Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | May 10, 2023 | Jun. 30, 2022 | |
Document Information Line Items | |||
Entity Registrant Name | AIR INDUSTRIES GROUP | ||
Trading Symbol | AIRI | ||
Document Type | 10-K | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Common Stock, Shares Outstanding | 3,259,367 | ||
Entity Public Float | $ 17,477,754 | ||
Amendment Flag | false | ||
Entity Central Index Key | 0001009891 | ||
Entity Current Reporting Status | No | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Well-known Seasoned Issuer | No | ||
Document Period End Date | Dec. 31, 2022 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
ICFR Auditor Attestation Flag | false | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity File Number | 001-35927 | ||
Entity Incorporation, State or Country Code | NV | ||
Entity Tax Identification Number | 80-0948413 | ||
Entity Address, Address Line One | 1460 Fifth Avenue | ||
Entity Address, Address Line Two | Bay Shore | ||
Entity Address, State or Province | NY | ||
Entity Address, City or Town | New York | ||
Entity Address, Postal Zip Code | 11706 | ||
City Area Code | (631) | ||
Local Phone Number | 968-5000 | ||
Title of 12(b) Security | Common Stock, par value $0.001 | ||
Security Exchange Name | NYSEAMER | ||
Entity Interactive Data Current | Yes | ||
Auditor Name | Rotenberg Meril Solomon Bertiger & Guttilla, P.C. | ||
Auditor Location | Saddle Brook, New Jersey | ||
Auditor Firm ID | 361 | ||
Auditor One | |||
Document Information Line Items | |||
Auditor Name | Marcum LLP | ||
Auditor Location | Saddle Brook | ||
Auditor Firm ID | 688 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Current Assets | ||
Cash | $ 281,000 | $ 627,000 |
Accounts Receivable, Net of Allowance for Doubtful Accounts of $281,000 and $594,000 | 9,483,000 | 10,473,000 |
Inventory | 31,821,000 | 29,532,000 |
Prepaid Expenses and Other Current Assets | 307,000 | 226,000 |
Contract Costs Receivable | 296,000 | |
Prepaid Taxes | 28,000 | 22,000 |
Total Current Assets | 42,216,000 | 40,880,000 |
Property and Equipment, Net | 8,593,000 | 8,404,000 |
Operating Lease Right-Of-Use-Assets | 2,473,000 | 3,018,000 |
Deferred Financing Costs, Net, Deposits and Other Assets | 532,000 | 960,000 |
Goodwill | 163,000 | |
TOTAL ASSETS | 53,814,000 | 53,425,000 |
Current Liabilities | ||
Debt - Current Portion | 14,477,000 | 14,112,000 |
Accounts Payable and Accrued Expenses | 7,542,000 | 6,723,000 |
Operating Lease Liabilities - Current Portion | 778,000 | 686,000 |
Deferred Gain on Sale - Current Portion | 38,000 | 38,000 |
Customer Deposits | 781,000 | 1,470,000 |
Liability Related to the Sale of Future Proceeds from Disposition of Subsidiary | 59,000 | |
Deferred payroll tax liability - CARES Act | 314,000 | |
Total Current Liabilities | 23,616,000 | 23,402,000 |
Debt - Net of Current Portion | 4,629,000 | 2,838,000 |
Subordinated Notes Payable - Related Party | 6,162,000 | 6,412,000 |
Operating Lease Liabilities - Net of Current Portion | 2,463,000 | 3,241,000 |
Deferred Gain on Sale - Net of Current Portion | 105,000 | 143,000 |
TOTAL LIABILITIES | 36,975,000 | 36,036,000 |
Commitments and Contingency (see Note 13) | ||
Stockholders’ Equity | ||
Preferred Stock, par value $.001 - Authorized 3,000,000 shares, 0 shares outstanding, at both December 31, 2022 and December 31, 2021. | ||
Common Stock - Par Value $.001 - Authorized 6,000,000 Shares, 3,247,937 and 3,212,801 Shares Issued and Outstanding as of December 31, 2022 and December 31, 2021, respectively | 3,000 | 3,000 |
Additional Paid-In Capital | 82,446,000 | 81,920,000 |
Accumulated Deficit | (65,610,000) | (64,534,000) |
TOTAL STOCKHOLDERS’ EQUITY | 16,839,000 | 17,389,000 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 53,814,000 | $ 53,425,000 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts (in Dollars) | $ 281,000 | $ 594,000 |
Preferred stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 3,000,000 | 3,000,000 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 6,000,000 | 6,000,000 |
Common stock, shares issued | 3,247,937 | 3,212,801 |
Common stock, shares outstanding | 3,247,937 | 3,212,801 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Statement [Abstract] | ||
Net Sales | $ 53,238,000 | $ 58,939,000 |
Cost of Sales | 45,786,000 | 48,686,000 |
Gross Profit | 7,452,000 | 10,253,000 |
Operating Expenses | 7,646,000 | 7,766,000 |
(Loss) Income from Operations | (194,000) | 2,487,000 |
Interest and Financing Costs | (851,000) | (805,000) |
Interest Expense - Related Parties | (487,000) | (460,000) |
Other Income, Net | 139,000 | 405,000 |
Gain on write-off of accounts payable | 317,000 | |
(Loss) Income before Provision for Income Taxes | (1,076,000) | 1,627,000 |
Provision for Income Taxes | ||
Net (Loss) Income | $ (1,076,000) | $ 1,627,000 |
(Loss) Income per share – Basic (in Dollars per share) | $ (0.33) | $ 0.51 |
(Loss) Income per share – Diluted (in Dollars per share) | $ (0.33) | $ 0.45 |
Weighted Average Shares Outstanding – basic (in Shares) | 3,227,116 | 3,204,937 |
Weighted Average Shares Outstanding – diluted (in Shares) | 3,227,116 | 3,642,418 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders’ Equity - USD ($) | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Total |
Balance at Dec. 31, 2020 | $ 3,000 | $ 81,267,000 | $ (66,161,000) | $ 15,109,000 |
Balance (in Shares) at Dec. 31, 2020 | 3,190,698 | |||
Common Stock issued for directors fees | 210,000 | 210,000 | ||
Common Stock issued for directors fees (in Shares) | 16,981 | |||
Stock Options exercised | ||||
Stock Options exercised (in Shares) | 5,122 | 11,000 | ||
Stock Compensation Expense | 443,000 | $ 443,000 | ||
Net Income (loss) | 1,627,000 | 1,627,000 | ||
Balance at Dec. 31, 2021 | $ 3,000 | 81,920,000 | (64,534,000) | 17,389,000 |
Balance (in Shares) at Dec. 31, 2021 | 3,212,801 | |||
Common Stock issued for directors fees | 216,000 | 216,000 | ||
Common Stock issued for directors fees (in Shares) | 27,849 | |||
Common Stock issued in conjunction with reverse split | ||||
Common Stock issued in conjunction with reverse split (in Shares) | 7,287 | |||
Stock Options exercised (in Shares) | ||||
Stock Compensation Expense | 310,000 | $ 310,000 | ||
Net Income (loss) | (1,076,000) | (1,076,000) | ||
Balance at Dec. 31, 2022 | $ 3,000 | $ 82,446,000 | $ (65,610,000) | $ 16,839,000 |
Balance (in Shares) at Dec. 31, 2022 | 3,247,937 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net (Loss) Income | $ (1,076,000) | $ 1,627,000 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities | ||
Depreciation of property and equipment | 2,522,000 | 2,803,000 |
Non-cash employee compensation expense | 310,000 | 443,000 |
Non-cash directors compensation | 216,000 | 210,000 |
Non-cash other income recognized | (94,000) | (326,000) |
Non-cash interest expense | 35,000 | 98,000 |
Non-cash gain on accounts payable write-off | (317,000) | |
Amortization of Right-of-Use Assets | 545,000 | 492,000 |
Deferred gain on sale of real estate | (38,000) | (38,000) |
Bad debt recovery | (313,000) | (86,000) |
Loss on impairment of goodwill | 163,000 | |
Amortization of deferred financing costs | 65,000 | 150,000 |
(Increase) Decrease in Operating Assets: | ||
Accounts receivable | 1,303,000 | (1,589,000) |
Inventory | (2,289,000) | 2,588,000 |
Prepaid expenses and other current assets | (81,000) | (53,000) |
Prepaid taxes | (6,000) | (7,000) |
Deposits and other assets | (194,000) | (193,000) |
Increase (Decrease) in Operating Liabilities: | ||
Accounts payable and accrued expenses | 1,136,000 | (1,594,000) |
Operating lease liabilities | (686,000) | (701,000) |
Customer deposits | (439,000) | 553,000 |
Deferred payroll tax liability - CARES Act | (314,000) | (313,000) |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 448,000 | 4,064,000 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchase of property and equipment | (2,361,000) | (1,364,000) |
NET CASH USED IN INVESTING ACTIVITIES | (2,361,000) | (1,364,000) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Net proceeds from (payments for) revolving loan - Webster Bank | 916,000 | (3,193,000) |
Proceeds from note payable - term note - Webster Bank | 2,823,000 | |
Payments of term note - Webster Bank | (1,609,000) | (1,371,000) |
Payment of deferred finance costs | (20,000) | |
Payment of subordinated notes payable - related party | (250,000) | |
Payments of finance lease obligations | (284,000) | (5,000) |
Payments of loan payable - financed asset | (9,000) | (9,000) |
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | 1,567,000 | (4,578,000) |
NET DECREASE IN CASH | (346,000) | (1,878,000) |
CASH AT BEGINNING OF YEAR | 627,000 | 2,505,000 |
CASH AT END OF YEAR | 281,000 | 627,000 |
Supplemental cash flow information | ||
Cash paid during the year for interest | 1,295,000 | 1,206,000 |
Cash paid during the year for taxes | 6,000 | 7,000 |
Supplemental disclosure of non-cash investing and financing activities | ||
Acquisition of financed lease asset | 350,000 | |
Capitalization of related party note interest to principal | $ 400,000 |
Organization and Basis of Prese
Organization and Basis of Presentation | 12 Months Ended |
Dec. 31, 2022 | |
Formation and Basis of Presentation [Abstract] | |
ORGANIZATION AND BASIS OF PRESENTATION | Note 1. ORGANIZATION AND BASIS OF PRESENTATION Organization Air Industries Group is a Nevada corporation (“AIRI”). As of and for the year ended December 31, 2022 and 2021, the accompanying consolidated financial statements presented are those of AIRI, and its wholly-owned subsidiaries; Air Industries Machining Corp. (“AIM”), Nassau Tool Works, Inc. (“NTW”), and the Sterling Engineering Corporation (“Sterling”), (together, the “Company”). Principal Business Activity The Company is a Tier 1 or Tier 2 manufacturer of precision assemblies and components for mission-critical aerospace and defense applications and a prime contractor to the U.S. Department of Defense. The Company’s AIM and NTW subsidiaries manufacture flight critical or flight safety aircraft components including landing gear, arresting gear, flight controls, primarily for military aircraft, including the UH-60 Helicopter, the E2-D, and F-35, F-18 fighter aircraft, and the Pratt & Whitney Geared Turbofan jet engine. Sterling manufactures components used in jet engines of military and commercial aircraft and ground power turbine engines. The Company’s primary customers are large publicly traded companies including the four largest suppliers to the US Department of Defense. Basis of Presentation The accompanying consolidated financial statements of the Company included in this report have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules and regulations of the Securities and Exchange Commission. Historically the Company operated its businesses and reported its results as two separate segments with AIM and NTW comprising the Complex Machining segment (“CMS”) and Sterling as the Turbine & Engine Component segment (“TEC”). The CMS segment specialized in flight critical components including flight controls and landing gear. The TEC segment focused on manufacturing components for jet engines. Along with its operating subsidiaries, the Company reported the results of its corporate division as an independent segment. In recent years the Company integrated and consolidated the business of AIM and NTW into one facility on Long Island and the operations of its CMS and TEC segments have become increasingly integrated. The Company also made significant capital expenditures and all of its operations now share the same manufacturing facilities and use most, if not all, of the same sales and marketing functions. The Company made these changes to take advantage of the long-term growth opportunities it sees in the aerospace and defense market. In early fiscal 2022, the Company further changed its management approach and is now making decisions about resources to be allocated and assesses performance based on one integrated business rather than two reporting segments. As such, effective with the fiscal quarter ended March 31, 2022, the Company is presenting its operations as one reportable operating segment. Liquidity At each reporting period, management evaluates whether there are conditions or events that raise any substantial doubt about the Company’s ability to continue as a going concern within one year after the date that the financial statements are issued. The Company is required to make certain additional disclosures if management concludes that if substantial doubt exists about the Company’s ability to continue as a going concern provided that such doubt is not alleviated by the Company’s plans or when the Company’s plans alleviate substantial doubt about its ability to continue as a going concern. This evaluation entails analyzing prospective operating budgets and forecasts for expectations regarding cash needs and comparing those needs to the current cash and cash equivalent balance and expectations regarding cash to be generated over the following year. The global outbreak of COVID-19 negatively impacted the Company’s revenues, earnings and operating cash flows in 2020. While operations substantially returned to normal in fiscal 2021 and 2022, there remains some substantial issues and problems receiving raw materials and prompt processing of its products. With fiscal 2022 now completed and the Company continuing to see the benefits from its recent investments in machinery and equipment, management believes the Company will continue to improve its liquidity. During 2022, the Company generated $448,000 of cash from operating activities. Based on the Company’s current best estimates of fiscal 2023 and first half of fiscal 2024 sales, confirmed orders from existing backlog and expected orders from existing and new customers expected timing of future cash receipts and expenditures and the Company’s ability to access additional liquidity, if needed, the Company firmly believes it will have adequate cash to support operations through at least one year from the date of the accompanying financial statements are issued. Reverse Stock Split On October 4, 2022, the Company announced a reverse stock split of its authorized, issued and outstanding shares of common stock at a ratio of 1-for-10. The reverse stock split was effective on October 18, 2022, and its common stock began trading on a post-split-adjusted basis at that time. All share and per share amounts of its common stock presented have been retroactively adjusted to reflect the 1-for-10 reverse stock split. As result of the reverse stock split there were no fractional shares issued and all holders were rounded up to the next whole share. See Note 11 – Stockholders’ Equity for more information. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Summary of Significant Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | Note 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The accompanying consolidated financial statements include accounts of the Company and its wholly-owned subsidiaries. Significant intercompany accounts and transactions have been eliminated in consolidation. Accounts Receivable Accounts receivable are reported at their outstanding unpaid principal balances net of allowances for uncollectible accounts. The Company provides for allowances for uncollectible receivables based on management’s estimate of uncollectible amounts considering age, collection history, and any other factors considered appropriate. The Company writes off accounts receivable against the allowance for doubtful accounts when a balance is determined to be uncollectible. Inventory Valuation The Company values inventory at the lower of cost on a first-in-first-out basis or an estimated net realizable value. The Company generally purchases raw materials and supplies uniquely suited to the production of larger more complex parts, such as landing gear, only when non-cancellable contracts for orders have been received for finished goods. It occasionally produces larger more complex products, such as landing gear, in excess of purchase order quantities in anticipation of future purchase order demand, when it is economically advantageous to do so, since historically this excess has been used in fulfilling future purchase orders. The Company purchases supplies and materials useful in a variety of products as deemed necessary even though orders have not been received. The Company periodically evaluates inventory items that are not secured by purchase orders and establishes write-downs to estimated net realizable value. The Company writes-down inventory to estimated net realizable value for excess quantities, slow-moving goods, obsolescence and for other impairments of value. Property and Equipment Property and equipment are carried at cost net of accumulated depreciation and amortization. Repair and maintenance charges are expensed as incurred. Property, equipment, and improvements are depreciated using the straight-line method over the estimated useful lives of the assets or the particular improvements. Expenditures for repairs and improvements in excess of $10,000 that add to the productive capacity or extend the useful life of an asset are capitalized. Upon disposition, the cost and related accumulated depreciation are removed from the accounts and any related gain or loss is reflected in earnings. Long-Lived and Intangible Assets Identifiable intangible assets are amortized using the straight-line method over the period of expected benefit. Long-lived assets and intangible assets subject to amortization to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the related carrying amount may be impaired. The Company records an impairment loss if the undiscounted future cash flows are found to be less than the carrying amount of the asset. If an impairment loss has occurred, a charge is recorded to reduce the carrying amount of the asset to fair value. Deferred Financing Costs Costs incurred with obtaining and executing revolving debt arrangements are capitalized and recorded in other current assets and amortized using the effective interest method over the term of the related debt. Costs incurred with obtaining and executing other debt arrangements are presented as a direct deduction from the carrying value of the associated debt and also amortized using the effective interest method over the term of the related debt. The amortization of financing costs is included in interest and financing costs in the Consolidated Statements of Operations. Contract Costs Receivable Contract costs receivable represent costs to be reimbursed from a terminated contract. The Company expects to collect the receivable in the next twelve months. Contract costs receivable totals $296,000 and $0 as of December 31, 2022 and 2021, respectively. Revenue Recognition