Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Mar. 15, 2018 | Jun. 30, 2017 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | BLONDER TONGUE LABORATORIES INC | ||
Entity Central Index Key | 1,000,683 | ||
Trading Symbol | BDR | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $ 2,542,581 | ||
Entity Common Stock, Shares Outstanding | 8,210,743 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash | $ 168 | $ 468 |
Accounts receivable, net of allowance for doubtful accounts of $180 as of December 31, 2017 and 2016, respectively | 2,621 | 2,273 |
Inventories | 5,496 | 5,064 |
Prepaid benefit costs | 314 | |
Prepaid and other current assets | 351 | 275 |
Total current assets | 8,950 | 8,080 |
Inventories, net non-current | 850 | 991 |
Property, plant and equipment, net | 3,106 | 3,279 |
License agreements, net | 29 | 117 |
Intangible assets, net | 1,441 | 1,612 |
Goodwill | 493 | 493 |
Other assets, net | 305 | 428 |
Total Assets | 15,174 | 15,000 |
Current liabilities: | ||
Line of credit | 2,487 | 2,120 |
Current portion of long-term debt | 249 | 228 |
Accounts payable | 700 | 1,390 |
Derivative liability | 260 | |
Accrued compensation | 307 | 320 |
Accrued benefit pension liability | 101 | |
Income taxes payable | 22 | 15 |
Other accrued expenses | 174 | 182 |
Total current liabilities | 3,939 | 4,616 |
Subordinated convertible debt with related parties | 624 | 376 |
Long-term debt, net of current portion | 3,094 | 3,335 |
Deferred income taxes | 104 | 139 |
Total liabilities | 7,761 | 8,466 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred stock, $.001 par value; authorized 5,000 shares; no shares outstanding as of December 31, 2017 and 2016, respectively | ||
Common stock, $.001 par value; authorized 25,000 shares, 8,465 shares Issued, 8,211 and 8,122 shares outstanding as of December 31, 2017 and 2016, respectively | 8 | 8 |
Paid-in capital | 26,920 | 26,132 |
Accumulated deficit | (17,821) | (17,179) |
Accumulated other comprehensive loss | (854) | (1,278) |
Treasury stock, at cost, 253 and 342 shares as of December 31, 2017 and 2016, respectively | (840) | (1,149) |
Total stockholders' equity | 7,413 | 6,534 |
Total liabilities and stockholders' equity | $ 15,174 | $ 15,000 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 180 | $ 180 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 5,000 | 5,000 |
Preferred stock, shares outstanding | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 25,000 | 25,000 |
Common stock, shares issued | 8,465 | 8,465 |
Common stock, shares, outstanding | 8,211 | 8,122 |
Treasury stock, shares | 253 | 342 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement [Abstract] | ||
Net sales | $ 23,283 | $ 22,506 |
Cost of goods sold | 14,347 | 14,149 |
Gross profit | 8,936 | 8,357 |
Operating expenses: | ||
Selling expenses | 2,492 | 2,459 |
General and administrative | 3,529 | 3,828 |
Research and development | 2,452 | 2,741 |
Total operating expenses | 8,473 | 9,028 |
Earnings (loss) from operations | 463 | (671) |
Other expense: | ||
Interest expense, net | (723) | (412) |
Change in derivative liability | (142) | (83) |
Total other expense | (865) | (495) |
Loss before income taxes | (402) | (1,166) |
Provision (benefit) for income taxes | (18) | 29 |
Net loss | $ (384) | $ (1,195) |
Net loss per share, basic and diluted | $ (0.05) | $ (0.16) |
Weighted average shares outstanding, basic and diluted | 8,189 | 7,413 |
Statements of Comprehensive Income (Loss) | ||
Net loss | $ (384) | $ (1,195) |
Changes in accumulated unrealized pension losses, net of taxes | 424 | (110) |
Comprehensive income (loss) | $ 40 | $ (1,305) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Treasury Stock |
Balance at Dec. 31, 2015 | $ 7,369 | $ 8 | $ 26,361 | $ (12,198) | $ (1,168) | $ (5,634) |
Balance, shares at Dec. 31, 2015 | 8,465 | |||||
Net loss | (1,195) | (1,195) | ||||
Recognized pension loss, net of taxes | (110) | (110) | ||||
Issuance of stock awards for treasury stock, for restricted stock and directors fees | 261 | (438) | (3,786) | 4,485 | ||
Stock-based Compensation | 209 | 209 | ||||
Balance at Dec. 31, 2016 | 6,534 | $ 8 | 26,132 | (17,179) | (1,278) | (1,149) |
Balance, shares at Dec. 31, 2016 | 8,465 | |||||
Net loss | (384) | (384) | ||||
Recognized pension loss, net of taxes | 424 | 424 | ||||
Issuance of stock awards for treasury stock, for restricted stock and directors fees | 51 | (258) | 309 | |||
Modification of subordinated convertible debt | 402 | 402 | ||||
Stock-based Compensation | 386 | 386 | ||||
Balance at Dec. 31, 2017 | $ 7,413 | $ 8 | $ 26,920 | $ (17,821) | $ (854) | $ (840) |
Balance, shares at Dec. 31, 2017 | 8,465 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Cash Flows From Operating Activities: | ||
Net loss | $ (384) | $ (1,195) |
Adjustments to reconcile net loss to cash (used in) provided by operating activities: | ||
Depreciation | 321 | 440 |
Amortization | 321 | 532 |
Stock-based compensation expense | 386 | 209 |
(Reversal of) provision for inventory reserves | (49) | 128 |
Non cash pension expense (income) | 9 | (63) |
Deferred income taxes | (35) | 10 |
Amortization of loan fees | 144 | |
Non cash interest expense | 248 | 53 |
Equity based directors' fees | 51 | 261 |
Change in derivative liability | 142 | 83 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (348) | 159 |
Inventories | (242) | 856 |
Prepaid and other current assets | (76) | 2 |
Other assets | (21) | (311) |
Income taxes payable | 7 | 9 |
Accounts payable, accrued expenses and accrued compensation | (711) | (402) |
Net cash (used in) provided by operating activities | (237) | 771 |
Cash Flows From Investing Activities: | ||
Capital expenditures | (138) | (37) |
Acquisition of licenses | (62) | (19) |
Net cash used in investing activities | (200) | (56) |
Cash Flows From Financing Activities: | ||
Net borrowings (repayment) on line of credit | 367 | (544) |
Repayments of debt | (230) | (3,612) |
Borrowings of debt | 3,500 | |
Borrowings from related parties | 400 | |
Net cash provided by (used in) financing activities | 137 | (256) |
Net (decrease) increase in cash | (300) | 459 |
Cash, beginning of year | 468 | 9 |
Cash, end of year | 168 | 468 |
Supplemental Cash Flow Information: | ||
Cash paid for interest | 300 | 375 |
Cash paid for income taxes | ||
Non cash investing and financing activities: | ||
Capital expenditures financed by notes payable | $ 10 | $ 61 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 1 - Summary of Significant Accounting Policies (a) The Company and Basis of Consolidation Blonder Tongue Laboratories, Inc. (together with its consolidated subsidiaries, the “ Company (b) Cash and Cash Equivalents The Company considers all highly liquid debt instruments with a maturity of less than three months at purchase to be cash equivalents. The Company did not have any cash equivalents at December 31, 2017 and 2016. Cash balances at financial institutions are insured by the Federal Deposit Insurance Corporation (“ FDIC (c) Accounts Receivable and Allowance for Doubtful accounts Accounts receivable are customer obligations due under normal trade terms. The Company sells its products primarily to distributors and private cable operators. The Company performs continuing credit evaluations of its customers’ financial condition and although the Company generally does not require collateral, letters of credit may be required from its customers in certain circumstances. Senior management reviews accounts receivable on a monthly basis to determine if any receivables will potentially be uncollectible. The Company includes any accounts receivable balances that are determined to be uncollectible, along with a general reserve based on historical experience, in its overall allowance for doubtful accounts. (d) Inventories Inventories are stated at the lower of cost, determined by the first-in, first-out (“ FIFO 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. The Company continually analyzes its slow-moving and excess inventories. Based on historical and projected sales volumes 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. (e) Property, Plant and Equipment Property, plant and equipment are stated at cost. The Company provides for depreciation generally on the straight-line method based upon estimated useful lives of 3 to 5 years for office equipment, 5 to 7 years for furniture and fixtures, 6 to 10 years for machinery and equipment, 10 to 15 years for building improvements and 40 years for the manufacturing and administrative office facility. (f) Goodwill and Other Intangible Assets The Company accounts for goodwill and intangible assets in accordance with Accounting Standards Codification (“ ASC ASC 350 Goodwill represents the excess of the purchase price over the fair value of net assets acquired in business combinations. Accounting principles generally accepted in the United States (“ GAAP The Company’s business includes one goodwill reporting unit. The Company annually reviews goodwill for possible impairment by comparing the fair value of the reporting unit to the carrying value of the assets. If the fair value exceeds the carrying value of the net asset, no goodwill impairment is deemed to exist. If the fair value does not exceed the carrying value, goodwill is tested for impairment and written down to its implied fair value if it is determined to be impaired. The Company performed its annual goodwill impairment test on December 31, 2017. Based upon its qualitative assessment, the Company determined that goodwill was not impaired . The Company considers its trade name to have an indefinite life and in accordance with ASC 350, will not be amortized and will be reviewed annually