Thanksgiving Coffee (TCCI) 10-Q 15 Aug 18 2018 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information	6 Months Ended
	Jun. 30, 2018shares
Document Information [Line Items]
Entity Registrant Name	THANKSGIVING COFFEE CO INC
Entity Central Index Key	949,852
Trading Symbol	tcci
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Document Type	10-Q
Document Period End Date	Jun. 30, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q2
Amendment Flag	false
Common Class B [Member]
Document Information [Line Items]
Entity Common Stock, Shares Outstanding (in shares)	0
Common Class A [Member]
Document Information [Line Items]
Entity Common Stock, Shares Outstanding (in shares)	1,236,744

Balance Sheets (Current Period

Balance Sheets (Current Period Unaudited) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Current assets
Cash	$ 127,635	$ 160,392
Accounts receivable, net of allowance	217,533	229,877
Inventories	200,973	262,108
Prepaid expenses	80,975	57,780
Total current assets	627,116	710,157
Property and equipment
Property and equipment	1,459,693	1,474,406
Accumulated depreciation	(1,121,535)	(1,109,787)
Total property and equipment	338,158	364,619
Other assets
Deposits and other assets	4,168	3,112
Total other assets	4,168	3,112
Total assets	969,442	1,077,888
Current liabilities
Accounts payable	170,513	213,942
Accrued Liabilities	63,570	65,299
Current portion of long term debt	48,262	46,476
Total current liabilities	282,345	325,717
Long term debt
Long-term debt	109,931	114,229
Less current portion of long term debt	(48,262)	(46,476)
Total long term debt	61,669	67,753
Total liabilities	344,014	393,470
Shareholders' equity
Common stock, no par value, 1,960,000 shares authorized, 1,236,744 shares issued and outstanding	861,816	861,816
Additional paid in capital	24,600	24,600
Accumulated deficit	(260,988)	(201,998)
Total shareholders' equity	625,428	684,418
Total liabilities and shareholders' equity	$ 969,442	$ 1,077,888

Balance Sheets (Current Period3

Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares $ / shares in Thousands	Jun. 30, 2018	Dec. 31, 2017
Common stock, no par value (in dollars per share)	$ 0	$ 0
Common stock, authorized (in shares)	1,960,000	1,960,000
Common stock, issued (in shares)	1,236,744	1,236,744
Common stock, outstanding (in shares)	1,236,744	1,236,744

Statements of Operations (Unaud

Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Income
Net sales	$ 818,755	$ 948,802	$ 1,613,791	$ 1,768,098
Cost of sales	454,435	565,069	937,512	1,019,994
Gross profit	364,320	383,733	676,279	748,104
Operating expenses
Selling, general and administrative expenses	318,373	344,055	683,864	706,719
Depreciation and amortization	25,886	22,282	47,268	44,458
Total operating expenses	344,259	366,337	731,132	751,177
Operating profit/ (loss)	20,061	17,396	(54,853)	(3,073)
Other expense
Interest expense	(1,745)		(3,404)
Miscellaneous expense	(1,562)	(30,750)	67	(30,750)
Total other income (expense)	(3,307)	(30,750)	(3,337)	(30,750)
Profit/ (loss) before income taxes	16,754	(13,354)	(58,190)	(33,823)
Income tax expense	(800)	0	(800)	(800)
Net profit/ (loss)	$ 15,954	$ (13,354)	$ (58,990)	$ (34,623)
Profit/ (loss) per share (basic and dilutive) (in dollars per share)	$ 0.013	$ (0.011)	$ (0.048)	$ (0.028)
Weighted average number of shares (in shares)	1,236,744	1,236,744	1,236,744	1,236,744

Statements of Cash Flows (Unaud

Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Operating activities
Net loss	$ (58,990)	$ (34,623)
Adjustments to reconcile net loss to cash flows from operating activities:
Depreciation and amortization	47,268	63,449
(Increase) decrease in:
Accounts receivable	12,344	16,047
Inventories	61,136	31,809
Prepaid expenses	(23,195)	26,291
Deposits and other assets	(1,056)	3,442
Increase (decrease) in:
Accounts payable	(43,429)	(87,077)
Accrued liabilities	(1,729)	(5,050)
Net cash provided by (used in) operating activities	(7,651)	14,288
Investing activities
Purchases of property and equipment	(20,808)	(12,941)
Net cash (used in) investing activities	(20,808)	(12,941)
Financing activities
(Increase) in notes receivables		(2,969)
(Repayments) issuances of notes payable and capital leases	(4,298)	(19,174)
Net cash (used in) financing activities	(4,298)	(22,143)
Increase (decrease) in cash	(32,757)	(20,796)
Cash at beginning of period	160,392	149,936
Cash at end of period	$ 127,635	$ 129,140

