Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Nov. 06, 2018 | |
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-Q | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Ex Transition Period | false | |
Entity Common Stock, Shares Outstanding | 9,284,436 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash | $ 96 | $ 168 |
Accounts receivable, net of allowance for doubtful accounts of $53 and $180 as of September 30, 2018 and December 31,2017, respectively | 2,708 | 2,621 |
Inventories, current | 5,763 | 5,496 |
Prepaid benefit costs | 314 | 314 |
Prepaid and other current assets | 666 | 351 |
Total current assets | 9,547 | 8,950 |
Inventories, net non-current | 855 | 850 |
Property, plant and equipment, net | 2,958 | 3,106 |
License agreements, net | 18 | 29 |
Intangible assets, net | 1,312 | 1,441 |
Goodwill | 493 | 493 |
Other assets, net | 195 | 305 |
Total assets | 15,378 | 15,174 |
Current liabilities: | ||
Line of credit | 2,582 | 2,487 |
Current portion of long-term debt | 254 | 249 |
Accounts payable | 1,187 | 700 |
Accrued compensation | 202 | 307 |
Other accrued expenses | 251 | 196 |
Subordinated convertible debt with related parties | 202 | |
Total current liabilities | 4,678 | 3,939 |
Subordinated convertible debt with related parties | 624 | |
Long-term debt, net of current portion | 2,915 | 3,094 |
Deferred income taxes | 104 | 104 |
Total liabilities | 7,697 | 7,761 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred stock, $.001 par value; authorized 5,000 shares; no shares outstanding as of September 30, 2018 and December 31, 2017 | ||
Common stock, $.001 par value; authorized 25,000 shares, 9,914 and 8,465 shares issued, 9,684 and 8,211 shares outstanding as of September 30, 2018 and December 31, 2017, respectively | 9 | 8 |
Paid-in capital | 27,768 | 26,920 |
Accumulated deficit | (18,418) | (17,821) |
Accumulated other comprehensive loss | (854) | (854) |
Treasury stock, at cost, 229 and 253 shares as of September 30, 2018 and December 31, 2017, respectively | (824) | (840) |
Total stockholders' equity | 7,681 | 7,413 |
Total liabilities and stockholders' equity | $ 15,378 | $ 15,174 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 53 | $ 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 | 9,914 | 8,465 |
Common stock, shares outstanding | 9,684 | 8,211 |
Treasury stock, shares | 229 | 253 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Income Statement [Abstract] | ||||
Net sales | $ 5,626 | $ 5,576 | $ 16,266 | $ 17,713 |
Cost of goods sold | 3,213 | 3,399 | 9,439 | 11,010 |
Gross profit | 2,413 | 2,177 | 6,827 | 6,703 |
Operating expenses: | ||||
Selling | 683 | 631 | 1,894 | 1,941 |
General and administrative | 1,102 | 956 | 3,135 | 2,802 |
Research and development | 672 | 605 | 1,972 | 1,877 |
Total operating expenses | 2,457 | 2,192 | 7,001 | 6,620 |
(Loss) earnings from operations | (44) | (15) | (174) | 83 |
Other expense - net | (155) | (138) | (423) | (581) |
Change in derivative liability | (142) | |||
Loss before income taxes | (199) | (153) | (597) | (640) |
Provision for income taxes | ||||
Net loss | $ (199) | $ (153) | $ (597) | $ (640) |
Basic and diluted net loss per share | $ (0.02) | $ (0.02) | $ (0.07) | $ (0.08) |
Basic and diluted weighted averages shares outstanding | 9,270 | 8,212 | 8,836 | 8,181 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Cash Flows From Operating Activities: | ||
Net loss | $ (597) | $ (640) |
Adjustments to reconcile net loss to cash provided by (used in) operating activities: | ||
Stock compensation expense | 393 | 292 |
Depreciation | 235 | 242 |
Amortization | 160 | 264 |
Recovery of bad debt expense | (126) | |
Amortization of loan fees | 108 | 105 |
Non cash interest expense | 32 | 229 |
Change in derivative liability | 142 | |
Changes in operating assets and liabilities: | ||
Accounts receivable | 39 | (353) |
Inventories | (272) | (454) |
Prepaid and other current assets | (315) | (59) |
Other assets | 2 | (23) |
Accounts payable, accrued compensation and other accrued expenses | 437 | 5 |
Net cash provided by (used in) operating activities | 96 | (250) |
Cash Flows From Investing Activities: | ||
Purchases of property and equipment | (72) | (100) |
Acquisition of licenses | (20) | (60) |
Net cash used in investing activities | (92) | (160) |
Cash Flows From Financing Activities: | ||
Net borrowings of line of credit | 95 | 307 |
Repayments of long-term debt | (189) | (166) |
Proceeds from exercise of stock options | 18 | |
Net cash (used in) provided by financing activities | (76) | 141 |
Net decrease in cash | (72) | (269) |
Cash, beginning of period | 168 | 468 |
Cash, end of period | 96 | 199 |
Supplemental Cash Flow Information: | ||
Cash paid for interest | 273 | 218 |
Non cash investing and financing activities: | ||
Capital expenditures financed by notes payable | 15 | 10 |
Conversion of subordinated convertible debt to common stock | $ 455 |
Company and Basis of Consolidat
