Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Mar. 03, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Entity Registrant Name | ACME UNITED CORP | ||
Entity Central Index Key | 0000002098 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2023 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 3,645,200 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2023 | ||
Entity Public Float | $ 77,642,161 | ||
Trading Symbol | ACU | ||
Entity Emerging Growth Company | false | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Small Business | true | ||
Entity Shell Company | false | ||
Entity File Number | 01-07698 | ||
Entity Tax Identification Number | 06-0236700 | ||
Entity Address, Address Line One | 1 Waterview Drive | ||
Entity Address, City or Town | Shelton | ||
Entity Address, State or Province | CT | ||
Entity Address, Postal Zip Code | 06484 | ||
City Area Code | 203 | ||
Local Phone Number | 254-6060 | ||
Entity Interactive Data Current | Yes | ||
Title of 12(b) Security | $2.50 par value Common Stock | ||
Security Exchange Name | NYSEAMER | ||
Entity Incorporation, State or Country Code | CT | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
ICFR Auditor Attestation Flag | true | ||
Auditor Name | Marcum LLP | ||
Auditor Location | Boston, Massachusetts | ||
Auditor Firm Id | 688 | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE (1) Certain portions of the Company’s Proxy Statement for the Annual Meeting scheduled for April 22, 2024 are incorporated into the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023 , in Part III. |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income Statement [Abstract] | ||
Net sales | $ 191,500,947 | $ 193,962,357 |
Cost of goods sold | 119,290,712 | 130,403,572 |
Gross profit | 72,210,235 | 63,558,785 |
Selling, general and administrative expenses | 59,021,618 | 57,285,483 |
Operating income | 13,188,617 | 6,273,302 |
Non-operating items: | ||
Interest expense | (3,096,481) | (2,396,431) |
Interest income | 119,317 | 31,970 |
Interest expense, net | (2,977,164) | (2,364,461) |
Gain on sale of business | 12,564,153 | |
Other expense | (41,002) | (246,396) |
Total other income (expense), net | 12,523,151 | (246,396) |
Income before income tax expense | 22,734,604 | 3,662,445 |
Income tax expense | 4,941,444 | 627,679 |
Net income | $ 17,793,160 | $ 3,034,766 |
Basic earnings per share | $ 4.98 | $ 0.86 |
Diluted earnings per share | $ 4.86 | $ 0.82 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Condensed Consolidated Statements Of Comprehensive Loss Income [Abstract] | ||
Net income | $ 17,793,160 | $ 3,034,766 |
Other comprehensive income (loss) | ||
Foreign currency translation | 382,312 | (707,251) |
Comprehensive income | $ 18,175,472 | $ 2,327,515 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 4,795,953 | $ 6,100,409 |
Accounts receivable, less allowance | 26,234,421 | 32,603,463 |
Inventories | 55,469,992 | 63,325,206 |
Prepaid expenses and other current assets | 4,773,464 | 2,820,935 |
Restricted cash | 750,000 | 750,000 |
Total current assets | 92,023,830 | 105,600,013 |
Property, plant and equipment: | ||
Land | 2,387,093 | 1,979,474 |
Buildings and building improvements | 17,501,583 | 16,614,149 |
Machinery and equipment | 34,704,536 | 31,491,637 |
Total property, plant and equipment | 54,593,212 | 50,085,260 |
Less: accumulated depreciation | 26,568,275 | 23,669,724 |
Net property, plant and equipment | 28,024,937 | 26,415,536 |
Intangible assets, less accumulated amortization | 19,001,448 | 20,790,535 |
Goodwill | 8,188,829 | 8,188,829 |
Operating lease right-of-use asset, net | 2,002,272 | 2,632,191 |
Other assets - restricted cash | 750,000 | |
Total assets | 149,241,316 | 164,377,104 |
Current liabilities: | ||
Accounts payable | 12,101,735 | 10,514,288 |
Operating lease liability - current portion | 1,098,942 | 1,130,244 |
Current portion of mortgage payable | 419,309 | 404,588 |
Other accrued liabilities | 12,391,998 | 10,077,542 |
Total current liabilities | 26,011,984 | 22,126,662 |
Long-term debt | 13,104,691 | 49,915,649 |
Mortgage payable, net of current portion | 10,283,988 | 10,693,612 |
Operating lease liability - non-current portion | 1,026,351 | 1,683,323 |
Deferred income taxes | 899,344 | 305,285 |
Other non-current liabilities | 16,274 | 622,441 |
Total liabilities | 51,342,632 | 85,346,972 |
STOCKHOLDERS' EQUITY | ||
Common stock, par value $2.50: - 5,190,072 shares issued and 3,645,200 shares outstanding in 2023; 5,083,051 shares issued and 3,538,179 shares outstanding in 2022 | 12,966,178 | 12,698,624 |
Treasury stock, at cost, 1,544,872 shares in 2023 and 2022 | (15,995,622) | (15,995,622) |
Additional paid-in capital | 15,917,781 | 13,447,797 |
Accumulated other comprehensive loss | (1,705,587) | (2,087,899) |
Retained earnings | 86,715,934 | 70,967,232 |
Total stockholders' equity | 97,898,684 | 79,030,132 |
Total liabilities and stockholders' equity | $ 149,241,316 | $ 164,377,104 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 |
STOCKHOLDERS' EQUITY | ||
Common stock, par value | $ 2.5 | $ 2.5 |
Common stock, shares issued | 5,190,072 | 5,083,051 |
Common stock, shares, Outstanding | 3,645,200 | 3,538,179 |
Treasury stock, shares | 1,544,872 | 1,544,872 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) | Total | Common Stock | Treasury Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Retained Earnings |
Beginning Balance at Dec. 31, 2021 | $ 77,081,961 | $ 12,654,787 | $ (15,995,622) | $ 11,930,067 | $ (1,380,648) | $ 69,873,377 |
Beginning Balance, shares at Dec. 31, 2021 | 3,520,646 | |||||
Net income | 3,034,766 | 3,034,766 | ||||
Other comprehensive income (loss) | (707,251) | (707,251) | ||||
Stock compensation expense | 1,803,302 | 1,803,302 | ||||
Distribution to shareholders | (1,940,911) | (1,940,911) | ||||
Issuance of common stock | 84,715 | $ 18,669 | 66,046 | |||
Issuance of common stock,shares | 7,466 | |||||
Cash settlement of stock options | $ (108,155) | (108,155) | ||||
Purchase of treasury stock(shares) | 0 | |||||
Net share settlement of stock options | $ (218,295) | $ 25,168 | (243,463) | |||
Net share settlement of stock options, (shares) | 10,067 | |||||
Ending Balance at Dec. 31, 2022 | $ 79,030,132 | $ 12,698,624 | (15,995,622) | 13,447,797 | (2,087,899) | 70,967,232 |
Ending Balance, shares at Dec. 31, 2022 | 3,538,179 | 3,538,179 | ||||
Net income | $ 17,793,160 | 17,793,160 | ||||
Other comprehensive income (loss) | (382,312) | (382,312) | ||||
Stock compensation expense | 1,940,443 | 1,940,443 | ||||
Distribution to shareholders | (2,044,458) | (2,044,458) | ||||
Issuance of common stock | 1,452,520 | $ 216,914 | 1,235,606 | |||
Issuance of common stock,shares | 86,765 | |||||
Cash settlement of stock options | $ (292,153) | (292,153) | ||||
Purchase of treasury stock(shares) | 0 | |||||
Net share settlement of stock options | $ (363,273) | $ 50,640 | (413,913) | |||
Net share settlement of stock options, (shares) | 20,256 | |||||
Ending Balance at Dec. 31, 2023 | $ 97,898,684 | $ 12,966,178 | $ (15,995,622) | $ 15,917,781 | $ (1,705,587) | $ 86,715,934 |
Ending Balance, shares at Dec. 31, 2023 | 3,645,200 | 3,645,200 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Operating activities: | ||
Net income | $ 17,793,160 | $ 3,034,766 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation | 2,956,513 | 2,762,276 |
Amortization of intangible assets | 2,111,078 | 1,815,508 |
Stock compensation expense | 1,940,443 | 1,803,302 |
Deferred income taxes | 594,059 | (293,995) |
Non-cash lease adjustment | (57,648) | (42,570) |
Provision for excess and obsolete inventory | 171,476 | 189,874 |
Provision for doubtful accounts | (129,219) | 199,996 |
Amortization of deferred financing costs | 39,405 | 30,151 |
Change in earnout liability | 170,000 | |
Gain on sale of business, net of tax of $2,907,000 | (9,644,000) | |
Changes in operating assets and liabilities | ||
Accounts receivable | 6,329,398 | 1,839,243 |
Inventories | 3,648,679 | (9,606,835) |
Prepaid expenses and other current assets | (950,338) | (173,341) |
Accounts payable | 1,552,352 | 1,914,813 |
Other accrued liabilities | 2,374,137 | (581,449) |
Total adjustments | 11,106,335 | (143,027) |
Net cash provided by operating activities | 28,899,495 | 2,891,739 |
Investing activities: | ||
Purchase of property, plant and equipment | (4,673,717) | (4,304,264) |
Purchase of intellectual property | (301,736) | (300,000) |
Proceeds from sale of business | 13,152,613 | |
Acquisition of Safety Made | (750,000) | (9,622,391) |
Net cash provided by (used in) investing activities | 7,427,160 | (14,226,655) |
Financing activities: | ||
Net (repayments) borrowings of long-term debt | (36,835,642) | 16,848,326 |
Repayments on mortgage | (409,624) | (401,410) |
Distributions to stockholders | (1,993,049) | (1,903,346) |
Cash settlement of stock options | (292,153) | (108,155) |
Tax paid on net share settlement of stock options | (363,272) | (243,463) |
Issuance of common stock | 1,452,520 | 84,715 |
Net cash (used in) provided by financing activities | (38,441,220) | 14,276,667 |
Effect of exchange rate changes | 60,110 | (184,691) |
Net (decrease) increase in cash and cash equivalents and restricted cash | (2,054,455) | 2,757,060 |
Cash, cash equivalents and restricted cash at beginning of year | 7,600,409 | 4,843,349 |
Cash, cash equivalents and restricted cash at end of year | 5,545,954 | 7,600,409 |
Supplemental cash flow information: | ||
Cash paid for income taxes | 5,771,876 | 978,378 |
Cash paid for interest expense | 3,179,184 | 2,124,144 |
Non-cash investing activities | ||
Safety Made acquisition contingent consideration | 750,000 | 1,330,000 |
Non-cash financing activities | ||
Dividends accrued not paid | $ 546,710 | $ 495,406 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Statement of Cash Flows [Abstract] | ||
Payment of taxes on gain on sale of business | $ 2,907,000 | $ 2,907,000 |
Operations
Operations | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Operations | 1. Operations The operations of Acme United Corporation (the “Company”) consist of three reportable segments. The operations of the Company are structured and evaluated based on geographic location. The three reportable segments operate in the United States (including Asian operations), Canada and Europe. Principal products across all segments are first aid kits and medical products, scissors, shears, knives, and sharpeners, which are sold primarily to wholesale, contract and retail distributors, office supply super stores, mass market retailers, industrial and medical distributors, school supply distributors, drug store retailers, sporting goods stores, hardware chains and wholesale florists. |
Accounting Policies
Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Accounting Policies | 2. Accounting Policies Estimates – The preparation of financial statements in conformity with generally accepted accounting principles in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The most sensitive and significant accounting estimates relate to customer rebates, valuation allowances for deferred income tax assets, obsolete and slow-moving inventories, potentially uncollectible accounts receivable, intangibles and stock-based compensation. Actual results could differ from those estimates. Principles of Consolidation – The consolidated financial statements include the accounts of the Company and its subsidiaries, all of which are wholly owned by the Company. All significant intercompany accounts and transactions are eliminated in consolidation. Translation of Foreign Currency – For foreign operations whose functional currencies are not U.S. dollars, assets and liabilities are translated at rates in effect at the end of the year; revenues and expenses are translated at average rates in effect during the year. Resulting translation adjustments are made directly to accumulated other comprehensive income. Foreign currency transaction gains and losses are recognized in operating results. Included in other income (expense), net were foreign currency transaction losses of $ 39,410 and $ 288,191 in 2023 and 2022 , respectively. Cash Equivalents – Investments with an original maturity of three months or less, as well as time deposits and certificates of deposit that are readily redeemable at the date of purchase, are considered cash equivalents. Accounts Receivable – The Company provides an allowance for doubtful accounts based upon a review of outstanding accounts receivable, historical collection information and existing economic conditions. The allowance for doubtful accounts represents estimated uncollectible accounts receivables associated with potential customer defaults on contractual obligations, usually due to potential insolvencies. The allowance includes amounts for certain customers