Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Mar. 28, 2014 | Jun. 30, 2013 | |
Document and Entity Information | ' | ' | ' |
Entity Registrant Name | 'CASTLE GROUP INC | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Amendment Flag | 'false | ' | ' |
Entity Central Index Key | '0000918543 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 10,026,392 | ' |
Entity Filer Category | 'Smaller Reporting Company | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Entity Public Float | ' | ' | $1,741,597 |
THE_CASTLE_GROUP_INC_CONSOLIDA
THE CASTLE GROUP INC CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Current Assets | ' | ' |
Cash and cash equivalents | $1,137,215 | $781,662 |
Accounts receivable, net of allowance for bad debts | 2,453,363 | 2,047,772 |
Deferred tax asset, current | 431,000 | 431,000 |
Note receivable, current portion | 15,000 | 40,000 |
Prepaids and other current assets | 332,286 | 298,429 |
Total Current Assets | 4,368,864 | 3,598,863 |
Property plant & equipment, net | 7,160,790 | 7,380,379 |
Deposits and other assets | 217,479 | 242,259 |
Note receivable | 195,366 | 185,000 |
Investment in limited liability company | 463,969 | 459,705 |
Goodwill | 54,726 | 54,726 |
Deferred tax asset | 938,154 | 1,069,695 |
TOTAL ASSETS | 13,399,348 | 12,990,627 |
Current Liabilities | ' | ' |
Accounts payable | 2,795,276 | 2,665,431 |
Payable to related parties | 88,983 | 112,681 |
Deposits payable | 605,046 | 638,156 |
Current portion of long term debt | 541,776 | 280,054 |
Current portion of long term debt to related parties | 0 | 6,250 |
Accrued salaries and wages | 1,513,660 | 1,213,839 |
Accrued taxes | 57,018 | 67,770 |
Other current liabilities | 28,817 | 18,514 |
Total Current Liabilities | 5,630,576 | 5,002,695 |
Non Current Liabilities | ' | ' |
Long term debt, net of current portion | 3,890,130 | 4,496,447 |
Notes payable to related parties, net of current portion | 117,316 | 132,421 |
Other long term obligations, net | 3,429,210 | 3,443,494 |
Total Non Current Liabilities | 7,436,656 | 8,072,362 |
Total Liabilities | 13,067,232 | 13,075,057 |
Stockholders' Equity (Deficit) | ' | ' |
Preferred stock, $100 par value, 50,000 shares authorized, 11,050 shares issued and outstanding in 2013 and 2012, respectively | 1,105,000 | 1,105,000 |
Common stock, $.02 par value, 20,000,000 shares authorized, 10,026,392 shares issued and outstanding in 2013 and 2012, respectively | 200,529 | 200,529 |
Additional paid in capital | 4,624,014 | 4,423,984 |
Retained deficit | -5,628,512 | -5,830,379 |
Accumulated other comprehensive income (loss) | 31,085 | 16,436 |
Total Stockholders' Equity (Deficit) | 332,116 | -84,430 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | $13,399,348 | $12,990,627 |
THE_CASTLE_GROUP_INC_Balance_S
THE CASTLE GROUP INC Balance Sheet (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Financial Position | ' | ' |
Preferred stock authorized | 50,000 | 50,000 |
Preferred stock par value | $100 | $100 |
Preferred stock issued | 11,050 | 11,050 |
Preferred stock outstanding | 11,050 | 11,050 |
Common stock authorized | 20,000,000 | 20,000,000 |
Common stock par value | $0.02 | $0.02 |
Common stock issued | 10,026,392 | 10,026,392 |
Common stock outstanding | 10,026,392 | 10,026,392 |
THE_CASTLE_GROUP_INC_CONSOLIDA1
THE CASTLE GROUP INC. CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME YEARS ENDED DECEMBER 31, 2013 & 2012 (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Revenues | ' | ' |
Revenue attributed from properties | $12,124,316 | $11,895,796 |
Management & Service | 11,724,143 | 10,865,044 |
Other Revenue | 29,267 | 13,647 |
Total Revenues | 23,877,726 | 22,774,487 |
Operating Expenses | ' | ' |
Attributed property expenses | 11,019,541 | 10,531,679 |
Payroll and office expenses | 11,487,772 | 10,667,646 |
Administrative and general | 475,404 | 445,935 |
Depreciation | 221,970 | 222,528 |
Total Operating Expense | 23,204,687 | 21,867,788 |
Operating Income | 673,039 | 906,699 |
Foreign Currency Transaction Gain (Loss) | 14,284 | -191,585 |
Investment income (Loss) | 37,164 | 175,145 |
Gain on sale of investment and contract | 0 | 395,000 |
Interest Expense | -379,176 | -374,996 |
Income (Loss) before taxes | 345,311 | 910,263 |
Income tax provision | -143,444 | -413,227 |
Net Income (Loss) | 201,867 | 497,036 |
Other Comprehensive Income | ' | ' |
Foreign currency translation adjustment | 14,649 | 103,545 |
Total Comprehensive Income | $216,516 | $600,581 |
Earnings Per Share Basic | $0.02 | $0.05 |
Earnings Per Share Diluted | $0.02 | $0.05 |
Weighted Average Shares Basic | 10,026,392 | 10,026,392 |
Weighted Average Shares Diluted | 10,394,725 | 10,394,725 |
THE_CASTLE_GROUP_INC_CONSOLIDA2
THE CASTLE GROUP INC. CONSOLIDATED STATEMENTS OF CASH FLOWS YEARS ENDING DECEMBER 31, 2013 & 2012 (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Cash Flows from Operating Activities | ' | ' |
Net Income (Loss) | $201,867 | $497,036 |
Depreciation expense | 221,970 | 222,457 |
Non cash interest expense | 200,030 | ' |
Foreign exchange (gain) loss on guarantor obligation | -14,284 | 191,585 |
Income from investment | -4,262 | -175,143 |
Investment and contract sale gain | 0 | -395,000 |
Deferred taxes | 131,541 | 413,227 |
(Increase) decrease in Accounts receivable | -529,314 | 674,672 |
(Increase) decrease in Other current assets | -34,461 | -40,119 |
(Increase) decrease in Notes Receivable | 14,634 | 0 |
(Increase) decrease in Deposits and other assets | 23,979 | -210,996 |
Increase (decrease) in Accounts payable and accrued expenses | 559,770 | -942,932 |
Increase (decrease) in Customer advance deposits | -33,020 | 63,805 |
Net Change From Operating Activities | 738,450 | 298,592 |
Cash Flows from Investing Activities | ' | ' |
Purchase of assets | -32,108 | -11,751 |
Sale of ownership in hotel | 0 | 350,000 |
Net Change from Investing Activities | -32,108 | 338,249 |
Cash Flows from Financing Activities | ' | ' |
Proceeds from notes | 150,000 | 150,000 |
Payments on notes to related parties | -3,011 | -6,250 |
Payments on notes | -495,150 | -711,014 |
Net Change from Financing Activities | -348,161 | -567,264 |
Effect of foreign currency exchange rate on changes in cash and cash equivalents | -2,628 | 1,598 |
Net Change in Cash and Cash Equivalents | 355,553 | 71,175 |
Beginning Balance | 781,662 | 710,487 |
Ending Balance | 1,137,215 | 781,662 |
Supplementary Information | ' | ' |
Cash Paid for Interest | -197,656 | -375,088 |
Cash Paid for Income Taxes | ($11,903) | $0 |
THE_CASTLE_GROUP_INC_CONSOLIDA3
THE CASTLE GROUP, INC. CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY (DEFICIT) YEARS ENDING DECEMBER 31, 2013 & 2012 (USD $) | Preferred Stock | Common Stock | Additional Paid-in Capital | Retained Deficit | Accumulated Other Comprehensive Income (Loss) | Total |
Balance preferred shares, beginning balance at Dec. 31, 2010 | 11,050 | 0 | 0 | 0 | 0 | 11,050 |
Net Income (Loss) | $0 | $0 | $0 | $260,515 | $0 | $260,515 |
Foreign currency translation adjustment | 0 | 0 | 0 | 0 | 66,210 | 66,210 |
Stockholders' Equity, ending balance at Dec. 31, 2011 | 1,105,000 | 200,529 | 4,423,984 | -6,327,415 | -87,109 | -685,011 |
Balance preferred shares, ending balance at Dec. 31, 2011 | 11,050 | 0 | 0 | 0 | 0 | 11,050 |
Balance common shares, ending balance at Dec. 31, 2011 | 0 | 10,026,392 | 0 | 0 | 0 | 10,026,392 |
Net Income (Loss) | 0 | 0 | 0 | 497,036 | 0 | 497,036 |
Foreign currency translation adjustment | 0 | 0 | 0 | 0 | 103,545 | 103,545 |
Stockholders' Equity, ending balance at Dec. 31, 2012 | 1,105,000 | 200,529 | 4,423,984 | -5,830,379 | 16,436 | -84,430 |
Balance preferred shares, ending balance at Dec. 31, 2012 | 11,050 | 0 | 0 | 0 | 0 | 11,050 |
Balance common shares, ending balance at Dec. 31, 2012 | 0 | 10,026,392 | 0 | 0 | 0 | 10,026,392 |
Net Income (Loss) | 0 | 0 | 0 | 201,867 | 0 | 201,867 |
Foreign currency translation adjustment | 0 | 0 | 0 | 0 | 14,649 | 14,649 |
Non cash interest expense | 200,030 | 200,030 | ' | ' | ' | 200,030 |
Stockholders' Equity, ending balance at Dec. 31, 2013 | $1,105,000 | $200,529 | $4,624,014 | ($5,628,512) | $31,085 | $332,116 |
Balance preferred shares, ending balance at Dec. 31, 2013 | 11,050 | 0 | 0 | 0 | 0 | 11,050 |
Balance common shares, ending balance at Dec. 31, 2013 | 0 | 10,026,392 | 0 | 0 | 0 | 10,026,392 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||
Dec. 31, 2013 | |||
Notes | ' | ||
Summary of Significant Accounting Policies | ' | ||
1. Summary of Significant Accounting Policies | |||
Organization | |||
The Castle Group, Inc. was incorporated under the laws of the State of Utah on August 21, 1981. The Castle Group, Inc. operates in the hotel and resort management industry in the State of Hawaii, New Zealand, and the Commonwealth of Saipan under the trade name “Castle Resorts and Hotels.” The accounting and reporting policies of The Castle Group, Inc. (the “Company”) conform with generally accepted accounting principles and practices within the hotel and resort management industry. | |||
Principles of Consolidation | |||
