Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2022 | May 02, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
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 | |
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 | |
Entity Shell Company | false | |
Title of 12(b) Security | Common, $0.001 Par Value | |
Trading Symbol | PFIE | |
Security Exchange Name | NASDAQ | |
Entity Common Stock, Shares Outstanding (in shares) | 47,126,537 | |
Amendment Flag | false | |
Entity Central Index Key | 0001289636 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 6,879,467 | $ 8,188,270 |
Short-term investments | 454,046 | 1,013,683 |
Accounts receivable, net | 8,137,354 | 6,262,799 |
Inventories, net (note 3) | 7,744,924 | 7,185,248 |
Prepaid expenses and other current assets (note 4) | 1,066,799 | 1,025,276 |
Income tax receivable | 121,407 | 560,445 |
Total Current Assets | 24,403,997 | 24,235,721 |
LONG-TERM ASSETS | ||
Net deferred tax asset | 165,797 | 163,254 |
Long-term investments | 7,852,860 | 8,259,809 |
Financing right-of-use asset | 52,862 | 65,280 |
Property and equipment, net | 11,165,706 | 11,185,539 |
Intangible assets, net | 1,493,455 | 1,549,138 |
Goodwill | 2,579,381 | 2,579,381 |
Total Long-Term Assets | 23,310,061 | 23,802,401 |
TOTAL ASSETS | 47,714,058 | 48,038,122 |
CURRENT LIABILITIES | ||
Accounts payable | 1,505,193 | 1,822,559 |
Accrued liabilities (note 5) | 1,694,926 | 1,872,348 |
Current financing lease liability (note 6) | 22,096 | 30,214 |
Total Current Liabilities | 3,222,215 | 3,725,121 |
LONG-TERM LIABILITIES | ||
Net deferred income tax liability | 183,136 | 136,106 |
Long-term financing lease liability (note 6) | 31,401 | 35,912 |
TOTAL LIABILITIES | 3,436,752 | 3,897,139 |
STOCKHOLDERS' EQUITY (note 7) | ||
Preferred stock: $0.001 par value, 10,000,000 shares authorized: no shares issued or outstanding | 0 | 0 |
Common stock: $0.001 par value, 100,000,000 shares authorized: 51,860,036 issued and 47,273,496 outstanding at March 31, 2022, and 51,720,142 issued and 47,643,233 outstanding at December 31, 2021 | 51,860 | 51,720 |
Treasury stock, at cost | (6,729,856) | (6,107,593) |
Additional paid-in capital | 31,079,446 | 30,819,394 |
Accumulated other comprehensive loss | (2,229,234) | (2,100,467) |
Retained earnings | 22,105,090 | 21,477,929 |
TOTAL STOCKHOLDERS' EQUITY | 44,277,306 | 44,140,983 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 47,714,058 | $ 48,038,122 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2022 | Dec. 31, 2021 |
Stock Transactions, Parenthetical Disclosures [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) | 51,860,036 | 51,720,142 |
Common stock, shares outstanding (in shares) | 47,273,496 | 47,643,233 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
REVENUES (note 8) | ||
Total Revenues | $ 9,503,140 | $ 5,092,349 |
COST OF SALES | ||
Total Cost of Sales | 4,946,436 | 2,917,662 |
GROSS PROFIT | 4,556,704 | 2,174,687 |
OPERATING EXPENSES | ||
General and administrative | 3,392,379 | 2,554,536 |
Research and development | 308,316 | 256,891 |
Depreciation and amortization | 167,015 | 167,485 |
Total Operating Expenses | 3,867,710 | 2,978,912 |
INCOME (LOSS) FROM OPERATIONS | 688,994 | (804,225) |
OTHER INCOME (EXPENSE) | ||
Gain on sale of property and equipment | 95,842 | 73,901 |
Other expense | (18,778) | (97) |
Interest income | 21,545 | 21,062 |
Total Other Income | 98,609 | 94,866 |
INCOME (LOSS) BEFORE INCOME TAXES | 787,603 | (709,359) |
INCOME TAX BENEFIT (EXPENSE) | (160,442) | 107,859 |
NET INCOME (LOSS) | 627,161 | (601,500) |
OTHER COMPREHENSIVE INCOME (LOSS) | ||
Foreign currency translation gain | 158,359 | 139,606 |
Unrealized losses on investments | (287,126) | (7,974) |
Total Other Comprehensive Income (Loss) | (128,767) | 131,632 |
TOTAL COMPREHENSIVE INCOME (LOSS) | $ 498,394 | $ (469,868) |
BASIC EARNINGS (LOSS) PER SHARE (in dollars per share) | $ 0.01 | $ (0.01) |
FULLY DILUTED EARNINGS (LOSS) PER SHARE (in dollars per share) | $ 0.01 | $ (0.01) |
BASIC WEIGHTED AVG NUMBER OF SHARES OUTSTANDING (in shares) | 47,481,439 | 47,990,101 |
FULLY DILUTED WEIGHTED AVG NUMBER OF SHARES OUTSTANDING (in shares) | 48,536,418 | 47,990,101 |
Product | ||
REVENUES (note 8) | ||
Total Revenues | $ 8,878,423 | $ 4,657,535 |
COST OF SALES | ||
Total Cost of Sales | 4,382,700 | 2,537,634 |
Service | ||
REVENUES (note 8) | ||
Total Revenues | 624,717 | 434,814 |
COST OF SALES | ||
Total Cost of Sales | $ 563,736 | $ 380,028 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - 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, 2020 | 47,972,583 | |||||
Balance, beginning 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 [Roll Forward] | ||||||
Stock based compensation | 125,043 | 125,043 | ||||
Stock issued in settlement of RSUs (in shares) | 49,113 | |||||
Stock issued in settlement of RSUs and accrued bonuses | 0 | $ 49 | (49) | |||
Tax withholdings paid related to stock based compensation | (26,629) | (26,629) | ||||
Foreign currency translation | 139,606 | 139,606 | ||||
Unrealized losses on investments | (7,974) | (7,974) | ||||
Net Income (Loss) | (601,500) | (601,500) | ||||
Balance, end of period (in shares) at Mar. 31, 2021 | 48,021,696 | |||||
Balance, end of period at Mar. 31, 2021 | 45,000,932 | $ 51,434 | 30,391,837 | (2,017,292) | (5,353,019) | 21,927,972 |
Balance, beginning of period (in shares) at Dec. 31, 2021 | 47,643,233 | |||||
Balance, beginning of period at Dec. 31, 2021 | 44,140,983 | $ 51,720 | 30,819,394 | (2,100,467) | (6,107,593) | 21,477,929 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock based compensation | 138,503 | 138,503 | ||||
Stock issued in settlement of RSUs (in shares) | 139,894 | |||||
Stock issued in settlement of RSUs and accrued bonuses | 212,787 | $ 140 | 212,647 | |||
Tax withholdings paid related to stock based compensation | (91,098) | (91,098) | ||||
Treasury stock repurchased (in shares) | (509,631) | |||||
Treasury stock repurchased | (622,263) | (622,263) | ||||
Foreign currency translation | 158,359 | 158,359 | ||||
Unrealized losses on investments | (287,126) | (287,126) | ||||
Net Income (Loss) | 627,161 | 627,161 | ||||
Balance, end of period (in shares) at Mar. 31, 2022 | 47,273,496 | |||||
Balance, end of period at Mar. 31, 2022 | $ 44,277,306 | $ 51,860 | $ 31,079,446 | $ (2,229,234) | $ (6,729,856) | $ 22,105,090 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
OPERATING ACTIVITIES | ||
Net Income (Loss) | $ 627,161 | $ (601,500) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization expense | 281,119 | 293,615 |
Gain on sale of property and equipment | (95,842) | (73,901) |
Bad debt expense | 28,453 | (3,084) |
Stock awards issued for services | 138,503 | 125,043 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (1,663,295) | 974,602 |
Income taxes receivable/payable | 439,034 | (94,597) |
Inventories | (530,568) | 342,980 |
Prepaid expenses and other current assets | 49,283 | 906,459 |
Deferred tax asset/liability | 47,030 | (707) |
