Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Mar. 03, 2014 | Jun. 28, 2013 | |
Document and Entity Information [Abstract] | ' | ' | ' |
Entity Registrant Name | 'CTD HOLDINGS INC | ' | ' |
Entity Central Index Key | '0000922247 | ' | ' |
Amendment Flag | 'false | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Entity Well-Known Seasoned Issuer | 'No | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Smaller Reporting Company | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 48,562,355 | ' |
Entity Public Float | ' | ' | $866,281 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
CURRENT ASSETS | ' | ' |
Cash and cash equivalents | $268,516 | $22,839 |
Accounts receivable, net | 99,282 | 65,271 |
Inventory | 241,005 | 205,155 |
Other current assets | 10,056 | 10,945 |
Total current assets | 618,859 | 304,210 |
PROPERTY AND EQUIPMENT, NET | 1,627,254 | 1,608,283 |
OTHER ASSETS | ' | ' |
Property held for sale | 400,000 | 495,456 |
Deferred tax asset | 120,000 | 200,000 |
Deferred costs, net of accumulated amortization of $14,802 and $15,716, respectively | 23,354 | 10,288 |
Total other assets | 543,354 | 705,744 |
TOTAL ASSETS | 2,789,467 | 2,618,237 |
CURRENT LIABILITIES | ' | ' |
Accounts payable and accrued expenses | 142,607 | 83,502 |
Line of credit | ' | 94,487 |
Current portion of long-term debt | 56,318 | 140,797 |
Total current liabilities | 198,925 | 318,786 |
LONG-TERM LIABILITIES | ' | ' |
Long-term debt, less current portion | 795,457 | 750,776 |
STOCKHOLDERS' EQUITY | ' | ' |
Common stock, par value $.0001 per share, 100,000,000 shares authorized, 37,455,882 and 36,889,535 shares issued and outstanding, respectively | 3,745 | 3,688 |
Preferred stock, par value $.0001 per share, 5,000,000 shares authorized; Series A, 1 share issued and outstanding | ' | ' |
Additional paid-in capital | 3,923,049 | 3,881,605 |
Accumulated deficit | -2,131,709 | -2,336,618 |
Total stockholders' equity | 1,795,085 | 1,548,675 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $2,789,467 | $2,618,237 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Balance Sheets [Abstract] | ' | ' |
Accumulated amortization of deferred costs | $14,802 | $15,716 |
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 37,455,882 | 36,889,535 |
Common stock, shares outstanding | 37,455,882 | 36,889,535 |
Preferred stock, par value (in dollars per share) | $0.00 | $0.00 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Series A preferred stock, shares issued | 1 | 1 |
Series A preferred stock, shares outstanding | 1 | 1 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
REVENUES | ' | ' |
Product sales | $1,693,335 | $988,011 |
Drying services | ' | 56,930 |
Total revenues | 1,693,335 | 1,044,941 |
EXPENSES | ' | ' |
Personnel | 364,227 | 319,784 |
Cost of products sold (exclusive of depreciation and amortization, shown separately below) | 426,022 | 139,676 |
Repairs and maintenance | 40,723 | 17,286 |
Professional fees | 142,860 | 144,788 |
Office and other | 132,449 | 95,599 |
Amortization and depreciation | 148,041 | 142,642 |
Freight and shipping | 8,913 | 10,813 |
Loss (gain) on disposal of equipment | -2,000 | 16,863 |
Impairment on assets held for sale | 95,455 | ' |
Total operating expenses | 1,356,690 | 887,451 |
INCOME FROM OPERATIONS | 336,645 | 157,490 |
OTHER INCOME (EXPENSE) | ' | ' |
Investment and other income | 2,129 | 3,510 |
Interest expense | -53,865 | -61,797 |
Total other income (expense) | -51,736 | -58,287 |
INCOME BEFORE INCOME TAXES | 284,909 | 99,203 |
PROVISION FOR INCOME TAXES | 80,000 | 25,000 |
NET INCOME | $204,909 | $74,203 |
NET INCOME PER COMMON SHARE | $0.01 | $0.01 |
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING | 37,165,770 | 36,680,179 |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (USD $) | Total | Common Stock | Additional Paid-In Capital | Accumulated Deficit |
Balance at Dec. 31, 2011 | $1,424,472 | $3,657 | $3,831,636 | ($2,410,821) |
Balance, shares at Dec. 31, 2011 | ' | 36,575,070 | ' | ' |
Sale of common stock | 50,000 | 31 | 49,969 | ' |
Sale of common stock, shares | ' | 314,465 | ' | ' |
Net income | 74,203 | ' | ' | 74,203 |
Balance at Dec. 31, 2012 | 1,548,675 | 3,688 | 3,881,605 | -2,336,618 |
Balance, shares at Dec. 31, 2012 | ' | 36,889,535 | ' | ' |
Stock compensation | 41,501 | 57 | 41,444 | ' |
Stock compensation, shares | ' | 566,347 | ' | ' |
Net income | 204,909 | ' | ' | 204,909 |
Balance at Dec. 31, 2013 | $1,795,085 | $3,745 | $3,923,049 | ($2,131,709) |
Balance, shares at Dec. 31, 2013 | ' | 37,455,882 | ' | ' |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ' | ' |
Net income | $204,909 | $74,203 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 148,041 | 142,642 |
Loss (gain) on disposal of equipment | -2,000 | 16,863 |
Impairment on assets held for sale | 95,455 | ' |
Stock compensation to employees | 40,000 | ' |
Deferred income taxes | 80,000 | 25,000 |
Increase or decrease in: | ' | ' |
Accounts receivable | -34,011 | -18,906 |
Inventory | -35,850 | -63,138 |
Other current assets | 889 | -10,125 |
Accounts payable and accrued expenses | 59,106 | -108,038 |
Total adjustments | 351,631 | -15,702 |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 556,540 | 58,501 |
CASH FLOWS FROM INVESTING ACTIVITIES | ' | ' |
Purchase of property and equipment | -156,922 | -166,172 |
Proceeds from sale of equipment | 2,000 | ' |
NET CASH USED IN INVESTING ACTIVITIES | -154,922 | -166,172 |
CASH FLOWS FROM FINANCING ACTIVITIES | ' | ' |
Proceeds from sale of stock | ' | 50,000 |
Payments on long-term debt | -39,798 | -44,803 |
Loan costs | -21,656 | ' |
Payments on lines of credit | -94,487 | -1,764 |
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | -155,941 | 3,433 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 245,677 | -104,238 |
CASH AND CASH EQUIVALENTS, beginning of period | 22,839 | 127,077 |
CASH AND CASH EQUIVALENTS, end of period | 268,516 | 22,839 |
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES | ' | ' |
Acquisition of equipment with debt | ' | 195,821 |
Common stock awards capitalized as equipment | 1,500 | ' |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ' | ' |
Cash paid for interest | 53,865 | 61,797 |
Cash paid for income taxes | ' | ' |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | |
Dec. 31, 2013 | ||
Summary of Significant Accounting Policies [Abstract] | ' | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: | ' | |
(1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: | ||
The following is a summary of the more significant accounting policies of CTD Holdings, Inc. and subsidiaries (the “Company”) that affect the accompanying consolidated financial statements: | ||
(a) ORGANIZATION AND OPERATIONS––The Company was incorporated in August 1990, as a Florida corporation with operations beginning in July 1992. We are engaged in the marketing and sale of cyclodextrins (“CD’s”) and related products to food, pharmaceutical and other industries. In 2012, we began offering pulse drying services to dry products containing cyclodextrins. | ||
