Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | May 06, 2019 | |
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-Q | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2019 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Ex Transition Period | false | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 9,595,215 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash | $ 1,628 | $ 559 |
Accounts receivable, net of allowance for doubtful accounts of $49 and $53 as of March 31, 2019 and December 31,2018, respectively | 1,864 | 2,654 |
Inventories, current | 6,780 | 6,172 |
Prepaid benefit costs | 288 | 288 |
Deferred loan costs | 112 | 149 |
Prepaid and other current assets | 831 | 555 |
Total current assets | 11,503 | 10,377 |
Inventories, net non-current | 551 | |
Property, plant and equipment, net | 263 | 2,890 |
License agreements, net | 7 | 12 |
Intangible assets, net | 1,227 | 1,269 |
Goodwill | 493 | 493 |
Right of use assets,net | 3,859 | |
Other assets, net | 791 | 9 |
Total assets | 18,143 | 15,601 |
Current liabilities: | ||
Line of credit | 2,603 | |
Current portion of long-term debt | 24 | 3,075 |
Current portion of lease liability | 653 | |
Accounts payable | 934 | 1,523 |
Accrued compensation | 335 | 332 |
Income taxes payable | 28 | 28 |
Other accrued expenses | 201 | 702 |
Total current liabilities | 2,175 | 8,263 |
Subordinated convertible debt with related parties | 139 | |
Lease liability, net of current portion | 3,157 | |
Long-term debt, net of current portion | 30 | 32 |
Total liabilities | 5,362 | 8,434 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred stock, $.001 par value; authorized 5,000 shares; no shares outstanding as of March 31, 2019 and December 31, 2018 | ||
Common stock, $.001 par value; authorized 25,000 shares, 9,768 and 9,508 shares issued, 9,595 and 9,335 shares outstanding as of March 31, 2019 and December 31, 2018, respectively | 9 | 9 |
Paid-in capital | 28,199 | 27,910 |
Accumulated deficit | (13,853) | (19,178) |
Accumulated other comprehensive loss | (832) | (832) |
Treasury stock, at cost, 173 shares as of March 31, 2019 and December 31, 2018, | (742) | (742) |
Total stockholders' equity | 12,781 | 7,167 |
Total liabilities and stockholders' equity | $ 18,143 | $ 15,601 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 53 | $ 53 |
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 | 9,768 | 9,508 |
Common stock, shares outstanding | 9,595 | 9,335 |
Treasury stock, shares | 173 | 173 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Statement [Abstract] | ||
Net sales | $ 4,082 | $ 5,363 |
Cost of goods sold | 2,991 | 3,140 |
Gross profit | 1,091 | 2,223 |
Operating expenses: | ||
Selling | 727 | 603 |
General and administrative | 1,466 | 876 |
Research and development | 665 | 657 |
Total operating expenses | 2,858 | 2,136 |
Operating (loss) income | (1,767) | 87 |
Other expense -net | (83) | (150) |
Gain on building sale | 7,175 | |
Earnings (loss) before income taxes | 5,325 | (63) |
Provision for income taxes | ||
Net earnings (loss) | $ 5,325 | $ (63) |
Basic net earnings (loss) per share | $ 0.56 | $ (0.01) |
Diluted net earnings (loss) per share | $ 0.53 | $ (0.01) |
Basic weighted average shares outstanding | 9,506,000 | 8,211,000 |
Diluted weighted average shares outstanding | 10,076,000 | 8,211,000 |
Condensed Consolidated Statem_2
Condensed 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, 2017 | $ 8 | $ 26,920 | $ (17,821) | $ (854) | $ (840) | $ 7,413 |
Balance, shares at Dec. 31, 2017 | 8,465 | |||||
Net earnings loss | (63) | (63) | ||||
Conversion of subordinated convertible debt | 140 | |||||
Stock-based Compensation | 84 | 84 | ||||
Balance at Mar. 31, 2018 | $ 8 | 27,004 | (17,884) | (854) | (840) | 7,434 |
Balance, shares at Mar. 31, 2018 | 8,465 | |||||
Balance at Dec. 31, 2018 | $ 9 | 27,910 | (19,178) | (832) | (742) | 7,167 |
Balance, shares at Dec. 31, 2018 | 9,508 | |||||
Net earnings loss | 5,325 | 5,325 | ||||
Conversion of subordinated convertible debt | 140 | 140 | ||||
Conversion of subordinated convertible debt, shares | 260 | |||||
Stock-based Compensation | 149 | 149 | ||||
Balance at Mar. 31, 2019 | $ 9 | $ 28,199 | $ (13,853) | $ (832) | $ (742) | $ 12,781 |
Balance, shares at Mar. 31, 2019 | 9,768 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash Flows From Operating Activities: | ||
Net earnings (loss) | $ 5,325 | $ (63) |
