Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | May 06, 2017 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | BLONDER TONGUE LABORATORIES INC | |
Entity Central Index Key | 1,000,683 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Trading Symbol | BDR | |
Entity Common Stock, Shares Outstanding | 8,121,835 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash | $ 543 | $ 468 |
Accounts receivable, net of allowance for doubtful accounts of $180 | 2,354 | 2,273 |
Inventories | 5,098 | 5,064 |
Prepaid and other current assets | 436 | 275 |
Total current assets | 8,431 | 8,080 |
Inventories, net of current and reserves | 894 | 991 |
Property, plant and equipment, net of accumulated depreciation and amortization | 3,211 | 3,279 |
License agreements, net | 84 | 117 |
Intangible assets, net | 1,569 | 1,612 |
Goodwill | 493 | 493 |
Other assets | 416 | 428 |
Total Assets | 15,098 | 15,000 |
Current liabilities: | ||
Line of credit | 2,046 | 2,120 |
Current portion of long-term debt | 246 | 228 |
Accounts payable | 1,350 | 1,390 |
Derivative liability | 0 | 260 |
Accrued compensation | 295 | 320 |
Accrued benefit pension liability | 101 | 101 |
Other accrued expenses | 319 | 197 |
Total current liabilities | 4,357 | 4,616 |
Subordinated convertible debt with related parties | 570 | 376 |
Long-term debt, net of current portion | 3,273 | 3,335 |
Deferred income taxes | 139 | 139 |
Total liabilities | 8,339 | 8,466 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Preferred stock, $.001 par value; authorized 5,000 shares; No shares outstanding | 0 | 0 |
Common stock, $.001 par value; authorized 25,000 shares, 8,465 shares Issued, 8,122 shares outstanding | 8 | 8 |
Paid-in capital | 26,613 | 26,132 |
Accumulated deficit | (17,435) | (17,179) |
Accumulated other comprehensive loss | (1,278) | (1,278) |
Treasury stock, at cost, 342 shares | (1,149) | (1,149) |
Total stockholders’ equity | 6,759 | 6,534 |
Total Liabilities and Stockholders' Equity | $ 15,098 | $ 15,000 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS [Parenthetical] - USD ($) shares in Thousands, $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Allowance for doubtful accounts (in dollars) | $ 180 | $ 180 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 5,000 | 5,000 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 25,000 | 25,000 |
Common stock, shares issued | 8,465 | 8,465 |
Common Stock, Shares, Outstanding | 8,122 | 8,122 |
Treasury stock, shares | 342 | 342 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Net sales | $ 5,973 | $ 5,943 |
Cost of goods sold | 3,572 | 3,735 |
Gross profit | 2,401 | 2,208 |
Operating expenses: | ||
Selling | 679 | 652 |
General and administrative | 928 | 1,063 |
Research and development | 628 | 693 |
Total Operating expenses | 2,235 | 2,408 |
Earnings (loss) from operations | 166 | (200) |
Other expense: | ||
Other expense -net | (280) | (88) |
Change in derivative liability | (142) | 0 |
Loss before income taxes | (256) | (288) |
Provision for income taxes | 0 | 0 |
Net loss | $ (256) | $ (288) |
Basic and diluted net loss per share | $ (0.03) | $ (0.04) |
Basic and diluted weighted average shares outstanding | 8,122 | 6,765 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Cash Flows From Operating Activities: | ||
Net loss | $ (256) | $ (288) |
Adjustments to reconcile net loss to cash provided by (used in) operating activities: | ||
Stock compensation expense | 79 | 45 |
Depreciation | 86 | 120 |
Amortization | 101 | 144 |
(Reversal of) provision for inventory reserves | (48) | 48 |
Non cash interest expense | 194 | 6 |
Change in derivative liability | 142 | 0 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (81) | (719) |
Inventories | 111 | 109 |
Prepaid and other current assets | (161) | (161) |
Other assets | 12 | 0 |
Accounts payable, accrued compensation and other accrued expenses | 57 | 679 |
Net cash provided by (used in) operating activities | 236 | (17) |
Cash Flows From Investing Activities: | ||
Capital expenditures | (18) | (2) |
Acquisition of licenses | (25) | (4) |
Net cash used in investing activities | (43) | (6) |
Cash Flows From Financing Activities: | ||
Net (repayments) borrowings of line of credit | (74) | 190 |
Borrowings from related parties | 0 | 400 |
Repayments of debt | (44) | (63) |
Net cash (used in) provided by financing activities | (118) | 527 |
Net increase in cash | 75 | 504 |
Cash, beginning of period | 468 | 9 |
Cash, end of period | 543 | 513 |
Supplemental Cash Flow Information: | ||
Cash paid for interest | 57 | 76 |
Cash paid for income taxes | $ 0 | $ 0 |
Company and Basis of Consolidat
Company and Basis of Consolidation | 3 Months Ended |