Company and Basis of Consolidation | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Company and Basis of Consolidation | Note 1 – Company and Basis of Consolidation Blonder Tongue Laboratories, Inc. (together with its consolidated subsidiaries, the “ Company The accompanying unaudited condensed consolidated financial statements as of September 30, 2018 and for the three and nine months then ended have been prepared in accordance with accounting principles generally accepted in the United States of America (“ GAAP SEC |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2 – Summary of Significant Accounting Policies (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, inventories and deferred tax assets. Actual results could differ from those estimates. (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 of the Notes to Condensed Consolidated Financial Statements. 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. (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. (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 (loss) 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 1,527 and 3,174 for the three-month periods ended September 30, 2018 and 2017, respectively and 1,406 and 2,983 for the nine-month periods ended September 30, 2018 and 2017, respectively. These shares were excluded due to their antidilutive effect. (e) Adoption of Recent Accounting Pronouncements On January 1, 2018, the Company adopted Accounting Standards Update (“ ASU Revenue from Contracts with Customers (“Topic 606” Revenue Recognition Topic 605 (f) Accounting Pronouncements Issued But Not Yet Effective In June 2018, the FASB issued ASU No. 2018-07, Compensation – Stock Compensation (“ Topic 718” ): Improvements to Nonemployee Share-Based Payment Accounting In February 2016, the FASB issued ASU 2016-02, Leases Topic 842” In July 2018, the FASB issued ASU 2018-11, Leases Topic 842 Targeted Improvements In January 2017, the FASB issued ASU 2017-04, Intangibles—Goodwill and Other Topic 350 Simplifying the Test for Goodwill Impairment 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 ASU 2018-02 |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2018 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Revenue Recognition | Note 3 – Revenue Recognition The adoption of Topic 606 represents a change in accounting principle that will provide financial statement readers with enhanced revenue recognition disclosures. In accordance with Topic 606, the Company recognizes revenue when goods or services are transferred to customers in an amount that reflects the consideration which it expects to receive in exchange for those goods or services. In determining when and how revenue is recognized from contracts with customers, the Company performs the following five-step analysis: (i) identification of contract with customer; (ii) determination of performance obligations; (iii) measurement of the transaction price; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation. The Company generates revenue through the sale of products and services. Revenue from the sale of products and services is recorded when the performance obligation is fulfilled, usually at the time of shipment or when the service is provided, at the net sales price (transaction price). Estimates of variable consideration, such as volume discounts and rebates, are reviewed and revised periodically by management. The Company elected to present revenue net of sales tax and other similar taxes and account for shipping and handling activities as fulfillment costs rather than separate performance obligations. Payments are typically due in 30 days, following delivery of products or completion of services. Disaggregation of Revenue The following table presents the Company’s disaggregated revenues by revenue source: Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Digital video headend products $ 2,814 $ 2,100 $ 7,899 $ 7,330 Data products 1,112 1,782 3,566 5,168 HFC distribution products 843 838 2,345 2,545 Analog video headend products 411 324 1,234 1,360 Contract manufactured products 227 244 606 599 Other 219 288 616 711 $ 5,626 $ 5,576 $ 16,266 $ 17,713 All of the Company’s sales are to customers located in North America. The Company is a technology-development and manufacturing company that delivers a wide range of products and services to the cable entertainment and media industry. Digital video headend products (including encoders) are used by a system operator for acquisition, processing, compression, encoding and management of digital video. Data products give service providers, integrators, and premises owners a means to deliver data, video, and voice-over-coaxial in locations such as hospitality, MDU's, and college campuses, using IP technology. HFC distribution products are used to transport signals from the headend to their ultimate destination in a home, apartment unit, hotel room, office or other terminal location along a fiber optic, coax or HFC distribution network. Analog video headend products are used by a system operator for signal acquisition, processing and manipulation to create an analog channel lineup for further transmission. Contract-manufactured products, provides manufacturing, research and development and product support services for other companies’ products. The Company also provides technical services, including hands-on training, system design engineering, on-site field support and complete system verification testing. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 4 – Inventories Inventories are summarized as follows: September 30, December 31, Raw Materials $ 2,370 $ 1,869 Work in process 1,913 1,793 Finished Goods 2,335 2,684 6,618 6,346 Less current inventories (5,763 ) (5,496 ) $ 855 $ 850 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. Approximately 45% and 51% of the non-current inventories were comprised of finished goods at September 30, 2018 and December 31, 2017, respectively. 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 writes down inventory to net realizable value. 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 | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Debt | Note 5 – 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 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. At September 30, 2018, the Company was in compliance with all financial covenants under the Sterling Agreement. |
Subordinated Convertible Debt w
Subordinated Convertible Debt with Related Parties | 9 Months Ended |
Sep. 30, 2018 | |
Subordinated Borrowings [Abstract] | |
Subordinated Convertible Debt with Related Parties | 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 Subordinated Loan Facility PIK Interest Subordinated Mortgage” On April 17, 2018, Robert J. Pallé and Carol Pallé exercised their conversion rights and converted $455 ($350 principal and $105 of accrued interest) of their loan (representing the entire amount of principal and interest outstanding and held by Mr. and Mrs. Pallé on that date) into 842 shares of the Company’s common stock. 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 both September 30, 2018 and December 31, 2017, the Subordinated Lenders had advanced $500 to the Company. In addition, $157 and $124 of PIK interest was accrued as of September 30, 2018 and December 31, 2017, respectively. As noted above, in April 2018, $455 under the Subordinated Loan Facility was converted by certain Subordinated Lenders. 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 First Sub-Debt Amendmen |
Issuance of Restricted Common S
Issuance of Restricted Common Stock | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Issuance of Restricted Common Stock | Note 7 – Issuance of Restricted Common Stock In connection with the hiring of the Company’s new Executive Vice President and Chief Operating Officer (the “ COO On August 20, 2018, the COO notified the Company that he was resigning from his position, effective on September 14, 2018, resulting in the 400 shares of restricted stock being forfeited. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 8 – Related Party Transactions A and shareholder of the Company is a partner of a law firm that serves as outside legal counsel for the Company. During the three- and nine-month periods ended September 30, 2018 and 2017, this law firm billed the Company approximately $225, $601, $156 and $290, respectively for legal services provided by this firm. Included in accounts payable on the accompanying balance sheets at September 30, 2018 and December 31, 2017, is approximately $156 and $25, respectively, owed to this law firm. |
Concentration of Credit Risk
Concentration of Credit Risk | 9 Months Ended |
Sep. 30, 2018 | |
Risks and Uncertainties [Abstract] | |
Concentration of Credit Risk | Note 9 – Concentration of Credit Risk During the three and nine months ended September 30, 2018, one customer represented approximately 23% and 25% and one customer represented approximately 11% and 13% of the Company’s net sales, respectively. During the three and nine months ended September 30, 2017, one customer represented approximately 33% and 34% and one customer represented approximately 10% and 13% of the Company’s net sales, respectively. At September 30, 2018, one customer represented approximately 24%, one customer represented approximately 13% and one customer represented approximately 10% of the Company’s net accounts receivable. At December 31, 2017, one customer represented approximately 26%, one customer represented approximately 19% and two customers each represented approximately 10% of the Company’s net accounts receivable. |
Legal Proceedings
Legal Proceedings | 9 Months Ended |
Sep. 30, 2018 | |
Legal Proceedings [Abstract] | |
Legal Proceedings | Note 10 – 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 | 9 Months Ended |