(b) BASIS OF PRESENTATION––The consolidated financial statements include the Company and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated. | ||
(c) CASH AND CASH EQUIVALENTS––Cash and cash equivalents consist of cash and any highly liquid investments with an original maturity of three months or less. | ||
(d) ACCOUNTS RECEIVABLE––Accounts receivable are stated at the amount we expect to collect from outstanding balances. Based on our assessment of the credit history with customers having outstanding balances and current relationships with them, we have concluded that losses on balances outstanding at December 31, 2013 and 2012 will be immaterial. | ||
(e) INVENTORY AND COST OF PRODUCTS SOLD––Inventory consists of cyclodextrin products and chemical complexes purchased for resale recorded at the lower of cost (first-in, first-out) or market. Cost of products sold includes the acquisition cost of the products sold and does not include any allocation of inbound or outbound freight charges, indirect overhead expenses, warehouse and distribution expenses, or depreciation and amortization expense. Inventory includes $137,000 of work-in-process inventory at December 31, 2013. We did not have work-in-process inventory at December 31, 2012. | ||
(f) PROPERTY AND EQUIPMENT––Property and equipment are recorded at cost. Depreciation on property and equipment is computed using primarily the straight-line method over the estimated useful lives of the assets (generally three to five years for computers, software and vehicles, seven to ten years for machinery and furniture, fifteen years for certain land improvements, and forty years for buildings and building improvements). We periodically review our long-lived assets to determine if the carrying value of assets may not be recoverable. If an impairment is identified, we recognize a loss for the difference between the carrying amount and the estimated fair value of the asset. No impairments were identified or recorded in 2013 or 2012. | ||
(g) PROPERTY HELD FOR SALE–– Property held for sale consists of 40 acres of land and buildings located in High Springs, Florida. This property was used for operations and our corporate offices through September 30, 2011, and is currently vacant. Property is classified as held for sale when management’s intent is to sell the property and the applicable accounting criteria are satisfied. This determination requires management to make estimates and assumptions, including assessing the probability that potential sales transactions may or may not occur. Actual results could differ from those assumptions. Upon designation as held for sale, the carrying values of the assets are recorded at the lower of the carrying value or the estimated fair value, less estimated selling costs. Assets held for sale are no longer depreciated. We periodically review our property held for sale to determine if the carrying value of assets may not be recoverable. If we identify impairment, a loss is recognized for the difference between the carrying amount and the estimated market value of the assets. In 2013, we determined the fair value of our High Springs location is less than our carrying value and therefore recorded an impairment loss of $95,455 to adjust the carrying value to $400,000. No impairments were identified or recorded in 2012. | ||
(h) DEFERRED COSTS––Deferred costs consist of primarily of loan costs. Deferred costs are amortized using the straight-line method over their respective estimated useful lives, which approximates the effective interest method. | ||
(i) REVENUE RECOGNITION––We recognize revenue from product sales and drying services rendered when the following four revenue recognition criteria are met: persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the selling price is fixed or determinable, and collectability is reasonably assured. Product sales and shipping revenues, net of any discounts or return allowances, are recorded when the products are shipped and title passes to customers. Sales to customers are made pursuant to a sales contract that provides for transfer of both title and risk of loss upon our delivery to the carrier. Return allowances, which reduce product revenue, have been historically infrequent, and are recorded when they become known. Amounts received in advance are deferred and recognized as revenue when all four revenue recognition criteria have been met. | ||
(j) SHIPPING AND HANDLING FEES––Shipping and handling fees, if billed to customers, are included in product sales. Shipping and handling costs associated with inbound and outbound freight are expensed as incurred and included in freight and shipping expense. | ||
(k) ADVERTISING––Advertising costs are charged to operations when incurred. We incurred no advertising expense in 2013 and approximately $2,900 in 2012. | ||
(l) INCOME TAXES––Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective income tax bases. Deferred tax assets and liabilities are measured using enacted rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. | ||
(m) NET INCOME PER COMMON SHARE––Net income (loss) per common share is computed using a simple weighted average of common shares outstanding during the periods presented. | ||
(n) STOCK BASED COMPENSATION––The Company periodically awards stock to employees. For stock issued under annual employment contracts, an expense is recognized equal to the fair value of the stock determined using the average stock closing trading price for the month multiplied by number of shares awarded for that month, less a 20% discount if the stock is restricted for at least six months. The Company periodically awards stock bonuses to employees. The Company records an expense equal to the fair value of the stock at the closing trading price of the stock on the award date, less a 20% discount if the stock is restricted for at least six months. The Company periodically issues stock to consultants. The Company records an expense equal to the fair value of the stock at the closing trading price of the stock on the day awarded, less a 20% discount if the stock is restricted for at least six months. | ||
(o) FAIR VALUE MEASUREMENTS AND DISCLOSURES–The Fair Value Measurements and Disclosures topic of the Accounting Standards Codification (“ASC”) requires companies to determine fair value based on the price that would be received to sell the asset or paid to transfer the liability to a market participant. The Fair Value Measurements and Disclosures topic emphasizes that fair value is a market-based measurement, not an entity-specific measurement. | ||
The guidance requires that assets and liabilities carried at fair value be classified and disclosed in one of the following categories: | ||
● | Level 1: Quoted market prices in active markets for identical assets or liabilities. | |
● | Level 2: Observable market based inputs or unobservable inputs that are corroborated by market data. | |