for impairment. The components of intangible assets that are carried at cost less accumulated amortization at December 31, 2017 are as follows: Description Cost Accumulated Amortization Net Amount Customer relationships $ 1,365 $ 808 $ 557 Proprietary technology 349 206 143 Non-compete agreements 248 248 - Amortized intangible assets 1,962 1,262 700 Non-Amortized Trade name 741 - 741 Total $ 2,703 $ 1,262 $ 1,441 The components of intangible assets that are carried at cost less accumulated amortization at December 31, 2016 are as follows: Description Cost Accumulated Amortization Net Amount Customer relationships $ 1,365 $ 671 $ 694 Proprietary technology 349 172 177 Non-compete agreements 248 248 - Amortized intangible assets 1,962 1,091 871 Non-Amortized Trade name 741 - 741 Total $ 2,703 $ 1,091 $ 1,612 Amortization (g) Long-Lived Assets The Company continually monitors events and changes in circumstances that could indicate carrying amounts of the long-lived assets, including intangible assets may not be recoverable. When such events or changes in circumstances occur, the Company assesses recoverability by determining whether the carrying value of such assets will be recovered through the undiscounted expected future cash flows. If the future undiscounted cash flows are less than the carrying amount of these assets, an impairment loss is recognized based on the excess of the carrying amount over the fair value of the assets. The Company did not recognize any intangible asset impairment charges in 2017 and 2016. (h) Embedded Derivative Liability The Company accounted for the derivative liability embedded in subordinated convertible debt with related parties in accordance with the provisions of ASC Topic 815 “Derivatives and Hedging”. Based upon the provisions of ASC Topic 815, an embedded derivative shall be separated from the host contract and accounted for as a derivative instrument if all of the following criteria are met: (i) the economic characteristics and risks of the embedded derivative are not clearly and closely related to the economic characteristics and risks of the host contract; (ii) the hybrid instrument is not measured at fair value under otherwise applicable GAAP with changes in fair value reported in earnings as they occur; and (iii) a separate instrument with the same terms as the embedded derivative would, pursuant to Section 815-10-15, be a derivative instrument subject to the requirements of this Subtopic. (i) Treasury Stock Treasury Stock is recorded at cost. Gains and losses on subsequent reissuance are recorded as increases or decreases to additional paid-in capital with losses in excess of previously recorded gains charged directly to retained earnings. During 2017 and 2016, 92 shares and 1,358 shares, respectively of common stock were reissued from treasury. (j) Significant Risks and Uncertainties 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 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. At December 31, 2017, approximately 28% of the Company’s employees were covered by a collective bargaining agreement, that is scheduled to expire in February 2019. The Company’s analog video headend products accounted for approximately 8% and 10% of the Company’s revenues in the years ended December 31, 2017 and 2016, respectively. The Company’s digital video headend products accounted for approximately 41% and 52% of the Company’s revenues in the years ended December 31, 2017 and 2016, respectively. Any substantial decrease in sales of analog video headend products without a related increase in digital video headend products could have a material adverse effect on the Company’s results of operations, financial condition and cash flows. (k) Royalty and License Expense The Company records royalty expense, as applicable, when the related products are sold. Royalty expense is recorded as a component of selling expenses. Royalty expense was $77 and $150 for the years ended December 31, 2017 and 2016, respectively. The Company amortizes license fees over the life of the relevant contract. The components of intangible assets consisting of license agreements that are carried at cost less accumulated amortization are as follows: December 31, 2017 2016 License agreements $ 5,985 $ 5,923 Accumulated amortization (5,956 ) (5,806 ) $ 29 $ 117 Amortization of license fees is computed utilizing the straight-line method over the estimated useful life of 1 to 2 years. Amortization expense for license fees was $150 and $361 in the years ended December 31, 2017 and 2016, respectively. Amortization expense for license fees is projected to be approximately $29 in the year ending December 31, 2018. (l) Foreign Exchange The Company uses the United States dollar as its functional and reporting currency since the majority of the Company’s revenues, expenses, assets and liabilities are in the United States and the focus of the Company’s operations is in that country. Assets and liabilities in foreign currencies are translated using the exchange rate at the balance sheet date. Revenues and expenses are translated at average rates of exchange during the year. Gains and losses from foreign currency transactions and translation for the years ended December 31, 2017 and 2016 and cumulative translation gains and losses as of December 31, 2017 and 2016 were not material. (m) Research and Development Research and development expenditures for the Company’s projects are expensed as incurred. (n) Revenue Recognition The Company records revenues when products are shipped and the amount of revenue is determinable and collection is reasonably assured. Customers do not have a right of return. The Company provides a three year warranty on most products. Warranty expense was de minimis (o) Stock-based compensation The Company computes stock-based compensation in accordance with authoritative guidance. The Company uses the Black-Scholes-Merton option pricing model to determine the fair value of its stock options. The Black-Scholes-Merton option-pricing model includes various assumptions, including the fair market value of the common stock of the Company, expected life of stock options, the expected volatility and the expected risk-free interest rate, among others. These assumptions reflect the Company’s best estimates, but they involve inherent uncertainties based on market conditions generally outside the control of the Company. Forfeitures are recorded when they occur. As a result, if other assumptions had been used, stock-based compensation cost, as determined in accordance with authoritative guidance, could have been materially impacted. Furthermore, if the Company uses different assumptions on future grants, stock-based compensation cost could be materially affected in future periods. (p) Income Taxes The Company accounts for income taxes under the provisions of the Financial Accounting Standards Board (“ FASB ASC Topic 740 The Company will classify as income tax expense any interest and penalties recognized in accordance with ASC Topic 740. The Company files income tax returns primarily in New Jersey, along with certain other jurisdictions. (q) Earnings (loss) Per Share Earnings (loss) per share are 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 and convertible debt of 1,256 and 1,156 and 1,670 and 1,026 for the year ended December 31, 2017 and 2016, respectively. These shares were excluded due to their antidilutive effect. (r) Other Comprehensive Income (loss) Comprehensive income (loss) is a measure of income which includes both net loss and other comprehensive income (loss). Other comprehensive income (loss) results from items deferred from recognition into the statement of operations and principally consists of unrecognized pension losses net of taxes. Accumulated other comprehensive loss is separately presented on the Company's consolidated balance sheet as part of stockholders’ equity. (s) Subsequent Events The Company evaluates events that have occurred after the balance sheet date but before the financial statements are issued. Based upon the evaluation, the Company did not identify any recognized or non-recognized subsequent events that would require adjustment to or disclosure in the consolidated financial statements. (t) Recent Accounting Pronouncements In May 2014, the FASB issued Accounting Standards Update (“ ASU Revenue from Contracts with Customers Revenue Recognition Principal versus Agent Considerations (Reporting Revenue Gross versus Net) Identifying Performance Obligations and Licensing Narrow-Scope Improvements and Practical Expedients, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers, Revenue Recognition (Topic 605), Revenue from Contracts with Customers (Topic 606), Leases (Topic 840), and Leases (Topic 842), which provides additional implementation guidance on the previously issued ASU 2014-09. In February 2016, the FASB ASU No. 2016-02, Leases (Topic 842) Leases (Topic 840) In August 2016, the FASB issued ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force) In January 2017, the FASB issued ASU 2017-04, Intangibles—Goodwill and Other (Topic 350) Simplifying the Test for Goodwill Impairment In May 2017, the FASB issued ASU 2017-09, Compensation-Stock Compensation (Topic 718) Scope of Modification Accounting (“ASU 2017-09”). This ASU clarifies which changes to the terms or conditions of a share-based payment award require an entry to apply modification accounting in Topic 718. The standard is effective for the Company on January 1, 2018, with early adoption permitted. The Company does not believe the adoption of this standard will have a material effect on the Company’s consolidated financial position and results of operations. In July 2017, the FASB issued a two-part ASU , In February 2018, the FASB issued ASU No. 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2017 | |
