Document Entity Information
Document Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | May. 05, 2016 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | SMITH MIDLAND CORP | |
Entity Central Index Key | 924,719 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 4,878,628 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Current assets | ||
Cash and cash equivalents | $ 423,015 | $ 1,735,621 |
Investment securities, available-for-sale, at fair value | 1,056,095 | 1,041,790 |
Accounts receivable, net | ||
Trade - billed (less allowance for doubtful accounts of $349,435 and $375,919) | 7,288,517 | 6,795,215 |
Trade - unbilled | 738,544 | 197,363 |
Inventories | ||
Raw materials | 882,802 | 724,143 |
Finished goods | 1,728,440 | 1,770,141 |
Prepaid expenses and other assets | 354,418 | 194,429 |
Refundable income taxes | 523,690 | 383,820 |
Deferred taxes | 701,000 | 665,000 |
Total current assets | 13,696,521 | 13,507,522 |
Property and equipment, net | 5,858,944 | 5,073,867 |
Other assets | 202,913 | 268,721 |
Total assets | 19,758,378 | 18,850,110 |
Current liabilities | ||
Accounts payable - trade | 1,869,794 | 1,743,945 |
Accrued expenses and other liabilities | 1,358,380 | 974,785 |
Accrued compensation | 709,642 | 449,723 |
Income taxes payable | 494,095 | 435,717 |
Customer deposits | 675,820 | 923,943 |
Total current liabilities | 5,107,731 | 4,528,113 |
Notes payable - less current maturities | 2,390,769 | 2,076,675 |
Deferred tax liability | 956,000 | 855,000 |
Total liabilities | 8,454,500 | 7,459,788 |
Commitments and contingencies | 0 | |
Stockholders’ equity | ||
Preferred stock, $.01 par value; authorized 1,000,000 shares, none issued and outstanding | 0 | 0 |
Common stock, $.01 par value; authorized 8,000,000 shares; 4,919,548 issued and outstanding | 49,195 | 49,195 |
Additional paid-in capital | 5,110,398 | 5,110,398 |
Accumulated other comprehensive loss, net | (6,025) | (9,357) |
Retained earnings | 6,252,610 | 6,342,386 |
Stockholders' Equity before Treasury Stock | 11,406,178 | 11,492,622 |
Treasury stock, at cost, 40,920 shares | (102,300) | (102,300) |
Total stockholders’ equity | 11,303,878 | 11,390,322 |
Total liabilities and stockholders' equity | $ 19,758,378 | $ 18,850,110 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Current Assets: | ||
Allowance for doubtful accounts | $ 296,276 | $ 356,253 |
Stockholders' equity | ||
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 8,000,000 | 8,000,000 |
Common stock, shares issued | 4,893,548 | 4,881,548 |
Common stock, shares outstanding | 4,893,548 | 4,881,548 |
Treasury stock, at cost | 40,920 | 40,920 |
Preferred stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares outstanding | 0 | 0 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Revenue | ||
Products sales and leasing | $ 6,233,706 | $ 3,268,737 |
Shipping and installation revenue | 1,492,663 | 599,253 |
Royalties | 328,715 | 332,135 |
Total revenue | 8,055,084 | 4,200,125 |
Cost of goods sold | 6,777,091 | 3,670,133 |
Gross profit | 1,277,993 | 529,992 |
Operating expenses | ||
General and administrative expenses | 833,811 | 874,707 |
Selling expenses | 590,806 | 504,014 |
Total operating expenses | 1,424,617 | 1,378,721 |
Gain on sale of assets | 5,868 | 5,254 |
Other income | 6,893 | 10,607 |
Operating income (loss) | (133,863) | (832,868) |
Interest income (expense) | ||
Interest expense | (28,149) | (26,993) |
Interest income | 9,235 | 492 |
Total other expense | (18,914) | (26,501) |
Loss before income tax benefit | (152,777) | (859,369) |
Income tax expense (benefit) | 63,000 | 335,000 |
Net income (loss) | $ (89,777) | $ (524,369) |
Basic and Diluted earnings (loss) per share (in dollars per share) | $ (0.02) | $ (0.11) |
Weighted average number of common shares outstanding: | ||
Basic and Diluted (in shares) | 4,919,548 | 4,891,815 |
Condensed Consolidated Stateme5
Condensed Consolidated Statement of Comprehensive Income (Loss) (Unaudited) Statement - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (89,777) | $ (524,369) |
Other comprehensive gain (loss), net of tax: | ||
Net unrealized holding gain (loss) | 3,332 | (5,675) |
Comprehensive loss | $ (86,445) | $ (530,044) |
Condensed Consolidated Stateme6
Condensed Consolidated Statement of Comprehensive Income (Loss) (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | ||
Unrealized gain (loss) on securities arising during period, tax | $ 8 | $ 19 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Cash flows used by operating activities | ||
Net loss | $ (89,777) | $ (524,369) |
Adjustments to reconcile net loss to net cash absorbed by operating activities: | ||
Depreciation and amortization | 189,128 | 169,185 |
Gain on disposal of fixed assets | (5,868) | (5,254) |
Provision for Doubtful Accounts | (26,484) | 79,190 |
Deferred taxes | 65,000 | (58,000) |
(Increase) decrease in operating assets and liabilities | ||
Accounts receivable - billed | (466,818) | (615,662) |