Adjustments to reconcile net earnings (loss) to cash (used in) provided by operating activities: | ||
Gain on building sale | (7,175) | |
Stock compensation expense | 149 | 84 |
Depreciation | 52 | 79 |
Amortization | 48 | 57 |
Recovery of bad debt expense | (4) | (50) |
Amortization of loan fees | 37 | 36 |
Non cash interest expense | 1 | 19 |
Change in value of right to use assets | (49) | |
Changes in operating assets and liabilities: | ||
Accounts receivable | 794 | 301 |
Inventories | (57) | (205) |
Prepaid and other current assets | (276) | (186) |
Other assets | (782) | (1) |
Accounts payable, accrued compensation and other accrued expenses | (1,087) | 434 |
Net cash (used in) provided by operating activities | (3,024) | 505 |
Cash Flows From Investing Activities: | ||
Purchases of property and equipment | (10) | (14) |
Proceeds on sale of building | 9,765 | |
Acquisition of licenses | (1) | |
Net cash provided by (used in) investing activities | 9,754 | (14) |
Cash Flows From Financing Activities: | ||
Net repayments of line of credit | (2,603) | (358) |
Repayments of long-term debt | (3,058) | (63) |
Net cash used in financing activities | (5,661) | (421) |
Net increase in cash | 1,069 | 70 |
Cash, beginning of period | 559 | 168 |
Cash, end of period | 1,628 | 238 |
Supplemental Cash Flow Information: | ||
Cash paid for interest | 76 | 89 |
Non cash investing and financing activities: | ||
Capital expenditures financed by notes payable | 5 | 8 |
Conversion of subordinated convertible debt to common stock | $ 140 |
Company and Basis of Consolidat
Company and Basis of Consolidation | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Company and Basis of Consolidation | Note 1 – Company and Basis of Consolidation Blonder Tongue Laboratories, Inc. (together with its consolidated subsidiaries, the " Company The accompanying unaudited condensed consolidated financial statements as of March 31, 2019 and for the three months then ended March 31, 2019 and 2018 have been prepared in accordance with accounting principles generally accepted in the United States of America (" GAAP SEC |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2 – Summary of Significant Accounting Policies (a) Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company's significant estimates include stock-based compensation and reserves related to accounts receivable, inventories and deferred tax assets. Actual results could differ from those estimates. (b) Fair Value of Financial Instruments The Company measures fair value of its financial assets on a three-tier value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value: ● Level 1 – Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. ● Level 2 – Other inputs that are directly or indirectly observable in the marketplace. ● Level 3 – Unobservable inputs which are supported by little or no market activity. The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. (c) Earnings (loss) Per Share Earnings (loss) per share is calculated in accordance with ASC Topic 260 "Earnings Per Share," which provides for the calculation of "basic" and "diluted" earnings (loss) per share. Basic earnings (loss) per share includes no dilution and is computed by dividing net earnings (loss) by the weighted average number of common shares outstanding for the period. Diluted earnings (loss) per share reflect, in periods in which they have a dilutive effect, the effect of potential issuances of common shares. The following table shows the calculation of diluted shares using the treasury stock method: Three months ended 2019 2018 Shares used in computation of basic earnings (loss) per shares 9,506 8,211 Total dilutive effect of stock options 570 - Shares used in computation of diluted earnings (loss) per share 10,076 8,211 The diluted share base excludes the following incremental shares due to their antidilutive effect: Three months ended 2019 2018 Stock options 1,752 1,800 Warrants 100 100 Convertible debt - 1,190 1,852 3,090 (d) Adoption of Recent Accounting Pronouncements 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 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 August 2018, the FASB issued ASU No. 2018-13 Fair Value Measurement (Topic 820): Disclosure Framework- Changes to the Disclosure Requirements for Fair Value Measurement, which eliminates disclosure requirement regarding transfers between level 1 and level 2 of the fair value of