Sep. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 11 – Subsequent Events The Company evaluates events that have occurred after the balance sheet date but before the financial statements are issued. On August 3, 2018, the Company entered into an Agreement of Sale (the “ Sale Agreement” Jake Brown Lease In October 2018, in connection with the hiring of the Company’s new Executive Vice President and COO, the Company granted the COO options to purchase 500 shares of the Company’s common stock, with 100 options vesting on each of the first two one-year anniversaries of his first day of employment with the Company and an additional 150 options vesting on each of the third and fourth year anniversaries of his first day of employment with the Company. 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 condensed consolidated financial statements. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Use of Estimates | (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, inventories and deferred tax assets. Actual results could differ from those estimates. |
Derivative Financial Instruments | (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 of the Notes to Condensed Consolidated Financial Statements. 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 | (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. |
Earnings (loss) Per Share | (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 (loss) 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 1,527 and 3,174 for the three-month periods ended September 30, 2018 and 2017, respectively and 1,406 and 2,983 for the nine-month periods ended September 30, 2018 and 2017, respectively. These shares were excluded due to their antidilutive effect. |
Adoption of Recent Accounting Pronouncements | (e) Adoption of Recent Accounting Pronouncements On January 1, 2018, the Company adopted Accounting Standards Update (“ ASU Revenue from Contracts with Customers (“Topic 606” Revenue Recognition Topic 605 |
Accounting Pronouncements Issued But Not Yet Effective | (f) Accounting Pronouncements Issued But Not Yet Effective In June 2018, the FASB issued ASU No. 2018-07, Compensation – Stock Compensation (“ Topic 718” ): Improvements to Nonemployee Share-Based Payment Accounting In February 2016, the FASB issued ASU 2016-02, Leases Topic 842” In July 2018, the FASB issued ASU 2018-11, Leases Topic 842 Targeted Improvements In January 2017, the FASB issued ASU 2017-04, Intangibles—Goodwill and Other Topic 350 Simplifying the Test for Goodwill Impairment 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 ASU 2018-02 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Schedule of disaggregated revenues | Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Digital video headend products $ 2,814 $ 2,100 $ 7,899 $ 7,330 Data products 1,112 1,782 3,566 5,168 HFC distribution products 843 838 2,345 2,545 Analog video headend products 411 324 1,234 1,360 Contract manufactured products 227 244 606 599 Other 219 288 616 711 $ 5,626 $ 5,576 $ 16,266 $ 17,713 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Summary of inventories | September 30, December 31, Raw Materials $ 2,370 $ 1,869 Work in process 1,913 1,793 Finished Goods 2,335 2,684 6,618 6,346 Less current inventories (5,763 ) (5,496 ) $ 855 $ 850 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Summary of Significant Accounting Policies (Textual) | ||||
Incremental shares related to stock options, restricted stock and convertible debt | 1,527 | 3,174 | 1,406 | 2,983 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||||
Disaggregated revenues | $ 5,626 | $ 5,576 | $ 16,266 | $ 17,713 |
Digital video headend products [Member] | ||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||||
Disaggregated revenues | 2,814 | 2,100 | 7,899 | 7,330 |
Data products [Member] | ||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||||
Disaggregated revenues | 1,112 | 1,782 | 3,566 | 5,168 |
HFC distribution products [Member] | ||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||||
Disaggregated revenues | 843 | 838 | 2,345 | 2,545 |
Analog video headend products [Member] | ||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||||
Disaggregated revenues | 411 | 324 | 1,234 | 1,360 |
Contract manufactured products [Member] | ||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||||
Disaggregated revenues | 227 | 244 | 606 | 599 |
Other [Member] | ||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||||
Disaggregated revenues | $ 219 | $ 288 | $ 616 | $ 711 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Summary of inventories | ||
Raw Materials | $ 2,370 | $ 1,869 |
Work in process | 1,913 | 1,793 |
Finished Goods | 2,335 | 2,684 |
Inventories, gross | 6,618 | 6,346 |
Less current inventories | (5,763) | (5,496) |
Inventories, net | $ 855 | $ 850 |
Inventories (Details Textual)
Inventories (Details Textual) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Inventories (Textual) | ||
Percentage of finished goods in non-current inventories | 45.00% | 51.00% |
Description of inventory's method | Inventories are stated at the lower of cost, determined by the first-in, first-out ("FIFO") method, or net realizable value. |
Debt (Details)
Debt (Details) - USD ($) $ in Thousands | 9 Months Ended | |||
Sep. 30, 2018 | Dec. 31, 2017 | Dec. 28, 2016 | Mar. 28, 2016 | |
Debt (Textual) | ||||
