677,500 Warrants 50,000 1,755,330 50,000 1,755,330 Stock options 2,617,607 2,540,607 2,622,567 2,540,607 Total dilutive shares 2,864,407 5,096,551 2,869,367 5,096,551 |
Recently Issued Accounting Pronouncements, Policy [Policy Text Block] | Recently Issued Accounting Pronouncements Revenue from Contracts with Customers In January 2016, the FASB issued ASU No. 2016-01, Accounting for Equity Investments and Financial Liabilities In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting |
Organization and Summary of S21
Organization and Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Weighted Average Number of Shares [Table Text Block] | Total dilutive shares that have been used to compute diluted income (loss) per common share for the three and six months ended June 30, 2016 and 2015 are outlined below: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Weighted average common shares outstanding - basic 25,915,065 25,759,843 25,897,179 25,656,875 Dilutive shares attributable to: Convertible preferred stock 73,332 - 73,332 - Additional stock issuable related to conversion of preferred stock 49,782 - 49,782 - Restricted share units - - - - Warrants - - - - Stock options 20,714 - 15,754 - Sub-total dilutive shares 143,828 - 138,868 - Weighted average common shares outstanding - diluted 26,058,893 25,759,843 26,036,047 25,656,875 |
Potentially Dilutive Shares Excluded as Result of Effects Being Anti-dilutive [Table Text Block] | Potentially dilutive securities excluded as a result of the effects of being anti-dilutive are as follows: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Excluded dilutive shares: Convertible preferred stock - 73,332 - 73,332 Additional stock issuable related to conversion of preferred stock - 49,782 - 49,782 Restricted share units 196,800 677,500 196,800 677,500 Warrants 50,000 1,755,330 50,000 1,755,330 Stock options 2,617,607 2,540,607 2,622,567 2,540,607 Total dilutive shares 2,864,407 5,096,551 2,869,367 5,096,551 |
Restructuring and Other Charg22
Restructuring and Other Charges (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Restructuring Charges [Abstract] | |
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | A summary of the Company’s restructuring activity for the six months ended June 30, 2016 is as follows: CEO Other Total Balance, January 1, 2016 $ 1,252,105 $ 826,932 $ 2,079,037 Charges during period - - - Payments during period (369,596) (779,059) (1,148,655) Balance, June 30, 2016 $ 882,509 $ 47,873 $ 930,382 Less current portion (589,048) (47,873) (636,921) Long term portion $ 293,461 $ - $ 293,461 |
Cash and Cash Equivalents and23
Cash and Cash Equivalents and Investments (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Cash, Cash Equivalents, and Short-term Investments [Abstract] | |
Schedule Of Cash And Cash Equivalents And Investments [Table Text Block] | Cash and cash equivalents and investments at June 30, 2016 and December 31, 2015 consisted of the following: June 30, 2016 December 31, 2015 Cash $ 18,998,616 $ 10,784,522 Cash equivalents - 5,029,683 Cash and cash equivalents 18,998,616 15,814,205 Investments in debt securities 25,000,000 25,003,990 Investment in equity securities 15,776,448 16,110,178 Total investments 40,776,448 41,114,168 Total cash and cash equivalents and investments $ 59,775,064 $ 56,928,373 |
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Table Text Block] | The following table provides fair value information as of June 30, 2016: Fair Value Measurements, Using Total carrying Quoted prices Significant other Significant Cash and cash equivalents $ 18,998,616 $ 18,998,616 $ - $ - Investments in debt securities 25,000,000 25,000,000 - - Investment in equity securities 15,776,448 15,776,448 - - Total investments 40,776,448 40,776,448 - - Total $ 59,775,064 $ 59,775,064 $ - $ - The following table provides fair value information as of December 31, 2015: Fair Value Measurements, Using Total carrying Quoted prices Significant other Significant Cash and cash equivalents $ 15,814,205 $ 15,814,205 $ - $ - Investments in debt securities 25,003,990 25,003,990 - - Investment in equity securities 16,110,178 16,110,178 - - Total investments 41,114,168 41,114,168 - - Total $ 56,928,373 $ 56,928,373 $ - $ - |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | Inventories include the following: June 30, 2016 December 31, 2015 Finished goods $ 12,887,368 $ 15,347,592 Work in process 397,813 346,233 Packaging materials 1,250,579 1,152,993 Raw materials 3,751,013 3,843,888 Total inventories $ 18,286,773 $ 20,690,706 |