The Company recognizes revenue to depict the transfer of promised goods to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods. Revenue is recognized as the customer obtains control of the goods and services promised in the contract (i.e., performance obligations). In evaluating our contracts with our customers, we have determined that there is no future performance obligation once delivery has occurred. Our revenue is generated from fixed-price contracts. Under fixed-price contracts, we agree to perform the specified work for a pre-determined price, which we estimate during the bidding process before the contract is awarded. To the extent our actual costs vary from the estimates upon which the price was negotiated, we will generate more or less profit or could incur a loss. We evaluate the products promised in each contract at inception to determine whether the contract should be accounted for as having one or more performance obligations. Our contracts are typically accounted for as one performance obligation. We classify net sales as products on our consolidated statements of operations based on the predominant attributes of the performance obligations. We determine the transaction price for each contract based on the consideration we expect to receive for the products being provided under the contract. At the inception of a contract, we estimate the transaction price based on our current rights and do not contemplate future modifications (including unexercised options) or follow-on contracts until they become legally enforceable. Contracts can be subsequently modified to include changes in specifications, requirements or price, which may create new or change existing enforceable rights and obligations. Depending on the nature of the modification, we consider whether to account for the modification as an adjustment to the existing contract or as a separate contract. Generally, modifications to our contracts are not distinct from the existing contract due to the significant integration and interrelated tasks provided in the context of the contract. Therefore, such modifications are accounted for as if they were part of the existing contract and recognized as a cumulative adjustment to revenue. We recognize revenue at the point in time in which the performance obligation is fully satisfied. This is fully satisfied when the product has shipped, which is the point in time the customer obtains control of the product and we no longer maintain control of the product. The Company’s rights to payments for goods transferred to customers are conditional only on the passage of time and not on any other criteria. Payment terms and conditions vary by contract, although terms generally include a requirement of payment within 30 to 75 days. Payments received in advance from customers are recorded as customer deposits until earned, at which time revenue is recognized. The Terms and Conditions contained in our customer purchase orders often provide for liquidated damages in the event that a stop work or contract termination order is issued prior to final delivery. While the products we manufacture are specific to the type of aircraft that they are used on, there are alternate customers that can acquire and utilize these products. The Company utilizes a Returned Merchandise Authorization or RMA process for determining whether to accept returned products. Customer requests to return products are reviewed by the contracts department and if the request is approved, a credit is issued upon receipt of the product. Net sales represent gross sales less these returns and allowances. Customer Deposits The Company receives advance payments on certain contracts with the remainder of the contract balance due upon the shipment of the final product once the customer inspects and approves the product for shipment. At that time, the entire amount will be recognized as revenue and the deposit will be applied to the customer’s invoice. At December 31, 2022 and 2021, customer deposits were $781,000 and $1,470,000 respectively. The Company recognized revenue of $440,000 during year ended December 31, 2022, that was included in the customer deposits balance as of December 31, 2021. The Company recognized revenue of $507,000 during the year ended December 31, 2021, that was included in the customer deposits balance of $917,000 as of December 31, 2020. Backlog Backlog represents executed non-cancellable contracts that represent firm purchase orders that are deliverable over the next 18-month period. As of December 31, 2022, backlog relating to remaining performance obligations in contracts was approximately $60,000,000. The Company expects to recognize revenue amounts in future periods related to these remaining performance obligations as follows: approximately $22,500,000 to $26,500,000 from January 1, 2023 - June 30, 2023, and approximately $15,000,000 to $18,000,000 from July 1, 2023 through December 31, 2023. This expectation assumes that raw material suppliers and outsourced processing is completed and delivered on-time and that the Company’s customers will accept delivery as scheduled. The Company anticipates that sales during the aforementioned periods will also include sales pursuant to contracts that are not currently in backlog. Use of Estimates In preparing the financial statements, management is required to make estimates and assumptions that affect the reported amounts in the financial statements and accompanying notes. The more significant management estimates are the allowance for doubtful accounts, useful lives of property and equipment, provisions for obsolescence, excess and slow moving inventory, accrued expenses and income taxes, which includes the determination of the valuation allowance for deferred tax assets. Actual results could differ from those estimates. Changes in facts and circumstances may result in revised estimates, which are recorded in the period in which they become known. Credit and Concentration Risks A large percentage of the Company’s revenues are derived from a small number of customers for U.S. Military Aviation. There were four customers that represented 76.5% of total sales, and three customers that represented 75.4% of total sales for the years ended December 31, 2022 and 2021, respectively. This is set forth in the table below. Customer Percentage of Sales 2022 2021 1 29.3 % 37.2 % 2 21.4 % 25.7 % 3 14.3 % 12.5 % 4 11.5 % * * Customer was less than 10% of sales for the year-ended December 31, 2021 There were three customers that represented 70.3% of gross accounts receivable and three customers that represented 74.7% of gross accounts receivable at December 31, 2022 and 2021, respectively. This is set forth in the table below. Percentage of Receivables December 31, December 31, Customer 2022 2021 1 33.1 % 50.3 % 2 23.6 % 12.7 % 3 13.6 % ** 4 * 11.7 % * Customer was less than 10% of accounts receivable at December 31, 2022 ** Customer was less than 10% of accounts receivable at December 31, 2021 Disaggregation of Revenue The following table summarizes revenue from contracts with customers for the years ended December 31, 2022 and 2021: Product December 31, December 31, Military $ 43,993,000 $ 51,559,000 Commercial 9,245,000 7,380,000 Total $ 53,238,000 $ 58,939,000 Cash During the year, the Company had occasionally maintained balances in its bank accounts that were in excess of the FDIC limit. The Company has not experienced any losses on these accounts. Major Suppliers The Company has several key sole-source suppliers of various parts that are important for one or more of its products. These suppliers are its only source for such parts and, therefore, in the event any of them were to go out of business or be unable to provide parts for any reason, its business could be severely harmed. Income Taxes The Company accounts for income taxes in accordance with accounting guidance now codified as FASB ASC 740, “Income Taxes,” which requires that the Company recognize deferred tax liabilities and assets based on the differences between the financial statement carrying amounts and the tax bases of assets and liabilities, using enacted tax rates in effect in the years the differences are expected to reverse. The provision for, or benefit from, income taxes includes deferred taxes resulting from the temporary differences in income for financial and tax purposes using the liability method. Such temporary differences result primarily from the differences in the carrying value of assets and liabilities. Future realization of deferred income tax assets requires sufficient taxable income within the carryback, carryforward period available under tax law. We evaluate, on a quarterly basis whether, based on all available evidence, it is probable that the deferred income tax assets are realizable. Valuation allowances are established when it is more likely than not that the tax benefit of the deferred tax asset will not be realized. The evaluation, as prescribed by ASC 740-10, “Income Taxes,” includes the consideration of all available evidence, both positive and negative, regarding historical operating results including recent years with reported losses, the estimated timing of future reversals of existing taxable temporary differences, estimated future taxable income exclusive of reversing temporary differences and carryforwards, and potential tax planning strategies which may be employed to prevent an operating loss or tax credit carryforward from expiring unused. The Company accounts for uncertainties in income taxes under the provisions of FASB ASC 740 which clarify the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements. The standard prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The Subtopic provides guidance on the de-recognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. Earnings (Loss) per share Basic earnings (loss) per share (“EPS”) is computed by dividing the net income applicable to common stockholders by the weighted-average number of shares of common stock outstanding for the period. For purposes of calculating diluted earnings (loss) per common share, the numerator includes net income (loss) plus interest on convertible notes payable assumed converted as of the first day of the period. The denominator includes both the weighted-average number of shares of common stock outstanding during the period and the number of common stock equivalents if the inclusion of such common stock equivalents is dilutive. Dilutive common stock equivalents potentially include stock options and warrants using the treasury stock method and convertible notes payable using the if-converted method. The following is the calculation of income applicable to common stockholders utilized to calculate the numerator for EPS: December 31, December 31, 2022 2021 Net (Loss) Income – Basic $ (1,076,000 ) $ 1,627,000 Add: Convertible Note Interest for Potential Note Conversion - 322,000 Add: Convertible Note debt discount for Potential Note Conversion - - Net (Loss) Income used to calculate diluted earnings per share $ (1,076,000 ) $ 1,949,000 The following is a reconciliation of the denominators of basic and diluted EPS computations: December 31, December 31, 2022 2021 Weighted average shares outstanding used to compute basic earnings per share 3,227,116 3,204,937 Effect of dilutive stock options and warrants - 31,737 Effect of dilutive convertible notes payable - 405,743 Weighted average shares outstanding and dilutive securities used to compute dilutive earnings per share 3,227,116 3,642,417 Per share amount – basic $ (0.33 ) $ 0.51 Per share amount – diluted $ (0.33 ) $ 0.45 The following securities have been excluded from the calculation as the exercise price was greater than the average market price of the common shares: December 31, December 31, 2022 2021 Stock Options 245,466 118,350 Warrants 28,000 122,721 273,466 241,071 Stock-Based Compensation The Company accounts for stock-based compensation in accordance with FASB ASC 718, “Compensation – Stock Compensation.” Under the fair value recognition provision of the ASC, stock-based compensation cost is estimated at the grant date based on the fair value of the award. The Company estimates the fair value of stock options and warrants granted using the Black-Scholes-Merton option pricing model and stock grants at their closing reported market value. Stock compensation expense for employees amounted to $310,000 and $443,000 for the years ended December 31, 2022 and 2021, respectively. Stock compensation expense for directors amounted to $216,000 and $210,000 for the years ended December 31, 2022 and 2021, respectively. Stock compensation expenses for employees and directors were included in operating expenses in the accompanying Consolidated Statements of Operations. Goodwill Goodwill represented the excess of the acquisition cost of businesses over the fair value of the identifiable net assets acquired. The goodwill amount of $163,000 at December 31, 2021 related to the acquisition of NTW. The Company accounts for the impairment of goodwill under the provisions of ASU 2017-04 (“ASU 2017-04”), “Intangibles Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.” ASU 2017-04 gives companies the option to perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. The Company performed impairment testing for goodwill annually, or more frequently when indicators of impairment existed. The Company determined that the goodwill was fully impaired at December 31, 2022. The impairment charge of $163,000 is included in operating expenses in the Consolidated Statement of Operations. Freight Out Freight out is included in operating expenses and amounted to $162,000 and $135,000 for the years ended December 31, 2022 and 2021, respectively. Leases In accordance with FASB ASC 842, “Leases” (“ASC 842”), the Company records a right-of-use (ROU) asset and a lease liability on the balance sheet for all leases with terms longer than 12 months and classifies them as either operating or finance leases. The lease classification affects the expense recognition in the income statement. Operating lease charges are recorded entirely in operating expenses. Finance lease charges are split, where amortization of the right-of- use asset is recorded in operating expenses and an implied interest component is recorded in interest expense. At the inception of an arrangement, the Company determines whether the arrangement is or contains a lease based on the unique facts and circumstances present and the classification of the lease including whether the contract involves the use of a distinct identified asset, whether the Company obtains the right to substantially all the economic benefit from the use of the asset, and whether the Company has the right to direct the use of the asset. Leases with a term greater than one year are recognized on the balance sheet as ROU assets, lease liabilities and, if applicable, long-term lease liabilities. The Company has elected not to recognize on the balance sheet leases with terms of one year or less under practical expedient. For contracts with lease and non-lease components, the Company has elected not to allocate the contract consideration, and to account for the lease and non-lease components as a single lease component. Lease liabilities and their corresponding ROU assets are recorded based on the present value of lease payments over the expected lease term. The implicit rate within our operating leases are generally not determinable and, therefore, the Company uses the incremental borrowing rate at the lease commencement date to determine the present value of lease payments. The determination of the Company’s incremental borrowing rate requires judgment. The Company determines the incremental borrowing rate for each lease using our estimated borrowing rate, adjusted for various factors including level of collateralization, term and currency to align with the terms of the lease. The operating lease ROU asset also includes any lease prepayments, offset by lease incentives. An option to extend the lease is considered in connection with determining the ROU asset and lease liability when it is reasonably certain we will exercise that option. An option to terminate is considered unless it is reasonably certain we will not exercise the option. Recently Issued Accounting Pronouncements Effective January 1, 2022, the Company adopted ASU No. 2020-06, Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40) (“ASU 2020-06), which is intended to address issues identified as a result of the complexity associated with applying accounting principles generally accepted in the United States of America for certain financial instruments with characteristics of liabilities and equity. For convertible instruments, ASU 2020-06 reduces the number of accounting models for convertible debt instruments and convertible preferred stock, and enhances information transparency by making targeted improvements to the disclosures for convertible instruments and earnings-per-share guidance on the basis of feedback from financial statement users. The adoption of ASU 2020-06 did not have a material effect on the Company’s financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326) (“ASU 2016-13”), which significantly changes how entities will account for credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. ASU 2016-13 replaces the existing incurred loss model with an expected credit loss model that requires entities to estimate an expected lifetime credit loss on most financial assets and certain other instruments. Under ASU 2016-13 credit impairment is recognized as an allowance for credit losses, rather than as a direct write-down of the amortized cost basis of a financial asset. The impairment allowance is a valuation account deducted from the amortized cost basis of financial assets to present the net amount expected to be collected on the financial asset. Once the new pronouncement is adopted by the Company, the allowance for credit losses must be adjusted for management’s current estimate at each reporting date. The new guidance provides no threshold for recognition of impairment allowance. Therefore, entities must also measure expected credit losses on assets that have a low risk of loss. For instance, trade receivables that are either current or not yet due may not require an allowance reserve under currently generally accepted accounting principles, but under the new standard, the Company will have to estimate an allowance for expected credit losses on trade receivables under ASU 2016-13. ASU 2016-13 is effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2022 for smaller reporting companies. The Company is currently assessing the impact ASU 2016-13 will have on its consolidated financial statements. The Company does not believe that any other recently issued, but not yet effective, accounting standards if currently adopted would have a material effect on the accompanying consolidated financial statements. |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
