Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Mar. 07, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-36378 | ||
Entity Registrant Name | PROFIRE ENERGY, INC. | ||
Entity Incorporation, State or Country Code | NV | ||
Entity Tax Identification Number | 20-0019425 | ||
Entity Address, Address Line One | 321 South 1250 West Suite 1 | ||
Entity Address, City or Town | Lindon | ||
Entity Address, State or Province | UT | ||
Entity Address, Postal Zip Code | 84042 | ||
City Area Code | 801 | ||
Local Phone Number | 796-5127 | ||
Title of 12(b) Security | Common Stock, $0.001 par value | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 42,532,769 | ||
Trading Symbol | PFIE | ||
Entity Common Stock, Shares Outstanding | 47,514,864 | ||
Documents Incorporated by Reference | Portions of the Profire Energy, Inc. Definitive Proxy Statement for the 2022 Annual Meeting of Stockholders are incorporated by reference into Part III of this report. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001289636 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Audit Information [Abstract] | |
Auditor Name | Sadler, Gibb & Associates, LLC, |
Auditor Location | Salt Lake City, Utah |
Auditor Firm ID | 3627 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 8,188,270 | $ 9,148,312 |
Short-term investments | 1,013,683 | 2,388,601 |
Accounts receivable, net | 6,262,799 | 3,719,508 |
Inventories, net | 7,185,248 | 8,414,772 |
Prepaid expenses and other current assets | 1,025,276 | 1,678,428 |
Income tax receivable | 560,445 | 486,154 |
Total Current Assets | 24,235,721 | 25,835,775 |
LONG-TERM ASSETS | ||
Net deferred tax asset | 163,254 | 0 |
Long-term investments | 8,259,809 | 6,064,294 |
Financing right-of-use asset | 65,280 | 50,094 |
Property and equipment, net | 11,185,539 | 12,021,811 |
Intangible assets, net | 1,549,138 | 1,771,870 |
Goodwill | 2,579,381 | 2,579,381 |
Total Long-Term Assets | 23,802,401 | 22,487,450 |
TOTAL ASSETS | 48,038,122 | 48,323,225 |
CURRENT LIABILITIES | ||
Accounts payable | 1,822,559 | 1,178,979 |
Accrued liabilities | 1,872,348 | 1,196,870 |
Current financing lease liability | 30,214 | 39,451 |
Total Current Liabilities | 3,725,121 | 2,415,300 |
LONG-TERM LIABILITIES | ||
Net deferred income tax liability | 136,106 | 522,870 |
Long-term financing lease liability | 35,912 | 12,669 |
TOTAL LIABILITIES | $ 3,897,139 | $ 2,950,839 |
Preferred stock shares outstanding (in shares) | 0 | 0 |
Preferred stock shares issued (in shares) | 0 | 0 |
Common stock shares outstanding (in shares) | 47,643,233 | 47,972,583 |
Common stock shares issued (in shares) | 51,720,142 | 51,384,961 |
Stockholders' Equity Attributable to Parent [Abstract] | ||
Preferred stock, value, issued | $ 0 | $ 0 |
Common stock, value, issued | 51,720 | 51,385 |
Treasury stock, at cost | (6,107,593) | (5,353,019) |
Additional paid-in capital | 30,819,394 | 30,293,472 |
Accumulated other comprehensive loss | (2,100,467) | (2,148,924) |
Retained earnings | 21,477,929 | 22,529,472 |
TOTAL STOCKHOLDERS' EQUITY | 44,140,983 | 45,372,386 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 48,038,122 | $ 48,323,225 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Preferred stock par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock shares issued (in shares) | 0 | 0 |
Preferred stock shares outstanding (in shares) | 0 | 0 |
Common stock par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock shares issued (in shares) | 51,720,142 | 51,384,961 |
Common stock shares outstanding (in shares) | 47,643,233 | 47,972,583 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE INCOME - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues [Abstract] | ||
Revenues | $ 26,356,176 | $ 21,458,609 |
COST OF SALES | ||
Total Cost of Goods Sold | 14,955,161 | 11,932,408 |
GROSS PROFIT | 11,401,015 | 9,526,201 |
OPERATING EXPENSES | ||
General and administrative | 11,533,496 | 10,641,122 |
Research and development | 1,120,080 | 1,299,103 |
Depreciation and amortization | 762,439 | 666,187 |
Total Operating Expenses | 13,416,015 | 12,606,412 |
LOSS FROM OPERATIONS | (2,015,000) | (3,080,211) |
OTHER INCOME (EXPENSE) | ||
Gain on sale of fixed assets | 192,183 | 306,871 |
Other income (expense) | 8,715 | (67,078) |
Interest income | 133,201 | 181,254 |
Total Other Income | 334,099 | 421,047 |
LOSS BEFORE INCOME TAXES | (1,680,901) | (2,659,164) |
INCOME TAX BENEFIT (note 12) | (629,358) | (483,567) |
NET LOSS | (1,051,543) | (2,175,597) |
OTHER COMPREHENSIVE INCOME (LOSS) | ||
Foreign currency translation gain | 54,006 | 240,013 |
Unrealized gains (losses) on investments | (5,549) | 26,523 |
Total Other Comprehensive Income | 48,457 | 266,536 |
COMPREHENSIVE LOSS | $ (1,003,086) | $ (1,909,061) |
BASIC LOSS PER SHARE (in dollars per share) | $ (0.02) | $ (0.05) |
FULLY DILUTED LOSS PER SHARE (in dollars per share) | $ (0.02) | $ (0.05) |
BASIC WEIGHTED AVG NUMBER OF SHARES OUTSTANDING (in shares) | 48,070,581 | 47,778,063 |
FULLY DILUTED WEIGHTED AVG NUMBER OF SHARES OUTSTANDING (in shares) | 48,070,581 | 47,778,063 |
Product | ||
Revenues [Abstract] | ||
Revenues | $ 23,690,994 | $ 19,395,639 |
COST OF SALES | ||
Total Cost of Goods Sold | 12,825,906 | 10,378,367 |
Service | ||
Revenues [Abstract] | ||
Revenues | 2,665,182 | 2,062,970 |
COST OF SALES | ||
Total Cost of Goods Sold | $ 2,129,255 | $ 1,554,041 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) | Total | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Retained Earnings |
Balance, beginning of period (in shares) at Dec. 31, 2019 | 47,411,977 | |||||
Balance, beginning of period at Dec. 31, 2019 | $ 46,571,586 | $ 50,824 | $ 29,584,172 | $ (2,415,460) | $ (5,353,019) | $ 24,705,069 |
Increase (Decrease) in Stockholders' Equity | ||||||
Stock based compensation | 443,127 | 443,127 | ||||
Stock issued in exercise of stock options (in shares) | 2,000 | |||||
Stock issued in exercise of stock options | 2,020 | $ 2 | 2,018 | |||
Stock issued in settlement of RSUs and accrued bonuses (in shares) | 558,606 | |||||
Stock issued in settlement of RSUs and accrued bonuses | 419,373 | $ 559 | 418,814 | |||
Tax withholdings paid related to stock based compensation | $ (154,659) | (154,659) | ||||
Treasury stock repurchased (in shares) | 0 | |||||
Foreign currency translation | $ 240,013 | 240,013 | ||||
Unrealized gains (losses) on investments | 26,523 | 26,523 | ||||
Net income (loss) available to common stockholders | (2,175,597) | (2,175,597) | ||||
Balance, end of period (in shares) at Dec. 31, 2020 | 47,972,583 | |||||
Balance, end of period at Dec. 31, 2020 | 45,372,386 | $ 51,385 | 30,293,472 | (2,148,924) | (5,353,019) | 22,529,472 |
Increase (Decrease) in Stockholders' Equity | ||||||
Stock based compensation | $ 567,077 | 567,077 | ||||
Stock issued in exercise of stock options (in shares) | 7,000 | 7,000 | ||||
Stock issued in exercise of stock options | $ 6,053 | $ 7 | 6,046 | |||
Stock issued in settlement of RSUs (in shares) | 328,181 | |||||
Stock issued in settlement of RSUs | 0 | $ 328 | (328) | |||
Tax withholdings paid related to stock based compensation | $ (46,873) | (46,873) | ||||
Treasury stock repurchased (in shares) | (664,531) | (664,531) | ||||
Treasury stock repurchased | $ (754,574) | (754,574) | ||||
Foreign currency translation | 54,006 | 54,006 | ||||
Unrealized gains (losses) on investments | (5,549) | (5,549) | ||||
Net income (loss) available to common stockholders | (1,051,543) | (1,051,543) | ||||
Balance, end of period (in shares) at Dec. 31, 2021 | 47,643,233 | |||||
Balance, end of period at Dec. 31, 2021 | $ 44,140,983 | $ 51,720 | $ 30,819,394 | $ (2,100,467) | $ (6,107,593) | $ 21,477,929 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
OPERATING ACTIVITIES | ||
Net loss | $ (1,051,543) | $ (2,175,597) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization expense | 1,255,647 | 1,176,707 |
Gain on sale of fixed assets | (192,183) | (306,871) |
Bad debt expense | 15,979 | 184,293 |
Stock awards issued for services | 567,077 | 443,127 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (2,595,483) | 2,268,435 |
Income taxes receivable/payable | (101,990) | (404,345) |
Inventories | 1,247,004 | 1,216,200 |
Prepaid expenses and other current assets | 705,575 | 157,053 |
Deferred tax asset/liability | (524,791) | 83,595 |
Accounts payable and accrued liabilities | 1,323,635 | (2,378,197) |
Net Cash Provided by Operating Activities | 648,927 | 264,400 |
INVESTING ACTIVITIES | ||
Proceeds from sale of office building | 177,851 | 514,448 |
Sale (purchase) of investments | (826,827) | 2,799,547 |
Purchase of property and equipment | (168,527) | (1,547,331) |
Net Cash Provided by (Used in) Investing Activities | (817,503) | 1,766,664 |
FINANCING ACTIVITIES | ||
Value of equity awards surrendered by employees for tax liability | (46,873) | (154,659) |
Cash received in exercise of stock options | 6,053 | 2,020 |
Purchase of treasury stock | (754,574) | 0 |
Principal paid towards lease liability | (40,745) | (57,796) |
Net Cash Used in Financing Activities | (836,139) | (210,435) |
Effect of exchange rate changes on cash | 44,673 | (31,173) |
NET INCREASE (DECREASE) IN CASH | (960,042) | 1,789,456 |
CASH AT BEGINNING OF PERIOD | 9,148,312 | 7,358,856 |
CASH AT END OF PERIOD | 8,188,270 | 9,148,312 |
CASH PAID FOR: | ||
Interest | 3,205 | 6,090 |
Income taxes | 17,150 | 402,510 |
NON-CASH FINANCING AND INVESTING ACTIVITIES: | ||
Common stock issued in settlement of accrued bonuses | $ 0 | $ 419,373 |
ORGANIZATION AND SUMMARY OF SIG
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization and Line of Business This Organization and Summary of Significant Accounting Policies of Profire Energy, Inc. and subsidiary (the "Company") is presented to assist in understanding the Company's consolidated financial statements. The Company's accounting policies conform to accounting principles generally accepted in the United States of America ("US GAAP"). The Company specializes in the engineering and design of burner-management systems and solutions used on a variety of oilfield and industrial natural-draft fire and forced-air combustion applications. We sell our products and services primarily throughout North America and Canada. Recent Accounting Pronouncements Accounting Standards Update No. 2021-10 —Government Assistance (Topic 832) —Disclosures by Business Entities about Government Assistance This update was issued to increase the transparency of government assistance by requiring entities to disclose the type of government assistance received, how the assistance was accounted for, and the effect of the assistance on the entity's financial statements. The amendments in this update are effective for annual periods beginning after December 15, 2021 and can be applied either prospectively or retrospectively. We evaluated the impact of this new guidance and determined that we will adopt the provisions of ASU 2021-10 as of December 15, 2021 on a retrospective basis. See Note 17 for additional information. The Company has evaluated all other recent accounting pronouncements and determined that the adoption of other pronouncements applicable to the Company has not had, nor is expected to have, a material impact on the Company's financial position, results of operations, or cash flows. Use of Estimates The preparation of financial statements in accordance with US GAAP requires Management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reportable amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Principles of Consolidation The consolidated financial statements include our wholly-owned subsidiaries. Intercompany balances and transactions have been eliminated. Foreign Currency and Comprehensive Income The functional currencies of the Company and its subsidiaries in the United States and Canada are the U.S. Dollar ("USD") and the Canadian Dollar ("CAD"), respectively. The financial statements of the subsidiary Profire Combustion, Inc. were translated to USD using year-end exchange rates for the balance sheet, and average exchange rates for the statements of operations. Equity transactions were translated using historical rates. The period-end exchange rates of 0.7859 and 0.7843 were used to convert the Company's December 31, 2021 and December 31, 2020 balance sheets, respectively, and the statements of operations used weighted average rates of 0.7845 and 0.7809 for the years ended December 31, 2021 and December 31, 2020, respectively. All amounts in the financial statements and footnotes are presumed to be stated in USD, unless otherwise identified. Foreign currency translation gains or losses as a result of fluctuations in the exchange rates are reflected in the Consolidated Statement of Income and Comprehensive Income (Loss), and the Consolidated Statements of Stockholders' Equity. In addition to foreign currency translation gains and losses, the Company recognizes unrealized holding gains and losses on available-for-sale securities as part of comprehensive income, as discussed in the investments policy below. Cash and Cash Equivalents The Company considers highly liquid investments with original maturities of three months or less to be cash equivalents. Certificates of deposit held for investment that are not debt securities are included in "investments-other." Certificates of deposit with remaining maturities greater than one year are classified as "long term investments-other." Our cash and cash equivalents held in FDIC insured institutions can exceed the federally insured limit periodically and at the end of reporting periods. Our balances exceeded federally insured amounts by $6,077,964 and $7,169,564 as of December 31, 2021 and December 31, 2020, respectively. Accounts Receivable Receivables from the sale of goods and services are stated at net realizable value. This value includes an appropriate allowance for estimated uncollectible accounts. The allowance is calculated based on past collectability and customer relationships. The Company recorded an allowance for doubtful accounts of $153,909 and $136,585 as of December 31, 2021 and December 31, 2020, respectively. Uncollectible accounts are written off after all collection efforts have been exhausted and Credit Committee approval is granted. Bad debt expense recognized was $15,979 and $184,293 for the years ended December 31, 2021 and December 31, 2020, respectively. Inventories The Company's inventories are valued at the lower of cost (the purchase price, including additional fees) or market. Inventory costs are determined based on the average cost basis. A reserve for slow-moving and potentially obsolete inventories is recorded as of each balance sheet date and total inventories are presented net of that reserve. Investments Investments consist of available-for-sale debt securities and mutual funds invested in debt securities that the Company carries at fair value. Securities with original maturities of greater than three months at the date of purchase are classified as investments. Of these, bonds with maturities of less than one year, and mutual funds expected to be liquidated within one year from the balance sheet date, are classified as Short Term Investments. Bonds with maturities of greater than one year or mutual funds not expected to be liquidated within one year as of the balance sheet date are classified as Long Term Investments. The Company accumulates unrealized gains and losses, net of tax, on the Company's available-for-sale securities in Accumulated Other Comprehensive Income (Loss) in the Shareholders' Equity section of its balance sheets. Such unrealized gains or losses do not increase or decrease net income for the applicable accounting period. The Company includes realized gains and losses on its available-for-sale securities in other income (expense), in its Statements of Operations. Dividend and interest income earned on all investments is included in earnings as other income. Long-Lived Assets The Company periodically reviews the carrying amount of long-lived assets for impairment. An asset is considered impaired when estimated future cash flows are less than the asset's carrying amount. In the event the carrying amount of such asset is not considered recoverable, the asset is adjusted to its fair value. Goodwill Goodwill represents the difference between the total purchase price and the fair value of assets (tangible and intangible) and liabilities at the date of acquisition. Goodwill is reviewed for impairment annually on December 31, and more frequently as circumstances warrant, and written down only in the period in which the recorded value of such assets exceed their fair value. The Company does not amortize goodwill in accordance with Financial Accounting Standards Board (the "FASB") Accounting Standards Codification ("ASC") 350, "Intangibles—Goodwill and Other" ("ASC 350"). Goodwill is tested for impairment at the reporting unit level. The reporting unit for goodwill testing purposes is the consolidated company as a whole. Other Intangible Assets The Company accounts for Other Intangible Assets under the guidance of ASC 350, "Intangibles—Goodwill and Other." Under such guidance, other intangible assets with definite lives are amortized over their estimated useful lives and tested annually for impairment or more frequently as circumstances warrant. Intangible assets with indefinite lives are tested annually for impairment. Treasury Stock Treasury stock repurchased and held by the Company is recorded as a separate line item on the Consolidated Balance Sheets. Treasury stock is held at cost until retired or reissued. Legal, brokerage, and other costs to acquire shares are not included in the cost of treasury stock. When treasury stock is reissued or retired, any gains are included as part of additional paid-in capital. Losses upon reissuance or retirement reduce additional paid-in capital to the extent that previous net gains from the same class of stock have been recognized and any losses above that are recognized as part of retained earnings. Revenue Recognition The Company's revenue recognition practices follow ASC 606, "Revenue from Contracts with Customers". Refer to Note 11 for further details. Cost of Sales The Company