● | Level 3: Unobservable inputs that are not corroborated by market data. | |
We have no assets or liabilities that are required to have their fair value measured on a recurring basis at December 31, 2013 or 2012. Long-lived assets are measured at fair value on a non-recurring basis and are subject to fair value adjustments when there is evidence of impairment. As mentioned previously, we recorded an impairment of $95,455 on property held for sale. The impairment was determined based on actual transactions of similar property, a Level 2 input. | ||
For short-term classes of our financial instruments which are not reported at fair value, the carrying amounts approximate fair value due to their short-term nature. The fair value of our long-term debt is estimated based on the present value of the underlying cash flows discounted at current rates offered the Company for similar debt. At December 31, 2013 and 2012, the carrying value of long-term debt approximated fair value. | ||
(q) USE OF ESTIMATES––The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Although management bases its estimates on historical experience and assumptions that are believed to be reasonable under the circumstances, actual results could significantly differ from these estimates. |
Major_Customers_and_Suppliers
Major Customers and Suppliers | 12 Months Ended |
Dec. 31, 2013 | |
Major Customers and Suppliers [Abstract] | ' |
MAJOR CUSTOMERS AND SUPPLIERS: | ' |
(2) MAJOR CUSTOMERS AND SUPPLIERS: | |
In 2013, two major customers accounted for 60% of total revenues. In 2012, four major customers accounted for 56% of total revenues. | |
Substantially all inventory purchases were from three vendors in 2013 and 2012. | |
We have two sources for our Aquaplex® products. However, we have manufactured these products in the past and could do so again, if necessary. There are multiple sources for our Trappsol® products. |
Concentrations_of_Credit_Risk
Concentrations of Credit Risk | 12 Months Ended |
Dec. 31, 2013 | |
Concentrations of Credit Risk [Abstract] | ' |
CONCENTRATIONS OF CREDIT RISK: | ' |
(3) CONCENTRATIONS OF CREDIT RISK: | |
Significant concentrations of credit risk for all financial instruments owned by the Company are as follows: | |
(a) DEMAND AND CERTIFICATE OF DEPOSITS––We maintain bank accounts in Federal credit unions and other financial institutions, which are insured up to the Federal Deposit Insurance Corporation limits. | |
(b) ACCOUNTS RECEIVABLE––Our accounts receivable consist of amounts due primarily from chemical supply and pharmaceutical companies located primarily in the United States and Hungary. Four customers accounted for 84% of the accounts receivable balance at December 31, 2013. Three customers accounted for 71% of the accounts receivable balance at December 31, 2012. We have no policy requiring collateral or other security to support our accounts receivable. |
Property_and_Equipment
Property and Equipment | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Property and Equipment [Abstract] | ' | ||||||||
PROPERTY AND EQUIPMENT: | ' | ||||||||
4) PROPERTY AND EQUIPMENT: | |||||||||
Property and equipment consists of the following as of December 31: | |||||||||
2013 | 2012 | ||||||||
Land | $ | 85,781 | $ | 85,781 | |||||
Building and improvements | 448,398 | 416,679 | |||||||
Machinery and equipment | 1,292,220 | 1,275,920 | |||||||
Office Furniture and equipment | 42,504 | 52,318 | |||||||
1,868,903 | 1,830,698 | ||||||||
Less: accumulated depreciation | 309,704 | 222,415 | |||||||
1,559,199 | 1,608,283 | ||||||||
Equipment not in service | 68,055 | - | |||||||
Property and equipment, net | $ | 1,627,254 | $ | 1,608,283 | |||||
Debt
Debt | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Debt [Abstract] | ' | ||||
DEBT: | ' | ||||
(5) DEBT: | |||||
We owed $571,227 and $412,952, at December 31, 2013 and 2012, respectively, on a mortgage note payable, collateralized by land and a building we acquired in September 2010. We refinanced our mortgage in July 2013. Monthly payments of $3,506, including principal and interest at 3.99%, are due, with a final balloon payment of approximately $350,000 due in July 2023. The note is secured by a mortgage on our Alachua property. The note has a prepayment penalty that starts at 5% within the first year and decreases 1% annually thereafter. There is no prepayment penalty if the loan is repaid with cash on hand. The loan has a covenant requiring our ratio of EBITDA to interest expense and prior period current maturities of long-term debt to not be less than 1.3. | |||||
We owed $280,548 and $300,716 at December 31, 2013 and 2012, respectively, under an equipment loan related to the installation of the pulse dryer and related building renovations. We refinanced our equipment note in July 2013, in conjunction with our mortgage refinancing. Monthly payments of $4,051, including principal and interest at 3.99%, are due beginning August 2013 through and including July 2020. The note is collateralized by all of our equipment. The mortgage on our High Springs property was released in connection with the refinancing. There is a prepayment penalty of 2% of the outstanding balance if we refinance the loan with another financial institution within five years. There is no prepayment penalty if the loan is repaid with cash on hand. | |||||
We also owed $177,905 under notes payable to two vendors at December 31, 2012. These vendor loans were refinanced into our mortgage in July 2013. | |||||
Long-term debt obligations for the next five years and thereafter are as follows: | |||||
Year Ending | Year | ||||
December 31, | |||||
2014 | $ | 56,318 | |||
2015 | 59,941 | ||||
2016 | 62,411 | ||||
2017 | 64,982 | ||||
2018 | 67,658 | ||||
Thereafter | 540,465 | ||||
$ | 851,775 | ||||
In July 2013, we refinanced our $100,000 line of credit, with interest due monthly at prime plus 1.8%, with a minimum rate of 4.75% (5.05% at December 31, 2013), due in full July 2014, unless further extended. The line of credit is collateralized by our inventory, accounts receivable, equipment, general intangibles and fixtures. The credit line is also cross collateralized with our mortgage and equipment loans. There was no balance outstanding at December 31, 2013. We owed $94,487 on the line of credit as of December 31, 2012. |
Stock_Transactions
Stock Transactions | 12 Months Ended |
Dec. 31, 2013 | |
Stock Transactions and Prefered Stock [Abstract] | ' |
STOCK TRANSACTIONS: | ' |
(6) STOCK TRANSACTIONS: | |
See Note 10 SUBSEQUENT EVENTS. | |
In August 2013, the Company issued 10,791 shares of common stock to a construction subcontractor for work performed and capitalized $1,500 as a building improvement. | |
In July 2013, the Company awarded 555,556 shares of common stock as bonuses to officers and employees and recorded an expense of $40,000. | |
In September 2012, the Company received $50,000 for 314,465 shares of common stock and warrants to purchase an additional 314,465 of common stock at $0.25 per share. |
