Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Jul. 31, 2018 | |
Document Information [Line Items] | ||
Entity Registrant Name | HICKOK INC | |
Entity Central Index Key | 47,307 | |
Trading Symbol | hicka | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Common Class B [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding (in shares) | 596,848 | |
Common Class A [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding (in shares) | 2,123,806 |
Consolidated Balance Sheet (Cur
Consolidated Balance Sheet (Current Period Unaudited) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
CURRENT ASSETS: | ||
Cash and Cash Equivalents | $ 2,663,566 | $ 2,444,110 |
Accounts receivable less allowance for doubtful accounts | 7,351,867 | 9,011,677 |
Costs and estimated earnings in excess of billing | 2,217,344 | 1,605,991 |
Inventories-less allowance for obsolete inventory | 1,980,496 | 3,903,481 |
Prepaid Expenses and other current assets | 398,477 | 265,456 |
Total Current Assets | 14,611,750 | 17,230,715 |
PROPERTY, PLANT AND EQUIPMENT: | ||
Land and Improvements | 228,872 | 235,179 |
Buildings and Leasehold Improvements | 1,418,444 | 2,239,763 |
Machinery and Equipment | 2,462,936 | 5,091,360 |
Total Property, Plant and Equipment | 4,110,252 | 7,566,302 |
Less: Accumulated Depreciation | 1,239,029 | 4,242,913 |
Property, Plant and Equipment, Net | 2,871,223 | 3,323,389 |
OTHER ASSETS: | ||
Goodwill | 2,255,912 | 2,255,912 |
Intangibles, net of accumulated amortization | 1,519,384 | 1,896,399 |
Deferred income taxes-less valuation allowance | 2,173,892 | 2,173,892 |
Other non-current assets | 3,250 | |
Total Non-Current Other Assets | 5,949,188 | 6,329,453 |
Total Assets | 23,432,161 | 26,883,557 |
CURRENT LIABILITIES: | ||
Convertible notes payable - related party | 200,000 | 200,000 |
Notes payable - related party | 432,910 | 352,727 |
Bank Debt - Current | 500,000 | 500,000 |
Leases payable | 16,944 | 55,735 |
Accounts payable | 2,462,941 | 2,112,695 |
Unearned revenue | 3,182,213 | 2,601,355 |
Accrued payroll and related expenses | 828,118 | 723,053 |
Accrued expenses | 1,296,444 | 1,340,465 |
Accrued income taxes | 227,595 | 108,576 |
Total Current Liabilities | 9,147,165 | 7,994,606 |
LONG-TERM LIABILITIES: | ||
Notes payable - related party | 3,428,586 | 3,651,765 |
Bank Debt | 1,074,235 | 4,732,550 |
Leases payable | 7,789 | 106,855 |
Total Long-Term Liabilities | 4,510,610 | 8,491,170 |
STOCKHOLDERS' EQUITY | ||
Preferred shares, no par value - 1,000,000 shares authorized, no shares issued and outstanding | ||
Contributed capital | 1,741,901 | 1,741,901 |
Treasury shares | (1,905,780) | (264,841) |
Retained earnings | 6,732,459 | 5,964,082 |
Total Stockholders' Equity | 9,774,386 | 10,397,781 |
Total Liabilities and Stockholders' Equity | 23,432,161 | 26,883,557 |
Common Class A [Member] | ||
STOCKHOLDERS' EQUITY | ||
Common stock | 2,495,534 | 2,246,367 |
Common Class B [Member] | ||
STOCKHOLDERS' EQUITY | ||
Common stock | $ 710,272 | $ 710,272 |
Consolidated Balance Sheet (Cu3
Consolidated Balance Sheet (Current Period Unaudited) (Parentheticals) - $ / shares $ / shares in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Preferred stock, par value (in dollars per share) | $ 0 | $ 0 |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common Class A [Member] | ||
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Common stock, shares issued (in shares) | 2,123,806 | 2,130,681 |
Common stock, shares outstanding (in shares) | 2,123,806 | 2,130,681 |
Treasury shares, issued (in shares) | 37,208 | 15,795 |
Common Class B [Member] | ||
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | 2,500,000 | 2,500,000 |
Common stock, shares issued (in shares) | 596,848 | 779,283 |
Common stock, shares outstanding (in shares) | 596,848 | 779,283 |
Treasury shares, issued (in shares) | 182,435 | 5,667 |
Consolidated Statement of Incom
Consolidated Statement of Income (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Total sales | $ 13,593,192 | $ 7,220,626 | $ 25,471,892 | $ 10,566,941 |
Cost of Sales | 10,106,614 | 4,191,480 | 18,966,873 | 6,160,281 |
Gross Profit | 3,486,578 | 3,029,146 | 6,505,019 | 4,406,660 |
Operating Expenses: | ||||
Product development costs | 97,389 | 179,840 | 220,418 | 397,156 |
Selling, general and administrative expenses | 1,572,244 | 1,540,381 | 3,824,571 | 2,434,683 |
Operating Income | 1,816,945 | 1,308,925 | 2,460,030 | 1,574,821 |
Other (Income) and Expenses: | ||||
Interest charges | 80,755 | 66,695 | 166,688 | 114,887 |
Loss (gain) on sale of operations | 1,160,574 | 1,160,574 | 0 | |
Other (income) expense, net | 49,450 | 263,334 | 108,266 | 259,771 |
Total Other (Income) and Expenses | 1,290,779 | 330,029 | 1,435,528 | 374,658 |
Income before Provision for Income Taxes | 526,166 | 978,896 | 1,024,502 | 1,200,163 |
Provision for Income Taxes | 131,541 | 37,373 | 256,125 | 45,500 |