Accrued Expenses and Other Li25
Accrued Expenses and Other Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses and Current Liabilities [Table Text Block] | Accrued expenses and other liabilities include the following: June 30, 2016 December 31, 2015 Accrued compensation and related taxes $ 1,344,408 $ 2,390,855 Liabilities related to restructuring (Note 3) 930,382 2,079,037 Accrued sales incentives and other fees 627,633 613,186 Accrued royalties 461,591 444,563 Other 2,271,539 2,178,077 Total accrued expenses and other liabilities $ 5,635,553 $ 7,705,718 Less current portion (4,951,112) (6,691,340) Long term liabilities $ 684,441 $ 1,014,378 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions [Table Text Block] | For the three and six months ended June 30, 2016 and 2015, the fair value of each option award was estimated at the date of grant using the Black-Scholes option-pricing model. The weighted-average assumptions used were as follows: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Risk-free interest rate 1.10 % 1.12 % 1.43 % 1.61 % Volatility factor 40.0 % 36.8 % 43.9 % 45.7 % Dividend yield 0 % 0 % 0 % 0 % Expected option life (years) 3.47 3.59 5.54 5.69 |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | A summary of the Company’s stock option activity and related information for the six months ended June 30, 2016 is as follows: Options Weighted Outstanding January 1, 2016 2,301,760 $ 9.04 Granted 621,390 $ 3.35 Forfeited (52,452) $ 7.41 Exercised (3,675) $ 3.17 Expired (228,702) $ 9.33 Outstanding June 30, 2016 2,638,321 $ 7.71 Expected to vest June 30, 2016 2,611,938 $ 7.71 Exercisable at June 30, 2016 1,972,383 $ 8.44 |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | During the three and six months ended June 30, 2016 and 2015, stock option compensation expense was recorded as follows: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Cost of sales $ 26,230 $ 36,898 $ 69,949 $ 109,601 Selling, general and administrative expenses 280,589 540,568 699,281 1,324,646 Discontinued operations - (2,605) - 44,184 Total stock option compensation expense $ 306,819 $ 574,861 $ 769,230 $ 1,478,431 |
Schedule of Nonvested Restricted Stock Units Activity [Table Text Block] | The following table summarizes the restricted share unit activity for the period: Number of Weighted Average Unvested January 1, 2016 152,750 $ 8.59 Granted 136,800 $ 3.91 Vested (90,450) $ 7.50 Cancelled (2,300) $ 8.83 Unvested June 30, 2016 196,800 $ 5.83 |
Schedule Of Common Stock Shares Reserved For Issuance And Shares Available For Grant [Table Text Block] | At June 30, 2016, the Company had reserved the following shares of common stock for future issuance: Convertible preferred stock (series A B) 73,332 Additional stock issuable related to conversion of preferred stock (series A B) 49,782 Common stock options outstanding 2,638,321 Common stock warrants outstanding 50,000 Restricted share units outstanding 196,800 Common stock equivalents available for grant 1,945,512 Total common stock shares reserved 4,953,747 |
Accumulated Other Comprehensi27
Accumulated Other Comprehensive Income (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Foreign Unrealized Gain on Total Balance at January 1, 2016 $ 555,938 $ 4,716,970 $ 5,272,908 Other comprehensive income before reclassification 545,784 4,551,878 5,097,662 Amounts reclassified from accumulated other comprehensive income - (2,975,813) (2,975,813) Balance at June 30, 2016 $ 1,101,722 $ 6,293,035 $ 7,394,757 |
