Document Entity Information
Document Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Nov. 04, 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 | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 4,918,628 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 |
Current assets | ||
Cash and cash equivalents | $ 945,335 | $ 1,735,621 |
Investment securities, available-for-sale, at fair value | 1,080,570 | 1,041,790 |
Accounts receivable, net | ||
Trade - billed (less allowance for doubtful accounts of $312,101 and $345,118) | 9,978,089 | 6,795,215 |
Trade - unbilled | 294,798 | 197,363 |
Inventories | ||
Raw materials | 773,427 | 724,143 |
Finished goods | 1,734,153 | 1,770,141 |
Prepaid expenses and other assets | 390,888 | 194,429 |
Refundable income taxes | 28,223 | 383,820 |
Deferred taxes | 668,000 | 665,000 |
Total current assets | 15,893,483 | 13,507,522 |
Property and equipment, net | 7,793,638 | 5,073,867 |
Other assets | 182,970 | 268,721 |
Total assets | 23,870,091 | 18,850,110 |
Current liabilities | ||
Accounts payable - trade | 2,010,714 | 1,743,945 |
Accrued expenses and other liabilities | 1,412,440 | 974,785 |
Accrued compensation | 648,872 | 449,723 |
Line of credit | 352,022 | 0 |
Income taxes payable | 637,173 | 435,717 |
Customer deposits | 1,119,742 | 923,943 |
Total current liabilities | 6,180,963 | 4,528,113 |
Notes payable - less current maturities | 3,100,161 | 2,076,675 |
Deferred tax liability | 1,123,000 | 855,000 |
Total liabilities | 10,404,124 | 7,459,788 |
Commitments and contingencies | 0 | 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; 4,959,548 and 4,919,548 issued and 4,919,628 and 4,878,628 outstanding, respectively | 49,595 | 49,195 |
Additional paid-in capital | 5,158,398 | 5,110,398 |
Treasury stock, at cost, 40,920 shares | (102,300) | (102,300) |
Accumulated other comprehensive loss, net | (2,567) | (9,357) |
Retained earnings | 8,362,841 | 6,342,386 |
Total stockholders’ equity | 13,465,967 | 11,390,322 |
Total liabilities and stockholders' equity | $ 23,870,091 | $ 18,850,110 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 |
Current Assets: | ||
Allowance for doubtful accounts | $ 312,101 | $ 345,118 |
Allowance for reserve | $ 66,567 | $ 66,567 |
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 | 4,959,548 | 4,959,548 |
Common stock, shares outstanding | 4,919,548 | 4,919,548 |
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 | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Revenue | ||||
Products sales and leasing | $ 9,784,308 | $ 8,753,987 | $ 23,173,987 | $ 17,623,720 |
Shipping and installation revenue | 2,077,943 | 1,223,599 | 5,572,877 | 2,636,746 |
Royalties | 533,750 | 425,831 | 1,344,240 | 1,240,641 |
Total revenue | 12,396,001 | 10,403,417 | 30,091,104 | 21,501,107 |
Cost of goods sold | 8,273,621 | 7,280,467 | 22,621,805 | 16,180,592 |
Gross profit | 4,122,380 | 3,122,950 | 7,469,299 | 5,320,515 |
Operating expenses | ||||
General and administrative expenses | 966,702 | 808,216 | 2,698,129 | 2,429,280 |
Selling expenses | 501,269 | 558,212 | 1,629,771 | 1,576,986 |
Total operating expenses | 1,467,971 | 1,366,428 | 4,327,900 | 4,006,266 |
Gain on sale of assets | 7,254 | 4,066 | 21,297 | 15,693 |
Other income | 33,770 | 9,009 | 51,229 | 23,565 |
Operating income (loss) | 2,695,433 | 1,769,597 | 3,213,925 | 1,353,507 |
Interest income (expense) | ||||
Interest expense | (47,946) | (26,603) | (111,675) | (77,333) |
Interest income | (2,180) | 19,062 | 28,205 | 20,370 |
Total other expense | (50,126) | (7,541) | (83,470) | (56,963) |
Income before income tax expense | 2,645,307 | 1,762,056 | 3,130,455 | 1,296,544 |
Income tax expense (benefit) | 954,000 | 610,000 | 1,110,000 | 424,000 |
Net income (loss) | $ 1,691,307 | $ 1,152,056 | $ 2,020,455 | $ 872,544 |
Basic income (loss) per share (in dollars per share) | $ 0.34 | $ 0.24 | $ 0.41 | $ 0.18 |
Diluted income (loss) per share (in dollars per share) | $ 0.34 | $ 0.23 | $ 0.41 | $ 0.18 |
Weighted average number of common shares outstanding: | ||||
Basic (in shares) | 4,924,366 | 4,893,548 | 4,924,366 | 4,892,977 |
Diluted (in shares) | 4,964,965 | 4,945,745 | 4,958,473 | 4,943,985 |
Condensed Consolidated Stateme5
Condensed Consolidated Statement of Comprehensive Income (Loss) (Unaudited) Statement - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |||
Statement of Comprehensive Income [Abstract] | ||||||
Net income | $ 1,691,307 | $ 1,152,056 | $ 2,020,455 | $ 872,544 | ||
Other comprehensive income (loss), net of tax: | ||||||
Net unrealized holding gain (loss) | (7,017) | [1] | 3,368 | [1] | 7,773 | (12,771) |
Comprehensive income | $ 1,684,290 | $ 1,155,424 | $ 2,028,228 | $ 859,773 | ||
[1] | Unrealized gains (losses) on available-for-sale securities are shown net of income tax benefit of $5,000 for September 30, 2016 and an income tax expense of $4,000 for September 30, 2015. |
Condensed Consolidated Stateme6