Net Income | $ 394,625 | $ 941,523 | $ 768,377 | $ 1,154,663 |
Net Income Per Common Share - Basic (in dollars per share) | $ 0.14 | $ 0.33 | $ 0.27 | $ 0.40 |
Net Income Per Common Share - Diluted (in dollars per share) | $ 0.13 | $ 0.31 | $ 0.24 | $ 0.38 |
Weighted Average Shares of Common Stock Outstanding – Basic (in shares) | 2,721,832 | 2,880,719 | 2,880,070 | 2,879,115 |
Weighted Average Shares of Common Stock Outstanding - Diluted (in shares) | 3,076,076 | 3,072,400 | 3,236,590 | 3,043,619 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flow (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Cash Flows from Operating Activities | ||
Net Income | $ 768,377 | $ 1,154,663 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 654,930 | 282,656 |
Loss (gain) on sale of operations | 1,160,574 | 0 |
Loss (gain) on disposal of assets | 0 | 2,667 |
Non-cash share-based compensation expense | 249,167 | 129,832 |
Changes in assets and liabilities: | ||
Decrease (Increase) in accounts receivable | 1,023,256 | (2,880,898) |
Decrease (Increase) in inventories | (262,496) | (82,569) |
Decrease (Increase) in costs and estimated earnings in excess of billings | (611,353) | 873,956 |
Decrease (Increase) in prepaid expenses & other assets | (217,071) | (485,707) |
Increase (Decrease) in accounts payable | 717,836 | 968,195 |
Increase (Decrease) in accrued payroll and related expenses | 136,719 | 344,782 |
Increase (Decrease) in accrued expenses | (135,701) | 340,981 |
Increase (Decrease) in accrued income taxes | 119,019 | 69,744 |
Increase (Decrease) in unearned revenue | 580,858 | (365,887) |
Total adjustments | 3,415,738 | (802,248) |
Net Cash Provided by (Used in) Operating Activities | 4,184,115 | 352,415 |
Cash Flows from Investing Activities | ||
Capital expenditures | (133,385) | (159,677) |
Cash paid for acquisition | 0 | (10,250,000) |
Net Cash Provided by (Used in) Investing Activities | (133,385) | (10,409,677) |
Cash Flows from Financing Activities | ||
Payments on related party notes | (142,996) | (682,459) |
Payments on bank debt | (4,100,000) | (300,000) |
Borrowings on bank debt | 435,729 | 8,500,000 |
Payments on capital lease | (24,007) | (37,171) |
Net Cash Provided by (Used in) Financing Activities | (3,831,274) | 7,480,370 |
Net Increase (decrease) in cash and cash equivalents | 219,456 | (2,576,892) |
Cash and cash equivalents at beginning of year | 2,444,110 | 3,607,452 |
Cash and cash equivalents at end of year | 2,663,566 | 1,030,560 |
Supplemental disclosures of cash flow information | ||
Interest Paid | 232,991 | 109,174 |
Income Taxes Paid | 119,019 | 20,500 |
Non-cash proceeds received for Class A and Class B Common Shares in exchange for the sale of certain assets | $ 1,640,939 | $ 0 |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation | 6 Months Ended |
Jun. 30, 2018 | |
Notes to Financial Statements | |
Basis of Accounting [Text Block] | 1. The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles (GAAP) for interim financial information and with the instructions to Form 10 8 X. not three six June 30, 2018 not may December 31, 2018. 10 December 31, 2017. During the six June 30, 2018, no 2 Reclassifications Certain prior year amounts were reclassified to conform to the current year presentation, including transaction costs related to acquisitions that were reclassified from selling, general and administrative to other (income) expenses as these costs are not no |
Note 2 - Summary of Significant
Note 2 - Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2018 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | 2. The Company’s Summary of Significant Accounting Policies is provided with the consolidated financial statements and footnotes thereto included in the Company’s Transition Report on Form 10 three December 31, 2017. Recently Adopted Accounting Standards not In May 2017, 2017 09, 718 2017 09 January 1, 2018. not In August 2016, 2016 15, 230 eight December 15, 2017. January 1, 2018. not In March 2016, 2016 09 no October 1, 2017. not In May 2014, 2014 09, January 1, 2018. not Recently Issued Accounting Standards In January 2017, 2017 04, 350 2017 04 second not December 15, 2019. In June 2016, 2016 13, December 15, 2019 In February 2016, 2016 02 842 not January 1, 2019, |
Note 3 - Accounts Receivable
Note 3 - Accounts Receivable | 6 Months Ended |
Jun. 30, 2018 | |
Notes to Financial Statements | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | 3. The Company establishes an allowance for doubtful accounts based upon factors surrounding the credit risk of specific customers, historical trends and other information. The reserve for doubtful accounts was $6,418 $10,175 June 30, 2018 December 31, 2017, |
Note 4 - Inventory
Note 4 - Inventory | 6 Months Ended |