Preferred_Stock
Preferred Stock | 12 Months Ended |
Dec. 31, 2013 | |
Stock Transactions and Prefered Stock [Abstract] | ' |
PREFERRED STOCK: | ' |
(7) PREFERRED STOCK: | |
See Note 10 SUBSEQUENT EVENTS. | |
In 2004, we amended our Articles of Incorporation authorizing a class of “blank check” preferred stock consisting of 5,000,000 shares and created a Series A Preferred Stock consisting of one share and set forth its designations, rights and preferences. The more significant right is the Series A share votes together with the holders of the Common Stock on all matters submitted to a vote of company holders of Common Stock, with the share of Series A Preferred Stock being entitled to one vote more than one-half of all votes entitled to be cast by all holders of voting capital stock of the company on any matter submitted to common shareholders so as to ensure that the votes entitled to be cast by the holder of the Series A Preferred Stock are equal to at least a majority of the total of all votes entitled to be cast by all shareholders. Each share of Series A Preferred Stock has a liquidation preference of $.0001. In 2004, we issued one share of the Series A Preferred Stock to our majority common shareholder in exchange for 1,029,412 shares of Common Stock held by the majority common shareholder, which were surrendered to the Company and cancelled. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Income Taxes [Abstract] | ' | ||||||||
INCOME TAXES: | ' | ||||||||
(8) INCOME TAXES: | |||||||||
Differences between accounting rules and tax laws cause differences between the basis of certain assets and liabilities for financial reporting purposes and tax purposes. The tax effect of these differences, to the extent they are temporary, is recorded as deferred tax assets and liabilities. Income tax expense is the tax payable or refundable for the period plus or minus the change during the period in deferred assets and liabilities. Temporary differences which give rise to deferred tax assets and liabilities consist of net operating loss carryforwards, stock compensation expense not deducted for tax purposes until trading restrictions are removed and declared as compensation by the recipient, and accelerated depreciation methods for income tax purposes. | |||||||||
If all of our net operating loss carryforwards and temporary deductible differences were used, we would realize a net deferred tax asset of approximately $141,000 based upon expected income tax rates. Under ASC 740, deferred tax assets must be reduced by a valuation allowance if it is likely that all or a portion of it will not be realized. We have determined it is more likely than not that we will realize our temporary deductible differences and at least some of our net operating loss carryforwards prior to their expiration, and we have recorded a deferred tax asset for the amount expected to be realized. We have provided a valuation allowance on the portion of the estimated deferred tax asset not expected to be fully realized before it expires. Although we have incurred financial reporting net losses for six of the prior nine years, we have also recognized taxable income for five of the prior nine years utilizing a total of $485,000 of our net operating losses. We believe we will continue to realize taxable income in greater amounts in future periods sufficient to utilize a portion of our tax loss carryforwards before they expire. At December 31, 2013, we would need to generate approximately $480,000 of taxable income to fully utilize our $120,000 net deferred tax asset. | |||||||||
Positive evidence we evaluated in the order of significance and weighting in our evaluation includes the amount of net operating loss carryforward utilized against current income tax liabilities in four of the prior eight years, the trend of increased revenues from 2006 through 2013 that is expected to continue at existing or improved margins, and the length of time the net operating loss carryforwards are available before they expire. Negative evidence we considered in the order of significance and weighting in our evaluation include the timing of expiration of the net operating loss carryforwards prior to being utilized, increased depreciation from our pulse dryer, unpredictability of future sales and profitability, the unknown future operating results from our pulse drying facility, competition from others, and new government regulations. We determined greatest weight should be given to our prior use of net operating losses in recent years and our expected future sales and taxable income from operations in our evaluation. We expect our future sales and taxable income to continue at current levels as a minimum and to increase in future years. Our sales growth is due to increased interest and sales of our product THPB since 2011, which is expected to continue into 2014 and future years. We also expect our new pulse dryer and ultra pure filtration system, and the interest in THPB, to increase the interest and sales of our other products. | |||||||||
We calculated our deferred tax asset using the temporary deductible timing differences plus the net operating loss carryforward multiplied by our expected effective income tax rate. Our taxable operating income is expected to be of the same character as our temporary deductible timing differences and net operating loss carryforwards. We estimated our future taxable income based on historical results and expected future trends in sales and margins. We estimated the timing of deducting our temporary deductible differences. We estimated the amount of our net operating loss carryforward we would be able to utilize prior to expiration. The difference between our gross deferred tax asset and the amount expected to be utilized was recorded as a valuation allowance. We remeasure our valuation allowance each quarter based on changes in our current and expected future sales and margins, and changes in the other factors of both positive and negative evidence. | |||||||||
We have available at December 31, 2013, unused net operating loss carryforwards totaling approximately $882,000 that may be applied against future taxable income. If not used, the net operating loss carryforwards will expire as follows: | |||||||||
Year Ending | Amount | ||||||||
December 31, | |||||||||
2017 | $ | 177,000 | |||||||
2020 | 280,000 | ||||||||
2021 | 71,000 | ||||||||
2024 | 66,000 | ||||||||
2028 | 7,000 | ||||||||
2030 | 160,000 | ||||||||
2031 | 73,000 | ||||||||
2032 | 48,000 | ||||||||
Total | $ | 882,000 | |||||||
For 2013, we recognized a $80,000 provision for income taxes. Our valuation allowance percentage is 15% at December 31, 2013. | |||||||||
For 2012, we recognized a $25,000 provision for income taxes and we decreased our deferred tax valuation allowance based on our overall evaluation of our future profitability and ability to utilize our net deferred tax assets. Our valuation allowance percentage is 10% at December 31, 2012. | |||||||||
