Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Mar. 25, 2019 | Jun. 30, 2018 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | BLONDER TONGUE LABORATORIES INC | ||
Entity Central Index Key | 0001000683 | ||
Trading Symbol | BDR | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2018 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Shell Company | false | ||
Entity Ex Transition Period | false | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Public Float | $ 5,160,649 | ||
Entity Common Stock, Shares Outstanding | 9,595,215 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash | $ 559 | $ 168 |
Accounts receivable, net of allowance for doubtful accounts of $53 and $180 as of December 31, 2018 and 2017, respectively | 2,654 | 2,621 |
Inventories, current | 6,172 | 5,496 |
Prepaid benefit costs | 288 | 314 |
Deferred loan costs | 149 | |
Prepaid and other current assets | 555 | 351 |
Total current assets | 10,377 | 8,950 |
Inventories, non-current | 551 | 850 |
Property, plant and equipment, net | 2,890 | 3,106 |
License agreements, net | 12 | 29 |
Intangible assets, net | 1,269 | 1,441 |
Goodwill | 493 | 493 |
Other assets, net | 9 | 305 |
Total assets | 15,601 | 15,174 |
Current liabilities: | ||
Line of credit | 2,603 | 2,487 |
Current portion of long-term debt | 3,075 | 249 |
Accounts payable | 1,523 | 700 |
Accrued compensation | 332 | 307 |
Income taxes payable | 28 | 22 |
Other accrued expenses | 702 | 174 |
Total current liabilities | 8,263 | 3,939 |
Subordinated convertible debt with related parties | 139 | 624 |
Long-term debt, net of current portion | 32 | 3,094 |
Deferred income taxes | 104 | |
Total liabilities | 8,434 | 7,761 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred stock, $.001 par value; authorized 5,000 shares; no shares outstanding as of December 31, 2018 and 2017, respectively | ||
Common stock, $.001 par value; authorized 25,000 shares, 9,508 and 8,465 shares Issued, 9,335 and 8,211 shares outstanding as of December 31, 2018 and 2017, respectively | 9 | 8 |
Paid-in capital | 27,910 | 26,920 |
Accumulated deficit | (19,178) | (17,821) |
Accumulated other comprehensive loss | (832) | (854) |
Treasury stock, at cost, 173 and 254 shares as of December 31, 2018 and 2017, respectively | (742) | (840) |
Total stockholders' equity | 7,167 | 7,413 |
Total liabilities and stockholders' equity | $ 15,601 | $ 15,174 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Dec. 31, 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 | 9,508 | 8,465 |
Common stock, shares outstanding | 9,335 | 8,211 |
Treasury stock, shares | 173 | 254 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive (Loss) Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | ||
Net sales | $ 21,707 | $ 23,283 |
Cost of goods sold | 13,288 | 14,347 |
Gross profit | 8,419 | 8,936 |
Operating expenses: | ||
Selling expenses | 2,461 | 2,492 |
General and administrative | 4,236 | 3,529 |
Research and development | 2,576 | 2,452 |
Total operating expenses | 9,273 | 8,473 |
(Loss) earnings from operations | (854) | 463 |
Other expense: | ||
Interest expense, net | (562) | (723) |
Change in derivative liability | (142) | |
Total other expense | (562) | (865) |
Loss before income taxes | (1,416) | (402) |
Benefit for income taxes | (77) | (18) |
Net loss | $ (1,339) | $ (384) |
Net loss per share, basic and diluted | $ (0.15) | $ (0.05) |
Weighted average shares outstanding, basic and diluted | 8,899 | 8,189 |
Statements of Comprehensive (Loss) Income | ||
Net loss | $ (1,339) | $ (384) |
Changes in accumulated unrealized pension losses, net of taxes | 22 | 424 |
Comprehensive (loss) income | $ (1,317) | $ 40 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Common Stock | Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Treasury Stock | Total |
Balance at Dec. 31, 2016 | $ 8 | $ 26,132 | $ (17,179) | $ (1,278) | $ (1,149) | $ 6,534 |
Balance, shares at Dec. 31, 2016 | 8,465 | |||||
Net loss | (384) | (384) | ||||
Recognized pension gain, net of taxes | 424 | 424 | ||||
Issuance of stock awards from treasury stock for directors fees | (258) | 309 | 51 | |||
Modification of subordinated convertible debt | 402 | 402 | ||||
Stock-based Compensation | 386 | 386 | ||||
Balance at Dec. 31, 2017 | $ 8 | 26,920 | (17,821) | (854) | (840) | 7,413 |
Balance, shares at Dec. 31, 2017 | 8,465 | |||||
Net loss | (1,339) | (1,339) | ||||
Recognized pension gain, net of taxes | 22 | 22 | ||||
Issuance of stock awards from treasury stock for directors fees | (18) | 34 | 16 | |||
Exercised stock options and issued common stock from treasury stock | (24) | 64 | 40 | |||
Conversion of subordinated convertible debt | $ 1 | 521 | 522 | |||
Conversion of subordinated convertible debt, shares | 967 | |||||
Stock-based Compensation | $ 76 | 493 | 493 | |||
Balance at Dec. 31, 2018 | $ 9 | $ 27,910 | $ (19,178) | $ (832) | $ (742) | $ 7,167 |
Balance, shares at Dec. 31, 2018 | 9,508 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Cash Flows From Operating Activities: | ||
Net loss | $ (1,339) | $ (384) |
Adjustments to reconcile net loss to cash provided by (used in) operating activities: | ||
Depreciation | 312 | 321 |
Amortization | 209 | 321 |
Stock-based compensation expense | 493 | 386 |
Issuance of stock from treasury | 16 | |
Reversal of provision for inventory reserves | (65) | (49) |
Non cash pension expense | 48 | 9 |
Deferred income taxes | (104) | (35) |
Amortization of loan fees | 144 | 144 |
Non cash interest expense | 37 | 248 |
Equity based directors' fees | 51 | |
Change in derivative liability | 142 | |
Changes in operating assets and liabilities: | ||
Accounts receivable | (33) | (348) |
Inventories | (312) | (242) |
Prepaid and other current assets | (503) | (76) |
Other assets | 302 | (21) |
Income taxes payable | 6 | 7 |
Accounts payable, accrued expenses and accrued compensation | 1,376 | (711) |
Net cash provided by (used in) operating activities | 587 | (237) |
Cash Flows From Investing Activities: | ||
Capital expenditures | (81) | (138) |
Acquisition of licenses | (20) | (62) |
Net cash used in investing activities | (101) | (200) |
Cash Flows From Financing Activities: | ||
Net borrowings on line of credit | 116 | 367 |
Repayments of debt | (251) | (230) |
Proceeds from exercise of stock options | 40 | |
Net cash (used in) provided by financing activities | (95) | 137 |
Net increase (decrease) in cash | 391 | (300) |
Cash, beginning of year | 168 | 468 |
Cash, end of year | 559 | 168 |
Supplemental Cash Flow Information: | ||
Cash paid for interest | 369 | 300 |
Cash paid for income taxes | ||
Non cash investing and financing activities: | ||
Capital expenditures financed by notes payable | 15 | 10 |
Conversion of subordinated convertible debt to common stock | 522 | |
Cashless exercise of stock options | $ 24 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