The consolidated financial statements of the Company include the accounts of The Castle Group, Inc. and its wholly-owned subsidiaries, Hawaii Reservations Center Corp., HPR Advertising, Inc., Castle Resorts & Hotels, Inc., Castle Resorts & Hotels Thailand Ltd., NZ Castle Resorts and Hotels Limited (a New Zealand Corporation), NZ Castle Resorts and Hotels’ wholly-owned subsidiary, Mocles Holdings Limited (a New Zealand Corporation), Castle Resorts & Hotels NZ Ltd., Castle Group LLC (Guam), Castle Resorts & Hotels Guam Inc. and KRI Inc. dba Hawaiian Pacific Resorts (Interactive). All significant inter-company transactions have been eliminated in the consolidated financial statements. | |||
Use of Management Estimates in Financial Statements | |||
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |||
Cash and Cash Equivalents | |||
The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. | |||
Accounts Receivable | |||
The Company records an account receivable for revenue earned but not yet collected. The Company estimates allowances for doubtful accounts based on the aged receivable balances and historical losses. If the Company determines any account to be uncollectible based on significant delinquency or other factors, it is immediately written off. An allowance for bad debts has been provided based on estimated losses amounting to $166,384 and $146,958 as of December 31, 2013 and 2012, respectively. | |||
Property, Plant, and Equipment | |||
Property, plant, and equipment are recorded at cost. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounting records, and any resulting gain or loss is reflected in the Consolidated Statement of Operations for the period. The cost of maintenance and repairs is expensed as incurred. Renewals and betterments are capitalized and depreciated over their estimated useful lives. | |||
At December 31, 2013 and 2012, property, plant, and equipment consisted of the following: | |||
2013 | 2012 | ||
Real estate - Podium | $8,461,550 | $8,496,798 | |
Equipment and furnishings | 1,647,236 | 1,658,014 | |
Less accumulated depreciation | -2,947,996 | -2,774,433 | |
Net property, furniture and equipment | $7,160,790 | $7,380,379 | |
Depreciation is computed using the declining balance and straight-line methods over the estimated useful life of the assets (Equipment and furnishings 5 to 7 years, Podium 50 years). For the years ended December 31, 2013 and 2012, depreciation expense was $221,970 and $222,528, respectively. | |||
Goodwill and Intangibles | |||
We perform impairment tests of goodwill at our reporting unit level, which is one level below our operating segments. Our operating segments are primarily based on geographic responsibility, which is consistent with the way management runs our business. | |||
The goodwill impairment test consists of a two-step process, if necessary. The first step is to compare the fair value of a reporting unit to its carrying value, including goodwill. We typically use discounted cash flow models to determine the fair value of a reporting unit. The assumptions used in these models are consistent with those we believe hypothetical marketplace participants would use. If the fair value of the reporting unit is less than its carrying value, the second step of the impairment test must be performed in order to determine the amount of impairment loss, if any. The second step compares the implied fair value of the reporting unit's goodwill with the carrying amount of that goodwill. If the carrying amount of the reporting unit's goodwill exceeds its implied fair value, an impairment charge is recognized in an amount equal to that excess. The loss recognized cannot exceed the carrying amount of goodwill. | |||
The Company has the option to perform a qualitative assessment of goodwill prior to completing the two-step process described above to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill and other intangible assets. If the Company concludes that this is the case, it must perform the two-step process. Otherwise, the Company will forego the two-step process and does not need to perform any further testing. During 2013, the Company performed qualitative assessments on the entire consolidated goodwill balance. | |||
The Company has completed its annual impairment testing of its goodwill at December 31 of each of the years presented. The Company has not recognized any impairment losses during the periods presented. | |||
Revenue Recognition | |||
In accordance with ASC 605: Revenue Recognition, the Company recognizes revenue when persuasive evidence of an arrangement exists, services have been rendered, the sales price charged is fixed or determinable, and collectability is reasonably assured. | |||
Specifically, the Company recognizes revenue from the management of resort properties according to terms of its various management contracts. | |||
The Company has two basic types of agreements. Under a “Gross Contract” the Company records revenue which is based on a percentage of the gross rental proceeds received from the rental of hotel or condominium units. Under a “Gross Contract” the Company pays a portion of the gross rental proceeds to the owner of the rental unit. The Company only records the difference between the gross rental proceeds and the amount paid to the owner of the rental unit as “Revenue Attributed from Properties.” Under the Gross Contract, the Company is responsible for all of the operating expenses for the hotel or condominium unit. Under a “Net Contract”, the Company receives a management fee that is based on a percentage of the gross rental proceeds received from the rental of hotel or condominium units. Under the Net Contract, the owner of the hotel or condominium unit is responsible for all of the operating expenses of the rental program covering the owner’s unit and the Company also typically receives an incentive management fee, which is based on the net operating profit of the covered property. Additionally, under a net contract, in most cases we employ on-site personnel to provide services such as housekeeping, maintenance and administration to property owners under our management agreements and for such services the Company recognizes revenue in an amount equal to the expenses incurred. Revenues received under the net contract are recorded as Management and Service Income. Under both types of agreements, revenues are recognized after services have been rendered. A liability is recognized for any deposits received for which services have not yet been rendered. | |||
Under a Gross Contract, the Company records the expenses of operating the rental program at the property covered by the agreement. These expenses include housekeeping, food & beverage, maintenance, front desk, sales & marketing, advertising and all other operating costs at the property covered by the agreement. Under a Net Contract, the Company does not record the operating expenses of the property covered by the agreement, other than the personnel costs mentioned in the previous paragraph. The difference between the Gross and Net contracts is that under a Gross Contract, all expenses, and therefore the ownership of any profits or the covering of any operating loss, belong to and is the responsibility of the Company; under a Net Contract, all expenses, and therefore the ownership or any profits or the covering of any operating loss belong to and is the responsibility of the owner of the property. The operating expenses of properties managed under a Gross Contract are recorded as “Attributed Property Expenses.” | |||
Advertising, Sales and Marketing Expenses | |||
The Company incurs sales and marketing expenses (mostly consisting of employee wages) in conjunction with the production of promotional materials, trade shows, and related travel costs. The Company expenses advertising and marketing costs as incurred or as the advertising takes place. For the years ended December 31, 2013 and 2012, total advertising expense was $1,062,286 and $877,834 respectively | |||
Stock-Based Compensation | |||
The Company has accounted for stock-based compensation by recording an expense associated with the fair value of stock-based compensation over the requisite service period, which typically represents the vesting period. For employees, the measurement date is the grant date. For non-employees the measurement date is the earlier of the date of performance completion or the date of performance commitment if a sufficient disincentive to perform exists. The Company currently uses the Black-Scholes option valuation model to calculate the valuation of stock options and warrants at the measurement date. Option pricing models require the input of highly subjective assumptions, including the expected price volatility. Changes in these assumptions can materially affect the fair value estimate. No stock based compensation was issued in the years ended December 31, 2012 and 2013. | |||
Income Taxes | |||
Deferred income tax assets and liabilities are determined based upon differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. Tax benefits are recognized only for tax positions that are more likely than not to be sustained upon examination by tax authorities. We have recorded tax benefits for our US based operations as these benefits have been used in the past, and are likely to be used in the future. We do not recognize any tax benefits from our net operating losses from our foreign operations, as it is not certain that these tax benefits will be realized in the future. The amount recognized is measured as the largest amount of benefit that is greater than 50 percent likely to be realized upon ultimate settlement. Unrecognized tax benefits are tax benefits claimed in our tax returns that do not meet these recognition and measurement standards. Our policy is to recognize potential interest and penalties accrued related to unrecognized tax benefits within income tax expense. For the years ended December 31, 2013 and 2012, the Company did not recognize any interest or penalties in its Statement of Operations, nor did it have any interest or penalties accrued in its Balance Sheet at December 31, 2013 and 2012, relating to unrecognized benefits. | |||