Jun. 30, 2018 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | 4. first first June 30 , 2018 December 31, 2017 Raw materials and component parts $ 1,170,772 $ 2,637,138 Work-in-process - 523,644 Finished products 954,491 1,200,204 Total Inventory $ 2,152,263 4,360,986 Less: inventory reserves 144,767 457,505 Net Inventory $ 1,980,496 $ 3,903,481 |
Note 5 - Goodwill and Other Int
Note 5 - Goodwill and Other Intangible Assets, Net | 6 Months Ended |
Jun. 30, 2018 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | 5. Intangible assets relate to the purchase of businesses on June 1, 2017 July 1, 2016. not one 15 June 30 , 2018 December 31, 2017 Customer List: Backlog $ 1,970,000 $ 1,970,000 Non-Compete Agreements 200,000 200,000 Trademarks 340,000 340,000 Other Intangibles 2,510,000 2,510,000 Less: Accumulated Amortization 990,616 613,601 Other Intangibles, Net $ 1,519,384 $ 1,896,399 Amortization of other intangibles assets was: $377,015 $120,904 six June 30, 2018 2017, |
Note 6 - Property, Plant and Eq
Note 6 - Property, Plant and Equipment, Net | 6 Months Ended |
Jun. 30, 2018 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | 6. Property, plant and equipment are recorded at cost and depreciated over their useful lives. Maintenance and repair costs are expenses as incurred. Property, plant and equipment are as follows: June 30 , 2018 December 31, 2017 Land $ 228,872 $ 235,179 Buildings and Improvements 1,418,444 2,239,763 Machinery & Equipment 2,462,936 5,091,360 Total Property, Plant & Equipment 4,110,252 7,566,302 Less: Accumulated Depreciation 1,239,029 4,242,913 Property Plant & Equipment, Net $ 2,871,223 $ 3,323,389 Depreciation expense was $271,960 $161,752 six June 30, 2018 2017, |
Note 7 - Bank Debt
Note 7 - Bank Debt | 6 Months Ended |
Jun. 30, 2018 | |
Notes to Financial Statements | |
Long-term Debt [Text Block] | 7. The Company entered into a Credit Agreement on June 1, 2017 $8,000,000, 80% 50% 50% $2,000,000, $41,667 July 1, 2017. The revolving facility under the Credit Agreement includes a $3 0.00% 2.00% June 1, 2020. 0.25% 2.25% June 1, 2021. 0.25% In connection with entering into the Credit Agreement in 2017, one $500,000. Bank debt balances consist of the following: June 3 0 , 2018 December 31, 2017 Term Debt $ 1,500,000 $ 1,750,000 Revolving Debt 109,965 3,524,235 Total Bank Debt 1,609,965 5,274,235 Less: Current Portion 500,000 500,000 Non-Current Bank Debt 1,109,965 4,774,235 Less: Unamortized Debt Costs 35,730 41,685 Net Non-Current Bank Debt $ 1,074,235 $ 4,732,550 |
Note 8 - Notes Payable
Note 8 - Notes Payable | 6 Months Ended |
Jun. 30, 2018 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | 8. Convertible Notes Payable On December 30, 2011, $467,000 $250,000 0.25%. There have been several amendments to the original agreement over the years for the purpose of extending the existing terms of the Convertible Loan. On December 29, 2017, No. 6 ● Continues to provide approximately $467,000 ● Continues to allow $250,000 0.34%; ● Extends the due date of the loan agreement from December 30, 2017 December 30, 2018. The outstanding balance on the Convertible Loan as of June 30, 2018, December 31, 2017 $200,000. As part of the Convertible Loan, the parties entered into a Warrant Agreement, dated December 30, 2012 ( 100,000 $2.50 December 30, 2018. Short-Term Financing June 3, 2016, July 1, 2016 $250,000 4.0% eighty $250,000. May 31, 2017. Notes Payable – Related Party Notes payable - related parties is a result of the acquisition of a business on July 1, 2016 June 3 0 , 2018 December 31, 2017 In connection with the acquisition, the Company entered into a promissory note on July 1, 2016 for a $2,000,000 loan due to First Francis Company, payable in quarterly installments of $60,911 beginning on October 31, 2016, including interest at 4%. The remaining balance of the note shall be payable in full on July 1, 2022. $ 1,577,734 $ 1,639,206 In connection with the acquisition, the Company entered into a promissory note on July 1, 2016 for a $2,768,662 loan due to First Francis Company, payable in quarterly installments of $84,321 beginning on October 31, 2016, including interest at 4%. The remaining balance of the note shall be payable in full on July 1, 2022. 2,283,762 2,365,286 Total notes payable – related party 3,861,496 4,004,492 Less current portion 432,910 352,727 Notes payable – related party non-current portion $ 3,428,586 $ 3,651,765 |
Note 9 - Earnings Per Common Sh
Note 9 - Earnings Per Common Share | 6 Months Ended |
Jun. 30, 2018 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 9. The following table sets forth the computation of basic and diluted earnings per share. Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Earnings Per Share - Basic Net Income $ 394,625 $ 941,523 $ 768,377 $ 1,154,663 Weighted average shares of common stock outstanding - Basic 2,721,832 2,880,719 2,880,070 2,879,115 Earnings Per Share - Basic $ 0.14 $ 0.33 $ 0.27 $ 0.40 Earnings Per Share - Diluted Weighted average shares of common stock outstanding - Basic 2,721,832 2,880,719 2,880,070 2,879,115 Warrants, Options and Convertible Notes 354,244 191,681 356,520 164,504 Weighted average shares of common stock -Diluted 3,076,076 3,072,400 3,236,590 3,043,619 Earnings Per Share - Diluted $ 0.13 $ 0.31 $ 0.24 $ 0.38 |