Inventories [Abstract] | |
Inventories | Note 2 – Inventories Inventories, net of reserves, are summarized as follows: December 31, 2017 2016 Raw materials $ 3,535 $ 4,001 Work in process 1,792 1,860 Finished goods 3,625 4,143 8,952 10,004 Less current inventory (5,496 ) (5,064 ) 3,456 4,940 Less reserve for slow moving and excess inventory (2,606 ) (3,949 ) $ 850 $ 991 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Note 3 – Property, Plant and Equipment Property, plant and equipment are summarized as follows: December 31, 2017 2016 Land $ 1,000 $ 1,000 Building 3,361 3,361 Machinery and equipment 10,530 10,461 Furniture and fixtures 437 432 Office equipment 2,439 2,377 Building improvements 1,433 1,421 19,200 19,052 Less: Accumulated depreciation and amortization (16,094 ) (15,773 ) $ 3,106 $ 3,279 Depreciation expense amounted to approximately $321 and $440 during the years ended December 31, 2017 and 2016, respectively. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2017 | |
Debt [Abstract] | |
Debt | Note 4 – Debt On December 28, 2016, the Company entered into a Loan and Security Agreement (the “ Sterling Agreement Sterling Sterling Facility Revolver Term Loan First Amendment A portion of the proceeds received by the Company were used to repay all amounts outstanding under the Company’s former Revolving Credit, Term Loan and Security Agreement with Santander Bank, N.A., which was terminated on December 28, 2016. 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 (determined as of the last day of each fiscal month, as calculated for the Company and its consolidated subsidiaries). By virtue of the First Amendment, compliance with the foregoing financial covenants was tested commencing as of January 31, 2017. At December 31, 2017, the Company was in compliance with all financial covenants. Long-term debt consists of the following: December 31, 2017 2016 Term loan $ 3,286 $ 3,500 Capital leases (Note 7) 57 63 3,343 3,563 Less: Current portion (249 ) (228 ) $ 3,094 $ 3,335 Annual maturities of long term debt at December 31, 2017 are $249 in 2018, $3,069 in 2019, $15 in 2020 and $10 in 2021. |
Subordinated Convertible Debt w
Subordinated Convertible Debt with Related Parties | 12 Months Ended |
Dec. 31, 2017 | |
Subordinated Convertible Debt with Related Parties [Abstract] | |
Subordinated Convertible Debt with Related Parties | Note 5 – 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 Subordinated Loan Facility PIK Interest Facility (the “ 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 December 31, 2017 and 2016, the Subordinated Lenders advanced $500 to the Company. In addition, $71 and $53 of PIK interest was accrued in the years ended December 31, 2017 and 2016, respectively. The Company evaluated the conversion option embedded in the Subordinated Loan Agreement issued in December 2016 in accordance with the provisions of ASC Topic 815, Derivatives and Hedging Price Protection Provision On March 21, 2017, the Company, Drake, and the Subordinated Lenders entered into a certain First Amendment to Amended and Restated Convertible Loan and Security Agreement (the “ First Sub-Debt Amendmen |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | Note 6 – Commitments and Contingencies Leases The Company leases certain real estate, factory, and office equipment under non-cancellable operating leases and equipment under capital leases expiring at various dates through July, 2022. Future minimum rental payments, required for all non-cancellable leases are as follows: Capital Operating 2018 $ 20 $ 133 2019 19 101 2020 17 74 2021 10 47 2022 - 2 Thereafter - - Total future minimum lease payments 66 $ 357 Less: amounts representing interest (9 ) Present value of minimum lease payments $ 57 Property, plant and equipment included capitalized leases of $86 and $66 at December 31, 2017 and 2016, less accumulated amortization of $23 and $6 at December 31, 2017 and 2016, respectively. Rent expense was $199 and $206 for the years ended December 31, 2017 and 2016, respectively. Litigation The Company from time to time is a party to certain proceedings incidental to the ordinary course of its business, none of which, in the current opinion of management, is likely to have a material adverse effect on the Company’s business, financial condition, results of operations or cash flows. |
Benefit Plans
Benefit Plans | 12 Months Ended |
Dec. 31, 2017 | |
Benefit Plans [Abstract] | |
Benefit Plans | Note 7 – Benefit Plans Defined Contribution Plan The Company has a defined contribution plan covering all full time employees qualified under Section 401(k) of the Internal Revenue Code, in which the Company matches a portion of an employee’s salary deferral. The Company’s contributions to this plan were $157 and $151, for the years ended December 31, 2017 and 2016, respectively. Defined Benefit Pension Plan Substantially all union employees who met certain requirements of age, length of service and hours worked per year were covered by a Company sponsored non-contributory defined benefit pension plan. Benefits paid to retirees are based upon age at retirement and years of credited service. On August 1, 2006, the plan was frozen. The defined benefit pension plan is closed to new entrants and existing participants do not accrue any additional benefits. The Company complies with minimum funding requirements. The total expense (credit) for this plan was $9 in 2017 and $(63) in 2016, respectively. The Company recognizes the funded status of its defined benefit pension plan measured as the difference between the fair value of the plan assets and the projected benefit obligation, in the Consolidated Balance Sheets. As of December 31, 2017 and 2016, the funded status related to the defined benefit pension plan was overfunded (underfunded) by $314 and $(101), respectively, and is recorded in current assets (current liabilities). |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 8 – Related Party Transactions On March 28, 2016, the Company’s current Chief Executive Officer and his wife, together with two of the Company’s independent directors, as lenders, and the Company and Drake, as borrowers, entered into the Subordinated Loan Agreement pursuant to which they agreed to provide the Company with the Subordinated Loan Facility in an amount up to $750, all as more fully described in Note 5, above. |
Concentration of Credit Risk
Concentration of Credit Risk | 12 Months Ended |
Dec. 31, 2017 | |
Concentration of Credit Risk [Abstract] | |
Concentration of Credit Risk | Note 9 – Concentration of Credit Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash deposits and trade accounts receivable. Credit risk with respect to trade accounts receivable was concentrated with five and three of the Company’s customers in 2017 and 2016, respectively. These customers accounted for approximately 74% and 41% of the Company’s outstanding trade accounts receivable at December 31, 2017 and 2016, respectively. The Company performs ongoing credit evaluations of its customers’ financial condition, uses credit insurance and requires collateral, such as letters of credit, to mitigate its credit risk. The deterioration of the financial condition of one or more of its major customers could adversely impact the Company’s operations. From time to time where the Company determines that circumstances warrant, such as when a customer agrees to commit to a large blanket purchase order, the Company extends payment terms beyond its standard payment terms. |
Stock Repurchase Program
Stock Repurchase Program | 12 Months Ended |
Dec. 31, 2017 | |
Stock Repurchase Program/Executive Stock Purchase Plan [Abstract] | |
Stock Repurchase Program | Note 10 – Stock Repurchase Program On July 24, 2002, the Company commenced a stock repurchase program to acquire up to $300 of its outstanding common stock (the “ 2002 Program 2007 Program |
Executive Stock Purchase Plan
Executive Stock Purchase Plan | 12 Months Ended |
Dec. 31, 2017 | |
Stock Repurchase Program/Executive Stock Purchase Plan [Abstract] | |
Executive Stock Purchase Plan | Note 11 – Executive Stock Purchase Plan On June 16, 2014, the Company’s Board of Directors adopted the Executive Stock Purchase Plan (the “ Plan |
Preferred Stock
Preferred Stock | 12 Months Ended |
Dec. 31, 2017 | |
Preferred Stock [Abstract] | |
Preferred Stock | Note 12 – Preferred Stock The Company is authorized to issue 5,000 shares of preferred stock with such designations, voting and other rights and preferences as may be determined from time to time by the Board of Directors. At December 31, 2017 and 2016, there were no outstanding preferred shares. |
Equity Incentive Plans
Equity Incentive Plans | 12 Months Ended |
Dec. 31, 2017 | |
Equity Incentive Plans [Abstract] | |