Basic and Diluted Earnings per Share | |||
Basic earnings per share of common stock were computed by dividing income available to common stockholders, by the weighted average number of common shares outstanding. Diluted earnings per share were computed using the treasury stock method for vested warrants and the if-converted method for redeemable preferred stock. The calculation of diluted earnings per share for 2013 and 2012 includes 368,333 shares which would be issued upon conversion of the outstanding $100 par value redeemable preferred stock of the Company. During the years ended December 31, 2013 and 2012, the Company had warrants totaling 80,000 outstanding at each year end, respectively, that were excluded from the computations of diluted net income per share because the warrants would have been antidilutive for the periods presented. | |||
Concentration of Credit Risks | |||
The Company maintains its cash with several financial institutions in Hawaii and New Zealand. Balances maintained with these institutions are occasionally in excess of federally, insured limits. As of December 31, 2013 and 2012, the Company had balances of $245,637 and $252,720, respectively, in excess of US federally insured, limits of $250,000 per financial institution. | |||
Concentration in Market Area | |||
The Company manages hotel properties in Hawaii and New Zealand, and is dependent on the visitor industries in these geographic areas. | |||
Fair Value of Financial Instruments | |||
Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. A fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, may be used to measure fair value. The carrying values of cash and cash equivalents, accounts receivable, and accounts payable and accrued expenses approximate fair value due to the relatively short-term maturities of these financial instruments. The carrying values of notes receivable and notes payable approximate fair value as these notes have interest rates or imputed interest rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. | |||
Long-Lived Assets | |||
We regularly evaluate whether events or circumstances have occurred that indicate the carrying value of our long-lived assets may not be recoverable. When factors indicate the asset may not be recoverable, we compare the related undiscounted future net cash flows to the carrying value of the asset to determine if impairment exists. If the expected future net cash flows are less than the carrying value, an impairment charge is recognized based on the fair value of the asset. No impairments were indicated or recorded during the years ended December 31, 2013 and 2012. | |||
Guarantees | |||
We record a liability for the fair value of a guarantee on the date a guarantee is issued or modified. The offsetting entry depends on the circumstances in which the guarantee was issued. Funding under the guarantee reduces the recorded liability. When no funding is forecasted, the liability is amortized into income on a straight-line basis over the remaining term of the guarantee. During the years ended December 31, 2013 and 2012, there was no amortization recorded. Guarantees are presented as other long term obligations on the balance sheet. | |||
Investment in Limited Liability Company | |||
On September 22, 2011, the Company acquired a 2% common series interest in a limited liability company that purchased the majority of the units in a condo hotel located in Hawaii. The Company received the ownership as compensation for the Company’s assistance to the buyers of the units in negotiating the purchase, performing due diligence and other consulting work. The Company valued this investment at $180,000 and recorded the value received as other income. The investment is accounted for as a cost basis investment. There was no income during the year ended December 31, 2011 as the limited liability company has certain preferred returns that must be satisfied prior to the distribution of income to its members. In January 2012, the Company sold its interest for $350,000 and recorded a gain on sale of $170,000. | |||
On July 23, 2010, the Company acquired a 7% common series interest in the ownership of a hotel located in Hawaii. The Company received a finder’s fee in exchange for the Company’s assistance to the buyers of the hotel in negotiating the purchase, performing due diligence and other consulting work. The Company recognized $188,173 in revenue resulting from cash received in finder’s fees and consulting fees and then used those funds to acquire the 7% common series interest. . The investment is accounted for as an equity method investment and during the year ended December 31, 2013 and 2012, the Company recognized $37,164 and $175,145, respectively, in other income resulting from their portion of the net income attributable to the common series ownership interest. | |||
Foreign Currency Translation and Transaction Gains/Losses | |||
The U.S. dollar is the functional currency of our consolidated entities operating in the United States. The functional currency for our consolidated entities operating outside of the United States is generally the currency of the country in which the entity primarily generates and expends cash. For consolidated entities whose functional currency is not the U.S. dollar, we translate their financial statements into U.S. dollars. Assets and liabilities are translated at the exchange rate in effect as of the financial statement date, and the line items of the results of operations are translated using the weighted average exchange rate for the year. Translation adjustments resulting from these translations are included as a separate component of shareholders’ equity. Gains and losses resulting from foreign currency transactions are included in the consolidated statements of operations. | |||
. | |||
New Accounting Pronouncements | |||
From time to time, new accounting pronouncements are issued by the FASB that are adopted by the Company as of the specified effective date. If not discussed, management believes that the impact of recently issued standards, which are not yet effective, will not have a material impact on the Company’s financial statements upon adoption. |
Related_Party_Transactions_Dis
Related Party Transactions Disclosure | 12 Months Ended |
Dec. 31, 2013 | |
Notes | ' |
Related Party Transactions Disclosure | ' |
2. Related Party Transactions | |
Hanalei Bay International Investors (“HBII”) | |
As disclosed in Note 3, the Company has a receivable of $4,269,151 from Hanalei Bay International Investors (“HBII”). The Chairman and CEO of the Company is the sole shareholder of HBII Management, Inc., the managing General Partner of HBII. In that the collection of this receivable is subject to uncertainty and risks over which the Company has no control, there can be no assurance that the Company will be able to collect this receivable within the next ten years, if at all. In light of such uncertainties, as required by Generally Accepted Accounting Principles (“GAAP”) the Company has established a reserve for uncollectible amounts equal to the entire amount of the receivable. See Note 4 regarding the assignment of this receivable. | |
Investment in LLC | |
In July 2010, the Company acquired a 7% interest in a limited liability company that purchased one of the properties managed by the Company. After the purchase, the chief financial officer of Castle Resorts & Hotels, Inc. was appointed treasurer of a subsidiary of the limited liability company that owns the property. See Note 1. | |
Related Party Loans | |
As disclosed in Note 6, during 2002, the Company’s Chairman and CEO advanced $117,316 to the Company for general working capital. The note bears interest at 10% and is due on or before January 1, 2016. At December 31, 2013, the balance of the note was $117,316. | |
Through December 2013, the Company has accrued but not paid the Chairman and CEO $22,617 related to expenses incurred on behalf of the Company, and $65,967 for interest accrued on the $117,316 note payable. |
Notes_Receivable
Notes Receivable | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Notes | ' | ||||
Notes Receivable | ' | ||||
3. Notes Receivable | |||||
Notes receivable consisted of the following: | |||||
2013 | 2012 | ||||
Note receivable from Hanalei Bay International Investors, secured by a direct assignment of Hanalei Bay International Investors right to receive future proceeds from HBII’s ownership interest in Quintus. (Assigned to third parties- see Note 2) | $4,269,151 | $4,269,151 | |||
Less Reserve for Uncollectible Notes | -4,269,151 | -4,269,151 | |||
Notes Receivable from Oceanfront Realty. Note is payment for the sale of one of the Company's management contracts. | 210,366 | 225,000 | |||
Notes Receivable, Total | 210,366 | 225,000 | |||