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 investments 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, 2018 and 2017. 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, 2018. 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, 2018 are as follows: Description Cost Accumulated Net Amount Customer relationships $ 1,365 $ 944 $ 421 Proprietary technology 349 242 107 Non-compete agreements 248 248 - Amortized intangible assets 1,962 1,434 528 Non-Amortized Trade name 741 - 741 Total $ 2,703 $ 1,434 $ 1,269 The components of intangible assets that are carried at cost less accumulated amortization at December 31, 2017 are as follows: Description Cost Accumulated 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 Amortization is computed utilizing the straight-line method over the estimated useful lives of 10 years for customer relationships, 10 years for proprietary technology, and 3 years for non-compete agreements. Amortization expense for intangible assets was $171 for both years ended December 31, 2018 and 2017, respectively. Intangible asset amortization is projected to be approximately $171 per year in 2019, 2020 and 2021, respectively and $15 in 2022. (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 2018 and 2017. (h) 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 2018 and 2017, 81 shares and 92 shares, respectively of common stock were reissued from treasury. (i) 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, 2018, approximately 28% of the Company’s employees were covered by a collective bargaining agreement, that is scheduled to expire in February 2023. The Company’s digital video headend products accounted for approximately 48% and 41% of the Company’s revenues in the years ended December 31, 2018 and 2017, respectively. (j) 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 $45 and $77 for the years ended December 31, 2018 and 2017, 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, 2018 2017 License agreements $ 6,005 $ 5,985 Accumulated amortization (5,993 ) (5,956 ) $ 12 $ 29 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 $38 and $150 in the years ended December 31, 2018 and 2017, respectively. Amortization expense for license fees is projected to be approximately $12 in the year ending December 31, 2019. (k) 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, 2018 and 2017 and cumulative translation gains and losses as of December 31, 2018 and 2017 were not material. (l) Research and Development Research and development expenditures for the Company’s projects are expensed as incurred. (m) Revenue Recognition The Company generates revenue through the sale of products and services. Revenue is recognized based on the following steps: (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. 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. The Company provides a three-year warranty on most products. Warranty expense was de minimis (n) 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. (o) 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 the United States and New Jersey, along with certain other jurisdictions. (p) 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, warrants and convertible debt of 1,157. 100 and 257 and 1,256, 100 and 1,156 for the year ended December 31, 2018 and 2017, respectively. These shares were excluded due to their antidilutive effect. (q) 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. (r) 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 additional recognized or non-recognized subsequent events that would require adjustment to or disclosure in the consolidated financial statements. (s) 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 In May 2017, the FASB issued ASU No. 2017-09, Compensation–Stock Compensation (Topic 718): Scope of Modification Accounting (t) 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 No. 2016-02, Leases (Topic 842) Codification Improvements to Topic 842, Leases 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 In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326) changes the impairment model for most financial assets, and will require the use of an expected loss model in place of the currently used incurred loss method. Under this model, entities will be required to estimate the lifetime expected credit loss on such instruments and record an allowance to offset the amortized cost basis of the financial asset, resulting in a net presentation of the amount expected to be collected on the financial asset. The update to the standard is effective for interim and annual periods beginning after December 15, 2019. The Company is currently evaluating the effect this new standard will have on its financial position, results of operations or financial statement disclosure. |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2018 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Revenue | Note 2 - Revenue The Company recognized revenue when it satisfies a performance obligation by transferring the product or service to the customer, typically at a point in time. Disaggregation of Revenue The following table presents the Company’s disaggregated revenues by revenue source: Years ended December 31, 2018 2017 Digital video headend products $ 10,494 $ 9,438 Data products 4,583 6,942 HFC distribution products 3,217 3,343 Analog video headend products 1,661 1,819 Contract manufactured products 791 838 Other 961 903 $ 21,707 $ 23,283 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 | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 3 - Inventories Inventories, net of reserves, are summarized as follows: December 31, 2018 2017 Raw materials $ 2,581 $ 1,869 Work in process 1,573 1,793 Finished goods 2,569 2,684 6,723 6,346 Less current inventory (6,172 ) (5,496 ) $ 551 $ 850 The Company recorded a provision to reduce the carrying amount of inventories to their net realizable value in the amount of $2,614 and $2,606 at December 31, 2018 and 2017, respectively. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Note 4 - Property, Plant and Equipment Property, plant and equipment are summarized as follows: December 31, 2018 2017 Land $ 1,000 $ 1,000 Building 3,361 3,361 Machinery and equipment 10,636 10,530 Furniture and fixtures 440 437 Office equipment 2,401 2,439 Building improvements 1,458 1,433 19,296 19,200 Less: Accumulated depreciation and amortization (16,406 ) (16,094 ) $ 2,890 $ 3,106 Depreciation expense amounted to approximately $312 and $321 during the years ended December 31, 2018 and 2017, respectively. |
Debt
Debt | 12 Months Ended |
Dec. 31, 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 Second 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) the minimum liquidity described above 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). The Company was not in compliance with the fixed charge coverage ratio covenant under the Sterling Agreement at December 31, 2018 and January 31, 2019. Sterling waived this non-compliance in the Second Amendment. Long-term debt consists of the following: December 31, 2018 2017 Term loan - repaid in full on February1, 2019 $ 3,053 $ 3,286 Capital leases (Note 7) 54 57 3,107 3,343 Less: Current portion (3,075 ) (249 ) $ 32 $ 3,094 Annual maturities of long term debt at December 31, 2018 are $3,075 in 2019, $21 in 2020 and $11 in 2021. |
Subordinated Convertible Debt w
Subordinated Convertible Debt with Related Parties | 12 Months Ended |