Note 10 - Acquisitions
Note 10 - Acquisitions | 6 Months Ended |
Jun. 30, 2018 | |
Notes to Financial Statements | |
Mergers, Acquisitions and Dispositions Disclosures [Text Block] | 10. The Company purchased certain assets and assumed certain liabilities of Air Enterprises Acquisition, LLC on June 1, 2017 $10,250,000. one Accounts Receivable $ 4,761,368 Inventory 594,503 Costs in excess of billings and estimated costs 3,980,824 Fixed Assets 2,112,120 Prepaid and Other Assets 53,110 Intangibles Assets 1,230,000 Goodwill 631,392 Total Assets Acquired $ 13,363,317 Accounts Payable $ 1,726,618 Billings in Excess of costs and earnings 594,545 Accrued Payroll and related expenses 325,950 Accrued Expense 424,671 Lease Payable 41,533 Total Liabilities Assumed $ 3,113,317 Net Assets Acquired $ 10,250,000 |
Note 11 - Dispositions
Note 11 - Dispositions | 6 Months Ended |
Jun. 30, 2018 | |
Notes to Financial Statements | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | 11. Effective June 1, 2018, Upon the closing of the Transaction, all of the issued and outstanding shares of capital stock of the Company then-owned, directly or indirectly, by Mr. Bauman or his affiliate, equaling approximately 21,413 176,768 $1.6 $2.7 $1.2 The Purchase Agreement contains customary indemnification obligations of each party with respect to breaches of their respective representations, warranties and covenants, and certain other specified matters, which are subject to certain exceptions, terms and limitations described further in the Purchase Agreement. The Purchase Agreement contains customary post-closing covenants pertaining to the transition of the Test and Measurement Segment from the Company to Buyer and establishes certain rights and obligations of the parties relating to intellectual property rights in certain technology developed by the Company, Supreme and Waekon Corporation. Specifically, Buyer has an option under the Purchase Agreement to further develop such technology, which option is exercisable in accordance with the terms and conditions set forth therein. Pursuant to the terms of the Purchase Agreement, the Company agreed to take commercially reasonable efforts to change its name to one not 180 180 180 |
Note 12 - Segment and Related I
Note 12 - Segment and Related Information | 6 Months Ended |
Jun. 30, 2018 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | 1 2 . SEGMENT AND RELATED INFORMATION The Company operates three 1 2 3 Commercial Air Handling: Test and Measurement: ( 1 Industrial Hose: Information by industry segment is set forth below: Three Months Ended Six Months Ended June 30 June 30 2018 2017 2018 2017 Sales Commercial Air Handling $ 10,884,324 $ 3,343,945 $ 20,000,261 $ 3,343,945 Test and Measurement 924,598 2,452,854 1,996,445 4,222,925 Industrial Hose 1,784,270 1,423,827 3,475,186 3,000,071 Total Sales $ 13,593,192 $ 7,220,626 $ 25,471,892 $ 10,566,941 Income Before Provision for Income Taxes Commercial Air Handling 1,765,374 607,471 2,630,579 607,471 Test and Measurement (96,172 ) 343,752 (225,121 ) 440,885 Industrial Hose 123,964 27,673 224,153 151,807 Loss on sale of business (1,160,574 ) - (1,160,574 ) - General Corporate Expenses (106,426 ) - (444,535 ) - Income Before Provision for Income Taxes $ 526,166 $ 978,896 $ 1,024,502 $ 1,200,163 ( 1 The Company completed the sale of certain assets comprising its Test and Measurement segment on June 1, 2018. 11, |
Note 13 - Subsequent Events
Note 13 - Subsequent Events | 6 Months Ended |
Jun. 30, 2018 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | 13. Effective July 1, 2018, July 5, 2018 $21 $12 four 4% no June 30, 2023 ( no not second September 30, 2018, first June 30, 2019. four 4 September 30, 2019 In connection with Transaction, on July 5, 2018, June 1, 2017 ( $8,000,000 $12,000,000; $6,000,000; June 2021 December 2022 $1,000,000 July 5, 2019, five In connection with the Transaction and the amendment to the Credit Agreement on July 5, 2018, July 1, 2016 $2,000,000, July 1, 2016 $2,768,662 4.0 6.25 $2,768,662 July 5, 2019 $648,000, $6.48 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Adopted Accounting Standards not In May 2017, 2017 09, 718 2017 09 January 1, 2018. not In August 2016, 2016 15, 230 eight December 15, 2017. January 1, 2018. not In March 2016, 2016 09 no October 1, 2017. not In May 2014, 2014 09, January 1, 2018. not Recently Issued Accounting Standards In January 2017, 2017 04, 350 2017 04 second not December 15, 2019. In June 2016, 2016 13, December 15, 2019 In February 2016, 2016 02 842 not January 1, 2019, |