where a risk of default has been specifically identified. In addition, the allowance includes a provision for customer defaults based on historical experience. The Company actively monitors its accounts receivable balances, and its historical experience of annual accounts receivable write-offs has been negligible. Accounts receivable are shown less an allowance for doubtful accounts of $ 567,015 at December 31, 2023 and $ 1,060,812 at December 31, 2022 . As of January 1, 2022, accounts receivable, less an allowance for doubtful accounts was $ 34,220,635 . Inventories – Inventories are stated at the lower of cost, or net realizable value, determined by the first-in, first-out method for our cutting products. Cost for our first aid and medical products is computed using standard cost, which approximates actual cost on a first in, first out basis. Property, Plant and Equipment, and Depreciation – Property, plant and equipment are recorded at cost. Depreciation is computed by the straight-line method over the estimated useful lives of the assets. The range of estimated useful lives of these assets are as follows: buildings and building improvements useful lives range from 10 to 39 years ; machinery and equipment useful lives range from 3 to 10 years . The Company tests its property, plant and equipment whenever events or changes in circumstances (triggering event) indicate that its carrying amount may not be recoverable. During 2023 and 2022, there were no triggering events that would indicate its carrying amount may not be recoverable. As a result, there was no impairment of the carrying amounts of such assets and no reduction in their estimated useful lives. Intangible Assets and Goodwill – Intangible assets with finite useful lives are recorded at cost upon acquisition and amortized over the term of the related contract, if any, or useful life, as applicable. Intangible assets held by the Company with finite useful lives include patents and trademarks. Patents and trademarks are amortized over their estimated useful lives. The weighted average amortization period for intangible assets at December 31, 2023 was 8 years. The Company periodically reviews the values recorded for finite lived intangible assets whenever events or changes in circumstances (triggering event) indicate that its carrying amount may not be recoverable. During 2023 and 2022, there were no triggering events that would indicate its carrying amount may not be recoverable. As a result, there was no impairment of the carrying amounts of such assets and no reduction in their estimated useful lives. The Company annually reviews goodwill to assess recoverability from future operations whenever events or changes in circumstances indicate that its carrying amounts may not be recoverable. At December 31, 2023 and 2022 , the Company assessed the recoverability of its intangible assets and goodwill and believed that there were no events or circumstances present that would require a test of recoverability on those assets. As a result, there was no impairment of the carrying amounts of such assets and no reduction in their estimated useful lives. Contingent Consideration - As part of the acquisition of Safety Made, $ 1.5 million of the purchase price was placed in escrow to be paid to the sellers, contingent on the acquired business meeting certain revenue milestones over a two-year period, commencing on the date of the acquisition. The fair value of the contingent liability at each reporting date is based on certain estimates and judgements made by management. Those estimates are made from the most relevant data available at that time and include historical data and future projections. On June 1, 2023, the Escrow Agent disbursed to the Seller a payment of $ 750,000 , as determined by the calculation outlined in the purchase agreement. At December 31, 2023, the fair value of the remaining contingent consideration was $ 750,000 . Deferred Income Taxes – Deferred income taxes are provided for the differences between the financial statement and tax bases of assets and liabilities, and on operating loss carryovers, using tax rates in effect in years in which the differences are expected to reverse. Leases – The Company determines if an arrangement is an operating lease at inception. Leases with an initial term of 12 months or less are not recorded on the balance sheet. All other leases are recorded on the balance sheet with right-of-use (“ROU”) assets representing the right to use the underlying asset for the lease term and lease liabilities representing the obligation to make lease payments arising from the lease. Lessees and lessors may elect to apply a package of practical expedients permitting entities not to reassess: (i) whether any expired or existing contracts are or contain leases; (ii) lease classification for any expired or existing leases; and (iii) whether initial direct costs for any expired or existing leases qualify for capitalization under the amended guidance. These practical expedients must be elected as a package and consistently applied. The Company elected to apply the package of practical expedients upon adoption. ROU assets and lease liabilities are recognized at the commencement date of the lease based on the present value of lease payments over the lease term and include options to extend or terminate the lease when they are reasonably certain to be exercised. As most of the Company’s leases do not provide an implicit rate, the present value of lease payments is determined primarily using our incremental borrowing rate based on the information available at the lease commencement date. The incremental borrowing rate is the rate of interest that we would have to pay to borrow on a collateralized basis over a similar term on an amount equal to the lease payments in a similar economic environment. Lease arrangements with lease and non-lease components are generally accounted for as a single lease component. The Company's operating lease expense is recognized on a straight-line basis over the lease term. Revenue Recognition – The Company's revenues result from the sale of goods or services and reflect the consideration to which the Company expects to be entitled. The Company records revenue based on a five-step model in accordance with Accounting Standards Codification ("ASC") 606, Revenue from Contracts with Customers ("ASC 606"). For its contracts with customers, the Company identifies the performance obligations (goods or services), determines the transaction price, allocates the contract transaction price to the performance obligations, and recognizes the revenue when (or as) the performance obligation is transferred to the customer. A good or service is transferred when (or as) the customer obtains control of that good or service. Depending on the contractual terms of each customer, revenue is recognized either at the time of shipment or upon delivery. When revenue is recorded, estimates of returns are made and recorded as a reduction of revenue. Customer rebates and incentives are earned based on promotional programs in place, volume of purchases or other factors are also estimated at the time of revenue recognition and recorded as a reduction of that revenue. Refer to Note 9 – Revenue from Contracts with Customers, for a more detailed discussion. Shipping Costs – The costs of shipping product to the Company’s customers ($ 8,638,865 in 2023 and $ 11,328,276 in 2022 ) are included in selling, general and administrative expenses. Advertising Costs – The Company expenses the production costs of advertising the first time that the related advertising takes place. Advertising costs ($ 1,817,783 in 2023 and $ 1,563,430 in 2022 ) are included in selling, general and administrative expenses. Concentration – The Company performs ongoing credit evaluations of its customers and generally does not require collateral for the extension of credit. Allowances for credit losses are provided and have been within management's expectations. The Company had two customers in 2023 and 2022 , that individually exceeded 10% of consolidated net sales. Net sales to these customers were approximately 14 % and 12 % of consolidated net sales in 2023 and 15 % and 10 % in 2022 . Recently Issued Accounting Standards In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” (“ASU 2023-09”). ASU 2023-09 requires additional categories of information about federal, state and foreign income taxes to be included in effective tax rate reconciliation disclosure. Additionally, the newly added categories also apply to the income taxes paid disclosure. Implementation of said additions are subject to quantitative thresholds. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024. The Company is currently evaluating the impact of adopting ASU 2023-09. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories | 3. Inventories Inventories consisted of: December 31, 2023 2022 Finished goods $ 39,315,594 $ 45,371,042 Work in process 208,212 408,346 Materials and supplies 15,946,186 17,545,818 Inventories: $ 55,469,992 $ 63,325,206 Inventories are stated net of valuation allowances for slow moving and obsolete inventory of $ 1,338,211 as of December 31, 2023 and $ 1,720,350 as of December 31, 2022 . |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Goodwill | 4. Intangible Assets and Goodwill The Company’s intangible assets and goodwill consisted of: December 31, 2023 2022 Tradename $ 10,007,698 $ 10,007,698 Customer List 18,824,198 18,502,207 Non-Compete 1,247,536 1,247,536 Slice License Agreement 379,921 379,921 Patents 2,271,980 2,271,980 Subtotal 32,731,333 32,409,342 Less: Accumulated Amortization 13,729,885 11,618,807 Intangible Assets $ 19,001,448 $ 20,790,535 Goodwill $ 8,188,829 $ 8,188,829 Total: $ 27,190,277 $ 28,979,364 Amortization expense for intangible assets for the years ended December 31, 2023 and 2022 were $ 2,111,078 and $ 1,815,508 , respectively. The estimated aggregate amortization expense for each of the next five years, calculated on a similar basis, is as follows: 2024 - $ 2,270,276 ; 2025 - $ 1,981,863 ; 2026 - $ 1,689,565 ; 2027 - $ 1,361,196 ; and 2028 - $ 1,244,529 . |
Other Accrued Liabilities
Other Accrued Liabilities | 12 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
Other Accrued Liabilities | 5. Other Accrued Liabilities The Company’s other current and non-current accrued liabilities consisted of: December 31, 2023 2022 Customer Rebates $ 5,720,898 $ 5,533,802 Contingent Liability - Safety Made 750,000 1,330,000 Accrued Compensation 2,585,124 791,231 Dividend Payable 546,710 495,406 Income Taxes Payable 362,741 533,746 Other 2,442,799 2,015,798 Total: $ 12,408,272 $ 10,699,983 |
Profit Sharing
Profit Sharing | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Profit Sharing | 6. Profit Sharing The Company has a qualified 401k plan covering substantially all of its United States employees. Annual Company contributions to this plan are determined by the Company’s Compensation Committee. For the years ended December 31, 2023 and 2022, the Company contributed 50 % of employee’s contributions, up to the first 6 % contributed by each employee. Total contribution expense under this 401k plan was $ 428,047 in 2023 and $ 426,594 in 2022. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 7. Income Taxes The amounts of income tax expense reflected in operations is as follows: 2023 2022 Current: Federal $ 3,405,403 $ 65,263 State 397,174 192,215 Foreign 544,251 664,766 Total: $ 4,346,828 $ 922,244 Deferred: Federal $ 554,763 $ ( 238,408 ) State 39,853 ( 56,157 ) Total: 594,616 ( 294,565 ) Total Income Tax Expense: $ 4,941,444 $ 627,679 A summary of United States and foreign income before income taxes follows: 2023 2022 United States $ 18,984,939 $ ( 142,095 ) Foreign 3,749,665 3,804,540 Total: $ 22,734,604 $ 3,662,445 As discussed in Note 10 below, for segment reporting, direct import sales are included in the United States segment. However, the revenues are earned by our Hong Kong subsidiary and related income taxes are paid in Hong Kong whose rate approximates 16.5 %. As such, income of the Asian subsidiary is included in the foreign income before taxes. The following schedule reconciles the amounts of income taxes computed at the United States statutory rates to the actual amounts reported in operations: 2023 2022 Federal income taxes at 21% statutory rate $ 4,774,267 $ 716,122 State and local taxes, net of federal income tax effect 612,818 120,922 Stock options ( 385,601 ) ( 128,169 ) Permanent items 183,139 — Foreign tax rate difference ( 243,179 ) ( 81,196 ) Provision for income taxes: $ 4,941,444 $ 627,679 The following summarizes deferred income tax assets and liabilities: 2023 2022 Deferred income tax liabilities: Property, plant and equipment $ 2,328,345 $ 2,004,200 Intangible assets 1,336,996 1,278,478 Other 609,817 251,655 Total deferred tax liabilities 4,275,158 3,534,333 Deferred income tax assets: Net operating loss carryover 930,000 1,170,000 Stock compensation 1,964,332 1,687,357 Asset valuations 852,308 1,109,954 Other 559,174 431,737 Total deferred tax assets 4,305,814 4,399,048 Less: valuation allowance ( 930,000 ) ( 1,170,000 ) Total deferred tax assets, net 3,375,814 3,229,048 Net deferred income tax liability: $ 899,344 $ 305,285 The Company files income tax returns in the U.S. federal jurisdiction, and various state and foreign jurisdictions. The Company is no longer subject to U.S. federal examination for years before 2020, state and local examinations for year before 2019 and foreign examinations before 2020. The Company evaluated its tax positions for year which remain subject to examination by major tax jurisdictions, in accordance with the requirements of ASC 740 and as a result, concluded no adjustment was necessary. The Company’s evaluation of uncertain tax positions was performed for the tax years ended December 31, 2020 and forward, the tax years which remain subject to examination by major tax jurisdictions as of December 31, 2023. Due to the uncertain nature of the realization of the Company's deferred income tax assets based on past performance of its German subsidiary, the Company has recorded a valuation allowance for the amount of deferred income tax assets which are not expected to be realized. This valuation allowance, all of which is related to deferred tax assets resulting from net operating losses of the Company’s German subsidiary of approximately $ .9 million, is subject to periodic review, and, if the allowance is reduced, the tax benefit will be recorded in future operations as a reduction of the Company's tax expense. |