Accounts receivable - unbilled | (541,181) | 46,603 |
Inventories | (116,958) | (178,578) |
Prepaid expenses and other assets | (103,138) | (96,274) |
Prepaid income taxes | (139,870) | (277,779) |
Increase (decrease) in: | ||
Accounts payable - trade | 125,850 | 86,737 |
Accrued expenses and other | 383,594 | 127,404 |
Accrued compensation | 259,919 | 86,526 |
Customer deposits | (248,123) | 125,185 |
Net cash used by operating activities | (714,726) | (1,035,086) |
Cash flows from investing activities: | ||
Purchases of investment securities available-for-sale | (8,842) | (8,729) |
Purchases of property and equipment | (967,378) | (193,730) |
Proceeds from sale of fixed assets | 5,868 | 5,092 |
Net cash used by investing activities | (970,352) | (197,367) |
Cash flows from financing activities: | ||
Proceeds from long-term borrowings | 465,131 | 0 |
Repayments of long-term borrowings | (92,659) | (91,607) |
Proceeds from options exercised | 0 | 21,100 |
Net cash provided (used) by financing activities | 372,472 | (70,507) |
Net decrease in cash and cash equivalents | (1,312,606) | (1,302,960) |
Cash and cash equivalents | ||
Beginning of period | 1,735,621 | 3,572,405 |
End of period | $ 423,015 | $ 2,269,445 |
Interim Financial Reporting
Interim Financial Reporting | 3 Months Ended |
Mar. 31, 2016 | |
INTERIM FINANCIAL REPORTING [Abstract] | |
Interim Financial Reporting | INTERIM FINANCIAL REPORTING Basis of Presentation The accompanying unaudited condensed consolidated financial statements were prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information, and with the instructions to Form 10-Q and Article 10 and Regulation S-X. Accordingly, we have condensed or omitted certain information and footnote disclosures that are included in our annual financial statements. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the related notes included in our Annual Report on Form 10-K for the year ended December 31, 2015 . The condensed consolidated December 31, 2015 balance sheet was derived from audited financial statements included in the Form 10-K. In the opinion of management, these condensed consolidated financial statements reflect all adjustments (which consist of normal, recurring adjustments) necessary for a fair presentation of the financial position and results of operations and cash flows for the periods presented. The results disclosed in the condensed consolidated statements of operations are not necessarily indicative of the results to be expected in any future periods. Recent Accounting Pronouncements In February 2016, the FASB updated the guidance within ASC 842, Leases. The update requires lessees to put most leases on their balance sheets while recognizing expenses on their income statements in a manner similar to current GAAP. The guidance also eliminates current real estate-specific provisions for all entities. For lessors, the guidance modifies the classification criteria and the accounting for sales-type and direct financing leases. The new guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Accordingly, the Company expects to adopt the provisions of this new accounting standard at the beginning of 2019, and is currently assessing the impact on its consolidated financial statements. In July 2015, the FASB issued changes to the subsequent measurement of inventory. Currently, an entity is required to measure its inventory at the lower of cost or market, whereby market can be replacement cost, net realizable value, or net realizable value less an approximately normal profit margin. The changes require that inventory be measured at the lower of cost and net realizable value, thereby eliminating the use of the other two market methodologies. Net realizable value is defined as the estimated selling prices in the ordinary course of business less reasonably predictable costs of completion, disposal, and transportation. These changes do not apply to inventories measured using LIFO (last-in, first-out) or the retail inventory method. The new guidance is effective for fiscal years beginning after January 1, 2017. The impact of adoption of this ASU by the Company is not expected to be material. In November 2015, the FASB issued accounting guidance that requires all deferred tax assets and liabilities, along with any related valuation allowance, to be classified as noncurrent on the Consolidated Statement of Financial Position. Current guidance requires the deferred taxes for each jurisdiction to be presented as a net current asset or liability and net noncurrent asset or liability. As a result of the new guidance, each jurisdiction will now only have one net noncurrent deferred tax asset or liability. The new guidance does not change the existing requirement that only permits offsetting deferred tax assets and liabilities within a single jurisdiction. Entities have the option to apply the new guidance prospectively or retrospectively. The new guidance is effective January 1, 2017, with