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | Amount reclassified from Affected line item in Unrealized gain on equity securities, net of taxes Realized gain on equity securities $ (4,758,636) Other income, net Income tax provision 1,782,823 Income tax provision Total reclassification $ (2,975,813) |
Operating Segments (Tables)
Operating Segments (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block] | Three Months Ended June 30, 2016 Advanced Traditional Other Total Net sales $ 10,974,270 $ 11,233,791 $ - $ 22,208,061 Gross profit 5,852,464 2,407,382 - 8,259,846 Direct expense (6,227,238) (1,101,690) - (7,328,928) Segment contribution $ (374,774) $ 1,305,692 - 930,918 Indirect income, net $ 1,051,618 1,051,618 Net income from continuing operations $ 1,982,536 Three Months Ended June 30, 2015 Net sales $ 10,292,016 $ 12,264,348 $ - $ 22,556,364 Gross profit 4,862,036 3,509,212 - 8,371,248 Direct expense (8,694,042) (1,433,222) - (10,127,264) Segment contribution $ (3,832,006) $ 2,075,990 - (1,756,016) Indirect expenses, net $ (3,269,749) (3,269,749) Net loss from continuing operations $ (5,025,765) Six Months Ended June 30, 2016 Advanced Traditional Other Total Net sales $ 21,574,441 $ 20,876,177 $ - $ 42,450,618 Gross profit 11,237,610 4,729,759 - 15,967,369 Direct expense (12,212,481) (2,118,554) - (14,331,035) Segment contribution $ (974,871) $ 2,611,205 - 1,636,334 Indirect expenses, net $ (1,411,551) (1,411,551) Net income from continuing operations $ 224,783 Six Months Ended June 30, 2015 Net sales $ 20,063,040 $ 21,991,976 $ - $ 42,055,016 Gross profit 9,763,160 6,143,214 - 15,906,374 Direct expense (17,129,122) (2,746,673) - (19,875,795) Segment contribution $ (7,365,962) $ 3,396,541 - (3,969,421) Indirect expenses, net $ (7,507,644) (7,507,644) Net loss from continuing operations $ (11,477,065) |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] | The following table presents net sales by location of entity: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 United States 83 % 83 % United States 83 % 83 % Canada 11 % 12 % Canada 11 % 11 % Rest of World 6 % 5 % Rest of World 6 % 6 % |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Tax Expense [Table Text Block] | The following table summarizes the income provision and effective tax rate for continuing operations for the three and six months ended June 30, 2016 and 2015: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Current tax expense $ 274,020 $ 77,908 $ 228,874 $ 82,653 Deferred tax expense 253,505 266,949 78,853 270,255 Income tax expense $ 527,525 $ 344,857 $ 307,727 $ 352,908 Effective tax rate 21.0 % (3.9) % 57.8 % (1.8) % |
Organization and Summary of S30
Organization and Summary of Significant Accounting Policies (Details) - shares | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |||
Weighted Average Number Of Shares [Line Items] | ||||||
Weighted average common shares outstanding - basic | 25,915,065 | 25,759,843 | [1] | 25,897,179 | 25,656,875 | [1] |
Dilutive shares attributable to: | ||||||
Convertible preferred stock | 73,332 | 0 | 73,332 | 0 | ||
Additional stock issuable related to conversion of preferred stock | 49,782 | 0 | 49,782 | 0 | ||
Restricted share units | 0 | 0 | 0 | 0 | ||
Warrants | 0 | 0 | 0 | 0 | ||
Stock options | 20,714 | 0 | 15,754 | 0 | ||
Sub-total dilutive shares | 143,828 | 0 | 138,868 | 0 | ||
Weighted average common shares outstanding - diluted | 26,058,893 | 25,759,843 | [1] | 26,036,047 | 25,656,875 | [1] |
[1] | Reclassified for discontinued operations. See Note 2. |
Organization and Summary of S31
Organization and Summary of Significant Accounting Policies (Details 1) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 2,864,407 | 5,096,551 | 2,869,367 | 5,096,551 |
Convertible preferred stock [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 73,332 | 0 | 73,332 |
Additional stock issuable related to conversion of preferred stock [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 49,782 | 0 | 49,782 |
Restricted share units [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 196,800 | 677,500 | 196,800 | 677,500 |
Warrants [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 50,000 | 1,755,330 | 50,000 | 1,755,330 |