Dec. 31, 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. On October 9, 2018, James H. Williams exercised his conversion right and converted $67 ($50 principal and $17 of accrued interest) of his loan (representing the entire amount of principal and interest outstanding and held by Mr. Williams on that date) into 125 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 December 31, 2018 and 2017, the Subordinated Lenders had advanced $500 to the Company. In addition, $39 and $124 of PIK interest was accrued as of December 31, 2018 and 2017, respectively. As noted above, in October and April 2018, an aggregate of $522 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 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 7 – 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 2019 $ 26 $ 134 2020 23 107 2021 11 75 2022 - 2 2023 - - Thereafter - - Total future minimum lease payments 60 $ 318 Less: amounts representing interest (6 ) Present value of minimum lease payments $ 54 Property, plant and equipment included capitalized leases of $96 and $86 at December 31, 2018 and 2017, less accumulated amortization of $45 and $23 at December 31, 2018 and 2017, respectively. Rent expense was $149 and $199 for the years ended December 31, 2018 and 2017, 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, 2018 | |
Retirement Benefits [Abstract] | |
Benefit Plans | Note 8 – 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 $155 and $157, for the years ended December 31, 2018 and 2017, 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 for this plan was $48 in 2018 and $9 in 2017, 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, 2018 and 2017, the funded status related to the defined benefit pension plan was overfunded by $288 and $314, respectively, and is recorded in current assets. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 9 - 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 6, above. A director and shareholder of the Company is a partner of a law firm that serves as outside legal counsel for the Company. During the years ended December 31, 2018 and 2017, this law firm billed the Company approximately $752 and $358, respectively for legal services provided by this firm. Included in accounts payable on the accompanying balance sheets at December 31, 2018 and 2017, is approximately zero and $25, respectively, owed to this law firm. |
Concentration of Credit Risk
Concentration of Credit Risk | 12 Months Ended |
Dec. 31, 2018 | |
Risks and Uncertainties [Abstract] | |
Concentration of Credit Risk | Note 10 - 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 three and four of the Company's customers in 2018 and 2017, respectively. These customers accounted for approximately 47% and 65% of the Company's outstanding trade accounts receivable at December 31, 2018 and 2017, 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. During the year ended December 31, 2018, one customer represented approximately 23% and one customer represented approximately 14% of the Company's net sales. During the year ended December 31, 2017, one customer represented approximately 34% and one customer represented approximately 13% of the Company's net sales. At December 31, 2018, one customer represented approximately 22%, one customer represented approximately 14% and one customer represented approximately 11% 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. The Company had sales outside the United States of approximately 4% and 7% in the years ended December 31, 2018 and 2017, respectively. |
Stock Repurchase Program
Stock Repurchase Program | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Stock Repurchase Program | Note 11 – 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, 2018 | |
Equity [Abstract] | |
Executive Stock Purchase Plan | Note 12 – 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, 2018 | |
Preferred Stock [Abstract] | |
Preferred Stock | Note 13 – 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, 2018 and 2017, there were no outstanding preferred shares. |
Equity Incentive Plans
Equity Incentive Plans | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Equity Incentive Plans | Note 14 – 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, 2018 2017 Fair value of the company's common stock on date of grant $ 0.95 $ 0.54 Expected term 6.5 years 6.5 years Risk free interest rate 2.92 % 2.02 % Dividend yield 0.00 % 0.00 % Volatility 79.0 % 79.0 % Fair value of options granted $ 0.68 $ 0.38 The following table summarizes total stock-based compensation costs recognized for the years ended December 31, 2018 and 2017: Years ended December 31, 2018 2017 Cost of goods sold $ 38 $ 34 Selling expenses 74 33 General and administrative 263 274 Research and development 118 45 Total $ 493 $ 386 The following table summarizes information about stock-based awards outstanding for the year ended December 31, 2018: Plan Stock Restricted Total 2016 Employee Plan 1,452 48 1,500 2016 Director Plan 199 - 199 Other 500 500 2005 Employee Plan 1,181 88 1,269 2005 Director Plan 324 - 324 3,656 136 3,792 Stock-based awards available for grant as of December 31, 2018 1,271 Stock options award activity for the year ended December 31, 2018 is as follows: Number of Weighted- Weighted- Aggregate Outstanding at January 1, 2018 2,269 $ 0.83 Options granted 1,546 0.95 Options exercised (94 ) 0.70 Options forfeited (23 ) 0.80 Options expired (42 ) 1.23 Outstanding at December 31, 2018 3,656 $ 0.88 7.4 $ 1,023 Exercisable at December 31, 2018 1,592 $ 0.97 5.3 $ 397 During the year ended December 31, 2018, the Company granted options under the 2016 Employee Plan, the 2016 Director Plan, the 2005 Employee Plan as well as non plan grants to purchase 1,546 shares of common stock to its employees and directors. The fair value of these options was approximately $1,051. 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 $1.11 per share at December 31, 2018. Restricted stock award activity is as follows: Number of Weighted- Unvested restricted stock awards outstanding at January1, 2018 381 $ 0.64 Restricted stock awards granted 476 1.06 Restricted stock awards vested (315 ) 0.66 Restricted stock awards forfeited (406 ) 1.10 Unvested restricted stock awards outstanding at December 31, 2018 136 $ 0.71 During the year ended December 31, 2018, the Company granted restricted stock awards under the 2016 Employee Plan, the 2016 Director Plan, the 2005 Employee Plan as well as non plan grants of 476 shares of common stock to its employees. The fair value of these awards was approximately $506. 