Because of the inherent uncertainties in estimating the valuation allowance on the deferred tax asset, it is at least reasonably possible that our estimated deferred tax asset will change in the near term and be material to the financial statements. | |||||||||
The components of our provision for income taxes are as follows for the years ended December 31: | |||||||||
2013 | 2012 | ||||||||
Current income tax benefit (expense) | $ | - | $ | - | |||||
Tax benefit (expense) of temporary differences | (80,000 | ) | (101,000 | ) | |||||
Decrease (increase) in valuation allowance | - | 76,000 | |||||||
Total net tax benefit (expense) | $ | (80,000 | ) | $ | (25,000 | ) | |||
Significant components of our deferred Federal income taxes were as follows: | |||||||||
2013 | 2012 | ||||||||
Deferred tax assets: | |||||||||
Net operating loss carryforwards | $ | 247,000 | $ | 268,000 | |||||
Less valuation allowance | (21,000 | ) | (21,000 | ) | |||||
Deferred tax assets, net of valuation | 226,000 | 247,000 | |||||||
Deferred tax liabilities: | |||||||||
Depreciation expense | (79,000 | ) | (47,000 | ) | |||||
Impairment allowance – assets held for sale | (27,000 | ) | - | ||||||
Deferred tax liabilities | (106,000 | ) | (47,000 | ) | |||||
Net tax assets | $ | 120,000 | $ | 200,000 | |||||
The differences between the effective income tax rate reflected in the benefit (provision) for income taxes and the amounts, which would be determined by applying statutory income tax rate of 28% is summarized as follows: | |||||||||
2013 | 2012 | ||||||||
Tax benefit (expense) at Federal statutory rate | $ | (80,000 | ) | $ | (28,000 | ) | |||
Effect of State taxes | (11,000 | ) | (5,000 | ) | |||||
Effect of surtax exemption | 6,000 | 8,000 | |||||||
Other | 5,000 | - | |||||||
Total tax benefit (provision) | $ | (80,000 | ) | $ | (25,000 | ) | |||
We file income tax returns in the U.S. Federal jurisdiction, and in various state jurisdictions. We are no longer subject to U.S. Federal or state income tax examinations by tax authorities for years before 2010, except for net operating loss carryforwards from periods prior to 2009. | |||||||||
We have reviewed and evaluated the relevant technical merits of each of our tax positions in accordance with accounting principles generally accepted in the United States of America for accounting for uncertainty in income taxes, and determined that there are no uncertain tax positions that would have a material impact on the financial statements of the Company. |
Employee_Benefit_Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2013 | |
Employee Benefit Plan [Abstract] | ' |
EMPLOYEE BENEFIT PLAN: | ' |
(9) EMPLOYEE BENEFIT PLAN: | |
We maintain a 401(k) plan available to all employees who have satisfied certain eligibility requirements. Employee contributions are discretionary. We may match employee contributions and may also make discretionary contributions for all eligible employees based upon their total compensation. For 2013 and 2012, we elected to match the employee’s contribution, not to exceed 4% of compensation. Our 401(k) contribution was $11,745 and $11,023 for 2013 and 2012, respectively. |
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2013 | |
Subsequent Events [Abstract] | ' |
SUBSEQUENT EVENTS: | ' |
(10) SUBSEQUENT EVENTS: | |
On February 19, 2014, the Company entered into a Securities Purchase Agreement with certain investors under which it issued 10,000,000 shares of its common stock, at a purchase price of $0.05 per share, in exchange for $500,000 (the “Private Placement”). | |
In connection with the closing of the Private Placement, the Company’s Chief Executive Officer, C.E. Rick Strattan, converted his share of Series A Preferred Stock into one million shares of the Company’s common stock. The share of Series A Preferred Stock was the only share of Series A Preferred Stock outstanding. Initially issued in 2004 to Mr. Strattan in exchange for the surrender of 1,029,412 shares of common stock then owned by him, the Series A Preferred Stock carried certain voting rights that entitled its holder to cast a number of votes representing a majority of the votes entitled to be cast by all of the Company’s capital stock. It was convertible by its terms into a number of shares of common stock to be agreed mutually by the Company and the holder at the time of conversion. The conversion was effected through a Conversion Agreement, dated as of February 19, 2014, between the Company and Mr. Strattan. The conversion of the Series A Preferred Stock was a condition to the closing of the Private Placement. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |
Dec. 31, 2013 | ||
Summary of Significant Accounting Policies [Abstract] | ' | |
ORGANIZATION AND OPERATIONS | ' | |
(a) ORGANIZATION AND OPERATIONS––The Company was incorporated in August 1990, as a Florida corporation with operations beginning in July 1992. We are engaged in the marketing and sale of cyclodextrins (“CD’s”) and related products to food, pharmaceutical and other industries. In 2012, we began offering pulse drying services to dry products containing cyclodextrins. | ||
BASIS OF PRESENTATION | ' | |
(b) BASIS OF PRESENTATION––The consolidated financial statements include the Company and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated. | ||
CASH AND CASH EQUIVALENTS | ' | |
(c) CASH AND CASH EQUIVALENTS––Cash and cash equivalents consist of cash and any highly liquid investments with an original maturity of three months or less. | ||
ACCOUNTS RECEIVABLE | ' | |
(d) ACCOUNTS RECEIVABLE––Accounts receivable are stated at the amount we expect to collect from outstanding balances. Based on our assessment of the credit history with customers having outstanding balances and current relationships with them, we have concluded that losses on balances outstanding at December 31, 2013 and 2012 will be immaterial. | ||
INVENTORY AND COST OF PRODUCTS SOLD | ' | |
(e) INVENTORY AND COST OF PRODUCTS SOLD––Inventory consists of cyclodextrin products and chemical complexes purchased for resale recorded at the lower of cost (first-in, first-out) or market. Cost of products sold includes the acquisition cost of the products sold and does not include any allocation of inbound or outbound freight charges, indirect overhead expenses, warehouse and distribution expenses, or depreciation and amortization expense. Inventory includes $137,000 of work-in-process inventory at December 31, 2013. We did not have work-in-process inventory at December 31, 2012. | ||
PROPERTY AND EQUIPMENT | ' | |