Stock options [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 2,617,607 | 2,540,607 | 2,622,567 | 2,540,607 |
Discontinued Operations (Detail
Discontinued Operations (Details Textual) | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Severance Costs | $ 1,477,511 |
Restructuring and Other Charg33
Restructuring and Other Charges (Details) | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Balance, January 1, 2016 | $ 2,079,037 |
Charges during period | 0 |
Payments during period | (1,148,655) |
Balance, June 30, 2016 | 930,382 |
Less current portion | (636,921) |
Long term portion | 293,461 |
Chief Executive Officer [Member] | |
Balance, January 1, 2016 | 1,252,105 |
Charges during period | 0 |
Payments during period | (369,596) |
Balance, June 30, 2016 | 882,509 |
Less current portion | (589,048) |
Long term portion | 293,461 |
Other Employees [Member] | |
Balance, January 1, 2016 | 826,932 |
Charges during period | 0 |
Payments during period | (779,059) |
Balance, June 30, 2016 | 47,873 |
Less current portion | (47,873) |
Long term portion | $ 0 |
Restructuring and Other Charg34
Restructuring and Other Charges (Details Textual) | 3 Months Ended | 6 Months Ended |
Dec. 31, 2015USD ($) | Jun. 30, 2016USD ($) | |
Restructuring and Related Cost, Number of Positions Eliminated | 39 | |
Severance Costs | $ 1,477,511 | |
Chief Executive Officer [Member] | ||
Severance Costs | 1,506,021 | |
Allocated Share-based Compensation Expense | $ 114,573 | |
Other Non-employees [Member] | ||
Severance Costs | $ 952,534 |
Cash and Cash Equivalents and35
Cash and Cash Equivalents and Investments (Details) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2014 |
Cash | $ 18,998,616 | $ 10,784,522 | ||
Cash equivalents | 0 | 5,029,683 | ||
Cash and cash equivalents | 18,998,616 | 15,814,205 | $ 13,005,695 | $ 19,396,845 |
Investments in debt securities | 25,000,000 | 25,003,990 | ||
Investment in equity securities | 15,776,448 | 16,110,178 | ||
Total investments | 40,776,448 | 41,114,168 | ||
Total cash and cash equivalents and investments | $ 59,775,064 | $ 56,928,373 |
Cash and Cash Equivalents and36
Cash and Cash Equivalents and Investments (Details 1) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Cash and cash equivalents | $ 18,998,616 | $ 15,814,205 |
Investments | 40,776,448 | 41,114,168 |
Total | 59,775,064 | 56,928,373 |
Debt Securities [Member] | ||
Investments | 25,000,000 | 25,003,990 |
Equity Securities [Member] | ||
Investments | 15,776,448 | 16,110,178 |
Quoted prices in active markets (Level 1) [Member] | ||
Cash and cash equivalents | 18,998,616 | 15,814,205 |
Investments | 40,776,448 | 41,114,168 |
Total | 59,775,064 | 56,928,373 |
Quoted prices in active markets (Level 1) [Member] | Debt Securities [Member] | ||
Investments | 25,000,000 | 25,003,990 |
Quoted prices in active markets (Level 1) [Member] | Equity Securities [Member] | ||
Investments | 15,776,448 | 16,110,178 |
Significant other observable inputs (Level 2) [Member] | ||
Cash and cash equivalents | 0 | 0 |
Investments | 0 | 0 |
Total | 0 | 0 |
Significant other observable inputs (Level 2) [Member] | Debt Securities [Member] | ||
Investments | 0 | 0 |
Significant other observable inputs (Level 2) [Member] | Equity Securities [Member] | ||
Investments | 0 | 0 |
Significant unobservable inputs (Level 3) [Member] | ||
Cash and cash equivalents | 0 | 0 |
Investments | 0 | 0 |
Total | 0 | 0 |
Significant unobservable inputs (Level 3) [Member] | Debt Securities [Member] | ||
Investments | 0 | 0 |
Significant unobservable inputs (Level 3) [Member] | Equity Securities [Member] | ||
Investments | $ 0 | $ 0 |
Cash and Cash Equivalents and37
Cash and Cash Equivalents and Investments (Details Textual) - USD ($) | 1 Months Ended | ||||
Jun. 30, 2016 | May 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Equity securities | 1,877,277 | 2,802,277 | 2,802,277 | ||
Ownership percentage | 5.00% | ||||
Available-for-sale Equity Securities, Amortized Cost Basis | $ 8,483,693 | $ 8,483,693 | |||
Available-for-sale Securities, Equity Securities | $ 15,776,448 | $ 16,110,178 | |||