Accounts payable and accrued liabilities | (513,227) | (48,245) |
Net Cash Provided by (Used in) Operating Activities | (1,192,349) | 1,820,665 |
INVESTING ACTIVITIES | ||
Proceeds from sale of property and equipment | 112,982 | 27,784 |
Sale (purchase) of investments | 679,636 | (438,830) |
Purchase of property and equipment | (207,848) | (57,825) |
Net Cash Provided by (Used in) Investing Activities | 584,770 | (468,871) |
FINANCING ACTIVITIES | ||
Value of equity awards surrendered by employees for tax liability | (91,098) | (26,629) |
Purchase of treasury stock | (622,263) | 0 |
Principal paid towards lease liability | (12,629) | (11,227) |
Net Cash Used in Financing Activities | (725,990) | (37,856) |
Effect of exchange rate changes on cash | 24,766 | 13,179 |
NET CHANGE IN CASH | (1,308,803) | 1,327,117 |
CASH AT BEGINNING OF PERIOD | 8,188,270 | 9,148,312 |
CASH AT END OF PERIOD | 6,879,467 | 10,475,429 |
CASH PAID FOR: | ||
Interest | 697 | 1,936 |
Income taxes | 0 | 0 |
NON-CASH FINANCING AND INVESTING ACTIVITIES | ||
Common stock issued in settlement of accrued bonuses | $ 212,787 | $ 0 |
CONDENSED FINANCIAL STATEMENTS
CONDENSED FINANCIAL STATEMENTS | 3 Months Ended |
Mar. 31, 2022 | |
Condensed Financial Information Disclosure [Abstract] | |
CONDENSED FINANCIAL STATEMENTS | CONDENSED FINANCIAL STATEMENTS Except where the context otherwise requires, all references herein to the "Company," "Profire," "we," "us," "our," or similar words and phrases are to Profire Energy, Inc. and its wholly owned subsidiaries, taken together. The accompanying consolidated financial statements have been prepared by the Company without audit. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations, stockholders' equity, and cash flows at March 31, 2022 and for all periods presented herein have been made. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("US GAAP") have been condensed or omitted. These condensed consolidated financial statements should be read in conjunction with the Company's audited financial statements contained in its annual report on Form 10-K for the year ended December 31, 2021 ("Form 10-K"). The results of operations for the three-month periods ended March 31, 2022 and 2021 are not necessarily indicative of the operating results for the full years. |
ORGANIZATION AND SUMMARY OF SIG
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2022 | |
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 the Company is presented to assist in understanding the Company's condensed consolidated financial statements. The Company's accounting policies conform to "US GAAP." The Company provides burner-management products, solutions and services primarily for the oil and gas industry within the US and Canadian markets. The Company has begun expanding outside of these markets to other international locations and into other industries with burner management requirements. Significant Accounting Policies There have been no changes to the significant accounting policies of the Company from the information provided in Note 1 of the notes to the consolidated financial statements in the Company's most recent Form 10-K. Recent Accounting Pronouncements The Company has evaluated all recent accounting pronouncements and determined that the adoption of pronouncements applicable to the Company has not had or is not expected to have a material impact on the Company's financial position, results of operations or cash flows. |
INVENTORIES
INVENTORIES | 3 Months Ended |
Mar. 31, 2022 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES Inventories consisted of the following at each balance sheet date: As of March 31, 2022 December 31, 2021 Raw materials $ 264,861 $ 301,320 Finished goods 8,023,220 7,556,048 Subtotal 8,288,081 7,857,368 Reserve for obsolescence (543,157) (672,120) Total $ 7,744,924 $ 7,185,248 |
PREPAID EXPENSES AND OTHER CURR
PREPAID EXPENSES AND OTHER CURRENT ASSETS | 3 Months Ended |
Mar. 31, 2022 | |
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 March 31, 2022 December 31, 2021 Assets classified as held for sale $ 84,996 $ — Prepaid inventory 592,209 530,725 Prepaid insurance 157,029 228,849 Interest receivables 60,449 63,841 Other 172,116 201,861 Total $ 1,066,799 $ 1,025,276 In the table above, the assets classified as "held for sale" consisted of an office and storage building located in Greeley, Colorado. We entered into a contract to sell this building on February 14, 2022. The sale closed on April 13, 2022 at which time, we received cash proceeds from the sale of $299,837. |
ACCRUED LIABILITIES
ACCRUED LIABILITIES | 3 Months Ended |
Mar. 31, 2022 | |
Other Liabilities Disclosure [Abstract] | |
ACCRUED LIABILITIES | ACCRUED LIABILITIES Accrued liabilities consisted of the following at each balance sheet date: As of March 31, 2022 December 31, 2021 Employee-related payables $ 1,135,327 $ 1,621,131 Deferred revenue 175,540 817 Inventory-related payables 82,295 67,027 Tax-related payables 73,790 37,880 Warranty liabilities 56,737 49,624 Other 171,237 95,869 Total $ 1,694,926 $ 1,872,348 |
LEASES
LEASES | 3 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
LEASES | LEASES We 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 for purposes of determining our lease liabilities. The weighted average discount rate applied to our financing leases is 4.50% and the weighted average remaining lease term is 29.5 months. The following table shows the components of financing lease cost: For the Three Months Ended March 31, Financing Lease Cost 2022 2021 Amortization of right-of-use assets $ 12,418 $ 11,567 Interest on lease liabilities 696 699 Total financing lease cost $ 13,114 $ 12,266 The following table reconciles future minimum lease payments to the discounted finance lease liability: Years ending December 31, Amount 2022 $ 19,068 2023 19,591 2024 17,960 2025 — 2026 — Thereafter — Total future minimum lease payments $ 56,619 Less: Amount representing interest 3,122 Present value of future payments $ 53,497 Current portion $ 22,096 Long-term portion $ 31,401 Because our office space leases are substantially all considered to be short-term, we have elected not to recognize them on our balance sheet under the short-term recognition exemption. During the three months ended March 31, 2022 and March 31, 2021, we recognized $20,652 and $16,262, respectively, in short-term lease costs associated with office space leases. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS' EQUITY As of March 31, 2022, and December 31, 2021, the Company held 4,586,540 and 4,076,909 shares of its common stock in treasury at a total cost of $6,729,856 and $6,107,593, respectively. On September 15, 2021, the Company's board of directors authorized 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. All purchases under this program will be made at the discretion of management. The size and timing of purchases depends on price, market and business conditions and other factors. As of March 31, 2022, the Company had 373,956 restricted stock units ("RSUs"), 399,854 performance-based RSUs, and 861,700 stock options outstanding with $576,248 in remaining compensation expense to be recognized over the next 1.5 years. See further details below about certain subsets of these outstanding equity-based awards. 