Note 4 - Inventory (Tables)
Note 4 - Inventory (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | June 30 , 2018 December 31, 2017 Raw materials and component parts $ 1,170,772 $ 2,637,138 Work-in-process - 523,644 Finished products 954,491 1,200,204 Total Inventory $ 2,152,263 4,360,986 Less: inventory reserves 144,767 457,505 Net Inventory $ 1,980,496 $ 3,903,481 |
Note 5 - Goodwill and Other I21
Note 5 - Goodwill and Other Intangible Assets, Net (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Notes Tables | |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | June 30 , 2018 December 31, 2017 Customer List: Backlog $ 1,970,000 $ 1,970,000 Non-Compete Agreements 200,000 200,000 Trademarks 340,000 340,000 Other Intangibles 2,510,000 2,510,000 Less: Accumulated Amortization 990,616 613,601 Other Intangibles, Net $ 1,519,384 $ 1,896,399 |
Note 6 - Property, Plant and 22
Note 6 - Property, Plant and Equipment, Net (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | June 30 , 2018 December 31, 2017 Land $ 228,872 $ 235,179 Buildings and Improvements 1,418,444 2,239,763 Machinery & Equipment 2,462,936 5,091,360 Total Property, Plant & Equipment 4,110,252 7,566,302 Less: Accumulated Depreciation 1,239,029 4,242,913 Property Plant & Equipment, Net $ 2,871,223 $ 3,323,389 |
Note 7 - Bank Debt (Tables)
Note 7 - Bank Debt (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Notes Tables | |
Schedule of Debt [Table Text Block] | June 3 0 , 2018 December 31, 2017 Term Debt $ 1,500,000 $ 1,750,000 Revolving Debt 109,965 3,524,235 Total Bank Debt 1,609,965 5,274,235 Less: Current Portion 500,000 500,000 Non-Current Bank Debt 1,109,965 4,774,235 Less: Unamortized Debt Costs 35,730 41,685 Net Non-Current Bank Debt $ 1,074,235 $ 4,732,550 |
Note 8 - Notes Payable (Tables)
Note 8 - Notes Payable (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Notes Tables | |
Schedule of Related Party Transactions [Table Text Block] | June 3 0 , 2018 December 31, 2017 In connection with the acquisition, the Company entered into a promissory note on July 1, 2016 for a $2,000,000 loan due to First Francis Company, payable in quarterly installments of $60,911 beginning on October 31, 2016, including interest at 4%. The remaining balance of the note shall be payable in full on July 1, 2022. $ 1,577,734 $ 1,639,206 In connection with the acquisition, the Company entered into a promissory note on July 1, 2016 for a $2,768,662 loan due to First Francis Company, payable in quarterly installments of $84,321 beginning on October 31, 2016, including interest at 4%. The remaining balance of the note shall be payable in full on July 1, 2022. 2,283,762 2,365,286 Total notes payable – related party 3,861,496 4,004,492 Less current portion 432,910 352,727 Notes payable – related party non-current portion $ 3,428,586 $ 3,651,765 |
Note 9 - Earnings Per Common 25
Note 9 - Earnings Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Earnings Per Share - Basic Net Income $ 394,625 $ 941,523 $ 768,377 $ 1,154,663 Weighted average shares of common stock outstanding - Basic 2,721,832 2,880,719 2,880,070 2,879,115 Earnings Per Share - Basic $ 0.14 $ 0.33 $ 0.27 $ 0.40 Earnings Per Share - Diluted Weighted average shares of common stock outstanding - Basic 2,721,832 2,880,719 2,880,070 2,879,115 Warrants, Options and Convertible Notes 354,244 191,681 356,520 164,504 Weighted average shares of common stock -Diluted 3,076,076 3,072,400 3,236,590 3,043,619 Earnings Per Share - Diluted $ 0.13 $ 0.31 $ 0.24 $ 0.38 |
Note 10 - Acquisitions (Tables)
Note 10 - Acquisitions (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Notes Tables | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | Accounts Receivable $ 4,761,368 Inventory 594,503 Costs in excess of billings and estimated costs 3,980,824 Fixed Assets 2,112,120 Prepaid and Other Assets 53,110 Intangibles Assets 1,230,000 Goodwill 631,392 Total Assets Acquired $ 13,363,317 Accounts Payable $ 1,726,618 Billings in Excess of costs and earnings 594,545 Accrued Payroll and related expenses 325,950 Accrued Expense 424,671 Lease Payable 41,533 Total Liabilities Assumed $ 3,113,317 Net Assets Acquired $ 10,250,000 |
Note 12 - Segment and Related27
Note 12 - Segment and Related Information (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Three Months Ended Six Months Ended June 30 June 30 2018 2017 2018 2017 Sales Commercial Air Handling $ 10,884,324 $ 3,343,945 $ 20,000,261 $ 3,343,945 Test and Measurement 924,598 2,452,854 1,996,445 4,222,925 Industrial Hose 1,784,270 1,423,827 3,475,186 3,000,071 Total Sales $ 13,593,192 $ 7,220,626 $ 25,471,892 $ 10,566,941 Income Before Provision for Income Taxes Commercial Air Handling 1,765,374 607,471 2,630,579 607,471 Test and Measurement (96,172 ) 343,752 (225,121 ) 440,885 Industrial Hose 123,964 27,673 224,153 151,807 Loss on sale of business (1,160,574 ) - (1,160,574 ) - General Corporate Expenses (106,426 ) - (444,535 ) - Income Before Provision for Income Taxes $ 526,166 $ 978,896 $ 1,024,502 $ 1,200,163 |