hierarchy, however, adds disclosure requirements on the range and weighted average used to develop significant unobservable inputs for level 3 fair value measurements. The Company adopted the guidance on January 1, 2019, however, there was no adjustment required to its disclosures as it did not have fair value assets classified under level 2 or 3 as of March 31, 2019 and December 31, 2018. (e) Accounting Pronouncements Issued But Not Yet Effective In January 2017, the FASB issued ASU 2017-04, Intangibles—Goodwill and Other Topic 350 Simplifying the Test for Goodwill Impairment In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326) |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2019 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Revenue Recognition | Note 3 – Revenue Recognition 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: Three months ended 2019 2018 Digital video headend products $ 2,028 $ 2,543 Data products 540 1,399 HFC distribution products 646 741 Analog video headend products 474 330 Contract manufactured products 28 224 Set top boxes 191 - Other 175 126 $ 4,082 $ 5,363 All of the Company's sales are to customers located primarily throughout the United States and Canada. 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. Set top boxes are used by cable operators to provide video delivery to customers using IP technology. The Company also provides technical services, including hands-on training, system design engineering, on-site field support and complete system verification testing. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 4 – Inventories Inventories are summarized as follows: March 31, December 31, Raw Materials $ 2,002 $ 2,581 Work in process 2,219 1,573 Finished Goods 2,559 2,569 6,780 6,723 Less current inventories (6,780 ) (6,172 ) $ - $ 551 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 written down to net realizable value. The Company recorded a provision to reduce the carrying amounts of inventories to their net realizable value in the amount of $693 during the three months ended March 31, 2019. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2019 | |
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 On February 1, 2019, in connection with the completion of the sale of the Old Bridge Facility and entry into the Lease (as further described in Note 10), the Company entered into a Consent Under Loan and Security Agreement (the " Consent Discharge 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. The Company was in compliance with its covenants as of March 31, 2019. |
Subordinated Convertible Debt w
Subordinated Convertible Debt with Related Parties | 3 Months Ended |
Mar. 31, 2019 | |
Subordinated Borrowings [Abstract] | |
Subordinated Convertible Debt with Related Parties | Note 6 – Subordinated Convertible Debt with Related Parties On March 28, 2016, the Company and RLD as borrowers and Robert J. Pallé, as agent (in such capacity " Agent Subordinated Lenders Subordinated Loan Agreement Subordinated Loan Facility PIK Interest Subordinated Mortgage" Subordination Agreement 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 anticipated completion of the sale of the Old Bridge Facility (as described in Note 10), on January 24, 2019, the Company and RLD, as Borrower, the Lenders and the Agent entered into a Debt Conversion and Lien Termination Agreement (the " Conversion and Termination Agreement "Shea Shea Indebtedness Initial Lenders Additional Commitment |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 7 – Related Party Transactions 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 three month periods ended March 31, 2019 and 2018, this law firm billed the Company approximately $151 and $96, respectively for legal services provided by this firm. Included in accounts payable on the accompanying balance sheets at March 31, 2019 and December 31, 2018, is approximately $21 and zero, respectively, owed to this law firm. |
Concentration of Credit Risk
Concentration of Credit Risk | 3 Months Ended |
Mar. 31, 2019 | |
Risks and Uncertainties [Abstract] | |