Statements of Cash Flows (Unau6

Statements of Cash Flows (Unaudited) (Parentheticals)	6 Months Ended
	Jun. 30, 2018USD ($)
Cash paid for income taxes	$ 800

Note 1 - Basis of Presentation

Note 1 - Basis of Presentation	6 Months Ended
	Jun. 30, 2018
Notes to Financial Statements
Business Description and Basis of Presentation [Text Block]	1. Basis of Presentation The unaudited condensed financial statements in this Form 10 10 10 X. 2017 10 December 31, 2017 10 The interim financial information in this Form 10 six June 30, 2018 not Concentration of Risk In the first 2018, one 16.91% 2009. Income Taxes The Company accounts for income taxes under the asset and liability method as prescribed by ASC 740, Accounting for Income Taxes A valuation allowance is established, when necessary, to reduce deferred tax assets to the amount expected to be realized. 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.

Note 2 - Accounts Receivable

Note 2 - Accounts Receivable	6 Months Ended
	Jun. 30, 2018
Notes to Financial Statements
Loans, Notes, Trade and Other Receivables Disclosure [Text Block]	2. Accounts Receivable Accounts receivable consist of the following: 6/30/2018 12/31/2017 Accounts receivable $ 223,696 $ 236,116 Less: allowance for doubtful accounts (6,163 ) (6,239 ) Net accounts receivable $ 217,533 $ 229,877 The Company utilizes a percentage method to establish the allowance for doubtful accounts. The estimated allowance ranges from 1% 10% six June 30, 2018 2017 $316 $907

Note 3 - Inventories

Note 3 - Inventories	6 Months Ended
	Jun. 30, 2018
Notes to Financial Statements
Inventory Disclosure [Text Block]	3. Inventories Inventories consist of the following: 6/30/2018 12/31/2017 Coffee Unroasted $ 101,817 $ 166,865 Roasted 48,609 43,689 Tea 1,391 2,249 Packaging, supplies and other merchandise held for sale 49,156 49,305 Total inventories $ 200,973 $ 262,108

Note 4 - Property and Equipment

Note 4 - Property and Equipment	6 Months Ended
	Jun. 30, 2018
Notes to Financial Statements
Property, Plant and Equipment Disclosure [Text Block]	4. Property and equipment consist of the following: 6/30/2018 12/31/2017 Equipment $ 490,985 $ 517,526 Furniture and fixtures 138,008 145,089 Leasehold improvements 358,498 358,498 Transportation equipment 178,497 178,497 Package design 41,000 41,000 Capitalized website development costs 19,000 19,000 Property held under capital leases 233,705 214,796 Total property and equipment 1,459,693 1,474,406 Accumulated depreciation (1,121,535 ) (1,109,787 ) Property and equipment, net $ 338,158 $ 364,619 Depreciation expense for the six June 30, 2018 2017 $47,268 $44,458

Note 5 - Long Term Debt

Note 5 - Long Term Debt	6 Months Ended
	Jun. 30, 2018
Notes to Financial Statements
Long-term Debt [Text Block]	5 . Long Term Debt (continued) Capital Lease Obligations 6/30/2018 12/31/2017 Bank of the West payable in monthly installments of $787.03, including interest at 9.234% collateralized by equipment, final payment due on January 1, 2021 $ 21,012 $ 24,665 Bank of the West payable in monthly installments of $1,465, including interest at 9.227%, collateralized by equipment, final payment due on January 1, 2020 25,805 33,204 Hansel Ford, payable in monthly installments of $385, including interest at .90%, collateralized by equipment, final payment due on March 14, 2019. 3,453 5,743 Hansel Ford, payable in monthly installments of $385, including interest at .90%, collateralized by equipment, final payment due on March 14, 2019. 3,453 5,743 Savings Bank of Mendocino, payable in monthly installments of $518, interest at 4.24%, collateralized by a security interest of substantially all of the Company's assets, final payment due on December 28, 2021. 20,172 22,816 Pawnee Leasing payable in monthly installments of $528, including interest at 15.178%, collateralized by equipment, final payment due on May 15, 2022 18,621 - Hansel Ford, payable in monthly installments of $806.38, including interest at 1.939%, collateralized by equipment, final payment due on April 10, 2020. 17,415 22,058 $ 109,931 $ 114,229 Less current portion (48,262 ) (46,476 ) Long term portion of notes payable $ 61,669 $ 67,753 Interest paid for the six June 30, 2018 2017 $3,404 $3,800, As of June 30, 2018, five Years Ending June 30, 2018 $ 48,789 2019 36,925 2020 15,664 2021 8,553 $ 109,931