Common Stock, Shares, Outstanding | 25,963,801 | 25,876,870 | |||
Gain (Loss) on Sale of Equity Investments | $ 4,740,136 | ||||
Comvita stock [Member] | |||||
Equity Method Investments, Number of Shares Sold | 925,000 | ||||
Equity Method Investment, Amount Sold | $ 7,594,158 | ||||
Common Stock, Shares, Outstanding | 10,146,777 |
Inventories (Details)
Inventories (Details) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Finished goods | $ 12,887,368 | $ 15,347,592 |
Work in process | 397,813 | 346,233 |
Packaging materials | 1,250,579 | 1,152,993 |
Raw materials | 3,751,013 | 3,843,888 |
Total inventories | $ 18,286,773 | $ 20,690,706 |
Accrued Expenses and Other Li39
Accrued Expenses and Other Liabilities (Details) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Accrued compensation and related taxes | $ 1,344,408 | $ 2,390,855 |
Liabilities related to restructuring (Note 3) | 930,382 | 2,079,037 |
Accrued sales incentives and other fees | 627,633 | 613,186 |
Accrued royalties | 461,591 | 444,563 |
Other | 2,271,539 | 2,178,077 |
Total accrued expenses and other liabilities | 5,635,553 | 7,705,718 |
Less current portion | (4,951,112) | (6,691,340) |
Long term liabilities | $ 684,441 | $ 1,014,378 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Weighted Average Assumptions Used In Estimation Of Fair Value Of Option Awards [Line Items] | ||||
Risk-free interest rate | 1.10% | 1.12% | 1.43% | 1.61% |
Volatility factor | 40.00% | 36.80% | 43.90% | 45.70% |
Dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Expected option life (years) | 3 years 5 months 19 days | 3 years 7 months 2 days | 5 years 6 months 14 days | 5 years 8 months 8 days |
Stockholders' Equity (Details 1
Stockholders' Equity (Details 1) | 6 Months Ended |
Jun. 30, 2016$ / sharesshares | |
Options | |
Outstanding Begining | shares | 2,301,760 |
Granted | shares | 621,390 |
Forfeited | shares | (52,452) |
Exercised | shares | (3,675) |
Expired | shares | (228,702) |
Outstanding Ending | shares | 2,638,321 |
Expected to vest - June 30, 2016 | shares | 2,611,938 |
Exercisable at June 30, 2016 | shares | 1,972,383 |
Weighted Average Exercise Price | |
Outstanding Begining | $ / shares | $ 9.04 |
Granted | $ / shares | 3.35 |
Forfeited | $ / shares | 7.41 |
Exercised | $ / shares | 3.17 |
Expired | $ / shares | 9.33 |
Outstanding Ending | $ / shares | 7.71 |
Expected to vest - June 30, 2016 | $ / shares | 7.71 |
Exercisable at June 30, 2016 | $ / shares | $ 8.44 |
Stockholders' Equity (Details 2
Stockholders' Equity (Details 2) - Employee Stock Option [Member] - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Allocated Share-based Compensation Expense | $ 306,819 | $ 574,861 | $ 769,230 | $ 1,478,431 |
Discontinued operations [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Allocated Share-based Compensation Expense | 0 | (2,605) | 0 | 44,184 |
Cost of sales [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Allocated Share-based Compensation Expense | 26,230 | 36,898 | 69,949 | 109,601 |
Selling, general and administrative expenses [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Allocated Share-based Compensation Expense | $ 280,589 | $ 540,568 | $ 699,281 | $ 1,324,646 |
Stockholders' Equity (Details 3
Stockholders' Equity (Details 3) | 6 Months Ended |
Jun. 30, 2016$ / sharesshares | |
Number of Units | |
Unvested Beginning | shares | 152,750 |
Granted | shares | 136,800 |
Vested | shares | (90,450) |
Cancelled | shares | (2,300) |
Unvested Ending | shares | 196,800 |
Weighted Average Fair Value | |
Unvested Beginning | $ / shares | $ 8.59 |
Granted | $ / shares | 3.91 |
Vested | $ / shares | 7.50 |
Cancelled | $ / shares | 8.83 |
Unvested Ending | $ / shares | $ 5.83 |
Stockholders' Equity (Details 4
Stockholders' Equity (Details 4) | Jun. 30, 2016shares |
Class of Stock [Line Items] | |
Common Stock, Capital Shares Reserved for Future Issuance | 4,953,747 |
Restricted share units outstanding [Member] | |
Class of Stock [Line Items] | |
Common Stock, Capital Shares Reserved for Future Issuance | 196,800 |
