Annual report pursuant to Section 13 and 15(d)

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

v3.19.1
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
12 Months Ended
Dec. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Disaggregation of Net Sales

Disaggregation of Net Sales

 

The following table shows the Company’s disaggregated net sales by product type:

 

    Years End December 31,  
    2018     2017  
DC power systems   $ 22,528,268     $ 13,798,841  
Accessories     1,518,086       619,885  
Total net sales   $ 24,046,354     $ 14,418,726  

 

The following table shows the Company’s disaggregated net sales by customer type:

 

    Years End December 31,  
    2018     2017  
Telecom   $ 21,552,950     $ 12,714,164  
Government/Military     1,477,121       1,244,267  
Marine     177,909       278,254  
Other (backup DC power to various industries)     838,374       182,041  
Total net sales   $ 24,046,354     $ 14,418,726  
Schedule of components of inventory

As of December 31, 2018 and 2017, the components of inventories were as follows:

 

    Years End December 31,  
    2018     2017  
Raw materials   $ 6,060,448     $ 2,716,392  
Finished goods     2,741,321       3,100,661  
      8,801,769       5,817,053  
Less:  Inventory reserve     (330,000 )     (330,000 )
Total Inventories, net   $ 8,471,769     $ 5,487,053  
Schedule of reconciliation of the product warranty liability

The following is a tabular reconciliation of the product warranty liability, excluding the deferred revenue related to the Company’s warranty coverage:

 

    Years End December 31,  
Changes in estimates for warranties   2018     2017  
Balance at beginning of the period   $ 175,000     $ 175,000  
Payments     (244,454 )     (364,163 )
Provision for warranties     244,454       364,163  
                 
Balance at end of the period   $ 175,000     $ 175,000  

Schedule of estimated life

. Estimated useful lives of the principal classes of assets are as follows:

 

    Estimated life
Production tooling, jigs, fixtures   3-5 years
Shop equipment and machinery   5 years
Vehicles   3-5 years
Leasehold improvements   Shorter of the lease term or estimated useful life
Office equipment   5 years
Software   5 years
Schedule of anti-dilutive

The following potentially dilutive shares were excluded from the shares used to calculate diluted earnings per share as their inclusion would be anti-dilutive:

 

    December 31,  
    2018     2017  
Options     360,000       30,000  
Warrants     115,000       115,000  
Total     475,000       145,000