Note 3 - Accounts Receivable (D
Note 3 - Accounts Receivable (Details Textual) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Allowance for Doubtful Accounts Receivable, Ending Balance | $ 6,418 | $ 10,175 |
Note 4 - Inventory - Inventory
Note 4 - Inventory - Inventory (Details) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Raw materials and component parts | $ 1,170,772 | $ 2,637,138 |
Work-in-process | 523,644 | |
Finished products | 954,491 | 1,200,204 |
Total Inventory | 2,152,263 | 4,360,986 |
Less: inventory reserves | 144,767 | 457,505 |
Net Inventory | $ 1,980,496 | $ 3,903,481 |
Note 5 - Goodwill and Other I30
Note 5 - Goodwill and Other Intangible Assets, Net (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | |
Mar. 31, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | |
Amortization of Intangible Assets, Total | $ 377,015 | $ 120,904 | |
Minimum [Member] | |||
Finite-Lived Intangible Asset, Useful Life | 1 year | ||
Maximum [Member] | |||
Finite-Lived Intangible Asset, Useful Life | 15 years |
Note 5 - Goodwill and Other I31
Note 5 - Goodwill and Other Intangible Assets, Net - Summary of Intangible Assets (Details) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Other intangibles, gross | $ 2,510,000 | $ 2,510,000 |
Less: Accumulated Amortization | 990,616 | 613,601 |
Other Intangibles, Net | 1,519,384 | 1,896,399 |
Customer Lists [Member] | ||
Other intangibles, gross | 1,970,000 | 1,970,000 |
Noncompete Agreements [Member] | ||
Other intangibles, gross | 200,000 | 200,000 |
Trademarks [Member] | ||
Other intangibles, gross | $ 340,000 | $ 340,000 |
Note 6 - Property, Plant and 32
Note 6 - Property, Plant and Equipment, Net (Details Textual) - USD ($) | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Depreciation, Total | $ 271,960 | $ 161,752 |
Note 6 - Property, Plant and 33
Note 6 - Property, Plant and Equipment, Net - Schedule of Property, Plant, and Equipment (Details) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Property Plant and Equipment, Gross | $ 4,110,252 | $ 7,566,302 |
Less: Accumulated Depreciation | 1,239,029 | 4,242,913 |
Property Plant & Equipment, Net | 2,871,223 | 3,323,389 |
Land [Member] | ||
Property Plant and Equipment, Gross | 228,872 | 235,179 |
Building and Building Improvements [Member] | ||
Property Plant and Equipment, Gross | 1,418,444 | 2,239,763 |
Machinery and Equipment [Member] | ||
Property Plant and Equipment, Gross | $ 2,462,936 | $ 5,091,360 |
Note 7 - Bank Debt (Details Tex
Note 7 - Bank Debt (Details Textual) | Jun. 01, 2017USD ($) |
Line of Credit [Member] | First Francis [Member] | |
Repayments of Notes Payable | $ 500,000 |
J P Morgan Chase Bank [Member] | Term Debt [Member] | |
Long-term Debt, Total | 2,000,000 |
Debt Instrument, Periodic Payment, Total | $ 41,667 |
Debt Instrument, Maturity Date | Jun. 1, 2021 |
J P Morgan Chase Bank [Member] | Term Debt [Member] | Prime Rate [Member] | |
Debt Instrument, Basis Spread on Variable Rate | 0.25% |
J P Morgan Chase Bank [Member] | Term Debt [Member] | London Interbank Offered Rate (LIBOR) [Member] | |
Debt Instrument, Basis Spread on Variable Rate | 2.25% |
J P Morgan Chase Bank [Member] | Revolving Credit Facility [Member] | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 8,000,000 |
Line of Credit Facility, Percent of Eligible Accounts | 80.00% |
Line of Credit Facility, Percent of Eligible Progress Billing Accounts | 50.00% |
Line of Credit Facility, Percent of Eligible Inventory | 50.00% |
Line of Credit Facility, Commitment Fee Percentage | 0.25% |
Line of Credit Facility, Expiration Date | Jun. 1, 2020 |
J P Morgan Chase Bank [Member] | Revolving Credit Facility [Member] | Prime Rate [Member] | |
Debt Instrument, Basis Spread on Variable Rate | 0.00% |
J P Morgan Chase Bank [Member] | Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | |
Debt Instrument, Basis Spread on Variable Rate | 2.00% |
J P Morgan Chase Bank [Member] | Letter of Credit [Member] | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 3,000,000 |
Note 7 - Bank Debt - Summary of
Note 7 - Bank Debt - Summary of Loan Balances (Details) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Total Bank Debt | $ 1,609,965 | $ 5,274,235 |
Less: Current Portion | 500,000 | 500,000 |
Non-Current Bank Debt | 1,109,965 | 4,774,235 |
Less: Unamortized Debt Costs | 35,730 | 41,685 |
Net Non-Current Bank Debt | 1,074,235 | 4,732,550 |
Term Debt [Member] | ||
Total Bank Debt | 1,500,000 | 1,750,000 |
Line of Credit [Member] | ||
Total Bank Debt | $ 109,965 | $ 3,524,235 |
Note 8 - Notes Payable (Details
Note 8 - Notes Payable (Details Textual) - USD ($) | Jun. 03, 2016 | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 29, 2017 | Dec. 30, 2012 | Dec. 30, 2011 |