Common stock warrants outstanding [Member] | |
Class of Stock [Line Items] | |
Common Stock, Capital Shares Reserved for Future Issuance | 50,000 |
Common stock options outstanding [Member] | |
Class of Stock [Line Items] | |
Common Stock, Capital Shares Reserved for Future Issuance | 2,638,321 |
Convertible preferred stock [Member] | |
Class of Stock [Line Items] | |
Common Stock, Capital Shares Reserved for Future Issuance | 73,332 |
Additional stock issuable related to conversion of preferred stock [Member] | |
Class of Stock [Line Items] | |
Common Stock, Capital Shares Reserved for Future Issuance | 49,782 |
Common stock equivalents available for grant [Member] | |
Class of Stock [Line Items] | |
Common Stock, Capital Shares Reserved for Future Issuance | 1,945,512 |
Stockholders' Equity (Details T
Stockholders' Equity (Details Textual) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||
May 31, 2016 | May 31, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Stockholders Equity [Line Items] | |||||||
Convertible Preferred Stock Additional Shares | 49,782 | 49,782 | |||||
Preferred Stock, Shares Outstanding | 73,332 | 73,332 | 73,332 | ||||
Convertible Preferred Stock, Shares Issued upon Conversion | 123,114 | 123,114 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 90,450 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | ||||||
Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Forfeiture Rate | 1.00% | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 621,390 | ||||||
Shares Paid for Tax Withholding for Share Based Compensation | 5,576 | ||||||
Shares withheld for minimum payroll taxes | $ 18,010 | ||||||
Common Stock, Capital Shares Reserved for Future Issuance | 4,953,747 | 4,953,747 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.00% | 0.00% | 0.00% | 0.00% | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 3,675 | ||||||
Common Stock, Shares Authorized | 50,000,000 | 50,000,000 | 50,000,000 | ||||
Class of Warrant or Right, Outstanding | 50,000 | 50,000 | |||||
Class of Warrant or Right Expiration Date | Jan. 14, 2019 | ||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 11.81 | $ 11.81 | |||||
Common Stock [Member] | |||||||
Stockholders Equity [Line Items] | |||||||
Stock Issued During Period, Shares, Period Increase (Decrease) | 86,931 | ||||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 84,874 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 90,450 | ||||||
Selling, General and Administrative Expenses [Member] | |||||||
Stockholders Equity [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award Accelerated Compensation Cost | $ 48,733 | $ 70,670 | |||||
Service based options [Member] | |||||||
Stockholders Equity [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 501,490 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 1.40 | ||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | 1,240,494 | $ 1,240,494 | |||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 1 month 10 days | ||||||
Employee Stock Option [Member] | |||||||
Stockholders Equity [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 30,000 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 1,560 | ||||||
Allocated Share-based Compensation Expense | $ 306,819 | 574,861 | $ 769,230 | $ 1,478,431 | |||
Common Stock, Capital Shares Reserved for Future Issuance | 1,945,512 | 1,945,512 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 2,057 | ||||||
Common Stock, Shares Authorized | 6,000,000 | 6,000,000 | |||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Outstanding Options, Beginning Balance | 2,638,321 | 2,638,321 | |||||
Stock Issued During Period, Value, Stock Options Exercised | $ 5,700 | ||||||
Employee Stock Option [Member] | Director [Member] | |||||||
Stockholders Equity [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 15,000 | ||||||
Employee Stock Option [Member] | Selling, General and Administrative Expenses [Member] | |||||||
Stockholders Equity [Line Items] | |||||||
Allocated Share-based Compensation Expense | $ 280,589 | 540,568 | $ 699,281 | 1,324,646 | |||
Performance Shares [Member] | |||||||
