Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Mar. 23, 2017 | Jun. 30, 2016 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | THANKSGIVING COFFEE CO INC | ||
Entity Central Index Key | 949,852 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | No | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $ 0 | ||
Entity Common Stock, Shares Outstanding | 1,236,744 |
Balance Sheets
Balance Sheets - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current assets | |||||
Cash | $ 149,936 | $ 213,193 | $ 277,949 | $ 94,506 | $ 454,456 |
Accounts receivable, net | 239,738 | 233,782 | 245,199 | 216,894 | 266,420 |
Inventory | 279,751 | 316,124 | 204,442 | 205,329 | 201,376 |
Prepaid and other current assets | 109,974 | 126,844 | 38,813 | 91,910 | 51,593 |
Loan to stockholders | 455,172 | 32,460 | |||
Prepaid income taxes | 7,681 | ||||
Deferred tax asset - current | 108,466 | ||||
Total current assets | 779,399 | 889,943 | 774,084 | 1,063,811 | 1,114,771 |
Property and equipment | |||||
Property and equipment | 1,418,820 | 1,313,676 | 1,193,630 | 956,022 | 921,409 |
Accumulated depreciation | (992,441) | (868,286) | (761,962) | (678,793) | (613,421) |
Total property and equipment | 426,379 | 445,390 | 431,668 | 277,229 | 307,988 |
Other assets | |||||
Deposits | 12,242 | 3,112 | 36,510 | 7,004 | 550 |
Note receivable | 29,728 | 29,054 | 64,731 | 72,450 | 79,374 |
Total other assets | 41,970 | 32,166 | 101,241 | 79,454 | 79,924 |
Total assets | 1,247,748 | 1,367,499 | 1,306,993 | 1,420,494 | 1,502,683 |
Current liabilities | |||||
Accounts payable | 286,852 | 252,712 | 170,704 | 166,293 | 263,408 |
Accrued liabilities | 67,344 | 71,454 | 62,644 | 52,903 | 222,183 |
Income tax payable | 27,049 | 4,551 | |||
Deferred income tax liability | 5,827 | ||||
Current portion of long term debt | 38,004 | 21,614 | 10,186 | 55,594 | 58,976 |
Total current liabilities | 392,200 | 345,780 | 243,534 | 307,666 | 549,118 |
Long-term debt | 130,297 | 89,214 | 39,778 | 56,943 | 112,454 |
Less current portion of long term debt | (38,004) | (21,614) | (10,186) | (55,594) | (58,976) |
Total long-term debt | 92,293 | 67,600 | 29,592 | 1,349 | 53,478 |
Total liabilities | 484,493 | 413,380 | 273,126 | 309,015 | 602,596 |
Stockholders' equity | |||||
Common stock, no par value, 1,960,000 shared authorized, 1,236,744 shares issued and outstanding | 861,816 | 861,816 | 861,816 | 861,816 | 861,816 |
Additional paid in capital | 24,600 | 24,600 | 24,600 | 24,600 | 24,600 |
Retained earnings (deficit) | (123,161) | 67,703 | 147,451 | 225,063 | 13,671 |
Total stockholders' equity | 763,255 | 954,119 | 1,033,867 | 1,111,479 | 900,087 |
Total liabilities and stockholders' equity | $ 1,247,748 | $ 1,367,499 | $ 1,306,993 | $ 1,420,494 | $ 1,502,683 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Financial Position [Abstract] | |||||
Common stock, par value | |||||
Common stock, shares authorized | 1,960,000 | 1,960,000 | 1,960,000 | 1,960,000 | 1,960,000 |
Common stock, shares issued | 1,236,744 | 1,236,744 | 1,236,744 | 1,236,744 | 1,236,744 |
Common stock, shares outstanding | 1,236,744 | 1,236,744 | 1,236,744 | 1,236,744 | 1,236,744 |
Statements of Income and Retain
Statements of Income and Retained Earnings - USD ($) | 12 Months Ended | ||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Statements of Income and Retained Earnings [Abstract] | |||||
Sales | $ 3,552,899 | $ 3,610,050 | $ 3,447,884 | $ 3,643,403 | $ 3,968,310 |
Cost of goods sold | 2,139,873 | 2,226,472 | 2,104,218 | 2,333,558 | 2,776,705 |
Gross Profit | 1,413,026 | 1,383,578 | 1,343,666 | 1,309,845 | 1,191,605 |
Operating Expenses | 1,601,824 | 1,467,684 | 1,368,767 | 1,254,765 | 1,389,945 |
Operating profit (loss) | (188,798) | (84,106) | (25,101) | 55,080 | (198,340) |
Other income (expense) | |||||
Interest income | 1,996 | 3,905 | 4,982 | 5,946 | 4,197 |
Interest expense | (9,400) | (5,877) | (15,996) | (6,904) | (13,819) |
Fire Insurance proceeds (payments) net | (42,760) | 298,451 | 458,814 | ||
Gain on sale of assets | 66,054 | ||||
Other | 6,138 | 7,130 | (8,315) | 5,531 | 3,128 |
Total other income (expense) | (1,266) | 5,158 | (62,089) | 303,024 | 518,374 |
Income (loss) before income taxes | (190,064) | (78,948) | (87,190) | 358,104 | 320,034 |
Provision (credit) for income taxes | 800 | 800 | (9,578) | 146,712 | (103,115) |
Net Income (loss) | (190,864) | (79,748) | (77,612) | 211,392 | 423,149 |
Retained earnings, beginning of year | 67,703 | 147,451 | 225,063 | 13,671 | (409,478) |
Retained earnings (deficit), end of year | $ (123,161) | $ 67,703 | $ 147,451 | $ 225,063 | $ 13,671 |
Earnings (loss) per share, basic and diluted | $ (0.15) | $ (0.06) | $ (0.06) | $ 0.17 | $ 0.34 |
Statements of Cash Flow
Statements of Cash Flow - USD ($) | 12 Months Ended | ||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Cash flows from operating activities | |||||
Net Income (Loss) | $ (190,864) | $ (79,748) | $ (77,612) | $ 211,392 | $ 423,149 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||
Depreciation | 124,155 | 106,849 | 83,169 | 73,823 | 80,925 |
(Gain) on sale of assets | (66,054) | ||||
Deferred income tax (benefit) expense | (5,827) | 114,293 | (108,466) | ||
(Increase) decrease in: | |||||
Accounts receivable, net | (4,876) | 11,417 | (28,305) | 49,526 | (10,266) |
Inventory | 36,373 | (111,682) | 887 | (3,953) | 271,841 |
Prepaid and other assets | 5,986 | (46,952) | 15,910 | (46,771) | (27,706) |
Increase (decrease) in: | |||||
Accounts payable | 34,140 | 82,008 | 4,411 | (97,115) | (234,541) |
Accrued and other liabilities | (4,110) | 8,810 | 9,741 | (169,280) | 148,064 |
Income tax payable | (27,049) | 22,498 | 4,551 | ||
Net cash provided by (used in)operating activities | 804 | (29,298) | (24,675) | 154,413 | 481,497 |
Cash flows from investing activities | |||||
Proceeds from sale of assets | 10,000 | ||||
Purchases of property and equipment | (105,144) | (120,571) | (237,608) | (43,064) | (3,629) |
Net cash provided by (used in) investing activities | (105,144) | (120,571) | (237,608) | (43,064) | 6,371 |
Cash flows from financing activities | |||||
Receipts from stockholders' loan | 455,172 | 32,460 | |||
Advances to stockholders | (455,172) | (32,460) | |||
Receipts from note receivable | 35,677 | 7,719 | 6,924 | ||
Increase in long-term debt | 74,922 | 70,201 | 45,164 | ||
Principal payments on long-term debt | (33,839) | (20,765) | (62,329) | (55,511) | (65,223) |
Net cash provided by (used in) financing activities | 41,083 | 85,113 | 445,726 | (471,299) | (97,683) |
Net increase (decrease) in cash | (63,257) | (64,756) | 183,443 | (359,950) | 390,185 |