early adoption permitted. The impact of adoption of this ASU by the Company is not expected to be material. In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (ASU 2014-09), which supersedes nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. ASU 2014-09 defines a five step process to achieve this core principle and, in doing so, more judgment and estimates may be required within the revenue recognition process than are required under existing U.S. GAAP. The Company expects to adopt the provisions of this new accounting standard at the beginning of 2018 and the impact of adoption of this ASU by the Company is not expected to be material. In June 2014, the FASB issued Accounting Standards Update (ASU) No. 2014-12, Compensation - Stock Compensation (Topic 718), Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period. A performance target in a share-based payment that affects vesting and that could be achieved after the requisite service period should be accounted for as a performance condition under Accounting Standards Codification (ASC) 718, Compensation - Stock Compensation . As a result, the target is not reflected in the estimation of the award's grant date fair value. Compensation cost would be recognized over the required service period, if it is probable that the performance condition will be achieved. The guidance is effective for annual periods beginning after December 15, 2015 and interim periods within those annual periods. Early adoption is permitted. The ASU was effective during the period and had not material impact. Reclassifications Certain minor reclassifications have been made in prior year amounts to conform to the current year presentation. Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Revenue Recognition Smith-Midland Corporation (the "Company") primarily recognizes revenue on the sale of its standard precast concrete products at shipment date, including revenue derived from any projects to be completed under short-term contracts. Installation of the Company’s standard products is typically performed by the customer; however, in some circumstances, the Company will install certain products which are accomplished at the time of delivery. The installation activities of smaller buildings are usually performed at the Company's site and shipped completed to the customers site. In larger utility building sales, the buildings are erected on the customers site within one or two days, depending on style and size. The value assigned to each component is determined by an estimate provided to the customer at the time of the sale. We use our best estimate to determine the sales price, which is consistent with our pricing strategy of the business and considers product configuration, geography and other market specific factors. Leasing fees from barrier rental agreements are paid at the beginning of the operating lease agreement and recorded to a deferred revenue account. As the revenue is earned each month during the contract, the amount earned is recorded as lease income and an equivalent amount is debited to deferred revenue. Royalties are recognized as a percent of sales of the licensed product sold by the licensee on a monthly basis. The Company licenses certain other precast companies to produce its licensed products to our engineering specifications under licensing agreements. The agreements are typically for five year terms and require royalty payments from 4% to 6% which are paid on a monthly basis. With respect to certain sales of Soundwall panels, architectural precast panels and Slenderwall™ precast panels, revenue is recognized using the percentage-of-completion method for recording revenues on long term contracts pursuant to ASC 605-35-25 using the units-of-production as the basis to measure progress toward completing the contract. The contracts are executed by both parties and clearly stipulate the requirements for progress payments and a schedule of delivery dates. Provisions for estimated losses on contracts are made in the period in which such losses are determined. Shipping revenues and costs are recognized in the period the shipping services are provided to the customer. Smith-Midland products are typically sold pursuant to an implicit warranty as to merchantability only. Warranty claims are reviewed and resolved on a case by case method. Although the Company does incur costs for these types of expenses, historically the amount of expense is immaterial. |
Net Loss Per Common Share
Net Loss Per Common Share | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Net Income Per Common Share | NET LOSS PER COMMON SHARE Basic earnings per common share exclude all dilutive stock options and are computed using the weighted average number of common shares outstanding during the period. The diluted loss per common share calculation reflect the potential dilutive effect of securities that could share in earnings of an entity. Outstanding options are excluded from the diluted earnings per share calculation where they would have an anti-dilutive effect. There were 63,688 excluded options for the three months ended March 31, 2016 and 81,166 for the three months ended March 31, 2015 . Three Months Ended March 31, 2016 2015 Basic and diluted loss per share Loss available to common shareholders $ (89,777 ) $ (524,369 ) Weighted average shares outstanding 4,919,548 4,891,815 Basic and diluted loss per share $ (0.02 ) $ (0.11 ) |