ACCOUNTS RECEIVABLE | Note 3. ACCOUNTS RECEIVABLE The components of accounts receivable at December 31, are detailed as follows: December 31, December 31, Accounts Receivable Gross $ 9,764,000 $ 11,067,000 Allowance for Doubtful Accounts (281,000 ) (594,000 ) Accounts Receivable Net $ 9,483,000 $ 10,473,000 The allowance for doubtful accounts for the years ended December 31, 2022 and 2021 is as follows: Balance at Charged to Deductions Balance at Beginning of Costs and from End of Year Expenses Reserves Year Year ended December 31, 2022 Allowance for Doubtful Accounts $ 594,000 $ 16,000 $ 329,000 $ 281,000 Year ended December 31, 2021 Allowance for Doubtful Accounts $ 964,000 $ 134,000 $ 504,000 $ 594,000 |
Inventory
Inventory | 12 Months Ended |
Dec. 31, 2022 | |
Inventory [Abstract] | |
INVENTORY | Note 4. INVENTORY The components of inventory at December 31, consisted of the following: December 31, December 31, 2022 2021 Raw Materials $ 4,198,000 $ 3,410,000 Work In Progress 20,848,000 20,926,000 Finished Goods 10,748,000 8,350,000 Reserve (3,973,000 ) (3,154,000 ) Total Inventory $ 31,821,000 $ 29,532,000 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2022 | |
Property and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | Note 5. PROPERTY AND EQUIPMENT The components of property and equipment at December 31, consisted of the following: December 31, December 31, 2022 2021 Land $ 300,000 $ 300,000 Buildings and Improvements 1,789,000 1,723,000 Machinery and Equipment 23,566,000 22,013,000 Finance Lease ROU Assets - Machinery and Equipment 375,000 375,000 Tools and Instruments 13,744,000 12,866,000 Automotive Equipment 266,000 200,000 Furniture and Fixtures 290,000 290,000 Leasehold Improvements 941,000 882,000 Computers and Software 604,000 583,000 Total Property and Equipment 41,875,000 39,232,000 Less: Accumulated Depreciation (33,282,000 ) (30,828,000 ) Property and Equipment, net $ 8,593,000 $ 8,404,000 Depreciation expense for the years ended December 31, 2022 and 2021 was approximately $2,522,000 and $2,803,000, respectively. Assets held under finance lease obligations are depreciated over the shorter of their related lease terms or their estimated productive lives. Depreciation of assets under finance leases is included in depreciation expense for 2022 and 2021. Accumulated depreciation on these assets was approximately $0 and $36,000 as of December 31, 2022 and 2021, respectively. |
Accounts Payable and Accrued Ex
Accounts Payable and Accrued Expenses | 12 Months Ended |
Dec. 31, 2022 | |
Accounts Payable and Accrued Expenses [Abstract] | |
ACCOUNTS PAYABLE AND ACCRUED EXPENSES | Note 6. ACCOUNTS PAYABLE AND ACCRUED EXPENSES The components of accounts payable and accrued expenses at December 31, are detailed as follows: December 31, December 31, Accounts Payable $ 6,442,000 $ 5,460,000 Accrued Payroll 674,000 852,000 Accrued Expenses - other 426,000 411,000 Accounts Payable and accrued expenses $ 7,542,000 $ 6,723,000 During the year ending December 31, 2022, the Company, reviewed all old outstanding payables that were not paid and based on the statute of limitations, a claim would no longer be enforceable. The Company determined that approximately $317,000 of old payables fell into this category. This adjustment is recorded as Write-off of accounts payable on the accompanying Statement of Operations. |
Sale and Leaseback Transaction
Sale and Leaseback Transaction | 12 Months Ended |
Dec. 31, 2022 | |
Sale and Leaseback Transaction [Abstract] | |
SALE AND LEASEBACK TRANSACTION | Note 7. SALE AND LEASEBACK TRANSACTION On October 24, 2006, the Company consummated a Sale - Leaseback Arrangement, whereby the Company sold the buildings and real property located in Bay Shore, New York (the “Bay Shore Property”) for a purchase price of $6,200,000. The Company realized a gain on the sale of $1,051,000 of which $300,000 was recognized during the year ended December 31, 2006. The remaining $751,000 is being recognized ratably over the remaining term of the twenty - year lease at approximately $38,000 per year. The gain is included in Other Income in the accompanying Consolidated Statements of Operations. The unrecognized portion of the gain in the amount of $143,000 and $181,000 as of December 31, 2022 and 2021, respectively, is classified as Deferred Gain on Sale in the accompanying Consolidated Balance Sheets. The Company accounted for these transactions under the provisions of FASB ASC 840-40, “Leases-Sale-Leaseback Transactions.” Simultaneous with the closing of the sale of the Bay Shore Property, the Company entered into a 20-year triple- net lease (the “Lease”) expiring in September 2026 with the purchaser for the property. Base annual rent is approximately $540,000 for the first five years, $560,000 for the sixth year, and thereafter increases 3% per year. The Lease grants the Company an option to renew the Lease for an additional period of five years. The Company has on deposit with the purchaser $89,000 as security for the performance of its obligations under the Lease. In addition, at December 31, 2021, the Company had on deposit $150,000 with the purchaser as security for the completion of certain repairs and upgrades to the Bay Shore Property. In 2020, the landlord utilized the amounts on deposit to install air conditioning throughout the manufacturing facility. At December 31, 2022, this amount was included in the caption Deferred Finance costs, Net, Deposit and Other Assets in the accompanying Consolidated Balance Sheets. Pursuant to the terms of the Lease, the Company is required to pay all of the costs associated with the operation of the facilities, including, without limitation, insurance, taxes and maintenance. The lease also contains customary representations, warranties, obligations, conditions and indemnification provisions and grants the purchaser customary remedies upon a breach of the lease by the Company, including the right to terminate the Lease and hold the Company liable for any deficiency in future rent. See Note 9 – Operating Lease Liabilities. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2022 | |
Debt [Abstract] | |
DEBT | Note 8. Debt Debt consists of the following: December 31, December 31, 2022 2021 Revolving loan to Webster Bank (“Webster”) $ 13,352,000 $ 12,456,000 Term loan, Webster 5,396,000 4,192,000 Finance lease obligations 328,000 263,000 Loans payable - financed assets 30,000 39,000 Related party notes payable 6,162,000 6,412,000 Subtotal 25,268,000 23,362,000 Less: Current portion (14,477,000 ) (14,112,000 ) Long Term Portion $ 10,791,000 $ 9,250,000 Webster Bank (F/K/A Sterling National Bank) (“Webster”) The Company has a loan facility (“Webster Facility”) with Webster Bank that expires on December 30, 2025. The Webster Facility, which was entered into on December 31, 2019, was amended several times, and now provides for a $20,000,000 revolving loan (“Revolving Line of Credit”), a $5,000,000 term loan (“Term Loan”) and a $2,000,000 Equipment Line of Credit, which as it is drawn upon is added to the balance of the Term Loan. As of December 31, 2022, there was $1,122,000 remaining available under the equipment line of credit. The below table shows the timing of payments due under the Term Loan: For the year ending Amount December 31, 2023 $ 1,037,000 December 31, 2024 840,000 December 31, 2025 3,584,000 Webster Term Loan payable 5,461,000 Less: debt issuance costs (65,000 ) Total Webster Term Loan payable, net of debt issuance costs 5,396,000 Less: Current portion of Webster Term Loan payable (1,037,000 ) Total long-term portion of Webster Term Loan payable $ 4,359,000 As of December 31, 2022, our debt to Webster in the amount of $18,748,000 consisted of the Webster Revolving Loan in the amount of $13,352,000 and the Webster term loan in the amount of $5,396,000 which includes $878,000 of what was drawn on the equipment line of credit. Interest expense related to the Webster Facility amounted to approximately $780,000 and $704,000 for the years ended December 31, 2022 and 2021, respectively. The below summarizes historical amendments to the Webster Facility and various terms: In 2020, the Company entered into the First Amendment to the Webster Facility which increased the Term Loan to $5,685,000 and required the Company to make monthly principal installments in the amount of $67,679 beginning on December 1, 2020. Other minor modifications were made and the Company paid an amendment fee of $20,000. In June 2021, the Company entered into the Second Amendment to the Webster Facility, which clarified the definition and calculation of Excess Cash Flow, and to confirm the due date of the required payment of the Excess Cash Flow. For so long as the Webster term loan remains outstanding, if Excess Cash Flow (as defined) is a positive number for any fiscal year the Company shall pay to Webster an amount equal to the lesser of (i) twenty-five percent (25%) of the Excess Cash Flow for such fiscal year and (ii) the outstanding principal balance of the term loan. Such payment shall be made to Webster and applied to the outstanding principal balance of the term loan, on or prior to the April 15 immediately following such fiscal year. In connection with these changes, the Company paid an amendment fee of $10,000. The Company made Excess Cash Flow payments of $558,750 in 2021 (for the fiscal year ended December 31, 2020) and $854,000 in April 2022 (for fiscal year ended December 31, 2021). As required, the Company provided the calculation for the Excess Cash Flow payment of $208,000 for fiscal year ended December 31, 2022 to Webster prior to the April 15, 2023 deadline for such payment. Additionally, the Company authorized such payment to be made from the Revolving Loan. As of the date of this filing such payment has not been processed by Webster. On December 7, 2021, the Company entered into the Third Amendment to the Webster Facility (“Third Amendment”). The purpose of the amendment was to provide a maturity date for the Webster Facility of December 30, 2025 as compared to the original maturity date of December 30, 2022. Such amendment also increased the Revolving Line of Credit to its current limit of $20,000,000 (up from the original $16,000,000) and also provided for a similar increase in the inventory sublimit to $14,000,000 (up from the original $11,000,000). The Third Amendment, also allows the Company, subject to certain limitations, to begin amortizing $250,000 of its related party subordinated notes payable each quarter as long as certain conditions are met. In connection with these changes, the Company paid an amendment fee of $75,000. On May 17, 2022, the Company entered into the Fourth Amendment to the Webster Facility (“Fourth Amendment”). The purpose of the amendment was to increase the Term Loan to $5,000,000, generating proceeds of $1,945,000, reduce the monthly principal installments to be made in respect to the term loan, and establish a capital expenditure line of credit in the amount of $2,000,000 which the Company can draw upon from time to time to finance purchases of machinery and equipment, thereby increasing the amount of capital expenditures that the Company may make each year. The principal payments are $59,524 per month commencing in June 2022 with a balloon payment due on December 30, 2025. In connection with these changes, the Company paid an amendment fee of $20,000. On December 15, 2022, the Company made a draw against the capital expenditure line of credit in the amount of $877,913. The principal payments are $10,451 per month commencing in February 2023 with a balloon payment due on December 30, 2025. On January 4, 2023, the Company made an additional draw against the capital expenditure line of credit in the amount of $739,500. The principal payments are $8,804 per month commencing in March 2023 with a balloon payment due on December 30, 2025. Under the terms of the Webster Facility, both the Webster revolving line of credit and the Webster term loan will bear an interest rate equal to the greater of (i) 3.50% and (ii) a rate per annum equal to the rate per annum published from time to time in the “Money Rates” table of the Wall Street Journal (or such other presentation within The Wall Street Journal as may be adopted hereafter for such information) as the base or prime rate for corporate loans at the nation’s largest commercial bank, less sixty-five hundredths (-0.65%) of one percent per annum. The average interest rate charged was 4.50% and 3.50% for the years ended December 31, 2022 and 2021, respectively. Amendment fees paid in connection with the Webster Facility are included in Deferred Financing Costs, Net, Deposits and Other Assets, in the accompanying Condensed Consolidated Balance Sheets and are amortized over the term of the loan. In connection with the Webster Facility, the Company is required to maintain a defined Fixed Charge Coverage Ratio of 1.25 to 1.00 at the end of each Fiscal Quarter. The Webster Facility limits the amount of Capital Expenditures and dividends the Company can pay to its stockholders. Substantially all of the Company’s assets are pledged as collateral under the Webster Facility. As of December 31, 2022, the Company was in compliance with all financial loan covenants. However, the Company was in default of its covenant to provide its audited financial statements to Webster bank within ninety (90) days of its fiscal year end. The Company has subsequently received a waiver from the bank for this default. Finance Lease Obligations The Company entered into a finance lease in November of 2022 for the purchase of new manufacturing equipment. The obligation for the finance lease totaled $328,000 as of December 31, 2022. The lease has an imputed interest rate of 7.48% per annum and is payable monthly with the final payment due in September of 2026. The Company entered into a finance lease in December of 2021 for the purchase of new manufacturing equipment. The obligation for the finance lease totaled $0 and $263,000 as of December 31, 2022 and 2021, respectively. The lease had an imputed interest rate of 4.2% per annum and was payable monthly with the final payment due on December 17, 2026. In connection with the Fourth Amendment to the Webster Facility, this finance lease was paid in full. Year Ended Year Ended December 31, December 31, 2022 2021 Finance Lease cost: Amortization of ROU assets $ - $ 36,000 Interest on lease liabilities 2,182 - Total Lease Costs $ 2,182 $ 36,000 Other Information: Cash Paid for amounts included in the measurement lease liabilities: Financing cash flow from finance lease obligations $ 284,000 $ 5,000 Supplemental disclosure of non-cash activity Acquisition of finance lease ROU asset $ 350,000 $ - December 31, December 31, 2022 2021 Weighted Average Remaining Lease Term - in years 3.9 5.0 Weighted Average Discount rate - % 7.48 % 4.20 % As of December 31, 2022, the aggregate future minimum Finance lease payment, including imputed interest are as follows: For the year ending Amount December 31, 2023 $ 100,000 December 31, 2024 100,000 December 31, 2025 100,000 December 31, 2026 77,000 Total future minimum finance lease payments 377,000 Less: imputed interest (49,000 ) Less: Current portion (79,000 ) Long-term portion $ 249,000 Loans Payable – Financed Assets The Company financed the purchase a delivery vehicle in July 2020. The loan obligation totaled $30,000 and $39,000 as of December 31, 2022 and 2021, respectively. The loan bears no interest and a final payment is due and payable for all unpaid principal on July 20, 2026. Annual maturities of this loan are as follows: For the year ending Amount December 31, 2023 $ 9,000 December 31, 2024 9,000 December 31, 2025 9,000 December 31, 2026 3,000 Loans Payable - financed assets 30,000 Less: Current portion (9,000 ) Long-term portion $ 21,000 Related Party Notes Payable Taglich Brothers, Inc. is a corporation co-founded by two directors of the Company, Michael and Robert Taglich. Taglich Brothers, Inc. has acted as placement agent for various debt and equity financing transactions and has received cash and equity compensation for their services. From 2016 through 2020, the Company entered into various subordinated notes payable and convertible subordinated notes payable with Michael and Robert Taglich. These notes resulted in proceeds to the Company totaling $6,550,000. In connection with these notes, Michael and Robert were issued a total of 35,508 shares of common stock and Taglich Brothers, Inc. was issued promissory notes totaling $554,000 for placement agency fees. At December 31, 2020, related party notes payable totaled $6,012,000 and accrued interest totaled $400,000. On January 1, 2021, the related party subordinated notes due to Michael and Robert Taglich and Taglich Brothers, Inc., were amended to include all accrued interest through December 31, 2020 in the principal balance of the notes. Per the terms of the Webster Facility, these notes remain subordinate to the Webster Facility and are due on July 1, 2026. Approximately $2,732,000 of the related party convertible subordinated notes can be converted at the option of the holder into Common Stock of the Company at $15.00 per share, while the remaining $2,080,000 of the related party convertible subordinated notes can be converted at the option of the holder into common stock of the Company at $9.30 per share. There are no principal payments due on these notes. Under the terms of the Third Amendment to the Webster Facility, the Company is now allowed, subject to certain limitations, to make principal payments of $250,000 per quarter of this subordinated debt. During the year ended December 31, 2022, a principal payment of $250,000 was made against the Subordinated Notes due to Michael Taglich. This payment was made pursuant to the conditions set forth in the Third Amendment to the Webster Facility. The note holders and the principal balance of the notes of December 31, 2022 are shown below: Michael Taglich, Robert Taglich, Taglich Brothers, Chairman Director Inc. Total Convertible Subordinated Notes $ 2,666,000 $ 1,905,000 $ 241,000 $ 4,812,000 Subordinated Notes 1,000,000 350,000 - 1,350,000 Total $ 3,666,000 $ 2,255,000 $ 241,000 $ 6,162,000 Interest expense for the years ended December 31, 2022 and 2021 on all related party notes payable was $487,000 and $460,000, respectively. Approximately $2,732,000 of these notes have an annual rate of interest of 6%, $2,080,000 have an annual interest rate of 7% and $1,600,000 have an annual interest rate of 12%. |
Operating Lease Liabilities
Operating Lease Liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Operating Lease Liabilities [Abstract] | |