includes product costs (i.e., material, direct labor and overhead costs), shipping and handling expense, production-related depreciation expense and product license agreement expense in cost of sales. Advertising Costs The Company classifies expenses for advertising as general and administrative expenses and recognizes the expense when incurred. The Company incurred advertising costs of $51,212 and $27,098 during the years ended December 31, 2021 and December 31, 2020, respectively. Stock-Based Compensation The Company follows the provisions of ASC 718, "Share-Based Payments," which requires all share-based payments to employees to be recognized in the income statement based on their fair values. The Company uses the Black-Scholes pricing model for determining the fair value of stock options. The intrinsic value method is used to value restricted stock and restricted stock units. The Company has elected to recognize forfeitures as they occur. Concentration of Credit Risk Financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. The Company performs ongoing credit evaluations of its customers and maintains allowances for potential credit losses. Sales to the Company's four largest customers represented approximately 15% and 15% of total sales during the years ended December 31, 2021 and December 31, 2020, respectively. Income Taxes The Company is subject to US income taxes on a stand-alone basis. The Company and its subsidiary, Profire Combustion, Inc. file separate stand-alone tax returns in each jurisdiction in which they operate. Profire Combustion, Inc. is a corporation operating in Canada and is subject to Canadian income taxes on its stand-alone taxable income. The Company utilizes an asset and liability approach for financial accounting and reporting for income taxes. Deferred income taxes are provided for temporary differences on the basis of assets and liabilities as reported for financial statement and income tax purposes. Deferred income taxes reflect the tax effects of net operating loss and tax credit carryovers and temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Realization of certain deferred tax assets is dependent upon future earnings, if any. The Company makes estimates and judgments in determining the need for a provision for income taxes, including the estimation of our taxable income for each full fiscal year. Shipping and Handling Fees and Costs The Company records all amounts billed to customers related to shipping and handling fees as revenue. The Company classifies expenses for shipping and handling costs as cost of goods sold. Defined Contribution Retirement Plan The Company matches employee contributions to our 401(k) plan up to 4% of their annual salary. The expense is recognized as part of general and administrative expenses on the income statement and was $174,281 and $192,485 for the years ended December 31, 2021 and December 31, 2020, respectively. Property and Equipment Property and equipment are stated at historical cost and depreciated over the useful life of the asset using the straight-line method. Useful lives are assigned to assets depending on their category. For details regarding property and equipment, refer to Note 5 . Research and Development The Company's policy is to expense all costs associated with research and development ("R&D") that have no future alternative uses when those costs are incurred. Costs incurred to acquire assets currently used in R&D that do have future alternative uses are capitalized and the cost of depreciation is included in R&D expense. Fair Value of Financial Instruments The carrying value of cash, cash equivalents, accounts receivable, accounts payable and accrued liabilities approximate their fair value because of the short-term nature of these instruments. Bond and mutual fund investments are presented at fair value as of the balance sheet date and accumulated gains or losses on those investments are reported in other comprehensive income. Refer to Note 2 for further details regarding instruments recorded at fair value. Earnings Per Share Basic earnings per share is calculated by dividing net income by the weighted average number of shares of common stock outstanding during each period. Diluted earnings per share is calculated by adjusting the weighted average number of shares of common stock outstanding for the dilutive effect, if any, of common stock equivalents. Common stock equivalents whose effect would be antidilutive are not included in diluted earnings per share. The Company uses the treasury stock method to determine the dilutive effect, which assumes that all common stock equivalents have been exercised at the beginning of the period and that the funds obtained from those exercises were used to repurchase shares of common stock of the Company at the average closing market price during the period. Refer to Note 1 3 for further details on the earning per share calculation. |
FINANCIAL INSTRUMENTS AND INVES
FINANCIAL INSTRUMENTS AND INVESTMENTS | 12 Months Ended |
Dec. 31, 2021 | |
Financial Instruments, Owned, at Fair Value [Abstract] | |
FINANCIAL INSTRUMENTS AND INVESTMENTS | FINANCIAL INSTRUMENTS AND INVESTMENTS The fair value of a financial instrument is the amount that could be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements do not include transaction costs. A fair value hierarchy is used to prioritize the quality and reliability of the information used to determine fair values. Categorization within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The fair value hierarchy is divided into the following three categories: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market-based inputs or inputs that are corroborated by market data. Level 3: Unobservable inputs that are not corroborated by market data. Fair value estimates of financial instruments are made at a specific point in time, based on relevant information about financial markets and specific financial instruments. As these estimates are subjective in nature, involving uncertainties and matters of significant judgment, they cannot be determined with precision. Changes in assumptions can significantly affect estimated fair value. Management is of the opinion that the Company is not exposed to significant interest or credit risks arising from financial instruments and any declines in the value of investments are temporary in nature. Money market funds and certificates of deposits are shown at cost on the balance sheet and their adjusted cost approximates their fair value. The following tables show the adjusted cost, unrealized gains (losses) and fair value of the Company's cash and cash equivalents and investments held as of December 31, 2021 and 2020: December 31, 2021 Adjusted Cost Pre-Tax Unrealized Gains/(Losses) Fair Value Cash and Cash Equivalents Short Term Long Term Level 1 Money Market Funds $ 3,587,278 $ — $ 3,587,278 $ 3,587,278 $ — $ — Other Funds 1,889,552 93,123 1,982,675 — — 1,982,675 5,476,830 93,123 5,569,953 3,587,278 — 1,982,675 Level 2 Corporate Bonds 1,396,435 (17,727) 1,378,708 — 101,004 1,277,704 Municipal Bonds 5,933,534 (21,425) 5,912,109 — 912,679 4,999,430 7,329,969 (39,152) 7,290,817 — 1,013,683 6,277,134 Total $ 12,806,799 $ 53,971 $ 12,860,770 $ 3,587,278 $ 1,013,683 $ 8,259,809 December 31, 2020 Adjusted Cost Pre-Tax Unrealized Gains/(Losses) Fair Value Cash and Cash Equivalents Short Term Long Term Level 1 Money Market Funds $ 4,315,394 $ — $ 4,315,394 $ 4,315,394 $ — $ — Other Funds 1,889,552 12,205 1,901,757 — — 1,901,757 6,204,946 12,205 6,217,151 4,315,394 — 1,901,757 Level 2 Corporate Bonds 1,610,092 22,222 1,632,314 — 754,586 877,728 Municipal Bonds 4,890,027 28,797 4,918,824 — 1,634,015 3,284,809 6,500,119 51,019 6,551,138 — 2,388,601 4,162,537 Total $ 12,705,065 $ 63,224 $ 12,768,289 $ 4,315,394 $ 2,388,601 $ 6,064,294 Pre-tax unrealized gains (losses) on investments incurred during the periods are presented below: For the Year Ended December 31, 2021 For the Year Ended December 31, 2020 Unrealized Holding Gains (Losses) $ (9,253) $ 36,922 The maturities for bonds held by the Company as of December 31, 2021 are presented in the table below: Maturity Fair Value Less Than One Year $ 1,013,683 1-2 years 1,432,290 2-5 years 4,844,844 5-10 years — Over 10 years — $ 7,290,817 |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES Inventories consisted of the following at each balance sheet date: As of December 31, 2021 December 31, 2020 Raw materials $ 301,320 $ 328,772 Finished goods 7,556,048 9,229,298 Work in process — — Subtotal 7,857,368 9,558,070 Reserve for obsolescence (672,120) (1,143,298) Total $ 7,185,248 $ 8,414,772 |
PREPAID EXPENSES AND OTHER CURR
PREPAID EXPENSES AND OTHER CURRENT ASSETS | 12 Months Ended |
Dec. 31, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | PREPAID EXPENSES AND OTHER CURRENT ASSETS Prepaid expenses and other current assets consisted of the following at each balance sheet date: As of December 31, 2021 December 31, 2020 Assets classified as held for sale $ — $ 623,805 Prepaid inventory 530,725 542,313 Prepaid insurance 228,849 217,465 Interest receivables 63,841 65,984 Vehicle trade-in credits — 55,733 Other 201,861 173,128 Total $ 1,025,276 $ 1,678,428 In the table above, the assets classified as "held for sale" consisted of an office building located in Spruce Grove, Alberta, Canada. During 2021, we sold the remaining three bays of the office building, which resulted in a gain of $42,378 CAD that was recorded during that year. |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | PROPERTY AND EQUIPMENT Property and equipment and estimated useful lives are presented in the table below: As of December 31, 2021 December 31, 2020 Est. Useful Life Furniture and fixtures $ 652,859 $ 649,022 7 years Computers 465,758 394,945 3 years Software 246,963 246,958 2 years Machinery and equipment 488,652 477,468 7 years Vehicles 2,242,221 2,453,042 5 years Land and buildings 11,692,779 11,742,322 30 years Total property and equipment 15,789,232 15,963,757 Accumulated depreciation (4,603,693) (3,941,946) Net property and equipment $ 11,185,539 $ 12,021,811 The table below shows total depreciation and amortization expense and how depreciation is allocated between cost of goods sold and operating expenses: For the Year Ended December 31, 2021 For the Year Ended December 31, 2020 Cost of goods sold - product depreciation $ 338,748 $ 342,780 Cost of goods sold - service depreciation 154,460 154,755 Operating expense depreciation 500,142 391,958 Amortization expense 262,297 274,229 Total depreciation & amortization expense $ 1,255,647 $ 1,163,722 |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2021 | |
Intangible Assets, Net (Including Goodwill) [Abstract] | |
INTANGIBLE ASSETS | INTANGIBLE ASSETS Definite-lived intangible assets consist of developed technology, customer relationships, trade names and distribution agreements. The costs of developed technology, customer relationships and trade names are amortized over the respective useful life of each asset, ranging from 3-18 years. The costs of the distribution agreements are amortized over the remaining life of the agreements. Indefinite-lived intangible assets consist of goodwill. In accordance with ASC 350, goodwill is not amortized but tested for impairment annually or more frequently when events or circumstances indicate that the carrying value of a reporting unit more likely than not exceeds its fair value. We test goodwill for impairment as of each balance sheet date. Intangible assets consisted of the following: Definite-lived intangible assets As of December 31, 2021 December 31, 2020 Definite-lived intangible assets $ 2,100,000 $ 2,100,000 Less: Accumulated amortization (550,862) (328,130) Definite-lived intangible assets, net $ 1,549,138 $ 1,771,870 During 2020, definite-lived intangible assets decreased primarily driven by amortization expense for the year. Estimated amortization expense for the next five years related to the definite-lived intangible assets is displayed in the following table: For the Years Ending December 31, Amount 2022 $ 217,871 2023 $ 204,190 2024 $ 148,565 2025 $ 80,899 2026 $ 80,899 Greater than 5 years $ 816,714 Indefinite-lived intangible assets As of December 31, 2021 December 31, 2020 Goodwill $ 2,579,381 $ 2,579,381 Goodwill is reviewed annually for impairment during the fourth quarter of the year, or whenever there are significant indicators of potential impairment. In 2021, the Company determined that the fair value of the reporting unit related to the goodwill was not less than its carrying value. As such, the Company did not have any goodwill impairment for the year ended December 31, 2021. In 2020 and 2021, the COVID-19 pandemic spread across the globe and disrupted economies around the world, including the oil and gas industry in which we operate. These factors caused us to review goodwill for impairment periodically throughout 2020. During each impairment review, we performed a quantitative assessment by comparing the fair value of the reporting unit related to goodwill with its carrying value. In each impairment test we performed during 2020, the estimated fair value of our reporting unit exceeded its carrying value. As such, the Company did not have any goodwill impairment for the year ended December 31, 2020. |
ACCRUED LIABILITIES
ACCRUED LIABILITIES | 12 Months Ended |
Dec. 31, 2021 | |
Other Liabilities Disclosure [Abstract] | |
ACCRUED LIABILITIES | ACCRUED LIABILITIES Accrued liabilities consisted of the following at each balance sheet date: As of December 31, 2021 December 31, 2020 Employee-related payables $ 1,621,131 $ 789,573 Inventory-related payables 67,027 158,519 Warranty liabilities 49,624 71,852 Other 134,566 176,926 Total $ 1,872,348 $ 1,196,870 |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
LEASES | LEASESWe have leases for office equipment and office space. The leases for office equipment are classified as financing leases and the typical term is 36 months. We have the option to extend most office equipment leases, but we do not intend to do so. Accordingly, no extensions have been recognized in the right-of-use asset or lease liability. The office equipment lease payments are not variable and the lease agreements do not include any non-lease components, residual value guarantees, or restrictions. There are no interest rates implicit in the office equipment lease agreements, so we have used our incremental borrowing rate to determine the discount rate to be applied to our financing leases. In 2021, we entered into a new lease agreement to replace some aging office equipment. The weighted average discount rate applied to our financing leases is 4.50% and the weighted average remaining lease term is 29.2 months. The following table shows the components of financing lease cost: Financing Lease Cost For the Year Ended December 31, 2021 For the Year Ended December 31, 2020 Amortization of right-of-use assets $ 39,565 $ 56,318 Interest on lease liabilities 1,676 3,618 Total financing lease cost $ 41,241 $ 59,936 The following table reconciles future minimum lease payments to the discounted finance lease liability: Years ending December 31 2022 $ 32,394 2023 19,591 2024 17,960 2025 — 2026 — Thereafter — Total future minimum lease payments $ 69,945 Less: Amount representing interest 3,819 Present value of future payments $ 66,126 Current portion $ 30,214 Long-term portion $ 35,912 |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS' EQUITY As described in Note 1 , treasury stock is recorded at cost until reissued or retired. As of December 31, 2021, and December 31, 2020, the Company held 4,076,909 and 3,412,378 shares in treasury at a total cost of $6,107,593 and $5,353,019, respectively. Pursuant to the board of directors approval of a share repurchase program allowing the Company to repurchase up to $2,000,000 worth of the Company’s common stock from time to time through September 30, 2022, the Company entered into a 10b5-1 Plan in September 2021. After an initial 30-day cooling off period the Company began purchasing shares of common stock pursuant to the terms of the 10b5-1 Plan in October 2021. The Company is not obligated to make any purchases and the program may be suspended or discontinued at any time. During 2021, we repurchased 664,531 shares of common stock. There were no treasury stock repurchase plans open during 2020 and as a result we did not repurchase any shares of common stock during that period. All purchases of treasury stock during 2021 were made at market prices. 