Cash, beginning of year | 213,193 | 277,949 | 94,506 | 454,456 | 64,271 |
Cash, end of year | 149,936 | 213,193 | 277,949 | 94,506 | 454,456 |
Supplemental dislcosure of cash flow information: | |||||
Interest paid | 9,400 | 5,877 | 15,996 | 6,904 | 13,819 |
Income taxes paid | $ 800 | $ 800 | $ 30,979 | $ 9,921 | $ 800 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 1. Summary of Significant Accounting Policies Nature of Operations Thanksgiving Coffee Company, Inc. (the “Company”), a California Corporation, engages in sourcing, blending and roasting high quality green coffee beans from small scale farmer co-ops worldwide with an emphasis on sustainability and fair trade certified coffee beans. The Company operates from their headquarters on the Mendocino coast in Fort Bragg, California, where they package, market and distribute the quality branded coffee products through retail and wholesale distribution processes in addition to an internet presence. Method of Accounting The financial statements of the Company have been prepared on the accrual basis of accounting in accordance with generally accepted accounting principles in the United States of America. Cash and Cash Equivalents The Company considers all highly liquid investments with original maturities of year or less at the time of purchase to be cash equivalents, and maintain its cash in bank deposit accounts at high credit quality financial institutions. Effective January 1, 2013, all interest bearing and non-interest bearing transaction accounts are guaranteed by the Federal Deposit Insurance Corporation (FDIC) up to $250,000 indefinitely. The Company periodically maintains cash balances in excess of FDIC coverage. Management considers this to be a normal business risk. Concentration of Credit Risk For the years ending December 31, 2016, 2015, 2014, and 2012, one customer accounted for 10%, 10%, 10%, and 12%, respectively, of the Company’s revenue. The customer has serving locations and is a distributor of the Company’s product. The loss of this account could have an adverse impact on the Company. For the year ending December 31, 2013, no one customer accounted for more than 10% of the Company’s revenue. As of December 31, 2016, 2015, 2013 and 2012 one customer accounted for approximately 14%, 10%, 13%, and 11%, respectively, of the accounts receivable of the Company. As of December 31, 2014 there was no accounts receivable concentration credit risk. For the years ending December 31, 2016, 2015, 2014, 2013 and 2012 one vendor accounted for 49%, 56%, 50%, 63% and 48%, respectively, of the Company’s green bean coffee purchases. See Note 6 to the financial statements. The loss of this vendor could have an adverse impact on the Company. As of December 31, 2016, vendors A, B, C and D accounted for 10%, 14%, 21% and 10% of the Company’s accounts payable. As of December 31, 2015, vendors A, B, and C accounted for approximately 12%, 45% and 15% of the Company’s accounts payable. As of December 31, 2014, 2013 and 2012, vendor A accounted for approximately 31%, 14%, and 49%, respectively, of the accounts payable of the Company. Accounts Receivable The Company extends credit to customers in the normal course of business and performs ongoing credit evaluations of customers, maintaining allowances for potential credit losses which, when realized, have been within management’s expectations. Invoices are aged based on terms with the customer. The Company utilizes a percentage method to establish the allowance for doubtful accounts. The estimated allowance ranges from 1% to 10% of outstanding receivables based on factors pertaining to the credit risk of specific customers, historical trends and other information. Delinquent accounts are written off when it is determined that amounts are uncollectible. The allowance for doubtful accounts is based on historical information, and recorded as a charge to operating expense. At December 31, 2016, 2015, 2014, 2013 and 2012 the Company’s allowance for doubtful accounts was $6,878, $5,912, $5,805, $5,170 and $7,635, respectively. The bad debt-write-offs for the years ended December 31, 2016, 2015, 2014, 2013 and 2012 were $1,641, $123, $47, $466, and $1,638 respectively. Inventory Inventory is stated at the lower of cost, determined using the first-in, first-out method, or market. Property and Equipment Property and equipment are stated at cost and depreciated over their estimated useful lives using the straight-line method for financial reporting purposes and accelerated methods for income tax reporting purposes; maintenance and repair costs are charged against operations as incurred. The estimated useful lives of the assets are as follows: Estimated Useful Lives Automobiles 5 years Equipment and fixtures 5 - 7 years Office furniture and equipment 5 - 7 years Leased equipment 5 - 12 years Leasehold improvements 7 - 39 years Revenue Recognition Sales are recognized when revenue is realized or becomes realizable and has been earned. In general, revenue is recognized when the earnings process is complete, which is upon shipment of products. Shipping and Handling Charges The Company reports shipping and handling fees charged to customers as part of freight, an operating expense. The associated expense is reported in the same account. Sales Tax States impose sales tax on certain sales to nonexempt customers. The Company collects that sales tax from customers and remits the entire amount to the state. The Company’s accounting policy is to exclude the tax collected and remitted to the state from revenues and cost of goods sold. Advertising Advertising costs are expensed as incurred. The advertising costs incurred for the years ended December 31, 2016, 2015, 2014, 2013 and 2012 were $11,333, $10,394, $13,205, $5,152, and $44,141, respectively. Comprehensive Income The Company has no components of other comprehensive income other than net income, and accordingly, the comprehensive income is equivalent to the net income for the years presented. Income Taxes The Company accounts for income taxes under the asset and liability method. As such, deferred income tax assets and liabilities are recognized for the future tax consequences of the differences between the financial statement carrying amount of existing assets and liabilities and their respective tax basis. Deferred income tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. A valuation allowance is established when necessary to reduce deferred tax assets to the amount expected to be realized. Uncertain Tax Positions The Company accounts for uncertainty in income taxes, by designating a recognition threshold and measurement attribute for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return and also considers various related matters such as de-recognition, interest, penalties, and disclosures required. The Company’s management has determined that no unrecognized tax benefits or liabilities were to be recognized or disclosed in the financial statements. The Company accrues interest and penalties associated with uncertain tax positions as a part of operating expenses. As of December 31, 2016, 2015, 2014, 2013 and 2012, there were no accrued interest or penalties associated with uncertain tax positions. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Accordingly, actual results could differ from those estimates. Recent Relevant Accounting Guidance Not Yet Effective In February 2016, the FASB issued Accounting Standards Update (ASU) 2016-02, Leases (Topic 842) In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements - Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern, which is intended to define management’s responsibility to evaluate whether there is substantial doubt about an organization’s ability to continue as a going concern within one year after the date that the financial statements are issued (or within one year after the date that the financial statements are available to be issued when applicable) and to provide related footnote disclosures. The ASU provides guidance to an organization’s management, with principles and definitions that are intended to reduce diversity in the timing and content of disclosures that are commonly provided by organizations today in the financial statement footnotes. The ASU is effective for annual periods ending after December 15, 2016. Early adoption is permitted. The Company is currently evaluating the effects of this ASU on its financial statements and disclosures. Variable Interest Entities The Company holds a financial interest in an entity owned by its majority stockholders. The interest consists of the related party leasing arrangement more fully described in Note 6 to these financial statements. This interest is considered to be a Variable Interest Entity (VIE) for accounting purposes. Due to the nature and amount of the Company’s financial obligations with respect to the VIE, the Company is not considered to financially control the VIE, therefore the Company is not required to consolidate the VIE in these financial statements. |
Inventory
Inventory | 12 Months Ended |
Dec. 31, 2016 | |
Inventory [Abstract] | |
Inventory | 2. Inventory Inventory consists of the following at December 31: 2016 2015 2014 2013 2012 Coffee: Unroasted $ 168,003 $ 185,766 $ 105,708 $ 69,693 $ 79,644 Roasted 55,066 49,419 47,029 51,971 42,185 Tea 1,690 1,830 1,377 1,155 567 Packaging, supplies and other merchandise held for sale 54,992 79,109 50,328 82,510 78,980 Total inventory $ 279,751 $ 316,124 $ 204,442 $ 205,329 $ 201,376 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2016 | |
Property and Equipment [Abstract] | |
Property and Equipment | 3. Property and Equipment Property and equipment consist of the following as of December 31, 2016 2015 2014 2013 2012 Automobiles $ 146,133 $ 105,628 $ 105,628 $ 42,387 $ 36,863 Equipment and fixtures 506,939 490,095 481,853 424,982 416,704 Office furniture and equipment 138,715 131,778 115,866 75,483 72,976 Leased equipment 214,796 177,088 106,886 106,886 106,886 Leasehold improvements 352,237 349,087 342,397 306,284 280,053 Trademarks - - - - 5,127 Package design 41,000 41,000 41,000 - - Website 19,000 19,000 - - 2,800 1,418,820 1,313,676 1,193,630 956,022 921,409 Accumulated depreciation (992,441 ) (868,286 ) (761,962 ) (678,793 ) (613,421 ) Total property and equipment $ 426,379 $ 445,390 $ 431,668 $ 277,229 $ 307,988 Depreciation expense for the years ended December 31, 2016, 2015, 2014, 2013 and 2012 was $124,155, $106,849, $83,169, $73,823, and $80,925, respectively. |
Note Receivable
Note Receivable | 12 Months Ended |
Dec. 31, 2016 | |
Note Receivable [Abstract] | |
Note Receivable | 4. Note Receivable The Company sold their bakery and café in January 2012, carrying back a note receivable of $75,000 on the sale. The Note repayment called for scheduled principal reductions as follows: $5,000 in 2013, $7,500 in 2014, $15,000 in 2015 and 2016, with the final payment of $32,500 due on June 30, 2017. Additionally, interest is payable annually at 7.00% on the outstanding balance, compounded yearly. All scheduled principal payments have been made as required, plus other additional principal reductions. The balance of the note at December 31, 2016 is $29,728, including accrued interest of $843. |
Long Term Debt
Long Term Debt | 12 Months Ended |
Dec. 31, 2016 | |
Long Term Debt [Abstract] | |
Long Term Debt | 5. Long Term Debt Long-term debt consists of the following at December 31: 2016 2015 2014 2013 2012 Long Term Debt Savings Bank of Mendocino, payable in monthly installments of $4,309, interest at 7.25%, collateralized by a security interest of substanially all of the Company's assets. $ - $ - $ - $ 45,738 $ 88,515 Hansel Ford, payable in monthly installments of $385, including interest at .90%, collateralized by equipment, final payment due on March 14, 2019. 10,290 14,796 19,260 - - Hansel Ford, payable in monthly installments of $385, including interest at .90%, collateralized by equipment, final payment due on March 14, 2019. 10,290 14,796 19,260 - - Bank of the West, payable in monthly installments of $489, including interest at 12.69%, collateralized by equipment, final payment due on May 1, 2013. - - - - 2,369 US Bancorp, payable in monthly installments of $621, including interest at 14.32%, collateralized by equipment, final payment due on September 8, 2014. - - - 5,275 11,486 Bank of the West, payable in monthly installments of $427, including interest at 11.83%, collateralized by equipment, final payment due on April 1, 2015. - - 1,258 5,930 10,084 Bank of the West, payable in monthly installments of $787.03, including interest at 9.234%, collateralized by equipment, final payment due January 1, 2021. 47,020 59,622 - - - Bank of the West, payable in monthly installments of $1,465, including interest at 9.227%, collateralized by equipment, final payment due January 1, 2020. 31,486 - - - - Hansel Ford, payable in monthly installments of $806.38, including interest at 1.939%, collateralized by equipment, final payment due on April 10, 2020. 