Less Current Portion | -15,000 | -40,000 | |||
Notes Receivable, Non-current | $ | 195,366 | $ | 185,000 | |
During the year ended December 31, 2012, the Company recognized a gain of $225,000 on the sale of one of the Company’s management contracts. There were no such transactions during the year ended December 31, 2013. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | |
Dec. 31, 2013 | ||
Notes | ' | |
Commitments and Contingencies | ' | |
4. Commitments and Contingencies | ||
Leases | ||
The Company leases two office spaces that expire on February 28, 2017 and October 31, 2014. For the years ended December 31, 2013 and 2012, the Company paid $366,333 and $351,317, respectively, in lease expense for these leases. As of December 31, 2013, the future minimum rental commitment under these leases was $515,368. | ||
Year | Amount | |
2014 | 283,536 | |
2015 | 106,999 | |
2016 | 106,999 | |
Thereafter | 17,834 | |
Total | $ 515,368 | |
Guaranty | ||
As part of the Company’s purchase of real estate in New Zealand, an assignment of $3,018,000 of the total note receivable from HBII was made to the seller of the real estate, with the Company remaining as guarantor should the note receivable not be collected before March 31, 2018 (see Note 2). In 2012, the New Zealand dollar strengthened against the US dollar, and the Company recorded a foreign exchange loss of $191,585, and increased the amount recorded as “Other long term obligations” to $3,443,494. In 2013, the New Zealand dollar weakened against the US dollar, and the Company recorded a foreign exchange gain of $14,284, and decreased the amount previously recorded as “Other long term obligations” to $3,429,210. | ||
In March 2012, the Company extended the due date in that the loan agreement provides that if the Company remains current with its obligations in connection with the purchase of the New Zealand Real Estate (which the Company has complied with during 2012 and 2013), an extension to December 31, 2014 was available. In March 2014, the Company further extended the due date for the loan to March 31, 2018. | ||
Management Contracts | ||
The Company manages several hotels and resorts under management agreements expiring at various dates. Several of these management agreements contain automatic extensions for periods of 1 to 10 years. | ||
In addition, the Company has sales, marketing and reservations agreements with other hotels and resorts expiring at various dates through December 2022. Several of these agreements contain automatic extensions for periods of one month to three years. Fees received are based on revenues, net available cash flows or commissions as defined in the respective agreements. | ||
Litigation | ||
From time to time, there are claims and lawsuits pending against the Company involving complaints, which are normal and reasonably foreseeable in light of the nature of the Company’s business. The ultimate liability of the Company, if any, cannot be determined at this time. Based upon consultation with counsel, management does not expect that the aggregate liability, if any, resulting from these proceedings would have a material effect on the Company’s consolidated financial position, results of operations or liquidity. |
Employee_Benefits
Employee Benefits | 12 Months Ended |
Dec. 31, 2013 | |
Notes | ' |
Employee Benefits | ' |
5. Employee Benefits | |
The Company has a 401(k) Profit Sharing Plan (the “Plan”) available for its employees. Any employee with one-year of continuous service and 1,000 credited hours of service, who is at least twenty-one years old, is eligible to participate. For the years ended December 31, 2013 and 2012, the Company made no profit contributions. | |
The Company also has a Flexible Benefits Plan (the “Benefits Plan”). The participants in the Benefits Plan are allowed to make pre-tax premium elections which are intended to be excluded from income as provided by Section 125 of the Internal Revenue Code of 1986. To be eligible, an employee must have been employed for 90 days. The benefits include group medical insurance, vision care insurance, disability insurance, cancer insurance, group dental coverage, group term life insurance, and accident insurance. |
Notes_Payable
Notes Payable | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Notes | ' | ||||
Notes Payable | ' | ||||
6. Notes Payable | |||||
Notes payable at December 31 consisted of the following | |||||
2013 | 2012 | ||||
Note dated 6/6/04 to a former director, with interest at the rate of 8%, monthly payments of interest plus $521, balance due 1/1/14, unsecured | $ | - | $ | 21,355 | |
Note dated 12/31/02 to the Company's CEO , with interest at 10% due on or before 1/1/16, unsecured | 117,316 | 117,316 | |||
Note dated 12/31/04, payable in New Zealand dollars, with an original face value of $8.6 million and secured by real estate in New Zealand and a general security agreement including an assignment of $3.018 million of the note receivable due from HBII. The Company acts as a guarantor for the payment of the assigned receivable, and therefore, the obligation undertaken as a guarantor is included in this amount. The guarantor obligation is referred to as “Other long term obligations” on the Balance Sheet (See Note 4). The note calls for payments of NZ $40,000 (US $32,648) per month. The note also calls for monthly interest payments to a NZ bank for a loan in favor of Mocles at the bank’s prime rate plus 2% The maturity date is March 31, 2018. | 7,711,116 | 8,136,645 | |||
Note dated 10/20/08 payable to a bank, with interest at the bank’s | - | 83,350 | |||
prime rate plus 1%, secured by a security interest in all personal | |||||
property of the Company and by the personal guaranty of the | |||||
Company’s Chairman & CEO, with monthly payments of $8,333 | |||||
plus interest. The note was paid in full in October 2013.. | |||||
Revolving line of credit with a bank for up to $200,000. | 150,000 | - | |||
The line is secured by a general security interest in the | |||||
Company’s assets. Draws against the line will bear interest | |||||
at the bank’s base lending rate plus 2%, which as of | |||||
December 31, 2013 was 6.375%. The line has a | |||||
termination date of October 31, 2014.. | |||||
Revolving line of credit with a bank for up to NZ $300,000 | - | - | |||
(US$244,860). The line is secured by a general security interest in | |||||
the Company’s assets in New Zealand. Draws against the line will | |||||
bear interest at the bank’s base lending rate plus 2%. The line is | |||||
cancellable at any time by the bank. | |||||
Subtotal | $ | 7,978,432 | $ | 8,358,666 | |
Less Current Portion | 541,776 | 286,304 | |||
Notes payable, non-current | $ | 7,436,656 | $ | 8,072,362 | |
The five year payout schedule for notes payable is as follows: | |||||
Year | Amount | ||||
2014 | $541,776 | ||||
2015 | 509,092 | ||||
2016 | 391,776 | ||||
2017 | 391,776 | ||||
2018 | 6,144,012 | ||||
Total | $ 7,978,432 | ||||
Stockholders_Equity
Stockholders Equity | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
Notes | ' | |||||
Stockholders Equity | ' | |||||
7. Redeemable Preferred Stock | ||||||
In 1999 and 2000, the Company issued a total of 11,050 shares of $100 par value redeemable preferred stock to certain officers and directors. . Dividends are cumulative from the date of original issue and are payable semi-annually, when, and if declared by the board of directors beginning July 15, 1999, at a rate of $7.50 per annum per share. At December 31, 2013, undeclared and unpaid dividends on these shares were $1,201,905 or $108.77 per preferred share. These dividends are not accrued as a liability, as no declaration has occurred. The shares are nonvoting, and are convertible into the Company’s common stock at an exercise price of $3.00 per share. As of January 15, 2001, the redeemable preferred stock is redeemable at the option of the Company at a redemption price of $100 per share plus accrued and unpaid dividends. | ||||||
8. Common Stock | ||||||
There were no issuances of Common Stock of the Company in 2013 or 2012. | ||||||
Common Stock Options and Warrants | ||||||
The Company does not have Stock Based Incentive, Stock Purchase or Stock Option or Warrant Plans. No options or warrants were outstanding prior to January 1, 2007. | ||||||
Changes in warrants for the year ended December 31, 2013 were as follows: | ||||||
Number of Shares | Weighted Average Exercise Price | Remaining Contractual Term (in Years) | Intrinsic Value | |||
Outstanding and exercisable at December 31, 2012 | 80,000 | $1.00 | 2.58 | $ 0 | ||
Granted | - | - | - | - | ||
Exercised | - | - | - | - | ||
Forfeited/Expired | - | - | - | - | ||
Outstanding and exercisable at December 31, 2013 | 80,000 | $1.00 | 1.58 | $ - | ||
The following table summarizes information about compensatory warrants outstanding at December 31, 2013: | ||||||
Exercise Price | Number Outstanding | Weighted Average Remaining Contractual Life (in years) | Weighted Average Exercise Price | Number Exercisable | Weighted Average Exercise Price | |
$1.00 | 80,000 | 1.58 | $ 1.00 | 80,000 | $ 1.00 |
Income_Taxes
Income Taxes | 12 Months Ended | ||
Dec. 31, 2013 | |||
Notes | ' | ||
Income Taxes | ' | ||
9. Income Taxes | |||
The provision for income taxes consists of the following: | |||
2013 | 2012 | ||
Current | $ 0 | $ 0 | |
