OURPETS CO

CIK:0001094139|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Net revenue	$ 7,187,346	$ 6,905,160	$ 19,831,275	$ 19,625,770
Cost of goods sold	5,182,052	4,715,881	14,359,800	13,417,905
Gross profit on sales	2,005,294	2,189,279	5,471,475	6,207,865
Selling, general and administrative expenses	1,747,971	1,623,231	4,909,923	4,864,745
Income from operations	257,323	566,048	561,552	1,343,120
Other income/expense	(43,455)	(4,849)	(27,001)	9,395
Interest expense	34,119	30,003	91,473	74,762
Income before income taxes	266,659	540,894	497,080	1,258,963
Income tax expense (benefit)	53,527	107,987	(9,023)	196,061
Net income	$ 213,132	$ 432,907	$ 506,103	$ 1,062,902
Basic Net Income per common share	$ 0.01	$ 0.02	$ 0.03	$ 0.06
Diluted Net Income per common share	$ 0.01	$ 0.02	$ 0.02	$ 0.05
Weighted average number of common shares outstanding used to calculate basic earnings per share	19,820,566	19,526,135	19,811,835	18,543,256
Weighted average number of common and equivalent shares outstanding used to calculate diluted earnings per share	19,874,829	20,001,903	19,950,053	19,009,304

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 506,103	$ 1,062,902
Adjustments to reconcile net income to net cash provided by operating activities:
Unrealized gain on investments	(22,264)	(12,746)
(Gain) Loss on fixed assets	(2,900)	995
Depreciation expense	441,855	398,063
Amortization expense	44,458	45,202
Stock option expense	18,000	18,000
(Increase) decrease in assets:
Accounts receivable - trade	610,488	(7,868)
Inventories	(375,727)	(1,605,973)
Prepaid expenses	82,744	(204,734)
Deposits and other assets	900	72,624
Amortizable Intangible Assets	(30,485)	(61,998)
Increase (decrease) in liabilities:
Accounts payable - trade	(48,259)	194,971
Accrued expenses	(241,836)	(47,860)
Deferred tax liabilities	(110,023)	(16,003)
Net cash provided by (used in) in operating activities	873,054	(164,425)
CASH FLOWS FROM INVESTING ACTIVITIES
Sale of property and equipment	2,900	4,000
Purchase of Investments	(536,496)	(499,909)
Acquisition of property and equipment	(435,787)	(337,978)
Net cash used in investing activities	(969,383)	(833,887)
CASH FLOWS FROM FINANCING ACTIVITIES
Dividends paid on preferrred stock	0	(28,022)
Issuances of Common Stock	4,270	188,647
Principal payments on long-term debt	(430,185)	(183,309)
Net borrowing on bank line of credit	611,008	1,591,200
Net cash provided by financing activities	185,093	1,568,516
Net increase in cash	88,764	570,204
CASH AT BEGINNING OF PERIOD	522,170	127,979
CASH AT END OF PERIOD	610,934	698,183
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Interest paid	93,083	80,034
Income taxes paid	0	294,500
SUPPLEMENTAL DISCLOSURE OF NON CASH TRANSACTIONS
Non cash exercise of stock options/ warrants	6,720	81,178
Equipment obtained through capital lease	0	105,300
Conversion of Preferred to Common Shares	$ 0	$ 865,312

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Sep. 30, 2018	Dec. 31, 2017
CURRENT ASSETS
Cash and cash equivalents	$ 610,934	$ 522,170
Investments - Trading	1,552,671	993,911
Accounts receivable - trade, less allowance for doubtful accounts of $81,863 and $83,682	4,815,025	5,425,513
Inventories net of reserve	7,611,167	7,235,440
Prepaid expenses	917,935	1,000,679
Total current assets	15,507,732	15,177,713
PROPERTY AND EQUIPMENT
Computers and office equipment	1,055,694	1,049,019
Warehouse equipment	1,020,932	740,039
Leasehold improvements	323,551	317,057
Tooling	5,379,207	5,286,599
Construction in progress	195,691	155,410
Total	7,975,075	7,548,124
Less accumulated depreciation	5,983,957	5,550,938
Net property and equipment	1,991,118	1,997,186
OTHER ASSETS
Amortizable Intangible Assets, less amortization of $653,431 and $608,973	407,105	421,078
Intangible Assets	477,328	477,328
Goodwill	67,511	67,511
Deposits and other assets	25,000	25,900
Total other assets	976,944	991,817
Total assets	18,475,794	18,166,716
CURRENT LIABILITIES
Current maturities of long-term debt	553,770	561,723
Accounts payable - trade	743,863	792,122
Other accrued expenses	449,457	691,293
Total current liabilities	1,747,090	2,045,138
LONG-TERM LIABILITIES
Long-term debt - less current portion above	750,142	1,172,374
Revolving Line of Credit	2,388,915	1,777,907
Deferred Income Taxes	215,200	325,223
Total long term liabilities	3,354,257	3,275,504
Total liabilities	5,101,347	5,320,642
STOCKHOLDERS' EQUITY
COMMON STOCK No par value; 50,000,000 shares authorized, 19,820,566 and 19,805,210 shares issued and outstanding at September 30, 2018 and December 31, 2017 respectively	6,328,166	6,323,896
CONVERTIBLE PREFERRED STOCK No par value; convertible into Common Stock at the rate of 10 common shares for each preferred share; 4,825,000 shares authorized, 63,500 shares issued and outstanding at September 30, 2018 and December 31, 2017 respectively	579,850	579,850
PAID-IN CAPITAL	139,283	121,283
ACCUMULATED EARNINGS	6,327,148	5,821,045
Total stockholders' equity	13,374,447	12,846,074
Total liabilities and stockholders' equity	$ 18,475,794	$ 18,166,716