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 connection with the hiring of the Company's new Executive Vice President and Chief Operating Officer (the " COO 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, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 15 - Income Taxes On December 22, 2017, the 2017 Tax Cut and Jobs Act (the " Act The following summarizes the benefit for income taxes for the years ended December 31, 2018 and 2017: 2018 2017 Current: Federal $ - $ - State and local 27 17 27 17 Deferred: Federal (270 ) 4,086 State and local (3 ) (10 ) (273 ) 4,076 Valuation allowance 169 4,111 Provision for income taxes $ (77 ) $ (18 ) The 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, 2018 and 2017: 2018 2017 Provision (benefit) for Federal income taxes at the statutory rate $ (297 ) $ (137 ) State and local income taxes, net of Federal benefit (11 ) 10 Permanent differences: Other 62 147 Change in valuation allowance 169 (4,111 ) Rate differential - 4,078 Other - (5 ) Provision (benefit) for income taxes $ (77 ) $ (18 ) Significant components of the Company's deferred tax assets and liabilities are as follows: December 31, 2018 2017 Deferred tax assets: $ 11 $ 38 Allowance for doubtful accounts Inventories 771 746 Intangible 112 105 Share based compensation 125 70 Net operating loss carry forward 6,109 5,874 Other 2 1 Total deferred tax assets 7,130 6,834 Deferred tax liabilities: Depreciation (60 ) (44 ) Intangible (4 ) (4 ) Pension liability (1 ) (12 ) Indefinite life intangibles (122 ) (104 ) Total deferred tax liabilities (187 ) (164 ) 6,943 6,670 Valuation allowance (6,943 ) (6,774 ) Net $ - $ (104 ) For the year ended December 31, 2018, the Company had approximately $27,912 and $16,118 of federal and state net operating loss carryovers (" NOL The change in the valuation allowance for the years ended December 31, 2018 and December 31, 2017 was $169 and $(4,111), 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 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, 2018, 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 2018 and no liabilities for uncertain tax positions as of December 31, 2018. 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, 2018 and 2017. 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, 2015. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 16 – Subsequent Events On February 1, 2019, the Company completed the sale of the Old Bridge Facility to Jake Brown Road, LLC (the “ Buyer Lease The sale of the Old Bridge Facility was made pursuant to an Agreement of Sale dated as of August 3, 2018 as amended and extended (collectively, the “ Sale Agreement In connection with the completion of the sale of the Old Bridge Facility and entry into the Lease, the Company, R. L. Drake Holdings, LLC, a wholly-owned subsidiary of the Company (“ RLD Far East Credit Parties Consent Sterling Loan Agreement Discharge 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. The Company is obligated to pay base rent of approximately $837 for the first year of the lease with the amount of base rent adjusted for each subsequent year to equal 102.5% of the preceding year’s base rent. The Lease will be accounted for under Topic 842 as described in Note 1. On January 24, 2019, the Company and RLD (with the Company, collectively, the “ Borrower Conversion and Termination Agreement RJP Initial Lenders Supplemental Lenders Lenders Agent As of the date of the Conversion and Termination Agreement, the Borrower was indebted to Steven L. Shea ( “Shea Shea Indebtedness In connection with the anticipated completion of the sale of the Old Bridge Facility, the Borrower, the Lenders and the Agent entered into the Conversion and Termination Agreement to provide for (i) the full payment of the Shea Indebtedness (unless such amounts were converted into shares of common stock prior to repayment), (ii) the termination of the Additional Commitment and (iii) the release and termination of all liens and security interests in the collateral under the Subordinated Loan Documents, including with respect to the Subordinated Mortgages, each to become effective as of the closing of the sale of the Old Bridge Facility. In connection with the execution and delivery of the Conversion and Termination Agreement by the Borrower, the Lenders and the Agent, Shea provided the Company with a notice of conversion, and upon completion of the sale of the Old Bridge Facility was issued 260 shares of Company common stock in full satisfaction of the Shea Indebtedness. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
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 investments 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, 2018 and 2017. 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, 2018. 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, 2018 are as follows: Description Cost Accumulated Net Amount Customer relationships $ 1,365 $ 944 $ 421 Proprietary technology 349 242 107 Non-compete agreements 248 248 - Amortized intangible assets 1,962 1,434 528 Non-Amortized Trade name 741 - 741 Total $ 2,703 $ 1,434 $ 1,269 The components of intangible assets that are carried at cost less accumulated amortization at December 31, 2017 are as follows: Description Cost Accumulated 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 Amortization is computed utilizing the straight-line method over the estimated useful lives of 10 years for customer relationships, 10 years for proprietary technology, and 3 years for non-compete agreements. Amortization expense for intangible assets was $171 for both years ended December 31, 2018 and 2017, respectively. Intangible asset amortization is projected to be approximately $171 per year in 2019, 2020 and 2021, respectively and $15 in 2022. |
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 2018 and 2017. |
Treasury Stock | (h) 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 2018 and 2017, 81 shares and 92 shares, respectively of common stock were reissued from treasury. |
Significant Risks and Uncertainties | (i) 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, 2018, approximately 28% of the Company’s employees were covered by a collective bargaining agreement, that is scheduled to expire in February 2023. The Company’s digital video headend products accounted for approximately 48% and 41% of the Company’s revenues in the years ended December 31, 2018 and 2017, respectively. |
Royalty and License Expense | (j) 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 $45 and $77 for the years ended December 31, 2018 and 2017, 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, 2018 2017 License agreements $ 6,005 $ 5,985 Accumulated amortization (5,993 ) (5,956 ) $ 12 $ 29 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 $38 and $150 in the years ended December 31, 2018 and 2017, respectively. Amortization expense for license fees is projected to be approximately $12 in the year ending December 31, 2019. |
Foreign Exchange | (k) 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, 2018 and 2017 and cumulative translation gains and losses as of December 31, 2018 and 2017 were not material. |
Research and Development | (l) Research and Development Research and development expenditures for the Company’s projects are expensed as incurred. |
Revenue Recognition | (m) Revenue Recognition The Company generates revenue through the sale of products and services. Revenue is recognized based on the following steps: (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. 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. The Company provides a three-year warranty on most products. Warranty expense was de minimis |
Stock-based compensation | (n) 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 | (o) 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 the United States and New Jersey, along with certain other jurisdictions. |
Earnings (loss) Per Share | (p) 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, warrants and convertible debt of 1,157. 100 and 257 and 1,256, 100 and 1,156 for the year ended December 31, 2018 and 2017, respectively. These shares were excluded due to their antidilutive effect. |
Other Comprehensive Income (loss) | (q) 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 | (r) 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 additional recognized or non-recognized subsequent events that would require adjustment to or disclosure in the consolidated financial statements. |