OPERATING LEASE LIABILITIES | Note 9. OPERATING LEASE LIABILITIES The Company has operating leases for leased office and manufacturing facilities. The leases have remaining lease terms of one to five years, some of which include options to extend or terminate the leases. Year Ended Year Ended December 31, December 31, 2022 2021 Operating lease cost: $ 972,000 $ 1,069,000 Total lease cost $ 972,000 $ 1,069,000 Other Information Cash paid for amounts included in the measurement lease liability: Operating cash flow from operating leases $ 1,006,000 $ 977,000 December 31, December 31, 2022 2021 Weighted Average Remaining Lease Term - in years 3.64 4.53 Weighted Average discount rate - % 8.89 % 8.89 % The aggregate undiscounted cash flows of operating lease payments, with remaining terms greater than one year are as follows: Amount December 31, 2023 $ 1,038,000 December 31, 2024 1,070,000 December 31, 2025 992,000 December 31, 2026 729,000 Total future minimum lease payments 3,829,000 Less: discount (588,000 ) Total operating lease maturities 3,241,000 Less: current portion of operating lease liabilities (778,000 ) Total long term portion of operating lease maturities $ 2,463,000 |
Liability Related to the Sale o
Liability Related to the Sale of Future Proceeds from Disposition of Subsidiary | 12 Months Ended |
Dec. 31, 2022 | |
Liability Related to Sale of Future Proceeds from Disposition of Subsidiary [Abstract] | |
LIABILITY RELATED TO THE SALE OF FUTURE PROCEEDS FROM DISPOSITION OF SUBSIDIARY | Note 10. LIABILITY RELATED TO THE SALE OF FUTURE PROCEEDS FROM DISPOSITION OF SUBSIDIARY In connection with the sale of the Company’s wholly-owned subsidiary, AMK Welding, Inc. (“AMK”) to Meyer Tool, Inc., (“Meyer”) in 2017, Meyer was obligated to pay the Company within 30 days after the end of each calendar quarter, commencing April 1, 2017, an amount equal to five (5%) percent of the net sales of AMK for that quarter until the aggregate payments made to the Company (the “Meyer Agreement”) equals $1,500,000 (the “Maximum Amount”). In order to increase liquidity, on January 15, 2019, the Company entered into a “Purchase Agreement” with 15 accredited investors (the “Purchasers”), including Michael and Robert Taglich, pursuant to which the Company assigned to the Purchasers all of its rights, title and interest to the remaining $1,137,000 of the $1,500,000 in payments due from Meyer for the sale of AMK (the “Remaining Amount”) for an immediate payment of $800,000, including $100,000 from each of Michael and Robert Taglich, and $75,000 for the benefit of the children of Michael Taglich. The timing of the payments is based upon the net sales of AMK. The Company recognized $94,000 and $326,000 of non-cash income for the years ended December 31, 2022 and 2021, respectively, reflected in “other income, net” on the Consolidated Statements of Operations and recorded $35,000 and $98,000 of related non-cash interest expense related to the Purchase Agreement for the years ended December 31, 2022 and 2021, respectively. The table below shows the activity within the liability account for the years ended December 31, 2022 and 2021: December 31, December 31, Liabilities related to sale of future proceeds from disposition of subsidiaries - beginning balance $ 59,000 $ 322,000 Non-Cash other income recognized (94,000 ) (360,000 ) Non-Cash interest expense recognized 35,000 97,000 Liabilities related to sale of future proceeds from disposition of subsidiary - ending balance - 59,000 Less: unamortized transaction costs - (3,000 ) Liability related to sale of future proceeds from disposition of subsidiary, net $ - $ 56,000 |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2022 | |
Stockholders' Equity [Abstract] | |
STOCKHOLDERS' EQUITY | Note 11. STOCKHOLDERS’ EQUITY On October 4, 2022 the Company announced a reverse stock split of its authorized, issued and outstanding shares of common stock at a ratio of 1-for-10. The reverse stock split was effective on October 18, 2022, and its common stock began trading on a post-split-adjusted basis at that time. As result of the reverse stock split there were no fractional shares issued and all holders were rounded up to the next whole share. An additional 7,287 shares were issued to account for this. As such all references to shares and per share price has been adjusted to retrospectively account for this transaction. Common Stock – Issuances of Securities The Company issued 27,849 and 16,981 shares totaling $216,000 and $210,000 for the years ended December 31, 2022 and 2021, respectively. Additionally, the Company issued 5,122 shares of common stock upon the cashless exercise of stock options during the year ended December 30, 2022. During the first quarter of 2023, the Company issued 12,331 shares of common stock in payment of directors’ fees totaling $54,000. |
Employee Benefits Plans
Employee Benefits Plans | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFITS PLANS | Note 12. EMPLOYEE BENEFITS PLANS The Company employs both union and non-union employees and maintains several benefit plans. Union Substantially the entire workforce at AIM is subject to a union contract with the United Service Workers Union TUJAT Local 355, EIN 11-1772919 (the “Union”). The Agreement was renewed as of December 31, 2021 and expires on December 31, 2024 and covers all of AIM’s production personnel, of which there are approximately 131 people. AIM is required to make a monthly contribution to each of the Union’s United Welfare Fund and the United Services Worker’s Security Fund. This is the only pension benefit required by the Agreement and the Company is not obligated for any future defined benefit to retirees. The Agreement contains a “no-strike” clause, whereby, during the term of the Agreement, the Union will not strike and AIM will not lockout its employees. Medical benefits for union employees are provided through a policy with Insperity Services, Inc. (“Insperity”), the costs of which are substantially borne by the Company. In addition, the Company is obligated to make contributions for union dues and a security fund (defined contribution plan) for the benefit of each union employee. Contributions to the security fund amounted to $155,000 and $147,000 for the years ended December 31, 2022 and 2021, respectively. The Union’s retirement plan is a defined contribution plan. As such, the Company is not responsible for the obligations of other companies in the Union’s retirement plan. Others All of the Company’s employees are covered under a co-employment agreement with Insperity, a professional employer organization that provides out-sourced human resource services. The Company has defined contribution plans under Section 401(k) of the Internal Revenue Code (the “Plans”). Pursuant to the Plans, qualified employees may contribute a percentage of their pre-tax eligible compensation to the Plan. The Company does not match any contributions that employees may make to the Plans. |
Contingency
Contingency | 12 Months Ended |
Dec. 31, 2022 | |
Contingencies [Abstract] | |
CONTINGENCY | Note 13. CONTINGENCY On October 2, 2018, Contract Pharmacal Corp. (“Contract Pharmacal”) commenced an action, relating to a Sublease entered into between the Company and Contract Pharmacal in May 2018 with respect to the property that was formerly occupied by the Company’s former subsidiary WMI, at 110 Plant Avenue, Hauppauge, New York. In the action Contract Pharmacal sought damages for an amount in excess of $1,000,000 for the Company’s failure to make the entire premises available by the Sublease commencement date. On July 8, 2021, the Court denied Contract Phamacal’s motion for summary judgement. In the Order, the court granted Contract Pharmacal’s Motions to drop its claim for specific performance and to amend its Complaint to reduce its claim for damages to $700,000. Subsequently, Contact Pharmacal moved to amend its Complaint. The Company opposed this and the Court denied the request to amend the Complaint. Contract Pharmacal filed a Motion to reargue which the Court denied on November 30, 2021. On March 10, 2022, Contract Pharmacal filed an appeal to the Court’s decision with the Appellate Division which the Company has opposed. The Company disputes the validity of the claims asserted by Contract Pharmacal and intends contest them vigorously. From time to time the Company may be engaged in various lawsuits and legal proceedings in the ordinary course of business. The Company is currently not aware of any legal proceedings the ultimate outcome of which, in its judgment based on information currently available, would have a material adverse effect on its business, financial condition or operating results. There are no proceedings in which any of the Company’s directors, officers or affiliates, or any registered or beneficial stockholder of its common stock, is an adverse party or has a material interest adverse to our interest. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | Note 14. INCOME TAXES The provision for income taxes for the years ended December 31, 2022 and 2021, is set forth below: Current and Deferred Year Ended Year Ended Federal $ - $ - States - - Total Provision for Income Taxes $ - $ - The following is a reconciliation of our income tax rate computed using the federal statutory rate to our actual income tax rate for the years ended December 31, 2022 and 2021 is set forth below: Year Ended Year Ended U.S. statutory income tax rate 21.0 % 21.0 % State taxes, net of federal benefit 4.1 % 4.1 % Permanent difference, overaccruals, and non-deductible items (6.9 )% 6.3 % Change in state rate 0.7 % 8.3 % Deferred tax valuation allowance (18.4 )% (38.7 )% Other (.5 )% (1.0 )% Total 0.00 % 0.00 % The components of net deferred tax assets at December 31, are set forth below: December 31, December 31, 2021 Deferred tax assets: Current: Net operating loss $ 5,075,000 $ 4,959,000 Allowance for doubtful accounts 71,000 149,000 Inventory - IRC 263A adjustment 411,000 377,000 Stock based compensation - options and restricted stock 183,000 183,000 Capitalized engineering costs 331,000 430,000 Amortization - NTW Transaction 359,000 445,000 Inventory reserve 932,000 790,000 Deferred gain on sale of real estate 36,000 45,000 Accrued expenses 30,000 18,000 Disallowed interest 1,663,000 1,576,000 Operating lease liabilities 814,000 984,000 Total deferred tax asset before valuation allowance 9,905,000 9,956,000 Valuation allowance (7,701,000 ) (7,503,000 ) Total deferred tax asset after valuation allowance 2,204,000 2,453,000 Deferred tax liabilities: Property and equipment (1,583,000 ) (1,697,000 ) Operating Lease ROU assets (621,000 ) (756,000 ) Total deferred tax liabilities (2,204,000 ) (2,453,000 ) Net deferred tax asset $ - $ - During the year ended December 31, 2022, the Company determined that certain attributes of Deferred Tax Assets and Liabilities were incorrect for December 31, 2021 and 2020. See Note 16 for further information. During the years ended December 31, 2022 and 2021, the Company recorded a valuation allowance equal to its net deferred tax assets. The Company determined that due to a recent history of net losses, at this time sufficient uncertainty exists regarding the future realization of these deferred tax assets through future taxable income. If, in the future, the Company believes that it is more likely than not that these deferred tax benefits will be realized, the valuation allowances will be reduced or eliminated. With a full valuation allowance, any change in the deferred tax asset or liability is fully offset by a corresponding change in the valuation allowance. At December 31, 2022 and 2021, the Company provided a valuation allowance on its net deferred tax assets of $7,701,000 and $7,503,000, respectively. As of December 31, 2022, the Company had a Federal net operating loss carry forward of approximately $22,420,000, of which approximately $12,220,000 expires from 2023 through 2037 and $10,200,000 does not expire. In addition, the Company has net operating loss carry forwards from various states of approximately $22,600,000 which expire from 2035 through 2042. At December 31, 2022 and 2021, the Company had no material unrecognized tax benefits and no adjustments to liabilities or operations were required. The Company does not expect that its unrecognized tax benefits will materially increase within the next twelve months. The Company recognizes interest and penalties related to uncertain tax positions in interest expense. As of December 31, 2022, and 2021, the Company has not recorded any provisions for accrued interest and penalties related to uncertain tax positions. In certain cases, the Company’s uncertain tax positions are related to tax years that remain subject to examination by the relevant tax authorities. The Company files federal and state income tax returns in jurisdictions with varying statutes of limitations. The 2019 through 2022 tax years generally remain subject to examination by federal and state tax authorities. In August 2022, the Inflation Reduction Act of 2022, (the “IRA”), was signed into law which includes a stock buyback excise tax of 1% on share repurchases, which will apply to net stock buybacks after December 31, 2022. We do not expect this to have a material impact if and when share repurchases occur. |
Stock Options and Warrants
Stock Options and Warrants | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
STOCK OPTIONS AND WARRANTS | Note 15. STOCK OPTIONS AND WARRANTS Stock-Based Compensation Stock Options In June 2022, the shareholders of the Company approved the adoption of the Company’s 2022 Equity Incentive Plan (“2022 Plan”) which authorized the grant of rights with respect to up to 100,000 shares. During the years ended December 31, 2022 and 2021, the Company granted options to purchase 62,000 and 84,750 shares of common stock, respectively, to certain of its employees and directors. The Company recorded stock based compensation expense of $310,000 and $443,000 in its Consolidated Statements of Operations for the years ended December 31, 2022 and 2021, respectively, and such amounts were included as a component of operating expenses. The fair values of stock options granted were estimated using the Black-Sholes option-pricing model with the following assumptions for the years ended December 31: 2022 2021 Risk-free interest rates 1.38% - 2.73 % 0.31% - 0.83 % Expected life (in years) 2.50 - 4.00 2.50 - 4.00 Expected volatility 71.6% - 72.0 % 73.2% - 75.2 % Dividend yield 0.00 % 0.00 % Weighted-average grant date fair value per share $ 3.97 $ 6.01 The expected life is the number of years that the Company estimates, based upon history, that the options will be outstanding prior to exercise or forfeiture. Expected life is determined using the “simplified method” permitted by Staff Accounting Bulletin No. 107. In addition to the inputs referenced above regarding the option pricing model, the Company adjusts the stock-based compensation expense for estimated forfeiture rates that are revised prospectively according to forfeiture experience. The stock volatility factor is based on the Company’s experience. A summary of the status of the Company’s stock options as of December 31, 2022 and 2021, and changes during the two years then ended are presented below. Wtd. Avg. Exercise Options Price Balance, January 1, 2021 185,900 $ 15.60 Granted during the year 84,750 13.00 Exercised during the year (11,000 ) 10.41 Terminated/Expired during the year (12,800 ) 61.70 Balance, December 31, 2021 246,850 $ 12.54 Granted during the year 62,000 8.40 Exercised during the year - - Terminated/Expired during the year (5,800 ) 12.04 Balance, December 31, 2022 303,050 $ 11.70 Exercisable at December 31, 2022 245,466 $ 12.07 Issuance of Stock Options Issued in 2022 On January 31, 2022, the Company granted certain employees, stock options to purchase an aggregate of 3,000 shares of the Company’s common stock at a price of $8.50 per share. The options expire on the fifth anniversary of the grant date and vest over a term of three years. On April 6, 2022, the Company granted to its directors, stock options to purchase an aggregate of 6,000 shares of the Company’s common stock at a price of $8.40 per share. The options expire on the fifth anniversary of the grant date and vest over a term of one year. On April 11, 2022, the Company granted to certain members of management and certain employees, stock options to purchase an aggregate of 53,000 shares of the Company’s common stock at a price of $8.40 per share. The options expire on the fifth anniversary of the grant date and vest over a term of three years. Issued in 2021 On January 11, 2021, the Company granted to its directors, stock options to purchase an aggregate of 7,000 shares of the Company’s common stock at a price of $13.20 per share. The options expire on the seventh anniversary of the grant date and vested over a term of one year. On March 24, 2021, the Company granted to certain members of management and certain employees, stock options to purchase an aggregate of 32,750 shares of the Company’s common stock at a price of $13.90 per share. The options expire on the fifth anniversary of the grant date and vest over a term of three years. On July 30, 2021, the Company granted to certain members of management and certain employees, stock options to purchase an aggregate of 41,500 shares of the Company’s common stock at a price of $12.20 per share. The options expire on the fifth anniversary of the grant date and vest over a term of one to three years. On January 11, 2021, the Company granted to its directors, stock options to purchase an aggregate of 7,000 shares of the Company’s common stock at a price of $13.20 per share. The options expire on the seventh anniversary of the grant date and vested over a term of one year. The following table summarizes information about outstanding stock options at December 31, 2022: Range of Exercise Price Number Wtd. Avg, Wtd. Avg. $8.40 - $15.60 303,050 2.7 years $ 11.70 The following table summarizes information about exercisable stock options at December 31, 2022: Range of Exercise Price Number Wtd. Avg, Wtd. Avg. $8.40 - $15.60 246,466 2.4 years $ 12.07 As of December 31, 2022, there was $95,000 of unrecognized compensation cost related to non-vested stock option awards, which is to be recognized over the remaining weighted average vesting period of 1.3 years. The aggregate intrinsic value at December 31, 2022 was based on the Company’s closing stock price of $4.25 was $0. The aggregate intrinsic value at December 31, 2021 was based on the Company’s closing stock price of $9.10 was approximately $12,000. The aggregate intrinsic value was calculated based on the positive difference between the closing market price of the Company’s Common Stock and the exercise prices of the underlying options. The weighted average fair value of options granted during the years ended December 31, 2022 and 2021 was $8.40 and $6.00 per share, respectively. The total intrinsic value of options exercised during the years ended December 31, 2022 and 2021 was $0 and $100,000 respectively. The total fair value of shares vested during the years ended December 31, 2022 and 2021 was $316,000 and $339,000, respectively. Warrants During both the years ended December 31, 2022 and 2021, the Company did not issue any warrants. The following tables summarize the Company’s outstanding warrants as of December 31, 2022 and changes during the two years then ended: Wtd. Avg. Wtd. Avg. Remaining Exercise Contractual Warrants Price Life (years) Balance, January 1, 2021 218,290 $ 29.00 1.43 Granted during the period - - - Terminated/Expired during the period (67,569 ) - - Balance, December 31, 2021 150,721 $ 21.94 0.75 Granted during the period - - - Terminated/Expired during the period (122,721 ) $ 23.75 - Balance, December 31, 2022 28,000 $ 14.00 0.75 Exercisable at December 31, 2022 28,000 $ 14.00 0.75 The aggregate intrinsic value at both December 31, 2022 and 2021 was $0 based on the Company’s closing stock price of $4.15 and $9.10, respectively. |