2021 EIP and LTIP On May 28, 2021, the Compensation Committee (the "Compensation Committee") of the Board of Directors of the Company (the “Board”) approved the 2021 Executive Incentive Plan (the “2021 EIP”) for Brenton W. Hatch, the Company’s Executive Chairman, Ryan W. Oviatt, the Company’s Co-CEO, Co-President, and CFO, Cameron M. Tidball, the Company’s Co-CEO and Co-President, Jay G. Fugal, the Company’s then Vice President of Operations, and Patrick D. Fisher, the Company’s Vice President of Product Development. The 2021 EIP provides for the potential award of incentive compensation to the participants based on the Company’s financial performance in fiscal 2021. If earned, the incentive compensation will be payable in cash and stock, and the stock portion of the incentive compensation is intended to constitute an award under the Company’s 2014 Equity Incentive Plan, as amended (the “2014 Plan”). Under the terms of the 2021 EIP, each participating executive officer has been assigned a target incentive compensation amount for fiscal 2021. The target incentive compensation amount for Mr. Hatch is $200,000, the target incentive compensation amount for Mr. Oviatt is $150,000, the target incentive compensation amount for Mr. Tidball is $150,000, the target incentive compensation for Mr. Fugal is $54,000, and the target incentive compensation for Mr. Fisher is $51,000 CAD. Participants will be eligible to receive incentive compensation based upon reaching or exceeding performance goals established by the Compensation Committee for fiscal 2021. The performance goals in the 2021 EIP are based on the Company’s total revenue, EBITDA, and a non-financial milestone relating to revenue source diversification. Each of these performance goals will be weighted one third in calculating incentive compensation amounts. The incentive compensation amounts earned under the 2021 EIP, if any, will be paid 50% in cash and 50% in shares of restricted stock under the 2014 Plan. In no event shall the total award exceed 200% of the target incentive compensation amount for each participant, or exceed any limitations otherwise set forth in the 2014 Plan. The actual incentive compensation amounts, if any, will be determined by the Compensation Committee upon the completion of fiscal 2021 financial statement audit and paid by March 15, 2022, subject to all applicable tax withholding. In addition to the 2021 EIP, the Board also approved, as a long-term incentive plan, the grants of restricted stock unit awards to Messrs. Oviatt, Tidball, Fugal, and Fisher pursuant to the 2014 Plan (the “2021 LTIP”). The 2021 LTIP consists of total awards of up to 204,543 restricted stock units (“Units”) to Mr. Oviatt, up to 204,543 Units to Mr. Tidball, up to 85,908 Units to Mr. Fugal, and up to 47,973 Units to Mr. Fisher, pursuant to two separate restricted stock unit award agreements (collectively, the “Restricted Stock Unit Award Agreements”) between the Company and each participant. One agreement covers 33% of each award recipient’s Units that are subject to time-based vesting, and the other agreement covers the remaining 67% of such award recipient’s Units that may vest based on performance metrics. Upon vesting, the award agreements entitle the award recipients to receive one share of the Company’s common stock for each vested Unit. The vesting period of the 2021 LTIP began on January 1, 2021 and terminates on December 31, 2023 (the “Performance Vesting Date”). The Units subject to time-based vesting, including 68,181 Units to Mr. Oviatt, 68,181 Units for Mr. Tidball, 28,636 Units to Mr. Fugal, and 15,991 Units to Mr. Fisher, will vest in three equal annual installments beginning December 31, 2021 and ending on December 31, 2023 if the award recipients’ employment continues with the Company through such dates. The performance-vesting Units, including up to 136,362 Units for Mr. Oviatt, 136,362 Units for Mr. Tidball, 57,272 Units for Mr. Fugal, and 31,982 Units to Mr. Fisher, are eligible to vest over a three-year performance period beginning January 1, 2021 (the “Performance Period”) based upon the following Company performance metrics: Performance Metric Weight Target Above Target Outstanding Total Shareholder Return 1/3 135% 194% 253% Relative Total Shareholder Return 1/3 Third Quartile Second Quartile First Quartile EBITDA as a Percentage of Total Revenue 1/3 10% 15% 20% One-third of such performance-vesting Units, consisting of 45,454 Units for Mr. Oviatt, 45,454 Units for Mr. Tidball, 19,091 Units for Mr. Fugal, and 10,661 Units for Mr. Fisher, are eligible to vest for each of the three performance metrics identified in the table above. The number of Units that will vest for each performance metric on the Performance Vesting Date shall be determined as follows: • if the “Target” level for such performance metric is not achieved, none of the Units relating to such performance metric will vest; • if the “Target” level (but no higher level) for such performance metric is achieved, 50% of the Units relating to such performance metric will vest; • if the “Above Target” level (but no higher level) for such performance metric is achieved, 75% of the Units relating to such performance metric will vest; and • if the “Outstanding” level for such performance metric is achieved, 100% of the Units relating to such performance metric will vest. Mr. Fugal resigned, effective October 31, 2021, from his position as Vice President of Operations to pursue an opportunity as CEO of another company. Accordingly, Mr. Fugal will not be eligible to receive incentive compensation under the 2021 EIP, and his unvested restricted stock units will be forfeited. Additionally, Mr. Fugal is not eligible for any awards that were not vested prior to October 31, 2021 for the 2019 and 2021 long-term incentive plans. The foregoing summary of the 2021 EIP, the 2021 LTIP and the Restricted Stock Unit Award Agreements is qualified in its entirety by the text of the 2021 EIP and each of the Restricted Stock Unit Award Agreements, which the Company has filed as a exhibits to its quarterly report on Form 10-Q for the quarter ended June 30, 2021. 2020 EIP and LTIP Due to economic uncertainties including those caused by the COVID-19 pandemic, the Board, with the support of the Company's executives, elected to not adopt an executive incentive plan or long-term incentive plan for 2020. The Board and executives believed this was an appropriate short-term measure that helped to align the Company's cost structure with the extraordinary conditions affecting the industry during 2020. 2021 RSUs On February 18, 2021, the Board, upon the recommendation of the Compensation Committee, approved a restricted stock award of 18,852 shares of common stock to each of Cameron M. Tidball and Ryan W. Oviatt. Messrs. Tidball and Oviatt entered into Restricted Stock Unit Award Agreements, the forms of which were approved pursuant to the Plan. These restricted stock awards, which vested immediately, were settled by the issuance of a total of 27,334 shares of common stock, net of tax withholding and resulted in $45,999 of compensation expense. On June 16, 2021, pursuant to the annual renewal of director compensation, the Board approved a grant of 189,471 RSUs to the Company's independent directors. Half of the RSUs vested immediately on the date of grant and the remaining 50% of the RSUs will vest on the first anniversary of the grant date or at the Company's next annual meeting of stockholders, whichever is earlier. The awards will result in total compensation expense of approximately $216,000 to be recognized over the vesting period. 2020 RSUs On June 17, 2020, pursuant to the annual renewal of Director compensation, the Board approved a grant of 270,966 RSUs to Independent Directors. Half of the RSUs vested immediately on the date of grant and the remaining 50% of the RSUs vested on the first anniversary of the grant date or at the Company's next Annual Meeting of Stockholders, whichever was earlier. The awards resulted in total compensation expense of $209,999 which was recognized over the vesting period. On July 30, 2020, Mr. Arlen B. Crouch notified the Chairman of the Board of the Company of his decision to resign, effective August 3, 2020, from his position as a member of the Board. Mr. Crouch’s resignation did not result from any disagreements with Management or the Board. On Mr. Crouch's resignation date all of his unvested RSUs were forfeited and the related compensation expense recaptured. On July 30, 2020, the Board appointed Colleen Larkin Bell to serve as a director to fill the vacancy resulting from Mr. Crouch’s resignation, effective August 3, 2020. Ms. Bell is serving as Chair of the Nominating Committee and serves on the Audit and Compensation Committees. As compensation for her service on the Board and Committee Assignments, on August 21, 2020, the board approved a grant of 92,934 RSUs. Half of the RSUs vested immediately on the date of the grant and the remaining 50% of the RSUs vested on the first anniversary of the grant date. The awards resulted in total compensation expense of $72,953 which was recognized over the vesting period. 2021 Stock Options No stock options were issued during the year ended December 31, 2021. 2020 Stock Options On March 17, 2020 (the "March Grant Date"), the Board approved a grant of options to purchase 115,200 shares of the Company's common stock at a strike price of $0.81 to various employees under the 2014 Plan (the "March 2020 Options"). The March 2020 Options terminate four years from the March Grant Date and become exercisable as to one-third of the shares of common stock covered thereby on each anniversary of the March Grant Date for the subsequent three years following the March Grant Date. The March 2020 Options resulted in a total compensation expense of $40,280. On July 2, 2020 (the "July Grant Date"), upon the recommendation of the Compensation Committee, the Board approved the grant of a non-qualified stock option to purchase 100,000 shares of the Company’s common stock to each of Mr. Oviatt and Mr. Tidball under the 2014 Plan and pursuant to the standard form of Notice of Stock Option Grant and Stock Option Agreement under the plan (the “July Options”). The exercise price of the July Options is equal to the closing bid price of the Company's common stock on July 2, 2020 or $0.8439 per share. The July Options shall vest equally over a period of three years from the July Grant Date. Vesting occurs on the anniversary date of the July Grant Date, with one-third of the total shares vesting on each of the first three On August 21, 2020 (the "August Grant Date"), the Board approved a grant of options to purchase 630,000 shares of the Company's common stock at a strike price of $0.79 to various employees under the 2014 Plan (the "August 2020 Options"). The Options terminate four years from the August Grant Date and the August 2020 Options become exercisable as to one-third of the shares of common stock covered thereby on each anniversary of the August Grant Date for the subsequent three years following the August Grant Date. The August 2020 Options resulted in total compensation expense of $233,111 that will be recognized over the vesting period. 2019 LTIP The 2019 LTIP consists of total awards of up to 66,213 restricted stock units (“Units”) to Mr. Oviatt, up to 51,646 Units to Mr. Tidball, up to 35,313 Units to Mr. Fugal, and up to 24,862 Units to Mr. Fisher pursuant to two separate Restricted Stock Unit Award Agreements to be entered between the Company and each participant. One agreement covers 33% of each award recipient’s Units that are subject to time-based vesting, and the other agreement covers the remaining 67% of such award recipient’s Units that may vest based on performance metrics. Upon vesting, the award agreements entitle the award recipients to receive one share of the Company’s common stock for each vested Unit. The vesting period of the 2019 LTIP began on January 1, 2019 and terminated on December 31, 2021. |
REVENUE
REVENUE | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | REVENUE Performance Obligations Our performance obligations include providing product and servicing our product. We recognize product revenue performance obligations in most cases when the product is delivered to the customer. Occasionally, if we are shipping the product on a customer’s account, we recognize revenue when the product has been shipped. At that point in time, the control of the product is transferred to the customer. When we perform service work, we apply the practical expedient that allows us to recognize service revenue when we have the right to invoice the customer for the work completed. We do not engage in transactions acting as an agent. The time needed to complete our performance obligations varies based on the size of the project; however, we typically satisfy our performance obligations within a few months of entering into the applicable sales contract or service contract. Our customers have the right to return certain unused and unopened products within 90 days for a restocking fee. We provide a warranty on some of our products ranging from 90 days to 2 years, depending on the product. The amount accrued for expected returns and warranty claims was immaterial as of December 31, 2021. Contract Balances We have elected to use the practical expedient in ASC 340 (regarding recognition of the incremental costs of obtaining a contract) for costs related to contracts that are estimated to be completed within one year. All of our current sales contracts and service contracts are expected to be completed within one year, and as a result, we have not recognized a contract asset account. If we had chosen not to use this practical expedient, we would not expect a material difference in the contract balances. We also did not have any material contract liabilities because we typically do not receive payments in advance of recognizing revenue. Significant Judgments For most revenue contracts, we invoice the customer when the performance obligation is satisfied and payment is due 30 days later. Occasionally, other terms such as progress billings or longer terms are agreed to on a case-by-case basis. We do not have significant financing components, non-cash consideration, or variable consideration. We estimate the transaction price between performance obligations based on stand-alone product prices. We elected the practical expedient by which disclosures are not required regarding the value of unsatisfied performance obligations for contracts with an original expected duration of one year or less. Disaggregation of Revenue All revenue recognized in the income statement is considered to be revenue from contracts with customers. The table below shows revenue by category: Year Ended December 31, 2021 Year Ended December 31, 2020 Electronics $ 9,076,345 $ 7,689,187 Manufactured 1,213,218 878,962 Re-Sell 13,401,431 10,827,490 Service 2,665,182 2,062,970 Total Revenue $ 26,356,176 $ 21,458,609 |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION Periodically the Company issues stock-based awards to employees and independent directors. Vesting terms for outstanding grants vary by grant, ranging from immediate to ratably over 5 years. Typically, grants expire one year after the final vesting. The Board has authorized 4,812,000 shares to be granted for such awards under the Plan. Historically, the Company has only issued non-qualified stock options, restricted stock, and restricted stock units; however, the Plan does allow for other types of awards to be granted in the future. Most awards have been exercisable or convertible based solely on meeting service conditions; however, some grants to executives have been made convertible based on meeting both service and performance conditions. Upon exercise or conversion, the Company may issue new shares or reissue shares held in treasury, at the discretion of Management. The Company has elected to recognize forfeitures as they occur. The Company uses the Black-Scholes method for measuring compensation cost of stock options and the intrinsic value method for measuring compensation cost of restricted stock and restricted stock units. Total compensation cost for share-based payments recognized in income was $567,077 and $443,127 during the years ended December 31, 2021 and December 31, 2020, respectively. As of December 31, 2021, the Company had $527,574 in unamortized compensation expense with a weighted average of 1.54 years remaining. The Company received $6,053 and $2,020 in cash from the exercise of share options during the years ended December 31, 2021 and December 31, 2020, respectively. For the tax effect on total compensation expense and the exercise of options, see Note 1 2 for the income tax provision. During the years ended December 31, 2021 and December 31, 2020, the intrinsic value of options exercised was $2,352 and $936, respectively. The total fair value of options, restricted stock, and restricted stock units vested during the years ended December 31, 2021 and December 31, 2020 was $537,063 and $418,682, respectively. During the years ended December 31, 2021 and December 31, 2020 the Company granted 770,142 and 1,309,100 awards, respectively, with weighted-average grant date fair values of $1.14 and $0.52, respectively. Information regarding outstanding options, restricted stock awards, and restricted stock units is summarized in the tables below: Total Outstanding and Exercisable Awards December 31, 2021 Awards Outstanding Awards Exercisable Grant Price Low Grant Price High Quantity Remaining Contractual Life (Years) Exercise Price Quantity Remaining Contractual Life (Years) Exercise Price $ — $ 0.39 738,873 2.41 $ — — $ 0.40 $ 0.80 579,000 2.64 $ 0.79 203,000 2.64 $ 0.79 $ 0.81 $ 0.84 304,700 2.40 $ 0.83 101,566 2.40 $ 0.83 1,622,573 2.49 $ 0.44 304,566 2.56 $ 0.80 Total Outstanding and Exercisable Awards December 31, 2020 Awards Outstanding Awards Exercisable Grant Price Low Grant Price High Quantity Remaining Contractual Life (Years) Exercise Price Quantity Remaining Contractual Life (Years) Exercise Price $ — $ 0.39 508,123 1.65 $ — — $ 0.40 $ 0.80 630,000 3.64 $ 0.79 — 0 $ — $ 0.81 $ 0.84 304,700 3.36 $ 0.83 — 0 $ — 1,442,823 2.88 $ 0.52 — 0 $ — Information regarding stock options for the year ended December 31, 2021 is summarized in the tables below: Stock Options Number of Awards Weighted Average Exercise Price Weighted Average Share Price on Date of Exercise Weighted Average Fair Value Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Outstanding, beginning of period 934,700 $ 0.80 0.37 $ 48,695 Granted — $ — — $ — Exercised/Released (7,000) $ 0.79 $ 1.12 0.37 $ 2,352 Canceled/Forfeited (44,000) $ 0.79 0.37 $ 17,820 Expired — $ — 0 $ — Outstanding, end of period 883,700 $ 0.80 0.37 2.56 $ 228,620 Vested and unvested exercisable, end of the period 304,566 $ 0.80 0.37 2.56 $ 78,957 Vested and expected to vest, end of the period 883,700 $ 0.80 $ 0.37 2.56 $ 228,620 Stock Options Number of Awards Weighted Average Exercise Price Weighted Average Grant Date Fair Value Weighted Average Remaining Amortization Period (Years) Unvested Outstanding, beginning of period 934,700 $ 0.80 $ 0.37 Granted — $ — $ — Canceled/Forfeited (44,000) $ 0.79 $ 0.37 Expired — Vested, outstanding shares (311,566) $ 0.80 $ 0.37 Unvested Outstanding, end of period 579,134 $ 0.80 $ 0.37 1.56 Information regarding restricted stock units for the year ended December 31, 2021 is summarized in the tables below: Restricted Stock Units Number of Awards Weighted Average Exercise Price Weighted Average Share Price on Date of Exercise Weighted Average Fair Value Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Outstanding, beginning of period 255,422 $ — $ 1.34 $ 217,747 Granted 408,164 $ — $ 1.14 $ 466,513 Exercised/Released (368,820) $ — $ 1.14 $ 1.14 $ 419,093 Cancelled/Forfeited (36,560) $ — $ 1.29 $ 43,506 Outstanding, end of period 258,206 $ — $ 1.33 2.24 $ 273,698 Vested and exercisable, end of the period — $ — Vested and expected to vest, end of the period 258,206 $ — $ 1.33 2.24 $ 273,698 Restricted Stock Units Number of Awards Weighted Average Exercise Price Weighted Average Grant Date Fair Value Weighted Average Remaining Amortization Period (Years) Unvested Outstanding, beginning of period 255,422 $ — $ 1.34 Granted 408,164 $ — $ 1.14 Cancelled/Forfeited (36,560) $ — $ 1.29 Vested, outstanding shares (368,820) $ — $ 1.14 Unvested Outstanding, end of period 258,206 $ — $ 1.33 1.15 Information regarding performance based restricted stock units for the year ended December 31, 2021 is summarized in the tables below: Performance Based Restricted Stock Units Number of Awards Weighted Average Exercise Price Weighted Average Share Price on Date of Exercise Weighted Average Fair Value Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Outstanding, beginning of period 252,701 $ — $ 1.99 $ 215,428 Granted 361,978 $ — $ 1.13 $ 409,035 Exercised/Released — $ — $ — $ — $ — Cancelled/Forfeited (134,012) $ — $ 2.37 $ 155,044 Outstanding, end of period 480,667 $ — $ 1.24 2.51 $ 509,507 Vested and exercisable, end of the period — $ — Vested and unvested exercisable, end of the period — $ — Vested and expected to vest, end of the period 180,989 $ — $ 1.13 3.00 $ 191,848 Performance Based Restricted Stock Units Number of Awards Weighted Average Exercise Price Weighted Average Grant Date Fair Value Weighted Average Remaining Amortization Period (Years) Unvested Outstanding, beginning of period 252,701 $ — $ 1.99 Granted 361,978 $ — $ 1.13 Cancelled/Forfeited (134,012) $ — $ 2.37 Vested, outstanding shares — $ — $ — Unvested Outstanding, end of period 480,667 $ — $ 1.24 2.00 |