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | Note 1 - Company and Basis of Consolidation Blonder Tongue Laboratories, Inc. (together with its consolidated subsidiaries, the “ Company The unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles ( “GAAP” SEC |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies [Text Block] | Note 2- Summary of Significant Accounting Policies The preparation of financial statements in conformity with GAAP 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 Company’s significant estimates include stock compensation and reserves related to accounts receivable, inventory and deferred tax assets. Actual results could differ from those estimates. The Company evaluates its convertible instruments to determine if those contracts or embedded components of those contracts qualify as derivative financial instruments to be separately accounted for in accordance with Topic 815 of the Financial Accounting Standards Board (“ FASB “ASC The Black-Scholes Model (which approximates the Binomial Lattice Model) was used to estimate the fair value of the conversion options that is classified as a derivative liability on the condensed consolidated balance sheets (See Note 6). The model includes subjective input assumptions that can materially affect the fair value estimates. The expected volatility is estimated based on the most recent historical period of time equal to the weighted average life of the conversion options. Conversion options are recorded as a discount to the host instrument and are amortized as interest expense over the life of the underlying instrument. The Company measures fair value of its financial assets on a three-tier value hierarchy, which prioritizes the inputs, used in the valuation methodologies in measuring fair value: ⋅ Level 1 Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. ⋅ Level 2 Other inputs that are directly or indirectly observable in the marketplace. ⋅ Level 3 Unobservable inputs which are supported by little or no market activity. The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The derivative liability is measured at fair value using quoted market prices and estimated volatility factors based on historical quoted market prices for the Company’s common stock, and is classified within Level 3 of the valuation hierarchy. (d) Earnings (loss) Per Share Earnings (loss) per share is calculated in accordance with ASC Topic 260 “Earnings Per Share,” which provides for the calculation of “basic” and “diluted” earnings (loss) per share. Basic earnings (loss) per share includes no dilution and is computed by dividing net earnings by the weighted average number of common shares outstanding for the period. Diluted earnings (loss) per share reflect, in periods in which they have a dilutive effect, the effect of potential issuances of common shares. The diluted share base excludes incremental shares related to stock options, restricted stock and convertible debt of 1,467 1,924 |
New Accounting Pronouncements
New Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2017 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | Note 3 New Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09 Revenue from Contracts with Customers (Topic 606). Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Inventory Disclosure [Text Block] | Note 4 Inventories Inventories net of reserves are summarized as follows: March 31, December 31, 2017 2016 Raw Materials $ 3,607 $ 4,001 Work in process 1,985 1,860 Finished Goods 3,221 4,143 8,813 10,004 Less current inventory (5,098) (5,064) 3,715 4,940 Less reserve for slow moving and excess inventory (2,821) (3,949) $ 894 $ 991 Inventories are stated at the lower of cost, determined by the first-in, first-out (“FIFO”) method, or net realizable value. The Company periodically analyzes anticipated product sales based on historical results, current backlog and marketing plans. Based on these analyses, the Company anticipates that certain products will not be sold during the next twelve months. Inventories that are not anticipated to be sold in the next twelve months, have been classified as non-current. Approximately 68% of the non-current inventories were comprised of finished goods at both March 31, 2017 and December 31, 2016. The Company has established a program to use interchangeable parts in its various product offerings and to modify certain of its finished goods to better match customer demands. In addition, the Company has instituted additional marketing programs to dispose of the slower moving inventories. The Company continually analyzes its slow-moving and excess inventories. Based on historical and projected sales volumes for finished goods, historical and projected usage of raw materials and anticipated selling prices, the Company establishes reserves. Inventory that is in excess of current and projected use is reduced by an allowance to a level that approximates its estimate of future demand. Products that are determined to be obsolete are written down to net realizable value. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | Note 5 Debt On December 28, 2016, the Company entered into a Loan and Security Agreement (the “ Sterling Agreement Sterling 8,500 Sterling Facility 5,000 Revolver 3,500 Term Loan Interest on the Revolver is variable, based upon the 30-day LIBOR rate (0.98% at March 31, 2017) 4.00 Interest on the Term Loan also is variable, based upon the 30-day LIBOR rate (0.98% at March 31, 2017) plus a margin of 4.50% 19 First Amendment 2,046 3,461 The Sterling Agreement contains customary covenants, including restrictions on the incurrence of additional indebtedness, encumbrances on the Company’s assets, the payment of cash dividends or similar distributions, the repayment of any subordinated indebtedness and the sale or other disposition of the Company’s assets. In addition, the Company must maintain (i) a fixed charge coverage ratio of not less than 1.1 to 1.0 for any fiscal month (determined as of the last day of each fiscal month on a rolling twelve-month basis, as calculated for the Company and its consolidated subsidiaries) and (ii) a leverage ratio of not more than 2.0 to 1.0 for any fiscal month |
Subordinated Convertible Debt w
Subordinated Convertible Debt with Related Parties | 3 Months Ended |
Mar. 31, 2017 | |
Subordinated Borrowings [Abstract] | |
Subordinated Borrowings Disclosure [Text Block] | Note 6 Subordinated Convertible Debt with Related Parties On March 28, 2016, the Company and its wholly-owned subsidiary, R.L. Drake Holdings, LLC ( “Drake” Agent Subordinated Lenders Subordinated Loan Agreement 750 Subordinated Loan Facility 50 PIK Interest 0.54 Subordinated Mortgage” In connection with the Subordinated Loan Agreement, the Company, Drake, the Subordinated Lenders and Sterling entered into a Subordination Agreement (the “ Subordination Agreement As of March 31, 2017, the Subordinated Lenders advanced $ 500 17 Derivatives and Hedging Price Protection Provision 260 First Sub-Debt Amendmen 402 177 6 0.65 0.54 104 2 1.30 0 |
Legal Proceedings
Legal Proceedings | 3 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Matters and Contingencies [Text Block] | Note 7 Legal Proceedings The Company is a party to certain proceedings incidental to the ordinary course of its business, none of which, in the opinion of management, is likely to have a material adverse effect on the Company’s business, financial condition, results of operations, or cash flows. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | Note 8 Subsequent Events The Company has evaluated subsequent events through the filing of its consolidated financial statements with the SEC. |
Summary of Significant Accoun14
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Use of Estimates, Policy [Policy Text Block] | (a) Use of Estimates The preparation of financial statements in conformity with GAAP 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 Company’s significant estimates include stock compensation and reserves related to accounts receivable, inventory and deferred tax assets. Actual results could differ from those estimates. |
Derivatives, Reporting of Derivative Activity [Policy Text Block] | (b) Derivative Financial Instruments The Company evaluates its convertible instruments to determine if those contracts or embedded components of those contracts qualify as derivative financial instruments to be separately accounted for in accordance with Topic 815 of the Financial Accounting Standards Board (“ FASB “ASC The Black-Scholes Model (which approximates the Binomial Lattice Model) was used to estimate the fair value of the conversion options that is classified as a derivative liability on the condensed consolidated balance sheets (See Note 6). The model includes subjective input assumptions that can materially affect the fair value estimates. The expected volatility is estimated based on the most recent historical period of time equal to the weighted average life of the conversion options. Conversion options are recorded as a discount to the host instrument and are amortized as interest expense over the life of the underlying instrument. |
Fair Value of Financial Instruments, Policy [Policy Text Block] | (c) Fair Value of Financial Instruments The Company measures fair value of its financial assets on a three-tier value hierarchy, which prioritizes the inputs, used in the valuation methodologies in measuring fair value: ⋅ Level 1 Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. ⋅ Level 2 Other inputs that are directly or indirectly observable in the marketplace. ⋅ Level 3 Unobservable inputs which are supported by little or no market activity. The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The derivative liability is measured at fair value using quoted market prices and estimated volatility factors based on historical quoted market prices for the Company’s common stock, and is classified within Level 3 of the valuation hierarchy. |