Long-Term Debt and Shareholders
Long-Term Debt and Shareholders' Equity | 12 Months Ended |
Dec. 31, 2023 | |
Debt [Abstract] | |
Long-Term Debt and Shareholders' Equity | 8. Long-Term Debt and Shareholders’ Equity Long-term debt consists of (i) borrowings under the Company’s revolving loan agreement with HSBC Bank, N.A.(“HSBC”) and (ii) amounts outstanding under the fixed rate mortgage on the Company’s manufacturing and distribution facilities in Rocky Mount, NC and Vancouver, WA. The revolving loan agreement provides for borrowings of up to $ 65 million at an interest rate of Secured Overnight Financing Rate (“SOFR”) plus 1.75 % ; interest is payable monthly. The credit facility has an expiration date of May 31, 2026 . The Company must pay a facility fee, payable quarterly, in an amount equal to one eighth of one percent ( .125 %) per annum of the average daily unused portion of the revolving credit line. The facility is intended to provide liquidity for growth, acquisitions, dividends, share repurchases, and other operating activities. Under the revolving loan agreement, the Company is required to maintain specific amounts of funded debt to EBITDA, a fixed charge coverage ratio and must have annual net income greater than $0, measured as of the end of each fiscal year . On November 8, 2022, the revolving loan agreement was amended to increase the ratio of funded debt to EBITDA. The increase was in effect during the four quarters commencing in the third quarter of 2022 and ending with the three months ended June 30, 2023. The increase for those four quarters ranged from a low of 4.75 to 1 to a high of 5.75 to 1. The amendment also modified the interest rate from SOFR +1.75% to range from SOFR +1.60% up to a high of SOFR + 2.35% on a basis that varies quarterly with the funded debt to EBITDA ratio. As of December 31, 2023, the Company was in compliance with the covenants under the revolving loan agreement as then in effect. As of December 31, 2023 , $ 13,164,358 , excluding deferred financing cost of $ 59,667 , was outstanding and $ 51,835,642 was available for borrowing under the Company’s revolving loan agreement. The Company’s manufacturing and distribution facilities in Rocky Mount, NC and Vancouver, WA were financed by a fixed rate mortgage with HSBC Bank, N.A. at a fixed interest rate of 3.8%. The Company entered into the agreement on December 1, 2021. Commencing on January 1, 2022, payments of principal and interest are due monthly, with all amounts outstanding due on maturity on December 1, 2031 . Long-term debt associated with the mortgage consisted of the following at December 31, 2023 and 2022: December 31, 2023 December 31, 2022 Mortgage payable - HSBC Bank N.A. $ 10,823,033 $ 11,232,990 Less debt issuance costs ( 119,736 ) ( 134,790 ) 10,703,297 11,098,200 Less current maturities 419,309 404,588 Long-term mortgage payable less current maturities $ 10,283,988 $ 10,693,612 Minimum annual mortgage payments are due as follows: 2024 - $ 419,309 ; 2025 - $ 436,946 ; 2026 - $ 454,112 ; 2027 - $ 471,949 ; 2028 - $ 489,510 ; and thereafter - $ 8,439,472 On November 14, 2019, the Company announced a Common Stock repurchase program of up to a total of 200,000 shares. The program does not have an expiration date. During the years ended December 31, 2023 and 2022, the Company did no t repurchase any shares of its Common Stock. As of December 31, 2023 , a total of 160,365 shares may be purchased in the future under the repurchase program. The carrying value of the Company’s bank debt is a reasonable estimate of fair value because of the nature of its payment terms and maturity. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | 9. Revenue from Contracts with Customers Nature of Goods and Services The Company recognizes revenue from the sales of a broad line of products that are grouped into two main categories: (i) first aid and medical; and (ii) cutting, sharpening and measuring. The first aid and medical category includes first aid kits and refills and a variety of safety products. The cutting and sharpening category includes scissors, knives, paper trimmers, pencil sharpeners and other sharpening tools. Revenue recognition is evaluated through the following five steps: (i) identification of the contract or contracts with a customer; (ii) identification of the performance obligations in the contract; (iii) determination of the transaction price; (iv) allocation of the transaction price in the contract; and (v) recognition of revenue when or as a performance obligation is satisfied. When Performance Obligations Are Satisfied A performance obligation is a promise in a contract to transfer a distinct good or service to the customer. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. Revenue is generated by the sale of the Company’s products to its customers. Sales contracts (purchase orders) generally have a single performance obligation that is satisfied at a point in time, with shipment or delivery, depending on the terms of the underlying contract. Revenue is measured based on the consideration specified in the contract. The amount of consideration we receive and revenue we recognize is impacted by incentives ("customer rebates"), including sales rebates, which are generally tied to sales volume levels, in-store promotional allowances, shared media and customer catalogue allowances and other cooperative advertising arrangements; freight allowance programs offered to our customers; and allowance for returns and discounts. The Company generally recognizes customer rebate costs as a deduction to gross sales at the time that the associated revenue is recognized. Significant Payment Terms Payment terms for each customer are dependent on the agreed upon contractual repayment terms. The repayment terms are typically between 30 and 90 days, but they vary dependent on the size of the customer and its risk profile to the Company. Some customers receive discounts for early payment. Product Returns The Company accepts product returns in the normal course of business. The Company estimates reserves for returns and the related refunds to customers based on historical experience. Reserves for returned merchandise are included as a component of “Accounts receivables” in the consolidated balance sheets. Practical Expedient Usage and Accounting Policy Elections For the Company’s contracts that have an original duration of one year or less, the Company uses the practical expedient in ASC 606-10-32-18 applicable to such contracts and accordingly, does not consider the time value of money in relation to significant financing components. The effect of applying this practical expedient election did not have an impact on the Company’s consolidated financial statements. Per ASC 606-10-25-18B, the Company has elected to account for shipping and handling activities that occur after the customer has obtained control as a fulfillment activity instead of a performance obligation. Furthermore, shipping and handling activities performed before transfer of control of the product also do not constitute a separate and distinct performance obligation. The Company has elected to exclude from the transaction price those amounts which relate to sales and other taxes that are assessed by governmental authorities and that are imposed on and concurrent with a specific revenue-producing transaction and collected by the Company from a customer. Applying the practical expedient in ASC 340-40-25-4 – Other Assets and Deferred Costs , the Company recognizes the incremental costs of obtaining contracts as an expense when incurred. These costs are included in “Selling, general and administrative expenses.” Disaggregation of Revenues The following table represents external net sales disaggregated by product category, by segment: For the twelve months ended December 31, 2023 (amounts in 000's) United States Canada Europe Total First Aid and Safety $ 104,932 $ 8,160 $ 1,369 $ 114,461 Cutting and Sharpening 58,273 5,731 13,036 77,040 Total Net Sales $ 163,205 $ 13,891 $ 14,405 $ 191,501 For the twelve months ended December 31, 2022 United States Canada Europe Total First Aid and Safety $ 95,820 $ 7,110 $ 1,702 $ 104,632 Cutting and Sharpening 69,385 6,669 13,276 89,330 Total Net Sales $ 165,205 $ 13,779 $ 14,978 $ 193,962 |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2023 | |
Segment Information [Abstract] | |
Segment Information | 10. Segment Information The Company reports financial information based on the organizational structure used by the Company’s chief operating decision maker for making operating and investment decisions and for assessing performance. The Company’s reportable business segments consist of: (1) United States; (2) Canada; and (3) Europe. As described below, the activities of the Company’s Asian operations are closely linked to those of the U.S. operations; accordingly, the Company’s chief operating decision maker reviews the financial results of both on a consolidated basis, and the results of the Asian operations have been aggregated with the results of the United States operations to form one reportable segment called the “United States segment” or “U.S. segment”. Each reportable segment derives its revenue from the sales of cutting devices, measuring instruments and safety products for school, office, home, hardware, sporting and industrial use. Domestic sales orders are filled primarily from the Company’s distribution centers and facilities in North Carolina, Washington, Massachusetts, Tennessee, Florida, California and New Hampshire. The Company is responsible for the costs of shipping, insurance, customs clearance, duties, storage and distribution related to such products. Orders filled from the Company’s inventory are generally for less than container-sized lots. Direct import sales are products sold by the Company’s Asian subsidiary, directly to major U.S. retailers who take ownership of the products in Asia. These sales are completed by delivering product to the customers’ common carriers at the shipping points in Asia. Direct import sales are made in larger quantities than domestic sales, typically full containers. Direct import sales represented approximately 6 % and 8 % of the Company’s total net sales in 2023 and 2022, respectively. The Chief Operating Decision Maker evaluates the performance of each operating segment based on segment revenues and operating income. Segment revenues are defined as total revenues, including both external customer revenue and inter-segment revenue. Segment operating earnings are defined as segment revenues, less cost of goods sold and operating expenses. Identifiable assets by segment are those assets used in the respective reportable segment’s operations. Inter-segment amounts are eliminated to arrive at consolidated financial results. The following table sets forth certain financial data by segment for the years ended December 31, 2023 and 2022: Financial data by segment: (000’s omitted) Year Ended December 31, 2023 United States Canada Europe Consolidated Net sales $ 163,205 $ 13,891 $ 14,405 $ 191,501 Operating income 11,477 866 845 13,188 Assets 131,382 8,557 9,302 149,241 Additions to property, plant and equipment 4,626 — 47 4,673 Depreciation and amortization 4,833 102 76 5,011 Year Ended December 31, 2022 United States Canada Europe Consolidated Net sales $ 165,205 $ 13,779 $ 14,978 $ 193,962 Operating income 4,783 1,136 354 6,273 Assets 144,466 9,078 10,833 164,377 Additions to property, plant and equipment 4,174 52 79 4,305 Depreciation and amortization 4,398 96 84 4,578 The following is a reconciliation of segment operating income to consolidated income before taxes: (000’s omitted) 2023 2022 Total operating income $ 13,188 $ 6,273 Interest expense, net ( 2,977 ) ( 2,364 ) Gain on sale of business 12,564 — Other (expense), net ( 41 ) (247 ) Consolidated income before taxes $ 22,734 $ 3,662 The table below presents revenue by geographic area. Revenues are attributed to countries based on location of the customer. (000’s omitted) Revenues 2023 2022 United States $ 162,070 $ 163,546 International: Canada 13,891 13,779 Europe 14,405 14,978 Other 1,135 1,659 Total International $ 29,431 $ 30,416 Total Revenues $ 191,501 $ 193,962 |