(f) PROPERTY AND EQUIPMENT––Property and equipment are recorded at cost. Depreciation on property and equipment is computed using primarily the straight-line method over the estimated useful lives of the assets (generally three to five years for computers, software and vehicles, seven to ten years for machinery and furniture, fifteen years for certain land improvements, and forty years for buildings and building improvements). We periodically review our long-lived assets to determine if the carrying value of assets may not be recoverable. If an impairment is identified, we recognize a loss for the difference between the carrying amount and the estimated fair value of the asset. No impairments were identified or recorded in 2013 or 2012. | ||
PROPERTY HELD FOR SALE | ' | |
(g) PROPERTY HELD FOR SALE–– Property held for sale consists of 40 acres of land and buildings located in High Springs, Florida. This property was used for operations and our corporate offices through September 30, 2011, and is currently vacant. Property is classified as held for sale when management’s intent is to sell the property and the applicable accounting criteria are satisfied. This determination requires management to make estimates and assumptions, including assessing the probability that potential sales transactions may or may not occur. Actual results could differ from those assumptions. Upon designation as held for sale, the carrying values of the assets are recorded at the lower of the carrying value or the estimated fair value, less estimated selling costs. Assets held for sale are no longer depreciated. We periodically review our property held for sale to determine if the carrying value of assets may not be recoverable. If we identify impairment, a loss is recognized for the difference between the carrying amount and the estimated market value of the assets. In 2013, we determined the fair value of our High Springs location is less than our carrying value and therefore recorded an impairment loss of $95,455 to adjust the carrying value to $400,000. No impairments were identified or recorded in 2012. | ||
DEFERRED COSTS | ' | |
(h) DEFERRED COSTS––Deferred costs consist of primarily of loan costs. Deferred costs are amortized using the straight-line method over their respective estimated useful lives, which approximates the effective interest method. | ||
REVENUE RECOGNITION | ' | |
(i) REVENUE RECOGNITION––We recognize revenue from product sales and drying services rendered when the following four revenue recognition criteria are met: persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the selling price is fixed or determinable, and collectability is reasonably assured. Product sales and shipping revenues, net of any discounts or return allowances, are recorded when the products are shipped and title passes to customers. Sales to customers are made pursuant to a sales contract that provides for transfer of both title and risk of loss upon our delivery to the carrier. Return allowances, which reduce product revenue, have been historically infrequent, and are recorded when they become known. Amounts received in advance are deferred and recognized as revenue when all four revenue recognition criteria have been met. | ||
SHIPPING AND HANDLING FEES | ' | |
(j) SHIPPING AND HANDLING FEES––Shipping and handling fees, if billed to customers, are included in product sales. Shipping and handling costs associated with inbound and outbound freight are expensed as incurred and included in freight and shipping expense. | ||
ADVERTISING | ' | |
(k) ADVERTISING––Advertising costs are charged to operations when incurred. We incurred no advertising expense in 2013 and approximately $2,900 in 2012. | ||
INCOME TAXES | ' | |
(l) INCOME TAXES––Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective income tax bases. Deferred tax assets and liabilities are measured using enacted rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. | ||
NET INCOME PER COMMON SHARE | ' | |
(m) NET INCOME PER COMMON SHARE––Net income (loss) per common share is computed using a simple weighted average of common shares outstanding during the periods presented. | ||
STOCK BASED COMPENSATION | ' | |
(n) STOCK BASED COMPENSATION––The Company periodically awards stock to employees. For stock issued under annual employment contracts, an expense is recognized equal to the fair value of the stock determined using the average stock closing trading price for the month multiplied by number of shares awarded for that month, less a 20% discount if the stock is restricted for at least six months. The Company periodically awards stock bonuses to employees. The Company records an expense equal to the fair value of the stock at the closing trading price of the stock on the award date, less a 20% discount if the stock is restricted for at least six months. The Company periodically issues stock to consultants. The Company records an expense equal to the fair value of the stock at the closing trading price of the stock on the day awarded, less a 20% discount if the stock is restricted for at least six months. | ||
FAIR VALUE MEASUREMENTS AND DISCLOSURES | ' | |
(o) FAIR VALUE MEASUREMENTS AND DISCLOSURES–The Fair Value Measurements and Disclosures topic of the Accounting Standards Codification (“ASC”) requires companies to determine fair value based on the price that would be received to sell the asset or paid to transfer the liability to a market participant. The Fair Value Measurements and Disclosures topic emphasizes that fair value is a market-based measurement, not an entity-specific measurement. | ||
The guidance requires that assets and liabilities carried at fair value be classified and disclosed in one of the following categories: | ||
● | Level 1: Quoted market prices in active markets for identical assets or liabilities. | |
● | Level 2: Observable market based inputs or unobservable inputs that are corroborated by market data. | |
● | Level 3: Unobservable inputs that are not corroborated by market data. | |
We have no assets or liabilities that are required to have their fair value measured on a recurring basis at December 31, 2013 or 2012. Long-lived assets are measured at fair value on a non-recurring basis and are subject to fair value adjustments when there is evidence of impairment. As mentioned previously, we recorded an impairment of $95,455 on property held for sale. The impairment was determined based on actual transactions of similar property, a Level 2 input. | ||
For short-term classes of our financial instruments which are not reported at fair value, the carrying amounts approximate fair value due to their short-term nature. The fair value of our long-term debt is estimated based on the present value of the underlying cash flows discounted at current rates offered the Company for similar debt. At December 31, 2013 and 2012, the carrying value of long-term debt approximated fair value. | ||
USE OF ESTIMATES | ' | |
(q) USE OF ESTIMATES––The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Although management bases its estimates on historical experience and assumptions that are believed to be reasonable under the circumstances, actual results could significantly differ from these estimates. |
Property_and_Equipment_Tables