Condensed Consolidated Statement of Comprehensive Income (Loss) (Unaudited) (Parenthetical) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Unrealized gain (loss) on securities arising during period, tax | $ 5,000 | $ 4,000 | $ 5,000 | $ 8,000 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Cash flows from operating activities | ||
Net income | $ 2,020,455 | $ 872,544 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Depreciation and amortization | 569,897 | 499,554 |
Gain on disposal of fixed assets | (20,296) | (15,693) |
Deferred taxes | 265,000 | (243,000) |
Changes in operating assets and liabilities: | ||
Accounts receivable - billed | (6,105,717) | |
Accounts receivable - unbilled | (97,435) | 139,017 |
Allowance for doubtful accounts | (59,977) | |
Inventories | (13,296) | (441,789) |
Prepaid expenses and other assets | (110,709) | (123,949) |
Prepaid income taxes | 355,597 | 655,727 |
Accounts payable - trade | 266,769 | 1,656,645 |
Accrued expenses and other | 437,655 | 619,400 |
Accrued compensation | 199,149 | 255,458 |
Customer deposits | 195,799 | 736,128 |
Net cash provided by (used in) operating activities | 885,712 | (1,555,652) |
Cash flows from investing activities: | ||
Purchases of investment securities | (31,990) | (27,519) |
Purchases of property and equipment | (3,289,669) | (864,814) |
Proceeds from sale of fixed assets | 20,296 | 23,731 |
Net cash used in investing activities | (3,301,363) | (868,602) |
Cash flows from financing activities: | ||
Line of credit borrowings | 1,450,000 | 0 |
Line of credit payments | (1,450,000) | 0 |
Proceeds from long-term borrowings | 1,887,322 | 97,005 |
Repayments of long-term borrowings | (310,357) | (275,114) |
Proceeds from options exercised | 48,400 | 21,101 |
Net cash provided by (used in) financing activities | 1,625,365 | (157,008) |
Net decrease in cash and cash equivalents | (790,286) | (2,581,262) |
Cash and cash equivalents | ||
Beginning of period | 1,735,621 | 3,572,405 |
End of period | $ 945,335 | $ 991,143 |
Interim Financial Reporting
Interim Financial Reporting | 9 Months Ended |
Sep. 30, 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 May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers (Topic 606) . Under the update, revenue will be recognized based on a five-step model. The core principle of the model is that revenue will be recognized when the transfer of promised goods or services to customers is made in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In March 2016, the FASB issued additional guidance which clarifies principal versus agent considerations, and in April 2016, the FASB issued further guidance which clarifies the identification of performance obligations and the implementation guidance for licensing. Additional guidance was issued in May 2016 which clarified, among other items, revenue collectability, presentation of sales tax and other similar taxes from customers and non-cash consideration. In the third quarter of 2015, the FASB deferred the effective date of the standard to annual and interim periods beginning after December 15, 2017. Early adoption will be permitted for annual and interim periods beginning after December 15, 2016. The Company is currently evaluating the impact that adopting this ASU will have on its financial position, results of operations and cash flows. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), ("ASU 2016-02"). ASU 2016-02 introduces a lessee model that brings most leases on the balance sheet and eliminates the current requirements for a company to use bright-line tests in determining lease classification. ASU 2016-02 is effective for annual and interim periods beginning after December 15, 2018 and requires a modified retrospective approach. The Company is currently evaluating the impact that adopting ASU 2016-02 will have on its financial position, results of operations and cash flows. In March 2016, the FASB issued ASU No. 2016-09, “Compensation-Stock Compensation,” to simplify the accounting and reporting for employee share-based payments. This amendment involves several aspects of the accounting for share-based payment transactions, including accounting for income taxes as it pertains to the timing of when excess tax benefits are recognized and to the recognition of excess tax benefits and tax deficiencies in the statements of income, forfeitures, minimum statutory tax withholding requirements, as well as classification of excess tax benefits and employee taxes paid in the statement of cash flows. This amendment will be effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods, with early adoption permitted. An entity that elects early adoption must adopt all of the amendments in the same period. The amendments provide specific transition and disclosure guidance for each provision. The Company has not yet evaluated the effect the adoption of this ASU will have on its consolidated financial statements. In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing (Topic 606), which amends the revenue guidance on identifying performance obligations and accounting for licenses of intellectual property. The effective date and transition of this amendment is the same as the effective date and transition of ASU 2014-09. The Company is currently in the process of evaluating the impact of the adoption on its consolidated financial statements and related disclosures. 