Deferred | |||
Federal | 127,592 | 367,562 | |
State | 15,852 | 45,665 | |
Foreign | - | - | |
Total Provision (Benefit) | $ 143,444 | $ 413,227 | |
The components of the Company’s deferred tax assets and liabilities are as follows: | |||
2013 | 2012 | ||
Deferred Tax Assets | |||
Current | |||
Accounts Receivable | $ 61,437 | $ 69,973 | |
Accrued Vacation | 239,528 | 166,115 | |
Net Operating Loss | 281,257 | 262,764 | |
Less: Current portion of Valuation Allowance | (151,222) | (67,852) | |
Total Current, Net | 431,000 | 431,000 | |
Non-Current | |||
Note Receivable | 364,832 | 364,832 | |
Goodwill | 12,349 | 21,031 | |
Net Operating Loss Carryforwards | 954,932 | 1,281,821 | |
Less: Valuation Allowance | (393,959) | (597,989) | |
Total Non-Current, Net | 938,154 | 1,069,695 | |
Total Deferred Tax Asset, Net | $ 1,369,154 | $ 1,500,695 | |
As of December 31, 2013, the Company had net operating loss carry forwards amounting to $1,992,343 for domestic jurisdictions which expire on various dates through 2028 and $2,086,998 for foreign jurisdictions that do not expire. The Company expects to utilize $628,000 of the domestic net operating losses and other current deferred tax assets for the year ended December 31, 2014, and has therefore classified this portion of the deferred tax asset associated with the loss carryforward as a current asset on the Company’s consolidated balance sheet. The Company has reported a full valuation allowance on deferred tax assets in foreign jurisdictions, which changed from $665,841 to $545,181 during the year ended December 31, 2013 resulting in a decrease of $(120,660). | |||
The Company’s US based net operating losses available for future use are as follows: | |||
Year | Available Net Operating Loss | Expires | |
2002 | 1,184,312 | 2022 | |
2007 | 138,950 | 2027 | |
2008 | 669,081 | 2028 | |
Total Available | 1,992,343 | ||
Income tax expense differs from amounts computed by applying the statutory Federal rate to pretax income as follows: | |||
2013 | 2012 | ||
Expected US Income Tax (Benefit) on Consolidated Income before Tax | $ 117,406 | $ 309,489 | |
Effects of: | |||
Expected State Income Tax (Benefit) on Consolidated Income before Tax | 15,404 | 42,654 | |
Change in valuation allowance | (120,660) | (86,822) | |
Permanent Differences | 125,035 | 76,425 | |
Earnings/(Losses) in foreign jurisdictions taxes at rates different from the statutory U.S. federal rate | 7,040 | 48,442 | |
Other, net | (781) | 23,039 | |
Effective Tax Provision (Benefit) | $ 143,444 | $ 413,227 | |
The Company has evaluated its uncertain tax positions and determined that any required adjustments would not have a material impact on the Company's balance sheet, income statement, or statement of cash flows. | |||
A reconciliation of the unrecognized tax benefits for the years ending December 31, 2013 and 2012 is presented in the table below: | |||
2013 | 2012 | ||
Beginning Balance | $ - | $ - | |
Additions based on tax positions related to the current year | - | - | |
Reductions for tax positions of prior years | - | - | |
Reductions due to expiration of statute of limitations | - | - | |
Settlements with taxing authorities | - | - | |
Ending Balance | $ - | $ - | |
The tax years 2010 through 2013 remain open to examination for federal income tax purposes and by other major taxing jurisdictions to which we are subject. | |||
Business_Segments
Business Segments | 12 Months Ended |
Dec. 31, 2013 | |
Notes | ' |
Business Segments | ' |
10. Foreign Operations and Business Segments | |
The Company has one business segment consisting of resort and hotel management services. The consolidated financial statements include the following related to international operations (which are predominately in New Zealand): Revenues of $5,786,493 in 2013 and $5,537,652 in 2012; net income of $175,998 in 2013 and $100,408 in 2012; and net fixed assets of $7,142,040 in 2013 and $7,379,578 in 2012. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||
Dec. 31, 2013 | |||
Policies | ' | ||
Organization | ' | ||
Organization | |||
The Castle Group, Inc. was incorporated under the laws of the State of Utah on August 21, 1981. The Castle Group, Inc. operates in the hotel and resort management industry in the State of Hawaii, New Zealand, and the Commonwealth of Saipan under the trade name “Castle Resorts and Hotels.” The accounting and reporting policies of The Castle Group, Inc. (the “Company”) conform with generally accepted accounting principles and practices within the hotel and resort management industry. | |||
Principles of Consolidation | ' | ||
Principles of Consolidation | |||
The consolidated financial statements of the Company include the accounts of The Castle Group, Inc. and its wholly-owned subsidiaries, Hawaii Reservations Center Corp., HPR Advertising, Inc., Castle Resorts & Hotels, Inc., Castle Resorts & Hotels Thailand Ltd., NZ Castle Resorts and Hotels Limited (a New Zealand Corporation), NZ Castle Resorts and Hotels’ wholly-owned subsidiary, Mocles Holdings Limited (a New Zealand Corporation), Castle Resorts & Hotels NZ Ltd., Castle Group LLC (Guam), Castle Resorts & Hotels Guam Inc. and KRI Inc. dba Hawaiian Pacific Resorts (Interactive). All significant inter-company transactions have been eliminated in the consolidated financial statements. | |||
Use of Management Estimates in Financial Statements | ' | ||
Use of Management Estimates in Financial Statements | |||
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |||
Cash and Cash Equivalents | ' | ||
Cash and Cash Equivalents | |||
The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. | |||
Accounts Receivable | ' | ||
Accounts Receivable | |||
The Company records an account receivable for revenue earned but not yet collected. The Company estimates allowances for doubtful accounts based on the aged receivable balances and historical losses. If the Company determines any account to be uncollectible based on significant delinquency or other factors, it is immediately written off. An allowance for bad debts has been provided based on estimated losses amounting to $166,384 and $146,958 as of December 31, 2013 and 2012, respectively. | |||
Property, Plant, and Equipment | ' | ||
Property, Plant, and Equipment | |||
Property, plant, and equipment are recorded at cost. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounting records, and any resulting gain or loss is reflected in the Consolidated Statement of Operations for the period. The cost of maintenance and repairs is expensed as incurred. Renewals and betterments are capitalized and depreciated over their estimated useful lives. | |||
At December 31, 2013 and 2012, property, plant, and equipment consisted of the following: | |||
2013 | 2012 | ||
Real estate - Podium | $8,461,550 | $8,496,798 | |
Equipment and furnishings | 1,647,236 | 1,658,014 | |
Less accumulated depreciation | -2,947,996 | -2,774,433 | |
Net property, furniture and equipment | $7,160,790 | $7,380,379 | |
Depreciation is computed using the declining balance and straight-line methods over the estimated useful life of the assets (Equipment and furnishings 5 to 7 years, Podium 50 years). For the years ended December 31, 2013 and 2012, depreciation expense was $221,970 and $222,528, respectively. | |||
Goodwill and Intangibles | ' | ||
Goodwill and Intangibles | |||
We perform impairment tests of goodwill at our reporting unit level, which is one level below our operating segments. Our operating segments are primarily based on geographic responsibility, which is consistent with the way management runs our business. | |||
The goodwill impairment test consists of a two-step process, if necessary. The first step is to compare the fair value of a reporting unit to its carrying value, including goodwill. We typically use discounted cash flow models to determine the fair value of a reporting unit. The assumptions used in these models are consistent with those we believe hypothetical marketplace participants would use. If the fair value of the reporting unit is less than its carrying value, the second step of the impairment test must be performed in order to determine the amount of impairment loss, if any. The second step compares the implied fair value of the reporting unit's goodwill with the carrying amount of that goodwill. If the carrying amount of the reporting unit's goodwill exceeds its implied fair value, an impairment charge is recognized in an amount equal to that excess. The loss recognized cannot exceed the carrying amount of goodwill. | |||
The Company has the option to perform a qualitative assessment of goodwill prior to completing the two-step process described above to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill and other intangible assets. If the Company concludes that this is the case, it must perform the two-step process. Otherwise, the Company will forego the two-step process and does not need to perform any further testing. During 2013, the Company performed qualitative assessments on the entire consolidated goodwill balance. | |||
The Company has completed its annual impairment testing of its goodwill at December 31 of each of the years presented. The Company has not recognized any impairment losses during the periods presented. | |||
Revenue Recognition | ' | ||
Revenue Recognition | |||