Earnings Per Share, Policy [Policy Text Block] | (d) Earnings (loss) Per Share Earnings (loss) per share is calculated in accordance with ASC Topic 260 “Earnings Per Share,” which provides for the calculation of “basic” and “diluted” earnings (loss) per share. Basic earnings (loss) per share includes no dilution and is computed by dividing net earnings by the weighted average number of common shares outstanding for the period. Diluted earnings (loss) per share reflect, in periods in which they have a dilutive effect, the effect of potential issuances of common shares. The diluted share base excludes incremental shares related to stock options, restricted stock and convertible debt of 1,467 1,924 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | Inventories net of reserves are summarized as follows: March 31, December 31, 2017 2016 Raw Materials $ 3,607 $ 4,001 Work in process 1,985 1,860 Finished Goods 3,221 4,143 8,813 10,004 Less current inventory (5,098) (5,064) 3,715 4,940 Less reserve for slow moving and excess inventory (2,821) (3,949) $ 894 $ 991 |
Summary of Significant Accoun16
Summary of Significant Accounting Policies (Details Textual) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Summary of Significant Accounting Policies [Line Items] | ||
Incremental Common Shares Attributable to Call Options and Warrants | 1,467 | 1,924 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Inventory [Line Items] | ||
Raw Materials | $ 3,607 | $ 4,001 |
Work in process | 1,985 | 1,860 |
Finished Goods | 3,221 | 4,143 |
Inventory, gross | 8,813 | 10,004 |
Less current inventory | (5,098) | (5,064) |
Inventory Value Before Reserves | 3,715 | 4,940 |
Less reserve for slow moving and excess inventory | (2,821) | (3,949) |
Inventories, net non-current | $ 894 | $ 991 |
Inventories (Details Textual)
Inventories (Details Textual) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Inventory [Line Items] | ||
Percentage Of Fifo Inventory Non Current For Finished Goods | 68.00% | 68.00% |
Inventory Related Text | Inventories are stated at the lower of cost, determined by the first-in, first-out (“FIFO”) method, or net realizable value. |
Debt (Details Textual)
Debt (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Dec. 31, 2016 | Dec. 28, 2016 | |
Debt Instrument [Line Items] | |||
Line of Credit, Current | $ 2,046 | $ 2,120 | |
Term Loan Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Interest Rate Description | plus a margin of 4.50% | ||
Sterling National Bank [Member] | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 8,500 | ||
Line of Credit Facility, Covenant Compliance | (i) a fixed charge coverage ratio of not less than 1.1 to 1.0 for any fiscal month (determined as of the last day of each fiscal month on a rolling twelve-month basis, as calculated for the Company and its consolidated subsidiaries) and (ii) a leverage ratio of not more than 2.0 to 1.0 for any fiscal month | ||
Sterling National Bank [Member] | Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | 5,000 | ||
Debt Instrument, Description of Variable Rate Basis | Interest on the Revolver is variable, based upon the 30-day LIBOR rate (0.98% at March 31, 2017) | ||
Debt Instrument, Basis Spread on Variable Rate | 4.00% | ||
Sterling National Bank [Member] | Term Loan Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 3,500 | ||
Line of Credit Facility, Periodic Payment, Principal | $ 19 | ||
Line of Credit, Current | 2,046 | ||
Long-term Debt, Gross | $ 3,461 | ||
Debt Instrument, Description of Variable Rate Basis | Interest on the Term Loan also is variable, based upon the 30-day LIBOR rate (0.98% at March 31, 2017) |
Subordinated Convertible Debt20
Subordinated Convertible Debt with Related Parties (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 28, 2016 | Mar. 31, 2017 | Dec. 31, 2016 | |
Subordinated Borrowing [Line Items] | |||||
Convertible Subordinated Debt, Noncurrent | $ 570 | $ 570 | $ 376 | ||
Derivative Liability | 402 | 402 | |||
Interest Expense, Debt | 177 | $ 6 | |||
Subordinated Loan Facility [Member] | |||||
Subordinated Borrowing [Line Items] | |||||
Convertible Subordinated Debt, Noncurrent | $ 500 | 500 | |||
Paid-in-Kind Interest | $ 17 | ||||
Derivative Liability | $ 260 | ||||
Share Price | $ 0.65 | $ 0.65 | |||
Debt Instrument, Convertible, Conversion Price | $ 0.54 | $ 0.54 | $ 0.54 | ||
Fair Value Assumptions, Expected Volatility Rate | 104.00% | ||||
Fair Value Assumptions, Risk Free Interest Rate | 1.30% | ||||
Fair Value Assumptions, Expected Dividend Rate | 0.00% | ||||
Fair Value Assumptions, Expected Term | 2 years | ||||
Line Of Credit Facility, Maximum Borrowing Capacity | $ 750 | ||||
Line Of Credit Temporary Over Advance Facility | $ 50 |