Stock Option Plans
Stock Option Plans | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock Option Plans | 11. Stock Option Plans The Company grants stock options under the 2022 Employee Stock Option Plan (the “2022 Employee Plan”) and under the 2017 Non-Salaried Director Stock Option Plan (the “2017 Director Plan”). The Company also has two plans under which the Company no longer grants options but under which certain options remain outstanding: the 2005 Non-Salaried Director Stock Option Plan (the “2005 Director Plan”) and the 2012 Employee Stock Option Plan (the “2012 Employee Plan”). The 2022 Employee Plan, which was approved by the shareholders of the Company at the April 20, 2022, Annual Meeting, provides for the issuance of incentive and non-qualified stock options at an exercise price equal to the fair market value of the Common Stock on the date the option is granted. The terms of the options granted are subject to the provisions of the 2022 Employee Plan. Options granted under the 2022 Employee Plan vest 25% one day after the first anniversary of the grant date and 25% one day after each of the next three anniversaries. As of December 31, 2023 , the number of shares available for grant under the 2022 Employee Plan is 3,250 . Under the terms of the 2022 Employee Plan, no option may be granted under that plan after the tenth anniversary of the adoption of the plan. The 2012 Employee Plan, which became effective April 23, 2012, provides for the issuance of incentive and non-qualified stock options at an exercise price equal to the fair market value of the Common Stock on the date the option is granted. The terms of the options granted are subject to the provisions of the 2012 Employee Plan. Options granted under the 2012 Employee Plan vest 25% one day after the first anniversary of the grant date and 25% one day after each of the next three anniversaries. Under the terms of the 2012 Employee Plan, no option may be granted under that plan after the tenth anniversary of the adoption of the plan. The 2017 Director Plan provides for the issuance of stock options for up to a total of 50,000 shares of the Company's common stock to non-salaried directors. Under the 2017 Director Plan, Directors elected after the effective date and at subsequent Annual Meetings who have not received any prior grants under the plan or previous plans shall receive an initial grant of an option to purchase 5,000 shares of Common Stock (the “Initial Option”). Each year, each elected non-salaried Director not receiving an Initial Option will receive an option to purchase 5,000 shares of Common Stock (the “Annual Option”). The Initial Option vests 25% on the date of grant and 25% on the anniversary of the grant date in each of the following 3 years. Each Annual Option becomes fully exercisable one day after the date of grant. The exercise price of each option granted equals the fair market value of the Common Stock on the date the option is granted and expires ten (10) years from the date of grant. The 2017 Director Plan provides that the Board of Directors has the authority to increase or decrease the number of shares of Common Stock which are the subject of the annual or initial option grants to directors. No options may be granted under the 2017 Director Plan after the tenth anniversary of the adoption of the Plan, i.e., after April 24, 2027. As of December 31, 2023 , there were no shares available for grant under the 2017 Director Plan. Annual Options were customarily granted to non-salaried Directors on the date of the respective Annual Meeting of Shareholders. However, in 2023, there were no options available for grant under the 2017 Director Plan. As a result, options were not granted to Directors in 2023. Because the Company did not make the customary annual grant of options to the non-salaried directors in 2023, the Company, instead, paid a cash fee to each of the non-salaried directors in an amount equal to $ 48,500 . The 2005 Director Plan, as amended, provided for the issuance of stock options for up to a total of 180,000 shares of the Company's common stock to non-salaried directors. Under the 2005 Director Plan, Directors elected on April 25, 2005 and at subsequent Annual Meetings who had not received any prior grant under this or previous plans received an initial grant of an option to purchase 5,000 shares of Common Stock (the “Initial Option”). Each year, each elected Director not receiving an Initial Option received a 5,000 share option (the “Annual Option”). The Initial Option vested 25% on the date of grant and 25% on the anniversary of the grant date in each of the following 3 years. Each Annual Option became fully exercisable one day after the date of grant. The exercise price of each option granted equaled the fair market value of the Common Stock on the date the option was granted and expired ten (10) years from the date of grant. As provided in the Director Plan, no options could be granted under the 2005 Director Plan after the tenth anniversary of the adoption of the Plan, i.e., after April 25, 2015. The Company’s stock option plans for both employees and directors permit options to be exercised on a net basis and receive either cash or shares of the Company’s Common Stock. Specifically, optionees may, at the time of exercise of an option and subject to the consent of the Company, elect either (i) to receive from the Company cash in an amount equal to the number of shares of Common Stock subject to the option (or portion thereof) that is being exercised multiplied by the excess of (a) the fair market value per share over (b) the exercise price per share of the option (a “net cash settlement”); or (ii) to make payment of the exercise price of the option by reduction in the number of shares of Common Stock otherwise deliverable upon exercise of such option by the number of shares having an aggregate fair market value equal to the total exercise price of the option (or portion thereof). In 2023 and 2022, the Company paid a total of approximately $ 292,153 and $ 108,155 respectively, to optionees who had elected a net cash settlement of their respective share options. In 2023 and 2022, the Company issued 20,256 and 10,067 shares, respectively, to optionees who had elected a net share settlement. A summary of changes in options issued under the Company’s stock option plans follows: 2023 2022 Options outstanding at the beginning of the year 1,617,672 1,537,052 Options granted 163,500 133,250 Options forfeited ( 6,938 ) ( 6,562 ) Options exercised ( 175,473 ) ( 46,068 ) Options outstanding at the end of the year 1,598,761 1,617,672 Options exercisable at the end of the year 1,138,706 1,132,174 Common stock available for future grants at the end of the year 3,250 166,750 Weighted average exercise price per share: Granted $ 30.47 $ 29.35 Forfeited 20.68 31.50 Exercised 16.95 12.73 Outstanding 26.77 25.30 Exercisable 24.82 22.83 A summary of options outstanding as December 31, 2023 is as follows: Options Outstanding Options Exercisable Range of Exercise Prices Number Weighted- Weighted- Number Weighted- $ 16.71 to $ 21.62 311,625 3 $ 19.73 311,625 $ 19.73 $ 21.63 to $ 23.29 379,562 6 22.81 327,940 22.77 $ 23.30 to $ 27.77 300,450 4 24.43 290,450 24.45 $ 27.78 to $ 31.56 311,624 9 29.88 48,191 28.98 $ 31.57 to $ 39.56 295,500 8 38.37 160,500 38.33 1,598,761 1,138,706 The weighted average remaining contractual life of all outstanding stock options is 6 years. Stock-Based Compensation Stock-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense over the requisite service period, which is generally the vesting period. The Company uses the Black-Scholes option pricing model to determine the fair value of employee and non-employee director stock options. The determination of the fair value of stock-based payment awards on the date of grant, using an option-pricing model, is affected by the Company’s stock price as well as assumptions regarding a number of complex and subjective variables. These assumptions include estimating the length of time employees will retain their vested stock options before exercising them (“expected term”), the estimated volatility of the Company’s Common Stock price over the expected term (“volatility”) and the number of options that will not fully vest in accordance with applicable vesting requirements (“forfeitures”). The Company estimates the expected term of options granted by evaluating various factors, including the vesting period, historical employee information, as well as current and historical stock prices and market conditions. The Company estimates the volatility of its common stock by calculating historical volatility based on the closing stock price on the last day of each of the 84 months leading up to the month the option was granted. The risk-free interest rate that the Company uses in the option valuation model is the interest rate on U.S. Treasury zero-coupon bond issues with remaining terms similar to the expected term of the options granted. Historical information was the basis for calculating the dividend yield. The Company is required to estimate forfeitures at the time of grant and to revise those estimates in subsequent periods if actual forfeitures differ from those estimates. The Company used a mix of historical data and future assumptions to estimate pre-vesting option forfeitures and to record stock-based compensation expense only for those awards that are expected to vest. All stock-based payment awards are amortized over the requisite service periods of the awards, which are generally the vesting periods. The assumptions used to value option grants for the years ended December 31, 2023 and 2022 were as follows: 2023 2022 Expected life in years 7 7 Interest rate 4.17 % 2.79 % Volatility 0.422 0.413 Dividend yield 1.8 % 1.9 % Total stock-based compensation recognized in the Company’s consolidated statements of operations for the years ended December 31, 2023 and 2022 were $ 1,940,443 and $ 1,803,302 , respectively. At December 31, 2023 , there was approximately $ 3,539,238 of unrecognized compensation cost, adjusted for estimated forfeitures, related to non-vested stock-based payments granted to the Company’s employees. As of December 31, 2023 , the remaining unamortized expense is expected to be recognized over a weighted average period of 3 years. The weighted average fair value at the date of grant for options granted during 2023 and 2022 was $ 12.65 and $ 11.14 per option, respectively. The aggregate intrinsic value of outstanding options was $ 25,727,340 and $ 1,622,738 at December 31, 2023 and 2022, respectively. The aggregate intrinsic value of exercisable options was $ 20,536,948 and $ 1,565,553 at December 31, 2023 and 2022, respectively. The aggregate intrinsic value of options exercised during 2023 and 2022 was $ 2,646,835 and $ 747,730 , respectively. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 12. Earnings Per Share The calculation of earnings per share is as follows: 2023 2022 Numerator: Net income $ 17,793,160 $ 3,034,766 Denominator: Denominator for basic earnings per share: Weighted average shares outstanding 3,572,144 3,527,626 Effect of diluted employee stock options 85,553 191,624 Denominator for dilutive earnings per share 3,657,697 3,719,250 Basic earnings per share $ 4.98 $ 0.86 Diluted earnings per share $ 4.86 $ 0.82 For 2023 and 2022 , respectively, 591,624 and 296,438 stock options were excluded from diluted earnings per share calculations because they would have been anti-dilutive. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | 13. Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss follow: Foreign currency Total Balances, December 31, 2021 $ ( 1,380,648 ) $ ( 1,380,648 ) Translation adjustment ( 707,251 ) ( 707,251 ) Balances, December 31, 2022 $ ( 2,087,899 ) $ ( 2,087,899 ) Translation adjustment 382,312 382,312 Balances, December 31, 2023 $ ( 1,705,587 ) $ ( 1,705,587 ) |