Notes Payable
Notes Payable | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Notes Payable | NOTES PAYABLE The Company has a mortgage note payable to Summit Community Bank (the “Bank”), with a balance of $1,514,893 as of March 31, 2016 . The note has a term of approximately eight years and a fixed interest rate of 3.99% annually with monthly payments of $25,642 and is secured by principally all of the assets of the Company. Under the terms of the note, the Bank will permit chattel mortgages on purchased equipment not to exceed $250,000 for any one individual loan so long as the Company is not in default. Also, the Company is limited to $1,000,000 for annual capital expenditures. At March 31, 2016 , the Company was in compliance with all covenants pursuant to the loan agreement as amended. The Company also has a $2,000,000 line of credit, of which $352,022 was outstanding at March 31, 2016 . The Company used the line of credit to purchase a capital asset that will be refinanced as an installment note payable in the short term. Therefore, the a portion of the purchase price is in current portion of long-term debt, $42,683 and the remainder, $309,339 is in notes payable. The line is evidenced by a commercial revolving promissory note with the Bank, which carries a variable interest rate of prime and matures on September 12, 2016. In addition, the Company has a commitment from the Bank in the amount of $1,000,000 for an equipment line of credit, of which, $187,110 has been used. |
Stock Options
Stock Options | 3 Months Ended |
Mar. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Options | STOCK OPTIONS In accordance with ASC 718, the Company had no stock option expense for the three months ended March 31, 2016 and March 31, 2015 . The Company uses the Black-Scholes option-pricing model to measure the fair value of stock options granted to employees. The Company did not not issue any stock options for the three months ended March 31, 2016 or for the three months ended March 31, 2015 . The following table summarized options outstanding at March 31, 2016 Number of Shares Weighted Average Exercise Price Balance, December 31, 2015 190,933 $ 1.77 Granted — — Forfeited (5,000 ) 1.77 Exercised — — Outstanding options at March 31, 2016 185,933 $ 1.77 Outstanding exercisable options at March 31, 2016 185,933 $ 1.77 The intrinsic value of outstanding and exercisable options at March 31, 2016 was approximately $ 127,000 . |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS Through the date of the filing of this Form 10-Q, the Company has evaluated events and transactions occurring subsequent to March 31, 2016 and has determined that there have been no significant events or transactions that provide additional evidence about conditions of the Company that existed as of the balance sheet date. |
Interim Financial Reporting (Po
Interim Financial Reporting (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
INTERIM FINANCIAL REPORTING [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements were prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information, and with the instructions to Form 10-Q and Article 10 and Regulation S-X. Accordingly, we have condensed or omitted certain information and footnote disclosures that are included in our annual financial statements. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the related notes included in our Annual Report on Form 10-K for the year ended December 31, 2015 . The condensed consolidated December 31, 2015 balance sheet was derived from audited financial statements included in the Form 10-K. In the opinion of management, these condensed consolidated financial statements reflect all adjustments (which consist of normal, recurring adjustments) necessary for a fair presentation of the financial position and results of operations and cash flows for the periods presented. The results disclosed in the condensed consolidated statements of operations are not necessarily indicative of the results to be expected in any future periods. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In February 2016, the FASB updated the guidance within ASC 842, Leases. The update requires lessees to put most leases on their balance sheets while recognizing expenses on their income statements in a manner similar to current GAAP. The guidance also eliminates current real estate-specific provisions for all entities. For lessors, the guidance modifies the classification criteria and the accounting for sales-type and direct financing leases. The new guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Accordingly, the Company expects to adopt the provisions of this new accounting standard at the beginning of 2019, and is currently assessing the impact on its consolidated financial statements. In July 2015, the FASB issued changes to the subsequent measurement of inventory. Currently, an entity is required to measure its inventory at the lower of cost or market, whereby market can be replacement cost, net realizable value, or net realizable value less an approximately normal profit margin. The changes require that inventory be measured at the lower of cost and net realizable value, thereby eliminating the use of the other two market methodologies. Net realizable value is defined as the estimated selling prices in the ordinary course of business less reasonably predictable costs of completion, disposal, and transportation. These changes do not apply to inventories measured using LIFO (last-in, first-out) or the retail inventory method. The new guidance is effective for fiscal years beginning after January 1, 2017. The impact of adoption of this ASU by the Company is not expected to be material. In November 2015, the FASB issued accounting guidance that requires all deferred tax assets and liabilities, along with any related valuation allowance, to be classified as noncurrent on the Consolidated Statement of Financial Position. Current guidance requires the deferred taxes for each jurisdiction to be presented as a net current asset or liability and net noncurrent asset or liability. As a result of the new guidance, each jurisdiction will now only have one net noncurrent deferred tax asset or liability. The new guidance does not change the existing requirement that only permits offsetting deferred tax assets and liabilities within a single jurisdiction. Entities have the option to apply the new guidance prospectively or retrospectively. The new guidance is effective January 1, 2017, with early adoption permitted. The impact of adoption of this ASU by the Company is not expected to be material. In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (ASU 2014-09), which supersedes nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. ASU 2014-09 defines a five step process to achieve this core principle and, in doing so, more judgment and estimates may be required within the revenue recognition process than are required under existing U.S. GAAP. The Company expects to adopt the provisions of this new accounting standard at the beginning of 2018 and the impact of adoption of this ASU by the Company is not expected to be material. In June 2014, the FASB issued Accounting Standards Update (ASU) No. 2014-12, Compensation - Stock Compensation (Topic 718), Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period. A performance target in a share-based payment that affects vesting and that could be achieved after the requisite service period should be accounted for as a performance condition under Accounting Standards Codification (ASC) 718, Compensation - Stock Compensation . As a result, the target is not reflected in the estimation of the award's grant date fair value. Compensation cost would be recognized over the required service period, if it is probable that the performance condition will be achieved. The guidance is effective for annual periods beginning after December 15, 2015 and interim periods within those annual periods. Early adoption is permitted. |
Reclassification | Reclassifications Certain minor reclassifications have been made in prior year amounts to conform to the current year presentation. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Revenue Recognition | Revenue Recognition Smith-Midland Corporation (the "Company") primarily recognizes revenue on the sale of its standard precast concrete products at shipment date, including revenue derived from any projects to be completed under short-term contracts. Installation of the Company’s standard products is typically performed by the customer; however, in some circumstances, the Company will install certain products which are accomplished at the time of delivery. The installation activities of smaller buildings are usually performed at the Company's site and shipped completed to the customers site. In larger utility building sales, the buildings are erected on the customers site within one or two days, depending on style and size. The value assigned to each component is determined by an estimate provided to the customer at the time of the sale. We use our best estimate to determine the sales price, which is consistent with our pricing strategy of the business and considers product configuration, geography and other market specific factors. Leasing fees from barrier rental agreements are paid at the beginning of the operating lease agreement and recorded to a deferred revenue account. As the revenue is earned each month during the