Revision of Previously Issued C
Revision of Previously Issued Consolidated Financial Statement | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of Revision of Previously Issued Financial Statement [Abstract] | |
Revision of Previously Issued Consolidated Financial Statement | Note 16. Revision of Previously Issued Consolidated Financial Statement Due to errors discovered in the Company’s 2020 tax return, the Company revised certain previously issued disclosures related to the components of its deferred tax assets and liabilities and valuation allowance as of December 31, 2021 and 2020. Additionally, the Company has revised the reconciliation of its income tax rate computed using the federal statutory rate for the year ended December 31, 2021. The errors related primarily to the misapplication of the carryback of net operating losses under the CARES Act provision and mathematical errors related to the Company’s inventory reserve. Since the Company provided a full valuation allowance on its net deferred tax assets, there was no impact to the Consolidated Balance Sheet as of December 31, 2021 and the Consolidated Statements of Operations, Cash Flows and Stockholders’ Equity for the year ended December 31, 2021. As a result of the errors, the Company will be amending its 2020 and 2021 income tax returns. The Company had previously disclosed that its net operating loss carry forward as of December 31, 2021 was $29,100,000. The proper amount that should have been disclosed was $21,971,000. Along with this finding, the Company further reviewed its disclosure of the rate reconciliation and deferred tax calculation along with the valuation allowance of its net deferred tax assets. Other items that were corrected in the disclosure included disallowed interest, stock based compensation and operating lease liability along with the associated operating lease ROU assets. The below table summarizes the revisions to the reconciliation of our income tax rate computed using the federal statutory rate to our actual income tax rate for the year ended December 31, 2021: Year Ended Year Ended 2021 Adjustment 2021 U.S. statutory income tax rate 21.0 % 0.0 % 21.0 % State taxes, net of federal benefit 5.1 % (1.0 )% 4.1 % Permanent difference, overaccruals, and non-deductible items (40.4 )% 46.7 % 6.3 % Change in state rate 0.0 % 8.3 % 8.3 % Deferred tax valuation allowance 14.3 % (53.0 )% (38.7 )% Other 0.0 % (1.0 )% (1.0 )% Total 0.0 % 0.0 % 0.0 % The table below summarizes the revisions to the attributes of the Deferred Tax Assets as of December 31, 2021: December 31, December 31, 2021 As Reported Adjustment 2021 Deferred tax assets: Net operating loss $ 6,737,000 $ (1,778,000 ) $ 4,959,000 Allowance for doubtful accounts 155,000 (6,000 ) 149,000 Inventory - IRC 263A adjustment 394,000 (17,000 ) 377,000 Stock based compensation - options and restricted stock 393,000 (210,000 ) 183,000 Capitalized engineering costs 449,000 (19,000 ) 430,000 Amortization - NTW Transaction 442,000 3,000 445,000 Inventory reserve 824,000 (34,000 ) 790,000 Deferred gain on sale of real estate 47,000 (2,000 ) 45,000 Accrued expenses 204,000 (186,000 ) 18,000 Disallowed interest 1,286,000 290,000 1,576,000 Operating lease liability 235,000 749,000 984,000 Capital loss carryforward 88,000 (88,000 ) - Total non-current deferred tax asset before valuation allowance 11,254,000 (1,298,000 ) 9,956,000 Valuation allowance (9,628,000 ) 2,125,000 (7,503,000 ) Total non-current deferred tax asset after valuation allowance 1,626,000 827,000 2,453,000 Deferred tax liabilities: Property and equipment (1,626,000 ) (71,000 ) (1,697,000 ) Operating lease ROU assets - (756,000 ) (756,000 ) Total deferred tax liabilities (1,626,000 ) (827,000 ) (2,453,000 ) Net deferred tax asset $ - $ - $ - The table below summarizes the revisions to the attributes of the Deferred Tax Assets as of December 31, 2020: December 31, December 31, 2020 Adjustment 2020 Deferred tax assets: Net operating loss $ 6,594,000 $ (1,422,000 ) $ 5,172,000 Allowance for doubtful accounts 252,000 (3,000 ) 249,000 Inventory - IRC 263A adjustment 341,000 (3,000 ) 338,000 Stock based compensation - options and restricted stock 277,000 (73,000 ) 204,000 Capitalized engineering costs 336,000 228,000 564,000 Deferred Rent 4,000 - 4,000 Amortization - NTW Transaction 495,000 (73,000 ) 422,000 Inventory reserve 1,250,000 (579,000 ) 671,000 Deferred gain on sale of real estate 132,000 (1,000 ) 131,000 Accrued expenses 158,000 (158,000 ) - Disallowed interest 1,813,000 (18,000 ) 1,795,000 Operating lease liability 292,000 905,000 1,197,000 Total non-current deferred tax asset before valuation allowance 11,944,000 (1,197,000 ) 10,747,000 Valuation allowance (9,394,000 ) 1,262,000 (8,132,000 ) Total non-current deferred tax asset after valuation allowance 2,550,000 65,000 2,615,000 Deferred tax liabilities: Property and equipment (2,150,000 ) 443,000 (1,707,000 ) Operating lease ROU assets - (908,000 ) (908,000 ) Other (400,000 ) 400,000 - Total deferred tax liabilities (2,550,000 ) (65,000 ) (2,615,000 ) Net deferred tax asset $ - $ - $ - |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 17. Subsequent Events On April 18, 2023, we received a notice from NYSE American (the “Exchange”) stating that the Company is not in compliance with the continued listing standards of the Exchange under the timely filing criteria included in Section 1007 of the NYSE American Company Guide because the Company failed to file by the extended due date of April 17, 2023, its Annual Report on Form 10-K for the year ended December 31, 2022 (the “Form 10-K”). In accordance with Section 1007 of the Company Guide, the Company will have six months from the date of the filing delinquency, or until October 17, 2023 (the “Initial Cure Period”), to file the Form 10-K with the Securities and Exchange Commission. If the Company fails to file the Form 10-K during the Initial Cure Period, the Exchange may, in its sole discretion, provide an additional six-month cure period depending on the Company’s specific circumstances. Upon filing of the Form 10-K the Company will cure this delinquency. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include accounts of the Company and its wholly-owned subsidiaries. Significant intercompany accounts and transactions have been eliminated in consolidation. |
Accounts Receivable | Accounts Receivable Accounts receivable are reported at their outstanding unpaid principal balances net of allowances for uncollectible accounts. The Company provides for allowances for uncollectible receivables based on management’s estimate of uncollectible amounts considering age, collection history, and any other factors considered appropriate. The Company writes off accounts receivable against the allowance for doubtful accounts when a balance is determined to be uncollectible. |
Inventory Valuation | Inventory Valuation The Company values inventory at the lower of cost on a first-in-first-out basis or an estimated net realizable value. The Company generally purchases raw materials and supplies uniquely suited to the production of larger more complex parts, such as landing gear, only when non-cancellable contracts for orders have been received for finished goods. It occasionally produces larger more complex products, such as landing gear, in excess of purchase order quantities in anticipation of future purchase order demand, when it is economically advantageous to do so, since historically this excess has been used in fulfilling future purchase orders. The Company purchases supplies and materials useful in a variety of products as deemed necessary even though orders have not been received. The Company periodically evaluates inventory items that are not secured by purchase orders and establishes write-downs to estimated net realizable value. The Company writes-down inventory to estimated net realizable value for excess quantities, slow-moving goods, obsolescence and for other impairments of value. |
Property and Equipment | Property and Equipment Property and equipment are carried at cost net of accumulated depreciation and amortization. Repair and maintenance charges are expensed as incurred. Property, equipment, and improvements are depreciated using the straight-line method over the estimated useful lives of the assets or the particular improvements. Expenditures for repairs and improvements in excess of $10,000 that add to the productive capacity or extend the useful life of an asset are capitalized. Upon disposition, the cost and related accumulated depreciation are removed from the accounts and any related gain or loss is reflected in earnings. |
Long-Lived and Intangible Assets | Long-Lived and Intangible Assets Identifiable intangible assets are amortized using the straight-line method over the period of expected benefit. Long-lived assets and intangible assets subject to amortization to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the related carrying amount may be impaired. The Company records an impairment loss if the undiscounted future cash flows are found to be less than the carrying amount of the asset. If an impairment loss has occurred, a charge is recorded to reduce the carrying amount of the asset to fair value. |
Deferred Financing Costs | Deferred Financing Costs Costs incurred with obtaining and executing revolving debt arrangements are capitalized and recorded in other current assets and amortized using the effective interest method over the term of the related debt. Costs incurred with obtaining and executing other debt arrangements are presented as a direct deduction from the carrying value of the associated debt and also amortized using the effective interest method over the term of the related debt. The amortization of financing costs is included in interest and financing costs in the Consolidated Statements of Operations. |
Contract Costs Receivable | Contract Costs Receivable Contract costs receivable represent costs to be reimbursed from a terminated contract. The Company expects to collect the receivable in the next twelve months. Contract costs receivable totals $296,000 and $0 as of December 31, 2022 and 2021, respectively. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue to depict the transfer of promised goods to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods. Revenue is recognized as the customer obtains control of the goods and services promised in the contract (i.e., performance obligations). In evaluating our contracts with our customers, we have determined that there is no future performance obligation once delivery has occurred. Our revenue is generated from fixed-price contracts. Under fixed-price contracts, we agree to perform the specified work for a pre-determined price, which we estimate during the bidding process before the contract is awarded. To the extent our actual costs vary from the estimates upon which the price was negotiated, we will generate more or less profit or could incur a loss. We evaluate the products promised in each contract at inception to determine whether the contract should be accounted for as having one or more performance obligations. Our contracts are typically accounted for as one performance obligation. We classify net sales as products on our consolidated statements of operations based on the predominant attributes of the performance obligations. We determine the transaction price for each contract based on the consideration we expect to receive for the products being provided under the contract. At the inception of a contract, we estimate the transaction price based on our current rights and do not contemplate future modifications (including unexercised options) or follow-on contracts until they become legally enforceable. Contracts can be subsequently modified to include changes in specifications, requirements or price, which may create new or change existing enforceable rights and obligations. Depending on the nature of the modification, we consider whether to account for the modification as an adjustment to the existing contract or as a separate contract. Generally, modifications to our contracts are not distinct from the existing contract due to the significant integration and interrelated tasks provided in the context of the contract. Therefore, such modifications are accounted for as if they were part of the existing contract and recognized as a cumulative adjustment to revenue. We recognize revenue at the point in time in which the performance obligation is fully satisfied. This is fully satisfied when the product has shipped, which is the point in time the customer obtains control of the product and we no longer maintain control of the product. The Company’s rights to payments for goods transferred to customers are conditional only on the passage of time and not on any other criteria. Payment terms and conditions vary by contract, although terms generally include a requirement of payment within 30 to 75 days. Payments received in advance from customers are recorded as customer deposits until earned, at which time revenue is recognized. The Terms and Conditions contained in our customer purchase orders often provide for liquidated damages in the event that a stop work or contract termination order is issued prior to final delivery. While the products we manufacture are specific to the type of aircraft that they are used on, there are alternate customers that can acquire and utilize these products. The Company utilizes a Returned Merchandise Authorization or RMA process for determining whether to accept returned products. Customer requests to return products are reviewed by the contracts department and if the request is approved, a credit is issued upon receipt of the product. Net sales represent gross sales less these returns and allowances. |
Customer Deposits | Customer Deposits The Company receives advance payments on certain contracts with the remainder of the contract balance due upon the shipment of the final product once the customer inspects and approves the product for shipment. At that time, the entire amount will be recognized as revenue and the deposit will be applied to the customer’s invoice. At December 31, 2022 and 2021, customer deposits were $781,000 and $1,470,000 respectively. The Company recognized revenue of $440,000 during year ended December 31, 2022, that was included in the customer deposits balance as of December 31, 2021. The Company recognized revenue of $507,000 during the year ended December 31, 2021, that was included in the customer deposits balance of $917,000 as of December 31, 2020. |
Backlog | Backlog Backlog represents executed non-cancellable contracts that represent firm purchase orders that are deliverable over the next 18-month period. As of December 31, 2022, backlog relating to remaining performance obligations in contracts was approximately $60,000,000. The Company expects to recognize revenue amounts in future periods related to these remaining performance obligations as follows: approximately $22,500,000 to $26,500,000 from January 1, 2023 - June 30, 2023, and approximately $15,000,000 to $18,000,000 from July 1, 2023 through December 31, 2023. This expectation assumes that raw material suppliers and outsourced processing is completed and delivered on-time and that the Company’s customers will accept delivery as scheduled. The Company anticipates that sales during the aforementioned periods will also include sales pursuant to contracts that are not currently in backlog. |
Use of Estimates | Use of Estimates In preparing the financial statements, management is required to make estimates and assumptions that affect the reported amounts in the financial statements and accompanying notes. The more significant management estimates are the allowance for doubtful accounts, useful lives of property and equipment, provisions for obsolescence, excess and slow moving inventory, accrued expenses and income taxes, which includes the determination of the valuation allowance for deferred tax assets. Actual results could differ from those estimates. Changes in facts and circumstances may result in revised estimates, which are recorded in the period in which they become known. |
Credit and Concentration Risks | Credit and Concentration Risks A large percentage of the Company’s revenues are derived from a small number of customers for U.S. Military Aviation. There were four customers that represented 76.5% of total sales, and three customers that represented 75.4% of total sales for the years ended December 31, 2022 and 2021, respectively. This is set forth in the table below. Customer Percentage of Sales 2022 2021 1 29.3 % 37.2 % 2 21.4 % 25.7 % 3 14.3 % 12.5 % 4 11.5 % * * Customer was less than 10% of sales for the year-ended December 31, 2021 There were three customers that represented 70.3% of gross accounts receivable and three customers that represented 74.7% of gross accounts receivable at December 31, 2022 and 2021, respectively. This is set forth in the table below. Percentage of Receivables December 31, December 31, Customer 2022 2021 1 33.1 % 50.3 % 2 23.6 % 12.7 % 3 13.6 % ** 4 * 11.7 % * Customer was less than 10% of accounts receivable at December 31, 2022 ** Customer was less than 10% of accounts receivable at December 31, 2021 |
Disaggregation of Revenue | Disaggregation of Revenue The following table summarizes revenue from contracts with customers for the years ended December 31, 2022 and 2021: Product December 31, December 31, Military $ 43,993,000 $ 51,559,000 Commercial 9,245,000 7,380,000 Total $ 53,238,000 $ 58,939,000 |