Note 6 - Income Taxes

Note 6 - Income Taxes	6 Months Ended
	Jun. 30, 2018
Notes to Financial Statements
Income Tax Disclosure [Text Block]	6 . Income Taxes Deferred income taxes arise from temporary timing differences in the recognition of income and expenses for financial reporting and tax purposes. The Company’s deferred tax assets consist of the benefit from net operating loss (NOL) carryforwards and temporary differences. The net operating loss carryforwards expire in various years through 2034. may

Note 7 - Operating Leases

Note 7 - Operating Leases	6 Months Ended
	Jun. 30, 2018
Notes to Financial Statements
Leases of Lessee Disclosure [Text Block]	7 . Operating Leases The Company leases some office equipment under non-cancelable operating leases with terms ranging from three five As of June 30, 2018, five 2018 7,832 2019 6,105 2020 4,696 2021 4,139 2022 1,979 $ 24,751 Total operating lease payments for the six June 30, 2018 2017 $4,264 $4,480

Note 8 - Long Term Leases

Note 8 - Long Term Leases	6 Months Ended
	Jun. 30, 2018
Notes to Financial Statements
Long Term Leases [Text Block]	8. The Company leases its corporate headquarters, warehouse and waterfront facilities from Paul and Joan Katzeff (the Company’s majority shareholders, directors and officers). The lease is classified as an operating lease and provides for monthly rental payments of $8,600. ten May 31, 2025 As of June 30, 2018, five Years ending June 30, 2018 $ 103,200 2019 103,200 2020 103,200 2021 103,200 2022 103,200 Thereafter 180,600 $ 696,600

Note 9 - Related Party Transact

Note 9 - Related Party Transactions	6 Months Ended
	Jun. 30, 2018
Notes to Financial Statements
Related Party Transactions Disclosure [Text Block]	9 . Related Party Transactions As of June 30, 2018, three June 30, 2018, $23,235.

Significant Accounting Policies

Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2018
Accounting Policies [Abstract]
Concentration Risk, Credit Risk, Policy [Policy Text Block]	Concentration of Risk In the first 2018, one 16.91% 2009.
Income Tax, Policy [Policy Text Block]	Income Taxes The Company accounts for income taxes under the asset and liability method as prescribed by ASC 740, Accounting for Income Taxes A valuation allowance is established, when necessary, to reduce deferred tax assets to the amount expected to be realized.
Use of Estimates, Policy [Policy Text Block]	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.

Note 2 - Accounts Receivable (T

Note 2 - Accounts Receivable (Tables)	6 Months Ended
	Jun. 30, 2018
Notes Tables
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]	6/30/2018 12/31/2017 Accounts receivable $ 223,696 $ 236,116 Less: allowance for doubtful accounts (6,163 ) (6,239 ) Net accounts receivable $ 217,533 $ 229,877

Note 3 - Inventories (Tables)

Note 3 - Inventories (Tables)	6 Months Ended
	Jun. 30, 2018
Notes Tables
Schedule of Inventory, Current [Table Text Block]	6/30/2018 12/31/2017 Coffee Unroasted $ 101,817 $ 166,865 Roasted 48,609 43,689 Tea 1,391 2,249 Packaging, supplies and other merchandise held for sale 49,156 49,305 Total inventories $ 200,973 $ 262,108

Note 4 - Property and Equipme19

Note 4 - Property and Equipment (Tables)	6 Months Ended
	Jun. 30, 2018
Notes Tables
Property, Plant and Equipment [Table Text Block]	6/30/2018 12/31/2017 Equipment $ 490,985 $ 517,526 Furniture and fixtures 138,008 145,089 Leasehold improvements 358,498 358,498 Transportation equipment 178,497 178,497 Package design 41,000 41,000 Capitalized website development costs 19,000 19,000 Property held under capital leases 233,705 214,796 Total property and equipment 1,459,693 1,474,406 Accumulated depreciation (1,121,535 ) (1,109,787 ) Property and equipment, net $ 338,158 $ 364,619