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 former Vice President of Operations, and Patrick D. Fisher, the Company’s Vice President of Product Development. The 2021 EIP provided for the potential award of incentive compensation to the participants based on the Company’s financial performance in fiscal 2021. The incentive compensation was payable in cash and stock, and the stock portion of the incentive compensation was intended to constitute an award under the Company’s 2014 Equity Incentive Plan, as amended (the “Plan”). Participants were 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 were based on the Company’s total revenue, EBITDA, and a non-financial milestone relating to revenue source diversification. Each of these performance goals were weighted one third in calculating incentive compensation amounts. On March 2, 2022, the Compensation Committee approved the incentive compensation amounts based on achieving certain targets pursuant to the 2021 EIP. The incentive compensation amounts earned under the 2021 EIP were paid 50% in cash and 50% in shares of restricted stock under the Plan. The incentive compensation amounts resulted in the Compensation Committee approving a one-time bonus for company executives that was settled by issuing a total of 182,626 shares of common stock, or 120,097 shares net of tax withholding. These shares were fully vested as of March 2, 2022. 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 Plan (the “2021 LTIP”). The 2021 LTIP consists of total awards of up to 204,543 RSUs to Mr. Oviatt, up to 204,543 RSUs to Mr. Tidball, up to 85,908 RSUs to Mr. Fugal, and up to 47,973 RSUs to Mr. Fisher, pursuant to two separate restricted stock unit award agreements (collectively, the “2021 LTIP Restricted Stock Unit Award Agreements”) between the Company and each participant. One agreement covers 33% of each award recipient’s RSUs that are subject to time-based vesting, and the other agreement covers the remaining 67% of such award recipient’s RSUs 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 “2021 LTIP Performance Vesting Date”). The RSUs subject to time-based vesting, including 68,181 RSUs to Mr. Oviatt, 68,181 RSUs for Mr. Tidball, 28,636 RSUs to Mr. Fugal, and 15,991 RSUs to Mr. Fisher, will vest in three The performance-vesting RSUs, including up to 136,362 RSUs for Mr. Oviatt, 136,362 RSUs for Mr. Tidball, 57,272 RSUs for Mr. Fugal, and 31,982 RSUs to Mr. Fisher, are eligible to vest over a three-year performance period beginning January 1, 2021 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 RSUs, consisting of 45,454 RSUs for Mr. Oviatt, 45,454 RSUs for Mr. Tidball, 19,091 RSUs for Mr. Fugal, and 10,661 RSUs for Mr. Fisher, are eligible to vest for each of the three performance metrics identified in the table above. The number of RSUs that will vest for each performance metric on the 2021 LTIP 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 did not receive incentive compensation under the 2021 EIP and will not receive incentive compensation under the 2021 LTIP, and his unvested RSUs have been forfeited. 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 filed as exhibits to its quarterly report on Form 10-Q for the quarter ended June 30, 2021. 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 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. |
REVENUE
REVENUE | 3 Months Ended |
Mar. 31, 2022 | |
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. See Note 5 for the amount accrued for expected returns and warranty claims as of March 31, 2022. Contract Balances We have elected to use the practical expedient in ASC 340-40-25-4 (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. Occasionally, we collect milestone payments up front from customers on larger jobs. These payments are classified as deferred revenue until the deliverables have been met and revenue can be properly recognized in our financial statements. Each of the contracts related to these milestone payments is short-term in nature and we expect to recognize associated revenues within one year. As a result, we consider it appropriate to record deferred revenue for these transactions and do not have any other contract liability balances. 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: For the Three Months Ended March 31, 2022 2021 Electronics $ 3,478,112 $ 1,851,799 Manufactured 521,128 236,810 Re-Sell 4,879,183 2,568,926 Service 624,717 434,814 Total Revenue $ 9,503,140 $ 5,092,349 |
BASIC AND DILUTED EARNINGS (LOS
BASIC AND DILUTED EARNINGS (LOSS) PER SHARE | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
BASIC AND DILUTED EARNINGS (LOSS) PER SHARE | BASIC AND DILUTED EARNINGS (LOSS) PER SHARE The following table is a reconciliation of the numerator and denominators used in the earnings per share calculation: For the Three Months Ended March 31, 2022 2021 Income (Numerator) Weighted Average Shares (Denominator) Per-Share Loss (Numerator) Weighted Average Shares (Denominator) Per-Share Basic EPS Net income (loss) available to common stockholders $ 627,161 47,481,439 $ 0.01 $ (601,500) 47,990,101 $ (0.01) Effect of Dilutive Securities Stock options & RSUs — 1,054,979 — — Diluted EPS Net income (loss) available to common stockholders + assumed conversions $ 627,161 48,536,418 $ 0.01 $ (601,500) 47,990,101 $ (0.01) |
SEGMENT INFORMATION
SEGMENT INFORMATION | 3 Months Ended |
Mar. 31, 2022 | |
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 Three Months Ended March 31, Sales 2022 2021 Canada $ 1,997,251 $ 828,445 United States 7,505,889 4,263,904 Total Consolidated $ 9,503,140 $ 5,092,349 For the Three Months Ended March 31, Profit (Loss) 2022 2021 Canada $ (352,570) $ (320,762) United States 979,731 (280,738) Total Consolidated $ 627,161 $ (601,500) As of Long-Lived Assets March 31, 2022 December 31, 2021 Canada $ 5,680,731 $ 5,667,225 United States 5,537,837 5,583,594 Total Consolidated $ 11,218,568 $ 11,250,819 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2022 | |