Cash | Cash During the year, the Company had occasionally maintained balances in its bank accounts that were in excess of the FDIC limit. The Company has not experienced any losses on these accounts. |
Major Suppliers | Major Suppliers The Company has several key sole-source suppliers of various parts that are important for one or more of its products. These suppliers are its only source for such parts and, therefore, in the event any of them were to go out of business or be unable to provide parts for any reason, its business could be severely harmed. |
Income Taxes | Income Taxes The Company accounts for income taxes in accordance with accounting guidance now codified as FASB ASC 740, “Income Taxes,” which requires that the Company recognize deferred tax liabilities and assets based on the differences between the financial statement carrying amounts and the tax bases of assets and liabilities, using enacted tax rates in effect in the years the differences are expected to reverse. The provision for, or benefit from, income taxes includes deferred taxes resulting from the temporary differences in income for financial and tax purposes using the liability method. Such temporary differences result primarily from the differences in the carrying value of assets and liabilities. Future realization of deferred income tax assets requires sufficient taxable income within the carryback, carryforward period available under tax law. We evaluate, on a quarterly basis whether, based on all available evidence, it is probable that the deferred income tax assets are realizable. Valuation allowances are established when it is more likely than not that the tax benefit of the deferred tax asset will not be realized. The evaluation, as prescribed by ASC 740-10, “Income Taxes,” includes the consideration of all available evidence, both positive and negative, regarding historical operating results including recent years with reported losses, the estimated timing of future reversals of existing taxable temporary differences, estimated future taxable income exclusive of reversing temporary differences and carryforwards, and potential tax planning strategies which may be employed to prevent an operating loss or tax credit carryforward from expiring unused. The Company accounts for uncertainties in income taxes under the provisions of FASB ASC 740 which clarify the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements. The standard prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The Subtopic provides guidance on the de-recognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. |
Earnings (Loss) per share | Earnings (Loss) per share Basic earnings (loss) per share (“EPS”) is computed by dividing the net income applicable to common stockholders by the weighted-average number of shares of common stock outstanding for the period. For purposes of calculating diluted earnings (loss) per common share, the numerator includes net income (loss) plus interest on convertible notes payable assumed converted as of the first day of the period. The denominator includes both the weighted-average number of shares of common stock outstanding during the period and the number of common stock equivalents if the inclusion of such common stock equivalents is dilutive. Dilutive common stock equivalents potentially include stock options and warrants using the treasury stock method and convertible notes payable using the if-converted method. The following is the calculation of income applicable to common stockholders utilized to calculate the numerator for EPS: December 31, December 31, 2022 2021 Net (Loss) Income – Basic $ (1,076,000 ) $ 1,627,000 Add: Convertible Note Interest for Potential Note Conversion - 322,000 Add: Convertible Note debt discount for Potential Note Conversion - - Net (Loss) Income used to calculate diluted earnings per share $ (1,076,000 ) $ 1,949,000 The following is a reconciliation of the denominators of basic and diluted EPS computations: December 31, December 31, 2022 2021 Weighted average shares outstanding used to compute basic earnings per share 3,227,116 3,204,937 Effect of dilutive stock options and warrants - 31,737 Effect of dilutive convertible notes payable - 405,743 Weighted average shares outstanding and dilutive securities used to compute dilutive earnings per share 3,227,116 3,642,417 Per share amount – basic $ (0.33 ) $ 0.51 Per share amount – diluted $ (0.33 ) $ 0.45 The following securities have been excluded from the calculation as the exercise price was greater than the average market price of the common shares: December 31, December 31, 2022 2021 Stock Options 245,466 118,350 Warrants 28,000 122,721 273,466 241,071 |
Stock-Based Compensation | Stock-Based Compensation The Company accounts for stock-based compensation in accordance with FASB ASC 718, “Compensation – Stock Compensation.” Under the fair value recognition provision of the ASC, stock-based compensation cost is estimated at the grant date based on the fair value of the award. The Company estimates the fair value of stock options and warrants granted using the Black-Scholes-Merton option pricing model and stock grants at their closing reported market value. Stock compensation expense for employees amounted to $310,000 and $443,000 for the years ended December 31, 2022 and 2021, respectively. Stock compensation expense for directors amounted to $216,000 and $210,000 for the years ended December 31, 2022 and 2021, respectively. Stock compensation expenses for employees and directors were included in operating expenses in the accompanying Consolidated Statements of Operations. |
Goodwill | Goodwill Goodwill represented the excess of the acquisition cost of businesses over the fair value of the identifiable net assets acquired. The goodwill amount of $163,000 at December 31, 2021 related to the acquisition of NTW. The Company accounts for the impairment of goodwill under the provisions of ASU 2017-04 (“ASU 2017-04”), “Intangibles Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.” ASU 2017-04 gives companies the option to perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. The Company performed impairment testing for goodwill annually, or more frequently when indicators of impairment existed. The Company determined that the goodwill was fully impaired at December 31, 2022. The impairment charge of $163,000 is included in operating expenses in the Consolidated Statement of Operations. |
Freight Out | Freight Out Freight out is included in operating expenses and amounted to $162,000 and $135,000 for the years ended December 31, 2022 and 2021, respectively. |
Leases | Leases In accordance with FASB ASC 842, “Leases” (“ASC 842”), the Company records a right-of-use (ROU) asset and a lease liability on the balance sheet for all leases with terms longer than 12 months and classifies them as either operating or finance leases. The lease classification affects the expense recognition in the income statement. Operating lease charges are recorded entirely in operating expenses. Finance lease charges are split, where amortization of the right-of- use asset is recorded in operating expenses and an implied interest component is recorded in interest expense. At the inception of an arrangement, the Company determines whether the arrangement is or contains a lease based on the unique facts and circumstances present and the classification of the lease including whether the contract involves the use of a distinct identified asset, whether the Company obtains the right to substantially all the economic benefit from the use of the asset, and whether the Company has the right to direct the use of the asset. Leases with a term greater than one year are recognized on the balance sheet as ROU assets, lease liabilities and, if applicable, long-term lease liabilities. The Company has elected not to recognize on the balance sheet leases with terms of one year or less under practical expedient. For contracts with lease and non-lease components, the Company has elected not to allocate the contract consideration, and to account for the lease and non-lease components as a single lease component. Lease liabilities and their corresponding ROU assets are recorded based on the present value of lease payments over the expected lease term. The implicit rate within our operating leases are generally not determinable and, therefore, the Company uses the incremental borrowing rate at the lease commencement date to determine the present value of lease payments. The determination of the Company’s incremental borrowing rate requires judgment. The Company determines the incremental borrowing rate for each lease using our estimated borrowing rate, adjusted for various factors including level of collateralization, term and currency to align with the terms of the lease. The operating lease ROU asset also includes any lease prepayments, offset by lease incentives. An option to extend the lease is considered in connection with determining the ROU asset and lease liability when it is reasonably certain we will exercise that option. An option to terminate is considered unless it is reasonably certain we will not exercise the option. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements Effective January 1, 2022, the Company adopted ASU No. 2020-06, Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40) (“ASU 2020-06), which is intended to address issues identified as a result of the complexity associated with applying accounting principles generally accepted in the United States of America for certain financial instruments with characteristics of liabilities and equity. For convertible instruments, ASU 2020-06 reduces the number of accounting models for convertible debt instruments and convertible preferred stock, and enhances information transparency by making targeted improvements to the disclosures for convertible instruments and earnings-per-share guidance on the basis of feedback from financial statement users. The adoption of ASU 2020-06 did not have a material effect on the Company’s financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326) (“ASU 2016-13”), which significantly changes how entities will account for credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. ASU 2016-13 replaces the existing incurred loss model with an expected credit loss model that requires entities to estimate an expected lifetime credit loss on most financial assets and certain other instruments. Under ASU 2016-13 credit impairment is recognized as an allowance for credit losses, rather than as a direct write-down of the amortized cost basis of a financial asset. The impairment allowance is a valuation account deducted from the amortized cost basis of financial assets to present the net amount expected to be collected on the financial asset. Once the new pronouncement is adopted by the Company, the allowance for credit losses must be adjusted for management’s current estimate at each reporting date. The new guidance provides no threshold for recognition of impairment allowance. Therefore, entities must also measure expected credit losses on assets that have a low risk of loss. For instance, trade receivables that are either current or not yet due may not require an allowance reserve under currently generally accepted accounting principles, but under the new standard, the Company will have to estimate an allowance for expected credit losses on trade receivables under ASU 2016-13. ASU 2016-13 is effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2022 for smaller reporting companies. The Company is currently assessing the impact ASU 2016-13 will have on its consolidated financial statements. The Company does not believe that any other recently issued, but not yet effective, accounting standards if currently adopted would have a material effect on the accompanying consolidated financial statements. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Summary of Significant Accounting Policies [Abstract] | |
Schedule of customers that represented | Customer Percentage of Sales 2022 2021 1 29.3 % 37.2 % 2 21.4 % 25.7 % 3 14.3 % 12.5 % 4 11.5 % * * Customer was less than 10% of sales for the year-ended December 31, 2021 Percentage of Receivables December 31, December 31, Customer 2022 2021 1 33.1 % 50.3 % 2 23.6 % 12.7 % 3 13.6 % ** 4 * 11.7 % * Customer was less than 10% of accounts receivable at December 31, 2022 ** Customer was less than 10% of accounts receivable at December 31, 2021 |
Schedule of revenue from contracts with customers | Product December 31, December 31, Military $ 43,993,000 $ 51,559,000 Commercial 9,245,000 7,380,000 Total $ 53,238,000 $ 58,939,000 |
Schedule of income applicable to common stockholders | December 31, December 31, 2022 2021 Net (Loss) Income – Basic $ (1,076,000 ) $ 1,627,000 Add: Convertible Note Interest for Potential Note Conversion - 322,000 Add: Convertible Note debt discount for Potential Note Conversion - - Net (Loss) Income used to calculate diluted earnings per share $ (1,076,000 ) $ 1,949,000 |
Schedule of basic and diluted EPS computations | December 31, December 31, 2022 2021 Weighted average shares outstanding used to compute basic earnings per share 3,227,116 3,204,937 Effect of dilutive stock options and warrants - 31,737 Effect of dilutive convertible notes payable - 405,743 Weighted average shares outstanding and dilutive securities used to compute dilutive earnings per share 3,227,116 3,642,417 Per share amount – basic $ (0.33 ) $ 0.51 Per share amount – diluted $ (0.33 ) $ 0.45 |
Schedule of average market price of the common shares | December 31, December 31, 2022 2021 Stock Options 245,466 118,350 Warrants 28,000 122,721 273,466 241,071 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Schedule of accounts receivable | December 31, December 31, Accounts Receivable Gross $ 9,764,000 $ 11,067,000 Allowance for Doubtful Accounts (281,000 ) (594,000 ) Accounts Receivable Net $ 9,483,000 $ 10,473,000 |
Schedule of allowance for doubtful accounts | Balance at Charged to Deductions Balance at Beginning of Costs and from End of Year Expenses Reserves Year Year ended December 31, 2022 Allowance for Doubtful Accounts $ 594,000 $ 16,000 $ 329,000 $ 281,000 Year ended December 31, 2021 Allowance for Doubtful Accounts $ 964,000 $ 134,000 $ 504,000 $ 594,000 |
Inventory (Tables)
Inventory (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Inventory [Abstract] | |
Schedule of inventory | December 31, December 31, 2022 2021 Raw Materials $ 4,198,000 $ 3,410,000 Work In Progress 20,848,000 20,926,000 Finished Goods 10,748,000 8,350,000 Reserve (3,973,000 ) (3,154,000 ) Total Inventory $ 31,821,000 $ 29,532,000 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property and Equipment [Abstract] | |
Schedule of property and equipment | December 31, December 31, 2022 2021 Land $ 300,000 $ 300,000 Buildings and Improvements 1,789,000 1,723,000 Machinery and Equipment 23,566,000 22,013,000 Finance Lease ROU Assets - Machinery and Equipment 375,000 375,000 Tools and Instruments 13,744,000 12,866,000 Automotive Equipment 266,000 200,000 Furniture and Fixtures 290,000 290,000 Leasehold Improvements 941,000 882,000 Computers and Software 604,000 583,000 Total Property and Equipment 41,875,000 39,232,000 Less: Accumulated Depreciation (33,282,000 ) (30,828,000 ) Property and Equipment, net $ 8,593,000 $ 8,404,000 |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounts Payable and Accrued Expenses [Abstract] | |
Schedule of accounts payable | December 31, December 31, Accounts Payable $ 6,442,000 $ 5,460,000 Accrued Payroll 674,000 852,000 Accrued Expenses - other 426,000 411,000 Accounts Payable and accrued expenses $ 7,542,000 $ 6,723,000 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt [Abstract] | |
Schedule of debt | December 31, December 31, 2022 2021 Revolving loan to Webster Bank (“Webster”) $ 13,352,000 $ 12,456,000 Term loan, Webster 5,396,000 4,192,000 Finance lease obligations 328,000 263,000 Loans payable - financed assets 30,000 39,000 Related party notes payable 6,162,000 6,412,000 Subtotal 25,268,000 23,362,000 Less: Current portion (14,477,000 ) (14,112,000 ) Long Term Portion $ 10,791,000 $ 9,250,000 |
Schedule of payments due under the term loan | For the year ending Amount December 31, 2023 $ 1,037,000 December 31, 2024 840,000 December 31, 2025 3,584,000 Webster Term Loan payable 5,461,000 Less: debt issuance costs (65,000 ) Total Webster Term Loan payable, net of debt issuance costs 5,396,000 Less: Current portion of Webster Term Loan payable (1,037,000 ) Total long-term portion of Webster Term Loan payable $ 4,359,000 |
Schedule of finance lease paid | Year Ended Year Ended December 31, December 31, 2022 2021 Finance Lease cost: Amortization of ROU assets $ - $ 36,000 Interest on lease liabilities 2,182 - Total Lease Costs $ 2,182 $ 36,000 Other Information: Cash Paid for amounts included in the measurement lease liabilities: Financing cash flow from finance lease obligations $ 284,000 $ 5,000 Supplemental disclosure of non-cash activity Acquisition of finance lease ROU asset $ 350,000 $ - |
Schedule of components of lease term and discount rate | December 31, December 31, 2022 2021 Weighted Average Remaining Lease Term - in years 3.9 5.0 Weighted Average Discount rate - % 7.48 % 4.20 % |
Schedule of aggregate future minimum finance lease payment | For the year ending Amount December 31, 2023 $ 100,000 December 31, 2024 100,000 December 31, 2025 100,000 December 31, 2026 77,000 Total future minimum finance lease payments 377,000 Less: imputed interest (49,000 ) Less: Current portion (79,000 ) Long-term portion $ 249,000 For the year ending Amount December 31, 2023 $ 9,000 December 31, 2024 9,000 December 31, 2025 9,000 December 31, 2026 3,000 Loans Payable - financed assets 30,000 Less: Current portion (9,000 ) Long-term portion $ 21,000 |
Schedule of note holders and the principal balance | Michael Taglich, Robert Taglich, Taglich Brothers, Chairman Director Inc. Total Convertible Subordinated Notes $ 2,666,000 $ 1,905,000 $ 241,000 $ 4,812,000 Subordinated Notes 1,000,000 350,000 - 1,350,000 Total $ 3,666,000 $ 2,255,000 $ 241,000 $ 6,162,000 |
Operating Lease Liabilities (Ta
Operating Lease Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Text Block [Abstract] | |
Schedule of remaining lease terms | Year Ended Year Ended December 31, December 31, 2022 2021 Operating lease cost: $ 972,000 $ 1,069,000 Total lease cost $ 972,000 $ 1,069,000 Other Information Cash paid for amounts included in the measurement lease liability: Operating cash flow from operating leases $ 1,006,000 $ 977,000 |
Schedule of operating and finance leases | December 31, December 31, 2022 2021 Weighted Average Remaining Lease Term - in years 3.64 4.53 Weighted Average discount rate - % 8.89 % 8.89 % |