Line of Credit Facility, Fair Value of Amount Outstanding | $ 200,000 | $ 200,000 | ||||
Roundball LLC [Member] | Amendment No. 5 [Member] | ||||||
Working Capital Funding | $ 467,000 | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 250,000 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 0.34% | |||||
Roundball LLC [Member] | Amendment No. 1 [Member] | Warrant to Purchase Class A Common Stock [Member] | ||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 100,000 | |||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 2.50 | |||||
First Francis [Member] | Revolving Credit Facility [Member] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 250,000 | |||||
Line of Credit Facility, Interest Rate During Period | 4.00% | |||||
Line of Credit Facility, Maximum Borrowing Capacity, Percentage of Accounts Receivable | 80.00% | |||||
Director [Member] | Roundball LLC [Member] | Convertible Notes Payable [Member] | ||||||
Working Capital Funding | $ 467,000 | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 250,000 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 0.25% |
Note 8 - Notes Payable - Notes
Note 8 - Notes Payable - Notes Due to Related Parties (Details) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Less current portion | $ 432,910 | $ 352,727 |
Notes payable – related party non-current portion | 3,428,586 | 3,651,765 |
First Francis [Member] | ||
Notes payable, related parties | 3,861,496 | 4,004,492 |
Less current portion | 432,910 | 352,727 |
Notes payable – related party non-current portion | 3,428,586 | 3,651,765 |
First Francis [Member] | Promissory Note 1 [Member] | ||
Notes payable, related parties | 1,577,734 | 1,639,206 |
First Francis [Member] | Promissory Note 2 [Member] | ||
Notes payable, related parties | $ 2,283,762 | $ 2,365,286 |
Note 8 - Notes Payable - Note38
Note 8 - Notes Payable - Notes Due to Related Parties (Details) (Parentheticals) - First Francis [Member] - USD ($) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | Jul. 01, 2016 | |
Promissory Note 1 [Member] | |||
Notes payable, face value | $ 2,000,000 | $ 2,000,000 | $ 2,000,000 |
Notes payable, quarterly payment | $ 60,911 | $ 60,911 | |
Notes payable, interest rate | 4.00% | 4.00% | 4.00% |
Notes payable, Maturity Date | Jul. 1, 2022 | Jul. 1, 2022 | |
Promissory Note 2 [Member] | |||
Notes payable, face value | $ 2,768,662 | $ 2,768,662 | $ 2,768,662 |
Notes payable, quarterly payment | $ 84,321 | $ 84,321 | |
Notes payable, interest rate | 4.00% | 4.00% | 4.00% |
Notes payable, Maturity Date | Jul. 1, 2022 | Jul. 1, 2022 |
Note 9 - Earnings Per Common 39
Note 9 - Earnings Per Common Share - Summary of Earnings Per Share Calculation (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Net Income | $ 394,625 | $ 941,523 | $ 768,377 | $ 1,154,663 |
Weighted average shares of common stock outstanding - Basic (in shares) | 2,721,832 | 2,880,719 | 2,880,070 | 2,879,115 |
Earnings Per Share - Basic (in dollars per share) | $ 0.14 | $ 0.33 | $ 0.27 | $ 0.40 |
Warrants, Options and Convertible Notes (in shares) | 354,244 | 191,681 | 356,520 | 164,504 |
Weighted average shares of common stock -Diluted (in shares) | 3,076,076 | 3,072,400 | 3,236,590 | 3,043,619 |
Earnings Per Share - Diluted (in dollars per share) | $ 0.13 | $ 0.31 | $ 0.24 | $ 0.38 |
Note 10 - Acquisitions (Details
Note 10 - Acquisitions (Details Textual) | Jun. 01, 2017USD ($) |
Air Enterprises [Member] | |
Number of States in which Entity Operates | 1 |
Air Enterprises [Member] | |
Business Combination, Consideration Transferred, Total | $ 10,250,000 |
Note 10 - Acquisitions - Summar
Note 10 - Acquisitions - Summary Assets Acquired and Liabilities Assumed (Details) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 01, 2017 |
Goodwill | $ 2,255,912 | $ 2,255,912 | |
Air Enterprises [Member] | |||
Accounts Receivable | $ 4,761,368 | ||
Inventory | 594,503 | ||
Costs in excess of billings and estimated costs | 3,980,824 | ||
Fixed Assets | 2,112,120 | ||
Prepaid and Other Assets | 53,110 | ||
Intangibles Assets | 1,230,000 | ||
Goodwill | 631,392 | ||
Total Assets Acquired | 13,363,317 | ||
Accounts Payable | 1,726,618 | ||
Billings in Excess of costs and earnings | 594,545 | ||
Accrued Payroll and related expenses | 325,950 | ||
Accrued Expense | 424,671 | ||
Lease Payable | 41,533 | ||
Total Liabilities Assumed | 3,113,317 | ||
Net Assets Acquired | $ 10,250,000 |
Note 11 - Dispositions (Details
Note 11 - Dispositions (Details Textual) - USD ($) | Jun. 01, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 |
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | $ (1,160,574) | $ (1,160,574) | $ 0 | ||
Certain Assets from Test and Measurement business segment Sold Under an Asset Purchase Agreement to Hickock Waekon, LLC [Member] | |||||
Disposal Group, Including Discontinued Operation, Consideration | $ 1,600,000 | ||||