Cash, Cash Equivalents and Rest
Cash, Cash Equivalents and Restricted Cash | 12 Months Ended |
Dec. 31, 2023 | |
Cash and Cash Equivalents [Abstract] | |
Cash, Cash Equivalents and Restricted Cash | 14. Cash, Cash Equivalents and Restricted Cash (dollars in 000’s): December 31, December 31, 2023 2022 Cash and cash equivalents $ 4,796 $ 6,100 Restricted Cash - current 750 750 Restricted Cash - non-current - 750 Total cash, cash equivalents and restricted cash $ 5,546 $ 7,600 Restricted cash, which is reported within other short-term and long-term assets in the consolidated balance sheets consists of the contingent payment held in escrow related to the acquisition of certain assets of Safety Made. See Note 16 – Business Combinations and Divestitures for additional information related to the acquisition of certain assets of Safety Made. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Leases | 15. Leases The Company has operating leases for office and warehouse space and equipment under various arrangements which provide the right to use the underlying asset and require lease payments for the lease term. The Company’s lease portfolio consists of operating leases which expire at various dates through 2026. Certain of the Company’s lease arrangements contain renewal provisions, exercisable at the Company's option. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. Operating lease cost was $ 1.3 million and $ 1.2 million for the years ended December 31, 2023 and 2022, respectively. For the years ended December 31, 2023 and 2022, $ 0.4 million was included in cost of goods sold and $ 0.7 million and $ 0.8 million, respectively, was included in selling, general and administrative expenses in the accompanying consolidated statements of operations. Information related to leases (dollars in 000’s): Year ended Year ended Operating cash flow information: December 31, 2023 December 31, 2022 Operating lease cost $ 1,344 $ 1,239 Operating lease - cash flow $ 1,406 $ 1,281 Non-cash activity: ROU assets obtained in exchange for lease liabilities $ 581 $ 545 December 31, 2023 December 31, 2022 Weighted-average remaining lease term 2.0 years 3.0 years Weighted-average discount rate 5 % 5 % Future minimum lease payments under non-cancellable leases as of December 31, 2023: (dollars in 000’s): 2024 $ 1,177 2025 887 2026 165 Total future minimum lease payments $ 2,229 Less: imputed interest ( 104 ) Present value of lease liabilities - current 1,099 Present value of lease liabilities - non-current $ 1,026 |
Business Combinations and Dives
Business Combinations and Divestitures | 12 Months Ended |
Dec. 31, 2023 | |
Business Combinations [Abstract] | |
Business Combinations and Divestitures | 16. Business Combinations and Divestitures On June 1, 2022, the Company purchased certain assets of Live Safely Products, LLC (d/b/a “Safety Made”) for approximately $ 11 million, including $ 1.5 million of which is contingent upon meeting certain annual financial targets during a two-year period. Based in Keene, NH, Safety Made is a leading manufacturer of first aid kits for the promotional products industry. The purchase price was allocated to assets acquired as follows (in thousands): Assets: Accounts Receivable $ 512 Inventory 944 Prepaid Expense 14 Property, plant and equipment 877 Intangible Assets Backlog 23 Non-Compete 920 Tradename 1,990 Customer list 2,210 Goodwill 3,389 Total assets $ 10,879 The acquisition was accounted for as a business combination, pursuant to ASC 805 – Business Combinations . All assets acquired in the acquisition are included in the Company’s United States operating segment. Intangible assets include Customer List, Trade Names, Non-Compete Agreements, and Goodwill. The useful lives of the identified intangible assets range from 5 years to 15 years. As part of the acquisition of Safety Made, $ 1.5 million of the purchase price was placed in escrow to be paid to the sellers, contingent on the acquired business meeting certain revenue milestones over a two-year period, commencing on the date of the acquisition. The fair value of the contingent liability at each reporting date is based on certain estimates and judgements made by management. Those estimates are made from the most relevant data available at that time and include historical data and future projections. On June 1, 2023, the Escrow Agent disbursed to the Seller a payment of $ 750,000 , as determined by the calculation outlined in the purchase agreement. At December 31, 2023, the fair value of the remaining contingent consideration was $ 750,000 . The remaining $ 750,000 contingent payment that is being held in escrow is classified as restricted cash and is recorded in other current assets on the consolidated balance sheet. Divestitures On November 1, 2023 , the Company sold the assets of its Camillus Cutlery and Cuda business lines (the “Business”) to GSM Holdings, Inc., a Delaware corporation (“GSM Holdings”), pursuant to an Asset Purchase Agreement entered into on the same date. The purchase price for the Business was $ 19.8 million. At closing, GSM Holdings paid $ 18.3 million to the Company; the balance of the purchase price, $ 1.5 million, is subject to a 12-month holdback as a non-exclusive source of recovery primarily to satisfy indemnification claims under the Asset Purchase Agreement. The divestiture resulted in a gain of $ 12.6 million, which was recorded within Other Income, net in the consolidated statements of operations. The gain, net of tax, was approximately $ 9.6 million. Sales of Camillus and Cuda products represented approximately 6 % of the total net sales in 2023. The divestiture did not meet the criteria for reporting as discontinued operations. |
Accounting Policies (Policies)
Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Estimates | Estimates – The preparation of financial statements in conformity with generally accepted accounting principles in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The most sensitive and significant accounting estimates relate to customer rebates, valuation allowances for deferred income tax assets, obsolete and slow-moving inventories, potentially uncollectible accounts receivable, intangibles and stock-based compensation. Actual results could differ from those estimates. |
Principles of Consolidation | Principles of Consolidation – The consolidated financial statements include the accounts of the Company and its subsidiaries, all of which are wholly owned by the Company. All significant intercompany accounts and transactions are eliminated in consolidation. |
Translation of Foreign Currency | Translation of Foreign Currency – For foreign operations whose functional currencies are not U.S. dollars, assets and liabilities are translated at rates in effect at the end of the year; revenues and expenses are translated at average rates in effect during the year. Resulting translation adjustments are made directly to accumulated other comprehensive income. Foreign currency transaction gains and losses are recognized in operating results. Included in other income (expense), net were foreign currency transaction losses of $ 39,410 and $ 288,191 in 2023 and 2022 , respectively. |
Cash Equivalents | Cash Equivalents – Investments with an original maturity of three months or less, as well as time deposits and certificates of deposit that are readily redeemable at the date of purchase, are considered cash equivalents. |
Accounts Receivable | Accounts Receivable – The Company provides an allowance for doubtful accounts based upon a review of outstanding accounts receivable, historical collection information and existing economic conditions. The allowance for doubtful accounts represents estimated uncollectible accounts receivables associated with potential customer defaults on contractual obligations, usually due to potential insolvencies. The allowance includes amounts for certain customers where a risk of default has been specifically identified. In addition, the allowance includes a provision for customer defaults based on historical experience. The Company actively monitors its accounts receivable balances, and its historical experience of annual accounts receivable write-offs has been negligible. Accounts receivable are shown less an allowance for doubtful accounts of $ 567,015 at December 31, 2023 and $ 1,060,812 at December 31, 2022 . As of January 1, 2022, accounts receivable, less an allowance for doubtful accounts was $ 34,220,635 . |
Inventories | Inventories – Inventories are stated at the lower of cost, or net realizable value, determined by the first-in, first-out method for our cutting products. Cost for our first aid and medical products is computed using standard cost, which approximates actual cost on a first in, first out basis. |
Property, Plant and Equipment and Depreciation | Property, Plant and Equipment, and Depreciation – Property, plant and equipment are recorded at cost. Depreciation is computed by the straight-line method over the estimated useful lives of the assets. The range of estimated useful lives of these assets are as follows: buildings and building improvements useful lives range from 10 to 39 years ; machinery and equipment useful lives range from 3 to 10 years . The Company tests its property, plant and equipment whenever events or changes in circumstances (triggering event) indicate that its carrying amount may not be recoverable. During 2023 and 2022, there were no triggering events that would indicate its carrying amount may not be recoverable. As a result, there was no impairment of the carrying amounts of such assets and no reduction in their estimated useful lives. |
Intangible Assets and Goodwill | Intangible Assets and Goodwill – Intangible assets with finite useful lives are recorded at cost upon acquisition and amortized over the term of the related contract, if any, or useful life, as applicable. Intangible assets held by the Company with finite useful lives include patents and trademarks. Patents and trademarks are amortized over their estimated useful lives. The weighted average amortization period for intangible assets at December 31, 2023 was 8 years. The Company periodically reviews the values recorded for finite lived intangible assets whenever events or changes in circumstances (triggering event) indicate that its carrying amount may not be recoverable. During 2023 and 2022, there were no triggering events that would indicate its carrying amount may not be recoverable. As a result, there was no impairment of the carrying amounts of such assets and no reduction in their estimated useful lives. The Company annually reviews goodwill to assess recoverability from future operations whenever events or changes in circumstances indicate that its carrying amounts may not be recoverable. At December 31, 2023 and 2022 , the Company assessed the recoverability of its intangible assets and goodwill and believed that there were no events or circumstances present that would require a test of recoverability on those assets. As a result, there was no impairment of the carrying amounts of such assets and no reduction in their estimated useful lives. |
Contingent Consideration | Contingent Consideration - As part of the acquisition of Safety Made, $ 1.5 million of the purchase price was placed in escrow to be paid to the sellers, contingent on the acquired business meeting certain revenue milestones over a two-year period, commencing on the date of the acquisition. The fair value of the contingent liability at each reporting date is based on certain estimates and judgements made by management. Those estimates are made from the most relevant data available at that time and include historical data and future projections. On June 1, 2023, the Escrow Agent disbursed to the Seller a payment of $ 750,000 , as determined by the calculation outlined in the purchase agreement. At December 31, 2023, the fair value of the remaining contingent consideration was $ 750,000 . |
Deferred Income Taxes | Deferred Income Taxes – Deferred income taxes are provided for the differences between the financial statement and tax bases of assets and liabilities, and on operating loss carryovers, using tax rates in effect in years in which the differences are expected to reverse. |