contract, the amount earned is recorded as lease income and an equivalent amount is debited to deferred revenue. Royalties are recognized as a percent of sales of the licensed product sold by the licensee on a monthly basis. The Company licenses certain other precast companies to produce its licensed products to our engineering specifications under licensing agreements. The agreements are typically for five year terms and require royalty payments from 4% to 6% which are paid on a monthly basis. With respect to certain sales of Soundwall panels, architectural precast panels and Slenderwall™ precast panels, revenue is recognized using the percentage-of-completion method for recording revenues on long term contracts pursuant to ASC 605-35-25 using the units-of-production as the basis to measure progress toward completing the contract. The contracts are executed by both parties and clearly stipulate the requirements for progress payments and a schedule of delivery dates. Provisions for estimated losses on contracts are made in the period in which such losses are determined. Shipping revenues and costs are recognized in the period the shipping services are provided to the customer. Smith-Midland products are typically sold pursuant to an implicit warranty as to merchantability only. Warranty claims are reviewed and resolved on a case by case method. Although the Company does incur costs for these types of expenses, historically the amount of expense is immaterial. |
Cash and Cash Equivalents | |
Investments |
Net Loss Per Common Share (Tabl
Net Loss Per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Loss Per Share, Basic and Diluted | Three Months Ended March 31, 2016 2015 Basic and diluted loss per share Loss available to common shareholders $ (89,777 ) $ (524,369 ) Weighted average shares outstanding 4,919,548 4,891,815 Basic and diluted loss per share $ (0.02 ) $ (0.11 ) |
Stock Options (Tables)
Stock Options (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of stock option activity | The following table summarized options outstanding at March 31, 2016 Number of Shares Weighted Average Exercise Price Balance, December 31, 2015 190,933 $ 1.77 Granted — — Forfeited (5,000 ) 1.77 Exercised — — Outstanding options at March 31, 2016 185,933 $ 1.77 Outstanding exercisable options at March 31, 2016 185,933 $ 1.77 |
Interim Financial Reporting (De
Interim Financial Reporting (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Deferred Revenue Arrangement [Line Items] | |
Licensing contract term | 5 years |
Minimum [Member] | |
Deferred Revenue Arrangement [Line Items] | |
Royalty percent earned on licensing agreement | 4.00% |
Maximum [Member] | |
Deferred Revenue Arrangement [Line Items] | |
Royalty percent earned on licensing agreement | 6.00% |
Scenario, Adjustment [Member] | |
Deferred Revenue Arrangement [Line Items] | |
Revenues | $ 240 |
Net Loss Per Common Share (Deta
Net Loss Per Common Share (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Earnings Per Share [Abstract] | ||
Number of options were excluded from diluted EPS calculation due to anti-dilutive effect | 0 | 81,166 |
Basic and diluted loss per share | ||
Loss available to common shareholders | $ (89,777) | $ (524,369) |
Basic and Diluted (in shares) | 4,919,548 | 4,891,815 |
Basic and Diluted earnings (loss) per share (in dollars per share) | $ (0.02) | $ (0.11) |
Notes Payable (Details)
Notes Payable (Details) - Summit Community Bank [Member] | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Notes Payable to Banks [Member] | |
Debt Instrument [Line Items] | |
Outstanding amount of debt | $ 1,514,893 |
Fixed interest rate on debt (percentage) | 3.99% |
Debt instrument monthly payment | $ 25,642 |
Limit on chattel mortgages on purchased equipment | 250,000 |
Limit on annual capital expenditures | 1,000,000 |
Line of Credit [Member] | |
Debt Instrument [Line Items] | |
Outstanding amount of debt | 352,022 |
Line of credit / Commitment from Bank | 2,000,000 |
Letter of Credit [Member] | |
Debt Instrument [Line Items] | |
Line of credit / Commitment from Bank | $ 1,000,000 |
Stock Options (Details)
Stock Options (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | |
Number of Shares | |||
Balance, Beginning of period (shares) | 190,933 | ||
Granted (shares) | 0 | ||
Forfeited (shares) | (5,000) | ||
Exercised (shares) | 0 | ||
Balance, End of period (shares) | 185,933 | ||
Outstanding exercisable options at end of quarter (shares) | 185,933 | ||
Weighted Average Exercise Price (in dollars per share) | |||
Beginning balance (usd per share) | $ 1.77 | $ 1.77 | |
Granted (usd per share) | 0 | ||
Forfeited (usd per share) | 1.77 | ||
Exercised (usd per share) | 0 | ||
Ending balance (usd per share) | $ 1.77 | ||
Outstanding exercisable options at end of quarter (usd per share) | $ 1.77 | ||
Intrinsic value of exercisable options | $ 127,000 | ||
Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock option expense | $ 0 | $ 0 |