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 meet engineering specifications under licensing agreements. The agreements are typically for five year terms and require royalty payments to be made to the Company ranging 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 revenue 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 | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Net Income Per Common Share | NET INCOME PER COMMON SHARE Basic earnings per common share exclude all common stock equivalent, primarily stock options, and is computed using the weighted average number of common shares outstanding during the period. The diluted earnings per common share calculation reflects the potential dilutive effect of securities that could share in earnings of the Company. Outstanding options are excluded from the diluted earnings per share calculation where they would have an anti-dilutive effect. Three Months Ended September 30, 2016 2015 Basic income per share Net income $ 1,691,307 $ 1,152,056 Weighted average shares outstanding 4,924,366 4,893,548 Basic income per share $ 0.34 $ 0.24 Diluted income per share Net income $ 1,691,307 $ 1,152,056 Weighted average shares outstanding 4,924,366 4,893,548 Dilutive effect of stock options 40,599 52,197 Total weighted average shares outstanding 4,964,965 4,945,745 Diluted income per share $ 0.34 $ 0.23 Nine Months Ended September 30, 2016 2015 Basic income per share Net income $ 2,020,455 $ 872,544 Weighted average shares outstanding 4,924,366 4,892,977 Basic income per share $ 0.41 $ 0.18 Diluted income per share Net income $ 2,020,455 $ 872,544 Weighted average shares outstanding 4,924,366 4,892,977 Dilutive effect of stock options 34,107 51,008 Total weighted average shares outstanding 4,958,473 4,943,985 Diluted income per share $ 0.41 $ 0.18 |
Notes Payable
Notes Payable | 9 Months Ended |
Sep. 30, 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 $ 1,391,364 as of September 30, 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. The Company additionally has 11 smaller installment loans with interest rates between 2.99% and 3.99% and varying balances totaling $735,699 . Also, the Company is limited to $1,500,000 for annual capital expenditures. At September 30, 2016 , the Company was in compliance with all covenants pursuant to the loan agreement. In the second quarter of 2016, the limitation for the purchase of capital assets was $1,000,000 which the Company exceeded at that time and for which the Company received a waiver from the Bank. On July 21, 2016, in order to finance the purchase of the Columbia, South Carolina facility, more fully described in Item 2 below, the Company borrowed $1,317,500 from the Bank. Such loan is evidenced by a promissory note, dated July 19, 2016. The new note provides for a 15 years term, a fixed annual interest rate of 5.29% , monthly fixed payments of $10,672.91 and a security interest in favor of the Bank in respect of the land, building and fixtures purchased with the proceeds of the loan. The balance of the loan at September 30, 2016, was $1,307,942. The Company also has a $2,000,000 line of credit, of which $352,022 was outstanding at September 30, 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. The line is evidenced by a commercial revolving promissory note with the Bank, which carries a variable interest rate equal to the Wall Street Journal's prime rate and matures on September 12, 2017. In addition, the Company has a commitment from the Bank in the amount of $1,500,000 for an equipment line of credit, of which none has been used |
Stock Options
Stock Options | 9 Months Ended |
Sep. 30, 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 and nine months ended September 30, 2016 and September 30, 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 nine months ended September 30, 2016 or the nine months ended September 30, 2015 . The following table summarized options outstanding at September 30, 2016 Number of Shares Weighted Average Exercise Price Balance, December 31, 2015 190,933 $ 1.77 Granted — — Forfeited (60,000 ) (2.21 ) Exercised (40,000 ) (1.21 ) Outstanding options at September 30, 2016 90,933 $ 1.72 Outstanding exercisable options at September 30, 2016 90,933 $ 1.72 The intrinsic value of outstanding and exercisable options at September 30, 2016 was approximately $67,000 . |
Interim Financial Reporting (Po
Interim Financial Reporting (Policies) | 9 Months Ended |
Sep. 30, 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 |