Adoption of Recent Accounting Pronouncements | (s) 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 In May 2017, the FASB issued ASU No. 2017-09, Compensation–Stock Compensation (Topic 718): Scope of Modification Accounting |
Accounting Pronouncements Issued But Not Yet Effective | (t) 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 No. 2016-02, Leases (Topic 842) Codification Improvements to Topic 842, Leases 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 In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326) changes the impairment model for most financial assets, and will require the use of an expected loss model in place of the currently used incurred loss method. Under this model, entities will be required to estimate the lifetime expected credit loss on such instruments and record an allowance to offset the amortized cost basis of the financial asset, resulting in a net presentation of the amount expected to be collected on the financial asset. The update to the standard is effective for interim and annual periods beginning after December 15, 2019. The Company is currently evaluating the effect this new standard will have on its financial position, results of operations or financial statement disclosure. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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 $ 944 $ 421 Proprietary technology 349 242 107 Non-compete agreements 248 248 - Amortized intangible assets 1,962 1,434 528 Non-Amortized Trade name 741 - 741 Total $ 2,703 $ 1,434 $ 1,269 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 |
Schedule of intangible assets consisting of license agreements that are carried at cost less accumulated amortization | December 31, 2018 2017 License agreements $ 6,005 $ 5,985 Accumulated amortization (5,993 ) (5,956 ) $ 12 $ 29 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Schedule of Disaggregation of Revenue | Years ended December 31, 2018 2017 Digital video headend products $ 10,494 $ 9,438 Data products 4,583 6,942 HFC distribution products 3,217 3,343 Analog video headend products 1,661 1,819 Contract manufactured products 791 838 Other 961 903 $ 21,707 $ 23,283 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | December 31, 2018 2017 Raw materials $ 2,581 $ 1,869 Work in process 1,573 1,793 Finished goods 2,569 2,684 6,723 6,346 Less current inventory (6,172 ) (5,496 ) $ 551 $ 850 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, plant and equipment | December 31, 2018 2017 Land $ 1,000 $ 1,000 Building 3,361 3,361 Machinery and equipment 10,636 10,530 Furniture and fixtures 440 437 Office equipment 2,401 2,439 Building improvements 1,458 1,433 19,296 19,200 Less: Accumulated depreciation and amortization (16,406 ) (16,094 ) $ 2,890 $ 3,106 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt | December 31, 2018 2017 Term loan - repaid in full on February1, 2019 $ 3,053 $ 3,286 Capital leases (Note 7) 54 57 3,107 3,343 Less: Current portion (3,075 ) (249 ) $ 32 $ 3,094 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future minimum rental payments | Capital Operating 2019 $ 26 $ 134 2020 23 107 2021 11 75 2022 - 2 2023 - - Thereafter - - Total future minimum lease payments 60 $ 318 Less: amounts representing interest (6 ) Present value of minimum lease payments $ 54 |
Equity Incentive Plans (Tables)
Equity Incentive Plans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of fair value of employee stock options estimated using the weighted-average assumptions | Years ended December 31, 2018 2017 Fair value of the company's common stock on date of grant $ 0.95 $ 0.54 Expected term 6.5 years 6.5 years Risk free interest rate 2.92 % 2.02 % Dividend yield 0.00 % 0.00 % Volatility 79.0 % 79.0 % Fair value of options granted $ 0.68 $ 0.38 |
Schedule of total stock-based compensation costs recognized | Years ended December 31, 2018 2017 Cost of goods sold $ 38 $ 34 Selling expenses 74 33 General and administrative 263 274 Research and development 118 45 Total $ 493 $ 386 |
Schedule of stock-based awards outstanding | Plan Stock Restricted Total 2016 Employee Plan 1,452 48 1,500 2016 Director Plan 199 - 199 Other 500 500 2005 Employee Plan 1,181 88 1,269 2005 Director Plan 324 - 324 3,656 136 3,792 Stock-based awards available for grant as of December 31, 2018 1,271 |
Schedule of stock options award activity | Number of Weighted- Weighted- Aggregate Outstanding at January 1, 2018 2,269 $ 0.83 Options granted 1,546 0.95 Options exercised (94 ) 0.70 Options forfeited (23 ) 0.80 Options expired (42 ) 1.23 Outstanding at December 31, 2018 3,656 $ 0.88 7.4 $ 1,023 Exercisable at December 31, 2018 1,592 $ 0.97 5.3 $ 397 |
Schedule of restricted stock award activity | Number of Weighted- Unvested restricted stock awards outstanding at January1, 2018 381 $ 0.64 Restricted stock awards granted 476 1.06 Restricted stock awards vested (315 ) 0.66 Restricted stock awards forfeited (406 ) 1.10 Unvested restricted stock awards outstanding at December 31, 2018 136 $ 0.71 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of provision (benefit) for income taxes | 2018 2017 Current: Federal $ - $ - State and local 27 17 27 17 Deferred: Federal (270 ) 4,086 State and local (3 ) (10 ) (273 ) 4,076 Valuation allowance 169 4,111 Provision for income taxes $ (77 ) $ (18 ) |
Schedule of provision (benefit) for income taxes federal statutory rates | 2018 2017 Provision (benefit) for Federal income taxes at the statutory rate $ (297 ) $ (137 ) State and local income taxes, net of Federal benefit (11 ) 10 Permanent differences: Other 62 147 Change in valuation allowance 169 (4,111 ) Rate differential - 4,078 Other - (5 ) Provision (benefit) for income taxes $ (77 ) $ (18 ) |
Schedule of components of deferred income tax assets | December 31, 2018 2017 Deferred tax assets: $ 11 $ 38 Allowance for doubtful accounts Inventories 771 746 Intangible 112 105 Share based compensation 125 70 Net operating loss carry forward 6,109 5,874 Other 2 1 Total deferred tax assets 7,130 6,834 Deferred tax liabilities: Depreciation (60 ) (44 ) Intangible (4 ) (4 ) Pension liability (1 ) (12 ) Indefinite life intangibles (122 ) (104 ) Total deferred tax liabilities (187 ) (164 ) 6,943 6,670 Valuation allowance (6,943 ) (6,774 ) Net $ - $ (104 ) |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule of intangible assets that are carried at cost less accumulated amortization | ||
Cost | $ 2,703 | $ 2,703 |
Accumulated Amortization | 1,434 | 1,262 |
Net Amount | 1,269 | 1,441 |
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 |
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 | ||
Proprietary Technology [Member] | ||
Schedule of intangible assets that are carried at cost less accumulated amortization | ||
Cost | 349 | 349 |
Accumulated Amortization | 242 | 206 |
Net Amount | 107 | 143 |
Customer Relationships [Member] | ||
Schedule of intangible assets that are carried at cost less accumulated amortization | ||
Cost | 1,365 | 1,365 |
Accumulated Amortization | 944 | 808 |
Net Amount | 421 | 557 |
Amortized Intangible Assets [Member] | ||
Schedule of intangible assets that are carried at cost less accumulated amortization | ||