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. On April 6, 2022, the Compensation Committee approved the 2022 Executive Incentive Plan (the “EIP”) for, Ryan W. Oviatt, Cameron M. Tidball, and Patrick D. Fisher. The 2022 EIP provides for the potential award of incentive compensation to the participants based on the Company’s financial performance in fiscal 2022. 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 Plan. In addition to the 2022 EIP, the Board also approved as a long-term incentive plan the grants of restricted stock unit awards to Messrs. Oviatt, Tidball, and Fisher pursuant to the Plan (the “2022 LTIP”). 2022 EIP Under the terms of the 2022 EIP, each participating executive officer has been assigned a target incentive compensation amount for fiscal 2022. The target incentive compensation amount for Mr. Oviatt is $198,000, the target incentive compensation amount for Mr. Tidball is $198,000, and the target incentive compensation for Mr. Fisher is $64,750 CAD. Participants will be eligible to receive incentive compensation based upon reaching or exceeding performance goals established by the Compensation Committee for fiscal 2022. The performance goals in the 2022 EIP are based on the Company’s total revenue, EBITDA, and a non-financial milestone relating to revenue source diversification to be determined by the Compensation Committee. Each of these performance goals will be weighted one third in calculating incentive compensation amounts. The incentive compensation amounts earned under the 2022 EIP, if any, will be paid 50% in cash and 50% in shares of restricted stock under the 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 Plan. The actual incentive compensation amounts, if any, will be determined by the Compensation Committee upon the completion of fiscal 2022 and paid by March 15, 2023, subject to all applicable tax withholding. 2022 LTIP The 2022 LTIP consists of total awards of up to 230,232 RSUs to Mr. Oviatt, up to 230,232 RSUs to Mr. Tidball, and up to 43,023 RSUs to Mr. Fisher, pursuant to two separate restricted stock unit award agreements (collectively, the “2022 LTIP Restricted Stock Unit Award Agreements”) to be entered between the Company and each participant. One such agreement will cover 33% of each award recipient’s RSUs that are subject to time-based vesting, and the other such agreement will cover the remaining 67% of such award recipient’s RSUs 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 2022 LTIP began on January 1, 2022 and terminates on December 31, 2024 (the “2022 LTIP Performance Vesting Date”). The RSUs subject to time-based vesting, including 76,744 RSUs to Mr. Oviatt, 76,744 RSUs for Mr. Tidball, and 14,341 RSUs to Mr. Fisher, will vest in three equal and annual installments beginning December 31, 2022 and ending on December 31, 2024 if the award recipients’ employment continues with the Company through such dates. The performance-vesting RSUs, including up to 153,488 RSUs for Mr. Oviatt, 153,488 RSUs for Mr. Tidball, and 28,682 RSUs to Mr. Fisher, may vest over a three-year performance period beginning January 1, 2022 based upon the following Company performance metrics: Performance Metric Weight Target Above Target Outstanding Total Shareholder Return (based on the Company’s closing price of its common stock at the end of the Performance Period relative to its closing price as of the last trading day in 2021) 1/3 88.7% 135.8% 183% Relative Total Shareholder Return (based on the Company’s ranked performance in closing stock price growth relative to a peer group of companies during the Performance Period) 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 RSUs, consisting of 51,163 RSUs for Mr. Oviatt, 51,163 RSUs for Mr. Tidball, and 9,561 RSUs for Mr. Fisher, may vest for each of the three performance metrics identified in the table above. The number of RSUs that will vest for each performance metric on the 2022 LTIP Performance Vesting Date shall be determined as follows: a. if the “Target” level for such performance metric is not achieved, none of the Units relating to such performance metric will vest; b. if the “Target” level (but no higher level) for such performance metric is achieved, 50% of the RSUs relating to such performance metric will vest; c. if the “Above Target” level (but no higher level) for such performance metric is achieved, 75% of the RSUs relating to such performance metric will vest; and d. if the “Outstanding” level for such performance metric is achieved, 100% of the RSUs relating to such performance metric will vest. The foregoing summary of the 2022 EIP and the 2022 LTIP Restricted Stock Unit Award Agreements is qualified in its entirety by the text of the 2022 EIP and each of the 2022 LTIP Restricted Stock Unit Award Agreements, which are filed as exhibits to this Form 10-Q for the quarter ending March 31, 2022. Stock Repurchase During the period beginning April 1, 2022 and ended May 2, 2022, the Company repurchased 142,683 shares of its common stock for a total repurchase price of $188,526 pursuant to its previously authorized repurchase program. All repurchases were made at market rates. |
ORGANIZATION AND SUMMARY OF S_2
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements The Company has evaluated all recent accounting pronouncements and determined that the adoption of pronouncements applicable to the Company has not had or is not expected to have a material impact on the Company's financial position, results of operations or cash flows. |
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. See Note 5 for the amount accrued for expected returns and warranty claims as of March 31, 2022. Contract Balances We have elected to use the practical expedient in ASC 340-40-25-4 (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. Occasionally, we collect milestone payments up front from customers on larger jobs. These payments are classified as deferred revenue until the deliverables have been met and revenue can be properly recognized in our financial statements. Each of the contracts related to these milestone payments is short-term in nature and we expect to recognize associated revenues within one year. As a result, we consider it appropriate to record deferred revenue for these transactions and do not have any other contract liability balances. |
INVENTORIES (Tables)
INVENTORIES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventories consisted of the following at each balance sheet date: As of March 31, 2022 December 31, 2021 Raw materials $ 264,861 $ 301,320 Finished goods 8,023,220 7,556,048 Subtotal 8,288,081 7,857,368 Reserve for obsolescence (543,157) (672,120) Total $ 7,744,924 $ 7,185,248 |
PREPAID EXPENSES AND OTHER CU_2
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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 March 31, 2022 December 31, 2021 Assets classified as held for sale $ 84,996 $ — Prepaid inventory 592,209 530,725 Prepaid insurance 157,029 228,849 Interest receivables 60,449 63,841 Other 172,116 201,861 Total $ 1,066,799 $ 1,025,276 |
ACCRUED LIABILITIES (Tables)
ACCRUED LIABILITIES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities consisted of the following at each balance sheet date: As of March 31, 2022 December 31, 2021 Employee-related payables $ 1,135,327 $ 1,621,131 Deferred revenue 175,540 817 Inventory-related payables 82,295 67,027 Tax-related payables 73,790 37,880 Warranty liabilities 56,737 49,624 Other 171,237 95,869 Total $ 1,694,926 $ 1,872,348 |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Components of Financing Lease Cost | The following table shows the components of financing lease cost: For the Three Months Ended March 31, Financing Lease Cost 2022 2021 Amortization of right-of-use assets $ 12,418 $ 11,567 Interest on lease liabilities 696 699 Total financing lease cost $ 13,114 $ 12,266 |