In accordance with ASC 605: Revenue Recognition, the Company recognizes revenue when persuasive evidence of an arrangement exists, services have been rendered, the sales price charged is fixed or determinable, and collectability is reasonably assured. | |||
Specifically, the Company recognizes revenue from the management of resort properties according to terms of its various management contracts. | |||
The Company has two basic types of agreements. Under a “Gross Contract” the Company records revenue which is based on a percentage of the gross rental proceeds received from the rental of hotel or condominium units. Under a “Gross Contract” the Company pays a portion of the gross rental proceeds to the owner of the rental unit. The Company only records the difference between the gross rental proceeds and the amount paid to the owner of the rental unit as “Revenue Attributed from Properties.” Under the Gross Contract, the Company is responsible for all of the operating expenses for the hotel or condominium unit. Under a “Net Contract”, the Company receives a management fee that is based on a percentage of the gross rental proceeds received from the rental of hotel or condominium units. Under the Net Contract, the owner of the hotel or condominium unit is responsible for all of the operating expenses of the rental program covering the owner’s unit and the Company also typically receives an incentive management fee, which is based on the net operating profit of the covered property. Additionally, under a net contract, in most cases we employ on-site personnel to provide services such as housekeeping, maintenance and administration to property owners under our management agreements and for such services the Company recognizes revenue in an amount equal to the expenses incurred. Revenues received under the net contract are recorded as Management and Service Income. Under both types of agreements, revenues are recognized after services have been rendered. A liability is recognized for any deposits received for which services have not yet been rendered. | |||
Under a Gross Contract, the Company records the expenses of operating the rental program at the property covered by the agreement. These expenses include housekeeping, food & beverage, maintenance, front desk, sales & marketing, advertising and all other operating costs at the property covered by the agreement. Under a Net Contract, the Company does not record the operating expenses of the property covered by the agreement, other than the personnel costs mentioned in the previous paragraph. The difference between the Gross and Net contracts is that under a Gross Contract, all expenses, and therefore the ownership of any profits or the covering of any operating loss, belong to and is the responsibility of the Company; under a Net Contract, all expenses, and therefore the ownership or any profits or the covering of any operating loss belong to and is the responsibility of the owner of the property. The operating expenses of properties managed under a Gross Contract are recorded as “Attributed Property Expenses.” | |||
Advertising, Sales and Marketing Expenses | ' | ||
Advertising, Sales and Marketing Expenses | |||
The Company incurs sales and marketing expenses (mostly consisting of employee wages) in conjunction with the production of promotional materials, trade shows, and related travel costs. The Company expenses advertising and marketing costs as incurred or as the advertising takes place. For the years ended December 31, 2013 and 2012, total advertising expense was $1,062,286 and $877,834 respectively | |||
Stock-based Compensation | ' | ||
Stock-Based Compensation | |||
The Company has accounted for stock-based compensation by recording an expense associated with the fair value of stock-based compensation over the requisite service period, which typically represents the vesting period. For employees, the measurement date is the grant date. For non-employees the measurement date is the earlier of the date of performance completion or the date of performance commitment if a sufficient disincentive to perform exists. The Company currently uses the Black-Scholes option valuation model to calculate the valuation of stock options and warrants at the measurement date. Option pricing models require the input of highly subjective assumptions, including the expected price volatility. Changes in these assumptions can materially affect the fair value estimate. No stock based compensation was issued in the years ended December 31, 2012 and 2013. | |||
Income Taxes | ' | ||
Income Taxes | |||
Deferred income tax assets and liabilities are determined based upon differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. Tax benefits are recognized only for tax positions that are more likely than not to be sustained upon examination by tax authorities. We have recorded tax benefits for our US based operations as these benefits have been used in the past, and are likely to be used in the future. We do not recognize any tax benefits from our net operating losses from our foreign operations, as it is not certain that these tax benefits will be realized in the future. The amount recognized is measured as the largest amount of benefit that is greater than 50 percent likely to be realized upon ultimate settlement. Unrecognized tax benefits are tax benefits claimed in our tax returns that do not meet these recognition and measurement standards. Our policy is to recognize potential interest and penalties accrued related to unrecognized tax benefits within income tax expense. For the years ended December 31, 2013 and 2012, the Company did not recognize any interest or penalties in its Statement of Operations, nor did it have any interest or penalties accrued in its Balance Sheet at December 31, 2013 and 2012, relating to unrecognized benefits. | |||
Basic and Diluted Earnings Per Share | ' | ||
Basic and Diluted Earnings per Share | |||
Basic earnings per share of common stock were computed by dividing income available to common stockholders, by the weighted average number of common shares outstanding. Diluted earnings per share were computed using the treasury stock method for vested warrants and the if-converted method for redeemable preferred stock. The calculation of diluted earnings per share for 2013 and 2012 includes 368,333 shares which would be issued upon conversion of the outstanding $100 par value redeemable preferred stock of the Company. During the years ended December 31, 2013 and 2012, the Company had warrants totaling 80,000 outstanding at each year end, respectively, that were excluded from the computations of diluted net income per share because the warrants would have been antidilutive for the periods presented. | |||
Concentration of Credit Risks | ' | ||
Concentration of Credit Risks | |||
The Company maintains its cash with several financial institutions in Hawaii and New Zealand. Balances maintained with these institutions are occasionally in excess of federally, insured limits. As of December 31, 2013 and 2012, the Company had balances of $245,637 and $252,720, respectively, in excess of US federally insured, limits of $250,000 per financial institution. | |||
Concentration in Market Area | |||
The Company manages hotel properties in Hawaii and New Zealand, and is dependent on the visitor industries in these geographic areas. | |||
Fair Value of Financial Instruments | ' | ||
Fair Value of Financial Instruments | |||
Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. A fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, may be used to measure fair value. The carrying values of cash and cash equivalents, accounts receivable, and accounts payable and accrued expenses approximate fair value due to the relatively short-term maturities of these financial instruments. The carrying values of notes receivable and notes payable approximate fair value as these notes have interest rates or imputed interest rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. | |||
Long-lived Assets | ' | ||
Long-Lived Assets | |||
We regularly evaluate whether events or circumstances have occurred that indicate the carrying value of our long-lived assets may not be recoverable. When factors indicate the asset may not be recoverable, we compare the related undiscounted future net cash flows to the carrying value of the asset to determine if impairment exists. If the expected future net cash flows are less than the carrying value, an impairment charge is recognized based on the fair value of the asset. No impairments were indicated or recorded during the years ended December 31, 2013 and 2012. | |||
Guarantees | ' | ||
Guarantees | |||
We record a liability for the fair value of a guarantee on the date a guarantee is issued or modified. The offsetting entry depends on the circumstances in which the guarantee was issued. Funding under the guarantee reduces the recorded liability. When no funding is forecasted, the liability is amortized into income on a straight-line basis over the remaining term of the guarantee. During the years ended December 31, 2013 and 2012, there was no amortization recorded. Guarantees are presented as other long term obligations on the balance sheet. | |||
Investment in Limited Liability Company | ' | ||
Investment in Limited Liability Company | |||