Cost | 1,962 | 1,962 |
Accumulated Amortization | 1,434 | 1,262 |
Net Amount | $ 528 | $ 700 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details 1) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule of intangible assets consisting of license agreements that are carried at cost less accumulated amortization | ||
License agreements | $ 6,005 | $ 5,985 |
Accumulated amortization | (5,993) | (5,956) |
License agreements, Net | $ 12 | $ 29 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | |
Summary of Significant Accounting Policies (Textual) | |||
Amortization expense for intangible assets | $ 171 | $ 171 | |
Intangible asset amortization in 2019 | 171 | ||
Intangible asset amortization in 2020 | 171 | ||
Intangible asset amortization in 2021 | 171 | ||
Intangible asset amortization in 2022 | $ 15 | ||
Percentage of employees were covered by collective bargaining arrangement | 28.00% | ||
Royalty expense | $ 45 | 77 | |
Amortization expense | $ 209 | $ 321 | |
Stock reissued from treasury | 81 | 92 | |
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 | ||
Digital Video Headend Products [Member] | |||
Summary of Significant Accounting Policies (Textual) | |||
Concentration risk, percentage | 48.00% | 41.00% | |
Convertible Debt [Member] | |||
Summary of Significant Accounting Policies (Textual) | |||
Incremental shares | 257 | 1,156 | |
Warrant [Member] | |||
Summary of Significant Accounting Policies (Textual) | |||
Incremental shares | 100 | 100 | |
Employee Stock Option [Member] | |||
Summary of Significant Accounting Policies (Textual) | |||
Incremental shares | 1,157 | 1,256 | |
Expected lives term | 6 years 6 months | 6 years 6 months | |
Dividend yield | $ 0 | $ 0 | |
Weighted average volatility rate | 79.00% | 79.00% | |
Risk free interest rate | 2.92% | 2.02% | |
Office Equipment [Member] | Maximum [Member] | |||
Summary of Significant Accounting Policies (Textual) | |||
Property, plant and equipment, estimated useful lives | 5 years | ||
Office Equipment [Member] | Minimum [Member] | |||
Summary of Significant Accounting Policies (Textual) | |||
Property, plant and equipment, estimated useful lives | 3 years | ||
Furniture and Fixtures [Member] | Maximum [Member] | |||
Summary of Significant Accounting Policies (Textual) | |||
Property, plant and equipment, estimated useful lives | 7 years | ||
Furniture and Fixtures [Member] | Minimum [Member] | |||
Summary of Significant Accounting Policies (Textual) | |||
Property, plant and equipment, estimated useful lives | 5 years | ||
Machinery and Equipment [Member] | Maximum [Member] | |||
Summary of Significant Accounting Policies (Textual) | |||
Property, plant and equipment, estimated useful lives | 10 years | ||
Machinery and Equipment [Member] | Minimum [Member] | |||
Summary of Significant Accounting Policies (Textual) | |||
Property, plant and equipment, estimated useful lives | 6 years | ||
Building Improvements [Member] | Maximum [Member] | |||
Summary of Significant Accounting Policies (Textual) | |||
Property, plant and equipment, estimated useful lives | 15 years | ||
Building Improvements [Member] | Minimum [Member] | |||
Summary of Significant Accounting Policies (Textual) | |||
Property, plant and equipment, estimated useful lives | 10 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 2019 | $ 12 | ||
Amortization expense | $ 38 | $ 150 | |
License [Member] | Maximum [Member] | |||
Summary of Significant Accounting Policies (Textual) | |||
Amortization of license fees, estimated useful life | 2 years | ||
License [Member] | Minimum [Member] | |||
Summary of Significant Accounting Policies (Textual) | |||
Amortization of license fees, estimated useful life | 1 year |
Revenue (Details)
Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue Recognition and Deferred Revenue [Abstract] | ||
Digital video headend products | $ 10,494 | $ 9,438 |
Data products | 4,583 | 6,942 |
HFC distribution products | 3,217 | 3,343 |
Analog video headend products | 1,661 | 1,819 |
Contract manufactured products | 791 | 838 |
Other | 961 | 903 |
Total | $ 21,707 | $ 23,283 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Summary of inventories | ||
Raw materials | $ 2,581 | $ 1,869 |
Work in process | 1,573 | 1,793 |
Finished goods | 2,569 | 2,684 |
Inventories, gross | 6,723 | 6,346 |
Less current inventory | (6,172) | (5,496) |
Inventories, net | $ 551 | $ 850 |
Inventories (Details Textual)
Inventories (Details Textual) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Inventories (Details Textual) | ||
Carrying amount of inventories to net realizable | $ 2,614 | $ 2,606 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Summary of property, plant and equipment | ||
Land | $ 1,000 | $ 1,000 |
Building | 3,361 | 3,361 |
Machinery and equipment | 10,636 | 10,530 |
Furniture and fixtures | 440 | 437 |
Office equipment | 2,401 | 2,439 |
Building improvements | 1,458 | 1,433 |
Property, plant and equipment, gross | 19,296 | 19,200 |
Less: Accumulated depreciation and amortization | (16,406) | (16,094) |
Property, plant and equipment, Net | $ 2,890 | $ 3,106 |
Property, Plant and Equipment_3
Property, Plant and Equipment (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment (Textual) | ||
Depreciation expense | $ 312 | $ 321 |
Debt (Details)
Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Disclosure [Abstract] | ||
Term loan - repaid in full on February1, 2019 | $ 3,053 | $ 3,286 |
Capital leases (Note 7) | 54 | 57 |
Total | 3,107 | 3,343 |
Less: Current portion | (3,075) | (249) |
Long-term debt | $ 32 | $ 3,094 |
Debt (Details Textual)
Debt (Details Textual) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Mar. 29, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 28, 2016 | |
Debt (Textual) | ||||
Outstanding balances under revolver | $ 2,603 | $ 2,487 | ||
Annual maturities of long term debt in 2019 | 3,075 | |||
Annual maturities of long term debt in 2020 | 21 | |||
Annual maturities of long term debt in 2021 | $ 11 | |||
Sterling National Bank [Member] | ||||
Debt (Textual) | ||||
Aggregate amount of credit facility | $ 8,500 | |||
Subordinated indebtedness, description | (i) the minimum liquidity described above 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 | |||
Loan and Security Agreement, describtion | The Company and Sterling entered into a certain Second Amendment to Loan and Security Agreement (the "Second Amendment"), which replaced the existing fixed charge coverage ratio covenant with a minimum liquidity covenant. That covenant obligates the Company to not permit the sum of its unrestricted cash (as described in the Second Amendment) plus availability under the Revolver to drop below $2,000,000 at any time. | |||
Term Loan Credit Facility [Member] | Sterling National Bank [Member] | ||||
Debt (Textual) | ||||
Aggregate amount of credit facility | 3,500 | |||
Interest on revolver - margin | 4.50% | |||
Term loan amortize rate | $ 19 | |||
Variable rate basis, description | Interest on the Term Loan also is variable, based upon the 30-day LIBOR rate (2.52% at December 31, 2018) plus a margin of 4.50% | |||
Revolving Credit Facility [Member] | Sterling National Bank [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 (2.52% at December 31, 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 | 12 Months Ended | ||||||