Concentration of Credit Risk | Note 8 – Concentration of Credit Risk The following table summarizes credit risk with respect to customers as percentage of sales for the three month periods ending March 31, 2019 and 2018, respectively and as a percentage of accounts receivable as of March 31, 2019 and December 31, 2018, respectively: Net sales Three months ended Accounts Receivable March 31, March 31, December 31, 2019 2018 2019 2018 Customer A 14 % 16 % - 14 % Customer B 10 % 27 % 16 % 22 % Customer C 12 % - - - Customer D - - - 11 % Customer E - - 15 % - |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 9 – Commitments and Contingencies Leases The Company leases certain real estate, factory, and office equipment under non-cancellable operating leases at various dates through January, 2024. Maturities of the lease liabilities are as follows: Amount Amount remaining year ending December 31, 2019 $ 462 2020 768 2021 809 2022 809 2023 885 Thereafter 77 Lease liability $ 3,810 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 opinion of management, is likely to have a material adverse effect on the Company's business, financial condition, results of operations, or cash flows. |
Building Sale and Leaseback
Building Sale and Leaseback | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Building Sale and Leaseback | Note 10 – Building Sale and Leaseback 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 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 was accounted for under Topic 842 as described in Note 1. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 11 – Subsequent Events The Company evaluates events that have occurred after the balance sheet date but before the financial statements are issued. Based upon the evaluation, the Company did not identify any recognized or non-recognized subsequent events that would require adjustment to or disclosure in the condensed consolidated financial statements. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Use of Estimates | (a) Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company's significant estimates include stock-based compensation and reserves related to accounts receivable, inventories and deferred tax assets. Actual results could differ from those estimates. |
Fair Value of Financial Instruments | (b) Fair Value of Financial Instruments The Company measures fair value of its financial assets on a three-tier value hierarchy, which prioritizes the inputs, used in the valuation methodologies in measuring fair value: ● Level 1 – Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. ● Level 2 – Other inputs that are directly or indirectly observable in the marketplace. ● Level 3 – Unobservable inputs which are supported by little or no market activity. The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. |
Earnings (loss) Per Share | (c) Earnings (loss) Per Share Earnings (loss) per share is calculated in accordance with ASC Topic 260 "Earnings Per Share," which provides for the calculation of "basic" and "diluted" earnings (loss) per share. Basic earnings (loss) per share includes no dilution and is computed by dividing net earnings (loss) by the weighted average number of common shares outstanding for the period. Diluted earnings (loss) per share reflect, in periods in which they have a dilutive effect, the effect of potential issuances of common shares. The following table shows the calculation of diluted shares using the treasury stock method: Three months ended 2019 2018 Shares used in computation of basic earnings (loss) per shares 9,506 8,211 Total dilutive effect of stock options 570 - Shares used in computation of diluted earnings (loss) per share 10,076 8,211 The diluted share base excludes the following incremental shares due to their antidilutive effect: Three months ended 2019 2018 Stock options 1,752 1,800 Warrants 100 100 Convertible debt - 1,190 1,852 3,090 |
Adoption of Recent Accounting Pronouncements | (d) Adoption of Recent Accounting Pronouncements 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 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 August 2018, the FASB issued ASU No. 2018-13 Fair Value Measurement (Topic 820): Disclosure Framework- Changes to the Disclosure Requirements for Fair Value Measurement, which eliminates disclosure requirement regarding transfers between level 1 and level 2 of the fair value of hierarchy, however, adds disclosure requirements on the range and weighted average used to develop significant unobservable inputs for level 3 fair value measurements. The Company adopted the guidance on January 1, 2019, however, there was no adjustment required to its disclosures as it did not have fair value assets classified under level 2 or 3 as of March 31, 2019 and December 31, 2018. |