31,211 - - - - 130,297 89,214 39,778 56,943 112,454 Less current portion of long term debt (38,004 ) (21,614 ) (10,186 ) (55,594 ) (58,976 ) Long term debt $ 92,293 $ 67,600 $ 29,592 $ 1,349 $ 53,478 Interest expense for the years ended December 31, 2016, 2015, 2014, 2013 and 2012 was $9,400, $5,877, $15,996, $6,904, and $13,819, respectively. As of December 31, 2016 maturities of long-term debt obligations for each of the next four years and in the aggregate were as follows: Years Ended December 31, 2017 $ 38,004 2018 44,321 2019 35,770 2020 12,202 $ 130,297 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 6. Related Party Transactions Long Term Leases The Company leases its corporate headquarters, warehouse and waterfront facilities from Paul and Joan Katzeff (the Company’s majority shareholders). The lease is classified as an operating lease and provides for monthly rental payments of $8,600. The Company is responsible for all real estate taxes, insurance and maintenance costs related to the facilities. The ten-year lease term ends May 31, 2025. Effective July 1, 2011 rent was reduced to $4,500 a month to reflect reduction in usable square footage as a result of fire damage. The building was rebuilt and the original monthly rental payments of $8,600 resumed January 1, 2015. As of December 31, 2016, minimum future rental payments under non-cancelable facilities operating leases for each of the next five years and in the aggregate are as follows: Years Ended December 31, 2017 $ 103,200 2016 103,200 2017 103,200 2018 103,200 2019 103,200 2020 and thereafter 352,600 $ 868,600 The total rent payments made to its majority shareholders in connection with these related party transactions for the years ended December 31, 2016, 2015, 2014, 2013 and 2012 were $103,200, $103,200, $54,000, $54,000, and $54,000, respectively. Contracts The Company negotiates green bean purchase contracts from three cooperatives in Nicaragua. Ethical Trading and Investment Company of Nicaragua (ETICO) is the importer for the transaction. Nicolas Hoskyns, a Director of the Company, is the managing director at ETICO. At December 31, 2016, amounts owed to ETICO totaled $40,246. All amounts owed were current and were paid in accordance with our standard vendor payment policies. The loss of the ETICO relationship could have an adverse effect on the Company’s business in the short term. Management believes other options are available that could be utilized in the event the ETICO relationship was terminated. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Taxes [Abstract] | |
Income Taxes | 7. Income Taxes The provision for income taxes consist of the following for the year ended December 31: 2016 2015 2014 2013 2012 Current state provision (credit) $ 800 $ 800 $ (3,751 ) $ 32,419 $ 5,351 Deferred provision (credit) Federal - - (7,829 ) 113,002 (105,173 ) State - - 2,002 1,291 (3,293 ) Total deferred provision (credit) - - (5,827 ) 114,293 (108,466 ) Total provision (credit) $ 800 $ 800 $ (9,578 ) $ 146,712 $ (103,115 ) Deferred tax assets and liabilities consist of the following as of December 31: 2016 2015 2014 2013 2012 Net Operating Losses $ 133,265 $ 81,580 $ 62,456 $ - $ 111,653 Depreciation (38,826 ) (51,513 ) (55,220 ) (29,756 ) (17,104 ) Other 28,218 17,898 13,777 23,929 13,917 Subtotal 122,657 47,965 21,013 (5,827 ) 108,466 Valuation Allowance (122,657 ) (47,965 ) (21,013 ) - - Net deferred tax asset (liability) $ - $ - $ - $ (5,827 ) $ 108,466 A reconciliation of the Company’s actual effective tax rate to the federal statutory tax rate of 34% is as follows for the years ended December 31: 2016 2015 2014 2013 2012 Amount % Amount % Amount % Amount % Amount % Pre tax income (loss) $ (190,064 ) $ (78,948 ) $ (87,190 ) $ 358,104 $ 320,034 Federal tax (credit) net (58,730 ) -30.9 % (24,395 ) -30.9 % (26,942 ) -30.9 % 110,654 30.9 % 98,891 30.9 % State tax (credit) (16,916 ) -8.9 % (7,026 ) -8.9 % (7,760 ) -8.9 % 31,871 8.9 % 28,483 8.9 % Valuation allowance 74,692 39.3 % 26,952 34.1 % 21,013 24.1 % - 0.0 % (209,652 ) -65.5 % Other 1,754 0.9 % 5,269 6.7 % 4,111 4.7 % 3,647 1.0 % (20,837 ) -6.5 % $ 800 0.4 % $ 800 1.0 % $ (9,578 ) 11.0 % $ 146,172 40.8 % $ (103,115 ) -32.2 % Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The major temporary differences that give rise to the deferred tax assets and liabilities include depreciation, allowances for bad debt, expense accruals, state income tax deductions and net operating losses. The federal income tax returns of the Company for 2015, 2014 and 2013 are subject to examination by the Internal Revenue Service, generally for three years after they were filed. California income tax returns for 2015, 2014, 2013 and 2012 are subject to examination by the Franchise Tax Board, generally for four years after they were filed. As of December 31, 2016, the Company has federal and state NOL carryovers of approximately $354,000 and $221,000, respectively. If unused, the carryovers will expire in 2035 and 2036. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | 8. Subsequent Events The Company has evaluated all subsequent events through March 23, 2017, the date the financial statements were available to be issued, and did not note any events that must be disclosed to keep the financial statements from being misleading. |
Summary of Significant Accoun14
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Summary of Significant Accounting Policies [Abstract] | |
Method of Accounting | Method of Accounting The financial statements of the Company have been prepared on the accrual basis of accounting in accordance with generally accepted accounting principles in the United States of America. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments with original maturities of year or less at the time of purchase to be cash equivalents, and maintain its cash in bank deposit accounts at high credit quality financial institutions. Effective January 1, 2013, all interest bearing and non-interest bearing transaction accounts are guaranteed by the Federal Deposit Insurance Corporation (FDIC) up to $250,000 indefinitely. The Company periodically maintains cash balances in excess of FDIC coverage. Management considers this to be a normal business risk. |