Leases | Leases – The Company determines if an arrangement is an operating lease at inception. Leases with an initial term of 12 months or less are not recorded on the balance sheet. All other leases are recorded on the balance sheet with right-of-use (“ROU”) assets representing the right to use the underlying asset for the lease term and lease liabilities representing the obligation to make lease payments arising from the lease. Lessees and lessors may elect to apply a package of practical expedients permitting entities not to reassess: (i) whether any expired or existing contracts are or contain leases; (ii) lease classification for any expired or existing leases; and (iii) whether initial direct costs for any expired or existing leases qualify for capitalization under the amended guidance. These practical expedients must be elected as a package and consistently applied. The Company elected to apply the package of practical expedients upon adoption. ROU assets and lease liabilities are recognized at the commencement date of the lease based on the present value of lease payments over the lease term and include options to extend or terminate the lease when they are reasonably certain to be exercised. As most of the Company’s leases do not provide an implicit rate, the present value of lease payments is determined primarily using our incremental borrowing rate based on the information available at the lease commencement date. The incremental borrowing rate is the rate of interest that we would have to pay to borrow on a collateralized basis over a similar term on an amount equal to the lease payments in a similar economic environment. Lease arrangements with lease and non-lease components are generally accounted for as a single lease component. The Company's operating lease expense is recognized on a straight-line basis over the lease term. |
Revenue Recognition | Revenue Recognition – The Company's revenues result from the sale of goods or services and reflect the consideration to which the Company expects to be entitled. The Company records revenue based on a five-step model in accordance with Accounting Standards Codification ("ASC") 606, Revenue from Contracts with Customers ("ASC 606"). For its contracts with customers, the Company identifies the performance obligations (goods or services), determines the transaction price, allocates the contract transaction price to the performance obligations, and recognizes the revenue when (or as) the performance obligation is transferred to the customer. A good or service is transferred when (or as) the customer obtains control of that good or service. Depending on the contractual terms of each customer, revenue is recognized either at the time of shipment or upon delivery. When revenue is recorded, estimates of returns are made and recorded as a reduction of revenue. Customer rebates and incentives are earned based on promotional programs in place, volume of purchases or other factors are also estimated at the time of revenue recognition and recorded as a reduction of that revenue. Refer to Note 9 – Revenue from Contracts with Customers, for a more detailed discussion. |
Shipping Costs | Shipping Costs – The costs of shipping product to the Company’s customers ($ 8,638,865 in 2023 and $ 11,328,276 in 2022 ) are included in selling, general and administrative expenses. |
Advertising Costs | Advertising Costs – The Company expenses the production costs of advertising the first time that the related advertising takes place. Advertising costs ($ 1,817,783 in 2023 and $ 1,563,430 in 2022 ) are included in selling, general and administrative expenses. |
Concentration | Concentration – The Company performs ongoing credit evaluations of its customers and generally does not require collateral for the extension of credit. Allowances for credit losses are provided and have been within management's expectations. The Company had two customers in 2023 and 2022 , that individually exceeded 10% of consolidated net sales. Net sales to these customers were approximately 14 % and 12 % of consolidated net sales in 2023 and 15 % and 10 % in 2022 . |
Recently Issued and Adopted Accounting Standards | Recently Issued Accounting Standards In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” (“ASU 2023-09”). ASU 2023-09 requires additional categories of information about federal, state and foreign income taxes to be included in effective tax rate reconciliation disclosure. Additionally, the newly added categories also apply to the income taxes paid disclosure. Implementation of said additions are subject to quantitative thresholds. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024. The Company is currently evaluating the impact of adopting ASU 2023-09. |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories | December 31, 2023 2022 Finished goods $ 39,315,594 $ 45,371,042 Work in process 208,212 408,346 Materials and supplies 15,946,186 17,545,818 Inventories: $ 55,469,992 $ 63,325,206 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Goodwill | The Company’s intangible assets and goodwill consisted of: December 31, 2023 2022 Tradename $ 10,007,698 $ 10,007,698 Customer List 18,824,198 18,502,207 Non-Compete 1,247,536 1,247,536 Slice License Agreement 379,921 379,921 Patents 2,271,980 2,271,980 Subtotal 32,731,333 32,409,342 Less: Accumulated Amortization 13,729,885 11,618,807 Intangible Assets $ 19,001,448 $ 20,790,535 Goodwill $ 8,188,829 $ 8,188,829 Total: $ 27,190,277 $ 28,979,364 |
Other Accrued Liabilities (Tabl
Other Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | The Company’s other current and non-current accrued liabilities consisted of: December 31, 2023 2022 Customer Rebates $ 5,720,898 $ 5,533,802 Contingent Liability - Safety Made 750,000 1,330,000 Accrued Compensation 2,585,124 791,231 Dividend Payable 546,710 495,406 Income Taxes Payable 362,741 533,746 Other 2,442,799 2,015,798 Total: $ 12,408,272 $ 10,699,983 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Tax Expense | The amounts of income tax expense reflected in operations is as follows: 2023 2022 Current: Federal $ 3,405,403 $ 65,263 State 397,174 192,215 Foreign 544,251 664,766 Total: $ 4,346,828 $ 922,244 Deferred: Federal $ 554,763 $ ( 238,408 ) State 39,853 ( 56,157 ) Total: 594,616 ( 294,565 ) Total Income Tax Expense: $ 4,941,444 $ 627,679 |
US and Foreign Income Before Income Taxes | A summary of United States and foreign income before income taxes follows: 2023 2022 United States $ 18,984,939 $ ( 142,095 ) Foreign 3,749,665 3,804,540 Total: $ 22,734,604 $ 3,662,445 |
US Statutory Rate Reconciliation | The following schedule reconciles the amounts of income taxes computed at the United States statutory rates to the actual amounts reported in operations: 2023 2022 Federal income taxes at 21% statutory rate $ 4,774,267 $ 716,122 State and local taxes, net of federal income tax effect 612,818 120,922 Stock options ( 385,601 ) ( 128,169 ) Permanent items 183,139 — Foreign tax rate difference ( 243,179 ) ( 81,196 ) Provision for income taxes: $ 4,941,444 $ 627,679 |
Deferred Tax Assets and Liabilities | The following summarizes deferred income tax assets and liabilities: 2023 2022 Deferred income tax liabilities: Property, plant and equipment $ 2,328,345 $ 2,004,200 Intangible assets 1,336,996 1,278,478 Other 609,817 251,655 Total deferred tax liabilities 4,275,158 3,534,333 Deferred income tax assets: Net operating loss carryover 930,000 1,170,000 Stock compensation 1,964,332 1,687,357 Asset valuations 852,308 1,109,954 Other 559,174 431,737 Total deferred tax assets 4,305,814 4,399,048 Less: valuation allowance ( 930,000 ) ( 1,170,000 ) Total deferred tax assets, net 3,375,814 3,229,048 Net deferred income tax liability: $ 899,344 $ 305,285 |
Long-Term Debt and Shareholde_2
Long-Term Debt and Shareholders’ Equity (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Long Term Debt And Stockholders Equity [Abstract] | |
Schedule of Long-Term Debt | Long-term debt associated with the mortgage consisted of the following at December 31, 2023 and 2022: December 31, 2023 December 31, 2022 Mortgage payable - HSBC Bank N.A. $ 10,823,033 $ 11,232,990 Less debt issuance costs ( 119,736 ) ( 134,790 ) 10,703,297 11,098,200 Less current maturities 419,309 404,588 Long-term mortgage payable less current maturities $ 10,283,988 $ 10,693,612 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenues | The following table represents external net sales disaggregated by product category, by segment: For the twelve months ended December 31, 2023 (amounts in 000's) United States Canada Europe Total First Aid and Safety $ 104,932 $ 8,160 $ 1,369 $ 114,461 Cutting and Sharpening 58,273 5,731 13,036 77,040 Total Net Sales $ 163,205 $ 13,891 $ 14,405 $ 191,501 For the twelve months ended December 31, 2022 United States Canada Europe Total First Aid and Safety $ 95,820 $ 7,110 $ 1,702 $ 104,632 Cutting and Sharpening 69,385 6,669 13,276 89,330 Total Net Sales $ 165,205 $ 13,779 $ 14,978 $ 193,962 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Information Tables [Abstract] | |
Financial Data By Segment Table | Financial data by segment: (000’s omitted) Year Ended December 31, 2023 United States Canada Europe Consolidated Net sales $ 163,205 $ 13,891 $ 14,405 $ 191,501 Operating income 11,477 866 845 13,188 Assets 131,382 8,557 9,302 149,241 Additions to property, plant and equipment 4,626 — 47 4,673 Depreciation and amortization 4,833 102 76 5,011 Year Ended December 31, 2022 United States Canada Europe Consolidated Net sales $ 165,205 $ 13,779 $ 14,978 $ 193,962 Operating income 4,783 1,136 354 6,273 Assets 144,466 9,078 10,833 164,377 Additions to property, plant and equipment 4,174 52 79 4,305 Depreciation and amortization 4,398 96 84 4,578 |
Reconciliation of Segment Operating Income to Consolidated Income Before Taxes | The following is a reconciliation of segment operating income to consolidated income before taxes: (000’s omitted) 2023 2022 Total operating income $ 13,188 $ 6,273 Interest expense, net ( 2,977 ) ( 2,364 ) Gain on sale of business 12,564 — Other (expense), net ( 41 ) (247 ) Consolidated income before taxes $ 22,734 $ 3,662 |
Revenue by Geographic Area | The table below presents revenue by geographic area. Revenues are attributed to countries based on location of the customer. (000’s omitted) Revenues 2023 2022 United States $ 162,070 $ 163,546 International: Canada 13,891 13,779 Europe 14,405 14,978 Other 1,135 1,659 Total International $ 29,431 $ 30,416 Total Revenues $ 191,501 $ 193,962 |
Stock Option Plans (Tables)
Stock Option Plans (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock Option Activity | A summary of changes in options issued under the Company’s stock option plans follows: 2023 2022 Options outstanding at the beginning of the year 1,617,672 1,537,052 Options granted 163,500 133,250 Options forfeited ( 6,938 ) ( 6,562 ) Options exercised ( 175,473 ) ( 46,068 ) Options outstanding at the end of the year 1,598,761 1,617,672 Options exercisable at the end of the year 1,138,706 1,132,174 Common stock available for future grants at the end of the year 3,250 166,750 Weighted average exercise price per share: Granted $ 30.47 $ 29.35 Forfeited 20.68 31.50 Exercised 16.95 12.73 Outstanding 26.77 25.30 Exercisable 24.82 22.83 |
Summary of Options Outstanding | A summary of options outstanding as December 31, 2023 is as follows: Options Outstanding Options Exercisable Range of Exercise Prices Number Weighted- Weighted- Number Weighted- $ 16.71 to $ 21.62 311,625 3 $ 19.73 311,625 $ 19.73 $ 21.63 to $ 23.29 379,562 6 22.81 327,940 22.77 $ 23.30 to $ 27.77 300,450 4 24.43 290,450 24.45 $ 27.78 to $ 31.56 311,624 9 29.88 48,191 28.98 $ 31.57 to $ 39.56 295,500 8 38.37 160,500 38.33 1,598,761 1,138,706 |
Assumptions Used to Value Option Grants | The assumptions used to value option grants for the years ended December 31, 2023 and 2022 were as follows: 2023 2022 Expected life in years 7 7 Interest rate 4.17 % 2.79 % Volatility 0.422 0.413 Dividend yield 1.8 % 1.9 % |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | The calculation of earnings per share is as follows: 2023 2022 Numerator: Net income $ 17,793,160 $ 3,034,766 Denominator: Denominator for basic earnings per share: Weighted average shares outstanding 3,572,144 3,527,626 Effect of diluted employee stock options 85,553 191,624 Denominator for dilutive earnings per share 3,657,697 3,719,250 Basic earnings per share $ 4.98 $ 0.86 Diluted earnings per share $ 4.86 $ 0.82 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Accumulated Comprehensive Loss | The components of accumulated other comprehensive loss follow: Foreign currency Total Balances, December 31, 2021 $ ( 1,380,648 ) $ ( 1,380,648 ) Translation adjustment ( 707,251 ) ( 707,251 ) Balances, December 31, 2022 $ ( 2,087,899 ) $ ( 2,087,899 ) Translation adjustment 382,312 382,312 Balances, December 31, 2023 $ ( 1,705,587 ) $ ( 1,705,587 ) |
Cash, Cash Equivalents and Re_2
Cash, Cash Equivalents and Restricted Cash (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Cash and Cash Equivalents [Abstract] | |