Stockholders Equity [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 119,900 | ||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | 100,543 | $ 100,543 | |||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 6 months | ||||||
Restricted Stock Units (RSUs) [Member] | |||||||
Stockholders Equity [Line Items] | |||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | $ 797,333 | $ 797,333 | |||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 9 months 11 days | ||||||
Common Stock, Capital Shares Reserved for Future Issuance | 196,800 | 196,800 | |||||
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures, Total | 196,800 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Nonvested | $ 775,392 | $ 775,392 | |||||
Restricted Stock Units (RSUs) [Member] | Selling, General and Administrative Expenses [Member] | |||||||
Stockholders Equity [Line Items] | |||||||
Allocated Share-based Compensation Expense | $ 271,949 | $ 666,966 | $ 555,418 | $ 1,319,707 | |||
Series R [Member] | |||||||
Stockholders Equity [Line Items] | |||||||
Class of warrant or right, Warrants forfeited | 1,705,330 |
Accumulated Other Comprehensi46
Accumulated Other Comprehensive Income (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Balance at January 1, 2016 | $ 5,272,908 | |||
Other comprehensive income before reclassification | 5,097,662 | |||
Amounts reclassified from accumulated other comprehensive income | $ 2,975,813 | $ 0 | 2,975,813 | $ 0 |
Balance at June 30, 2016 | 7,394,757 | 7,394,757 | ||
Foreign Currency Translation Adjustments [Member] | ||||
Balance at January 1, 2016 | 555,938 | |||
Other comprehensive income before reclassification | 545,784 | |||
Amounts reclassified from accumulated other comprehensive income | 0 | |||
Balance at June 30, 2016 | 1,101,722 | 1,101,722 | ||
Unrealized Gain on Equity Securities [Member] | ||||
Balance at January 1, 2016 | 4,716,970 | |||
Other comprehensive income before reclassification | 4,551,878 | |||
Amounts reclassified from accumulated other comprehensive income | (2,975,813) | |||
Balance at June 30, 2016 | $ 6,293,035 | $ 6,293,035 |
Accumulated Other Comprehensi47
Accumulated Other Comprehensive Income (Details 1) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Reclassification from AOCI, Current Period, Net of Tax [Abstract] | ||||
Income tax provision | $ 1,782,823 | $ 0 | $ 1,782,823 | $ 0 |
Total reclassification | $ 2,975,813 | $ 0 | 2,975,813 | $ 0 |
Other Income [Member] | ||||
Reclassification from AOCI, Current Period, Net of Tax [Abstract] | ||||
Realized gain on equity securities | (4,758,636) | |||
Income Tax Provision [Member] | ||||
Reclassification from AOCI, Current Period, Net of Tax [Abstract] | ||||
Income tax provision | $ 1,782,823 |
Operating Segments (Details)
Operating Segments (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |||
Segment Reporting Information [Line Items] | ||||||
Net sales | $ 22,208,061 | $ 22,556,364 | [1] | $ 42,450,618 | $ 42,055,016 | [1] |
Gross profit | 8,259,846 | 8,371,248 | [1] | 15,967,369 | 15,906,374 | [1] |
Direct expense | (7,328,928) | (10,127,264) | (14,331,035) | (19,875,795) | ||
Segment contribution | 930,918 | (1,756,016) | 1,636,334 | (3,969,421) | ||
Indirect income (expenses), net | 1,051,618 | (3,269,749) | (1,411,551) | (7,507,644) | ||
Net income (loss) from continuing operations | 1,982,536 | (5,025,765) | [1] | 224,783 | (11,477,065) | [1] |
Advanced Wound Care [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 10,974,270 | 10,292,016 | 21,574,441 | 20,063,040 | ||
Gross profit | 5,852,464 | 4,862,036 | 11,237,610 | 9,763,160 | ||
Direct expense | (6,227,238) | (8,694,042) | (12,212,481) | (17,129,122) | ||
Segment contribution | (374,774) | (3,832,006) | (974,871) | (7,365,962) | ||
Traditional Wound Care [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 11,233,791 | 12,264,348 | 20,876,177 | 21,991,976 | ||
Gross profit | 2,407,382 | 3,509,212 | 4,729,759 | 6,143,214 | ||
Direct expense | (1,101,690) | (1,433,222) | (2,118,554) | (2,746,673) | ||
