Segment Information

6 Months Ended

Jun. 30, 2017

Segment Reporting [Abstract]

Segment Information

Note 4. Segment Information

We operate in two different segments: household products and skin and hair care products. Our products are sold nationally and internationally (primarily Canada), directly through our sales force and indirectly through independent brokers and manufacturer’s representatives, to mass merchandisers, drugstores, supermarkets, hardware stores, e-commerce retailers, and other retail outlets and to wholesale distributors. We have chosen to organize our business around these segments based on differences in the products sold.

Accounting policies for our segments are the same as those described in Note 1. We evaluate segment performance based on segment income or loss before income taxes.

The following provides information on our segments for the three and six months ended June 30:

	Three Months Ended June 30,
	2017						2016
	Household Products			Skin and Hair Care Products			Household Products			Skin and Hair Care Products
Net sales	$	1,330,700		$	8,543,100		$	1,444,200		$	5,037,800
Operating costs and expenses:
Cost of sales		691,600			4,915,200			783,800			2,983,100
Advertising expenses		102,200			36,500			589,500			259,300
Selling expenses		336,500			1,342,800			468,600			748,600
General and administrative expenses		330,700			692,600			385,500			875,600
Total operating costs and expenses		1,461,000			6,987,100			2,227,400			4,866,600
(Loss) income from operations		(130,300	)		1,556,000			(783,200	)		171,200
Other income		-			-			2,100			3,300
Interest expense		-			(33,200	)		(3,400	)		(6,300	)
(Loss) income before income taxes	$	(130,300	)	$	1,522,800		$	(784,500	)	$	168,200

	Six Months Ended June 30,
	2017						2016
	Household Products			Skin and Hair Care Products			Household Products			Skin and Hair Care Products
Net sales	$	2,780,300		$	17,536,100		$	3,036,900		$	11,301,000
Operating costs and expenses:
Cost of sales		1,349,100			9,879,900			1,458,500			6,165,500
Advertising expenses		316,300			105,000			878,800			456,100
Selling expenses		645,000			2,650,200			841,600			1,625,400
General and administrative expenses		679,100			1,424,500			808,000			1,406,200
Total operating costs and expenses		2,989,500			14,059,600			3,986,900			9,653,200
(Loss) income from operations		(209,200	)		3,476,500			(950,000	)		1,647,800
Other income		-			-			3,400			8,200
Interest expense		-			(75,100	)		(5,000	)		(12,100	)
(Loss) income before income taxes	$	(209,200	)	$	3,401,400		$	(951,600	)	$	1,643,900

The following is a reconciliation of segment information to consolidated information:

	Three Months Ended June 30,					Six Months Ended June 30,
	2017		2016			2017		2016
Net sales	$	9,873,800	$	6,482,000		$	20,316,400	$	14,337,900
Consolidated income (loss) before income taxes	$	1,392,500	$	(616,300	)	$	3,192,200	$	692,300

	June 30, 2017		December 31, 2016
Assets:
Household Products	$	2,218,500	$	1,850,000
Skin and Haircare Products		19,446,200		18,371,500
Corporate		939,100		1,611,800
Consolidated	$	22,603,800	$	21,833,300

Corporate assets noted above are comprised primarily of our deferred tax assets and property and equipment not directly associated with our manufacturing, warehousing, shipping and receiving activities.