Summary of Cash, Cash Equivalents and Restricted Cash | December 31, December 31, 2023 2022 Cash and cash equivalents $ 4,796 $ 6,100 Restricted Cash - current 750 750 Restricted Cash - non-current - 750 Total cash, cash equivalents and restricted cash $ 5,546 $ 7,600 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases Tables [Abstract] | |
Information Related to Leases | Information related to leases (dollars in 000’s): Year ended Year ended Operating cash flow information: December 31, 2023 December 31, 2022 Operating lease cost $ 1,344 $ 1,239 Operating lease - cash flow $ 1,406 $ 1,281 Non-cash activity: ROU assets obtained in exchange for lease liabilities $ 581 $ 545 December 31, 2023 December 31, 2022 Weighted-average remaining lease term 2.0 years 3.0 years Weighted-average discount rate 5 % 5 % |
Future Minimum Lease Payments | Future minimum lease payments under non-cancellable leases as of December 31, 2023: (dollars in 000’s): 2024 $ 1,177 2025 887 2026 165 Total future minimum lease payments $ 2,229 Less: imputed interest ( 104 ) Present value of lease liabilities - current 1,099 Present value of lease liabilities - non-current $ 1,026 |
Business Combinations and Div_2
Business Combinations and Divestitures (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Business Combinations [Abstract] | |
Schedule of Purchase Price Allocation to Assets Acquired | The purchase price was allocated to assets acquired as follows (in thousands): Assets: Accounts Receivable $ 512 Inventory 944 Prepaid Expense 14 Property, plant and equipment 877 Intangible Assets Backlog 23 Non-Compete 920 Tradename 1,990 Customer list 2,210 Goodwill 3,389 Total assets $ 10,879 |
Accounting Policies - Accountin
Accounting Policies - Accounting Policies (Detail Narrative) | 12 Months Ended | ||||
Jun. 01, 2023 USD ($) | Jun. 01, 2022 USD ($) | Dec. 31, 2023 USD ($) Customer | Dec. 31, 2022 USD ($) Customer | Jan. 01, 2022 USD ($) | |
Accounting Policies [Line Items] | |||||
Foreign currency transaction gains (losses) during period | $ (39,410) | $ (288,191) | |||
Allowance for doubtful accounts | $ 567,015 | 1,060,812 | $ 34,220,635 | ||
Weighted average intangible assets amortization period | 8 years | ||||
Revenue milestone period | 2 years | ||||
Payment disbursed by Escrow Agent | $ 750,000 | 9,622,391 | |||
Shipping costs during period | 8,638,865 | 11,328,276 | |||
Advertising costs during period | 1,817,783 | $ 1,563,430 | |||
Live Safely Products, LLC | |||||
Accounting Policies [Line Items] | |||||
Business acquisition, contingent liability | $ 1,500,000 | 750,000 | |||
Purchase price placed in escrow | 1,500,000 | ||||
Disburse to the seller payment | $ 750,000 | $ 750,000 | |||
Fair value of remaining contingent consideration | $ 750,000 | ||||
Exceeded 10% of Consolidated Net Sales | |||||
Accounting Policies [Line Items] | |||||
Number of major customers | Customer | 2 | 2 | |||
Minimum | Live Safely Products, LLC | |||||
Accounting Policies [Line Items] | |||||
Weighted average intangible assets amortization period | 5 years | ||||
Minimum | Buildings | |||||
Accounting Policies [Line Items] | |||||
Asset useful life | 10 years | ||||
Minimum | Machinery and Equipment | |||||
Accounting Policies [Line Items] | |||||
Asset useful life | 3 years | ||||
Minimum | Exceeded 10% of Consolidated Net Sales | Major Customer | Two Major Customers | |||||
Accounting Policies [Line Items] | |||||
Net sales to major customers | 12% | 10% | |||
Maximum | Live Safely Products, LLC | |||||
Accounting Policies [Line Items] | |||||
Weighted average intangible assets amortization period | 15 years | ||||
Maximum | Buildings | |||||
Accounting Policies [Line Items] | |||||
Asset useful life | 39 years | ||||
Maximum | Machinery and Equipment | |||||
Accounting Policies [Line Items] | |||||
Asset useful life | 10 years | ||||
Maximum | Exceeded 10% of Consolidated Net Sales | Major Customer | Two Major Customers | |||||
Accounting Policies [Line Items] | |||||
Net sales to major customers | 14% | 15% |
Inventories - Inventories (Deta
Inventories - Inventories (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 39,315,594 | $ 45,371,042 |
Work in process | 208,212 | 408,346 |
Materials and supplies | 15,946,186 | 17,545,818 |
Inventories: | $ 55,469,992 | $ 63,325,206 |
Inventories (Details Narrative)
Inventories (Details Narrative) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Inventory valuation allowance | $ 1,338,211 | $ 1,720,350 |
Intangible Assets and Goodwil_2
Intangible Assets and Goodwill - Intangible Assets (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Tradename | $ 10,007,698 | $ 10,007,698 |
Customer List | 18,824,198 | 18,502,207 |
Non-Compete | 1,247,536 | 1,247,536 |
Slice License Agreement | 379,921 | 379,921 |
Patents | 2,271,980 | 2,271,980 |
Subtotal | 32,731,333 | 32,409,342 |
Accumulated amortization | 13,729,885 | 11,618,807 |
Intangible Assets | 19,001,448 | 20,790,535 |
Goodwill | 8,188,829 | 8,188,829 |
Total: | $ 27,190,277 | $ 28,979,364 |
Intangible Assets and Goodwil_3
Intangible Assets and Goodwill (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization of intangible assets | $ 2,111,078 | $ 1,815,508 |
Estimated aggregate amortization expense: | ||
2024 | 2,270,276 | |
2025 | 1,981,863 | |
2026 | 1,689,565 | |
2027 | 1,361,196 | |
2028 | $ 1,244,529 |
Other Accrued Liabilities (Deta
Other Accrued Liabilities (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Payables and Accruals [Abstract] | ||
Customer Rebates | $ 5,720,898 | $ 5,533,802 |
Contingent Liability - Safety Made | 750,000 | 1,330,000 |
Accrued Compensation | 2,585,124 | 791,231 |
Dividend Payable | 546,710 | 495,406 |
Income Taxes Payable | 362,741 | 533,746 |
Other | 2,442,799 | 2,015,798 |
Total other accrued liabilities | $ 12,408,272 | $ 10,699,983 |
Profit Sharing (Details Narrati
Profit Sharing (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Retirement Benefits [Abstract] | ||
Company contributions to 401k plan | 50% | |
Employee contributions to profit 401k plan | 6% | |
Total contribution expense | $ 428,047 | $ 426,594 |
Income Taxes - Income Tax Expen
Income Taxes - Income Tax Expense (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Current: | ||
Federal | $ 3,405,403 | $ 65,263 |
State | 397,174 | 192,215 |
Foreign | 544,251 | 664,766 |
Total Current | 4,346,828 | 922,244 |
Deferred: | ||
Federal | 554,763 | (238,408) |
State | 39,853 | (56,157) |
Total Deferred | 594,616 | (294,565) |
Total Income Tax Expense | $ 4,941,444 | $ 627,679 |
Income Taxes - US and Foreign I
Income Taxes - US and Foreign Income Before Income Taxes (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
United States | $ 18,984,939 | $ (142,095) |
Foreign | 3,749,665 | 3,804,540 |
Income before income tax expense | $ 22,734,604 | $ 3,662,445 |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Deferred tax assets resulting from net operating losses | $ 930,000 | $ 1,170,000 |
Hong Kong | ||
Hong Kong income tax rate | 16.50% |
Income Taxes - US Statutory Rat
Income Taxes - US Statutory Rate Reconciliation (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
Federal income taxes at 21% statutory rate | $ 4,774,267 | $ 716,122 |
State and local taxes, net of federal income tax effect | 612,818 | 120,922 |
Stock options | (385,601) | (128,169) |
Permanent items | 183,139 | |
Foreign tax rate difference | (243,179) | (81,196) |
Total Income Tax Expense | $ 4,941,444 | $ 627,679 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred income tax liabilities: | ||
Property, plant and equipment | $ 2,328,345 | $ 2,004,200 |
Intangible assets | 1,336,996 | 1,278,478 |
Other | 609,817 | 251,655 |
Total deferred tax liabilities | 4,275,158 | 3,534,333 |
Deferred income tax assets: | ||
Net operating loss carryover | 930,000 | 1,170,000 |
Stock compensation | 1,964,332 | 1,687,357 |
Asset valuations | 852,308 | 1,109,954 |
Other | 559,174 | 431,737 |
Total deferred tax assets | 4,305,814 | 4,399,048 |
Less: valuation allowance | (930,000) | (1,170,000) |
Total deferred tax assets, net | 3,375,814 | 3,229,048 |
Net deferred income tax liability: | $ 899,344 | $ 305,285 |
Long-Term Debt and Shareholde_3
Long-Term Debt and Shareholders' Equity (Details Narrative) | 12 Months Ended | |||
Nov. 08, 2023 | Dec. 31, 2023 USD ($) shares | Dec. 31, 2022 shares | Nov. 14, 2019 shares | |
Long Term Debt And Stockholders Equity [Line Items] | ||||
Credit facility interest rate | SOFR +1.75% | |||
Deferred financing cost | $ 13,164,358,000 | |||
Outstanding borrowings under revolving loan agreement | 59,667,000 | |||
Amount available for borrowing under revolving loan agreement | $ 51,835,642,000 | |||
Purchase of treasury stock | shares | 0 | 0 | ||
Shares that may be purchased under repurchase programs | shares | 160,365 | |||
Minimum | ||||
Long Term Debt And Stockholders Equity [Line Items] | ||||
Credit facility interest rate | SOFR +1.60% | |||
Increased ratio of funded debt to EBITDA | 0.0475 | |||
Maximum | ||||
Long Term Debt And Stockholders Equity [Line Items] | ||||
Credit facility interest rate | SOFR + 2.35% | |||
Increased ratio of funded debt to EBITDA | 0.0575 | |||
Shares authorized to be repurchased during period | shares | 200,000 | |||
HSBC Bank | ||||
Long Term Debt And Stockholders Equity [Line Items] | ||||
Credit facility interest rate | Secured Overnight Financing Rate (“SOFR”) plus 1.75% | |||
Revolving agreement expiration date | May 31, 2026 | |||
Facility fee per annum | 0.125% | |||
HSBC Bank | Maximum | ||||
Long Term Debt And Stockholders Equity [Line Items] | ||||
Credit facility borrowing capacity | $ 65,000,000 | |||
HSBC Bank | Secured Overnight Financing Rate (SOFR) | ||||
Long Term Debt And Stockholders Equity [Line Items] | ||||
Interest rate | 1.75% | |||
First Aid Only Distribution Center | ||||
Long Term Debt And Stockholders Equity [Line Items] | ||||
Covenant terms and compliance | Under the revolving loan agreement, the Company is required to maintain specific amounts of funded debt to EBITDA, a fixed charge coverage ratio and must have annual net income greater than $0, measured as of the end of each fiscal year | |||
Mortgage maturity date | December 1, 2031 | |||
Minimum annual mortgage payments due, 2024 | $ 419,309 | |||
Minimum annual mortgage payments due, 2025 | 436,946 | |||
Minimum annual mortgage payments due, 2026 | 454,112 | |||
Minimum annual mortgage payments due, 2027 | 471,949 | |||
Minimum annual mortgage payments due, 2028 | 489,510 | |||
Minimum annual mortgage payments due, thereafter | $ 8,439,472 |
Long-Term Debt and Shareholde_4
Long-Term Debt and Shareholders' Equity - Schedule of Long-Term Debt (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Less debt issuance costs | $ (13,164,358,000) | |
Long-term mortgage payable less current maturities | 13,104,691 | $ 49,915,649 |
Mortgage Payable - HSBC Bank N.A. | ||
Debt Instrument [Line Items] | ||
Mortgage payable - HSBC Bank N.A. | 10,823,033 | 11,232,990 |
Less debt issuance costs | (119,736) | (134,790) |
Long-term mortgage payable | 10,703,297 | 11,098,200 |
Less current maturities | 419,309 | 404,588 |
Long-term mortgage payable less current maturities | $ 10,283,988 | $ 10,693,612 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Net sales | $ 191,501 | $ 193,962 |
Cutting and Sharpening | ||
Net sales | 77,040 | 89,330 |
First Aid and Safety | ||
Net sales | 114,461 | 104,632 |
United States | ||
Net sales | 163,205 | 165,205 |
United States | Cutting and Sharpening | ||
Net sales | 58,273 | 69,385 |
United States | First Aid and Safety | ||
Net sales | 104,932 | 95,820 |
Europe | ||
Net sales | 14,405 | 14,978 |
Europe | Cutting and Sharpening | ||
Net sales | 13,036 | 13,276 |
Europe | First Aid and Safety | ||
Net sales | 1,369 | 1,702 |
Canada | ||
Net sales | 13,891 | 13,779 |
Canada | Cutting and Sharpening | ||
Net sales | 5,731 | 6,669 |
Canada | First Aid and Safety | ||
Net sales | $ 8,160 | $ 7,110 |
Segment Information (Details Na
Segment Information (Details Narrative) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Segment Information Details Narrative [Abstract] | ||
Direct import sales to total net sales ratio | 6% | 8% |
Segment Information - Financial
Segment Information - Financial Data by Segment (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Net sales | $ 191,500,947 | $ 193,962,357 |
Operating income | 13,188,617 | 6,273,302 |
Assets | 149,241,316 | 164,377,104 |
Additions to property, plant and equipment | 4,673,000 | 4,305,000 |
Depreciation and amortization | 5,011,000 | 4,578,000 |
United States Segment | ||
Net sales | 163,205,000 | 165,205,000 |
Operating income | 11,477,000 | 4,783,000 |
Assets | 131,382,000 | 144,466,000 |
Additions to property, plant and equipment | 4,626,000 | 4,174,000 |
Depreciation and amortization | 4,833,000 | 4,398,000 |