Equity Incentive Plans | Note 13 – Equity Incentive Plans In May 2016, the stockholders of the Company approved the 2016 Employee Equity Incentive Plan (the “ 2016 Employee Plan Committee In May 2005, the stockholders of the Company approved the 2005 Employee Equity Incentive Plan (the “ Employee Plan Committee In May 2016, the stockholders of the Company approved the 2016 Director Equity Incentive Plan (the “ 2016 Director Plan Board In May 2005, the stockholders of the Company approved the 2005 Director Equity Incentive Plan (the “ Director Plan Board The Company issues performance based stock options to employees. The Company estimates the fair value of performance stock option awards using the Black-Scholes-Merton option pricing model. Compensation expense for stock option awards is amortized on a straight-line basis over the awards’ vesting period. The expected term of the stock options represents the average period the stock options are expected to remain outstanding and is based on the expected term calculated using the approach prescribed by the Securities and Exchange Commission's Staff Accounting Bulletin No. 110 for “plain vanilla” options. The expected stock price volatility for the Company’s stock options was determined by using an average of the historical volatilities of the Company. The Company will continue to analyze the stock price volatility and expected term assumptions as more data for the Company’s common stock and exercise patterns become available. The risk-free interest rate assumption is based on the U.S. Treasury instruments whose term was consistent with the expected term of the Company’s stock options. The expected dividend assumption is based on the Company’s history and expectation of dividend payouts. The Company does not estimate forfeitures based on historical experience but rather reduces compensation expense when they occur. The fair value of employee stock options is being amortized on a straight-line basis over the requisite service periods of the respective awards. The fair value of employee stock options was estimated using the following weighted-average assumptions: Years ended December 31, 2017 2016 Fair value of the company’s common stock on date of grant $ 0.54 $ 0.62 Expected term 6.5 years 6.5 years Risk free interest rate 2.02 % 0.74 % Dividend yield 0.00 % 0.00 % Volatility 79.0 % 51.0 % Fair value of options granted $ 0.38 $ 0.01 The following table summarizes total stock-based compensation costs recognized for the years ended December 31, 2017 and 2016: Years ended December 31, 2017 2016 Cost of goods sold $ 34 $ 31 Selling expenses 33 30 General and administrative 274 113 Research and development 45 35 Total $ 386 $ 209 The following table summarizes information about stock-based awards outstanding under the various plans for the year ended December 31, 2017: Plan Stock Options Restricted Stock Total 2016 Employee Plan 213 - 213 2016 Director Plan 60 60 120 2005 Employee Plan 1,652 321 1,973 2005 Director Plan 368 - 368 2,293 381 2,674 Stock-based awards available for grant as of December 31, 2017 1,099 Stock options award activity for the year ended December 31, 2017 is as follows: Number of shares Weighted-Average Exercise Price Weighted-Average Contractual Term Aggregate Intrinsic Value Outstanding at January 1, 2017 1,817 $ 1.04 Options granted 657 0.55 Options exercised - - Options forfeited - - Options expired (181 ) 1.88 Outstanding at December 31, 2017 2,293 $ 0.84 6.6 $ 104 Exercisable at December 31, 2017 1,303 $ 1.08 4.8 $ 14 The aggregate intrinsic value of stock options is calculated as the difference between exercise price of the underlying stock options and the fair value of the Company’s common stock or $0.61 per share at December 31, 2017. Restricted stock award activity is as follows: Number of shares Weighted-Average Grant Date Fair Value per Share Unvested restricted stock awards outstanding at January 1, 2017 837 $ 0.63 Restricted stock awards granted 60 0.55 Restricted stock awards vested (477 ) 0.62 Restricted stock awards forfeited (39 ) 0.57 Unvested restricted stock awards outstanding at December 31, 2017 381 $ 0.64 The Company does not capitalize any cost associated with stock-based compensation. The Company issues new shares of common stock (or reduces the amount of treasury stock) upon exercise of stock options or release of restricted stock awards. In August 2012, the Company issued a warrant to purchase 100 shares of common stock of the Company to Adaptive Micro-Ware, Inc., an Indiana corporation (“ AMW |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Taxes [Abstract] | |
Income Taxes | Note 14 - Income Taxes On December 22, 2017, the 2017 Tax Cut and Jobs Act (the “ Act On December 22, 2017, the SEC Staff issued Staff Accounting Bulletin No. 118 (“ SAB 118 The following summarizes the provision (benefit) for income taxes for the years ended December 31, 2017 and 2016: 2017 2016 Current: Federal $ - $ - State and local 17 19 17 19 Deferred: Federal 4,086 (332 ) State and local (10 ) 1,004 4,076 672 Valuation allowance 4,111 (662 ) Provision for income taxes $ (18 ) $ 29 The provision (benefit) for income taxes differs from the amounts computed by applying the applicable Federal statutory rates due to the following for the years ended December 31, 2017 and 2016: 2017 2016 Provision (benefit) for Federal income taxes at the statutory rate $ (137 ) $ (396 ) State and local income taxes, net of Federal benefit 10 12 Permanent differences: Other 147 66 Deferred tax asset true-up - 1,007 Change in valuation allowance (4,111 ) (662 ) Rate differential 4,078 - Other (5 ) 2 Provision (benefit) for income taxes $ (18 ) $ 29 Significant components of the Company’s deferred tax assets and liabilities are as follows: December 31, 2017 2016 Deferred tax assets: Allowance for doubtful accounts $ 38 $ 62 Inventories 746 1,673 Intangible 105 154 Share based compensation 70 68 Net operating loss carry forward 5,874 9,032 Other 1 2 Total deferred tax assets 6,834 10,991 Deferred tax liabilities: Depreciation (44 ) (77 ) Intangible (4 ) (7 ) Pension liability (12 ) (22 ) Indefinite life intangibles (104 ) (139 ) Total deferred tax liabilities (164 ) (245 ) 6,670 10,746 Valuation allowance (6,774 ) (10,885 ) Net $ (104 ) $ (139 ) For the year ended December 31, 2017, the Company had approximately $27,728 and $15,027 of federal and state net operating loss carryovers (" NOL The change in the valuation allowance for the years ended December 31, 2017 and December 31, 2016 was $(4,111) and $(662), respectively. In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of the deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and taxing strategies in making this assessment. The deferred tax liability related to indefinite life intangible assets cannot be used in this determination. Therefore, the deferred tax liability related to indefinite life intangibles acquired in 2012 cannot be considered when determining the ultimate realization of deferred tax assets. The decision to record this valuation allowance was based on management evaluating all positive and negative evidence. The significant negative evidence includes a loss for the current year, a cumulative pre-tax loss for the three years ended December 31, 2017, the inability to carryback the net operating losses, limited future reversals of existing temporary differences and the limited availability of tax planning strategies. The Company expects to continue to provide a full valuation allowance until, or unless, it can sustain a level of profitability that demonstrates its ability to utilize these assets. The Company had no change in its liability for uncertain tax position during 2017 and no liabilities for uncertain tax positions as of December 31, 2017. ASC 740 discusses the classification of related interest and penalties on income taxes. The Company’s policy is to record interest and penalties incurred in connection with income taxes as a component of income tax expense. No interest or penalties were recorded during the years ended December 31, 2017 and 2016. The Company is required to file U.S. federal and state income tax returns. These returns are subject to audit by tax authorities beginning with the year ended December 31, 2014. |
Summary of Significant Accoun21
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Summary of Significant Accounting Policies [Abstract] | |
The Company and Basis of Consolidation | (a) The Company and Basis of Consolidation Blonder Tongue Laboratories, Inc. (together with its consolidated subsidiaries, the “ Company |
Cash and Cash Equivalents | (b) Cash and Cash Equivalents The Company considers all highly liquid debt instruments with a maturity of less than three months at purchase to be cash equivalents. The Company did not have any cash equivalents at December 31, 2017 and 2016. Cash balances at financial institutions are insured by the Federal Deposit Insurance Corporation (“ FDIC |
Accounts Receivable and Allowance for Doubtful accounts | (c) Accounts Receivable and Allowance for Doubtful accounts Accounts receivable are customer obligations due under normal trade terms. The Company sells its products primarily to distributors and private cable operators. The Company performs continuing credit evaluations of its customers’ financial condition and although the Company generally does not require collateral, letters of credit may be required from its customers in certain circumstances. Senior management reviews accounts receivable on a monthly basis to determine if any receivables will potentially be uncollectible. The Company includes any accounts receivable balances that are determined to be uncollectible, along with a general reserve based on historical experience, in its overall allowance for doubtful accounts. |
Inventories | (d) Inventories Inventories are stated at the lower of cost, determined by the first-in, first-out (“ FIFO 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. The Company continually analyzes its slow-moving and excess inventories. Based on historical and projected sales volumes 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. |
Property, Plant and Equipment | (e) Property, Plant and Equipment Property, plant and equipment are stated at cost. The Company provides for depreciation generally on the straight-line method based upon estimated useful lives of 3 to 5 years for office equipment, 5 to 7 years for furniture and fixtures, 6 to 10 years for machinery and equipment, 10 to 15 years for building improvements and 40 years for the manufacturing and administrative office facility. |