Schedule of aggregate undiscounted cash flows of operating lease payments | Amount December 31, 2023 $ 1,038,000 December 31, 2024 1,070,000 December 31, 2025 992,000 December 31, 2026 729,000 Total future minimum lease payments 3,829,000 Less: discount (588,000 ) Total operating lease maturities 3,241,000 Less: current portion of operating lease liabilities (778,000 ) Total long term portion of operating lease maturities $ 2,463,000 |
Liability Related to the Sale_2
Liability Related to the Sale of Future Proceeds from Disposition of Subsidiary (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Liability Related to Sale of Future Proceeds from Disposition of Subsidiary [Abstract] | |
Schedule of activity within the liability account | December 31, December 31, Liabilities related to sale of future proceeds from disposition of subsidiaries - beginning balance $ 59,000 $ 322,000 Non-Cash other income recognized (94,000 ) (360,000 ) Non-Cash interest expense recognized 35,000 97,000 Liabilities related to sale of future proceeds from disposition of subsidiary - ending balance - 59,000 Less: unamortized transaction costs - (3,000 ) Liability related to sale of future proceeds from disposition of subsidiary, net $ - $ 56,000 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of provision for income taxes | Current and Deferred Year Ended Year Ended Federal $ - $ - States - - Total Provision for Income Taxes $ - $ - |
Schedule of reconciliation of our income tax rate computed using the federal statutory rate to our actual income tax rate | Year Ended Year Ended U.S. statutory income tax rate 21.0 % 21.0 % State taxes, net of federal benefit 4.1 % 4.1 % Permanent difference, overaccruals, and non-deductible items (6.9 )% 6.3 % Change in state rate 0.7 % 8.3 % Deferred tax valuation allowance (18.4 )% (38.7 )% Other (.5 )% (1.0 )% Total 0.00 % 0.00 % |
Schedule of net deferred tax assets | December 31, December 31, 2021 Deferred tax assets: Current: Net operating loss $ 5,075,000 $ 4,959,000 Allowance for doubtful accounts 71,000 149,000 Inventory - IRC 263A adjustment 411,000 377,000 Stock based compensation - options and restricted stock 183,000 183,000 Capitalized engineering costs 331,000 430,000 Amortization - NTW Transaction 359,000 445,000 Inventory reserve 932,000 790,000 Deferred gain on sale of real estate 36,000 45,000 Accrued expenses 30,000 18,000 Disallowed interest 1,663,000 1,576,000 Operating lease liabilities 814,000 984,000 Total deferred tax asset before valuation allowance 9,905,000 9,956,000 Valuation allowance (7,701,000 ) (7,503,000 ) Total deferred tax asset after valuation allowance 2,204,000 2,453,000 Deferred tax liabilities: Property and equipment (1,583,000 ) (1,697,000 ) Operating Lease ROU assets (621,000 ) (756,000 ) Total deferred tax liabilities (2,204,000 ) (2,453,000 ) Net deferred tax asset $ - $ - |
Stock Options and Warrants (Tab
Stock Options and Warrants (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Stock Options and Warrants (Tables) [Line Items] | |
Schedule of fair values of stock options granted | 2022 2021 Risk-free interest rates 1.38% - 2.73 % 0.31% - 0.83 % Expected life (in years) 2.50 - 4.00 2.50 - 4.00 Expected volatility 71.6% - 72.0 % 73.2% - 75.2 % Dividend yield 0.00 % 0.00 % Weighted-average grant date fair value per share $ 3.97 $ 6.01 |
Schedule of company's stock option and warrants | Wtd. Avg. Exercise Options Price Balance, January 1, 2021 185,900 $ 15.60 Granted during the year 84,750 13.00 Exercised during the year (11,000 ) 10.41 Terminated/Expired during the year (12,800 ) 61.70 Balance, December 31, 2021 246,850 $ 12.54 Granted during the year 62,000 8.40 Exercised during the year - - Terminated/Expired during the year (5,800 ) 12.04 Balance, December 31, 2022 303,050 $ 11.70 Exercisable at December 31, 2022 245,466 $ 12.07 Wtd. Avg. Wtd. Avg. Remaining Exercise Contractual Warrants Price Life (years) Balance, January 1, 2021 218,290 $ 29.00 1.43 Granted during the period - - - Terminated/Expired during the period (67,569 ) - - Balance, December 31, 2021 150,721 $ 21.94 0.75 Granted during the period - - - Terminated/Expired during the period (122,721 ) $ 23.75 - Balance, December 31, 2022 28,000 $ 14.00 0.75 Exercisable at December 31, 2022 28,000 $ 14.00 0.75 |
Schedule of stock options | Range of Exercise Price Number Wtd. Avg, Wtd. Avg. $8.40 - $15.60 303,050 2.7 years $ 11.70 Range of Exercise Price Number Wtd. Avg, Wtd. Avg. $8.40 - $15.60 246,466 2.4 years $ 12.07 |
Revision of Previously Issued_2
Revision of Previously Issued Consolidated Financial Statement (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of Revision of Previously Issued Financial Statement [Abstract] | |
Schedule of deferred tax assets | Year Ended Year Ended 2021 Adjustment 2021 U.S. statutory income tax rate 21.0 % 0.0 % 21.0 % State taxes, net of federal benefit 5.1 % (1.0 )% 4.1 % Permanent difference, overaccruals, and non-deductible items (40.4 )% 46.7 % 6.3 % Change in state rate 0.0 % 8.3 % 8.3 % Deferred tax valuation allowance 14.3 % (53.0 )% (38.7 )% Other 0.0 % (1.0 )% (1.0 )% Total 0.0 % 0.0 % 0.0 % December 31, December 31, 2021 As Reported Adjustment 2021 Deferred tax assets: Net operating loss $ 6,737,000 $ (1,778,000 ) $ 4,959,000 Allowance for doubtful accounts 155,000 (6,000 ) 149,000 Inventory - IRC 263A adjustment 394,000 (17,000 ) 377,000 Stock based compensation - options and restricted stock 393,000 (210,000 ) 183,000 Capitalized engineering costs 449,000 (19,000 ) 430,000 Amortization - NTW Transaction 442,000 3,000 445,000 Inventory reserve 824,000 (34,000 ) 790,000 Deferred gain on sale of real estate 47,000 (2,000 ) 45,000 Accrued expenses 204,000 (186,000 ) 18,000 Disallowed interest 1,286,000 290,000 1,576,000 Operating lease liability 235,000 749,000 984,000 Capital loss carryforward 88,000 (88,000 ) - Total non-current deferred tax asset before valuation allowance 11,254,000 (1,298,000 ) 9,956,000 Valuation allowance (9,628,000 ) 2,125,000 (7,503,000 ) Total non-current deferred tax asset after valuation allowance 1,626,000 827,000 2,453,000 Deferred tax liabilities: Property and equipment (1,626,000 ) (71,000 ) (1,697,000 ) Operating lease ROU assets - (756,000 ) (756,000 ) Total deferred tax liabilities (1,626,000 ) (827,000 ) (2,453,000 ) Net deferred tax asset $ - $ - $ - December 31, December 31, 2020 Adjustment 2020 Deferred tax assets: Net operating loss $ 6,594,000 $ (1,422,000 ) $ 5,172,000 Allowance for doubtful accounts 252,000 (3,000 ) 249,000 Inventory - IRC 263A adjustment 341,000 (3,000 ) 338,000 Stock based compensation - options and restricted stock 277,000 (73,000 ) 204,000 Capitalized engineering costs 336,000 228,000 564,000 Deferred Rent 4,000 - 4,000 Amortization - NTW Transaction 495,000 (73,000 ) 422,000 Inventory reserve 1,250,000 (579,000 ) 671,000 Deferred gain on sale of real estate 132,000 (1,000 ) 131,000 Accrued expenses 158,000 (158,000 ) - Disallowed interest 1,813,000 (18,000 ) 1,795,000 Operating lease liability 292,000 905,000 1,197,000 Total non-current deferred tax asset before valuation allowance 11,944,000 (1,197,000 ) 10,747,000 Valuation allowance (9,394,000 ) 1,262,000 (8,132,000 ) Total non-current deferred tax asset after valuation allowance 2,550,000 65,000 2,615,000 Deferred tax liabilities: Property and equipment (2,150,000 ) 443,000 (1,707,000 ) Operating lease ROU assets - (908,000 ) (908,000 ) Other (400,000 ) 400,000 - Total deferred tax liabilities (2,550,000 ) (65,000 ) (2,615,000 ) Net deferred tax asset $ - $ - $ - |
Organization and Basis of Pre_2
Organization and Basis of Presentation (Details) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2022 USD ($) | |
Accounting Policies [Abstract] | ||
Reporting segments | 1 | |
Operating segment | 1 | |
Operating activities (in Dollars) | $ 448,000 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - USD ($) | 6 Months Ended | 12 Months Ended | |||
Dec. 31, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Summary of Significant Accounting Policies (Details) [Line Items] | |||||
Expenditures for repairs and improvements | $ 10,000 | ||||
Contract costs receivable | 296,000 | $ 0 | |||
Customer deposits | 781,000 | 1,470,000 | |||
Revenue recognized | 440,000 | 507,000 | |||
Deposits balance | $ 917,000 | ||||
Contractual Obligation amount | 60,000,000 | ||||
Stock compensation expense for employees | 310,000 | 443,000 | |||
Goodwill | 163,000 | ||||
Goodwill impairment charges | 163,000 | ||||
Freight out | $ 162,000 | $ 135,000 | |||
Lease term | 1 year | ||||
Accounts Receivable [Member] | |||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||
Concentration risk percentage | 10% | 10% | |||
Four Customers [Member] | |||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||
Concentration risk percentage | 76.50% | ||||
Three Customers [Member] | |||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||
Concentration risk percentage | 75.40% | ||||
Three Customers [Member] | Accounts Receivable [Member] | Credit Concentration Risk [Member] | |||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||
Concentration risk percentage | 70.30% | 74.70% | |||
Customer [Member] | Credit Concentration Risk [Member] | |||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||
Concentration risk percentage | 10% | ||||
Forecast [Member] | Minimum [Member] | |||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||
Contractual Obligation amount | $ 15,000,000 | $ 22,500,000 | |||
Forecast [Member] | Maximum [Member] | |||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||
Contractual Obligation amount | $ 18,000,000 | $ 26,500,000 | |||
Director [Member] | |||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||
Stock compensation expense for directors | $ 216,000 | $ 210,000 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - Schedule of customers that represented | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | |||
Sales [Member] | Customer One [Member] | ||||
Concentration Risk [Line Items] | ||||
Credit and Concentration Risks | 29.30% | 37.20% | ||
Sales [Member] | Customers Two [Member] | ||||
Concentration Risk [Line Items] | ||||
Credit and Concentration Risks | 21.40% | 25.70% | ||
Sales [Member] | Customers Three [Member] | ||||
Concentration Risk [Line Items] | ||||
Credit and Concentration Risks | 14.30% | 12.50% | ||
Sales [Member] | Customers Four [Member] | ||||
Concentration Risk [Line Items] | ||||
Credit and Concentration Risks | 11.50% | [1] | ||
Receiveables [Member] | Customer One [Member] | ||||
Concentration Risk [Line Items] | ||||
Credit and Concentration Risks | 33.10% | 50.30% | ||
Receiveables [Member] | Customers Two [Member] | ||||
Concentration Risk [Line Items] | ||||
Credit and Concentration Risks | 23.60% | 12.70% | ||
Receiveables [Member] | Customers Three [Member] | ||||
Concentration Risk [Line Items] | ||||
Credit and Concentration Risks | 13.60% | [2] | ||
Receiveables [Member] | Customers Four [Member] | ||||
Concentration Risk [Line Items] | ||||
Credit and Concentration Risks | [3] | 11.70% | ||
[1] Customer was less than 10% of sales for the year-ended December 31, 2021 Customer was less than 10% of accounts receivable at December 31, 2021 Customer was less than 10% of accounts receivable at December 31, 2022 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details) - Schedule of revenue from contracts with customers - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation of Revenue [Line Items] | ||
Total | $ 53,238,000 | $ 58,939,000 |
Military [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total | 43,993,000 | 51,559,000 |
Commercial [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total | $ 9,245,000 | $ 7,380,000 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Details) - Schedule of income applicable to common stockholders - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule Of Income Applicable To Common Stockholders Abstract | ||
Net (Loss) Income - Basic | $ (1,076,000) | $ 1,627,000 |
Add: Convertible Note Interest for Potential Note Conversion | 322,000 | |
Add: Convertible Note debt discount for Potential Note Conversion | ||
Net (Loss) Income used to calculate diluted earnings per share | $ (1,076,000) | $ 1,949,000 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies (Details) - Schedule of basic and diluted EPS computations - Earnings (Loss) per share [Member] - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Summary of Significant Accounting Policies (Details) - Schedule of basic and diluted EPS computations [Line Items] | ||
Weighted average shares outstanding used to compute basic earnings per share | 3,227,116 | 3,204,937 |
Effect of dilutive stock options and warrants | $ 31,737 | |
Effect of dilutive convertible notes payable | $ 405,743 | |
Weighted average shares outstanding and dilutive securities used to compute dilutive earnings per share | 3,227,116 | 3,642,417 |
Per share amount - basic | $ (0.33) | $ 0.51 |
Per share amount - diluted | $ (0.33) | $ 0.45 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies (Details) - Schedule of average market price of the common shares - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Maximum [Member] | ||
Summary of Significant Accounting Policies (Details) - Schedule of average market price of the common shares [Line Items] | ||
Stock Options | $ 245,466 | $ 118,350 |
Warrants | 28,000 | 122,721 |
Minimum [Member] | Antidilutive Securities [Member] | ||
Summary of Significant Accounting Policies (Details) - Schedule of average market price of the common shares [Line Items] | ||
Total | $ 273,466 | $ 241,071 |
Accounts Receivable (Details) -
Accounts Receivable (Details) - Schedule of accounts receivable - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule of Accounts Receivable [Abstract] | ||
Accounts Receivable Gross | $ 9,764,000 | $ 11,067,000 |
Allowance for Doubtful Accounts | (281,000) | (594,000) |
Accounts Receivable Net | $ 9,483,000 | $ 10,473,000 |
Accounts Receivable (Details)_2
Accounts Receivable (Details) - Schedule of allowance for doubtful accounts - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Allowance for Doubtful Accounts [Abstract] | ||
Balance at Beginning of Year | $ 594,000 | $ 964,000 |
Charged to Costs and Expenses | 16,000 | 134,000 |
Deductions from Reserves | 329,000 | 504,000 |
Balance at End of Year | $ 281,000 | $ 594,000 |
Inventory (Details) - Schedule
Inventory (Details) - Schedule of inventory - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule of inventory [Abstract] | ||
Raw Materials | $ 4,198,000 | $ 3,410,000 |
Work In Progress | 20,848,000 | 20,926,000 |
Finished Goods | 10,748,000 | 8,350,000 |
Reserve | (3,973,000) | (3,154,000) |
Total Inventory | $ 31,821,000 | $ 29,532,000 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Property and Equipment (Details) [Line Items] | ||
Depreciation expense | $ 2,522,000 | $ 2,803,000 |
Property, Plant and Equipment [Member] | ||
Property and Equipment (Details) [Line Items] | ||
Accumulated depreciation | $ 0 | $ 36,000 |
Property and Equipment (Detai_2
Property and Equipment (Details) - Schedule of property and equipment - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Total Property and Equipment | $ 41,875,000 | $ 39,232,000 |
Less: Accumulated Depreciation | (33,282,000) | (30,828,000) |
Property and Equipment, net | 8,593,000 | 8,404,000 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total Property and Equipment | 300,000 | 300,000 |
Buildings and Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total Property and Equipment | 1,789,000 | 1,723,000 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total Property and Equipment | 23,566,000 | 22,013,000 |
Finance Lease ROU Assets - Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total Property and Equipment | 375,000 | 375,000 |
Tools and Instruments [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total Property and Equipment | 13,744,000 | 12,866,000 |
Automotive Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total Property and Equipment | 266,000 | 200,000 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total Property and Equipment | 290,000 | 290,000 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total Property and Equipment | 941,000 | 882,000 |
Computers and Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total Property and Equipment | $ 604,000 | $ 583,000 |
Accounts Payable and Accrued _3
Accounts Payable and Accrued Expenses (Details) | Dec. 31, 2022 USD ($) |
Accounts Payable and Accrued Expenses [Abstract] | |
Old payables | $ 317,000 |
Accounts Payable and Accrued _4
Accounts Payable and Accrued Expenses (Details) - Schedule of accounts payable - Accounts Payable and Accrued Expenses [Member] - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule of Accounts Payable [Abstract] | ||
Accounts Payable | $ 6,442,000 | $ 5,460,000 |
Accrued Payroll | 674,000 | 852,000 |
Accrued Expenses - other | 426,000 | 411,000 |
Accounts Payable and accrued expenses | $ 7,542,000 | $ 6,723,000 |
Sale and Leaseback Transaction
Sale and Leaseback Transaction (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |
Oct. 24, 2006 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure Of Sale And Leaseback Transaction Abstract | |||
Purchase price | $ 6,200,000 | ||
Gain on sale | 1,051,000 | ||
Recognized amount | 300,000 | ||
Remaining recognized ratably | $ 751,000 | ||
Remaining term | 20 years | ||
Lease amount | $ 38,000 | ||
Unrecognized gain amount | $ 143,000 | $ 181,000 | |
Net lease term | 20 years | ||
Annual rent for first five years | $ 540,000 | ||
Annual rent for sixth year | $ 560,000 | ||
Rent percentage | 3% | ||
Lease renew term | 5 years | ||
Deposit purchaser security | $ 89,000 | $ 150,000 |
Debt (Details)
Debt (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||||||||||
Jan. 04, 2023 | Dec. 15, 2022 | Dec. 07, 2021 | Jan. 01, 2021 | Mar. 31, 2023 | Feb. 28, 2023 | May 17, 2022 | Jun. 30, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Debt (Details) [Line Items] | |||||||||||||
Expires date | Dec. 30, 2025 | ||||||||||||
Revolving line of credit loan | $ 20,000,000 | ||||||||||||
Term loan | 5,000,000 | ||||||||||||
Equipment Line of Credit | $ 2,000,000 | ||||||||||||
Equipment line of credit remaining available | $ 1,122,000 | ||||||||||||
Withdrawn amount | 878,000 | ||||||||||||
Interest expense | 780,000 | $ 704,000 | |||||||||||
Term loan | $ 5,000,000 | $ 5,685,000 | |||||||||||
Principal installments amount | 59,524 | 67,679 | |||||||||||
Amendment fee | $ 75,000 | $ 10,000 | 20,000 | ||||||||||
Excess cash flow percentage | 25% | ||||||||||||
Excess cash flow payments | $ 208,000 | ||||||||||||
Revolving line of credit, current | 20,000,000 | ||||||||||||
Revolving loan | 16,000,000 | ||||||||||||