On September 22, 2011, the Company acquired a 2% common series interest in a limited liability company that purchased the majority of the units in a condo hotel located in Hawaii. The Company received the ownership as compensation for the Company’s assistance to the buyers of the units in negotiating the purchase, performing due diligence and other consulting work. The Company valued this investment at $180,000 and recorded the value received as other income. The investment is accounted for as a cost basis investment. There was no income during the year ended December 31, 2011 as the limited liability company has certain preferred returns that must be satisfied prior to the distribution of income to its members. In January 2012, the Company sold its interest for $350,000 and recorded a gain on sale of $170,000. | |||
On July 23, 2010, the Company acquired a 7% common series interest in the ownership of a hotel located in Hawaii. The Company received a finder’s fee in exchange for the Company’s assistance to the buyers of the hotel in negotiating the purchase, performing due diligence and other consulting work. The Company recognized $188,173 in revenue resulting from cash received in finder’s fees and consulting fees and then used those funds to acquire the 7% common series interest. . The investment is accounted for as an equity method investment and during the year ended December 31, 2013 and 2012, the Company recognized $37,164 and $175,145, respectively, in other income resulting from their portion of the net income attributable to the common series ownership interest. | |||
Foreign Currency Transactions and Translations Policy | ' | ||
Foreign Currency Translation and Transaction Gains/Losses | |||
The U.S. dollar is the functional currency of our consolidated entities operating in the United States. The functional currency for our consolidated entities operating outside of the United States is generally the currency of the country in which the entity primarily generates and expends cash. For consolidated entities whose functional currency is not the U.S. dollar, we translate their financial statements into U.S. dollars. Assets and liabilities are translated at the exchange rate in effect as of the financial statement date, and the line items of the results of operations are translated using the weighted average exchange rate for the year. Translation adjustments resulting from these translations are included as a separate component of shareholders’ equity. Gains and losses resulting from foreign currency transactions are included in the consolidated statements of operations. | |||
. | |||
New Accounting Pronouncements | ' | ||
New Accounting Pronouncements | |||
From time to time, new accounting pronouncements are issued by the FASB that are adopted by the Company as of the specified effective date. If not discussed, management believes that the impact of recently issued standards, which are not yet effective, will not have a material impact on the Company’s financial statements upon adoption. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||
Dec. 31, 2013 | |||
Tables/Schedules | ' | ||
Property, Plant and Equipment | ' | ||
2013 | 2012 | ||
Real estate - Podium | $8,461,550 | $8,496,798 | |
Equipment and furnishings | 1,647,236 | 1,658,014 | |
Less accumulated depreciation | -2,947,996 | -2,774,433 | |
Net property, furniture and equipment | $7,160,790 | $7,380,379 | |
Notes_Receivable_Tables
Notes Receivable (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Tables/Schedules | ' | ||||
Schedule of Notes Receivable | ' | ||||
2013 | 2012 | ||||
Note receivable from Hanalei Bay International Investors, secured by a direct assignment of Hanalei Bay International Investors right to receive future proceeds from HBII’s ownership interest in Quintus. (Assigned to third parties- see Note 2) | $4,269,151 | $4,269,151 | |||
Less Reserve for Uncollectible Notes | -4,269,151 | -4,269,151 | |||
Notes Receivable from Oceanfront Realty. Note is payment for the sale of one of the Company's management contracts. | 210,366 | 225,000 | |||
Notes Receivable, Total | 210,366 | 225,000 | |||
Less Current Portion | -15,000 | -40,000 | |||
Notes Receivable, Non-current | $ | 195,366 | $ | 185,000 |
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | |
Dec. 31, 2013 | ||
Tables/Schedules | ' | |
Operating Leases of Lessee Disclosure | ' | |
Year | Amount | |
2014 | 283,536 | |
2015 | 106,999 | |
2016 | 106,999 | |
Thereafter | 17,834 | |
Total | $ 515,368 |
Notes_Payable_Tables
Notes Payable (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Tables/Schedules | ' | ||||
Schedule of Accrued Liabilities | ' | ||||
Notes payable at December 31 consisted of the following | |||||
2013 | 2012 | ||||
Note dated 6/6/04 to a former director, with interest at the rate of 8%, monthly payments of interest plus $521, balance due 1/1/14, unsecured | $ | - | $ | 21,355 | |
Note dated 12/31/02 to the Company's CEO , with interest at 10% due on or before 1/1/16, unsecured | 117,316 | 117,316 | |||
Note dated 12/31/04, payable in New Zealand dollars, with an original face value of $8.6 million and secured by real estate in New Zealand and a general security agreement including an assignment of $3.018 million of the note receivable due from HBII. The Company acts as a guarantor for the payment of the assigned receivable, and therefore, the obligation undertaken as a guarantor is included in this amount. The guarantor obligation is referred to as “Other long term obligations” on the Balance Sheet (See Note 4). The note calls for payments of NZ $40,000 (US $32,648) per month. The note also calls for monthly interest payments to a NZ bank for a loan in favor of Mocles at the bank’s prime rate plus 2% The maturity date is March 31, 2018. | 7,711,116 | 8,136,645 | |||
Note dated 10/20/08 payable to a bank, with interest at the bank’s | - | 83,350 | |||
prime rate plus 1%, secured by a security interest in all personal | |||||
property of the Company and by the personal guaranty of the | |||||
Company’s Chairman & CEO, with monthly payments of $8,333 | |||||
plus interest. The note was paid in full in October 2013.. | |||||
Revolving line of credit with a bank for up to $200,000. | 150,000 | - | |||
The line is secured by a general security interest in the | |||||
Company’s assets. Draws against the line will bear interest | |||||
at the bank’s base lending rate plus 2%, which as of | |||||
December 31, 2013 was 6.375%. The line has a | |||||
termination date of October 31, 2014.. | |||||
Revolving line of credit with a bank for up to NZ $300,000 | - | - | |||
(US$244,860). The line is secured by a general security interest in | |||||
the Company’s assets in New Zealand. Draws against the line will | |||||
bear interest at the bank’s base lending rate plus 2%. The line is | |||||
cancellable at any time by the bank. | |||||
Subtotal | $ | 7,978,432 | $ | 8,358,666 | |
Less Current Portion | 541,776 | 286,304 | |||
Notes payable, non-current | $ | 7,436,656 | $ | 8,072,362 | |
Schedule of Accounts Payable and Accrued Liabilities | ' | ||||
Year | Amount | ||||
2014 | $541,776 | ||||
2015 | 509,092 | ||||
2016 | 391,776 | ||||
2017 | 391,776 | ||||
2018 | 6,144,012 | ||||
Total | $ 7,978,432 | ||||
Stockholders_Equity_Tables
Stockholders Equity (Tables) | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
Tables/Schedules | ' | |||||
Schedule of Common Stock Options and Warrants | ' | |||||
Number of Shares | Weighted Average Exercise Price | Remaining Contractual Term (in Years) | Intrinsic Value | |||
Outstanding and exercisable at December 31, 2012 | 80,000 | $1.00 | 2.58 | $ 0 | ||
Granted | - | - | - | - | ||
Exercised | - | - | - | - | ||
Forfeited/Expired | - | - | - | - | ||
Outstanding and exercisable at December 31, 2013 | 80,000 | $1.00 | 1.58 | $ - | ||
Schedule of Compensatory Warrants | ' | |||||
Exercise Price | Number Outstanding | Weighted Average Remaining Contractual Life (in years) | Weighted Average Exercise Price | Number Exercisable | Weighted Average Exercise Price | |
$1.00 | 80,000 | 1.58 | $ 1.00 | 80,000 | $ 1.00 |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||
Dec. 31, 2013 | |||
Tables/Schedules | ' | ||
Schedule of Components of Income Tax Expense (Benefit) | ' | ||
2013 | 2012 | ||
Current | $ 0 | $ 0 | |
Deferred | |||
Federal | 127,592 | 367,562 | |
State | 15,852 | 45,665 | |
Foreign | - | - | |
Total Provision (Benefit) | $ 143,444 | $ 413,227 | |
Schedule of Deferred Tax Assets and Liabilities | ' | ||
2013 | 2012 | ||
Deferred Tax Assets | |||
Current | |||
Accounts Receivable | $ 61,437 | $ 69,973 | |
Accrued Vacation | 239,528 | 166,115 | |
Net Operating Loss | 281,257 | 262,764 | |
Less: Current portion of Valuation Allowance | (151,222) | (67,852) | |
Total Current, Net | 431,000 | 431,000 | |
Non-Current | |||
Note Receivable | 364,832 | 364,832 | |
Goodwill | 12,349 | 21,031 | |
Net Operating Loss Carryforwards | 954,932 | 1,281,821 | |
Less: Valuation Allowance | (393,959) | (597,989) | |
Total Non-Current, Net | 938,154 | 1,069,695 | |
Total Deferred Tax Asset, Net | $ 1,369,154 | $ 1,500,695 | |
Summary of Operating Loss Carryforwards | ' | ||
Year | Available Net Operating Loss | Expires | |
2002 | 1,184,312 | 2022 | |
2007 | 138,950 | 2027 | |
2008 | 669,081 | 2028 | |
Total Available | 1,992,343 | ||
Schedule of Effective Income Tax Rate Reconciliation | ' | ||
2013 | 2012 | ||