Goodwill and Other Intangible Assets | (f) Goodwill and Other Intangible Assets The Company accounts for goodwill and intangible assets in accordance with Accounting Standards Codification (“ ASC ASC 350 Goodwill represents the excess of the purchase price over the fair value of net assets acquired in business combinations. Accounting principles generally accepted in the United States (“ GAAP The Company’s business includes one goodwill reporting unit. The Company annually reviews goodwill for possible impairment by comparing the fair value of the reporting unit to the carrying value of the assets. If the fair value exceeds the carrying value of the net asset, no goodwill impairment is deemed to exist. If the fair value does not exceed the carrying value, goodwill is tested for impairment and written down to its implied fair value if it is determined to be impaired. The Company performed its annual goodwill impairment test on December 31, 2017. Based upon its qualitative assessment, the Company determined that goodwill was not impaired . The Company considers its trade name to have an indefinite life and in accordance with ASC 350, will not be amortized and will be reviewed annually for impairment. The components of intangible assets that are carried at cost less accumulated amortization at December 31, 2017 are as follows: Description Cost Accumulated Amortization Net Amount Customer relationships $ 1,365 $ 808 $ 557 Proprietary technology 349 206 143 Non-compete agreements 248 248 - Amortized intangible assets 1,962 1,262 700 Non-Amortized Trade name 741 - 741 Total $ 2,703 $ 1,262 $ 1,441 The components of intangible assets that are carried at cost less accumulated amortization at December 31, 2016 are as follows: Description Cost Accumulated Amortization Net Amount Customer relationships $ 1,365 $ 671 $ 694 Proprietary technology 349 172 177 Non-compete agreements 248 248 - Amortized intangible assets 1,962 1,091 871 Non-Amortized Trade name 741 - 741 Total $ 2,703 $ 1,091 $ 1,612 Amortization |
Long-Lived Assets | (g) Long-Lived Assets The Company continually monitors events and changes in circumstances that could indicate carrying amounts of the long-lived assets, including intangible assets may not be recoverable. When such events or changes in circumstances occur, the Company assesses recoverability by determining whether the carrying value of such assets will be recovered through the undiscounted expected future cash flows. If the future undiscounted cash flows are less than the carrying amount of these assets, an impairment loss is recognized based on the excess of the carrying amount over the fair value of the assets. The Company did not recognize any intangible asset impairment charges in 2017 and 2016. |
Embedded Derivative Liability | (h) Embedded Derivative Liability The Company accounted for the derivative liability embedded in subordinated convertible debt with related parties in accordance with the provisions of ASC Topic 815 “Derivatives and Hedging”. Based upon the provisions of ASC Topic 815, an embedded derivative shall be separated from the host contract and accounted for as a derivative instrument if all of the following criteria are met: (i) the economic characteristics and risks of the embedded derivative are not clearly and closely related to the economic characteristics and risks of the host contract; (ii) the hybrid instrument is not measured at fair value under otherwise applicable GAAP with changes in fair value reported in earnings as they occur; and (iii) a separate instrument with the same terms as the embedded derivative would, pursuant to Section 815-10-15, be a derivative instrument subject to the requirements of this Subtopic. |
Treasury Stock | (i) Treasury Stock Treasury Stock is recorded at cost. Gains and losses on subsequent reissuance are recorded as increases or decreases to additional paid-in capital with losses in excess of previously recorded gains charged directly to retained earnings. During 2017 and 2016, 92 shares and 1,358 shares, respectively of common stock were reissued from treasury. |
Significant Risks and Uncertainties | (j) Significant Risks and Uncertainties 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 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. At December 31, 2017, approximately 28% of the Company’s employees were covered by a collective bargaining agreement, that is scheduled to expire in February 2019. The Company’s analog video headend products accounted for approximately 8% and 10% of the Company’s revenues in the years ended December 31, 2017 and 2016, respectively. The Company’s digital video headend products accounted for approximately 41% and 52% of the Company’s revenues in the years ended December 31, 2017 and 2016, respectively. Any substantial decrease in sales of analog video headend products without a related increase in digital video headend products could have a material adverse effect on the Company’s results of operations, financial condition and cash flows. |
Royalty and License Expense | (k) Royalty and License Expense The Company records royalty expense, as applicable, when the related products are sold. Royalty expense is recorded as a component of selling expenses. Royalty expense was $77 and $150 for the years ended December 31, 2017 and 2016, respectively. The Company amortizes license fees over the life of the relevant contract. The components of intangible assets consisting of license agreements that are carried at cost less accumulated amortization are as follows: December 31, 2017 2016 License agreements $ 5,985 $ 5,923 Accumulated amortization (5,956 ) (5,806 ) $ 29 $ 117 Amortization of license fees is computed utilizing the straight-line method over the estimated useful life of 1 to 2 years. Amortization expense for license fees was $150 and $361 in the years ended December 31, 2017 and 2016, respectively. Amortization expense for license fees is projected to be approximately $29 in the year ending December 31, 2018. |
Foreign Exchange | (l) Foreign Exchange The Company uses the United States dollar as its functional and reporting currency since the majority of the Company’s revenues, expenses, assets and liabilities are in the United States and the focus of the Company’s operations is in that country. Assets and liabilities in foreign currencies are translated using the exchange rate at the balance sheet date. Revenues and expenses are translated at average rates of exchange during the year. Gains and losses from foreign currency transactions and translation for the years ended December 31, 2017 and 2016 and cumulative translation gains and losses as of December 31, 2017 and 2016 were not material. |
Research and Development | (m) Research and Development Research and development expenditures for the Company’s projects are expensed as incurred. |
Revenue Recognition | (n) Revenue Recognition The Company records revenues when products are shipped and the amount of revenue is determinable and collection is reasonably assured. Customers do not have a right of return. The Company provides a three year warranty on most products. Warranty expense was de minimis |
Stock-based compensation | (o) Stock-based compensation The Company computes stock-based compensation in accordance with authoritative guidance. The Company uses the Black-Scholes-Merton option pricing model to determine the fair value of its stock options. The Black-Scholes-Merton option-pricing model includes various assumptions, including the fair market value of the common stock of the Company, expected life of stock options, the expected volatility and the expected risk-free interest rate, among others. These assumptions reflect the Company’s best estimates, but they involve inherent uncertainties based on market conditions generally outside the control of the Company. Forfeitures are recorded when they occur. As a result, if other assumptions had been used, stock-based compensation cost, as determined in accordance with authoritative guidance, could have been materially impacted. Furthermore, if the Company uses different assumptions on future grants, stock-based compensation cost could be materially affected in future periods. |
Income Taxes | (p) Income Taxes The Company accounts for income taxes under the provisions of the Financial Accounting Standards Board (“ FASB ASC Topic 740 The Company will classify as income tax expense any interest and penalties recognized in accordance with ASC Topic 740. The Company files income tax returns primarily in New Jersey, along with certain other jurisdictions. |
Earnings (loss) Per Share | (q) Earnings (loss) Per Share Earnings (loss) per share are 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 and convertible debt of 1,256 and 1,156 and 1,670 and 1,026 for the year ended December 31, 2017 and 2016, respectively. These shares were excluded due to their antidilutive effect. |
Other Comprehensive Income (loss) | (r) Other Comprehensive Income (loss) Comprehensive income (loss) is a measure of income which includes both net loss and other comprehensive income (loss). Other comprehensive income (loss) results from items deferred from recognition into the statement of operations and principally consists of unrecognized pension losses net of taxes. Accumulated other comprehensive loss is separately presented on the Company's consolidated balance sheet as part of stockholders’ equity. |
Subsequent Events | (s) Subsequent Events The Company evaluates events that have occurred after the balance sheet date but before the financial statements are issued. Based upon the evaluation, the Company did not identify any recognized or non-recognized subsequent events that would require adjustment to or disclosure in the consolidated financial statements. |