Oct. 31, 2018 | Oct. 09, 2018 | Apr. 30, 2018 | Apr. 17, 2018 | Mar. 28, 2016 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Subordinated Convertible Debt with Related Parties (Textual) | |||||||||
Subordinated lenders advanced amount | $ 50 | $ 500 | $ 500 | ||||||
Term loan facility | $ 750 | ||||||||
Subordinated loan facility, interest accrues | 12.00% | ||||||||
Conversion price | $ 0.54 | ||||||||
Conversion of loan amount | $ 522 | $ 67 | $ 522 | $ 455 | |||||
Principal amount | 50 | 350 | |||||||
Accrued interest | $ 17 | $ 105 | |||||||
Common stock shares converted | 125 | 842 | |||||||
Incurred interest | 37 | 71 | |||||||
Derivative liability | $ 260 | ||||||||
Change in derivative liability (expense) | $ (142) | ||||||||
Modification in additional paid-in capital due to change in derivative liability | $ 402 | ||||||||
PIK interest accrued | $ 39 | $ 124 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2019-Capital | $ 26 |
2020-Capital | 23 |
2021-Capital | 11 |
2022-Capital | |
2023-Capital | |
Thereafter-Capital | |
Total future minimum lease payments | 60 |
Less: amounts representing interest | (6) |
Present value of minimum lease payments | 54 |
2019-Operating | 134 |
2020-Operating | 107 |
2021-Operating | 75 |
2022-Operating | 2 |
2023-Operating | |
Thereafter-Operating | |
Total future minimum lease payments | $ 318 |
Commitments and Contingencies_3
Commitments and Contingencies (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Commitments and Contingencies (Textual) | ||
Capital leased assets, gross | $ 96 | $ 86 |
Accumulated amortization | 45 | 23 |
Operating leases, rent expense | $ 149 | $ 199 |
Lease expiration date | Jul. 31, 2022 |
Benefit Plans (Details)
Benefit Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Retirement Benefits [Abstract] | ||
Contributions plan amount | $ 155 | $ 157 |
Total expense | 48 | 9 |
Defined benefit pension plan was overfunded | $ 288 | $ 314 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Mar. 28, 2016 | |
Related Party Transactions (Textual) | |||
Legal services | $ 752 | $ 358 | |
Accounts payable | $ 0 | $ 25 | |
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, 2018 | Dec. 31, 2017 | |
Accounts Receivable [Member] | ||
Concentration of Credit Risk (Textual) | ||
Concentration risk, percentage | 47.00% | 65.00% |
Number of customers | 3 | 4 |
Accounts Receivable [Member] | Customer One [Member] | ||
Concentration of Credit Risk (Textual) | ||
Concentration risk, percentage | 22.00% | 26.00% |
Number of customers | 1 | 1 |
Accounts Receivable [Member] | Customer Two [Member] | ||
Concentration of Credit Risk (Textual) | ||
Concentration risk, percentage | 14.00% | 19.00% |
Number of customers | 1 | 1 |
Accounts Receivable [Member] | Customer Three [Member] | ||
Concentration of Credit Risk (Textual) | ||
Concentration risk, percentage | 11.00% | 10.00% |
Number of customers | 1 | 2 |
Sales [Member] | United States [Member] | ||
Concentration of Credit Risk (Textual) | ||
Concentration risk, percentage | 4.00% | 7.00% |
Sales [Member] | One Customer [Member] | ||
Concentration of Credit Risk (Textual) | ||
Concentration risk, percentage | 23.00% | 34.00% |
Number of customers | 1 | 1 |
Sales [Member] | Two Customer [Member] | ||
Concentration of Credit Risk (Textual) | ||
Concentration risk, percentage | 14.00% | 13.00% |
Number of customers | 1 | 1 |
Stock Repurchase Program (Detai
Stock Repurchase Program (Details) - USD ($) shares in Thousands, $ in Thousands | Dec. 31, 2018 | Jun. 16, 2014 | Feb. 13, 2007 | Jul. 24, 2002 |
Stock Repurchase Program (Textual) | ||||
Outstanding common stock to be repurchased | 13 | 250 | ||
Common Stock [Member] | 2002 Program [Member] | ||||
Stock Repurchase Program (Textual) | ||||
Value of outstanding common stock to be repurchased | $ 72 | $ 300 | ||
Outstanding common stock to be repurchased | 100 | |||
Common Stock [Member] | 2007 Program [Member] | ||||
Stock Repurchase Program (Textual) | ||||
Outstanding common stock to be repurchased | 100 |
Executive Stock Purchase Plan (
Executive Stock Purchase Plan (Details) - shares shares in Thousands | Dec. 31, 2018 | Jun. 16, 2014 |
Executive Stock Purchase Plan (Textual) | ||
Number of shares repurchase | 13 | 250 |
Preferred Stock (Details)
Preferred Stock (Details) - shares shares in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Preferred Stock (Textual) | ||
Preferred stock, shares authorized | 5,000 | 5,000 |
Preferred stock, shares outstanding |
Equity Incentive Plans (Details
Equity Incentive Plans (Details) - Employee Stock Option [Member] - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair value of the company's common stock on date of grant | $ 0.95 | $ 0.54 |
Expected term | 6 years 6 months | 6 years 6 months |
Risk free interest rate | 2.92% | 2.02% |
Dividend yield | $ 0 | $ 0 |
Volatility | 79.00% | 79.00% |
Fair value of options granted | $ 0.68 | $ 0.38 |
Equity Incentive Plans (Detai_2
Equity Incentive Plans (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total | $ 493 | $ 386 |
Cost of goods sold [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total | 38 | 34 |
Selling expenses [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total | 74 | 33 |
General and administrative [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total | 263 | 274 |
Research and development [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total | $ 118 | $ 45 |
Equity Incentive Plans (Detai_3
Equity Incentive Plans (Details 2) - shares | Dec. 31, 2018 | Dec. 31, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based awards outstanding | 3,792 | |
Stock-based awards available for grant as of December 31, 2018 | 1,271 | |
2016 Employee Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based awards outstanding | 1,500 | |
2016 Director Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based awards outstanding | 199 | |
2005 Employee Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based awards outstanding | 1,269 | |
2005 Director Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based awards outstanding | 324 | |
Stock Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based awards outstanding | 3,656 | 2,269,000 |
Stock Option [Member] | 2016 Employee Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based awards outstanding | 1,452 | |
Stock Option [Member] | 2016 Director Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based awards outstanding | 199 | |
Stock Option [Member] | 2005 Employee Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based awards outstanding | 1,181 | |
Stock Option [Member] | 2005 Director Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based awards outstanding | 324 | |
Stock Option [Member] | Other [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based awards outstanding | 500 | |
Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based awards outstanding | 136 | |
Restricted Stock [Member] | 2016 Employee Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based awards outstanding | 48 | |
Restricted Stock [Member] | 2016 Director Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based awards outstanding | ||
Restricted Stock [Member] | 2005 Employee Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based awards outstanding | 88 | |