Property and Equipment (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Property and Equipment [Abstract] | ' | ||||||||
Summary of property and equipment | ' | ||||||||
2013 | 2012 | ||||||||
Land | $ | 85,781 | $ | 85,781 | |||||
Building and improvements | 448,398 | 416,679 | |||||||
Machinery and equipment | 1,292,220 | 1,275,920 | |||||||
Office Furniture and equipment | 42,504 | 52,318 | |||||||
1,868,903 | 1,830,698 | ||||||||
Less: accumulated depreciation | 309,704 | 222,415 | |||||||
1,559,199 | 1,608,283 | ||||||||
Equipment not in service | 68,055 | - | |||||||
Property and equipment, net | $ | 1,627,254 | $ | 1,608,283 | |||||
Debt_Tables
Debt (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Debt [Abstract] | ' | ||||
Summary of long-term debt obligations | ' | ||||
Year Ending | Year | ||||
December 31, | |||||
2014 | $ | 56,318 | |||
2015 | 59,941 | ||||
2016 | 62,411 | ||||
2017 | 64,982 | ||||
2018 | 67,658 | ||||
Thereafter | 540,465 | ||||
$ | 851,775 |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Income Taxes [Abstract] | ' | ||||||||
Summary of net operating loss carryforwards expire data | ' | ||||||||
Year Ending | Amount | ||||||||
December 31, | |||||||||
2017 | $ | 177,000 | |||||||
2020 | 280,000 | ||||||||
2021 | 71,000 | ||||||||
2024 | 66,000 | ||||||||
2028 | 7,000 | ||||||||
2030 | 160,000 | ||||||||
2031 | 73,000 | ||||||||
2032 | 48,000 | ||||||||
Total | $ | 882,000 | |||||||
Summary of components of provision for income taxes | ' | ||||||||
2013 | 2012 | ||||||||
Current income tax benefit (expense) | $ | - | $ | - | |||||
Tax benefit (expense) of temporary differences | (80,000 | ) | (101,000 | ) | |||||
Decrease (increase) in valuation allowance | - | 76,000 | |||||||
Total net tax benefit (expense) | $ | (80,000 | ) | $ | (25,000 | ) | |||
Summary of significant components of deferred Federal income taxes | ' | ||||||||
2013 | 2012 | ||||||||
Deferred tax assets: | |||||||||
Net operating loss carryforwards | $ | 247,000 | $ | 268,000 | |||||
Less valuation allowance | (21,000 | ) | (21,000 | ) | |||||
Deferred tax assets, net of valuation | 226,000 | 247,000 | |||||||
Deferred tax liabilities: | |||||||||
Depreciation expense | (79,000 | ) | (47,000 | ) | |||||
Impairment allowance – assets held for sale | (27,000 | ) | - | ||||||
Deferred tax liabilities | (106,000 | ) | (47,000 | ) | |||||
Net tax assets | $ | 120,000 | $ | 200,000 | |||||
Summary of differences between effective income tax rate reflected in benefit (provision) for income taxes amounts | ' | ||||||||
2013 | 2012 | ||||||||
Tax benefit (expense) at Federal statutory rate | $ | (80,000 | ) | $ | (28,000 | ) | |||
Effect of State taxes | (11,000 | ) | (5,000 | ) | |||||
Effect of surtax exemption | 6,000 | 8,000 | |||||||
Other | 5,000 | - | |||||||
Total tax benefit (provision) | $ | (80,000 | ) | $ | (25,000 | ) | |||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
acre | ||
Summary of Significant Accounting Policies (Textual) | ' | ' |
Property and equipment impairment charge | ' | ' |
Area of land and buildings | 40 | ' |
Property held for sale Impairments charge | 95,455 | ' |
Property held for sale Impairments charge, carrying value | 400,000 | ' |
Advertising expense | ' | 2,900 |
Percentage of discount if stock restricted for at list six months | ' | 'Less a 20 |
Work-in-process inventory | $137,000 | ' |
Computers Software and Vehicles [Member] | ' | ' |
Summary of Significant Accounting Policies (Textual) | ' | ' |
Estimated useful lives of the assets | 'Three to five years | ' |
Machinery and Furniture [Member] | ' | ' |
Summary of Significant Accounting Policies (Textual) | ' | ' |
Estimated useful lives of the assets | 'Seven to ten years | ' |
Land Improvements [Member] | ' | ' |
Summary of Significant Accounting Policies (Textual) | ' | ' |
Estimated useful lives of the assets | 'Fifteen years | ' |
Building and Building Improvements [Member] | ' | ' |
Summary of Significant Accounting Policies (Textual) | ' | ' |
Estimated useful lives of the assets | 'Forty years | ' |
Major_Customers_and_Suppliers_
Major Customers and Suppliers (Details) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Vendors | Customer | |
Sources | ||
Customer | ||
Major Customers and Suppliers (Textual) | ' | ' |
Number of major customers accounted for total sales | 2 | 4 |
Percentage of revenue accounted by major customer | 60.00% | 56.00% |
Number of major vendors, purchased all inventory | 3 | 3 |
Number of sources for manufacturing inventory | 2 | ' |
Concentrations_of_Credit_Risk_
Concentrations of Credit Risk (Details) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Concentrations of credit risk (Textual) | ' | ' |
Percentage of revenue accounted by major customer | 60.00% | 56.00% |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | ' | ' |
Concentrations of credit risk (Textual) | ' | ' |
Number of major customers accounted for accounts receivable | 4 | 3 |
Percentage of revenue accounted by major customer | 84.00% | 71.00% |
Property_and_Equipment_Details
Property and Equipment (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Summary of property and equipment | ' | ' |
Property, Plant and Equipment, Gross | $1,868,903 | $1,830,698 |
Less: accumulated depreciation | 309,704 | 222,415 |
Property plant and equipment excluding accumulated depreciation, gross | 1,559,199 | 1,608,283 |
Equipment not in service | 68,055 | ' |
Property and equipment, net | 1,627,254 | 1,608,283 |
Land [Member] | ' | ' |
Summary of property and equipment | ' | ' |
Property, Plant and Equipment, Gross | 85,781 | 85,781 |
Building and improvements [Member] | ' | ' |
Summary of property and equipment | ' | ' |
Property, Plant and Equipment, Gross | 448,398 | 416,679 |
Machinery and Equipment [Member] | ' | ' |
Summary of property and equipment | ' | ' |
Property, Plant and Equipment, Gross | 1,292,220 | 1,275,920 |
Office Furniture and equipment [Member] | ' | ' |
Summary of property and equipment | ' | ' |
Property, Plant and Equipment, Gross | $42,504 | $52,318 |
Debt_Details
Debt (Details) (USD $) | Dec. 31, 2013 |
Summary of Long -term debt obligations | ' |
2014 | $56,318 |
2015 | 59,941 |
2016 | 62,411 |
2017 | 64,982 |
2018 | 67,658 |
Thereafter | 540,465 |
Total Long-term debt obligations | $851,775 |
Debt_Details_Textual
Debt (Details Textual) (USD $) | 12 Months Ended | 12 Months Ended | 12 Months Ended | |||||
Dec. 31, 2013 | Jul. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |
Notes Payable [Member] | Land and building acquired [Member] | Land and building acquired [Member] | Building and improvements [Member] | Building and improvements [Member] | ||||
Vendors | ||||||||
Debt (Textual) | ' | ' | ' | ' | ' | ' | ' | ' |
Note payable amount | ' | ' | ' | $177,905 | $571,227 | $412,952 | $280,548 | $300,716 |
Debt Instrument, Payment Terms | ' | ' | ' | ' | 'Monthly payments of $3,506, including principal and interest at 3.99%, are due, with a final balloon payment of approximately $350,000 due in July 2023. | ' | ' | ' |