Recent Accounting Pronouncements | (t) Recent Accounting Pronouncements In May 2014, the FASB issued Accounting Standards Update (“ ASU Revenue from Contracts with Customers Revenue Recognition Principal versus Agent Considerations (Reporting Revenue Gross versus Net) Identifying Performance Obligations and Licensing Narrow-Scope Improvements and Practical Expedients, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers, Revenue Recognition (Topic 605), Revenue from Contracts with Customers (Topic 606), Leases (Topic 840), and Leases (Topic 842), which provides additional implementation guidance on the previously issued ASU 2014-09. In February 2016, the FASB ASU No. 2016-02, Leases (Topic 842) Leases (Topic 840) In August 2016, the FASB issued ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force) In January 2017, the FASB issued ASU 2017-04, Intangibles—Goodwill and Other (Topic 350) Simplifying the Test for Goodwill Impairment In May 2017, the FASB issued ASU 2017-09, Compensation-Stock Compensation (Topic 718) Scope of Modification Accounting (“ASU 2017-09”). This ASU clarifies which changes to the terms or conditions of a share-based payment award require an entry to apply modification accounting in Topic 718. The standard is effective for the Company on January 1, 2018, with early adoption permitted. The Company does not believe the adoption of this standard will have a material effect on the Company’s consolidated financial position and results of operations. In July 2017, the FASB issued a two-part ASU , In February 2018, the FASB issued ASU No. 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income |
Summary of Significant Accoun22
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Summary of Significant Accounting Policies [Abstract] | |
Schedule of intangible assets that are carried at cost less accumulated amortization | Description Cost Accumulated Amortization Net Amount Customer relationships $ 1,365 $ 808 $ 557 Proprietary technology 349 206 143 Non-compete agreements 248 248 - Amortized intangible assets 1,962 1,262 700 Non-Amortized Trade name 741 - 741 Total $ 2,703 $ 1,262 $ 1,441 Description Cost Accumulated Amortization Net Amount Customer relationships $ 1,365 $ 671 $ 694 Proprietary technology 349 172 177 Non-compete agreements 248 248 - Amortized intangible assets 1,962 1,091 871 Non-Amortized Trade name 741 - 741 Total $ 2,703 $ 1,091 $ 1,612 |
Schedule of intangible assets consisting of license agreements that are carried at cost less accumulated amortization | December 31, 2017 2016 License agreements $ 5,985 $ 5,923 Accumulated amortization (5,956 ) (5,806 ) $ 29 $ 117 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Inventories [Abstract] | |
Summary of inventories, net of reserves | December 31, 2017 2016 Raw materials $ 3,535 $ 4,001 Work in process 1,792 1,860 Finished goods 3,625 4,143 8,952 10,004 Less current inventory (5,496 ) (5,064 ) 3,456 4,940 Less reserve for slow moving and excess inventory (2,606 ) (3,949 ) $ 850 $ 991 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Summary of property, plant and equipment | December 31, 2017 2016 Land $ 1,000 $ 1,000 Building 3,361 3,361 Machinery and equipment 10,530 10,461 Furniture and fixtures 437 432 Office equipment 2,439 2,377 Building improvements 1,433 1,421 19,200 19,052 Less: Accumulated depreciation and amortization (16,094 ) (15,773 ) $ 3,106 $ 3,279 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt [Abstract] | |
Schedule of long-term debt | December 31, 2017 2016 Term loan $ 3,286 $ 3,500 Capital leases (Note 7) 57 63 3,343 3,563 Less: Current portion (249 ) (228 ) $ 3,094 $ 3,335 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies [Abstract] | |
Schedule of future minimum rental payments | Capital Operating 2018 $ 20 $ 133 2019 19 101 2020 17 74 2021 10 47 2022 - 2 Thereafter - - Total future minimum lease payments 66 $ 357 Less: amounts representing interest (9 ) Present value of minimum lease payments $ 57 |
Equity Incentive Plans (Tables)
Equity Incentive Plans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity Incentive Plans [Abstract] | |
Schedule of fair value of employee stock options estimated using the weighted-average assumptions | Years ended December 31, 2017 2016 Fair value of the company’s common stock on date of grant $ 0.54 $ 0.62 Expected term 6.5 years 6.5 years Risk free interest rate 2.02 % 0.74 % Dividend yield 0.00 % 0.00 % Volatility 79.0 % 51.0 % Fair value of options granted $ 0.38 $ 0.01 |
Summary of total stock-based compensation costs recognized | Years ended December 31, 2017 2016 Cost of goods sold $ 34 $ 31 Selling expenses 33 30 General and administrative 274 113 Research and development 45 35 Total $ 386 $ 209 |
Schedule of stock-based awards outstanding | Plan Stock Options Restricted Stock Total 2016 Employee Plan 213 - 213 2016 Director Plan 60 60 120 2005 Employee Plan 1,652 321 1,973 2005 Director Plan 368 - 368 2,293 381 2,674 Stock-based awards available for grant as of December 31, 2017 1,099 |
Schedule of stock options award activity | Number of shares Weighted-Average Exercise Price Weighted-Average Contractual Term Aggregate Intrinsic Value Outstanding at January 1, 2017 1,817 $ 1.04 Options granted 657 0.55 Options exercised - - Options forfeited - - Options expired (181 ) 1.88 Outstanding at December 31, 2017 2,293 $ 0.84 6.6 $ 104 Exercisable at December 31, 2017 1,303 $ 1.08 4.8 $ 14 |
Schedule of restricted stock award activity | Number of shares Weighted-Average Grant Date Fair Value per Share Unvested restricted stock awards outstanding at January 1, 2017 837 $ 0.63 Restricted stock awards granted 60 0.55 Restricted stock awards vested (477 ) 0.62 Restricted stock awards forfeited (39 ) 0.57 Unvested restricted stock awards outstanding at December 31, 2017 381 $ 0.64 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Taxes [Abstract] | |
Summary of provision (benefit) for income taxes | 2017 2016 Current: Federal $ - $ - State and local 17 19 17 19 Deferred: Federal 4,086 (332 ) State and local (10 ) 1,004 4,076 672 Valuation allowance 4,111 (662 ) Provision for income taxes $ (18 ) $ 29 |
Schedule of provision (benefit) for income taxes federal statutory rates | 2017 2016 Provision (benefit) for Federal income taxes at the statutory rate $ (137 ) $ (396 ) State and local income taxes, net of Federal benefit 10 12 Permanent differences: Other 147 66 Deferred tax asset true-up - 1,007 Change in valuation allowance (4,111 ) (662 ) Rate differential 4,078 - Other (5 ) 2 Provision (benefit) for income taxes $ (18 ) $ 29 |
Schedule of components of deferred income tax assets | December 31, 2017 2016 Deferred tax assets: Allowance for doubtful accounts $ 38 $ 62 Inventories 746 1,673 Intangible 105 154 Share based compensation 70 68 Net operating loss carry forward 5,874 9,032 Other 1 2 Total deferred tax assets 6,834 10,991 Deferred tax liabilities: Depreciation (44 ) (77 ) Intangible (4 ) (7 ) Pension liability (12 ) (22 ) Indefinite life intangibles (104 ) (139 ) Total deferred tax liabilities (164 ) (245 ) 6,670 10,746 Valuation allowance (6,774 ) (10,885 ) Net $ (104 ) $ (139 ) |
Summary of Significant Accoun29
Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule of intangible assets that are carried at cost less accumulated amortization | ||
Cost | $ 2,703 | $ 2,703 |
Accumulated Amortization | 1,262 | 1,091 |
Net Amount | 1,441 | 1,612 |
Customer relationships [Member] | ||
Schedule of intangible assets that are carried at cost less accumulated amortization | ||
Cost | 1,365 | 1,365 |
Accumulated Amortization | 808 | 671 |
Net Amount | 557 | 694 |
Proprietary technology [Member] | ||
Schedule of intangible assets that are carried at cost less accumulated amortization | ||
Cost | 349 | 349 |
Accumulated Amortization | 206 | 172 |
Net Amount | 143 | 177 |
Non-compete agreements [Member] | ||
Schedule of intangible assets that are carried at cost less accumulated amortization | ||
Cost | 248 | 248 |
Accumulated Amortization | 248 | 248 |
Net Amount | ||
Non-Amortized Trade name [Member] | ||
Schedule of intangible assets that are carried at cost less accumulated amortization | ||
Cost | 741 | 741 |
Accumulated Amortization | ||
Net Amount | 741 | 741 |
Amortized intangible assets [Member] | ||
Schedule of intangible assets that are carried at cost less accumulated amortization | ||
Cost | 1,962 | 1,962 |
Accumulated Amortization | 1,262 | 1,091 |
Net Amount | $ 700 | $ 871 |
Summary of Significant Accoun30
Summary of Significant Accounting Policies (Details 1) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule of intangible assets consisting of license agreements that are carried at cost less accumulated amortization | ||
License agreements | $ 5,985 | $ 5,923 |
Accumulated amortization | (5,956) | (5,806) |
License agreements, Net | $ 29 | $ 117 |
Summary of Significant Accoun31
Summary of Significant Accounting Policies (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Summary of Significant Accounting Policies (Textual) | ||
Amortization expense for intangible assets | $ 171 | $ 171 |
Intangible asset amortization in 2018 | 171 | |
Intangible asset amortization in 2019 | 171 | |
Intangible asset amortization in 2020 | 171 | |
Intangible asset amortization in 2021 | 171 | |
Intangible asset amortization in 2022 | 14 | |
Intangible asset amortization thereafter | $ 2 | |
Percentage of employees were covered by collective bargaining arrangement | 28.00% | |
Royalty expense | $ 77 | 150 |