PROVISION FOR INCOME TAXES
PROVISION FOR INCOME TAXES | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
PROVISION FOR INCOME TAXES | PROVISION FOR INCOME TAXES During the years ended December 31, 2021 and December 31, 2020, the Company did not expect to incur any interest or penalties related to income taxes. Accordingly, the Company had no accruals for interest and penalties at December 31, 2021, nor December 31, 2020. When our taxes for the years ended December 31, 2021 and December 31, 2020 were finalized there was an immaterial amount of penalties and interest that was ultimately paid. We do not expect any material penalties or interest will result from the filing of our 2022 tax return. If the Company were to incur any such material charges, it would elect to recognize interest related to underpayment of income taxes in interest expense and recognize any penalties in operating expenses. The Company is current on its U.S. and Canadian income tax filings. Tax years that remain open for examination are 2019 through 2021 in the U.S. and 2016 through 2021 in Canada. At December 31, 2021, and December 31, 2020, the Company had operating loss carryforwards at its Canadian subsidiary of $4,351,044 CAD and $4,241,450 CAD, respectively. A valuation allowance has been recorded for approximately 80% of the 2021 operating loss carryforwards and 100% of the operating loss carryforwards for 2020. We estimate there is a greater than 50% likelihood that we will utilize, at least a portion, of our operating loss carryforwards to offset taxable income in Canada in future years and as a result, a small deferred tax asset was recorded on our balance sheet during 2021. At December 31, 2021 and December 31, 2020, the Company had operating loss carryforwards at its US subsidiary of $1,575,071 and $1,314,358, respectively. We estimate there is a greater than 50% likelihood that we will utilize all of our US 2021 operating loss carryforwards to offset taxable income in our US subsidiary within the next few years and as a result, no valuation allowance was considered to be necessary and we recorded a deferred tax asset on our balance sheet as of December 31, 2021. Also no valuation allowance was considered necessary for 2020 operating loss carryforwards. In 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law, which among other things, allows net operating losses from the year 2020 to be carried back five years to claim refunds for taxes that were previously paid. Since our US Subsidiary had taxable income in prior years, during 2021, we filed an amendment to our 2015 and 2016 tax returns and utilized all of the net operating losses from the year ended December 31, 2020, which generated a tax refund of approximately $450,000. Additionally, during 2021, we filed an amendment to our 2019 tax return to correct some filing information for Prochem ULC, a Canadian subsidiary owned by our US entity. As a result of this amendment, we expect to receive a tax refund of approximately $100,000. Both of these refunds are expected to be received during 2022 and as a result, we have record current tax receivables related to these two items. The Company invests in available-for-sale securities that are reported on the balance sheet at fair value, with the gains/losses reported net of tax as part of Other Comprehensive Income (OCI). The tax benefit allocated to OCI during the year ended December 31, 2021 was $2,158 and the tax expense allocated to OCI during the year ended December 31, 2020 was $9,319. The Company has not provided a valuation allowance at December 31, 2021 nor December 31, 2020 for deferred tax assets and thus the valuation allowance did not change between December 31, 2020 and December 31, 2021. Realization of the deferred tax asset is dependent on generating sufficient taxable income to offset the tax items that will be deductible in the future. Although realization is not assured, Management believes it is more likely than not that all of the deferred tax asset will be realized. The amount of the deferred tax asset considered realizable, however, could be reduced in the near term if estimates of future taxable income are reduced. The table below outlines the components of income tax expense (benefit): For the Year Ended December 31, 2021 For the Year Ended December 31, 2020 Current U.S. Federal $ (492,757) $ (388,728) State and local 25,374 (97,426) Foreign (179,939) (73,417) Total Current (647,322) (559,571) Deferred U.S. Federal 15,831 61,388 State and local 2,133 14,616 Total Deferred 17,964 76,004 Total Benefit for Income Taxes $ (629,358) $ (483,567) The table below reconciles our effective tax rate to the statutory tax rate: For the Year Ended December 31, 2021 For the Year Ended December 31, 2020 U.S. Federal statutory tax rate 21.0 % 21.0 % State and local statutory tax rate, net of federal effect 4.0 % 4.0 % Depreciation expense (2.9) % 3.2 % Tax-exempt income 2.9 % 1.8 % Unrealized gains and losses on investments 0.1 % (0.3) % Stock-based compensation — % (1.5) % Goodwill and intangible asset amortization 5.2 % (3.1) % Non-U.S. operations 9.2 % (8.0) % Other (2.1) % 1.1 % Effective tax rate 37.4 % 18.2 % The table below shows the components of deferred taxes: As of December 31, 2021 December 31, 2020 Bad debt $ 21,903 $ 32,158 Inventory reserve 130,776 294,505 Amortization 124,626 30,887 U.S. net operating loss 401,023 — Foreign net operating loss 163,254 — Deferred tax asset $ 841,582 $ 357,550 Unrealized gain on investments $ 12,651 $ 16,158 Depreciation 265,374 302,459 Goodwill 174,365 145,533 Stock compensation 362,044 416,270 Deferred tax liability $ 814,434 $ 880,420 Net Deferred Tax Asset (Liability) $ 27,148 $ (522,870) |
BASIC AND DILUTED EARNINGS PER
BASIC AND DILUTED EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share, Basic and Diluted [Abstract] | |
BASIC AND DILUTED EARNINGS PER SHARE | BASIC AND DILUTED EARNINGS PER SHARE The following table is a reconciliation of the numerator and denominators used in the earnings per share calculation: 2021 2020 Income (Numerator) Weighted Average Shares (Denominator) Per-Share Income (Numerator) Weighted Average Shares (Denominator) Per-Share Basic EPS Net income (loss) available to common stockholders $ (1,051,543) 48,070,581 $ (0.02) $ (2,175,597) 47,778,063 $ (0.05) Effect of Dilutive Securities Stock options & RSUs — — — — Diluted EPS Net income (loss) available to common stockholders + assumed conversions $ (1,051,543) 48,070,581 $ (0.02) $ (2,175,597) 47,778,063 $ (0.05) Stock options and RSU's to purchase 1,622,573 shares of common stock at a weighted average exercise price of $1.13 per share were outstanding during the year ended December 31, 2021, but were not included in the computation of diluted EPS because the effect would be anti-dilutive. These stock options and RSU's, which expire between December 2022 and December 2024, were still outstanding at December 31, 2021. Stock options and RSU's to purchase 1,442,823 shares of common stock at a weighted average exercise price of $0.52 per share were outstanding during the year ended December 31, 2020, but were not included in the computation of diluted EPS because the effect would be anti-dilutive. These stock options and RSU's, which expire between March 2021 and August 2024, were still outstanding at December 31, 2020. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION The Company operates in the United States and Canada. Segment information for these geographic areas is as follows: For the Year Ended December 31, Revenues 2021 2020 Canada $ 5,362,466 $ 3,506,537 United States 20,993,710 17,952,072 Total Consolidated $ 26,356,176 $ 21,458,609 For the Year Ended December 31, Profit (Loss) 2021 2020 Canada $ (2,056,972) $ (943,635) United States 1,005,429 (1,231,962) Total Consolidated $ (1,051,543) $ (2,175,597) Long-lived assets, which are comprised of net property and equipment and financing right-of-use assets, for each geographical region were as follows at each balance sheet date: Long-lived assets As of December 31, 2021 December 31, 2020 Canada $ 5,667,225 $ 6,049,790 United States 5,583,594 6,022,115 Total Consolidated $ 11,250,819 $ 12,071,905 |
QUARTERLY INFORMATION (UNAUDITE
QUARTERLY INFORMATION (UNAUDITED) | 12 Months Ended |
Dec. 31, 2021 | |
Quarterly Financial Information Disclosure [Abstract] | |
QUARTERLY INFORMATION (UNAUDITED) | QUARTERLY INFORMATION (UNAUDITED) Quarterly data for the periods below consisted of the following: For the Quarters Ending Mar 31, 2021 Jun 30, 2021 Sep 30, 2021 Dec 31, 2021 Total revenues $ 5,092,349 $ 6,034,283 $ 6,943,198 $ 8,286,346 Gross profit 2,174,687 2,657,732 3,119,468 3,449,128 Loss from operations (804,225) (594,437) (318,289) (298,049) Income tax benefit 107,859 125,374 348,767 47,358 Net income (loss) (601,500) (397,166) 92,246 (145,123) Basic earnings (loss) per common share $ (0.01) $ (0.01) $ — $ — Diluted earnings (loss) per common share $ (0.01) $ (0.01) $ — $ — For the Quarters Ending Mar 31, 2020 Jun 30, 2020 Sep 30, 2020 Dec 31, 2020 Total revenues $ 7,447,142 $ 4,359,479 $ 4,000,106 $ 5,651,882 Gross profit 3,164,676 2,086,865 1,520,423 2,754,237 Income (loss) from operations (665,060) (1,077,453) (1,329,498) (8,200) Income tax benefit 225,056 35,628 180,252 42,631 Net income (loss) (365,264) (808,503) (1,057,748) 55,918 Basic earnings (loss) per common share $ (0.01) $ (0.02) (0.02) — Diluted earnings (loss) per common share $ (0.01) $ (0.02) (0.02) — Basic and diluted earnings per share are computed independently for each of the quarters presented. Therefore, the sum of the quarterly amounts may not equal the total computed for the year. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES In March 2014 the Company entered into a consulting agreement with Terra Industrial with Alan Johnson as agent in order to replace a prior royalty agreement. The agreement is for the term of 10 years with fees of $100,000 CAD paid quarterly. The agreement expires in March of 2024. The Company has operating leases for office space in Texas and Pennsylvania. Expense recognized for operating leases was $69,808 and $60,590 for the years ended December 31, 2021 and December 31, 2020, respectively. The future minimum lease payments for operating leases as of December 31, 2021, consisted of the following: Years ending December 31, Operating Leases 2022 $ 16,145 2023 — 2024 — 2025 — 2026 — Thereafter — Total $ 16,145 |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES In March 2014 the Company entered into a consulting agreement with Terra Industrial with Alan Johnson as agent in order to replace a prior royalty agreement. The agreement is for the term of 10 years with fees of $100,000 CAD paid quarterly. The agreement expires in March of 2024. The Company has operating leases for office space in Texas and Pennsylvania. Expense recognized for operating leases was $69,808 and $60,590 for the years ended December 31, 2021 and December 31, 2020, respectively. The future minimum lease payments for operating leases as of December 31, 2021, consisted of the following: Years ending December 31, Operating Leases 2022 $ 16,145 2023 — 2024 — 2025 — 2026 — Thereafter — Total $ 16,145 |
GOVERNMENT ASSISTANCE
GOVERNMENT ASSISTANCE | 12 Months Ended |
Dec. 31, 2021 | |
Government Assistance [Abstract] | |
Government Assistance | GOVERNMENT ASSISTANCE In Canada, our business qualified for wage subsidies under the Canada Emergency Wage Subsidy (CEWS) program. CEWS is a Canadian government funded program that ran from March 2020 to June 2020, and was subsequently extended through September 2021. Under CEWS if a Canadian business experienced a drop in qualifying revenue greater than a certain percentage, that business could be eligible for a wage subsidy of up to 75% of eligible employee remuneration. Through our Canadian subsidiary, we applied for CEWS in each allowable period from March 2020 – March 2021 and received total wage subsidies of $163,598 CAD in 2021 and $754,887 CAD in 2020. Under CEWS rules, we are not required to repay these funds and we do not have any contingencies or commitments related to this CEWS aid. We recorded these amounts within our income statement as credits against employee wages since these amounts represent wage subsidies. Also in Canada, we have been able to participate in several grant programs that promote technology development and the hiring of technology professionals. We have participated in the Technation Career Ready Program, The Technology Alberta First Jobs Program, and the Venture for Canada Student Internship Program. During 2021 we qualified for $24,659 CAD in wage subsidies from these programs, some of which was received in 2021 and the remaining amount was received in early 2022. We recorded these amounts within our income statement as credits against employee wages within our research and development department. In the United States (US), we have not received any government assistance. In 2020, when the COVID pandemic began to impact the economy, the US government implemented a Paycheck Protection Program (PPP), wherein certain applicants could obtain government aid. Profire enrolled in the program as we met the initial qualifications, and we did temporarily receive some government aid. However, shortly after the program began, further guidance was disseminated about the PPP program and after evaluating the new guidance and the impact to the Company, we decided to payback the PPP loan in full within the allowable repayment period. In the end, we did not use any PPP loan money and thus did not receive any assistance from the US government. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS In accordance with ASC 855 "Subsequent Events," Company management reviewed all material events through the date this report was issued and the following subsequent events took place: On February 14, 2022, we entered into a contract to sell our office and warehouse storage building located in Greeley, Colorado. We expect to receive cash proceeds from this sale of $325,000, and anticipate the sale is planned to close on or around March 24, 2022. On March 2, 2022, the Company's Board of Directors approved a one-time bonus for company executives that was settled by issuing 182,626 shares of common stock for meeting targets pursuant to the previously announced "2021 Executive Incentive Plan", which was put in place under the Company's 2014 Equity Incentive Plan. These shares were fully vested as of March 2, 2022. On March 2, 2022, the Company's Board of Directors also reviewed the previously announced "2019 Executive Long-Term Incentive Plan", and determined that long-term performance targets, which were evaluated for the three |
ORGANIZATION AND SUMMARY OF S_2
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Accounting Standards Update No. 2021-10 —Government Assistance (Topic 832) —Disclosures by Business Entities about Government Assistance This update was issued to increase the transparency of government assistance by requiring entities to disclose the type of government assistance received, how the assistance was accounted for, and the effect of the assistance on the entity's financial statements. The amendments in this update are effective for annual periods beginning after December 15, 2021 and can be applied either prospectively or retrospectively. We evaluated the impact of this new guidance and determined that we will adopt the provisions of ASU 2021-10 as of December 15, 2021 on a retrospective basis. See Note 17 for additional information. The Company has evaluated all other recent accounting pronouncements and determined that the adoption of other pronouncements applicable to the Company has not had, nor is expected to have, a material impact on the Company's financial position, results of operations, or cash flows. |
Use of Estimates | Use of Estimates The preparation of financial statements in accordance with US GAAP requires Management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reportable amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include our wholly-owned subsidiaries. Intercompany balances and transactions have been eliminated. |