Restricted Stock [Member] | 2005 Director Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based awards outstanding | ||
Restricted Stock [Member] | Other [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based awards outstanding | ||
Other [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based awards outstanding | 500 |
Equity Incentive Plans (Detai_4
Equity Incentive Plans (Details 3) $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares, Outstanding, Ending balance | 3,792 |
Stock options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares, Outstanding, Beginning balance | 2,269,000 |
Number of shares, Options granted | 1,546,000 |
Number of shares, Options exercised | (94,000) |
Number of shares, Options forfeited | (23,000) |
Number of shares, Options expired | (42,000) |
Number of shares, Outstanding, Ending balance | 3,656 |
Number of shares, Exercisable | 1,592,000 |
Weighted-Average Exercise Price, Outstanding, Beginning balance | $ / shares | $ .83 |
Weighted-Average Exercise Price, Options granted | $ / shares | 0.95 |
Weighted-Average Exercise Price, Options exercised | $ / shares | .70 |
Weighted-Average Exercise Price, Options forfeited | $ / shares | .80 |
Weighted-Average Exercise Price, Options expired | $ / shares | 1.23 |
Weighted-Average Exercise Price, Outstanding, Ending balance | $ / shares | .87 |
Weighted-Average Exercise Price, Exercisable | $ / shares | $ .97 |
Weighted-Average Contractual Term, Outstanding | 7 years 4 months 24 days |
Weighted-Average Contractual Term, Exercisable | 5 years 3 months 19 days |
Aggregate Intrinsic Value, Outstanding | $ | $ 1,023 |
Aggregate Intrinsic Value, Exercisable | $ | $ 397 |
Equity Incentive Plans (Detai_5
Equity Incentive Plans (Details 4) - Restricted Stock [Member] shares in Thousands | 12 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares, Unvested restricted stock awards outstanding, Beginning balance | shares | 381 |
Number of shares, Restricted stock awards granted | shares | 476 |
Number of shares, Restricted stock awards vested | shares | (315) |
Number of shares, Restricted stock awards forfeited | shares | (406) |
Number of shares, Unvested restricted stock awards outstanding, Ending balance | shares | 136 |
Weighted-Average Grant Date Fair Value per Share, Unvested restricted stock awards outstanding, Beginning balance | $ / shares | $ .64 |
Weighted-Average Grant Date Fair Value per Share, Restricted stock awards granted | $ / shares | 1.06 |
Weighted-Average Grant Date Fair Value per Share, Restricted stock awards vested | $ / shares | .66 |
Weighted-Average Grant Date Fair Value per Share, Restricted stock awards forfeited | $ / shares | 1.10 |
Weighted-Average Grant Date Fair Value per Share, Unvested restricted stock awards outstanding, Ending balance | $ / shares | $ .71 |
Equity Incentive Plans (Detai_6
Equity Incentive Plans (Details Textual) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | Sep. 14, 2018 | Apr. 23, 2018 | May 31, 2017 | May 31, 2016 | May 31, 2014 | Aug. 31, 2012 | Dec. 31, 2018 | Jun. 30, 2018 | May 31, 2010 | May 31, 2007 | May 31, 2005 |
COO [Member] | |||||||||||
Equity Incentive Plans (Textual) | |||||||||||
Stock price | $ 1.05 | ||||||||||
Restricted common stock, Shares | 100 | ||||||||||
Restricted stock forfeited, Shares | 400 | ||||||||||
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. | ||||||||||
Restricted Stock [Member] | |||||||||||
Equity Incentive Plans (Textual) | |||||||||||
Common stock to its employees and directors | 476 | ||||||||||
Fair value option | $ 506 | ||||||||||
Stock options [Member] | |||||||||||
Equity Incentive Plans (Textual) | |||||||||||
Stock price | $ 1.11 | ||||||||||
Common stock to its employees and directors | 1,546 | ||||||||||
Fair value option | $ 1,051 | ||||||||||
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 | ||||||||||
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 | ||||||||||
Two Zero Zero Five Director Equity Incentive Plan [Member] | |||||||||||
Equity Incentive Plans (Textual) | |||||||||||
Maximum equity based shares authorized | 600 | 400 | 200 | ||||||||
Restatement of employee plan extend term | Feb. 7, 2024 | ||||||||||
Two Zero Zero Five Employee Equity Incentive Plan [Member] | |||||||||||
Equity Incentive Plans (Textual) | |||||||||||
Maximum equity based shares authorized | 2,600 | 2,700 | 1,600 | 1,100 | 500 | ||||||
Restatement of employee plan extend term | Feb. 7, 2024 | ||||||||||
2016 Employee Plan [Member] | |||||||||||
Equity Incentive Plans (Textual) | |||||||||||
Maximum equity based shares authorized | 3,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Current: | ||
Federal | ||
State and local | 27 | 17 |
Total current income taxes | 27 | 17 |
Deferred: | ||
Federal | (270) | 4,086 |
State and local | (3) | (10) |
Total deferred income taxes | (273) | 4,076 |
Valuation allowance | (169) | 4,111 |
Provision for income taxes | $ (77) | $ (18) |
Income Taxes (Details 1)
Income Taxes (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||
Provision (benefit) for Federal income taxes at the statutory rate | $ (297) | $ (137) |
State and local income taxes, net of Federal benefit | (11) | 10 |
Permanent differences: | ||
Other | 62 | 147 |
Change in valuation allowance | 169 | (4,111) |
Rate differential | 4,078 | |
Other | (5) | |
Provision for income taxes | $ (77) | $ (18) |
Income Taxes (Details 2)
Income Taxes (Details 2) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets: | ||
Allowance for doubtful accounts | $ 11 | $ 38 |
Inventories | 771 | 746 |
Intangible | 112 | 105 |
Share based compensation | 125 | 70 |
Net operating loss carry forward | 6,109 | 5,874 |
Other | 2 | 1 |
Total deferred tax assets | 7,130 | 6,834 |
Deferred tax liabilities: | ||
Depreciation | (60) | (44) |
Intangible | (4) | (4) |
Pension liability | (1) | (12) |
Indefinite life intangibles | (122) | (104) |
Total deferred tax liabilities | (187) | (164) |
Deferred tax assets gross | 6,943 | 6,670 |
Valuation allowance | (6,943) | (6,774) |
Net | $ (104) |
Income Taxes (Details Textual)
Income Taxes (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Taxes (Textual) | ||
Federal net operating loss carryovers | $ 27,912 | |
Operating loss expiry date | Dec. 31, 2022 | |
Change in valuation allowance | $ 169 | $ (4,111) |
Corporate income tax rate | 21.00% | |
Reduction in net deferred tax | $ 4,100 | |
Provision (benefit) for income taxes | (77) | $ (18) |
Federal NOL carryovers | $ 916 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Events [Member] - USD ($) $ in Thousands | Feb. 01, 2019 | Jan. 24, 2019 |
Subsequent Events (Textual) | ||
Amount received from buyer | $ 10,500 | |
Advanced to buyer | 130 | |
Gain on sale | $ 7,909 | |
Term Loan, description | The Company paid approximately $3,014 to pay off the Term Loan in connection with the Discharge. In addition, the Company paid off the outstanding balance under the Revolver of approximately $2,086. | |
Payment of base rent, description | The Company is obligated to pay base rent of approximately $837 for the first year of the lease with the amount of base rent adjusted for each subsequent year to equal 102.5% of the preceding year's base rent. | |
Principal and accrued interest | $ 100 | |
Additional commitment | $ 250 | |
Issue of common stock for indebtedness | 260 |