Concentration of Credit Risk | Concentration of Credit Risk For the years ending December 31, 2016, 2015, 2014, and 2012, one customer accounted for 10%, 10%, 10%, and 12%, respectively, of the Company’s revenue. The customer has serving locations and is a distributor of the Company’s product. The loss of this account could have an adverse impact on the Company. For the year ending December 31, 2013, no one customer accounted for more than 10% of the Company’s revenue. As of December 31, 2016, 2015, 2013 and 2012 one customer accounted for approximately 14%, 10%, 13%, and 11%, respectively, of the accounts receivable of the Company. As of December 31, 2014 there was no accounts receivable concentration credit risk. For the years ending December 31, 2016, 2015, 2014, 2013 and 2012 one vendor accounted for 49%, 56%, 50%, 63% and 48%, respectively, of the Company’s green bean coffee purchases. See Note 6 to the financial statements. The loss of this vendor could have an adverse impact on the Company. As of December 31, 2016, vendors A, B, C and D accounted for 10%, 14%, 21% and 10% of the Company’s accounts payable. As of December 31, 2015, vendors A, B, and C accounted for approximately 12%, 45% and 15% of the Company’s accounts payable. As of December 31, 2014, 2013 and 2012, vendor A accounted for approximately 31%, 14%, and 49%, respectively, of the accounts payable of the Company. |
Accounts Receivable | Accounts Receivable The Company extends credit to customers in the normal course of business and performs ongoing credit evaluations of customers, maintaining allowances for potential credit losses which, when realized, have been within management’s expectations. Invoices are aged based on terms with the customer. The Company utilizes a percentage method to establish the allowance for doubtful accounts. The estimated allowance ranges from 1% to 10% of outstanding receivables based on factors pertaining to the credit risk of specific customers, historical trends and other information. Delinquent accounts are written off when it is determined that amounts are uncollectible. The allowance for doubtful accounts is based on historical information, and recorded as a charge to operating expense. At December 31, 2016, 2015, 2014, 2013 and 2012 the Company’s allowance for doubtful accounts was $6,878, $5,912, $5,805, $5,170 and $7,635, respectively. The bad debt-write-offs for the years ended December 31, 2016, 2015, 2014, 2013 and 2012 were $1,641, $123, $47, $466, and $1,638 respectively. |
Inventory | Inventory Inventory is stated at the lower of cost, determined using the first-in, first-out method, or market. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost and depreciated over their estimated useful lives using the straight-line method for financial reporting purposes and accelerated methods for income tax reporting purposes; maintenance and repair costs are charged against operations as incurred. The estimated useful lives of the assets are as follows: Estimated Useful Lives Automobiles 5 years Equipment and fixtures 5 - 7 years Office furniture and equipment 5 - 7 years Leased equipment 5 - 12 years Leasehold improvements 7 - 39 years |
Revenue Recognition | Revenue Recognition Sales are recognized when revenue is realized or becomes realizable and has been earned. In general, revenue is recognized when the earnings process is complete, which is upon shipment of products. |
Shipping and Handling Charges | Shipping and Handling Charges The Company reports shipping and handling fees charged to customers as part of freight, an operating expense. The associated expense is reported in the same account. |
Sales Tax | Sales Tax States impose sales tax on certain sales to nonexempt customers. The Company collects that sales tax from customers and remits the entire amount to the state. The Company’s accounting policy is to exclude the tax collected and remitted to the state from revenues and cost of goods sold. |
Advertising | Advertising Advertising costs are expensed as incurred. The advertising costs incurred for the years ended December 31, 2016, 2015, 2014, 2013 and 2012 were $11,333, $10,394, $13,205, $5,152, and $44,141, respectively. |
Comprehensive Income | Comprehensive Income The Company has no components of other comprehensive income other than net income, and accordingly, the comprehensive income is equivalent to the net income for the years presented. |
Income Taxes | Income Taxes The Company accounts for income taxes under the asset and liability method. As such, deferred income tax assets and liabilities are recognized for the future tax consequences of the differences between the financial statement carrying amount of existing assets and liabilities and their respective tax basis. Deferred income tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. A valuation allowance is established when necessary to reduce deferred tax assets to the amount expected to be realized. |
Uncertain Tax Positions | Uncertain Tax Positions The Company accounts for uncertainty in income taxes, by designating a recognition threshold and measurement attribute for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return and also considers various related matters such as de-recognition, interest, penalties, and disclosures required. The Company’s management has determined that no unrecognized tax benefits or liabilities were to be recognized or disclosed in the financial statements. The Company accrues interest and penalties associated with uncertain tax positions as a part of operating expenses. As of December 31, 2016, 2015, 2014, 2013 and 2012, there were no accrued interest or penalties associated with uncertain tax positions. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Accordingly, actual results could differ from those estimates. |
Recent Relevant Accounting Guidance Not Yet Effective | Recent Relevant Accounting Guidance Not Yet Effective In February 2016, the FASB issued Accounting Standards Update (ASU) 2016-02, Leases (Topic 842) In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements - Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern, which is intended to define management’s responsibility to evaluate whether there is substantial doubt about an organization’s ability to continue as a going concern within one year after the date that the financial statements are issued (or within one year after the date that the financial statements are available to be issued when applicable) and to provide related footnote disclosures. The ASU provides guidance to an organization’s management, with principles and definitions that are intended to reduce diversity in the timing and content of disclosures that are commonly provided by organizations today in the financial statement footnotes. The ASU is effective for annual periods ending after December 15, 2016. Early adoption is permitted. The Company is currently evaluating the effects of this ASU on its financial statements and disclosures. |
Variable Interest Entities | Variable Interest Entities The Company holds a financial interest in an entity owned by its majority stockholders. The interest consists of the related party leasing arrangement more fully described in Note 6 to these financial statements. This interest is considered to be a Variable Interest Entity (VIE) for accounting purposes. Due to the nature and amount of the Company’s financial obligations with respect to the VIE, the Company is not considered to financially control the VIE, therefore the Company is not required to consolidate the VIE in these financial statements. |