Foreign Currency and Comprehensive Income | Foreign Currency and Comprehensive Income The functional currencies of the Company and its subsidiaries in the United States and Canada are the U.S. Dollar ("USD") and the Canadian Dollar ("CAD"), respectively. The financial statements of the subsidiary Profire Combustion, Inc. were translated to USD using year-end exchange rates for the balance sheet, and average exchange rates for the statements of operations. Equity transactions were translated using historical rates. The period-end exchange rates of 0.7859 and 0.7843 were used to convert the Company's December 31, 2021 and December 31, 2020 balance sheets, respectively, and the statements of operations used weighted average rates of 0.7845 and 0.7809 for the years ended December 31, 2021 and December 31, 2020, respectively. All amounts in the financial statements and footnotes are presumed to be stated in USD, unless otherwise identified. Foreign currency translation gains or losses as a result of fluctuations in the exchange rates are reflected in the Consolidated Statement of Income and Comprehensive Income (Loss), and the Consolidated Statements of Stockholders' Equity. In addition to foreign currency translation gains and losses, the Company recognizes unrealized holding gains and losses on available-for-sale securities as part of comprehensive income, as discussed in the investments policy below. |
Cash and Cash Equivalents | Cash and Cash EquivalentsThe Company considers highly liquid investments with original maturities of three months or less to be cash equivalents. Certificates of deposit held for investment that are not debt securities are included in "investments-other." Certificates of deposit with remaining maturities greater than one year are classified as "long term investments-other." Our cash and cash equivalents held in FDIC insured institutions can exceed the federally insured limit periodically and at the end of reporting periods. |
Accounts Receivable | Accounts ReceivableReceivables from the sale of goods and services are stated at net realizable value. This value includes an appropriate allowance for estimated uncollectible accounts. The allowance is calculated based on past collectability and customer relationships. The Company recorded an allowance for doubtful accounts of $153,909 and $136,585 as of December 31, 2021 and December 31, 2020, respectively. Uncollectible accounts are written off after all collection efforts have been exhausted and Credit Committee approval is granted. |
Inventories | Inventories The Company's inventories are valued at the lower of cost (the purchase price, including additional fees) or market. Inventory costs are determined based on the average cost basis. A reserve for slow-moving and potentially obsolete inventories is recorded as of each balance sheet date and total inventories are presented net of that reserve. |
Investments | Investments Investments consist of available-for-sale debt securities and mutual funds invested in debt securities that the Company carries at fair value. Securities with original maturities of greater than three months at the date of purchase are classified as investments. Of these, bonds with maturities of less than one year, and mutual funds expected to be liquidated within one year from the balance sheet date, are classified as Short Term Investments. Bonds with maturities of greater than one year or mutual funds not expected to be liquidated within one year as of the balance sheet date are classified as Long Term Investments. The Company accumulates unrealized gains and losses, net of tax, on the Company's available-for-sale securities in Accumulated Other Comprehensive Income (Loss) in the Shareholders' Equity section of its balance sheets. Such unrealized gains or losses do not increase or decrease net income for the applicable accounting period. The Company includes realized gains and losses on its available-for-sale securities in other income (expense), in its Statements of Operations. Dividend and interest income earned on all investments is included in earnings as other income. |
Long-Lived Assets | Long-Lived Assets The Company periodically reviews the carrying amount of long-lived assets for impairment. An asset is considered impaired when estimated future cash flows are less than the asset's carrying amount. In the event the carrying amount of such asset is not considered recoverable, the asset is adjusted to its fair value. |
Goodwill and Other Intangible Assets | Goodwill Goodwill represents the difference between the total purchase price and the fair value of assets (tangible and intangible) and liabilities at the date of acquisition. Goodwill is reviewed for impairment annually on December 31, and more frequently as circumstances warrant, and written down only in the period in which the recorded value of such assets exceed their fair value. The Company does not amortize goodwill in accordance with Financial Accounting Standards Board (the "FASB") Accounting Standards Codification ("ASC") 350, "Intangibles—Goodwill and Other" ("ASC 350"). Goodwill is tested for impairment at the reporting unit level. The reporting unit for goodwill testing purposes is the consolidated company as a whole. Other Intangible Assets The Company accounts for Other Intangible Assets under the guidance of ASC 350, "Intangibles—Goodwill and Other." Under such guidance, other intangible assets with definite lives are amortized over their estimated useful lives and tested |
Treasury Stock | Treasury Stock Treasury stock repurchased and held by the Company is recorded as a separate line item on the Consolidated Balance Sheets. Treasury stock is held at cost until retired or reissued. Legal, brokerage, and other costs to acquire shares are not included in the cost of treasury stock. When treasury stock is reissued or retired, any gains are included as part of additional paid-in capital. Losses upon reissuance or retirement reduce additional paid-in capital to the extent that previous net gains from the same class of stock have been recognized and any losses above that are recognized as part of retained earnings. |
Revenue Recognition and Shipping and Handling Fees and Costs | Revenue RecognitionThe Company's revenue recognition practices follow ASC 606, "Revenue from Contracts with Customers".Shipping and Handling Fees and CostsThe Company records all amounts billed to customers related to shipping and handling fees as revenue. The Company classifies expenses for shipping and handling costs as cost of goods sold. Performance Obligations Our performance obligations include providing product and servicing our product. We recognize product revenue performance obligations in most cases when the product is delivered to the customer. Occasionally, if we are shipping the product on a customer’s account, we recognize revenue when the product has been shipped. At that point in time, the control of the product is transferred to the customer. When we perform service work, we apply the practical expedient that allows us to recognize service revenue when we have the right to invoice the customer for the work completed. We do not engage in transactions acting as an agent. The time needed to complete our performance obligations varies based on the size of the project; however, we typically satisfy our performance obligations within a few months of entering into the applicable sales contract or service contract. Our customers have the right to return certain unused and unopened products within 90 days for a restocking fee. We provide a warranty on some of our products ranging from 90 days to 2 years, depending on the product. The amount accrued for expected returns and warranty claims was immaterial as of December 31, 2021. Contract Balances We have elected to use the practical expedient in ASC 340 (regarding recognition of the incremental costs of obtaining a contract) for costs related to contracts that are estimated to be completed within one year. All of our current sales contracts and service contracts are expected to be completed within one year, and as a result, we have not recognized a contract asset account. If we had chosen not to use this practical expedient, we would not expect a material difference in the contract balances. We also did not have any material contract liabilities because we typically do not receive payments in advance of recognizing revenue. Significant Judgments For most revenue contracts, we invoice the customer when the performance obligation is satisfied and payment is due 30 days later. Occasionally, other terms such as progress billings or longer terms are agreed to on a case-by-case basis. We do not have significant financing components, non-cash consideration, or variable consideration. We estimate the transaction price between performance obligations based on stand-alone product prices. We elected the practical expedient by which disclosures are not required regarding the value of unsatisfied performance obligations for contracts with an original expected duration of one year or less. |
Cost of Sales | Cost of Sales The Company includes product costs (i.e., material, direct labor and overhead costs), shipping and handling expense, production-related depreciation expense and product license agreement expense in cost of sales. |
Advertising Costs | Advertising CostsThe Company classifies expenses for advertising as general and administrative expenses and recognizes the expense when incurred. |
Share-Based Compensation | Stock-Based CompensationThe Company follows the provisions of ASC 718, "Share-Based Payments," which requires all share-based payments to employees to be recognized in the income statement based on their fair values. The Company uses the Black-Scholes pricing model for determining the fair value of stock options. The intrinsic value method is used to value restricted stock and restricted stock units. The Company has elected to recognize forfeitures as they occur. |
Concentration of Credit Risk | Concentration of Credit RiskFinancial instruments that potentially subject us to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. The Company performs ongoing credit evaluations of its customers and maintains allowances for potential credit losses. |
Income Taxes | Income Taxes The Company is subject to US income taxes on a stand-alone basis. The Company and its subsidiary, Profire Combustion, Inc. file separate stand-alone tax returns in each jurisdiction in which they operate. Profire Combustion, Inc. is a corporation operating in Canada and is subject to Canadian income taxes on its stand-alone taxable income. The Company utilizes an asset and liability approach for financial accounting and reporting for income taxes. Deferred income taxes are provided for temporary differences on the basis of assets and liabilities as reported for financial statement and income tax purposes. Deferred income taxes reflect the tax effects of net operating loss and tax credit carryovers and temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Realization of certain deferred tax assets is dependent upon future earnings, if any. The Company makes estimates and judgments in determining the need for a provision for income taxes, including the estimation of our taxable income for each full fiscal year. |
Defined Contribution Retirement Plan | Defined Contribution Retirement PlanThe Company matches employee contributions to our 401(k) plan up to 4% of their annual salary. The expense is recognized as part of general and administrative expenses on the income statement |
Property and Equipment | Property and EquipmentProperty and equipment are stated at historical cost and depreciated over the useful life of the asset using the straight-line method. Useful lives are assigned to assets depending on their category. |
Research and Development | Research and Development The Company's policy is to expense all costs associated with research and development ("R&D") that have no future alternative uses when those costs are incurred. Costs incurred to acquire assets currently used in R&D that do have future alternative uses are capitalized and the cost of depreciation is included in R&D expense. |
Fair Value of Financial Instruments | Fair Value of Financial InstrumentsThe carrying value of cash, cash equivalents, accounts receivable, accounts payable and accrued liabilities approximate their fair value because of the short-term nature of these instruments. Bond and mutual fund investments are presented at fair value as of the balance sheet date and accumulated gains or losses on those investments are reported in other comprehensive income. |
Earnings Per Share | Earnings Per ShareBasic earnings per share is calculated by dividing net income by the weighted average number of shares of common stock outstanding during each period. Diluted earnings per share is calculated by adjusting the weighted average number of shares of common stock outstanding for the dilutive effect, if any, of common stock equivalents. Common stock equivalents whose effect would be antidilutive are not included in diluted earnings per share. The Company uses the treasury stock method to determine the dilutive effect, which assumes that all common stock equivalents have been exercised at the beginning of the period and that the funds obtained from those exercises were used to repurchase shares of common stock of the Company at the average closing market price during the period. |
FINANCIAL INSTRUMENTS AND INV_2
FINANCIAL INSTRUMENTS AND INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Financial Instruments, Owned, at Fair Value [Abstract] | |
Unrealized Gain (Loss) on Investments | The following tables show the adjusted cost, unrealized gains (losses) and fair value of the Company's cash and cash equivalents and investments held as of December 31, 2021 and 2020: December 31, 2021 Adjusted Cost Pre-Tax Unrealized Gains/(Losses) Fair Value Cash and Cash Equivalents Short Term Long Term Level 1 Money Market Funds $ 3,587,278 $ — $ 3,587,278 $ 3,587,278 $ — $ — Other Funds 1,889,552 93,123 1,982,675 — — 1,982,675 5,476,830 93,123 5,569,953 3,587,278 — 1,982,675 Level 2 Corporate Bonds 1,396,435 (17,727) 1,378,708 — 101,004 1,277,704 Municipal Bonds 5,933,534 (21,425) 5,912,109 — 912,679 4,999,430 7,329,969 (39,152) 7,290,817 — 1,013,683 6,277,134 Total $ 12,806,799 $ 53,971 $ 12,860,770 $ 3,587,278 $ 1,013,683 $ 8,259,809 December 31, 2020 Adjusted Cost Pre-Tax Unrealized Gains/(Losses) Fair Value Cash and Cash Equivalents Short Term Long Term Level 1 Money Market Funds $ 4,315,394 $ — $ 4,315,394 $ 4,315,394 $ — $ — Other Funds 1,889,552 12,205 1,901,757 — — 1,901,757 6,204,946 12,205 6,217,151 4,315,394 — 1,901,757 Level 2 Corporate Bonds 1,610,092 22,222 1,632,314 — 754,586 877,728 Municipal Bonds 4,890,027 28,797 4,918,824 — 1,634,015 3,284,809 6,500,119 51,019 6,551,138 — 2,388,601 4,162,537 Total $ 12,705,065 $ 63,224 $ 12,768,289 $ 4,315,394 $ 2,388,601 $ 6,064,294 Pre-tax unrealized gains (losses) on investments incurred during the periods are presented below: For the Year Ended December 31, 2021 For the Year Ended December 31, 2020 Unrealized Holding Gains (Losses) $ (9,253) $ 36,922 |
Schedule of Maturities of Bonds | The maturities for bonds held by the Company as of December 31, 2021 are presented in the table below: Maturity Fair Value Less Than One Year $ 1,013,683 1-2 years 1,432,290 2-5 years 4,844,844 5-10 years — Over 10 years — $ 7,290,817 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventories consisted of the following at each balance sheet date: As of December 31, 2021 December 31, 2020 Raw materials $ 301,320 $ 328,772 Finished goods 7,556,048 9,229,298 Work in process — — Subtotal 7,857,368 9,558,070 Reserve for obsolescence (672,120) (1,143,298) Total $ 7,185,248 $ 8,414,772 |
PREPAID EXPENSES AND OTHER CU_2
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Current Assets | Prepaid expenses and other current assets consisted of the following at each balance sheet date: As of December 31, 2021 December 31, 2020 Assets classified as held for sale $ — $ 623,805 Prepaid inventory 530,725 542,313 Prepaid insurance 228,849 217,465 Interest receivables 63,841 65,984 Vehicle trade-in credits — 55,733 Other 201,861 173,128 Total $ 1,025,276 $ 1,678,428 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment and estimated useful lives are presented in the table below: As of December 31, 2021 December 31, 2020 Est. Useful Life Furniture and fixtures $ 652,859 $ 649,022 7 years Computers 465,758 394,945 3 years Software 246,963 246,958 2 years Machinery and equipment 488,652 477,468 7 years Vehicles 2,242,221 2,453,042 5 years Land and buildings 11,692,779 11,742,322 30 years Total property and equipment 15,789,232 15,963,757 Accumulated depreciation (4,603,693) (3,941,946) Net property and equipment $ 11,185,539 $ 12,021,811 |
Schedule of Depreciation Expense | The table below shows total depreciation and amortization expense and how depreciation is allocated between cost of goods sold and operating expenses: For the Year Ended December 31, 2021 For the Year Ended December 31, 2020 Cost of goods sold - product depreciation $ 338,748 $ 342,780 Cost of goods sold - service depreciation 154,460 154,755 Operating expense depreciation 500,142 391,958 Amortization expense 262,297 274,229 Total depreciation & amortization expense $ 1,255,647 $ 1,163,722 |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Intangible Assets, Net (Including Goodwill) [Abstract] | |
Schedule of Finite-Lived Intangible Assets | Intangible assets consisted of the following: Definite-lived intangible assets As of December 31, 2021 December 31, 2020 Definite-lived intangible assets $ 2,100,000 $ 2,100,000 Less: Accumulated amortization (550,862) (328,130) Definite-lived intangible assets, net $ 1,549,138 $ 1,771,870 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Estimated amortization expense for the next five years related to the definite-lived intangible assets is displayed in the following table: For the Years Ending December 31, Amount 2022 $ 217,871 2023 $ 204,190 2024 $ 148,565 2025 $ 80,899 2026 $ 80,899 Greater than 5 years $ 816,714 |
Schedule of Indefinite-Lived Intangible Assets | Indefinite-lived intangible assets As of December 31, 2021 December 31, 2020 Goodwill $ 2,579,381 $ 2,579,381 |
Other Liabilities (Tables)
Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities consisted of the following at each balance sheet date: As of December 31, 2021 December 31, 2020 Employee-related payables $ 1,621,131 $ 789,573 Inventory-related payables 67,027 158,519 Warranty liabilities 49,624 71,852 Other 134,566 176,926 Total $ 1,872,348 $ 1,196,870 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Components of Finance Lease Cost | The following table shows the components of financing lease cost: Financing Lease Cost For the Year Ended December 31, 2021 For the Year Ended December 31, 2020 Amortization of right-of-use assets $ 39,565 $ 56,318 Interest on lease liabilities 1,676 3,618 Total financing lease cost $ 41,241 $ 59,936 |
Future Minimum Lease Payments to Discounted Finance Lease Lability | The following table reconciles future minimum lease payments to the discounted finance lease liability: Years ending December 31 2022 $ 32,394 2023 19,591 2024 17,960 2025 — 2026 — Thereafter — Total future minimum lease payments $ 69,945 Less: Amount representing interest 3,819 Present value of future payments $ 66,126 Current portion $ 30,214 Long-term portion $ 35,912 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
Share-based Compensation Arrangement By Share-based Payment Award, Performance Metrics | The performance-vesting Units, including up to 136,362 Units for Mr. Oviatt, 136,362 Units for Mr. Tidball, 57,272 Units for Mr. Fugal, and 31,982 Units to Mr. Fisher, are eligible to vest over a three-year performance period beginning January 1, 2021 (the “Performance Period”) based upon the following Company performance metrics: Performance Metric Weight Target Above Target Outstanding Total Shareholder Return 1/3 135% 194% 253% Relative Total Shareholder Return 1/3 Third Quartile Second Quartile First Quartile EBITDA as a Percentage of Total Revenue 1/3 10% 15% 20% |
REVENUE (Tables)
REVENUE (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | All revenue recognized in the income statement is considered to be revenue from contracts with customers. The table below shows revenue by category: Year Ended December 31, 2021 Year Ended December 31, 2020 Electronics $ 9,076,345 $ 7,689,187 Manufactured 1,213,218 878,962 Re-Sell 13,401,431 10,827,490 Service 2,665,182 2,062,970 Total Revenue $ 26,356,176 $ 21,458,609 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Outstanding and Exercisable Awards | Information regarding outstanding options, restricted stock awards, and restricted stock units is summarized in the tables below: Total Outstanding and Exercisable Awards December 31, 2021 Awards Outstanding Awards Exercisable Grant Price Low Grant Price High Quantity Remaining Contractual Life (Years) Exercise Price Quantity Remaining Contractual Life (Years) Exercise Price $ — $ 0.39 738,873 2.41 $ — — $ 0.40 $ 0.80 579,000 2.64 $ 0.79 203,000 2.64 $ 0.79 $ 0.81 $ 0.84 304,700 2.40 $ 0.83 101,566 2.40 $ 0.83 1,622,573 2.49 $ 0.44 304,566 2.56 $ 0.80 Total Outstanding and Exercisable Awards December 31, 2020 Awards Outstanding Awards Exercisable Grant Price Low Grant Price High Quantity Remaining Contractual Life (Years) Exercise Price Quantity Remaining Contractual Life (Years) Exercise Price $ — $ 0.39 508,123 1.65 $ — — $ 0.40 $ 0.80 630,000 3.64 $ 0.79 — 0 $ — $ 0.81 $ 0.84 304,700 3.36 $ 0.83 — 0 $ — 1,442,823 2.88 $ 0.52 — 0 $ — |
Schedule of Stock Option Activity | Information regarding stock options for the year ended December 31, 2021 is summarized in the tables below: Stock Options Number of Awards Weighted Average Exercise Price Weighted Average Share Price on Date of Exercise Weighted Average Fair Value Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Outstanding, beginning of period 934,700 $ 0.80 0.37 $ 48,695 Granted — $ — — $ — Exercised/Released (7,000) $ 0.79 $ 1.12 0.37 $ 2,352 Canceled/Forfeited (44,000) $ 0.79 0.37 $ 17,820 Expired — $ — 0 $ — Outstanding, end of period 883,700 $ 0.80 0.37 2.56 $ 228,620 Vested and unvested exercisable, end of the period 304,566 $ 0.80 0.37 2.56 $ 78,957 Vested and expected to vest, end of the period 883,700 $ 0.80 $ 0.37 2.56 $ 228,620 Stock Options Number of Awards Weighted Average Exercise Price Weighted Average Grant Date Fair Value Weighted Average Remaining Amortization Period (Years) Unvested Outstanding, beginning of period 934,700 $ 0.80 $ 0.37 Granted — $ — $ — Canceled/Forfeited (44,000) $ 0.79 $ 0.37 Expired — Vested, outstanding shares (311,566) $ 0.80 $ 0.37 Unvested Outstanding, end of period 579,134 $ 0.80 $ 0.37 1.56 |
Schedule of Restricted Stock Activity | Information regarding restricted stock units for the year ended December 31, 2021 is summarized in the tables below: Restricted Stock Units Number of Awards Weighted Average Exercise Price Weighted Average Share Price on Date of Exercise Weighted Average Fair Value Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Outstanding, beginning of period 255,422 $ — $ 1.34 $ 217,747 Granted 408,164 $ — $ 1.14 $ 466,513 Exercised/Released (368,820) $ — $ 1.14 $ 1.14 $ 419,093 Cancelled/Forfeited (36,560) $ — $ 1.29 $ 43,506 Outstanding, end of period 258,206 $ — $ 1.33 2.24 $ 273,698 Vested and exercisable, end of the period — $ — Vested and expected to vest, end of the period 258,206 $ — $ 1.33 2.24 $ 273,698 Restricted Stock Units Number of Awards Weighted Average Exercise Price Weighted Average Grant Date Fair Value Weighted Average Remaining Amortization Period (Years) Unvested Outstanding, beginning of period 255,422 $ — $ 1.34 Granted 408,164 $ — $ 1.14 Cancelled/Forfeited (36,560) $ — $ 1.29 Vested, outstanding shares (368,820) $ — $ 1.14 Unvested Outstanding, end of period 258,206 $ — $ 1.33 1.15 Information regarding performance based restricted stock units for the year ended December 31, 2021 is summarized in the tables below: Performance Based Restricted Stock Units Number of Awards Weighted Average Exercise Price Weighted Average Share Price on Date of Exercise Weighted Average Fair Value Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Outstanding, beginning of period 252,701 $ — $ 1.99 $ 215,428 Granted 361,978 $ — $ 1.13 $ 409,035 Exercised/Released — $ — $ — $ — $ — Cancelled/Forfeited (134,012) $ — $ 2.37 $ 155,044 Outstanding, end of period 480,667 $ — $ 1.24 2.51 $ 509,507 Vested and exercisable, end of the period — $ — Vested and unvested exercisable, end of the period — $ — Vested and expected to vest, end of the period 180,989 $ — $ 1.13 3.00 $ 191,848 Performance Based Restricted Stock Units Number of Awards Weighted Average Exercise Price Weighted Average Grant Date Fair Value Weighted Average Remaining Amortization Period (Years) Unvested Outstanding, beginning of period 252,701 $ — $ 1.99 Granted 361,978 $ — $ 1.13 Cancelled/Forfeited (134,012) $ — $ 2.37 Vested, outstanding shares — $ — $ — Unvested Outstanding, end of period 480,667 $ — $ 1.24 2.00 |
PROVISION FOR INCOME TAXES (Tab
PROVISION FOR INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The table below outlines the components of income tax expense (benefit): For the Year Ended December 31, 2021 For the Year Ended December 31, 2020 Current U.S. Federal $ (492,757) $ (388,728) State and local 25,374 (97,426) Foreign (179,939) (73,417) Total Current (647,322) (559,571) Deferred U.S. Federal 15,831 61,388 State and local 2,133 14,616 Total Deferred 17,964 76,004 Total Benefit for Income Taxes $ (629,358) $ (483,567) |
Schedule of Effective Income Tax Rate Reconciliation | The table below reconciles our effective tax rate to the statutory tax rate: For the Year Ended December 31, 2021 For the Year Ended December 31, 2020 U.S. Federal statutory tax rate 21.0 % 21.0 % State and local statutory tax rate, net of federal effect 4.0 % 4.0 % Depreciation expense (2.9) % 3.2 % Tax-exempt income 2.9 % 1.8 % Unrealized gains and losses on investments 0.1 % (0.3) % Stock-based compensation — % (1.5) % Goodwill and intangible asset amortization 5.2 % (3.1) % Non-U.S. operations 9.2 % (8.0) % Other (2.1) % 1.1 % Effective tax rate 37.4 % 18.2 % |
Schedule of Deferred Tax Assets and Liabilities | The table below shows the components of deferred taxes: As of December 31, 2021 December 31, 2020 Bad debt $ 21,903 $ 32,158 Inventory reserve 130,776 294,505 Amortization 124,626 30,887 U.S. net operating loss 401,023 — Foreign net operating loss 163,254 — Deferred tax asset $ 841,582 $ 357,550 Unrealized gain on investments $ 12,651 $ 16,158 Depreciation 265,374 302,459 Goodwill 174,365 145,533 Stock compensation 362,044 416,270 Deferred tax liability $ 814,434 $ 880,420 Net Deferred Tax Asset (Liability) $ 27,148 $ (522,870) |
BASIC AND DILUTED EARNINGS PE_2
BASIC AND DILUTED EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share, Basic and Diluted [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table is a reconciliation of the numerator and denominators used in the earnings per share calculation: 2021 2020 Income (Numerator) Weighted Average Shares (Denominator) Per-Share Income (Numerator) Weighted Average Shares (Denominator) Per-Share Basic EPS Net income (loss) available to common stockholders $ (1,051,543) 48,070,581 $ (0.02) $ (2,175,597) 47,778,063 $ (0.05) Effect of Dilutive Securities Stock options & RSUs — — — — Diluted EPS Net income (loss) available to common stockholders + assumed conversions $ (1,051,543) 48,070,581 $ (0.02) $ (2,175,597) 47,778,063 $ (0.05) |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | The Company operates in the United States and Canada. Segment information for these geographic areas is as follows: For the Year Ended December 31, Revenues 2021 2020 Canada $ 5,362,466 $ 3,506,537 United States 20,993,710 17,952,072 Total Consolidated $ 26,356,176 $ 21,458,609 For the Year Ended December 31, Profit (Loss) 2021 2020 Canada $ (2,056,972) $ (943,635) United States 1,005,429 (1,231,962) Total Consolidated $ (1,051,543) $ (2,175,597) Long-lived assets, which are comprised of net property and equipment and financing right-of-use assets, for each geographical region were as follows at each balance sheet date: Long-lived assets As of December 31, 2021 December 31, 2020 Canada $ 5,667,225 $ 6,049,790 United States 5,583,594 6,022,115 Total Consolidated $ 11,250,819 $ 12,071,905 |
QUARTERLY INFORMATION (UNAUDI_2
QUARTERLY INFORMATION (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information | Quarterly data for the periods below consisted of the following: For the Quarters Ending Mar 31, 2021 Jun 30, 2021 Sep 30, 2021 Dec 31, 2021 Total revenues $ 5,092,349 $ 6,034,283 $ 6,943,198 $ 8,286,346 Gross profit 2,174,687 2,657,732 3,119,468 3,449,128 Loss from operations (804,225) (594,437) (318,289) (298,049) Income tax benefit 107,859 125,374 348,767 47,358 Net income (loss) (601,500) (397,166) 92,246 (145,123) Basic earnings (loss) per common share $ (0.01) $ (0.01) $ — $ — Diluted earnings (loss) per common share $ (0.01) $ (0.01) $ — $ — For the Quarters Ending Mar 31, 2020 Jun 30, 2020 Sep 30, 2020 Dec 31, 2020 Total revenues $ 7,447,142 $ 4,359,479 $ 4,000,106 $ 5,651,882 Gross profit 3,164,676 2,086,865 1,520,423 2,754,237 Income (loss) from operations (665,060) (1,077,453) (1,329,498) (8,200) Income tax benefit 225,056 35,628 180,252 42,631 Net income (loss) (365,264) (808,503) (1,057,748) 55,918 Basic earnings (loss) per common share $ (0.01) $ (0.02) (0.02) — Diluted earnings (loss) per common share $ (0.01) $ (0.02) (0.02) — |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | The future minimum lease payments for operating leases as of December 31, 2021, consisted of the following: Years ending December 31, Operating Leases 2022 $ 16,145 2023 — 2024 — 2025 — 2026 — Thereafter — Total $ 16,145 |
ORGANIZATION AND SUMMARY OF S_3
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 12 Months Ended | |
Dec. 31, 2021USD ($)$ / $ | Dec. 31, 2020USD ($)$ / $ | |
Translation rate (in US dollars per Canadian Dollars) | $ / $ | 0.7859 | 0.7843 |
Weighted average exchange rate (in US dollars per Canadian dollars) | $ / $ | 0.7845 | 0.7809 |
Cash, uninsured amount | $ 6,077,964 | $ 7,169,564 |
Allowance for doubtful accounts | 153,909 | 136,585 |
Bad debt expense | 15,979 | 184,293 |
Advertising costs | 51,212 | 27,098 |
General and administrative | $ 11,533,496 | 10,641,122 |
Defined Contribution Retirement Plan | ||
Employer match percentage of annual salary | 4.00% | |
General and administrative | $ 174,281 | $ 192,485 |
Customer Concentration Risk | Four Largest Customers | Revenue from Contract with Customer Benchmark | ||
Concentration risk, customer | 15.00% | 15.00% |
FINANCIAL INSTRUMENTS AND INV_3
FINANCIAL INSTRUMENTS AND INVESTMENTS - Schedule of Cash and Cash Equivalents and Investments (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Adjusted Cost | $ 12,806,799 | $ 12,705,065 |
Pre-Tax Unrealized Gains/(Losses) | 53,971 | 63,224 |
Fair Value | 12,860,770 | 12,768,289 |
Cash and Cash Equivalents | 3,587,278 | 4,315,394 |
Short Term | 1,013,683 | 2,388,601 |
Long Term | 8,259,809 | 6,064,294 |
Level 1 | ||
Adjusted Cost | 5,476,830 | 6,204,946 |
Pre-Tax Unrealized Gains/(Losses) | 93,123 | 12,205 |
Fair Value | 5,569,953 | 6,217,151 |
Cash and Cash Equivalents | 3,587,278 | 4,315,394 |
Short Term | 0 | 0 |
Long Term | 1,982,675 | 1,901,757 |
Level 2 | ||
Adjusted Cost | 7,329,969 | 6,500,119 |
Pre-Tax Unrealized Gains/(Losses) | (39,152) | 51,019 |
Fair Value | 7,290,817 | 6,551,138 |
Cash and Cash Equivalents | 0 | 0 |
Short Term | 1,013,683 | 2,388,601 |
Long Term | 6,277,134 | 4,162,537 |
Money Market Funds | Level 1 | ||
Adjusted Cost | 3,587,278 | 4,315,394 |
Fair Value | 3,587,278 | 4,315,394 |
Cash and Cash Equivalents | 3,587,278 | 4,315,394 |
Other Funds | Level 1 | ||
Adjusted Cost | 1,889,552 | 1,889,552 |
Pre-Tax Unrealized Gains/(Losses) | 93,123 | 12,205 |
Fair Value | 1,982,675 | 1,901,757 |
Cash and Cash Equivalents | 0 | 0 |
Short Term | 0 | 0 |
Long Term | 1,982,675 | 1,901,757 |
Corporate Bonds | Level 2 | ||
Adjusted Cost | 1,396,435 | 1,610,092 |
Pre-Tax Unrealized Gains/(Losses) | (17,727) | 22,222 |
Fair Value | 1,378,708 | 1,632,314 |
Cash and Cash Equivalents | 0 | 0 |
Short Term | 101,004 | 754,586 |
Long Term | 1,277,704 | 877,728 |
Municipal Bonds | Level 2 | ||
Adjusted Cost | 5,933,534 | 4,890,027 |
Pre-Tax Unrealized Gains/(Losses) | (21,425) | 28,797 |
Fair Value | 5,912,109 | 4,918,824 |
Cash and Cash Equivalents | 0 | 0 |
Short Term | 912,679 | 1,634,015 |
Long Term | $ 4,999,430 | $ 3,284,809 |
FINANCIAL INSTRUMENTS AND INV_4
FINANCIAL INSTRUMENTS AND INVESTMENTS - Unrealized Gain (Loss) on Investments (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Financial Instruments, Owned, at Fair Value [Abstract] | ||
Unrealized Holding Gains (Losses) | $ (9,253) | $ 36,922 |
FINANCIAL INSTRUMENTS AND INV_5
FINANCIAL INSTRUMENTS AND INVESTMENTS - Maturities for Bonds (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Fair Value | $ 12,860,770 | $ 12,768,289 |
Level 2 | ||
Fair Value | 7,290,817 | $ 6,551,138 |
Bonds | Level 2 | ||
Fair Value | 7,290,817 | |
Bonds | Level 2 | Less Than One Year | ||
Fair Value | 1,013,683 | |
Bonds | Level 2 | 1-2 years | ||
Fair Value | 1,432,290 | |
Bonds | Level 2 | 2-5 years | ||
Fair Value | 4,844,844 | |
Bonds | Level 2 | 5-10 years | ||
Fair Value | 0 | |
Bonds | Level 2 | Over 10 years | ||
Fair Value | $ 0 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 301,320 | $ 328,772 |
Finished goods | 7,556,048 | 9,229,298 |
Work in process | 0 | 0 |
Subtotal | 7,857,368 | 9,558,070 |
Reserve for obsolescence | (672,120) | (1,143,298) |
Total | $ 7,185,248 | $ 8,414,772 |
PREPAID EXPENSES AND OTHER CU_3
PREPAID EXPENSES AND OTHER CURRENT ASSETS - Schedule of other current assets (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Assets classified as held for sale | $ 0 | $ 623,805 |
Prepaid inventory | 530,725 | 542,313 |
Prepaid insurance | 228,849 | 217,465 |
Interest receivables | 63,841 | 65,984 |
Vehicle trade-in credits | 0 | 55,733 |
Other | 201,861 | 173,128 |
Total | $ 1,025,276 | $ 1,678,428 |
PREPAID EXPENSES AND OTHER CU_4
PREPAID EXPENSES AND OTHER CURRENT ASSETS - Narrative (Details) | 12 Months Ended |
Dec. 31, 2021CAD ($)bay | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Number of office building bays sold | bay | 3 |
Gain on disposition of property plant equipment | $ | $ 42,378 |
PROPERTY AND EQUIPMENT - Schedu
PROPERTY AND EQUIPMENT - Schedule of Property and Equipment (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Property and equipment, gross | $ 15,789,232 | $ 15,963,757 |
Accumulated depreciation | (4,603,693) | (3,941,946) |
Net property and equipment | 11,185,539 | 12,021,811 |
Furniture and fixtures | ||
Property and equipment, gross | $ 652,859 | 649,022 |
Est. Useful Life | 7 years | |
Computers | ||
Property and equipment, gross | $ 465,758 | 394,945 |
Est. Useful Life | 3 years | |
Software | ||
Property and equipment, gross | $ 246,963 | 246,958 |
Est. Useful Life | 2 years | |
Machinery and equipment | ||
Property and equipment, gross | $ 488,652 | 477,468 |
Est. Useful Life | 7 years | |
Vehicles | ||
Property and equipment, gross | $ 2,242,221 | 2,453,042 |
Est. Useful Life | 5 years | |
Land and buildings | ||
Property and equipment, gross | $ 11,692,779 | $ 11,742,322 |
Est. Useful Life | 30 years |
PROPERTY AND EQUIPMENT - Sche_2
PROPERTY AND EQUIPMENT - Schedule Of Depreciation Expense (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Total depreciation & amortization expense | $ 1,255,647 | $ 1,163,722 |
Cost of goods sold - product depreciation | ||
Total depreciation & amortization expense | 338,748 | 342,780 |
Cost of goods sold - service depreciation | ||
Total depreciation & amortization expense | 154,460 | 154,755 |
Operating expense depreciation | ||
Total depreciation & amortization expense | 500,142 | 391,958 |
Amortization expense | ||
Total depreciation & amortization expense | $ 262,297 | $ 274,229 |
INTANGIBLE ASSETS - Narrative (
INTANGIBLE ASSETS - Narrative (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Useful life of intangible assets | 3 years |
Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Useful life of intangible assets | 18 years |
INTANGIBLE ASSETS - Finite-Live