Maturity date of notes | ' | ' | ' | ' | 31-Jul-23 | ' | 31-Jul-20 | ' |
Accrued interest rate per year | ' | ' | ' | ' | 3.99% | ' | 3.99% | ' |
Monthly installment payment, including principal and interests | ' | ' | ' | ' | 3,506 | ' | 4,051 | ' |
Debt Instrument, Date of First Required Payment | ' | ' | ' | ' | ' | ' | 31-Aug-13 | ' |
Payment of Final balloon (principal and accrued interest) | ' | ' | ' | ' | 350,000 | ' | ' | ' |
Debt service coverage ratio | '1.3 | ' | ' | ' | ' | ' | ' | ' |
Description of prepayment penalty | ' | ' | ' | ' | 'Penalty that starts at 5% within the first year and decreases 1% annually thereafter. | ' | 'Penalty of 2% of the outstanding balance if we refinance the loan with another financial institution within five years. | ' |
Notes Payable to number of vendors | ' | ' | ' | 2 | ' | ' | ' | ' |
Line of credit, amount | ' | 100,000 | ' | ' | ' | ' | ' | ' |
Line of credit, interest due in addition to prime rate | ' | 1.80% | ' | ' | ' | ' | ' | ' |
Line of credit facility minimum interest rate | 5.05% | 4.75% | ' | ' | ' | ' | ' | ' |
Amount related to line of credit owed by Company | ' | ' | $94,487 | ' | ' | ' | ' | ' |
Stock_Transactions_Details
Stock Transactions (Details) (USD $) | 1 Months Ended | 12 Months Ended | |||
Aug. 31, 2013 | Jul. 31, 2013 | Sep. 30, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |
Stock Transactions (Textual) [Abstarct] | ' | ' | ' | ' | ' |
Number of shares granted | 10,791 | 555,556 | ' | ' | ' |
Capitalized expense towards building improvement | $1,500 | ' | ' | ' | ' |
Proceeds from common stock issued | ' | ' | 50,000 | ' | ' |
Shares issued under stock transaction | ' | ' | 314,465 | ' | ' |
Warrants received to purchase additional common stock | ' | ' | 314,465 | ' | ' |
Share price | ' | ' | $0.25 | ' | ' |
Stock compensation to employees | ' | $40,000 | ' | $40,000 | ' |
Preferred_Stock_Details
Preferred Stock (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2004 |
Preferred Class A [Member] | |||
Preferred Stock (Textual) | ' | ' | ' |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 | 5,000,000 |
Preferred stock liquidation preference | ' | ' | $0.00 |
Preferred stock, voting rights description | ' | ' | 'Series A Preferred Stock being entitled to one vote more than one-half of all votes entitled to be cast by all holders of voting capital stock of the company on any matter submitted to common shareholders so as to ensure that the votes entitled to be cast by the holder of the Series A Preferred Stock are equal to at least a majority of the total of all votes entitled to be cast by all shareholders. |
Number of preferred stock issued in exchange of common stock | ' | ' | 1 |
Number of common stock converted into preference stock | ' | ' | 1,029,412 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | Dec. 31, 2013 |
Summary of net operating loss carryforwards expire data | ' |
Total | $882,000 |
2017 [Member] | ' |
Summary of net operating loss carryforwards expire data | ' |
Total | 177,000 |
2020 [Member] | ' |
Summary of net operating loss carryforwards expire data | ' |
Total | 280,000 |
2021 [Member] | ' |
Summary of net operating loss carryforwards expire data | ' |
Total | 71,000 |
2024 [Member] | ' |
Summary of net operating loss carryforwards expire data | ' |
Total | 66,000 |
2028 [Member] | ' |
Summary of net operating loss carryforwards expire data | ' |
Total | 7,000 |
2030 [Member] | ' |
Summary of net operating loss carryforwards expire data | ' |
Total | 160,000 |
2031 [Member] | ' |
Summary of net operating loss carryforwards expire data | ' |
Total | 73,000 |
2032 [Member] | ' |
Summary of net operating loss carryforwards expire data | ' |
Total | $48,000 |
Income_Taxes_Details_1
Income Taxes (Details 1) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Summary of components of provision for income taxes | ' | ' |
Current income tax benefit (expense) | ' | ' |
Tax benefit (expense) of temporary differences | -80,000 | -101,000 |
Decrease (increase) in valuation allowance | ' | 76,000 |
Total net tax benefit (expense) | $80,000 | $25,000 |
Income_Taxes_Details_2
Income Taxes (Details 2) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Deferred tax assets: | ' | ' |
Net operating loss carryforwards | $247,000 | $268,000 |
Less valuation allowance | -21,000 | -21,000 |
Deferred tax assets, net of valuation | 226,000 | 247,000 |
Deferred tax liabilities: | ' | ' |
Depreciation expense | -79,000 | -47,000 |
Impairment allowance - assets held for sale | -27,000 | ' |
Deferred tax liabilities | -106,000 | -47,000 |
Net tax assets | $120,000 | $200,000 |
Income_Taxes_Details_3
Income Taxes (Details 3) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Summary of differences between effective income tax rate reflected in benefit (provision) for income taxes amounts | ' | ' |
Tax benefit (expense) at Federal statutory rate | ($80,000) | ($28,000) |
Effect of State taxes | -11,000 | -5,000 |
Effect of surtax exemption | 6,000 | 8,000 |
Other | 5,000 | ' |
Total tax benefit (provision) | $80,000 | $25,000 |
Income_Taxes_Details_Textual
Income Taxes (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Income Taxes (Textual) | ' | ' |
Net deferred tax asset based upon expected income tax rates | $141,000 | ' |
Description of utilization of operating losses carryforwards | 'Although we have incurred financial reporting net losses for six of the prior nine years, we have also recognized taxable income for five of the prior nine years utilizing a total of $485,000 of our net operating losses. | ' |
Operating loss carryforwards utilized till date | 485,000 | ' |
Net tax assets | 120,000 | 200,000 |
Taxable income need to generate to fully utilize net deferred tax asset | 480,000 | ' |
Operating loss carryforwards | 882,000 | ' |
Total tax benefit (provision) | $80,000 | $25,000 |
Valuation allowance percentage | 15.00% | 10.00% |
Statutory income tax rate | 28.00% | ' |
Income tax examination authorities, Description | 'We are no longer subject to U.S. Federal or state income tax examinations by tax authorities for years before 2010, except for net operating loss carryforwards from periods prior to 2009. | ' |
Employee_Benefit_Plan_Details
Employee Benefit Plan (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Employee Benefit Plan (Textual) | ' | ' |
Maximum percentage of employee's contribution | 4.00% | 4.00% |
Employers contribution | $11,745 | $11,023 |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | 1 Months Ended | 0 Months Ended | |
Sep. 30, 2012 | Dec. 31, 2004 | Feb. 19, 2014 | |
Preferred Class A [Member] | Subsequent Event [Member] | ||
Private Placement [Member] | |||
Subsequent Event [Line Items] | ' | ' | ' |
Shares issued under stock transaction | 314,465 | ' | 10,000,000 |
Share Price | $0.25 | ' | $0.05 |
Proceeds from Issuance or Sale of Equity | $50,000 | ' | $500,000 |
Number of common stock converted into preference stock | ' | 1,029,412 | ' |