Summary of Significant Accoun15
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Summary of Significant Accounting Policies [Abstract] | |
Schedule of estimated useful lives of assets | Estimated Useful Lives Automobiles 5 years Equipment and fixtures 5 - 7 years Office furniture and equipment 5 - 7 years Leased equipment 5 - 12 years Leasehold improvements 7 - 39 years |
Inventory (Tables)
Inventory (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Inventory [Abstract] | |
Schedule of inventory | 2016 2015 2014 2013 2012 Coffee: Unroasted $ 168,003 $ 185,766 $ 105,708 $ 69,693 $ 79,644 Roasted 55,066 49,419 47,029 51,971 42,185 Tea 1,690 1,830 1,377 1,155 567 Packaging, supplies and other merchandise held for sale 54,992 79,109 50,328 82,510 78,980 Total inventory $ 279,751 $ 316,124 $ 204,442 $ 205,329 $ 201,376 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property and Equipment [Abstract] | |
Schedule of property and equipment | 2016 2015 2014 2013 2012 Automobiles $ 146,133 $ 105,628 $ 105,628 $ 42,387 $ 36,863 Equipment and fixtures 506,939 490,095 481,853 424,982 416,704 Office furniture and equipment 138,715 131,778 115,866 75,483 72,976 Leased equipment 214,796 177,088 106,886 106,886 106,886 Leasehold improvements 352,237 349,087 342,397 306,284 280,053 Trademarks - - - - 5,127 Package design 41,000 41,000 41,000 - - Website 19,000 19,000 - - 2,800 1,418,820 1,313,676 1,193,630 956,022 921,409 Accumulated depreciation (992,441 ) (868,286 ) (761,962 ) (678,793 ) (613,421 ) Total property and equipment $ 426,379 $ 445,390 $ 431,668 $ 277,229 $ 307,988 |
Long Term Debt (Tables)
Long Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Long Term Debt [Abstract] | |
Schedule of long-term debt | 2016 2015 2014 2013 2012 Long Term Debt Savings Bank of Mendocino, payable in monthly installments of $4,309, interest at 7.25%, collateralized by a security interest of substanially all of the Company's assets. $ - $ - $ - $ 45,738 $ 88,515 Hansel Ford, payable in monthly installments of $385, including interest at .90%, collateralized by equipment, final payment due on March 14, 2019. 10,290 14,796 19,260 - - Hansel Ford, payable in monthly installments of $385, including interest at .90%, collateralized by equipment, final payment due on March 14, 2019. 10,290 14,796 19,260 - - Bank of the West, payable in monthly installments of $489, including interest at 12.69%, collateralized by equipment, final payment due on May 1, 2013. - - - - 2,369 US Bancorp, payable in monthly installments of $621, including interest at 14.32%, collateralized by equipment, final payment due on September 8, 2014. - - - 5,275 11,486 Bank of the West, payable in monthly installments of $427, including interest at 11.83%, collateralized by equipment, final payment due on April 1, 2015. - - 1,258 5,930 10,084 Bank of the West, payable in monthly installments of $787.03, including interest at 9.234%, collateralized by equipment, final payment due January 1, 2021. 47,020 59,622 - - - Bank of the West, payable in monthly installments of $1,465, including interest at 9.227%, collateralized by equipment, final payment due January 1, 2020. 31,486 - - - - Hansel Ford, payable in monthly installments of $806.38, including interest at 1.939%, collateralized by equipment, final payment due on April 10, 2020. 31,211 - - - - 130,297 89,214 39,778 56,943 112,454 Less current portion of long term debt (38,004 ) (21,614 ) (10,186 ) (55,594 ) (58,976 ) Long term debt $ 92,293 $ 67,600 $ 29,592 $ 1,349 $ 53,478 |
Schedule of maturities of long-term debt | Years Ended December 31, 2017 $ 38,004 2018 44,321 2019 35,770 2020 12,202 $ 130,297 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Schedule of minimum future rental payments under non-cancelable facilities operating leases | Years Ended December 31, 2017 $ 103,200 2016 103,200 2017 103,200 2018 103,200 2019 103,200 2020 and thereafter 352,600 $ 868,600 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Taxes [Abstract] | |
Shcedule of provision for income taxes | 2016 2015 2014 2013 2012 Current state provision (credit) $ 800 $ 800 $ (3,751 ) $ 32,419 $ 5,351 Deferred provision (credit) Federal - - (7,829 ) 113,002 (105,173 ) State - - 2,002 1,291 (3,293 ) Total deferred provision (credit) - - (5,827 ) 114,293 (108,466 ) Total provision (credit) $ 800 $ 800 $ (9,578 ) $ 146,712 $ (103,115 ) |
Components of deferred tax assets and liabilities | 2016 2015 2014 2013 2012 Net Operating Losses $ 133,265 $ 81,580 $ 62,456 $ - $ 111,653 Depreciation (38,826 ) (51,513 ) (55,220 ) (29,756 ) (17,104 ) Other 28,218 17,898 13,777 23,929 13,917 Subtotal 122,657 47,965 21,013 (5,827 ) 108,466 Valuation Allowance (122,657 ) (47,965 ) (21,013 ) - - Net deferred tax asset (liability) $ - $ - $ - $ (5,827 ) $ 108,466 |
Summary of reconciliation of Company's actual effective tax rate to federal statutory tax rate | 2016 2015 2014 2013 2012 Amount % Amount % Amount % Amount % Amount % Pre tax income (loss) $ (190,064 ) $ (78,948 ) $ (87,190 ) $ 358,104 $ 320,034 Federal tax (credit) net (58,730 ) -30.9 % (24,395 ) -30.9 % (26,942 ) -30.9 % 110,654 30.9 % 98,891 30.9 % State tax (credit) (16,916 ) -8.9 % (7,026 ) -8.9 % (7,760 ) -8.9 % 31,871 8.9 % 28,483 8.9 % Valuation allowance 74,692 39.3 % 26,952 34.1 % 21,013 24.1 % - 0.0 % (209,652 ) -65.5 % Other 1,754 0.9 % 5,269 6.7 % 4,111 4.7 % 3,647 1.0 % (20,837 ) -6.5 % $ 800 0.4 % $ 800 1.0 % $ (9,578 ) 11.0 % $ 146,172 40.8 % $ (103,115 ) -32.2 % |
Summary of Significant Accoun21
Summary of Significant Accounting Policies (Details) | 12 Months Ended |
Dec. 31, 2016 | |
Automobiles [Member] | |
Schedule of estimated useful lives of the assets | |
Estimated useful lives | 5 years |
Minimum [Member] | Equipment and fixtures [Member] | |
Schedule of estimated useful lives of the assets | |
Estimated useful lives | 5 years |
Minimum [Member] | Office furniture and equipment [Member] | |
Schedule of estimated useful lives of the assets | |
Estimated useful lives | 5 years |
Minimum [Member] | Leased equipment [Member] | |
Schedule of estimated useful lives of the assets | |
Estimated useful lives | 5 years |
Minimum [Member] | Leasehold improvements [Member] | |
Schedule of estimated useful lives of the assets | |
Estimated useful lives | 7 years |
Maximum [Member] | Equipment and fixtures [Member] | |
Schedule of estimated useful lives of the assets | |