INTANGIBLE ASSETS - Finite-Lived Intangible Assets (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Definite-lived intangible assets, net | $ 1,549,138 | $ 1,771,870 |
Patents, trademarks, copyrights, and domain names | ||
Definite-lived intangible assets | 2,100,000 | 2,100,000 |
Less: Accumulated amortization | $ (550,862) | $ (328,130) |
INTANGIBLE ASSETS - Future Amor
INTANGIBLE ASSETS - Future Amortization Expense (Details) | Dec. 31, 2021USD ($) |
Intangible Assets, Net (Including Goodwill) [Abstract] | |
2022 | $ 217,871 |
2023 | 204,190 |
2024 | 148,565 |
2025 | 80,899 |
2026 | 80,899 |
Greater than 5 years | $ 816,714 |
INTANGIBLE ASSETS - Indefinite-
INTANGIBLE ASSETS - Indefinite-Lived Intangible Assets (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Intangible Assets, Net (Including Goodwill) [Abstract] | ||
Goodwill | $ 2,579,381 | $ 2,579,381 |
Schedule of Accrued Liabilities
Schedule of Accrued Liabilities (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Other Liabilities Disclosure [Abstract] | ||
Employee-related payables | $ 1,621,131 | $ 789,573 |
Inventory-related payables | 67,027 | 158,519 |
Warranty liabilities | 49,624 | 71,852 |
Other | 134,566 | 176,926 |
Total | $ 1,872,348 | $ 1,196,870 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | ||
Lease term | 36 months | |
Weighted average discount rate | 4.50% | |
Weighted average remaining lease term | 29 years 2 months 12 days | |
Short-term lease cost | $ 69,808 | $ 75,147 |
LEASES - Components of Financin
LEASES - Components of Financing Lease Cost (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | ||
Amortization of right-of-use assets | $ 39,565 | $ 56,318 |
Interest on lease liabilities | 1,676 | 3,618 |
Total financing lease cost | $ 41,241 | $ 59,936 |
LEASES - Future Minimum Lease P
LEASES - Future Minimum Lease Payments to Discounted Finance Lease Liability (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Finance Lease, Liability, Payment, Due [Abstract] | ||
2022 | $ 32,394 | |
2023 | 19,591 | |
2024 | 17,960 | |
2025 | 0 | |
2026 | 0 | |
Thereafter | 0 | |
Total future minimum lease payments | 69,945 | |
Less: Amount representing interest | 3,819 | |
Present value of future payments | 66,126 | |
Current portion | 30,214 | $ 39,451 |
Long-term portion | $ 35,912 | $ 12,669 |
STOCKHOLDERS' EQUITY (Details)
STOCKHOLDERS' EQUITY (Details) | Jun. 16, 2021USD ($)shares | May 28, 2021USD ($)agreementinstallmentbayshares | May 28, 2021CAD ($)agreementinstallmentbayshares | Feb. 18, 2021USD ($)shares | Aug. 21, 2020USD ($)$ / sharesshares | Jul. 02, 2020USD ($)$ / sharesshares | Jun. 17, 2020USD ($)shares | Mar. 17, 2020USD ($)$ / sharesshares | Apr. 22, 2019agreementshares | Oct. 31, 2021 | Dec. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2020USD ($)shares | Sep. 15, 2021USD ($) |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Treasury stock (in shares) | 4,076,909 | 3,412,378 | |||||||||||
Treasury stock | $ | $ 6,107,593 | $ 5,353,019 | |||||||||||
Stock repurchase program, authorized amount | $ | $ 2,000,000 | ||||||||||||
Cooling off period | 30 days | ||||||||||||
Treasury stock, shares, acquired (in shares) | 664,531 | 0 | |||||||||||
Shares issued (in shares) | 0 | ||||||||||||
Unamortized compensation expense | $ | $ 527,574 | ||||||||||||
Granted (in shares) | 630,000 | 115,200 | 0 | ||||||||||
Granted (in dollars per share) | $ / shares | $ 0.79 | $ 0.81 | $ 0 | ||||||||||
Grant expiration period | 1 year | ||||||||||||
Award vesting period | 5 years | ||||||||||||
RSUs | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Granted (in shares) | 189,471 | 92,934 | 270,966 | 408,164 | |||||||||
Shares issued (in shares) | 27,334 | ||||||||||||
Unamortized compensation expense | $ | $ 216,000 | $ 45,999 | |||||||||||
Award vesting rights, percentage | 50.00% | 50.00% | 50.00% | ||||||||||
Compensation expense | $ | $ 72,953 | $ 209,999 | |||||||||||
Award vesting period | 1 year | 1 year | 1 year | ||||||||||
Employee Stock Option | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Unamortized compensation expense | $ | $ 233,111 | $ 79,431 | $ 40,280 | ||||||||||
Grant expiration period | 4 years | 4 years | |||||||||||
Award vesting period | 3 years | 3 years | 3 years | ||||||||||
Employee Stock Option | Share-based Payment Arrangement, Tranche One | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Award vesting rights, percentage | 33.33% | 33.33% | 33.33% | ||||||||||
Employee Stock Option | Share-based Payment Arrangement, Tranche Two | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Award vesting rights, percentage | 33.33% | 33.33% | 33.33% | ||||||||||
Employee Stock Option | Share-based Payment Arrangement, Tranche Three | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Award vesting rights, percentage | 33.33% | 33.33% | 33.33% | ||||||||||
Chief Financial Officer | RSUs | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Granted (in shares) | 18,852 | ||||||||||||
Co Chief Executive Officer | RSUs | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Granted (in shares) | 18,852 | ||||||||||||
Two Thousand Twenty-One EIP | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Percentage of bonus paid in cash | 0.50 | 0.50 | |||||||||||
Percentage of bonus paid in stock | 50.00% | 50.00% | |||||||||||
Target payout percentage | 200.00% | 200.00% | |||||||||||
Performance metrics identified | bay | 3 | 3 | |||||||||||
Two Thousand Twenty-One EIP | Below Target | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Percentage of award covered by metric | 0.00% | 0.00% | |||||||||||
Two Thousand Twenty-One EIP | Target | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Percentage of award covered by metric | 50.00% | 50.00% | |||||||||||
Two Thousand Twenty-One EIP | Above Target | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Percentage of award covered by metric | 75.00% | 75.00% | |||||||||||
Two Thousand Twenty-One EIP | Outstanding | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Percentage of award covered by metric | 100.00% | 100.00% | |||||||||||
Two Thousand Twenty-One EIP | Share-based Payment Arrangement, Tranche One | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Percentage of award covered by metric | 33.00% | 33.00% | |||||||||||
Two Thousand Twenty-One EIP | Share-based Payment Arrangement, Tranche Two | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Percentage of award covered by metric | 67.00% | 67.00% | |||||||||||
Two Thousand Twenty-One EIP | Performance Shares | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Award vesting rights, percentage | 33.33% | 33.33% | |||||||||||
Award vesting period | 3 years | 3 years | |||||||||||
Two Thousand Twenty-One EIP | Chief Executive Officer | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Payments to employees | $ | $ 200,000 | ||||||||||||
Two Thousand Twenty-One EIP | Chief Financial Officer | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Payments to employees | $ | $ 150,000 | ||||||||||||
Two Thousand Twenty-One EIP | Chief Financial Officer | RSUs | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Granted (in shares) | 204,543 | 204,543 | |||||||||||
Two Thousand Twenty-One EIP | Chief Financial Officer | Time-based Units | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Granted (in shares) | 68,181 | 68,181 | |||||||||||
Two Thousand Twenty-One EIP | Chief Financial Officer | Performance Shares | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Granted (in shares) | 136,362 | 136,362 | |||||||||||
Two Thousand Twenty-One EIP | Chief Financial Officer | Performance Shares | Share-based Payment Arrangement, Tranche One | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Granted (in shares) | 45,454 | 45,454 | |||||||||||
Two Thousand Twenty-One EIP | Chief Business Development Officer | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Payments to employees | $ | $ 150,000 | ||||||||||||
Two Thousand Twenty-One EIP | Chief Business Development Officer | RSUs | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Granted (in shares) | 204,543 | 204,543 | |||||||||||
Share-based payment arrangement, number of agreements | agreement | 2 | 2 | |||||||||||
Two Thousand Twenty-One EIP | Chief Business Development Officer | Time-based Units | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Granted (in shares) | 68,181 | 68,181 | |||||||||||
Two Thousand Twenty-One EIP | Chief Business Development Officer | Performance Shares | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Granted (in shares) | 136,362 | 136,362 | |||||||||||
Two Thousand Twenty-One EIP | Chief Business Development Officer | Performance Shares | Share-based Payment Arrangement, Tranche One | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Granted (in shares) | 45,454 | 45,454 | |||||||||||
Two Thousand Twenty-One EIP | Vice President Of Operations | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Payments to employees | $ | $ 54,000 | ||||||||||||
Two Thousand Twenty-One EIP | Vice President Of Operations | RSUs | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Granted (in shares) | 85,908 | 85,908 | |||||||||||
Two Thousand Twenty-One EIP | Vice President Of Operations | Time-based Units | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Granted (in shares) | 28,636 | 28,636 | |||||||||||
Two Thousand Twenty-One EIP | Vice President Of Operations | Performance Shares | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Granted (in shares) | 57,272 | 57,272 | |||||||||||
Two Thousand Twenty-One EIP | Vice President Of Operations | Performance Shares | Share-based Payment Arrangement, Tranche One | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Granted (in shares) | 19,091 | 19,091 | |||||||||||
Two Thousand Twenty-One EIP | Vice President Of Production Development | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Payments to employees | $ | $ 51,000 | ||||||||||||
Two Thousand Twenty-One EIP | Vice President Of Production Development | RSUs | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Granted (in shares) | 47,973 | 47,973 | |||||||||||
Two Thousand Twenty-One EIP | Vice President Of Production Development | Time-based Units | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Granted (in shares) | 15,991 | 15,991 | |||||||||||
Number of annual installments for vesting | installment | 3 | 3 | |||||||||||
Two Thousand Twenty-One EIP | Vice President Of Production Development | Performance Shares | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Granted (in shares) | 31,982 | 31,982 | |||||||||||
Two Thousand Twenty-One EIP | Vice President Of Production Development | Performance Shares | Share-based Payment Arrangement, Tranche One | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Granted (in shares) | 10,661 | 10,661 | |||||||||||
LTIP 2019 | Vice President Of Operations | Share-based Payment Arrangement, Tranche One | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Granted (in shares) | 100,000 | ||||||||||||
LTIP 2019 | Vice President Of Operations | Share-based Payment Arrangement, Tranche Two | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Share price (in dollars per share) | $ / shares | $ 0.8439 | ||||||||||||
2019 LTIP | Performance Shares | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Share-based payment arrangement, number of agreements | agreement | 2 | ||||||||||||
2019 LTIP | Chief Financial Officer | Performance Shares | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Granted (in shares) | 66,213 | ||||||||||||
2019 LTIP | Chief Business Development Officer | Performance Shares | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Granted (in shares) | 51,646 | ||||||||||||
2019 LTIP | Vice President Of Operations | Performance Shares | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Granted (in shares) | 35,313 | ||||||||||||
2019 LTIP | Vice President Of Production Development | Performance Shares | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Granted (in shares) | 24,862 | ||||||||||||
2019 EIP | Share-based Payment Arrangement, Tranche One | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Percentage of award covered by metric | 33.00% | ||||||||||||
2019 EIP | Share-based Payment Arrangement, Tranche Two | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Percentage of award covered by metric | 67.00% |
STOCKHOLDERS' EQUITY - Performa
STOCKHOLDERS' EQUITY - Performance Metrics (Details) - shares | May 28, 2021 | Dec. 31, 2021 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 5 years | |
Target | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total Shareholder Return | 135.00% | |
Performance metric percentage, relative total shareholder return | 75.00% | |
EBITDA as a Percentage of Total Revenue | 10.00% | |
Above Target | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total Shareholder Return | 194.00% | |
Performance metric percentage, relative total shareholder return | 50.00% | |
EBITDA as a Percentage of Total Revenue | 15.00% | |
Outstanding | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total Shareholder Return | 253.00% | |
Performance metric percentage, relative total shareholder return | 25.00% | |
EBITDA as a Percentage of Total Revenue | 20.00% | |
Weight | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total Shareholder Return | 33.33% | |
Performance metric percentage, relative total shareholder return | 33.33% | |
EBITDA as a Percentage of Total Revenue | 33.33% | |
Performance Shares | Two Thousand Twenty-One EIP | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 3 years | |
Chief Financial Officer | Performance Shares | Two Thousand Twenty-One EIP | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (in shares) | 136,362 | |
Chief Business Development Officer | Performance Shares | Two Thousand Twenty-One EIP | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (in shares) | 136,362 | |
Vice President Of Operations | Performance Shares | Two Thousand Twenty-One EIP | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (in shares) | 57,272 | |
Vice President Of Production Development | Performance Shares | Two Thousand Twenty-One EIP | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (in shares) | 31,982 |
REVENUE - Disaggregation of Rev
REVENUE - Disaggregation of Revenue (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | ||||||||||
Return period | 90 days | |||||||||
Payment period after satisfaction of obligation | 30 days | |||||||||
Revenues | $ 8,286,346 | $ 6,943,198 | $ 6,034,283 | $ 5,092,349 | $ 5,651,882 | $ 4,000,106 | $ 4,359,479 | $ 7,447,142 | $ 26,356,176 | $ 21,458,609 |
Minimum | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Product warranty term | 90 days | |||||||||
Maximum | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Product warranty term | 2 years | |||||||||
Electronics | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Revenues | $ 9,076,345 | 7,689,187 | ||||||||
Manufactured | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Revenues | 1,213,218 | 878,962 | ||||||||
Re-Sell | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Revenues | 13,401,431 | 10,827,490 | ||||||||
Service | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Revenues | $ 2,665,182 | $ 2,062,970 |
STOCK-BASED COMPENSATION - Narr
STOCK-BASED COMPENSATION - Narrative (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 5 years | |
Grant expiration period | 1 year | |
Stock based compensation | $ 567,077 | $ 443,127 |
Unamortized compensation expense | $ 527,574 | |
Weighted average years remaining | 1 year 6 months 14 days | |
Cash received in exercise of stock options | $ 6,053 | 2,020 |
Intrinsic value of options exercised | 2,352 | 936 |
Fair value of units vested | $ 537,063 | $ 418,682 |
Shares granted during period (in shares) | 770,142 | 1,309,100 |
Weighted average grant date fair value (in dollars per share) | $ 1.14 | $ 0.52 |
Additional Paid-In Capital | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock based compensation | $ 567,077 | $ 443,127 |
2014 Equity Incentive Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares authorized (in shares) | 4,812,000 |
STOCK-BASED COMPENSATION - Opti
STOCK-BASED COMPENSATION - Options Outstanding and Exercisable (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Awards Outstanding | ||
Quantity (in shares) | 1,622,573 | 1,442,823 |
Remaining Contractual Life (in years) | 2 years 5 months 26 days | 2 years 10 months 17 days |
Exercise Price (in dollars per share) | $ 0.44 | $ 0.52 |
Awards Exercisable | ||
Quantity (in shares) | 304,566 | 0 |
Remaining Contractual Life (in years) | 2 years 6 months 21 days | 0 days |
Exercise Price (in dollars per share) | $ 0.80 | $ 0 |
$0 - $0.39 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Grant Price Low (in dollars per share) | 0 | |
Grant Price High (in dollars per share) | $ 0.39 | |
Awards Outstanding | ||
Quantity (in shares) | 738,873 | |
Remaining Contractual Life (in years) | 2 years 4 months 28 days | |
Exercise Price (in dollars per share) | $ 0 | |
Awards Exercisable | ||
Quantity (in shares) | 0 | |
$0.40 - $0.80 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Grant Price Low (in dollars per share) | $ 0.40 | |
Grant Price High (in dollars per share) | $ 0.80 | |
Awards Outstanding | ||
Quantity (in shares) | 579,000 | |
Remaining Contractual Life (in years) | 2 years 7 months 20 days | |
Exercise Price (in dollars per share) | $ 0.79 | |
Awards Exercisable | ||
Quantity (in shares) | 203,000 | |
Exercise Price (in dollars per share) | $ 0.79 | |
$0.81 - $0.85 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Grant Price Low (in dollars per share) | 0.81 | |
Grant Price High (in dollars per share) | $ 0.84 | |
Awards Outstanding | ||
Quantity (in shares) | 304,700 | |
Remaining Contractual Life (in years) | 2 years 4 months 24 days | |
Exercise Price (in dollars per share) | $ 0.83 | |
Awards Exercisable | ||
Quantity (in shares) | 101,566 | |
Exercise Price (in dollars per share) | $ 0.83 | |
$0 - $1.00 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Grant Price Low (in dollars per share) | 0 | |
Grant Price High (in dollars per share) | $ 0.39 | |
Awards Outstanding | ||
Quantity (in shares) | 508,123 | |