Note 5 - Long Term Debt (Tables

Note 5 - Long Term Debt (Tables)	6 Months Ended
	Jun. 30, 2018
Notes Tables
Schedule of Long-term Debt Instruments [Table Text Block]	Capital Lease Obligations 6/30/2018 12/31/2017 Bank of the West payable in monthly installments of $787.03, including interest at 9.234% collateralized by equipment, final payment due on January 1, 2021 $ 21,012 $ 24,665 Bank of the West payable in monthly installments of $1,465, including interest at 9.227%, collateralized by equipment, final payment due on January 1, 2020 25,805 33,204 Hansel Ford, payable in monthly installments of $385, including interest at .90%, collateralized by equipment, final payment due on March 14, 2019. 3,453 5,743 Hansel Ford, payable in monthly installments of $385, including interest at .90%, collateralized by equipment, final payment due on March 14, 2019. 3,453 5,743 Savings Bank of Mendocino, payable in monthly installments of $518, interest at 4.24%, collateralized by a security interest of substantially all of the Company's assets, final payment due on December 28, 2021. 20,172 22,816 Pawnee Leasing payable in monthly installments of $528, including interest at 15.178%, collateralized by equipment, final payment due on May 15, 2022 18,621 - Hansel Ford, payable in monthly installments of $806.38, including interest at 1.939%, collateralized by equipment, final payment due on April 10, 2020. 17,415 22,058 $ 109,931 $ 114,229 Less current portion (48,262 ) (46,476 ) Long term portion of notes payable $ 61,669 $ 67,753
Schedule of Maturities of Long-term Debt [Table Text Block]	Years Ending June 30, 2018 $ 48,789 2019 36,925 2020 15,664 2021 8,553 $ 109,931

Note 7 - Operating Leases (Tabl

Note 7 - Operating Leases (Tables)	6 Months Ended
	Jun. 30, 2018
Office Equipment [Member]
Notes Tables
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]	2018 7,832 2019 6,105 2020 4,696 2021 4,139 2022 1,979 $ 24,751

Note 8 - Long Term Leases (Tabl

Note 8 - Long Term Leases (Tables)	6 Months Ended
	Jun. 30, 2018
Corporate Headquarters, Warehouse and Waterfront Facilities [Member]
Notes Tables
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]	Years ending June 30, 2018 $ 103,200 2019 103,200 2020 103,200 2021 103,200 2022 103,200 Thereafter 180,600 $ 696,600

Note 1 - Basis of Presentation

Note 1 - Basis of Presentation (Details Textual) - Customer Concentration Risk [Member] - Sales Revenue, Net [Member]	3 Months Ended
	Mar. 31, 2018
Number of Major Customers	1
One Customer [Member]
Concentration Risk, Percentage	16.91%

Note 2 - Accounts Receivable (D

Note 2 - Accounts Receivable (Details Textual) - USD ($)	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Provision (Recovery) for Doubtful Accounts	$ 316	$ (907)
Minimum [Member]
Allowance for Doubtful Accounts Receivable, Percent	1.00%
Maximum [Member]
Allowance for Doubtful Accounts Receivable, Percent	10.00%

Note 2 - Accounts Receivable -

Note 2 - Accounts Receivable - Summary of Accounts Receivable (Details) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Accounts receivable	$ 223,696	$ 236,116
Less: allowance for doubtful accounts	(6,163)	(6,239)
Net accounts receivable	$ 217,533	$ 229,877

Note 3 - Inventories - Summary

Note 3 - Inventories - Summary of Inventories (Details) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Inventories	$ 200,973	$ 262,108
Coffee, Unroasted [Member]
Inventories	101,817	166,865
Coffee, Roasted [Member]
Inventories	48,609	43,689
Tea [Member]
Inventories	1,391	2,249
Packaging, Supplies and Other Merchandise Held for Sale [Member]
Inventories	$ 49,156	$ 49,305

Note 4 - Property and Equipme27

Note 4 - Property and Equipment (Details Textual) - USD ($)	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Depreciation, Total	$ 47,268	$ 44,458

Note 4 - Property and Equipme28

Note 4 - Property and Equipment - Summary of Property and Equipment (Details) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Property and equipment	$ 1,459,693	$ 1,474,406
Accumulated depreciation	(1,121,535)	(1,109,787)
Property and equipment, net	338,158	364,619
Equipment [Member]
Property and equipment	490,985	517,526
Furniture and Fixtures [Member]
Property and equipment	138,008	145,089
Leasehold Improvements [Member]
Property and equipment	358,498	358,498
Transportation Equipment [Member]
Property and equipment	178,497	178,497
Package Design [Member]
Property and equipment	41,000	41,000
Capitalized Website Development Costs [Member]
Property and equipment	19,000	19,000
Assets Held under Capital Leases [Member]
Property and equipment	$ 233,705	$ 214,796

Note 5 - Long Term Debt (Detail

Note 5 - Long Term Debt (Details Textual) - USD ($)	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Interest Paid, Including Capitalized Interest, Operating and Investing Activities, Total	$ 3,404	$ 3,800