Future Minimum Lease Payments to Discounted Finance Lease Liability | The following table reconciles future minimum lease payments to the discounted finance lease liability: Years ending December 31, Amount 2022 $ 19,068 2023 19,591 2024 17,960 2025 — 2026 — Thereafter — Total future minimum lease payments $ 56,619 Less: Amount representing interest 3,122 Present value of future payments $ 53,497 Current portion $ 22,096 Long-term portion $ 31,401 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Share-based Compensation Arrangement By Share-based Payment Award, Performance Metrics | The performance-vesting RSUs, including up to 136,362 RSUs for Mr. Oviatt, 136,362 RSUs for Mr. Tidball, 57,272 RSUs for Mr. Fugal, and 31,982 RSUs to Mr. Fisher, are eligible to vest over a three-year performance period beginning January 1, 2021 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% The performance-vesting RSUs, including up to 153,488 RSUs for Mr. Oviatt, 153,488 RSUs for Mr. Tidball, and 28,682 RSUs to Mr. Fisher, may vest over a three-year performance period beginning January 1, 2022 based upon the following Company performance metrics: Performance Metric Weight Target Above Target Outstanding Total Shareholder Return (based on the Company’s closing price of its common stock at the end of the Performance Period relative to its closing price as of the last trading day in 2021) 1/3 88.7% 135.8% 183% Relative Total Shareholder Return (based on the Company’s ranked performance in closing stock price growth relative to a peer group of companies during the Performance Period) 1/3 Third Quartile Second Quartile First Quartile EBITDA as a Percentage of Total Revenue 1/3 10% 15% 20% |
REVENUE (Tables)
REVENUE (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue by Product Line | The table below shows revenue by category: For the Three Months Ended March 31, 2022 2021 Electronics $ 3,478,112 $ 1,851,799 Manufactured 521,128 236,810 Re-Sell 4,879,183 2,568,926 Service 624,717 434,814 Total Revenue $ 9,503,140 $ 5,092,349 |
BASIC AND DILUTED EARNINGS (L_2
BASIC AND DILUTED EARNINGS (LOSS) PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [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: For the Three Months Ended March 31, 2022 2021 Income (Numerator) Weighted Average Shares (Denominator) Per-Share Loss (Numerator) Weighted Average Shares (Denominator) Per-Share Basic EPS Net income (loss) available to common stockholders $ 627,161 47,481,439 $ 0.01 $ (601,500) 47,990,101 $ (0.01) Effect of Dilutive Securities Stock options & RSUs — 1,054,979 — — Diluted EPS Net income (loss) available to common stockholders + assumed conversions $ 627,161 48,536,418 $ 0.01 $ (601,500) 47,990,101 $ (0.01) |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Segment Information for Geographic Areas | Segment information for these geographic areas is as follows: For the Three Months Ended March 31, Sales 2022 2021 Canada $ 1,997,251 $ 828,445 United States 7,505,889 4,263,904 Total Consolidated $ 9,503,140 $ 5,092,349 For the Three Months Ended March 31, Profit (Loss) 2022 2021 Canada $ (352,570) $ (320,762) United States 979,731 (280,738) Total Consolidated $ 627,161 $ (601,500) As of Long-Lived Assets March 31, 2022 December 31, 2021 Canada $ 5,680,731 $ 5,667,225 United States 5,537,837 5,583,594 Total Consolidated $ 11,218,568 $ 11,250,819 |
Subsequent Events (Tables)
Subsequent Events (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Subsequent Events [Abstract] | |
Share-based Compensation Arrangement By Share-based Payment Award, Performance Metrics | The performance-vesting RSUs, including up to 136,362 RSUs for Mr. Oviatt, 136,362 RSUs for Mr. Tidball, 57,272 RSUs for Mr. Fugal, and 31,982 RSUs to Mr. Fisher, are eligible to vest over a three-year performance period beginning January 1, 2021 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% The performance-vesting RSUs, including up to 153,488 RSUs for Mr. Oviatt, 153,488 RSUs for Mr. Tidball, and 28,682 RSUs to Mr. Fisher, may vest over a three-year performance period beginning January 1, 2022 based upon the following Company performance metrics: Performance Metric Weight Target Above Target Outstanding Total Shareholder Return (based on the Company’s closing price of its common stock at the end of the Performance Period relative to its closing price as of the last trading day in 2021) 1/3 88.7% 135.8% 183% Relative Total Shareholder Return (based on the Company’s ranked performance in closing stock price growth relative to a peer group of companies during the Performance Period) 1/3 Third Quartile Second Quartile First Quartile EBITDA as a Percentage of Total Revenue 1/3 10% 15% 20% |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 264,861 | $ 301,320 |
Finished goods | 8,023,220 | 7,556,048 |
Subtotal | 8,288,081 | 7,857,368 |
Reserve for obsolescence | (543,157) | (672,120) |
Total | $ 7,744,924 | $ 7,185,248 |
PREPAID EXPENSES AND OTHER CU_3
PREPAID EXPENSES AND OTHER CURRENT ASSETS - Schedule of other current assets (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Assets classified as held for sale | $ 84,996 | $ 0 |
Prepaid inventory | 592,209 | 530,725 |
Prepaid insurance | 157,029 | 228,849 |
Interest receivables | 60,449 | 63,841 |
Other | 172,116 | 201,861 |
Total | $ 1,066,799 | $ 1,025,276 |
PREPAID EXPENSES AND OTHER CU_4
PREPAID EXPENSES AND OTHER CURRENT ASSETS - Narrative (Details) | Apr. 13, 2022USD ($) |
Subsequent Event | |
Property, Plant and Equipment [Line Items] | |
Proceeds from sale of office and storage building | $ 299,837 |
ACCRUED LIABILITIES - Schedule
ACCRUED LIABILITIES - Schedule of Accrued Liabilities (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Other Liabilities Disclosure [Abstract] | ||
Employee-related payables | $ 1,135,327 | $ 1,621,131 |
Deferred revenue | 175,540 | 817 |
Inventory-related payables | 82,295 | 67,027 |
Tax-related payables | 73,790 | 37,880 |
Warranty liabilities | 56,737 | 49,624 |
Other | 171,237 | 95,869 |
Total | $ 1,694,926 | $ 1,872,348 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Leases [Abstract] | ||
Lease term | 36 months | |
Weighted average discount rate | 4.50% | |
Weighted average remaining lease term | 29 years 6 months | |
Short-term lease cost | $ 20,652 | $ 16,262 |
LEASES - Components of Financin
LEASES - Components of Financing Lease Cost (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Leases [Abstract] | ||
Amortization of right-of-use assets | $ 12,418 | $ 11,567 |
Interest on lease liabilities | 696 | 699 |
Total financing lease cost | $ 13,114 | $ 12,266 |
LEASES - Future Minimum Lease P
LEASES - Future Minimum Lease Payments to Discounted Finance Lease Liability (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Years ending December 31, | ||