Accounting Pronouncements Issued But Not Yet Effective | (e) Accounting Pronouncements Issued But Not Yet Effective In January 2017, the FASB issued ASU 2017-04, Intangibles—Goodwill and Other Topic 350 Simplifying the Test for Goodwill Impairment In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326) |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Summary Of Significant Accounting Policies | |
Schedule of diluted shares using the treasury stock method | Three months ended 2019 2018 Shares used in computation of basic earnings (loss) per shares 9,506 8,211 Total dilutive effect of stock options 570 - Shares used in computation of diluted earnings (loss) per share 10,076 8,211 |
Schedulr of diluted incremental shares due to their antidilutive effect | Three months ended 2019 2018 Stock options 1,752 1,800 Warrants 100 100 Convertible debt - 1,190 1,852 3,090 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Schedule of disaggregation of revenue | Three months ended 2019 2018 Digital video headend products $ 2,028 $ 2,543 Data products 540 1,399 HFC distribution products 646 741 Analog video headend products 474 330 Contract manufactured products 28 224 Set top boxes 191 - Other 175 126 $ 4,082 $ 5,363 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | March 31, December 31, Raw Materials $ 2,002 $ 2,581 Work in process 2,219 1,573 Finished Goods 2,559 2,569 6,780 6,723 Less current inventories (6,780 ) (6,172 ) $ - $ 551 |
Concentration of Credit Risk (T
Concentration of Credit Risk (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Concentration Of Credit Risk | |
Schedule of credit risk with respect to customers as percentage of sales | Net sales Three months ended Accounts Receivable March 31, March 31, December 31, 2019 2018 2019 2018 Customer A 14 % 16 % - 14 % Customer B 10 % 27 % 16 % 22 % Customer C 12 % - - - Customer D - - - 11 % Customer E - - 15 % - |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future minimum rental payments | Amount Amount remaining year ending December 31, 2019 $ 462 2020 768 2021 809 2022 809 2023 885 Thereafter 77 Lease liability $ 3,810 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Summary Of Significant Accounting Policies Details Abstract | ||
Shares used in computation of basic earnings (loss) per shares | 9,506,000 | 8,211,000 |
Total dilutive effect of stock options | 570,000 | |
Shares used in computation of diluted earnings (loss) per share | 10,076,000 | 8,211,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details 1) - shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Incremental shares due to their antidilutive effect | 1,852,000 | 3,090,000 |
Stock options [Member] | ||
Incremental shares due to their antidilutive effect | 1,752,000 | 1,800,000 |
Warrants [Member] | ||
Incremental shares due to their antidilutive effect | 100,000 | 100,000 |
Convertible debt [Member] | ||
Incremental shares due to their antidilutive effect | 1,190,000 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Details Textual) - USD ($) $ in Thousands | Mar. 31, 2019 | Jan. 02, 2019 | Dec. 31, 2018 |
Summary of Significant Accounting Policies (Textual) | |||
Right to use asset and liability | $ 3,859 | $ 290 | |
Weighted average remaining lease term | 4 years 9 months 29 days | ||
Operating lease liabilities, weighted average discount rate | 6.50% |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenue Recognition and Deferred Revenue [Abstract] | ||
Digital video headend products | $ 2,028 | $ 2,543 |
Data products | 540 | 1,399 |
HFC distribution products | 646 | 741 |
Analog video headend products | 474 | 330 |
Contract manufactured products | 28 | 224 |
Set top boxes | 191 | |
Other | 175 | 126 |
Total | $ 4,082 | $ 5,363 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Summary of inventories | ||
Raw Materials | $ 2,002 | $ 2,581 |
Work in process | 2,219 | 1,573 |
Finished Goods | 2,559 | 2,569 |
Inventories, gross | 6,780 | 6,723 |
Less current inventories | (6,780) | (6,172) |
Inventories, net | $ 551 |
Inventories (Details Textual)
Inventories (Details Textual) $ in Thousands | Mar. 31, 2019USD ($) |
Inventories (Details Textual) | |
Carrying amount of inventories to net realizable | $ 693 |
Debt (Details)
Debt (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | ||
Mar. 29, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Dec. 28, 2016 | |
Debt (Textual) | ||||