Outstanding balances under revolver | $ 2,582 | $ 2,487 | ||
Outstanding balances under term loan | $ 3,111 | $ 3,286 | ||
Subordinated Loan Facility [Member] | ||||
Debt (Textual) | ||||
Term loan facility | $ 750 | |||
Sterling National Bank [Member] | ||||
Debt (Textual) | ||||
Term loan 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, expires date | Dec. 31, 2019 | |||
Sterling National Bank [Member] | Term Loan Credit Facility [Member] | ||||
Debt (Textual) | ||||
Term loan facility | 3,500 | |||
Interest on revolver - margin | 4.50% | |||
Term loan Amortize rate per month | $ 19 | |||
Variable rate basis, description | Interest on the Term Loan also is variable, based upon the 30-day LIBOR rate (2.26% at September 30, 2018) plus a margin of 4.50%. | |||
Sterling National Bank [Member] | Revolving Credit Facility [Member] | ||||
Debt (Textual) | ||||
Term loan 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 (2.26% at September 30, 2018) plus a margin of 4.00%. |
Subordinated Convertible Debt_2
Subordinated Convertible Debt with Related Parties (Details) - Subordinated Loan Facility [Member] - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||||
Apr. 30, 2018 | Apr. 17, 2018 | Mar. 28, 2016 | Sep. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Subordinated Convertible Debt with Related Parties (Textual) | ||||||||||
Subordinated loan maximum amount borrowing facility | $ 750 | |||||||||
Minimum amount of advances that may be drawn | $ 50 | |||||||||
Subordinated loan facility, interest accrued interest per annum | 12.00% | |||||||||
Conversion price of loan into shares | $ 0.54 | |||||||||
Subordinated loan advance | $ 500 | $ 500 | $ 500 | |||||||
Accrued PIK interest | 157 | 157 | $ 124 | |||||||
Derivative liability | $ 260 | |||||||||
Change in derivative liability (expense) | $ (142) | |||||||||
Modification in additional paid-in capital due to change in derivative liability | $ 402 | |||||||||
Conversion of loan amount | $ 455 | $ 455 | ||||||||
Principal amount | 350 | |||||||||
Accrued interest | $ 105 | $ 6 | $ 33 | $ 18 | $ 52 | |||||
Common stock shares converted | 842 |
Issuance of Restricted Common_2
Issuance of Restricted Common Stock (Details) - Chief Operating Officer [Member] - $ / shares shares in Thousands | Apr. 23, 2018 | Aug. 20, 2018 |
Issuance of Restricted Common Stock (Textual) | ||
Shares of restricted common stock | 400 | |
Common stock, per share price | $ 1.05 | |
Number of shares vested | 100 | |
Employment vesting, description | Vesting on each of the first four one-year anniversaries of his first day of employment with the Company. | |
Shares of restricted stock being forfeited | 400 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Related Party Transactions (Textual) | |||||
Legal services | $ 225 | $ 156 | $ 601 | $ 290 | |
Accounts payable | $ 156 | $ 156 | $ 25 |
Concentration of Credit Risk (D
Concentration of Credit Risk (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
One Customer [Member] | |||||
Concentration of Credit Risk (Textual) | |||||
Concentration risk, percentage | 23.00% | 33.00% | 25.00% | 34.00% | |
One Customer [Member] | Sales Revenue, Net [Member] | |||||
Concentration of Credit Risk (Textual) | |||||
Concentration risk, percentage | 11.00% | 10.00% | 13.00% | 13.00% | |
Customer Two [Member] | Accounts Receivable [Member] | |||||
Concentration of Credit Risk (Textual) | |||||
Concentration risk, percentage | 13.00% | 19.00% | |||
Customer Three [Member] | Accounts Receivable [Member] | |||||
Concentration of Credit Risk (Textual) | |||||
Concentration risk, percentage | 10.00% | 10.00% | |||
Customer One [Member] | Accounts Receivable [Member] | |||||
Concentration of Credit Risk (Textual) | |||||
Concentration risk, percentage | 24.00% | 26.00% | |||
Customer Four [Member] | Accounts Receivable [Member] | |||||
Concentration of Credit Risk (Textual) | |||||
Concentration risk, percentage | 10.00% |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) shares in Thousands, $ in Thousands | Aug. 03, 2018 | Apr. 23, 2018 | Oct. 31, 2018 |
Jake Brown Road LLC [Member] | |||
Subsequent Events (Textual) | |||
Agreed to pay amount | $ 10,500 | ||
Lease initial term | The Lease will have an initial term of five years and allows the Company to extend the term for an additional five years following the initial term. | ||
Obligated to pay base rent | $ 837 | ||
Maximum percentage of base rent | 102.50% | ||
Chief Operating Officer [Member] | |||
Subsequent Events (Textual) | |||
Options vesting | 100 | ||
Chief Operating Officer [Member] | Subsequent Event [Member] | |||
Subsequent Events (Textual) | |||
Options to purchase shares of common stock | 500 | ||
Chief Operating Officer [Member] | Subsequent Event [Member] | First two one-year anniversaries [Member] | |||
Subsequent Events (Textual) | |||
Options vesting | 100 | ||
Chief Operating Officer [Member] | Subsequent Event [Member] | Third and fourth year anniversaries [Member] | |||
Subsequent Events (Textual) | |||
Options vesting | 150 |