Estimated useful lives | 7 years |
Maximum [Member] | Office furniture and equipment [Member] | |
Schedule of estimated useful lives of the assets | |
Estimated useful lives | 7 years |
Maximum [Member] | Leased equipment [Member] | |
Schedule of estimated useful lives of the assets | |
Estimated useful lives | 12 years |
Maximum [Member] | Leasehold improvements [Member] | |
Schedule of estimated useful lives of the assets | |
Estimated useful lives | 39 years |
Summary of Significant Accoun22
Summary of Significant Accounting Policies (Details Textual) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Summary of Significant Accounting Policies (Textual) | |||||
Amount guaranteed by Federal Deposit Insurance Corporation (FDIC) | $ 250,000 | ||||
Allowance for doubtful accounts | 6,878 | $ 5,912 | $ 5,805 | $ 5,170 | $ 7,635 |
Bad debt written off | 1,641 | 123 | 47 | 466 | 1,638 |
Advertising costs | 11,333 | 10,394 | 13,205 | 5,152 | 44,141 |
Accrued interest or penalties | |||||
Minimum [Member] | |||||
Summary of Significant Accounting Policies (Textual) | |||||
Percentage of allowance range on outstanding receivables | 1.00% | ||||
Maximum [Member] | |||||
Summary of Significant Accounting Policies (Textual) | |||||
Percentage of allowance range on outstanding receivables | 10.00% | ||||
Revenue [Member] | |||||
Summary of Significant Accounting Policies (Textual) | |||||
Concentration of risk additional information, Description | For the year ending December 31, 2013, no one customer accounted for more than 10% of the Company's revenue. | ||||
Accounts receivable [Member] | |||||
Summary of Significant Accounting Policies (Textual) | |||||
Concentration of risk additional information, Description | As of December 31, 2014 there was no accounts receivable concentration credit risk. | ||||
One customer [Member] | Revenue [Member] | |||||
Summary of Significant Accounting Policies (Textual) | |||||
Concentration risk, percentage | 10.00% | 10.00% | 10.00% | 12.00% | |
One customer [Member] | Accounts receivable [Member] | |||||
Summary of Significant Accounting Policies (Textual) | |||||
Concentration risk, percentage | 14.00% | 10.00% | 13.00% | 11.00% | |
One vendor [Member] | Green bean coffee purchases [Member] | |||||
Summary of Significant Accounting Policies (Textual) | |||||
Concentration risk, percentage | 49.00% | 56.00% | 50.00% | 63.00% | 48.00% |
Vendor A [Member] | Accounts payable [Member] | |||||
Summary of Significant Accounting Policies (Textual) | |||||
Concentration risk, percentage | 10.00% | 12.00% | 31.00% | 14.00% | 49.00% |
Vendor B [Member] | Accounts payable [Member] | |||||
Summary of Significant Accounting Policies (Textual) | |||||
Concentration risk, percentage | 14.00% | 45.00% | |||
Vendor C [Member] | Accounts payable [Member] | |||||
Summary of Significant Accounting Policies (Textual) | |||||
Concentration risk, percentage | 21.00% | 15.00% | |||
Vendor D [Member] | Accounts payable [Member] | |||||
Summary of Significant Accounting Policies (Textual) | |||||
Concentration risk, percentage | 10.00% |
Inventory (Details)
Inventory (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Inventory [Line Items] | |||||
Total inventory | $ 279,751 | $ 316,124 | $ 204,442 | $ 205,329 | $ 201,376 |
Coffee: Unroasted [Member] | |||||
Inventory [Line Items] | |||||
Total inventory | 168,003 | 185,766 | 105,708 | 69,693 | 79,644 |
Coffee: Roasted [Member] | |||||
Inventory [Line Items] | |||||
Total inventory | 55,066 | 49,419 | 47,029 | 51,971 | 42,185 |
Tea [Member] | |||||
Inventory [Line Items] | |||||
Total inventory | 1,690 | 1,830 | 1,377 | 1,155 | 567 |
Packaging, supplies and other merchandise held for sale [Member] | |||||
Inventory [Line Items] | |||||
Total inventory | $ 54,992 | $ 79,109 | $ 50,328 | $ 82,510 | $ 78,980 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment [Line Items] | |||||
Property and equipment ,gross | $ 1,418,820 | $ 1,313,676 | $ 1,193,630 | $ 956,022 | $ 921,409 |
Accumulated depreciation | (992,441) | (868,286) | (761,962) | (678,793) | (613,421) |
Total property and equipment | 426,379 | 445,390 | 431,668 | 277,229 | 307,988 |
Trademarks [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment ,gross | 5,127 | ||||
Package design [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment ,gross | 41,000 | 41,000 | 41,000 | ||
Website [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment ,gross | 19,000 | 19,000 | 2,800 | ||
Automobiles [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment ,gross | 146,133 | 105,628 | 105,628 | 42,387 | 36,863 |
Equipment and fixtures [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment ,gross | 506,939 | 490,095 | 481,853 | 424,982 | 416,704 |
Office furniture and equipment [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment ,gross | 138,715 | 131,778 | 115,866 | 75,483 | 72,976 |
Leased equipment [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment ,gross | 214,796 | 177,088 | 106,886 | 106,886 | 106,886 |
Leasehold improvements [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment ,gross | $ 352,237 | $ 349,087 | $ 342,397 | $ 306,284 | $ 280,053 |
Property and Equipment (Detai25
Property and Equipment (Details Textual) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Property and Equipment (Textual) | |||||
Depreciation expense | $ 124,155 | $ 106,849 | $ 83,169 | $ 73,823 | $ 80,925 |
Note Receivable (Details)
Note Receivable (Details) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 31, 2012 |
Note Receivable (Textual) | |||||||
Note receivable | $ 29,728 | $ 29,054 | $ 64,731 | $ 72,450 | $ 79,374 | $ 75,000 | |
Repayment on note receivable | $ 15,000 | $ 15,000 | $ 7,500 | $ 5,000 | |||
Annually interest rate | 7.00% | ||||||
Accrued interest | $ 843 | ||||||
Subsequent Event [Member] | |||||||
Note Receivable (Textual) | |||||||
Repayment on note receivable | $ 32,500 |
Long Term Debt (Details)
Long Term Debt (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Debt Instrument [Line Items] | |||||
Long term debt gross | $ 130,297 | $ 89,214 | $ 39,778 | $ 56,943 | $ 112,454 |
Less current portion of long term debt | (38,004) | (21,614) | (10,186) | (55,594) | (58,976) |
Long term debt | 92,293 | 67,600 | 29,592 | 1,349 | 53,478 |
Savings Bank of Mendocino [Member] | |||||
Debt Instrument [Line Items] | |||||
Long term debt gross | 45,738 | 88,515 | |||
Hansel Ford due on March 14, 2019 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long term debt gross | 10,290 | 14,796 | 19,260 | ||
Hansel Ford March 14, 2019 one [Member] | |||||
Debt Instrument [Line Items] | |||||
Long term debt gross | 10,290 | 14,796 | 19,260 | ||