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 meet engineering specifications under licensing agreements. The agreements are typically for five year terms and require royalty payments to be made to the Company ranging 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 revenue 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 (Tabl
Net Loss Per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Loss Per Share, Basic and Diluted | Three Months Ended September 30, 2016 2015 Basic income per share Net income $ 1,691,307 $ 1,152,056 Weighted average shares outstanding 4,924,366 4,893,548 Basic income per share $ 0.34 $ 0.24 Diluted income per share Net income $ 1,691,307 $ 1,152,056 Weighted average shares outstanding 4,924,366 4,893,548 Dilutive effect of stock options 40,599 52,197 Total weighted average shares outstanding 4,964,965 4,945,745 Diluted income per share $ 0.34 $ 0.23 Nine Months Ended September 30, 2016 2015 Basic income per share Net income $ 2,020,455 $ 872,544 Weighted average shares outstanding 4,924,366 4,892,977 Basic income per share $ 0.41 $ 0.18 Diluted income per share Net income $ 2,020,455 $ 872,544 Weighted average shares outstanding 4,924,366 4,892,977 Dilutive effect of stock options 34,107 51,008 Total weighted average shares outstanding 4,958,473 4,943,985 Diluted income per share $ 0.41 $ 0.18 |
Stock Options (Tables)
Stock Options (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of stock option activity | The following table summarized options outstanding at September 30, 2016 Number of Shares Weighted Average Exercise Price Balance, December 31, 2015 190,933 $ 1.77 Granted — — Forfeited (60,000 ) (2.21 ) Exercised (40,000 ) (1.21 ) Outstanding options at September 30, 2016 90,933 $ 1.72 Outstanding exercisable options at September 30, 2016 90,933 $ 1.72 |
Interim Financial Reporting (De
Interim Financial Reporting (Details) | 9 Months Ended |
Sep. 30, 2016 | |
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% |
Net Loss Per Common Share (Deta
Net Loss Per Common Share (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Basic income per share | ||||
Net income | $ 1,691,307 | $ 1,152,056 | $ 2,020,455 | $ 872,544 |
Weighted average shares outstanding (in shares) | 4,924,366 | 4,893,548 | 4,924,366 | 4,892,977 |
Basic income (loss) per share (in dollars per share) | $ 0.34 | $ 0.24 | $ 0.41 | $ 0.18 |
Diluted income per share | ||||
Dilutive effect of stock options (in shares) | 40,599 | 52,197 | 34,107 | 51,008 |
Total weighted average shares outstanding (in shares) | 4,964,965 | 4,945,745 | 4,958,473 | 4,943,985 |
Diluted income (loss) per share (in dollars per share) | $ 0.34 | $ 0.23 | $ 0.41 | $ 0.18 |
Notes Payable (Details)
Notes Payable (Details) | Jul. 21, 2016USD ($) | Jun. 30, 2016USD ($) | Sep. 30, 2016USD ($) |
Debt Instrument [Line Items] | |||
Limit on annual capital expenditures | $ 1,500,000 | ||
Capital assets purchase amount limit | $ 1,000,000 | ||
Notes Payable to Banks [Member] | Smaller Installment Loans [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 735,699 | ||
Debt instrument, number of loans | 11 | ||
Notes Payable to Banks [Member] | Smaller Installment Loans [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Fixed interest rate on debt (percentage) | 2.99% | ||
Notes Payable to Banks [Member] | Smaller Installment Loans [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Fixed interest rate on debt (percentage) | 3.99% | ||
Summit Community Bank [Member] | Notes Payable to Banks [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 1,317,500 | $ 1,453,369 | |
Debt instrument, term (in years) | 15 years | 8 years | |
Fixed interest rate on debt (percentage) | 5.29% | 3.99% | |
Debt instrument monthly payment | $ 10,672.91 | $ 25,642 | |
Limit on chattel mortgages on purchased equipment | 250,000 | ||
Summit Community Bank [Member] | Line of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt | 352,022 | ||
Line of credit / commitment from Bank | 2,000,000 | ||
Summit Community Bank [Member] | Letter of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit / commitment from Bank | $ 1,500,000 |
Stock Options (Details)
Stock Options (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Number of Shares | ||||
Balance, Beginning of period (shares) | 190,933 | |||
Granted (shares) | 0 | |||
Forfeited (shares) | (60,000) | |||
Exercised (shares) | (40,000) | |||
Balance, End of period (shares) | 90,933 | 90,933 | ||
Outstanding exercisable options at end of quarter (shares) | 90,933 | |||
Weighted Average Exercise Price (in dollars per share) | ||||
Beginning balance (usd per share) | $ 1.72 | $ 1.77 | ||
Granted (usd per share) | 0 | |||
Forfeited (usd per share) | (2.21) | |||
Exercised (usd per share) | (1.21) | |||
Ending balance (usd per share) | $ 1.77 | |||
Outstanding exercisable options at end of quarter (usd per share) | $ 1.72 | |||
Intrinsic value of exercisable options | $ 67,000 | |||
Employee Stock Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock option expense | $ 0 | $ 0 | $ 0 | $ 0 |