Expected US Income Tax (Benefit) on Consolidated Income before Tax | $ 117,406 | $ 309,489 | |
Effects of: | |||
Expected State Income Tax (Benefit) on Consolidated Income before Tax | 15,404 | 42,654 | |
Change in valuation allowance | (120,660) | (86,822) | |
Permanent Differences | 125,035 | 76,425 | |
Earnings/(Losses) in foreign jurisdictions taxes at rates different from the statutory U.S. federal rate | 7,040 | 48,442 | |
Other, net | (781) | 23,039 | |
Effective Tax Provision (Benefit) | $ 143,444 | $ 413,227 | |
Summary of Positions for which Significant Change in Unrecognized Tax Benefits is Reasonably Possible | ' | ||
2013 | 2012 | ||
Beginning Balance | $ - | $ - | |
Additions based on tax positions related to the current year | - | - | |
Reductions for tax positions of prior years | - | - | |
Reductions due to expiration of statute of limitations | - | - | |
Settlements with taxing authorities | - | - | |
Ending Balance | $ - | $ - |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Details | ' | ' | ' | ' |
Allowance for Doubtful Accounts Receivable, Current | $166,384 | $146,958 | ' | ' |
Real Estate Investment Property, at Cost | 8,461,550 | 8,496,798 | ' | ' |
Fixtures and Equipment, Gross | 1,647,236 | 1,658,014 | ' | ' |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | -2,947,996 | -2,774,433 | ' | ' |
Property plant & equipment, net | 7,160,790 | 7,380,379 | ' | ' |
Property, Plant and Equipment, Useful Life, Minimum | 5 | ' | ' | ' |
Property, Plant and Equipment, Useful Life, Maximum | 7 | ' | ' | ' |
Real Estate Useful Life | 50 | ' | ' | ' |
Depreciation | 221,970 | 222,528 | ' | ' |
Marketing and Advertising Expense | 1,062,286 | 877,834 | ' | ' |
Shares Used InComputation Of Diluted Earnings Loss Per Share | 368,333 | ' | ' | ' |
Preferred stock par value | $100 | $100 | ' | ' |
Warrants Outstanding | 80,000 | 80,000 | ' | ' |
Amount Above Federally Insured Limit | 245,637 | 252,720 | ' | ' |
Cash, FDIC Insured Amount | 250,000 | ' | ' | ' |
Equity Method Investment, Ownership Percentage | ' | ' | 2.00% | 7.00% |
Equity Method Investment, Aggregate Cost | 180,000 | ' | ' | ' |
Equity Method Investment, Net Sales Proceeds | 350,000 | ' | ' | ' |
Equity Method Investment, Realized Gain (Loss) on Disposal | 170,000 | ' | ' | ' |
Equity Method Investment, Description of Principal Activities | 'The Company received a finder’s fee in exchange for the Company’s assistance to the buyers of the hotel in negotiating the purchase, performing due diligence and other consulting work. The Company recognized $188,173 in revenue resulting from cash received in finder’s fees and consulting fees and then used those funds to acquire the 7% common series interest. . | ' | ' | ' |
Investment income (Loss) | $37,164 | $175,145 | ' | ' |
Related_Party_Transactions_Dis1
Related Party Transactions Disclosure (Details) (USD $) | 12 Months Ended | ||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2002 | |
Details | ' | ' | ' | ' | ' |
Accounts Receivable From Hanalei-Bay International Investors | $4,269,151 | $4,269,151 | ' | ' | ' |
Equity Method Investment, Ownership Percentage | ' | ' | 2.00% | 7.00% | ' |
Due to Officers or Stockholders, Current | 117,316 | 117,316 | ' | ' | 117,316 |
Accounts Payable, Interest-bearing, Interest Rate | ' | ' | ' | ' | 10.00% |
Due to Officers or Stockholders | 22,617 | ' | ' | ' | ' |
Interest Expense, Related Party | $65,967 | ' | ' | ' | ' |
Notes_Receivable_Details
Notes Receivable (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Details | ' | ' |
Accounts Receivable From Hanalei-Bay International Investors | $4,269,151 | $4,269,151 |
Less Reserve For Uncollectible Notes For Hanalei-Bay International | -4,269,151 | -4,269,151 |
Notes Receivable Oceanfront Realty | 210,366 | 225,000 |
Financing Receivable, Gross | 210,366 | 225,000 |
Accounts, Notes, Loans and Financing Receivable, Net, Current | -15,000 | -40,000 |
Note receivable | $195,366 | $185,000 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Details | ' | ' |
Operating Leases, Rent Expense | $366,333 | $351,317 |
Operating Leases, Future Minimum Payments Due | 515,368 | ' |
Operating Leases, Future Minimum Payments, Due in Two Years | 283,536 | ' |
Operating Leases, Future Minimum Payments, Due in Three Years | 106,999 | ' |
Operating Leases, Future Minimum Payments, Due in Four Years | 106,999 | ' |
Operating Leases, Future Minimum Payments, Due Thereafter | 17,834 | ' |
Guarantor Obligations, Maximum Exposure, Undiscounted | 3,018,000 | ' |
Foreign exchange (gain) loss on guarantor obligation | -14,284 | 191,585 |
Other long term obligations, net | 3,429,210 | 3,443,494 |
Foreign Currency Transaction Gain (Loss) | $14,284 | ($191,585) |
Notes_Payable_Details
Notes Payable (Details) (USD $) | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2002 |
Details | ' | ' | ' | ' | ' | ' | ' | ' |
Due to Officers or Stockholders, Noncurrent | ' | ' | ' | ' | ' | ' | $21,355 | ' |
Due to Officers or Stockholders, Current | ' | ' | ' | ' | ' | 117,316 | 117,316 | 117,316 |
HBII Note Balance | ' | ' | ' | ' | ' | 7,711,116 | 8,136,645 | ' |
Bank Note Payable Dated October 20, 2008 | ' | ' | ' | ' | ' | ' | 83,350 | ' |
Bank Revolving Line Of Credit | ' | ' | ' | ' | ' | 150,000 | ' | ' |
Notes Payable | ' | ' | ' | ' | ' | 7,978,432 | 8,358,666 | ' |
Notes Payable, Current | ' | ' | ' | ' | ' | 541,776 | 286,304 | ' |
Total Non Current Liabilities | ' | ' | ' | ' | ' | 7,436,656 | 8,072,362 | ' |
Notes Payable payout | 6,144,012 | 391,776 | 391,776 | 509,092 | 541,776 | ' | ' | ' |
Total Notes Payable Balance | ' | ' | ' | ' | ' | $7,978,432 | ' | ' |
Stockholders_Equity_Details
Stockholders Equity (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Details | ' | ' |
Preferred stock outstanding | 11,050 | 11,050 |
Preferred stock par value | $100 | $100 |
Preferred Stock, Dividend Payment Terms | '. Dividends are cumulative from the date of original issue and are payable semi-annually, when, and if declared by the board of directors beginning July 15, 1999, at a rate of $7.50 per annum per share. | ' |
Dividends, Common Stock | $1,201,905 | ' |
Dividends Payable, Amount Per Share | $108.77 | ' |
Redeemable Preferred Stock Exerise Price | $3 | ' |
Redeemable Preferred Stock, Redemption Price Per Share | $100 | ' |
Warrants Outstanding | 80,000 | 80,000 |
Warrants Outstanding Weighted Average Exercise Price | 1 | 1 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Outstanding, Weighted Average Remaining Contractual Term | 1.58 | 2.58 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Intrinsic Value, Amount Per Share | $0 | ' |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 12 Months Ended | ||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2028 | Dec. 31, 2027 | Dec. 31, 2022 | |
Details | ' | ' | ' | ' | ' |
Current Income Tax Expense (Benefit) | $0 | $0 | ' | ' | ' |
Deferred Federal Income Tax Expense (Benefit) | 127,592 | 367,562 | ' | ' | ' |
Deferred State and Local Income Tax Expense (Benefit) | 15,852 | 45,665 | ' | ' | ' |
Income Tax Expense (Benefit), Continuing Operations | 143,444 | 413,227 | ' | ' | ' |
Deferred Income Taxes and Other Assets, Current | 61,437 | 69,973 | ' | ' | ' |
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Compensated Absences | 239,528 | 166,115 | ' | ' | ' |
Deferred Tax Asset Net Operating Loss Current | 281,257 | 262,764 | ' | ' | ' |
Deferred Tax Assets, Valuation Allowance, Current | -151,222 | -67,852 | ' | ' | ' |
Deferred tax asset, current | 431,000 | 431,000 | ' | ' | ' |
Deferred Income Taxes and Other Assets, Noncurrent | 364,832 | 364,832 | ' | ' | ' |
Deferred Tax Liabilities, Goodwill | 12,349 | 21,031 | ' | ' | ' |
Operating Loss Carryforwards | 954,932 | 1,281,821 | ' | ' | ' |
Deferred Tax Assets, Valuation Allowance | -393,959 | -597,989 | ' | ' | ' |
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent | 938,154 | 1,069,695 | ' | ' | ' |
Deferred Tax Assets, Net | 1,369,154 | 1,500,695 | ' | ' | ' |
Deferred Tax Assets, Operating Loss Carryforwards | 1,992,343 | ' | ' | ' | ' |
foreign jurisdictions net operating loss carry forwards | 2,086,998 | ' | ' | ' | ' |
Loss Carryforward utilized | 628,000 | ' | ' | ' | ' |
foreign jurisdictions valation allowance | 545,181 | 665,841 | ' | ' | ' |
Valuation Allowances and Reserves, Period Increase (Decrease) | -120,660 | -86,822 | ' | ' | ' |
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration | ' | ' | 669,081 | 138,950 | 1,184,312 |
Effective Income Tax Rate Reconciliation at Federal Statutory Income Tax Rate, Amount | 117,406 | 309,489 | ' | ' | ' |
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Amount | 15,404 | 42,654 | ' | ' | ' |
Permanent Differences | 125,035 | 76,425 | ' | ' | ' |
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential, Amount | 7,040 | 48,442 | ' | ' | ' |
Other, net | -781 | 23,039 | ' | ' | ' |
Deferred taxes | $143,444 | $413,227 | ' | ' | ' |
Business_Segments_Details
Business Segments (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Details | ' | ' |
Disclosure on Geographic Areas, Revenue from External Customers Attributed to Foreign Countries | $5,786,493 | $5,537,652 |
New Zealand Net Income Loss | 175,998 | 100,408 |
Disclosure on Geographic Areas, Long-Lived Assets in Individual Foreign Countries, Amount | $7,142,040 | $7,379,578 |