Note 5 - Long Term Debt - Summa

Note 5 - Long Term Debt - Summary of Long Term Debt (Details) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Long-term debt	$ 109,931	$ 114,229
Less current portion	(48,262)	(46,476)
Long term portion of notes payable	61,669	67,753
Bank of the West due on January 1, 2021 [Member]
Long-term debt	21,012	24,665
Bank of the West due on January 1, 2020 [Member]
Long-term debt	25,805	33,204
First Hansel Ford due on March 14, 2019 [Member]
Long-term debt	3,453	5,743
Second Hansel Ford due on March 14, 2019 [Member]
Long-term debt	3,453	5,743
Savings Bank of Mendocino due on December 28, 2021 [Member]
Long-term debt	20,172	22,816
Pawnee Leasing payable due on May 15, 2022 [Member]
Long-term debt	18,621
Hansel Ford due on April 10, 2020 [Member]
Long-term debt	$ 17,415	$ 22,058

Note 5 - Long Term Debt - Sum31

Note 5 - Long Term Debt - Summary of Long Term Debt (Details) (Parentheticals) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Bank of the West due on January 1, 2021 [Member]
Monthly installment	$ 787.03	$ 787.03
Interest rate	9.234%	9.234%
Maturity date	Jan. 1, 2021	Jan. 1, 2021
Bank of the West due on January 1, 2020 [Member]
Monthly installment	$ 1,465	$ 1,465
Interest rate	9.227%	9.227%
Maturity date	Jan. 1, 2020	Jan. 1, 2020
First Hansel Ford due on March 14, 2019 [Member]
Monthly installment	$ 385	$ 385
Interest rate	0.90%	0.90%
Maturity date	Mar. 14, 2019	Mar. 14, 2019
Second Hansel Ford due on March 14, 2019 [Member]
Monthly installment	$ 385	$ 385
Interest rate	0.90%	0.90%
Maturity date	Mar. 14, 2019	Mar. 14, 2019
Savings Bank of Mendocino due on December 28, 2021 [Member]
Monthly installment	$ 518	$ 518
Interest rate	4.24%	4.24%
Maturity date	Dec. 28, 2021	Dec. 28, 2021
Pawnee Leasing payable due on May 15, 2022 [Member]
Monthly installment	$ 528
Interest rate	15.178%
Maturity date	May 15, 2022
Hansel Ford due on April 10, 2020 [Member]
Monthly installment	$ 806.38	$ 806.38
Interest rate	1.939%	1.939%
Maturity date	Apr. 10, 2020	Apr. 10, 2020

Note 5 - Long Term Debt - Matur

Note 5 - Long Term Debt - Maturities of Notes Payable and Capital Lease Obligations (Details)	Jun. 30, 2018USD ($)
2,018	$ 48,789
2,019	36,925
2,020	15,664
2,021	8,553
	$ 109,931

Note 7 - Operating Leases (Deta

Note 7 - Operating Leases (Details Textual) - USD ($)	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Operating Leases, Rent Expense, Net, Total	$ 4,264	$ 4,480
Office Equipment [Member] | Minimum [Member]
Lessee, Operating Lease, Term of Contract	3 years
Office Equipment [Member] | Maximum [Member]
Lessee, Operating Lease, Term of Contract	5 years

Note 7 - Operating Leases - Min

Note 7 - Operating Leases - Minimum Annual Lease Payments (Details) - Office Equipment [Member]	Jun. 30, 2018USD ($)
2,018	$ 7,832
2,019	6,105
2,020	4,696
2,021	4,139
2,022	1,979
	$ 24,751

Note 8 - Long Term Leases (Deta

Note 8 - Long Term Leases (Details Textual) - Corporate Headquarters, Warehouse and Waterfront Facilities [Member]	6 Months Ended
	Jun. 30, 2018USD ($)
Operating Leases, Monthly Rental Payment	$ 8,600
Lessee, Operating Lease, Term of Contract	10 years
Lease Expiration Date	May 31, 2025

Note 8 - Long Term Leases - Min

Note 8 - Long Term Leases - Minimum Future Rental Payments Under Non-cancelable Leases (Details) - Corporate Headquarters, Warehouse and Waterfront Facilities [Member]	Jun. 30, 2018USD ($)
2,018	$ 103,200
2,019	103,200
2,020	103,200
2,021	103,200
2,022	103,200
Thereafter	180,600
	$ 696,600

Note 9 - Related Party Transa37

Note 9 - Related Party Transactions (Details Textual)	Jun. 30, 2018USD ($)
Due to Related Parties, Current, Total	$ 23,235