Amortization expense | $ 321 | $ 532 |
Stock reissued from treasury | 92,000 | 1,358,000 |
Stock options [Member] | ||
Summary of Significant Accounting Policies (Textual) | ||
Incremental shares | 1,256 | 1,156,000 |
Convertible debt [Member] | ||
Summary of Significant Accounting Policies (Textual) | ||
Incremental shares | 1,670,000 | 1,026,000 |
Customer relationships [Member] | ||
Summary of Significant Accounting Policies (Textual) | ||
Intangible assets estimated useful lives, amortization | 10 years. | |
Proprietary technology [Member] | ||
Summary of Significant Accounting Policies (Textual) | ||
Intangible assets estimated useful lives, amortization | 10 years. | |
Non-compete agreements [Member] | ||
Summary of Significant Accounting Policies (Textual) | ||
Intangible assets estimated useful lives, amortization | 3 years. | |
Analog Video Headend Products [Member] | ||
Summary of Significant Accounting Policies (Textual) | ||
Concentration risk, percentage | 8.00% | 10.00% |
Digital Video Headend Products [Member] | ||
Summary of Significant Accounting Policies (Textual) | ||
Concentration risk, percentage | 41.00% | 52.00% |
Office equipment [Member] | Minimum [Member] | ||
Summary of Significant Accounting Policies (Textual) | ||
Property, plant and equipment, estimated useful lives | 3 years | |
Office equipment [Member] | Maximum [Member] | ||
Summary of Significant Accounting Policies (Textual) | ||
Property, plant and equipment, estimated useful lives | 5 years | |
Furniture and fixtures [Member] | Minimum [Member] | ||
Summary of Significant Accounting Policies (Textual) | ||
Property, plant and equipment, estimated useful lives | 5 years | |
Furniture and fixtures [Member] | Maximum [Member] | ||
Summary of Significant Accounting Policies (Textual) | ||
Property, plant and equipment, estimated useful lives | 7 years | |
Machinery and equipment [Member] | Minimum [Member] | ||
Summary of Significant Accounting Policies (Textual) | ||
Property, plant and equipment, estimated useful lives | 6 years | |
Machinery and equipment [Member] | Maximum [Member] | ||
Summary of Significant Accounting Policies (Textual) | ||
Property, plant and equipment, estimated useful lives | 10 years | |
Building improvements [Member] | Minimum [Member] | ||
Summary of Significant Accounting Policies (Textual) | ||
Property, plant and equipment, estimated useful lives | 10 years | |
Building improvements [Member] | Maximum [Member] | ||
Summary of Significant Accounting Policies (Textual) | ||
Property, plant and equipment, estimated useful lives | 15 years | |
Manufacturing and administrative office facility [Member] | ||
Summary of Significant Accounting Policies (Textual) | ||
Property, plant and equipment, estimated useful lives | 40 years | |
License [Member] | ||
Summary of Significant Accounting Policies (Textual) | ||
Intangible asset amortization in 2018 | $ 29 | |
Intangible asset amortization in 2019 | 29 | |
Amortization expense | $ 150 | $ 361 |
License [Member] | Minimum [Member] | ||
Summary of Significant Accounting Policies (Textual) | ||
Amortization of license fees, estimated useful life | 1 year | |
License [Member] | Maximum [Member] | ||
Summary of Significant Accounting Policies (Textual) | ||
Amortization of license fees, estimated useful life | 2 years |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Summary of inventories, net of reserves | ||
Raw materials | $ 3,535 | $ 4,001 |
Work in process | 1,792 | 1,860 |
Finished goods | 3,625 | 4,143 |
Inventories, gross | 8,952 | 10,004 |
Less current inventory | (5,496) | (5,064) |
Inventory value before reserves | 3,456 | 4,940 |
Less reserve for slow moving and excess inventory | (2,606) | (3,949) |
Inventories, net | $ 850 | $ 991 |
Property, Plant and Equipment33
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Summary of property, plant and equipment | ||
Land | $ 1,000 | $ 1,000 |
Building | 3,361 | 3,361 |
Machinery and equipment | 10,530 | 10,461 |
Furniture and fixtures | 437 | 432 |
Office equipment | 2,439 | 2,377 |
Building improvements | 1,433 | 1,421 |
Property, plant and equipment, Gross | 19,200 | 19,052 |
Less: Accumulated depreciation and amortization | (16,094) | (15,773) |
Property, plant and equipment, Net | $ 3,106 | $ 3,279 |
Property, Plant and Equipment34
Property, Plant and Equipment (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment (Textual) | ||
Depreciation expense | $ 321 | $ 440 |
Debt (Details)
Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Debt [Abstract] | ||
Term loan | $ 3,286 | $ 3,500 |
Capital leases (Note 7) | 57 | 63 |
Total | 3,343 | 3,563 |
Less: Current portion | (249) | (228) |
Long-term debt | $ 3,094 | $ 3,335 |
Debt (Details Textual)
Debt (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 28, 2016 | |
Debt (Textual) | |||
Outstanding balances under revolver | $ 2,487 | $ 2,120 | |
Annual maturities of long term debt in 2018 | 249 | ||
Annual maturities of long term debt in 2019 | 3,069 | ||
Annual maturities of long term debt in 2020 | 15 | ||
Annual maturities of long term debt in 2021 | $ 10 | ||
Sterling [Member] | |||
Debt (Textual) | |||
Aggregate amount of credit facility | $ 8,500 | ||
Subordinated indebtedness, description | (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 facility, maturity date | Dec. 31, 2019 | ||
Sterling [Member] | Revolver [Member] | |||
Debt (Textual) | |||
Aggregate amount of credit facility | 5,000 | ||
Interest on revolver - margin | 4.00% | ||
Variable rate basis, description | Interest on the Revolver is variable, based upon the 30-day LIBOR rate (1.56% at December 31, 2017) plus a margin of 4.00%. | ||
Sterling [Member] | Term Loan [Member] | |||
Debt (Textual) | |||
Aggregate amount of credit facility | $ 3,500 | ||
Term loan amortize rate | $ 19 | ||
Variable rate basis, description | Interest on the Term Loan also is variable, based upon the 30-day LIBOR rate (1.56% at December 31, 2017) plus a margin of 4.50%. |
Subordinated Convertible Debt37
Subordinated Convertible Debt with Related Parties (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | |
Mar. 28, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Subordinated Convertible Debt with Related Parties (Textual) | |||
Subordinated lenders advanced amount | $ 624 | $ 376 | |
Incurred interest | 248 | 53 | |
Change in derivative liability (expense) | (142) | (83) | |
Interest related to loans | 9 | (63) | |
Derivative liability | 260 | ||
Subordinated Loan Facility [Member] | |||
Subordinated Convertible Debt with Related Parties (Textual) | |||
Subordinated lenders advanced amount | 500 | 500 | |
PIK interest accrued | $ 71 | $ 53 | |
Stock price | $ 0.65 | ||
Conversion price | $ 0.54 | $ 0.54 | |
Volatility | 104.00% | ||
Risk free rate | 1.30% | ||
Dividend yield | 0.00% | ||
Expected term | 2 years | ||
Term loan facility | $ 750 | ||
Advances in amounts | $ 50 | ||
Subordinated loan facility, interest accrues | 12.00% | ||
Derivative liability | $ 402 |
Commitments and Contingencies38
Commitments and Contingencies (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Commitments and Contingencies [Abstract] | |
2018-Capital | $ 20 |
2019-Capital | 19 |
2020-Capital | 17 |
2021-Capital | 10 |
2022-Capital | |
Thereafter-Capital | |
Total future minimum lease payments | 66 |
Less: amounts representing interest | (9) |
Present value of minimum lease payments | 57 |
2018-Operating | 133 |
2019-Operating | 101 |
2020-Operating | 74 |
2021-Operating | 47 |
2022-Operating | 2 |
Thereafter-Operating | |
Total future minimum lease payments | $ 357 |
Commitments and Contingencies39
Commitments and Contingencies (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Commitments and Contingencies (Textual) | ||
Capital leased assets, gross | $ 86 | $ 66 |
Accumulated amortization | 23 | 6 |
Operating leases, rent expense | $ 199 | $ 206 |
Lease expiration date | Jul. 31, 2022 |
Benefit Plans (Details)
Benefit Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Benefit Plans (Textual) | ||
Contributions plan amount | $ 157 | $ 151 |
Total expense | 9 | (63) |
Defined benefit pension plan was overfunded | $ 314 | $ (101) |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Mar. 28, 2016 | |
Related Party Transactions (Textual) | |||
Legal fees | $ 358 | $ 532 | |
Accounts payable | $ 25 | $ 40 | |
Subordinated Loan Facility [Member] | |||
Related Party Transactions (Textual) | |||
Subordinated loan facility amount | $ 750 |
Concentration of Credit Risk (D
Concentration of Credit Risk (Details) - Customers | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Sales [Member] | United States [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 7.00% | 3.00% |
Sales [Member] | Customer One [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 34.00% | 17.00% |
Number of customers | 1 | 1 |
Sales [Member] | Customer Two [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 13.00% | 15.00% |
Number of customers | 1 | 1 |
Accounts receivable [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 74.00% | 41.00% |
Number of customers | 5 | 3 |
Accounts receivable [Member] | Customer One [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 26.00% | 19.00% |
Number of customers | 1 | 1 |
Accounts receivable [Member] | Customer Two [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 19.00% | 12.00% |
Number of customers | 2 | 1 |
Accounts receivable [Member] | Customer Three [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 10.00% | |
Number of customers | 1 | |
Accounts receivable [Member] | Customer Five [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 10.00% | |
Number of customers | 1 |
Stock Repurchase Program (Detai