Bank of the West due on May 1, 2013 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long term debt gross | 2,369 | ||||
US Bancorp due on September 8, 2014 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long term debt gross | 5,275 | 11,486 | |||
Bank of the West due on April 1, 2015 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long term debt gross | 1,258 | 5,930 | 10,084 | ||
Bank of the West due January 1, 2021 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long term debt gross | 47,020 | 59,622 | |||
Bank of the West due January 1, 2020 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long term debt gross | 31,486 | ||||
Hansel Ford due on April 10, 2020 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long term debt gross | $ 31,211 |
Long Term Debt (Details 1)
Long Term Debt (Details 1) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Maturities of long-term debt | |||||
2,017 | $ 38,004 | ||||
2,018 | 44,321 | ||||
2,019 | 35,770 | ||||
2,020 | 12,202 | ||||
Long-term debt | $ 130,297 | $ 89,214 | $ 39,778 | $ 56,943 | $ 112,454 |
Long Term Debt (Details Textual
Long Term Debt (Details Textual) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Long Term Debt (Textual) | |||||
Interest rate | 7.00% | ||||
Interest expense | $ 9,400 | $ 5,877 | $ 15,996 | $ 6,904 | $ 13,819 |
Savings Bank of Mendocino [Member] | |||||
Long Term Debt (Textual) | |||||
Long term debt monthly installments payable | $ 4,309 | ||||
Interest rate | 7.25% | ||||
Hansel Ford due on March 14, 2019 [Member] | |||||
Long Term Debt (Textual) | |||||
Long term debt monthly installments payable | $ 385 | ||||
Interest rate | 0.90% | ||||
Long term debt maturity date | Mar. 14, 2019 | ||||
Hansel Ford March 14, 2019 one [Member] | |||||
Long Term Debt (Textual) | |||||
Long term debt monthly installments payable | $ 385 | ||||
Interest rate | 0.90% | ||||
Long term debt maturity date | Mar. 14, 2019 | ||||
Bank of the West due on May 1, 2013 [Member] | |||||
Long Term Debt (Textual) | |||||
Long term debt monthly installments payable | $ 489 | ||||
Interest rate | 12.69% | ||||
Long term debt maturity date | May 1, 2013 | ||||
US Bancorp due on September 8, 2014 [Member] | |||||
Long Term Debt (Textual) | |||||
Long term debt monthly installments payable | $ 621 | ||||
Interest rate | 14.32% | ||||
Long term debt maturity date | Sep. 8, 2014 | ||||
Bank of the West due on April 1, 2015 [Member] | |||||
Long Term Debt (Textual) | |||||
Long term debt monthly installments payable | $ 427 | ||||
Interest rate | 11.83% | ||||
Long term debt maturity date | Apr. 1, 2015 | ||||
Bank of the West due January 1, 2021 [Member] | |||||
Long Term Debt (Textual) | |||||
Long term debt monthly installments payable | $ 787.03 | ||||
Interest rate | 9.234% | ||||
Long term debt maturity date | Jan. 1, 2021 | ||||
Bank of the West due January 1, 2020 [Member] | |||||
Long Term Debt (Textual) | |||||
Long term debt monthly installments payable | $ 1,465 | ||||
Interest rate | 9.227% | ||||
Long term debt maturity date | Jan. 1, 2020 | ||||
Hansel Ford due on April 10, 2020 [Member] | |||||
Long Term Debt (Textual) | |||||
Long term debt monthly installments payable | $ 806.38 | ||||
Interest rate | 1.939% | ||||
Long term debt maturity date | Apr. 10, 2020 |
Related Party Transactions (Det
Related Party Transactions (Details) | Dec. 31, 2016USD ($) |
Minimum future rental payments under non-cancelable facilities operating leases | |
2,017 | $ 103,200 |
2,016 | 103,200 |
2,017 | 103,200 |
2,018 | 103,200 |
2,019 | 103,200 |
2020 and thereafter | 352,600 |
Total | $ 868,600 |
Related Party Transactions (D31
Related Party Transactions (Details Textual) - USD ($) | Jan. 03, 2015 | Jul. 01, 2011 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Related Party Transactions (Textual) | |||||||
Operating lease monthly rental payments | $ 8,600 | $ 8,600 | |||||
Rent reduced for fire damage | $ 4,500 | ||||||
Operating lease maturity term | The ten-year lease term ends May 31, 2025. | ||||||
Rent payments | $ 103,200 | $ 103,200 | $ 54,000 | $ 54,000 | $ 54,000 | ||
Amount owned to ETICO | $ 40,246 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Provision for income taxes | |||||
Current state provision (credit) | $ 800 | $ 800 | $ (3,751) | $ 32,419 | $ 5,351 |
Deferred provision (credit) | |||||
Federal | (7,829) | 113,002 | (105,173) | ||
State | 2,002 | 1,291 | (3,293) | ||
Total deferred provision (credit) | (5,827) | 114,293 | (108,466) | ||
Total provision (credit) | $ 800 | $ 800 | $ (9,578) | $ 146,712 | $ (103,115) |
Income Taxes (Details 1)
Income Taxes (Details 1) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Taxes [Abstract] | |||||
Net Operating Losses | $ 133,265 | $ 81,580 | $ 62,456 | $ 111,653 | |
Depreciation | (38,826) | (51,513) | (55,220) | (29,756) | (17,104) |
Other | 28,218 | 17,898 | 13,777 | 23,929 | 13,917 |
Subtotal | 122,657 | 47,965 | 21,013 | (5,827) | 108,466 |
Valuation Allowance | (122,657) | (47,965) | (21,013) | ||
Net deferred tax asset (liability) | $ (5,827) | $ 108,466 |
Income Taxes (Details 2)
Income Taxes (Details 2) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Statutory federal income tax rate and the effective rate reconciliation | |||||
Pre tax income (loss) | $ (190,064) | $ (78,948) | $ (87,190) | $ 358,104 | $ 320,034 |
Federal tax (credit) net | (58,730) | (24,395) | (26,942) | 110,654 | 98,891 |
State tax (credit) | (16,916) | (7,026) | (7,760) | 31,871 | 28,483 |
Valuation allowance | 74,692 | 26,952 | 21,013 | (209,652) | |
Other | 1,754 | 5,269 | 4,111 | 3,647 | (20,837) |
Effective tax rate to the federal statutory tax | $ 800 | $ 800 | $ (9,578) | $ 146,712 | $ (103,115) |
Statutory federal income tax rate and the effective rate reconciliation, rate | |||||
Pre tax income (loss), rate | |||||
Federal tax (credit) net, rate | (30.90%) | (30.90%) | (30.90%) | 30.90% | 30.90% |
State tax (credit), rate | (8.90%) | (8.90%) | (8.90%) | 8.90% | 8.90% |
Valuation allowance, rate | 39.30% | 34.10% | 24.10% | 0.00% | (65.50%) |
Other, rate | 0.90% | 6.70% | 4.70% | 1.00% | (6.50%) |
Effective tax rate to the federal statutory tax, rate | 0.40% | 1.00% | 11.00% | 40.80% | (32.20%) |
Income Taxes (Details Textual)
Income Taxes (Details Textual) | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Income Taxes (Textual) | |
Actual effective tax rate to federal statutory tax rate | 34.00% |
Federal net operating loss carryovers | $ 354,000 |
State net operating loss carryovers | $ 221,000 |
Federal and state net operating loss carryovers expire, description | The carryovers will expire in 2035 and 2036. |