2022 | $ 19,068 | |
2023 | 19,591 | |
2024 | 17,960 | |
2025 | 0 | |
2026 | 0 | |
Thereafter | 0 | |
Total future minimum lease payments | 56,619 | |
Less: Amount representing interest | 3,122 | |
Present value of future payments | 53,497 | |
Current portion | 22,096 | $ 30,214 |
Long-term portion | $ 31,401 | $ 35,912 |
STOCKHOLDERS' EQUITY - Narrativ
STOCKHOLDERS' EQUITY - Narrative (Details) | Mar. 02, 2022shares | Jun. 16, 2021USD ($)shares | May 28, 2021bayagreementshares | Feb. 18, 2021USD ($)shares | Aug. 21, 2020 | Jul. 02, 2020 | Jun. 17, 2020 | Mar. 17, 2020 | Mar. 31, 2022USD ($)shares | Dec. 31, 2021USD ($)shares | Sep. 15, 2021USD ($) |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Treasury stock (in shares) | 4,586,540 | 4,076,909 | |||||||||
Treasury stock, at cost | $ | $ 6,729,856 | $ 6,107,593 | |||||||||
Authorized shares, amount | $ | $ 2,000,000 | ||||||||||
Compensation expense | $ | $ 576,248 | ||||||||||
Compensation expense recognition period | 1 year 6 months | ||||||||||
Shares issued (in shares) | 182,626 | ||||||||||
Shares Issued net of shares for tax withholdings | 120,097 | ||||||||||
2021 LTIP | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Number of performance metrics | bay | 3 | ||||||||||
2021 LTIP | Below Target | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Percentage of award covered by metric | 0.00% | ||||||||||
2021 LTIP | Target | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Percentage of award covered by metric | 50.00% | ||||||||||
2021 LTIP | Above Target | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Percentage of award covered by metric | 75.00% | ||||||||||
2021 LTIP | Outstanding | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Percentage of award covered by metric | 100.00% | ||||||||||
2021 EIP | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Percentage of bonus paid in cash | 50.00% | ||||||||||
Percentage of bonus paid in stock | 50.00% | ||||||||||
Tranche One | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Award vesting percentage | 33.33% | ||||||||||
Tranche One | 2021 LTIP | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Percentage of award covered by metric | 33.00% | ||||||||||
Tranche Two | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Award vesting percentage | 33.33% | ||||||||||
Tranche Two | 2021 LTIP | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Percentage of award covered by metric | 67.00% | ||||||||||
Tranche Three | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Award vesting percentage | 33.33% | ||||||||||
Restricted Stock Units | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Units outstanding (in shares) | 373,956 | ||||||||||
Compensation expense | $ | $ 45,999 | ||||||||||
Shares issued (in shares) | 27,334 | ||||||||||
Number of shares granted (shares) | 189,471 | ||||||||||
Award vesting period | 1 year | 1 year | |||||||||
Award vesting percentage | 50.00% | ||||||||||
Unrecognized compensation cost | $ | $ 216,000 | ||||||||||
Restricted Stock Units | 2021 LTIP | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Number of restricted stock unit award agreements | agreement | 2 | ||||||||||
Performance Shares | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Units outstanding (in shares) | 399,854 | ||||||||||
Performance Shares | 2021 LTIP | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Award vesting period | 3 years | ||||||||||
Award vesting percentage | 33.33% | ||||||||||
Employee Stock Option | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Stock options outstanding (in shares) | 861,700 | ||||||||||
Co-Chief Executive Offiver | Restricted Stock Units | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Number of shares granted (shares) | 18,852 | ||||||||||
Chief Financial Officer | Restricted Stock Units | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Number of shares granted (shares) | 18,852 | ||||||||||
Chief Financial Officer | Restricted Stock Units | 2021 LTIP | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Number of shares granted (shares) | 204,543 | ||||||||||
Chief Financial Officer | Time-based Units | 2021 LTIP | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Number of shares granted (shares) | 68,181 | ||||||||||
Chief Financial Officer | Performance Shares | 2021 LTIP | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Number of shares granted (shares) | 136,362 | ||||||||||
Chief Financial Officer | Performance Shares | Tranche One | 2021 LTIP | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Number of shares granted (shares) | 45,454 | ||||||||||
Vice President of Operations | Restricted Stock Units | 2021 LTIP | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Number of shares granted (shares) | 85,908 | ||||||||||
Vice President of Operations | Time-based Units | 2021 LTIP | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Number of shares granted (shares) | 28,636 | ||||||||||
Vice President of Operations | Performance Shares | 2021 LTIP | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Number of shares granted (shares) | 57,272 | ||||||||||
Vice President of Operations | Performance Shares | Tranche One | 2021 LTIP | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Number of shares granted (shares) | 19,091 | ||||||||||
Chief Business Development Officer | Restricted Stock Units | 2021 LTIP | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Number of shares granted (shares) | 204,543 | ||||||||||
Chief Business Development Officer | Time-based Units | 2021 LTIP | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Number of shares granted (shares) | 68,181 | ||||||||||
Chief Business Development Officer | Performance Shares | 2021 LTIP | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Number of shares granted (shares) | 136,362 | ||||||||||
Chief Business Development Officer | Performance Shares | Tranche One | 2021 LTIP | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Number of shares granted (shares) | 45,454 | ||||||||||
Vice President Of Production Development | Restricted Stock Units | 2021 LTIP | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Number of shares granted (shares) | 47,973 | ||||||||||
Vice President Of Production Development | Time-based Units | 2021 LTIP | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Number of shares granted (shares) | 15,991 | ||||||||||
Vice President Of Production Development | Performance Shares | 2021 LTIP | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Number of shares granted (shares) | 31,982 | ||||||||||
Vice President Of Production Development | Performance Shares | Tranche One | 2021 LTIP | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Number of shares granted (shares) | 10,661 |
STOCKHOLDERS' EQUITY - Performa
STOCKHOLDERS' EQUITY - Performance Metrics (Details) | May 28, 2021 |
Weight | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance metric percentage, total shareholder return | 33.33% |