Remaining Contractual Life (in years) | 1 year 7 months 24 days | |
Exercise Price (in dollars per share) | $ 0 | |
Awards Exercisable | ||
Quantity (in shares) | 0 | |
$1.01 - $2.00 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Grant Price Low (in dollars per share) | $ 0.40 | |
Grant Price High (in dollars per share) | $ 0.80 | |
Awards Outstanding | ||
Quantity (in shares) | 630,000 | |
Remaining Contractual Life (in years) | 3 years 7 months 20 days | |
Exercise Price (in dollars per share) | $ 0.79 | |
Awards Exercisable | ||
Quantity (in shares) | 0 | |
Remaining Contractual Life (in years) | 2 years 7 months 20 days | 0 days |
Exercise Price (in dollars per share) | $ 0 | |
$2.01 - $4.03 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Grant Price Low (in dollars per share) | 0.81 | |
Grant Price High (in dollars per share) | $ 0.84 | |
Awards Outstanding | ||
Quantity (in shares) | 304,700 | |
Remaining Contractual Life (in years) | 3 years 4 months 9 days | |
Exercise Price (in dollars per share) | $ 0.83 | |
Awards Exercisable | ||
Quantity (in shares) | 0 | |
Remaining Contractual Life (in years) | 2 years 4 months 24 days | 0 days |
Exercise Price (in dollars per share) | $ 0 |
STOCK-BASED COMPENSATION - Stoc
STOCK-BASED COMPENSATION - Stock Option Activity (Details) - USD ($) | Aug. 21, 2020 | Mar. 17, 2020 | Dec. 31, 2021 | Dec. 31, 2020 |
Number of Awards | ||||
Outstanding, beginning of period (in shares) | 934,700 | |||
Granted (in shares) | 630,000 | 115,200 | 0 | |
Exercised/Released (in shares) | (7,000) | |||
Cancelled/Forfeited (in shares) | (44,000) | |||
Expired (in shares) | 0 | |||
Outstanding, end of period (in shares) | 883,700 | 934,700 | ||
Vested and exercisable, end of the period (in shares) | 304,566 | |||
Vested and expected to vest, end of the period (in shares) | 883,700 | |||
Weighted Average Exercise Price | ||||
Outstanding, beginning of period (in dollars per share) | $ 0.80 | $ 0.80 | ||
Granted (in dollars per share) | $ 0.79 | $ 0.81 | 0 | |
Exercised/Released (in dollars per share) | 0.79 | |||
Cancelled/Forfeited (in dollars per share) | 0.79 | |||
Expired (in dollars per share) | 0 | |||
Outstanding, end of period (in dollars per share) | 0.80 | 0.80 | ||
Vested and exercisable, end of the period (in dollars per share) | 0.80 | |||
Vested and expected to vest, end of the period (in dollars per share) | 0.80 | |||
Weighted Average Share Price on Date of Exercise | ||||
Exercised/Released (in dollars per share) | 1.12 | |||
Weighted Average Fair Value | ||||
Outstanding, beginning of period (in dollars per share) | 0.37 | |||
Granted (in dollars per share) | 0 | |||
Exercised/Released (in dollars per share) | 0.37 | |||
Cancelled/Forfeited (in dollars per share) | 0.37 | |||
Expired (in dollars per share) | 0 | |||
Outstanding, end of period (in dollars per share) | 0.37 | $ 0.37 | ||
Vested and exercisable, end of the period (in dollars per share) | 0.37 | |||
Vested and expected to vest, end of the period (in dollars per share) | $ 0.37 | |||
Weighted Average Remaining Contractual Life (Years) | ||||
Outstanding, end of period | 2 years 6 months 21 days | |||
Vested and unvested exercisable, end of the period | 2 years 6 months 21 days | |||
Vested and expected to vest, end of the period | 2 years 6 months 21 days | |||
Aggregate Intrinsic Value | ||||
Outstanding, beginning of period | $ 228,620 | $ 48,695 | ||
Granted | 0 | |||
Exercised/Released | 2,352 | 936 | ||
Cancelled/Forfeited | 17,820 | |||
Expired | 0 | |||
Outstanding, end of period | 228,620 | $ 48,695 | ||
Vested and exercisable, end of the period | 78,957 | |||
Vested and expected to vest, end of the period | $ 228,620 | |||
Number of Awards | ||||
Unvested Outstanding, beginning of period (in shares) | 934,700 | |||
Granted (in shares) | 630,000 | 115,200 | 0 | |
Cancelled/Forfeited (in shares) | (44,000) | |||
Expired (in shares) | 0 | |||
Vested, outstanding shares (in shares) | (311,566) | |||
Unvested Outstanding, end of period (in shares) | 579,134 | 934,700 | ||
Weighted Average Exercise Price | ||||
Unvested Outstanding, beginning of period (in dollars per share) | $ 0.80 | |||
Granted (in dollars per share) | $ 0.79 | $ 0.81 | 0 | |
Cancelled/Forfeited (in dollars per share) | 0.79 | |||
Vested, outstanding shares (in dollars per share) | 0.80 | |||
Unvested Outstanding, end of period (in dollars per share) | 0.80 | $ 0.80 | ||
Weighted Average Grant Date Fair Value | ||||
Unvested Outstanding, beginning of period (in dollars per share) | 0.37 | |||
Granted (in dollars per share) | 0 | |||
Cancelled/Forfeited (in dollars per share) | 0.37 | |||
Vested, outstanding shares (in dollars per share) | 0.37 | |||
Unvested Outstanding, end of period (in dollars per share) | $ 0.37 | $ 0.37 | ||
Weighted Average Remaining Amortization Period (Years) | ||||
Unvested Outstanding, end of period | 1 year 6 months 21 days |
STOCK-BASED COMPENSATION - Rest
STOCK-BASED COMPENSATION - Restricted Stock and Restricted Stock Units Activity (Details) - USD ($) | Jun. 16, 2021 | Aug. 21, 2020 | Jun. 17, 2020 | Dec. 31, 2021 | Dec. 31, 2020 |
Number of Awards | |||||
Cancelled/Forfeited (in shares) | (44,000) | ||||
Vested and exercisable, end of the period (in shares) | 304,566 | ||||
Weighted Average Share Price on Date of Exercise | |||||
Exercised/Released (in dollars per share) | $ 1.12 | ||||
Weighted Average Fair Value | |||||
Cancelled/Forfeited (in dollars per share) | $ 0.37 | ||||
Aggregate Intrinsic Value | |||||
Cancelled/Forfeited | $ 17,820 | ||||
Vested and exercisable, end of the period | $ 78,957 | ||||
Number of Awards | |||||
Cancelled/Forfeited (in shares) | (44,000) | ||||
Weighted Average Grant Date Fair Value | |||||
Cancelled/Forfeited (in dollars per share) | $ 0.37 | ||||
RSUs | |||||
Number of Awards | |||||
Outstanding, beginning of period (in shares) | 258,206 | 255,422 | |||
Granted (in shares) | 189,471 | 92,934 | 270,966 | 408,164 | |
Exercised/Released (in shares) | (368,820) | ||||
Cancelled/Forfeited (in shares) | (36,560) | ||||
Outstanding, end of period (in shares) | 258,206 | ||||
Vested and exercisable, end of the period (in shares) | 0 | ||||
Vested and expected to vest, end of the period (in shares) | 258,206 | ||||
Weighted Average Share Price on Date of Exercise | |||||
Exercised/Released (in dollars per share) | $ 1.14 | ||||
Weighted Average Fair Value | |||||
Outstanding, beginning of period (in dollars per share) | 1.33 | $ 1.34 | |||
Granted (in dollars per share) | 1.14 | ||||
Exercised/Released (in dollars per share) | 1.14 | ||||
Cancelled/Forfeited (in dollars per share) | 1.29 | ||||
Outstanding, end of period (in dollars per share) | 1.33 | ||||
Vested and expected to vest, end of the period (usd per share) | $ 1.33 | ||||
Weighted Average Remaining Contractual Life (Years) | |||||
Outstanding, end of period | 2 years 2 months 26 days | ||||
Vested and expected to vest, end of the period | 2 years 2 months 26 days | ||||
Aggregate Intrinsic Value | |||||
Outstanding, beginning of period | $ 217,747 | ||||
Granted | 466,513 | ||||
Exercised/Released | 419,093 | ||||
Cancelled/Forfeited | 43,506 | ||||
Outstanding, end of period | 273,698 | ||||
Vested and exercisable, end of the period | 0 | ||||
Vested and expected to vest, end of the period | $ 273,698 | ||||
Number of Awards | |||||
Unvested Outstanding, beginning of period (in shares) | 255,422 | ||||
Granted (in shares) | 189,471 | 92,934 | 270,966 | 408,164 | |
Cancelled/Forfeited (in shares) | (36,560) | ||||
Vested, outstanding shares (in shares) | (368,820) | ||||
Unvested Outstanding, end of period (in shares) | 258,206 | ||||
Weighted Average Grant Date Fair Value | |||||
Unvested Outstanding, beginning of period (in dollars per share) | $ 1.33 | $ 1.34 | |||
Granted (in dollars per share) | 1.14 | ||||
Cancelled/Forfeited (in dollars per share) | 1.29 | ||||
Vested, outstanding shares (in dollars per share) | 1.14 | ||||
Unvested Outstanding, end of period (in dollars per share) | $ 1.33 | ||||
Weighted Average Remaining Amortization Period (Years) | |||||
Unvested Outstanding, end of period | 1 year 1 month 24 days | ||||
PBRSUs | |||||
Number of Awards | |||||
Outstanding, beginning of period (in shares) | 480,667 | 252,701 | |||
Granted (in shares) | 361,978 | ||||
Exercised/Released (in shares) | 0 | ||||
Cancelled/Forfeited (in shares) | (134,012) | ||||
Outstanding, end of period (in shares) | 480,667 | ||||
Vested and exercisable, end of the period (in shares) | 0 | ||||
Vested and expected to vest, end of the period (in shares) | 180,989 | ||||
Weighted Average Share Price on Date of Exercise | |||||
Exercised/Released (in dollars per share) | $ 0 | ||||
Weighted Average Fair Value | |||||
Outstanding, beginning of period (in dollars per share) | 1.24 | $ 1.99 | |||
Granted (in dollars per share) | 1.13 | ||||
Exercised/Released (in dollars per share) | 0 | ||||
Cancelled/Forfeited (in dollars per share) | 2.37 | ||||
Outstanding, end of period (in dollars per share) | 1.24 | ||||
Vested and expected to vest, end of the period (usd per share) | $ 1.13 | ||||
Weighted Average Remaining Contractual Life (Years) | |||||
Outstanding, end of period | 2 years 6 months 3 days | ||||
Vested and expected to vest, end of the period | 3 years | ||||
Aggregate Intrinsic Value | |||||
Outstanding, beginning of period | $ 215,428 | ||||
Granted | 409,035 | ||||
Exercised/Released | 0 | ||||
Cancelled/Forfeited | 155,044 | ||||
Outstanding, end of period | 509,507 | ||||
Vested and exercisable, end of the period | 0 | ||||
Vested and expected to vest, end of the period | $ 191,848 | ||||
Number of Awards | |||||
Unvested Outstanding, beginning of period (in shares) | 252,701 | ||||
Granted (in shares) | 361,978 | ||||
Cancelled/Forfeited (in shares) | (134,012) | ||||
Vested, outstanding shares (in shares) | 0 | ||||
Unvested Outstanding, end of period (in shares) | 480,667 | ||||
Weighted Average Grant Date Fair Value | |||||
Unvested Outstanding, beginning of period (in dollars per share) | $ 1.24 | $ 1.99 | |||
Granted (in dollars per share) | 1.13 | ||||
Cancelled/Forfeited (in dollars per share) | 2.37 | ||||
Vested, outstanding shares (in dollars per share) | 0 | ||||
Unvested Outstanding, end of period (in dollars per share) | $ 1.24 | ||||
Weighted Average Remaining Amortization Period (Years) | |||||
Unvested Outstanding, end of period | 2 years |
PROVISION FOR INCOME TAXES - Na
PROVISION FOR INCOME TAXES - Narrative (Details) | 12 Months Ended | |||
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2021CAD ($) | Dec. 31, 2020CAD ($) | |
Income Tax Contingency [Line Items] | ||||
Accrued interest and penalties | $ 0 | $ 0 | ||
Operating loss carryforwards, valuation allowance, percentage | 80.00% | 100.00% | ||
Income taxes receivable | $ 100,000 | $ 450,000 | ||
Other comprehensive income (loss), tax expense (benefit) | (2,158) | 9,319 | ||
Canadian Subsidiary | ||||
Income Tax Contingency [Line Items] | ||||
Operating loss carryforwards | $ 4,351,044 | $ 4,241,450 | ||
US Subsidary | ||||
Income Tax Contingency [Line Items] | ||||
Operating loss carryforwards | $ 1,575,071 | $ 1,314,358 |
PROVISION FOR INCOME TAXES - Co
PROVISION FOR INCOME TAXES - Components of Income Tax Expense (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Current | ||||||||||
U.S. Federal | $ (492,757) | $ (388,728) | ||||||||
State and local | 25,374 | (97,426) | ||||||||
Foreign | (179,939) | (73,417) | ||||||||
Total Current | (647,322) | (559,571) | ||||||||
Deferred | ||||||||||
U.S. Federal | 15,831 | 61,388 | ||||||||
State and local | 2,133 | 14,616 | ||||||||
Total Deferred | 17,964 | 76,004 | ||||||||
Total Benefit for Income Taxes | $ (47,358) | $ (348,767) | $ (125,374) | $ (107,859) | $ (42,631) | $ (180,252) | $ (35,628) | $ (225,056) | $ (629,358) | $ (483,567) |
PROVISION FOR INCOME TAXES - Ef
PROVISION FOR INCOME TAXES - Effective Income Tax Rate Reconciliation (Details) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
U.S. Federal statutory tax rate | 21.00% | 21.00% |
State and local statutory tax rate, net of federal effect | 4.00% | 4.00% |
Depreciation expense | (2.90%) | 3.20% |
Tax-exempt income | 2.90% | 1.80% |
Unrealized gains and losses on investments | 0.10% | (0.30%) |
Stock-based compensation | 0.00% | (1.50%) |
Goodwill and intangible asset amortization | 5.20% | (3.10%) |
Non-U.S. operations | 9.20% | (8.00%) |
Other | (2.10%) | 1.10% |
Effective tax rate | 37.40% | 18.20% |
PROVISION FOR INCOME TAXES - De
PROVISION FOR INCOME TAXES - Deferred Tax Assets and Liabilities (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Income Tax Disclosure [Abstract] | ||
Bad debt | $ 21,903 | $ 32,158 |
Inventory reserve | 130,776 | 294,505 |
Amortization | 124,626 | 30,887 |
U.S. net operating loss | 401,023 | 0 |
Deferred Tax Assets, Operating Loss Carryforwards | 163,254 | 0 |
Deferred tax asset | 841,582 | 357,550 |
Unrealized gain on investments | 12,651 | 16,158 |
Depreciation | 265,374 | 302,459 |
Goodwill | 174,365 | 145,533 |
Stock compensation | 362,044 | 416,270 |
Deferred tax liability | 814,434 | 880,420 |
Net Deferred Tax Asset | $ 27,148 | |
Net Deferred Tax Liability | $ (522,870) |
BASIC AND DILUTED EARNINGS PE_3
BASIC AND DILUTED EARNINGS PER SHARE - Calculation of EPS (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income (Numerator) | ||||||||||
Net income (loss) available to common stockholders | $ (145,123) | $ 92,246 | $ (397,166) | $ (601,500) | $ 55,918 | $ (1,057,748) | $ (808,503) | $ (365,264) | $ (1,051,543) | $ (2,175,597) |
Stock options & RSUs | 0 | 0 | ||||||||
Net income (loss) available to common stockholders + assumed conversions | $ (1,051,543) | $ (2,175,597) | ||||||||
Weighted Average Shares (Denominator) | ||||||||||
Net income (loss) available to common stockholders (shares) | 48,070,581 | 47,778,063 | ||||||||
Stock options & RSUs (shares) | 0 | 0 | ||||||||
Net income (loss) available to common stockholders + assumed conversions (shares) | 48,070,581 | 47,778,063 | ||||||||
Per-Share Amount | ||||||||||
Net income (loss) available to common stockholders (in dollars per share) | $ 0 | $ 0 | $ (0.01) | $ (0.01) | $ 0 | $ (0.02) | $ (0.02) | $ (0.01) | $ (0.02) | $ (0.05) |
Net income (loss) available to common stockholders + assumed conversions (in dollars per share) | $ 0 | $ 0 | $ (0.01) | $ (0.01) | $ 0 | $ (0.02) | $ (0.02) | $ (0.01) | $ (0.02) | $ (0.05) |
BASIC AND DILUTED EARNINGS PE_4
BASIC AND DILUTED EARNINGS PER SHARE - Narrative (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings Per Share, Basic and Diluted [Abstract] | ||
Antidilutive securities excluded (in shares) | 1,622,573 | 1,442,823 |
Antidilutive securities excluded (in dollars per share) | $ 1.13 | $ 0.52 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues | $ 8,286,346 | $ 6,943,198 | $ 6,034,283 | $ 5,092,349 | $ 5,651,882 | $ 4,000,106 | $ 4,359,479 | $ 7,447,142 | $ 26,356,176 | $ 21,458,609 |
Profit (Loss) | (145,123) | $ 92,246 | $ (397,166) | $ (601,500) | 55,918 | $ (1,057,748) | $ (808,503) | $ (365,264) | (1,051,543) | (2,175,597) |
Long-lived assets | 11,250,819 | 12,071,905 | 11,250,819 | 12,071,905 | ||||||
Canada | ||||||||||
Revenues | 5,362,466 | 3,506,537 | ||||||||
Profit (Loss) | (2,056,972) | (943,635) | ||||||||
Long-lived assets | 5,667,225 | 6,049,790 | 5,667,225 | 6,049,790 | ||||||
United States | ||||||||||
Revenues | 20,993,710 | 17,952,072 | ||||||||
Profit (Loss) | 1,005,429 | (1,231,962) | ||||||||
Long-lived assets | $ 5,583,594 | $ 6,022,115 | $ 5,583,594 | $ 6,022,115 |
QUARTERLY INFORMATION (UNAUDI_3
QUARTERLY INFORMATION (UNAUDITED) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | ||||||||||
Total revenues | $ 8,286,346 | $ 6,943,198 | $ 6,034,283 | $ 5,092,349 | $ 5,651,882 | $ 4,000,106 | $ 4,359,479 | $ 7,447,142 | $ 26,356,176 | $ 21,458,609 |
Gross profit | 3,449,128 | 3,119,468 | 2,657,732 | 2,174,687 | 2,754,237 | 1,520,423 | 2,086,865 | 3,164,676 | 11,401,015 | 9,526,201 |
LOSS FROM OPERATIONS | (298,049) | (318,289) | (594,437) | (804,225) | (8,200) | (1,329,498) | (1,077,453) | (665,060) | (2,015,000) | (3,080,211) |
Income tax benefit | 47,358 | 348,767 | 125,374 | 107,859 | 42,631 | 180,252 | 35,628 | 225,056 | 629,358 | 483,567 |
Net loss | $ (145,123) | $ 92,246 | $ (397,166) | $ (601,500) | $ 55,918 | $ (1,057,748) | $ (808,503) | $ (365,264) | $ (1,051,543) | $ (2,175,597) |
Basic earnings (loss) per common share (in dollars per share) | $ 0 | $ 0 | $ (0.01) | $ (0.01) | $ 0 | $ (0.02) | $ (0.02) | $ (0.01) | $ (0.02) | $ (0.05) |
Diluted earnings (loss) per common share (in dollars per share) | $ 0 | $ 0 | $ (0.01) | $ (0.01) | $ 0 | $ (0.02) | $ (0.02) | $ (0.01) | $ (0.02) | $ (0.05) |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Narrative (Details) | 1 Months Ended | 12 Months Ended | |
Mar. 31, 2014CAD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |||
Consulting agreement term | 10 years | ||
Consulting agreement, quarterly payments | $ 100,000 | ||
Rent expense | $ 69,808 | $ 60,590 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Schedule of Future Minimum Rental Payments for Operating Leases' (Details) | Dec. 31, 2021USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2022 | $ 16,145 |
2023 | 0 |
2024 | 0 |
2025 | 0 |
2026 | 0 |
Thereafter | 0 |
Total | $ 16,145 |
GOVERNMENT ASSISTANCE (Details)
GOVERNMENT ASSISTANCE (Details) - CAD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Government Assistance [Abstract] | ||
Labor expense, offset, Canada emergency wage subsidy | $ 163,598 | $ 754,887 |
Labor expense, offset, various Canada grant programs | $ 24,659 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) | Mar. 02, 2022 | Feb. 14, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Mar. 07, 2022 |
Subsequent Event [Line Items] | |||||
Proceeds from sale of office building | $ 177,851 | $ 514,448 | |||
Shares issued (in shares) | 0 | ||||
Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Proceeds from sale of office building | $ 325,000 | ||||
Shares issued (in shares) | 182,626 | ||||
Performance target evaluation period | 3 years | ||||
Shares repurchased (in shares) | 248,466 | ||||
Share repurchase price | $ 284,446 |