Outstanding balances under revolver | $ 2,603 | |||
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 | |||
Outstanding balances under revolver | 0 | |||
Loan and security agreement, description | 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 | |||
Outstanding balances under revolver | 3,014 | |||
Variable rate basis, description | Interest on the Revolver is variable, based upon the 30-day LIBOR rate (2.49% and 1.88% at March 31, 2019 and 2018, respectively) plus a margin of 4.00%. Interest on the Term Loan also is variable, based upon the 30-day LIBOR rate (2.49% and 1.88% at March 31, 2019 and 2018, respectively) 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% | |||
Outstanding balances under revolver | $ 2,086 | |||
Variable rate basis, description | Interest on the Revolver is variable, based upon the 30-day LIBOR rate (2.49% and 1.88% at March 31, 2019 and 2018, respectively) 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 | ||
Oct. 09, 2018 | Apr. 17, 2018 | Mar. 28, 2016 | Mar. 31, 2019 | |
Subordinated Convertible Debt with Related Parties (Textual) | ||||
Subordinated lenders advanced amount | $ 50 | |||
Term loan facility | $ 750 | |||
Subordinated loan facility, interest accrues | 12.00% | |||
Conversion price | $ 0.54 | |||
Conversion of loan amount | $ 67 | $ 455 | ||
Principal amount | 50 | 350 | ||
Accrued interest | $ 17 | $ 105 | ||
Common stock shares converted | 125 | 842 | ||
Conversion and termination agreement, description | The Borrower was indebted to Steven L. Shea ("Shea") for the principal and accrued interest relating to a $100 loan advanced by Shea under the Subordinated Loan Agreement (the "Shea Indebtedness"). In addition, as of the date of the Conversion and Termination Agreement the Initial Lenders remained subject to a commitment to lend Borrowers up to an additional $250 (the "Additional Commitment"). | |||
Common stock shares facility issued | 260 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Related Party Transactions (Textual) | |||
Legal services | $ 151 | $ 96 | |
Accounts payable | $ 21 | $ 0 |
Concentration of Credit Risk (D
Concentration of Credit Risk (Details) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Accounts Receivable [Member] | Customer A [Member] | |||
Concentration of Credit Risk (Textual) | |||
Concentration risk, percentage | 14.00% | ||
Accounts Receivable [Member] | Customer B [Member] | |||
Concentration of Credit Risk (Textual) | |||
Concentration risk, percentage | 16.00% | 22.00% | |
Accounts Receivable [Member] | Customer C [Member] | |||
Concentration of Credit Risk (Textual) | |||
Concentration risk, percentage | |||
Accounts Receivable [Member] | Customer D [Member] | |||
Concentration of Credit Risk (Textual) | |||
Concentration risk, percentage | 11.00% | ||
Accounts Receivable [Member] | Customer E [Member] | |||
Concentration of Credit Risk (Textual) | |||
Concentration risk, percentage | 15.00% | ||
Sales [Member] | Customer A [Member] | |||
Concentration of Credit Risk (Textual) | |||
Concentration risk, percentage | 14.00% | 16.00% | |
Sales [Member] | Customer B [Member] | |||
Concentration of Credit Risk (Textual) | |||
Concentration risk, percentage | 10.00% | 27.00% | |
Sales [Member] | Customer C [Member] | |||
Concentration of Credit Risk (Textual) | |||
Concentration risk, percentage | 12.00% | ||
Sales [Member] | Customer D [Member] | |||
Concentration of Credit Risk (Textual) | |||
Concentration risk, percentage | |||
Sales [Member] | Customer E [Member] | |||
Concentration of Credit Risk (Textual) | |||
Concentration risk, percentage |
Commitments and Contingencies_2
Commitments and Contingencies (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Amount remaining year ending December 31, 2019 | $ 462 |
2020 | 768 |
2021 | 809 |
2022 | 809 |
2023 | 885 |
Thereafter | 77 |
Lease liability | $ 3,810 |
Commitments and Contingencies_3
Commitments and Contingencies (Details Textual) | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies (Textual) | |
Lease expiration date | Jan. 31, 2024 |
Building Sale and Leaseback (De
Building Sale and Leaseback (Details) - USD ($) $ in Thousands | Aug. 03, 2018 | Mar. 31, 2019 |
Building Sale and Leaseback (Textual) | ||
Proceeds from sale | $ 10,500 | |
Advance to buyer | 130 | |
Gain on sale | $ 7,175 | |
Lease obligation, description | 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. |