Performance metric percentage, relative total shareholder return | 33.33% |
Performance metric percentage, EBITDA | 33.33% |
Target | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance metric percentage, total shareholder return | 135.00% |
Performance metric percentage, relative total shareholder return | 75.00% |
Performance metric percentage, EBITDA | 10.00% |
Above Target | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance metric percentage, total shareholder return | 194.00% |
Performance metric percentage, relative total shareholder return | 50.00% |
Performance metric percentage, EBITDA | 15.00% |
Outstanding | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance metric percentage, total shareholder return | 253.00% |
Performance metric percentage, relative total shareholder return | 25.00% |
Performance metric percentage, EBITDA | 20.00% |
REVENUE - Narrative (Details)
REVENUE - Narrative (Details) | 3 Months Ended |
Mar. 31, 2022 | |
Disaggregation of Revenue [Line Items] | |
Return period | 90 days |
Minimum | |
Disaggregation of Revenue [Line Items] | |
Product warranty term | 90 days |
Maximum | |
Disaggregation of Revenue [Line Items] | |
Product warranty term | 2 years |
REVENUE - Disaggregation of Rev
REVENUE - Disaggregation of Revenue (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Disaggregation of Revenue [Line Items] | ||
Total Revenues | $ 9,503,140 | $ 5,092,349 |
Electronics | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | 3,478,112 | 1,851,799 |
Manufactured | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | 521,128 | 236,810 |
Re-Sell | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | 4,879,183 | 2,568,926 |
Service | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenues | $ 624,717 | $ 434,814 |
BASIC AND DILUTED EARNINGS (L_3
BASIC AND DILUTED EARNINGS (LOSS) PER SHARE (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income (Loss) (Numerator) | ||
Net income (loss) available to common stockholders | $ 627,161 | $ (601,500) |
Stock options & RSUs | 0 | 0 |
Net income (loss) available to common stockholders + assumed conversions | $ 627,161 | $ (601,500) |
Weighted Average Shares (Denominator) | ||
Weighted average basic shares outstanding (in shares) | 47,481,439 | 47,990,101 |
Effect of Dilutive Securities, Stock options & RSUs (in shares) | 1,054,979 | 0 |
Weighted average diluted shares outstanding (in shares) | 48,536,418 | 47,990,101 |
Per-Share Amount | ||
Basic income (loss) per share (in dollars per share) | $ 0.01 | $ (0.01) |
Diluted income (loss) per share (in dollars per share) | $ 0.01 | $ (0.01) |
BASIC AND DILUTED EARNINGS (L_4
BASIC AND DILUTED EARNINGS (LOSS) PER SHARE - Narrative (Details) | 3 Months Ended |
Mar. 31, 2021$ / sharesshares | |
Earnings Per Share [Abstract] | |
Antidilutive securities excluded from computation of earnings per share (in shares) | shares | 1,339,450 |
Weighted average (in dollars per share) | $ / shares | $ 1.15 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Sales | $ 9,503,140 | $ 5,092,349 | |
Profit (Loss) | 627,161 | (601,500) | |
Long-Lived Assets | 11,218,568 | $ 11,250,819 | |
Canada | |||
Segment Reporting Information [Line Items] | |||
Sales | 1,997,251 | 828,445 | |
Profit (Loss) | (352,570) | (320,762) | |
Long-Lived Assets | 5,680,731 | 5,667,225 | |
United States | |||
Segment Reporting Information [Line Items] | |||
Sales | 7,505,889 | 4,263,904 | |
Profit (Loss) | 979,731 | $ (280,738) | |
Long-Lived Assets | $ 5,537,837 | $ 5,583,594 |
SUBSEQUENT EVENTS - Narrative (
SUBSEQUENT EVENTS - Narrative (Details) | Apr. 06, 2022USD ($)shares | Apr. 06, 2022CAD ($)shares | Jun. 16, 2021shares | May 28, 2021agreementshares | Feb. 18, 2021shares | May 02, 2022USD ($)shares | Mar. 31, 2022USD ($) |
Subsequent Event [Line Items] | |||||||
Treasury stock repurchased | $ | $ 622,263 | ||||||
Restricted Stock Units | |||||||
Subsequent Event [Line Items] | |||||||
Number of shares granted (shares) | 189,471 | ||||||
Subsequent Event | |||||||
Subsequent Event [Line Items] | |||||||
Treasury stock repurchased (in shares) | 142,683 | ||||||
Treasury stock repurchased | $ | $ 188,526 | ||||||
2022 EIP | Subsequent Event | |||||||
Subsequent Event [Line Items] | |||||||
Percentage of bonus paid in cash | 50.00% | 50.00% | |||||
Target payout percentage | 200.00% | 200.00% | |||||
2022 LTIP | Subsequent Event | Target | |||||||
Subsequent Event [Line Items] | |||||||
Percentage of award covered by metric | 50.00% | 50.00% | |||||
2022 LTIP | Subsequent Event | Above Target | |||||||
Subsequent Event [Line Items] | |||||||
Percentage of award covered by metric | 75.00% | 75.00% | |||||
2022 LTIP | Subsequent Event | Outstanding | |||||||
Subsequent Event [Line Items] | |||||||
Percentage of award covered by metric | 100.00% | 100.00% | |||||
2022 LTIP | Subsequent Event | Below Target | |||||||
Subsequent Event [Line Items] | |||||||
Percentage of award covered by metric | 0.00% | 0.00% | |||||
2022 LTIP | Subsequent Event | Tranche One | |||||||
Subsequent Event [Line Items] | |||||||
Percentage of award covered by metric | 33.00% | 33.00% | |||||
2022 LTIP | Subsequent Event | Tranche Two | |||||||
Subsequent Event [Line Items] | |||||||
Percentage of award covered by metric | 67.00% | 67.00% | |||||
2021 LTIP | Target | |||||||
Subsequent Event [Line Items] | |||||||
Percentage of award covered by metric | 50.00% | ||||||
2021 LTIP | Above Target | |||||||
Subsequent Event [Line Items] | |||||||
Percentage of award covered by metric | 75.00% | ||||||
2021 LTIP | Outstanding | |||||||
Subsequent Event [Line Items] | |||||||
Percentage of award covered by metric | 100.00% | ||||||
2021 LTIP | Below Target | |||||||
Subsequent Event [Line Items] | |||||||
Percentage of award covered by metric | 0.00% | ||||||
2021 LTIP | Tranche One | |||||||
Subsequent Event [Line Items] | |||||||
Percentage of award covered by metric | 33.00% | ||||||
2021 LTIP | Tranche Two | |||||||
Subsequent Event [Line Items] | |||||||
Percentage of award covered by metric | 67.00% | ||||||
2021 LTIP | Restricted Stock Units | |||||||
Subsequent Event [Line Items] | |||||||
Number of restricted stock unit award agreements | agreement | 2 | ||||||
Chief Financial Officer | Restricted Stock Units | |||||||
Subsequent Event [Line Items] | |||||||
Number of shares granted (shares) | 18,852 | ||||||
Chief Financial Officer | 2022 EIP | Subsequent Event | |||||||
Subsequent Event [Line Items] | |||||||
Payments to employees | $ | $ 198,000 | ||||||
Chief Financial Officer | 2022 LTIP | Subsequent Event | Restricted Stock Units | |||||||
Subsequent Event [Line Items] | |||||||
Number of shares granted (shares) | 230,232 | 230,232 | |||||
Chief Financial Officer | 2022 LTIP | Subsequent Event | Time-based Units | |||||||
Subsequent Event [Line Items] | |||||||
Number of shares granted (shares) | 76,744 | 76,744 | |||||
Chief Financial Officer | 2022 LTIP | Subsequent Event | Performance Shares | |||||||