Disposal Group, Excluding Discontinued Operation, Net Assets Sold | 2,700,000 | ||||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | $ (1,200,000) | ||||
Certain Assets from Test and Measurement business segment Sold Under an Asset Purchase Agreement to Hickock Waekon, LLC [Member] | Director and His Affiliate [Member] | Common Class A [Member] | |||||
Disposal Group, Excluding Discontinued Operation, Consideration, Shares | 21,413 | ||||
Certain Assets from Test and Measurement business segment Sold Under an Asset Purchase Agreement to Hickock Waekon, LLC [Member] | Director and His Affiliate [Member] | Common Class B [Member] | |||||
Disposal Group, Excluding Discontinued Operation, Consideration, Shares | 176,768 |
Note 12 - Segment and Related43
Note 12 - Segment and Related Information (Details Textual) | 6 Months Ended |
Jun. 30, 2018 | |
Number of Reportable Segments | 3 |
Note 12 - Segment and Related44
Note 12 - Segment and Related Information - Information by Industry Segment (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Sales | $ 13,593,192 | $ 7,220,626 | $ 25,471,892 | $ 10,566,941 |
Income Before Provision for Income Taxes | ||||
Income (loss) before provision for income taxes | 526,166 | 978,896 | 1,024,502 | 1,200,163 |
Operating Segments [Member] | Commercial Air Handling [Member] | ||||
Sales | 10,884,324 | 3,343,945 | 20,000,261 | 3,343,945 |
Income Before Provision for Income Taxes | ||||
Income (loss) before provision for income taxes | 1,765,374 | 607,471 | 2,630,579 | 607,471 |
Operating Segments [Member] | Test and Measurement [Member] | ||||
Sales | 924,598 | 2,452,854 | 1,996,445 | 4,222,925 |
Income Before Provision for Income Taxes | ||||
Income (loss) before provision for income taxes | (96,172) | 343,752 | (225,121) | 440,885 |
Operating Segments [Member] | Industrial Hose [Member] | ||||
Sales | 1,784,270 | 1,423,827 | 3,475,186 | 3,000,071 |
Income Before Provision for Income Taxes | ||||
Income (loss) before provision for income taxes | 123,964 | 27,673 | 224,153 | 151,807 |
Consolidation, Eliminations [Member] | ||||
Income Before Provision for Income Taxes | ||||
Income (loss) before provision for income taxes | (1,160,574) | (1,160,574) | ||
Corporate, Non-Segment [Member] | ||||
Income Before Provision for Income Taxes | ||||
Income (loss) before provision for income taxes | $ (106,426) | $ (444,535) |
Note 13 - Subsequent Events (De
Note 13 - Subsequent Events (Details Textual) - USD ($) | Jul. 05, 2019 | Jul. 05, 2018 | Jun. 01, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Jul. 01, 2016 |
Payments to Acquire Businesses, Gross | $ 0 | $ 10,250,000 | |||||
Promissory Note 1 [Member] | First Francis [Member] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.00% | 4.00% | 4.00% | ||||
Debt Instrument, Face Amount | $ 2,000,000 | $ 2,000,000 | $ 2,000,000 | ||||
Promissory Note 2 [Member] | First Francis [Member] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.00% | 4.00% | 4.00% | ||||
Debt Instrument, Face Amount | $ 2,768,662 | $ 2,768,662 | $ 2,768,662 | ||||
J P Morgan Chase Bank [Member] | Term Debt [Member] | |||||||
Long-term Debt, Total | $ 2,000,000 | ||||||
J P Morgan Chase Bank [Member] | Revolving Credit Facility [Member] | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 8,000,000 | ||||||
Line of Credit Facility, Expiration Date | Jun. 1, 2020 | ||||||
Credit Line for Capital Expenditures Converted to a Term Loan Upon Expiration Date of Credit Line [Member] | J P Morgan Chase Bank [Member] | Maximum [Member] | Scenario, Forecast [Member] | |||||||
Debt Instrument, Term | 5 years | ||||||
Subsequent Event [Member] | Promissory Note 2 [Member] | First Francis [Member] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.25% | ||||||
Subsequent Event [Member] | Promissory Note 2 [Member] | First Francis [Member] | Common Class B [Member] | |||||||
Debt Instrument, Convertible Option, Maximum Debt Convertible | $ 648,000 | ||||||
Debt Instrument, Convertible Option, Share Price | $ 6.48 | ||||||
Subsequent Event [Member] | J P Morgan Chase Bank [Member] | Term Debt [Member] | |||||||
Long-term Debt, Total | $ 6,000,000 | ||||||
Subsequent Event [Member] | J P Morgan Chase Bank [Member] | Revolving Credit Facility [Member] | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | 12,000,000 | ||||||
Subsequent Event [Member] | J P Morgan Chase Bank [Member] | Credit Line for Capital Expenditures [Member] | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,000,000 | ||||||
Line of Credit Facility, Expiration Date | Jul. 5, 2019 | ||||||
Subsequent Event [Member] | CAD Enterprises, Inc. [Member] | |||||||
Business Combination, Consideration Transferred, Total | $ 21,000,000 | ||||||
Payments to Acquire Businesses, Gross | $ 12,000,000 | ||||||
Subsequent Event [Member] | CAD Enterprises, Inc. [Member] | Seller Note [Member] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.00% |