Segment contribution | 1,305,692 | 2,075,990 | 2,611,205 | 3,396,541 | ||
Other [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 0 | 0 | 0 | 0 | ||
Gross profit | 0 | 0 | 0 | 0 | ||
Direct expense | 0 | 0 | 0 | 0 | ||
Segment contribution | 0 | 0 | 0 | 0 | ||
Indirect income (expenses), net | $ 1,051,618 | $ (3,269,749) | $ (1,411,551) | $ (7,507,644) | ||
[1] | Reclassified for discontinued operations. See Note 2. |
Operating Segments (Details 1)
Operating Segments (Details 1) - Sales Revenue, Net [Member] | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
United States [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Concentration Risk, Percentage | 83.00% | 83.00% | 83.00% | 83.00% |
Canada [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Concentration Risk, Percentage | 11.00% | 12.00% | 11.00% | 11.00% |
Rest of World [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Concentration Risk, Percentage | 6.00% | 5.00% | 6.00% | 6.00% |
Operating Segments (Details Tex
Operating Segments (Details Textual) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Sales Revenue, Net [Member] | CANADA | ||||
Concentration Risk [Line Items] | ||||
Concentration Risk, Percentage | 11.00% | 12.00% | 11.00% | 11.00% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |||
Income Tax Expense Benefit [Line Items] | ||||||
Current tax expense | $ 274,020 | $ 77,908 | $ 228,874 | $ 82,653 | ||
Deferred tax expense | 253,505 | 266,949 | 78,853 | 270,255 | ||
Income tax expense | $ 527,525 | $ 344,857 | [1] | $ 307,727 | $ 352,908 | [1] |
Effective tax rate | 21.00% | (3.90%) | 57.80% | (1.80%) | ||
[1] | Reclassified for discontinued operations. See Note 2. |
Commitments and Contingencies (
Commitments and Contingencies (Details Textual) - USD ($) | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | Jan. 14, 2014 | |
Commitments and Contingencies [Line Items] | ||||
Inventory, Finished Goods, Net of Reserves | $ 12,887,368 | $ 15,347,592 | ||
Supply Commitment [Member] | ||||
Commitments and Contingencies [Line Items] | ||||
Inventory, Finished Goods, Net of Reserves | 2,284,000 | |||
Comvita Agreement [Member] | ||||
Commitments and Contingencies [Line Items] | ||||
Related Party Transaction, Purchases from Related Party | 1,334,892 | $ 1,436,100 | ||
Royalty Expense | 685,695 | 635,898 | ||
Due to Related Parties | 615,365 | $ 506,795 | ||
BioD Agreement [Member] | ||||
Commitments and Contingencies [Line Items] | ||||
Royalty Expense | 166,074 | $ 127,040 | ||
Licensing Agreements Milestone Payments Maximum | $ 19,750,000 | |||
Other Commitment, Total | $ 2,000,000 |
Subsequent Events (Details Text
Subsequent Events (Details Textual) - USD ($) | Aug. 05, 2016 | Jul. 26, 2016 | Dec. 31, 2015 | Jun. 30, 2016 |
Disposal Group, Including Discontinued Operation, Revenue | $ 16,700,000 | |||
BioD,LLC [Member] | ||||
Business Acquisition, Transaction Costs | $ 162,160 | |||
Business Acquisition, Gross Profit Loss Reported by Acquired Entity for Last Annual Period | 16,300,000 | |||
Business Acquisition, Pre Tax Income Loss Reported by Acquired Entity for Last Annual Period | 2,900,000 | |||
Business Acquisition, Revenue Reported by Acquired Entity for Last Annual Period | 18,600,000 | |||
Traditional Wound Care Segment [Member] | ||||
Disposal Group, Including Discontinued Operation, Gross Profit (Loss) | $ 1,700,000 | |||
Subsequent Event [Member] | ||||
Divestiture of Business, Total Consideration | $ 12,200,000 | |||
Proceeds from Divestiture of Businesses | 9,500,000 | |||
Divestiture of Business, Consideration Received Other Than Cash | $ 2,700,000 | |||
Subsequent Event [Member] | BioD,LLC [Member] | ||||
Business Combination, Consideration Transferred | $ 21,300,309 | |||
Payments to Acquire Businesses, Gross | 13,845,258 | |||
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable | 7,455,051 | |||
Business Combination, Regulatory Milestone Payments | 30,000,000 | |||
Business Combination, Contingent Consideration, Liability | $ 26,500,000 | |||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 2,300,000 | |||
Business Acquisition, Share Price | $ 4.1692 |