Subsequent Event [Line Items] | |||||||
Number of shares granted (shares) | 153,488 | 153,488 | |||||
Chief Financial Officer | 2022 LTIP | Subsequent Event | Performance Shares | Tranche One | |||||||
Subsequent Event [Line Items] | |||||||
Number of shares granted (shares) | 51,163 | 51,163 | |||||
Chief Financial Officer | 2021 LTIP | Restricted Stock Units | |||||||
Subsequent Event [Line Items] | |||||||
Number of shares granted (shares) | 204,543 | ||||||
Chief Financial Officer | 2021 LTIP | Time-based Units | |||||||
Subsequent Event [Line Items] | |||||||
Number of shares granted (shares) | 68,181 | ||||||
Chief Financial Officer | 2021 LTIP | Performance Shares | |||||||
Subsequent Event [Line Items] | |||||||
Number of shares granted (shares) | 136,362 | ||||||
Chief Financial Officer | 2021 LTIP | Performance Shares | Tranche One | |||||||
Subsequent Event [Line Items] | |||||||
Number of shares granted (shares) | 45,454 | ||||||
Chief Business Development Officer | 2022 EIP | Subsequent Event | |||||||
Subsequent Event [Line Items] | |||||||
Payments to employees | $ | $ 198,000 | ||||||
Chief Business Development Officer | 2022 LTIP | Subsequent Event | Restricted Stock Units | |||||||
Subsequent Event [Line Items] | |||||||
Number of shares granted (shares) | 230,232 | 230,232 | |||||
Chief Business Development Officer | 2022 LTIP | Subsequent Event | Time-based Units | |||||||
Subsequent Event [Line Items] | |||||||
Number of shares granted (shares) | 76,744 | 76,744 | |||||
Chief Business Development Officer | 2022 LTIP | Subsequent Event | Performance Shares | |||||||
Subsequent Event [Line Items] | |||||||
Number of shares granted (shares) | 153,488 | 153,488 | |||||
Chief Business Development Officer | 2022 LTIP | Subsequent Event | Performance Shares | Tranche One | |||||||
Subsequent Event [Line Items] | |||||||
Number of shares granted (shares) | 51,163 | 51,163 | |||||
Chief Business Development Officer | 2021 LTIP | Restricted Stock Units | |||||||
Subsequent Event [Line Items] | |||||||
Number of shares granted (shares) | 204,543 | ||||||
Chief Business Development Officer | 2021 LTIP | Time-based Units | |||||||
Subsequent Event [Line Items] | |||||||
Number of shares granted (shares) | 68,181 | ||||||
Chief Business Development Officer | 2021 LTIP | Performance Shares | |||||||
Subsequent Event [Line Items] | |||||||
Number of shares granted (shares) | 136,362 | ||||||
Chief Business Development Officer | 2021 LTIP | Performance Shares | Tranche One | |||||||
Subsequent Event [Line Items] | |||||||
Number of shares granted (shares) | 45,454 | ||||||
Vice President Of Production Development | 2022 EIP | Subsequent Event | |||||||
Subsequent Event [Line Items] | |||||||
Payments to employees | $ | $ 64,750 | ||||||
Vice President Of Production Development | 2022 LTIP | Subsequent Event | Restricted Stock Units | |||||||
Subsequent Event [Line Items] | |||||||
Number of shares granted (shares) | 43,023 | 43,023 | |||||
Vice President Of Production Development | 2022 LTIP | Subsequent Event | Time-based Units | |||||||
Subsequent Event [Line Items] | |||||||
Number of shares granted (shares) | 14,341 | 14,341 | |||||
Vice President Of Production Development | 2022 LTIP | Subsequent Event | Performance Shares | |||||||
Subsequent Event [Line Items] | |||||||
Number of shares granted (shares) | 28,682 | 28,682 | |||||
Vice President Of Production Development | 2022 LTIP | Subsequent Event | Performance Shares | Tranche One | |||||||
Subsequent Event [Line Items] | |||||||
Number of shares granted (shares) | 9,561 | 9,561 | |||||
Vice President Of Production Development | 2021 LTIP | Restricted Stock Units | |||||||
Subsequent Event [Line Items] | |||||||
Number of shares granted (shares) | 47,973 | ||||||
Vice President Of Production Development | 2021 LTIP | Time-based Units | |||||||
Subsequent Event [Line Items] | |||||||
Number of shares granted (shares) | 15,991 | ||||||
Vice President Of Production Development | 2021 LTIP | Performance Shares | |||||||
Subsequent Event [Line Items] | |||||||
Number of shares granted (shares) | 31,982 | ||||||
Vice President Of Production Development | 2021 LTIP | Performance Shares | Tranche One | |||||||
Subsequent Event [Line Items] | |||||||
Number of shares granted (shares) | 10,661 |
SUBSEQUENT EVENTS - Performance
SUBSEQUENT EVENTS - Performance Metrics (Details) - shares | Apr. 06, 2022 | May 28, 2021 |
Target | ||
Subsequent Event [Line Items] | ||
Performance metric percentage, total shareholder return | 135.00% | |
Performance metric percentage, relative total shareholder return | 75.00% | |
Performance metric percentage, EBITDA | 10.00% | |
Above Target | ||
Subsequent Event [Line Items] | ||
Performance metric percentage, total shareholder return | 194.00% | |
Performance metric percentage, relative total shareholder return | 50.00% | |
Performance metric percentage, EBITDA | 15.00% | |
Outstanding | ||
Subsequent Event [Line Items] | ||
Performance metric percentage, total shareholder return | 253.00% | |
Performance metric percentage, relative total shareholder return | 25.00% | |
Performance metric percentage, EBITDA | 20.00% | |
Weight | ||
Subsequent Event [Line Items] | ||
Performance metric percentage, total shareholder return | 33.33% | |
Performance metric percentage, relative total shareholder return | 33.33% | |
Performance metric percentage, EBITDA | 33.33% | |
Subsequent Event | Target | ||
Subsequent Event [Line Items] | ||
Performance metric percentage, total shareholder return | 8870.00% | |
Performance metric percentage, relative total shareholder return | 75.00% | |
Performance metric percentage, EBITDA | 1000.00% | |
Subsequent Event | Above Target | ||
Subsequent Event [Line Items] | ||
Performance metric percentage, total shareholder return | 13580.00% | |
Performance metric percentage, relative total shareholder return | 50.00% | |
Performance metric percentage, EBITDA | 1500.00% | |
Subsequent Event | Outstanding | ||
Subsequent Event [Line Items] | ||
Performance metric percentage, total shareholder return | 18300.00% | |
Performance metric percentage, relative total shareholder return | 25.00% | |
Performance metric percentage, EBITDA | 2000.00% | |
Subsequent Event | Weight | ||
Subsequent Event [Line Items] | ||
Performance metric percentage, total shareholder return | 33.33% | |
Performance metric percentage, relative total shareholder return | 33.33% | |
Performance metric percentage, EBITDA | 33.33% | |
Chief Financial Officer | Performance Shares | 2022 LTIP | Subsequent Event | ||
Subsequent Event [Line Items] | ||
Number of shares granted (shares) | 153,488 | |
Chief Business Development Officer | Performance Shares | 2022 LTIP | Subsequent Event | ||
Subsequent Event [Line Items] | ||
Number of shares granted (shares) | 153,488 | |
Vice President Of Production Development | Performance Shares | 2022 LTIP | Subsequent Event | ||
Subsequent Event [Line Items] | ||
Number of shares granted (shares) | 28,682 |