Stock Repurchase Program (Details) - Common Stock [Member] - USD ($) shares in Thousands, $ in Thousands | Dec. 31, 2017 | Feb. 13, 2007 | Jul. 24, 2002 |
2002 Program [Member] | |||
Equity, Class of Treasury Stock [Line Items] | |||
Value of outstanding common stock to be repurchased | $ 72 | $ 300 | |
Outstanding common stock to be repurchased | 100 | ||
2007 Program [Member] | |||
Equity, Class of Treasury Stock [Line Items] | |||
Outstanding common stock to be repurchased | 100 |
Executive Stock Purchase Plan (
Executive Stock Purchase Plan (Details) - shares shares in Thousands | Dec. 31, 2017 | Jun. 16, 2014 |
Executive Stock Purchase Plan [Member] | ||
Equity, Class of Treasury Stock [Line Items] | ||
Number of shares repurchase | 13 | 250 |
Preferred Stock (Details)
Preferred Stock (Details) - shares shares in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Preferred Stock [Abstract] | ||
Preferred stock, shares authorized | 5,000 | 5,000 |
Preferred stock, shares outstanding |
Equity Incentive Plans (Details
Equity Incentive Plans (Details) - Employee stock options [Member] - $ / shares | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair value of the company's common stock on date of grant | $ 0.54 | $ 0.62 |
Fair value of options granted | $ 0.38 | $ 0.01 |
Equity Incentive Plans (Detai47
Equity Incentive Plans (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total | $ 386 | $ 209 |
Cost of goods sold [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total | 34 | 31 |
Selling expenses [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total | 33 | 30 |
General and administrative [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total | 274 | 113 |
Research and development [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total | $ 45 | $ 35 |
Equity Incentive Plans (Detai48
Equity Incentive Plans (Details 2) - shares shares in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based awards outstanding | 2,922 | |
Stock-based awards available for grant as of December 31, 2017 | 1,099 | |
2016 Employee Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based awards outstanding | 213 | |
2016 Director Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based awards outstanding | 120 | |
2005 Employee Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based awards outstanding | 1,973 | |
2005 Director Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based awards outstanding | 368 | |
Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based awards outstanding | 2,293 | 1,817 |
Stock Options [Member] | 2016 Employee Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based awards outstanding | 213 | |
Stock Options [Member] | 2016 Director Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based awards outstanding | 60 | |
Stock Options [Member] | 2005 Employee Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based awards outstanding | 1,652 | |
Stock Options [Member] | 2005 Director Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based awards outstanding | 368 | |
Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based awards outstanding | 629 | |
Restricted Stock [Member] | 2016 Employee Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based awards outstanding | ||
Restricted Stock [Member] | 2016 Director Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based awards outstanding | 60 | |
Restricted Stock [Member] | 2005 Employee Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based awards outstanding | 321 | |
Restricted Stock [Member] | 2005 Director Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based awards outstanding |
Equity Incentive Plans (Detai49
Equity Incentive Plans (Details 3) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares, Outstanding, Ending balance | 2,922 |
Stock options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares, Outstanding, Beginning balance | 1,817 |
Number of shares, Options granted | 657 |
Number of shares, Options exercised | |
Number of shares, Options forfeited | |
Number of shares, Options expired | (181) |
Number of shares, Outstanding, Ending balance | 2,293 |
Number of shares, Exercisable | 1,303 |
Weighted-Average Exercise Price, Outstanding, Beginning balance | $ / shares | $ 1.04 |
Weighted-Average Exercise Price, Options granted | $ / shares | 0.55 |
Weighted-Average Exercise Price, Options exercised | $ / shares | |
Weighted-Average Exercise Price, Options forfeited | $ / shares | |
Weighted-Average Exercise Price, Options expired | $ / shares | 1.88 |
Weighted-Average Exercise Price, Outstanding, Ending balance | $ / shares | 0.84 |
Weighted-Average Exercise Price, Exercisable | $ / shares | $ 1.08 |
Weighted-Average Contractual Term, Outstanding | 6 years 7 months 6 days |
Weighted-Average Contractual Term, Exercisable | 4 years 9 months 18 days |
Aggregate Intrinsic Value, Outstanding | $ | $ 104 |
Aggregate Intrinsic Value, Exercisable | $ | $ 14 |
Equity Incentive Plans (Detai50
Equity Incentive Plans (Details 4) - Restricted stock [Member] shares in Thousands | 12 Months Ended |
Dec. 31, 2017$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares, Unvested restricted stock awards outstanding, Beginning balance | shares | 837 |
Number of shares, Restricted stock awards granted | shares | 60 |
Number of shares, Restricted stock awards vested | shares | (477) |
Number of shares, Restricted stock awards forfeited | shares | (39) |
Number of shares, Unvested restricted stock awards outstanding, Ending balance | shares | 381 |
Weighted-Average Grant Date Fair Value per Share, Unvested restricted stock awards outstanding, Beginning balance | $ / shares | $ 0.63 |
Weighted-Average Grant Date Fair Value per Share, Restricted stock awards granted | $ / shares | 0.55 |
Weighted-Average Grant Date Fair Value per Share, Restricted stock awards vested | $ / shares | 0.62 |
Weighted-Average Grant Date Fair Value per Share, Restricted stock awards forfeited | $ / shares | 0.57 |
Weighted-Average Grant Date Fair Value per Share, Unvested restricted stock awards outstanding, Ending balance | $ / shares | $ 0.64 |
Equity Incentive Plans (Detai51
Equity Incentive Plans (Details Textual) - $ / shares shares in Thousands | 1 Months Ended | |||||||
May 31, 2017 | May 31, 2016 | May 31, 2014 | Aug. 31, 2012 | Dec. 31, 2017 | May 31, 2010 | May 31, 2007 | May 31, 2005 | |
AMW [Member] | ||||||||
Equity Incentive Plans (Textual) | ||||||||
Warrant to purchase | 100 | |||||||
Warrant exercisable per share | $ 1.09 | |||||||
Warrant vested, description | The warrant vested one-third (1/3) on May 23, 2013, one-third (1/3) on May 23, 2014 and one-third (1/3) on May 23, 2015. | |||||||
Stock options [Member] | ||||||||
Equity Incentive Plans (Textual) | ||||||||
Stock price | $ 0.61 | |||||||
2016 Employee Plan [Member] | Stock options [Member] | ||||||||
Equity Incentive Plans (Textual) | ||||||||
Maximum equity based shares authorized | 1,000 | |||||||
Employee plan expiry date | Feb. 4, 2026 | |||||||
Common stock shares increased | 100 | |||||||
2016 Employee Plan [Member] | Stock appreciation rights [Member] | ||||||||
Equity Incentive Plans (Textual) | ||||||||
Common stock shares increased | 250 | |||||||
Employee Plan [Member] | ||||||||
Equity Incentive Plans (Textual) | ||||||||
Maximum equity based shares authorized | 2,600 | 1,600 | 1,100 | 500 | ||||
Restatement of employee plan extend term | Feb. 7, 2024 | |||||||
Two Zero One Six Director Equity Incentive Plan [Member] | ||||||||
Equity Incentive Plans (Textual) | ||||||||
Maximum equity based shares authorized | 400 | |||||||
Employee plan expiry date | Feb. 4, 2026 | |||||||
Director Plan [Member] | ||||||||
Equity Incentive Plans (Textual) | ||||||||
Maximum equity based shares authorized | 600 | 400 | 200 | |||||
Restatement of employee plan extend term | Feb. 7, 2024 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Current: | ||
Federal | ||
State and local | 17 | 19 |
Total current income taxes | 17 | 19 |
Deferred: | ||
Federal | 4,086 | (332) |
State and local | (10) | 1,004 |
Total deferred income taxes | 4,076 | 672 |
Valuation allowance | (4,111) | (662) |
Provision for income taxes | $ (18) | $ 29 |
Income Taxes (Details 1)
Income Taxes (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Income Taxes [Abstract] | ||
Provision (benefit) for Federal income taxes at the statutory rate | $ (137) | $ (396) |
State and local income taxes, net of Federal benefit | 10 | 12 |
Permanent differences: | ||
Other | 147 | 66 |
Deferred tax asset true-up | 1,007 | |
Change in valuation allowance | (4,111) | (662) |
Rate differential | 4,078 | |
Other | (5) | 2 |
Provision for income taxes | $ (18) | $ 29 |
Income Taxes (Details 2)
Income Taxes (Details 2) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets: | ||
Allowance for doubtful accounts | $ 38 | $ 62 |
Inventories | 746 | 1,673 |
Intangible | 105 | 154 |
Share based compensation | 70 | 68 |
Net operating loss carry forward | 5,874 | 9,032 |
Other | 1 | 2 |
Total deferred tax assets | 6,834 | 10,991 |
Deferred tax liabilities: | ||
Depreciation | (44) | (77) |
Intangible | (4) | (7) |
Pension liability | (12) | (22) |
Indefinite life intangibles | (104) | (139) |
Total deferred tax liabilities | (164) | (245) |
Deferred tax assets gross | 6,670 | 10,746 |
Valuation allowance | (6,774) | (10,885) |
Net | $ (104) | $ (139) |
Income Taxes (Details Textual)
Income Taxes (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Income Taxes (Textual) | ||
Federal net operating loss carryovers | $ 27,728 | |
State net operating loss carryovers | $ 15,027 | |
Operating loss expiry date | Dec. 31, 2022 | |
Change in valuation allowance | $ (4,111) | $ (662) |
Corporate income tax rate | 21.00% |