Canada Segment | ||
Net sales | 13,891,000 | 13,779,000 |
Operating income | 866,000 | 1,136,000 |
Assets | 8,557,000 | 9,078,000 |
Additions to property, plant and equipment | 52,000 | |
Depreciation and amortization | 102,000 | 96,000 |
Europe Segment | ||
Net sales | 14,405,000 | 14,978,000 |
Operating income | 845,000 | 354,000 |
Assets | 9,302,000 | 10,833,000 |
Additions to property, plant and equipment | 47,000 | 79,000 |
Depreciation and amortization | $ 76,000 | $ 84,000 |
Segment Information - Reconcili
Segment Information - Reconciliation of Segment Operating Income (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Reconciliation Of Segment Operating Income Details [Abstract] | ||
Operating income | $ 13,188,617 | $ 6,273,302 |
Interest expense, net | 2,977,164 | 2,364,461 |
Gain on sale of business | 12,564,153 | |
Other (expense), net | (41,002) | (246,396) |
Income before income tax expense | $ 22,734,604 | $ 3,662,445 |
Segment Information - Segment R
Segment Information - Segment Revenues (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Total Revenues | $ 191,500,947 | $ 193,962,357 |
United States | ||
Total Revenues | 162,070,000 | 163,546,000 |
Canada | ||
Total Revenues | 13,891,000 | 13,779,000 |
Europe | ||
Total Revenues | 14,405,000 | 14,978,000 |
Other International | ||
Total Revenues | 1,135,000 | 1,659,000 |
Total International | ||
Total Revenues | $ 29,431,000 | $ 30,416,000 |
Stock Option Plans (Details Nar
Stock Option Plans (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Shares available for grant | 3,250 | 166,750 |
Cash settlement of stock options | $ 292,153 | $ 108,155 |
Shares related to settlement of stock options | 20,256 | 10,067 |
Weighted average remaining contractual term | 6 years | |
Stock-based compensation | $ 1,940,443 | $ 1,803,302 |
Unrecognized compensation cost | $ 3,539,238 | |
Unrecognized compensation cost recognition period | 3 years | |
Weighted average fair value at the date of grant | $ 12.65 | $ 11.14 |
Aggregate intrinsic value of outstanding options | $ 25,727,340 | $ 1,622,738 |
Aggregate intrinsic value of exercisable options | 20,536,948 | 1,565,553 |
Aggregate intrinsic value of options exercised | $ 2,646,835 | $ 747,730 |
Employee Plan | ||
Vesting term | Options granted under the 2012 Employee Plan vest 25% one day after the first anniversary of the grant date and 25% one day after each of the next three anniversaries. Under the terms of the 2012 Employee Plan, no option may be granted under that plan after the tenth anniversary of the adoption of the plan. | |
2005 Director Plan | ||
Vesting term | The Initial Option vested 25% on the date of grant and 25% on the anniversary of the grant date in each of the following 3 years. Each Annual Option became fully exercisable one day after the date of grant. The exercise price of each option granted equaled the fair market value of the Common Stock on the date the option was granted and expired ten (10) years from the date of grant. | |
Shares authorized under plan | 180,000 | |
Shares offered under initial option | 5,000 | |
Shares offered under annual option | 5,000 | |
2017 Director Plan | ||
Vesting term | The Initial Option vests 25% on the date of grant and 25% on the anniversary of the grant date in each of the following 3 years. Each Annual Option becomes fully exercisable one day after the date of grant. The exercise price of each option granted equals the fair market value of the Common Stock on the date the option is granted and expires ten (10) years from the date of grant. | |
Shares available for grant | 0 | |
Shares authorized under plan | 50,000 | |
Shares offered under initial option | 5,000 | |
Shares offered under annual option | 5,000 | |
Cash fee paid to non salaried directors | $ 48,500 | |
2022 Employee Plan | ||
Vesting term | Options granted under the 2022 Employee Plan vest 25% one day after the first anniversary of the grant date and 25% one day after each of the next three anniversaries. As of December 31, 2023, the number of shares available for grant under the 2022 Employee Plan is 3,250. Under the terms of the 2022 Employee Plan, no option may be granted under that plan after the tenth anniversary of the adoption of the plan. | |
Shares available for grant | 3,250 |
Stock Option Plans - Stock Opti
Stock Option Plans - Stock Option Activity (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | ||
Options outstanding at the beginning of the year | 1,617,672 | 1,537,052 |
Options granted | 163,500 | 133,250 |
Options forfeited | (6,938) | (6,562) |
Options exercised | (175,473) | (46,068) |
Options outstanding at the end of the year | 1,598,761 | 1,617,672 |
Options exercisable at the end of the year | 1,138,706 | 1,132,174 |
Common stock available for future grants at the end of the year | 3,250 | 166,750 |
Weighted average exercise price per share: | ||
Granted | $ 30.47 | $ 29.35 |
Forfeited | 20.68 | 31.50 |
Exercised | 16.95 | 12.73 |
Outstanding | 26.77 | 25.30 |
Exercisable | $ 24.82 | $ 22.83 |
Stock Option Plans - Summary of
Stock Option Plans - Summary of Options Outstanding (Details) | 12 Months Ended |
Dec. 31, 2023 $ / shares shares | |
Number outstanding | shares | 1,598,761 |
Number exercisable | shares | 1,138,706 |
$16.71 to $21.62 | |
Range of exercise prices, lower range | $ 16.71 |
Range of exercise prices, upper range | $ 21.62 |
Number outstanding | shares | 311,625 |
Options outstanding weighted-average remaining contractual life (years) | 3 years |
Options outstanding weighted-average exercise price | $ 19.73 |
Number exercisable | shares | 311,625 |
Options exercisable weighted-average exercise price | $ 19.73 |
$21.63 to $23.29 | |
Range of exercise prices, lower range | 21.63 |
Range of exercise prices, upper range | $ 23.29 |
Number outstanding | shares | 379,562 |
Options outstanding weighted-average remaining contractual life (years) | 6 years |
Options outstanding weighted-average exercise price | $ 22.81 |
Number exercisable | shares | 327,940 |
Options exercisable weighted-average exercise price | $ 22.77 |
$23.30 to $27.77 | |
Range of exercise prices, lower range | 23.3 |
Range of exercise prices, upper range | $ 27.77 |
Number outstanding | shares | 300,450 |
Options outstanding weighted-average remaining contractual life (years) | 4 years |
Options outstanding weighted-average exercise price | $ 24.43 |
Number exercisable | shares | 290,450 |
Options exercisable weighted-average exercise price | $ 24.45 |
$27.78 to $31.56 | |
Range of exercise prices, lower range | 27.78 |
Range of exercise prices, upper range | $ 31.56 |
Number outstanding | shares | 311,624 |
Options outstanding weighted-average remaining contractual life (years) | 9 years |
Options outstanding weighted-average exercise price | $ 29.88 |
Number exercisable | shares | 48,191 |
Options exercisable weighted-average exercise price | $ 28.98 |
$31.57 to $39.56 | |
Range of exercise prices, lower range | 31.57 |
Range of exercise prices, upper range | $ 39.56 |
Number outstanding | shares | 295,500 |
Options outstanding weighted-average remaining contractual life (years) | 8 years |
Options outstanding weighted-average exercise price | $ 38.37 |
Number exercisable | shares | 160,500 |
Options exercisable weighted-average exercise price | $ 38.33 |
Stock Option Plans - Assumption
Stock Option Plans - Assumptions Used to Value Option Grants (Details) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Expected life in years | 7 years | 7 years |
Interest rate | 4.17% | 2.79% |
Volatility | 0.422% | 0.413% |
Dividend yield | 1.8% | 1.9 |
Earnings Per Share - Earnings P
Earnings Per Share - Earnings Per Share (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Earnings Per Share [Abstract] | ||
Net income | $ 17,793,160 | $ 3,034,766 |
Weighted average shares outstanding | 3,572,144 | 3,527,626 |
Effect of diluted employee stock options | 85,553 | 191,624 |
Denominator for dilutive earnings per share | 3,657,697 | 3,719,250 |
Basic earnings per share | $ 4.98 | $ 0.86 |
Diluted earnings per share | $ 4.86 | $ 0.82 |
Earnings Per Share (Details Nar
Earnings Per Share (Details Narrative) - shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Earnings Per Share [Abstract] | ||
Options excluded from earnings per share calculation | 591,624 | 296,438 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Accumulated Comprehensive Loss (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Accumulated other comprehensive income (loss), beginning balance | $ (2,087,899) | $ (1,380,648) |
Translation adjustment | 382,312 | (707,251) |
Accumulated other comprehensive income (loss), ending balance | (1,705,587) | (2,087,899) |
Foreign Currency Translation Adjustment | ||
Accumulated other comprehensive income (loss), beginning balance | (2,087,899) | (1,380,648) |
Translation adjustment | 382,312 | (707,251) |
Accumulated other comprehensive income (loss), ending balance | $ (1,705,587) | $ (2,087,899) |
Cash, Cash Equivalents and Re_3
Cash, Cash Equivalents and Restricted Cash - Summary of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents [Abstract] | |||
Cash and cash equivalents | $ 4,795,953 | $ 6,100,409 | |
Restricted cash | 750,000 | 750,000 | |
Restricted Cash - non-current | 750,000 | ||
Total cash, cash equivalents and restricted cash | $ 5,545,954 | $ 7,600,409 | $ 4,843,349 |
Leases (Details Narrative)
Leases (Details Narrative) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Lessee Lease Description [Line Items] | ||
Operating lease expense | $ 1.3 | $ 1.2 |
Cost of Goods Sold | ||
Lessee Lease Description [Line Items] | ||
Operating lease expense | 0.4 | 0.4 |
Selling, General and Administrative Expenses | ||
Lessee Lease Description [Line Items] | ||
Operating lease expense | $ 0.7 | $ 0.8 |
Leases - Information Related to
Leases - Information Related to Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Leases Details [Abstract] | ||
Operating lease cost | $ 1,344 | $ 1,239 |
Operating lease - cash flow | 1,406 | 1,281 |
ROU assets obtained in exchange for lease liabilities | $ 581 | $ 545 |
Weighted-average remaining lease term | 2 years | 3 years |
Weighted-average discount rate | 5% | 5% |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Future Minimum Lease Payments: | ||
2024 | $ 1,177,000 | |
2025 | 887,000 | |
2026 | 165,000 | |
Total future minimum lease payments | 2,229,000 | |
Less: imputed interest | (104,000) | |
Present value of lease liabilities - current | 1,098,942 | $ 1,130,244 |
Present value of lease liabilities - non-current | $ 1,026,351 | $ 1,683,323 |
Business Combinations and Div_3
Business Combinations and Divestitures (Details Narrative) - USD ($) | 12 Months Ended | |||
Nov. 01, 2023 | Jun. 01, 2023 | Jun. 01, 2022 | Dec. 31, 2023 | |
Business Acquisition [Line Items] | ||||
Identified intangible assets, useful lives | 8 years | |||
Gain on sale of business | $ 12,564,153 | |||
Divestitures gain, net of tax | 9,644,000 | |||
Asset Purchase Agreement | GSM Holdings | ||||
Business Acquisition [Line Items] | ||||
Asset acquisition agreement date | Nov. 01, 2023 | |||
Purchase price of the business | $ 19,800,000 | |||
Amount recieved from sale of asset | 18,300,000 | |||
Remaining purchase price under asset acquisition | 1,500,000 | |||
Divestitures gain, net of tax | $ 9,600,000 | |||
Percent of total net sales | 6% | |||
Other Income, Net | Asset Purchase Agreement | GSM Holdings | ||||
Business Acquisition [Line Items] | ||||
Gain on sale of business | $ 12,600,000 | |||
Live Safely Products, LLC | ||||
Business Acquisition [Line Items] | ||||
Purchase price | $ 11,000,000 | |||
Business acquisition, contingent liability | 1,500,000 | 750,000 | ||
Disburse to the seller payment | $ 750,000 | $ 750,000 | ||
Live Safely Products, LLC | Other Current Assets | ||||
Business Acquisition [Line Items] | ||||
Business acquisition, contingent liability | $ 750,000 | |||
Live Safely Products, LLC | Minimum | ||||
Business Acquisition [Line Items] | ||||
Identified intangible assets, useful lives | 5 years | |||
Live Safely Products, LLC | Maximum | ||||
Business Acquisition [Line Items] | ||||
Identified intangible assets, useful lives | 15 years |
Business Combinations and Div_4
Business Combinations and Divestitures - Schedule of Purchase Price Allocation to Assets Acquired (Details) - Live Safely Products, LLC $ in Thousands | Jun. 01, 2022 USD ($) |
Assets: | |
Accounts Receivable | $ 512 |
Inventory | 944 |
Prepaid Expense | 14 |
Property, plant and equipment | 877 |
Intangible Assets | |
Goodwill | 3,389 |
Total assets | 10,879 |
Backlog | |
Intangible Assets | |
Intangible assets | 23 |
Non-Compete | |
Intangible Assets | |
Intangible assets | 920 |
Tradename | |
Intangible Assets | |
Intangible assets | 1,990 |
Customer List | |
Intangible Assets | |
Intangible assets | $ 2,210 |