Increase in inventory sublimit | 14,000,000 | ||||||||||||
Original inventory | 11,000,000 | ||||||||||||
Amortizing amount of related party | $ 250,000 | ||||||||||||
Generating proceeds | 1,945,000 | ||||||||||||
Capital expenditure line of credit | 2,000,000 | ||||||||||||
Amendment fee paid | $ 20,000 | ||||||||||||
Line of credit amount | $ 877,913 | ||||||||||||
Due date | Dec. 30, 2025 | ||||||||||||
Webster facility, description | (i) 3.50% and (ii) a rate per annum equal to the rate per annum published from time to time in the “Money Rates” table of the Wall Street Journal (or such other presentation within The Wall Street Journal as may be adopted hereafter for such information) as the base or prime rate for corporate loans at the nation’s largest commercial bank, less sixty-five hundredths (-0.65%) of one percent per annum. | ||||||||||||
Average interest rate | 4.50% | 3.50% | 3.50% | ||||||||||
Loan obligation | $ 30,000 | $ 39,000 | $ 39,000 | ||||||||||
Notes proceeds | $ 6,550,000 | ||||||||||||
Common stock, shares issued (in Shares) | 35,508 | ||||||||||||
Promissory notes | $ 554,000 | ||||||||||||
Notes payable | 6,012,000 | ||||||||||||
Accrued interest | $ 400,000 | ||||||||||||
Related party convertible amount | $ 2,732,000 | ||||||||||||
Subordinated debt | 250,000 | ||||||||||||
Principal payment | 250,000 | ||||||||||||
Interest expense | $ 487,000 | 460,000 | |||||||||||
Annual rate of interest description | Approximately $2,732,000 of these notes have an annual rate of interest of 6%, $2,080,000 have an annual interest rate of 7% and $1,600,000 have an annual interest rate of 12%. | ||||||||||||
Common Stock [Member] | |||||||||||||
Debt (Details) [Line Items] | |||||||||||||
Price per share (in Dollars per share) | $ 15 | ||||||||||||
Subsequent Event [Member] | |||||||||||||
Debt (Details) [Line Items] | |||||||||||||
Line of credit amount | $ 739,500 | ||||||||||||
Principal payments | $ 8,804 | $ 10,451 | |||||||||||
Due date | Dec. 30, 2025 | ||||||||||||
April 2021 [Member] | |||||||||||||
Debt (Details) [Line Items] | |||||||||||||
Excess cash flow payments | $ 558,750 | ||||||||||||
April 2022 [Member] | |||||||||||||
Debt (Details) [Line Items] | |||||||||||||
Excess cash flow payments | $ 854,000 | ||||||||||||
November 2022 [Member] | |||||||||||||
Debt (Details) [Line Items] | |||||||||||||
Finance lease | $ 328,000 | ||||||||||||
Imputed interest rate | 7.48% | ||||||||||||
December 2021 [Member] | |||||||||||||
Debt (Details) [Line Items] | |||||||||||||
Finance lease | $ 0 | $ 263,000 | |||||||||||
Interest rate | 4.20% | ||||||||||||
Related Party [Member] | |||||||||||||
Debt (Details) [Line Items] | |||||||||||||
Related party convertible amount | $ 2,080,000 | ||||||||||||
Price per share (in Dollars per share) | $ 9.3 | ||||||||||||
Webster Facility [Member] | |||||||||||||
Debt (Details) [Line Items] | |||||||||||||
Debt | $ 18,748,000 | ||||||||||||
Revolving loan | 13,352,000 | ||||||||||||
Loan amount | $ 5,396,000 |
Debt (Details) - Schedule of de
Debt (Details) - Schedule of debt - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule of Notes Payable Related Party Notes Payable and Finance Lease Obligations [Abstract] | ||
Revolving loan to Webster Bank (“Webster”) | $ 13,352,000 | $ 12,456,000 |
Term loan, Webster | 5,396,000 | 4,192,000 |
Finance lease obligations | 328,000 | 263,000 |
Loans payable - financed assets | 30,000 | 39,000 |
Related party notes payable | 6,162,000 | 6,412,000 |
Subtotal | 25,268,000 | 23,362,000 |
Less: Current portion | (14,477,000) | (14,112,000) |
Long Term Portion | $ 10,791,000 | $ 9,250,000 |
Debt (Details) - Schedule of pa
Debt (Details) - Schedule of payments due under the term loan | Dec. 31, 2022 USD ($) |
Schedule Of Payments Due Under The Term Loan Abstract | |
December 31, 2023 | $ 1,037,000 |
December 31, 2024 | 840,000 |
December 31, 2025 | 3,584,000 |
Webster Term Loan payable | 5,461,000 |
Less: debt issuance costs | (65,000) |
Total Webster Term Loan payable, net of debt issuance costs | 5,396,000 |
Less: Current portion of Webster Term Loan payable | (1,037,000) |
Total long-term portion of Webster Term Loan payable | $ 4,359,000 |
Debt (Details) - Schedule of fi
Debt (Details) - Schedule of finance lease paid - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Finance Lease cost: | ||
Amortization of ROU assets | $ 36,000 | |
Interest on lease liabilities | 2,182 | |
Total Lease Costs | 2,182 | 36,000 |
Cash Paid for amounts included in the measurement lease liabilities: | ||
Financing cash flow from finance lease obligations | 284,000 | 5,000 |
Supplemental disclosure of non-cash activity | ||
Acquisition of finance lease ROU asset | $ 350,000 |
Debt (Details) - Schedule of co
Debt (Details) - Schedule of components of lease term and discount rate | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule Of Components Of Lease Term And Discount Rate Abstract | ||
Weighted Average Remaining Lease Term - in years | 3 years 10 months 24 days | 5 years |
Weighted Average Discount rate - % | 7.48% | 4.20% |
Debt (Details) - Schedule of ag
Debt (Details) - Schedule of aggregate future minimum finance lease payment - USD ($) | Dec. 31, 2022 | Dec. 31, 2020 |
Debt (Details) - Schedule of aggregate future minimum finance lease payment [Line Items] | ||
Loans Payable - financed assets | $ 6,012,000 | |
Loans Payable – Financed Assets [Member] | ||
Debt (Details) - Schedule of aggregate future minimum finance lease payment [Line Items] | ||
December 31, 2023 | $ 9,000 | |
December 31, 2024 | 9,000 | |
December 31, 2025 | 9,000 | |
December 31, 2026 | 3,000 | |
Loans Payable - financed assets | 30,000 | |
Less: Current portion | (9,000) | |
Long-term portion | 21,000 | |
Finance Lease Obligations [Member] | ||
Debt (Details) - Schedule of aggregate future minimum finance lease payment [Line Items] | ||
December 31, 2023 | 100,000 | |
December 31, 2024 | 100,000 | |
December 31, 2025 | 100,000 | |
December 31, 2026 | 77,000 | |
Total future minimum finance lease payments | 377,000 | |
Less: imputed interest | (49,000) | |
Less: Current portion | (79,000) | |
Long-term portion | $ 249,000 |
Debt (Details) - Schedule of no
Debt (Details) - Schedule of note holders and the principal balance | Dec. 31, 2022 USD ($) |
Debt (Details) - Schedule of note holders and the principal balance [Line Items] | |
Convertible Subordinated Notes | $ 4,812,000 |
Subordinated Notes | 1,350,000 |
Total | 6,162,000 |
Michael Taglich, Chairman [Member] | |
Debt (Details) - Schedule of note holders and the principal balance [Line Items] | |
Convertible Subordinated Notes | 2,666,000 |
Subordinated Notes | 1,000,000 |
Total | 3,666,000 |
Robert Taglich, Director [Member] | |
Debt (Details) - Schedule of note holders and the principal balance [Line Items] | |
Convertible Subordinated Notes | 1,905,000 |
Subordinated Notes | 350,000 |
Total | 2,255,000 |
Taglich Brothers, Inc. [Member] | |
Debt (Details) - Schedule of note holders and the principal balance [Line Items] | |
Convertible Subordinated Notes | 241,000 |
Subordinated Notes | |
Total | $ 241,000 |
Operating Lease Liabilities (De
Operating Lease Liabilities (Details) | Dec. 31, 2022 |
Minimum [Member] | |
Operating Lease Liabilities (Details) [Line Items] | |
Lease terms | 1 year |
Maximum [Member] | |
Operating Lease Liabilities (Details) [Line Items] | |
Lease terms | 5 years |
Operating Lease Liabilities (_2
Operating Lease Liabilities (Details) - Schedule of remaining lease terms - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule Of Remaining Lease Terms Abstract | ||
Operating lease cost: | $ 972,000 | $ 1,069,000 |
Total lease cost | 972,000 | 1,069,000 |
Cash paid for amounts included in the measurement lease liability: | ||
Operating cash flow from operating leases | $ 1,006,000 | $ 977,000 |
Operating Lease Liabilities (_3
Operating Lease Liabilities (Details) - Schedule of operating and finance leases | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule of Operating and Finance Leases [Abstract] | ||
Weighted Average Remaining Lease Term - in years | 3 years 7 months 20 days | 4 years 6 months 10 days |
Weighted Average discount rate - % | 8.89% | 8.89% |
Operating Lease Liabilities (_4
Operating Lease Liabilities (Details) - Schedule of aggregate undiscounted cash flows of operating lease payments | Dec. 31, 2022 USD ($) |
Schedule of Aggregate Undiscounted Cash Flows of Operating Lease Payments [Abstract] | |
December 31, 2023 | $ 1,038,000 |
December 31, 2024 | 1,070,000 |
December 31, 2025 | 992,000 |
December 31, 2026 | 729,000 |
Total future minimum lease payments | 3,829,000 |
Less: discount | (588,000) |
Total operating lease maturities | 3,241,000 |
Less: current portion of operating lease liabilities | (778,000) |
Total long term portion of operating lease maturities | $ 2,463,000 |
Liability Related to the Sale_3
Liability Related to the Sale of Future Proceeds from Disposition of Subsidiary (Details) - USD ($) | 12 Months Ended | |||
Jan. 15, 2019 | Dec. 31, 2022 | Dec. 31, 2021 | Apr. 01, 2017 | |
Liability Related to the Sale of Future Proceeds from Disposition of Subsidiary (Details) [Line Items] | ||||
Net sales percentage | 5% | |||
Maximum aggregate payments | $ 1,500,000 | |||
Immediate payment | $ 800,000 | |||
Non-cash income | $ 94,000 | $ 326,000 | ||
Non-cash interest expense | $ 35,000 | $ 98,000 | ||
Minimum [Member] | ||||
Liability Related to the Sale of Future Proceeds from Disposition of Subsidiary (Details) [Line Items] | ||||
Interest paid | 1,137,000 | |||
Maximum [Member] | ||||
Liability Related to the Sale of Future Proceeds from Disposition of Subsidiary (Details) [Line Items] | ||||
Interest paid | 1,500,000 | |||
Michael Taglich, and Robert [Member] | ||||
Liability Related to the Sale of Future Proceeds from Disposition of Subsidiary (Details) [Line Items] | ||||
Immediate payment | 100,000 | |||
Michael Taglich [Member] | ||||
Liability Related to the Sale of Future Proceeds from Disposition of Subsidiary (Details) [Line Items] | ||||
Immediate payment | $ 75,000 |
Liability Related to the Sale_4
Liability Related to the Sale of Future Proceeds from Disposition of Subsidiary (Details) - Schedule of activity within the liability account - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Activity within the Liability Account [Abstract] | ||
Liabilities related to sale of future proceeds from disposition of subsidiaries - beginning balance | $ 59,000 | $ 322,000 |
Non-Cash other income recognized | (94,000) | (360,000) |
Non-Cash interest expense recognized | 35,000 | 97,000 |
Liabilities related to sale of future proceeds from disposition of subsidiary - ending balance | 59,000 | |
Less: unamortized transaction costs | (3,000) | |
Liability related to sale of future proceeds from disposition of subsidiary, net | $ 56,000 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Oct. 04, 2022 | Mar. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Stockholders' Equity (Details) [Line Items] | ||||
Shares issued | 7,287 | |||
Shares issued of common stock for cashless exercise of stock options | 5,122 | |||
Common stock shares issued | 3,247,937 | 3,212,801 | ||
Common Stock [Member] | ||||
Stockholders' Equity (Details) [Line Items] | ||||
Shares issued | 27,849 | 16,981 | ||
Director fees (in Dollars) | $ 216,000 | $ 210,000 | ||
Subsequent Event [Member] | ||||
Stockholders' Equity (Details) [Line Items] | ||||
Common stock shares issued | 12,331 | |||
Directors fees totaling (in Dollars) | $ 54,000 |
Employee Benefits Plans (Detail
Employee Benefits Plans (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Retirement Benefits [Abstract] | ||
Security fund amount | $ 155,000 | $ 147,000 |
Contingency (Details)
Contingency (Details) - USD ($) | Jul. 08, 2021 | Oct. 02, 2018 |
Contingencies [Abstract] | ||
Damages amount | $ 1,000,000 | |
Damages claim | $ 700,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Valuation allowance deferred tax assets | $ 7,701,000 | $ 7,503,000 |
Federal net operating loss carry forward | 22,420,000 | |
Federal net operating loss carry forward expired amount through 2037 | 12,220,000 | |
Federal net operating loss carry forward not expired | 10,200,000 | |
State net operating carry forwards | $ 22,600,000 | |
Percentage of excise tax price | 1% |
Income Taxes (Details) - Schedu
Income Taxes (Details) - Schedule of provision for income taxes - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Provision for (Benefit from) Income Taxes [Abstract] | ||
Federal | ||
States | ||
Total Provision for Income Taxes |
Income Taxes (Details) - Sche_2
Income Taxes (Details) - Schedule of reconciliation of our income tax rate computed using the federal statutory rate to our actual income tax rate | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Reconciliation of Our Income Tax Rate Computed Using the Federal Statutory Rate to Our Actual Income Tax Rate [Abstract] | ||
U.S. statutory income tax rate | 21% | 21% |
State taxes | 4.10% | 4.10% |
Permanent difference, overaccruals, and non-deductible items | (6.90%) | 6.30% |
Change in state rate | 0.70% | 8.30% |
Deferred tax valuation allowance | (18.40%) | (38.70%) |
Other | (0.50%) | (1.00%) |
Total | 0% | 0% |
Income Taxes (Details) - Sche_3
Income Taxes (Details) - Schedule of net deferred tax assets - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Current: | ||
Net operating loss | $ 5,075,000 | $ 4,959,000 |
Allowance for doubtful accounts | 71,000 | 149,000 |
Inventory - IRC 263A adjustment | 411,000 | 377,000 |
Stock based compensation - options and restricted stock | 183,000 | 183,000 |
Capitalized engineering costs | 331,000 | 430,000 |
Amortization - NTW Transaction | 359,000 | 445,000 |
Inventory reserve | 932,000 | 790,000 |
Deferred gain on sale of real estate | 36,000 | 45,000 |
Accrued expenses | 30,000 | 18,000 |
Disallowed interest | 1,663,000 | 1,576,000 |
Operating lease liabilities | 814,000 | 984,000 |
Total deferred tax asset before valuation allowance | 9,905,000 | 9,956,000 |
Valuation allowance | (7,701,000) | (7,503,000) |
Total deferred tax asset after valuation allowance | 2,204,000 | 2,453,000 |
Deferred tax liabilities: | ||
Property and equipment | (1,583,000) | (1,697,000) |
Operating Lease ROU assets | (621,000) | (756,000) |
Total deferred tax liabilities | (2,204,000) | (2,453,000) |
Net deferred tax asset |
Stock Options and Warrants (Det
Stock Options and Warrants (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||||||
Apr. 11, 2022 | Apr. 06, 2022 | Jan. 11, 2021 | Jan. 31, 2022 | Jun. 30, 2021 | Mar. 24, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2022 | |
Stock Options and Warrants (Details) [Line Items] | |||||||||
Authorized shares under new plan (in Shares) | 100,000 | ||||||||
Granted during period (in Shares) | 62,000 | 84,750 | |||||||
Stock based compensation expense | $ 310,000 | $ 443,000 | |||||||
Aggregate of stock options (in Shares) | 53,000 | 6,000 | 3,000 | ||||||
Common stock price per share (in Dollars per share) | $ 8.4 | $ 8.4 | $ 8.5 | ||||||
Vest term | 3 years | 1 year | 3 years | ||||||
Unrecognized compensation cost | $ 95,000 | ||||||||
Remaining weighted average vesting period | 1 year 3 months 18 days | ||||||||
Closing stock price (in Dollars per share) | $ 4.25 | $ 9.1 | |||||||
Aggregate intrinsic value | $ 0 | $ 12,000 | |||||||
Weighted average fair value of options granted (in Dollars per share) | $ 8.4 | $ 6 | |||||||
Total intrinsic value of options exercised | $ 0 | $ 100,000 | |||||||
Total fair value of shares vested | 316,000 | 339,000 | |||||||
Warrant [Member] | |||||||||
Stock Options and Warrants (Details) [Line Items] | |||||||||
Aggregate intrinsic value | 0 | ||||||||
Minimum [Member] | Warrant [Member] | |||||||||
Stock Options and Warrants (Details) [Line Items] | |||||||||
Aggregate intrinsic value | $ 4.15 | ||||||||
Maximum [Member] | Warrant [Member] | |||||||||
Stock Options and Warrants (Details) [Line Items] | |||||||||
Aggregate intrinsic value | $ 9.1 | ||||||||
Issuance of Stock Options [Member] | |||||||||
Stock Options and Warrants (Details) [Line Items] | |||||||||
Aggregate of stock options (in Shares) | 7,000 | 41,500 | 32,750 | ||||||
Common stock price per share (in Dollars per share) | $ 13.2 | $ 12.2 | $ 13.9 | ||||||
Vest term | 1 year | 3 years | |||||||
Issuance of Stock Options [Member] | Minimum [Member] | |||||||||
Stock Options and Warrants (Details) [Line Items] | |||||||||
Vest term | 1 year | ||||||||
Issuance of Stock Options [Member] | Maximum [Member] | |||||||||
Stock Options and Warrants (Details) [Line Items] | |||||||||
Vest term | 3 years | ||||||||
Issuance of Stock Options [Member] | Director [Member] | |||||||||
Stock Options and Warrants (Details) [Line Items] | |||||||||
Aggregate of stock options (in Shares) | 7,000 | ||||||||
Common stock price per share (in Dollars per share) | $ 13.2 | ||||||||
Vest term | 1 year |
Stock Options and Warrants (D_2
Stock Options and Warrants (Details) - Schedule of fair values of stock options granted - $ / shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Fair Values of Stock Options Granted [Abstract] | ||
Dividend yield | 0% | 0% |
Weighted-average grant date fair value per share (in Dollars per share) | $ 3.97 | $ 6.01 |
Minimum [Member] | ||
Schedule of Fair Values of Stock Options Granted [Abstract] | ||
Risk-free interest rates | 1.38% | 0.31% |
Expected life (in years) | 2 years 6 months | 2 years 6 months |
Expected volatility | 71.60% | 73.20% |
Maximum [Member] | ||
Schedule of Fair Values of Stock Options Granted [Abstract] | ||
Risk-free interest rates | 2.73% | 0.83% |
Expected life (in years) | 4 years | 4 years |
Expected volatility | 72% | 75.20% |
Stock Options and Warrants (D_3
Stock Options and Warrants (Details) - Schedule of company's stock option and warrants - $ / shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Company's Stock Options [Abstract] | ||
Options, Beginning balance | 246,850 | 185,900 |
Wtd. Avg. Exercise Price, Beginning balance | $ 12.54 | $ 15.6 |
Options, Granted | 62,000 | 84,750 |
Wtd. Avg. Exercise Price, Granted | $ 8.4 | $ 13 |
Options, Exercised during the period | (11,000) | |
Wtd. Avg. Exercise Price, Exercised during the period | $ 10.41 | |
Options, Terminated/Expired during the period | (5,800) | (12,800) |
Wtd. Avg. Exercise Price, Terminated/Expired during the period | $ 12.04 | $ 61.7 |
Options, Ending balance | 303,050 | 246,850 |
Wtd. Avg. Exercise Price, Ending balance | $ 11.7 | $ 12.54 |
Options, Exercisable | 245,466 | |
Wtd. Avg. Exercise Price, Exercisable | $ 12.07 | |
Warrants, Beginning balance | 150,721 | 218,290 |
Wtd. Avg. Exercise Price, Beginning balance | $ 21.94 | $ 29 |
Wtd. Avg. Remaining Contractual Life (years), Beginning balance | 1 year 5 months 4 days | |
Warrants, Granted | ||
Wtd. Avg. Exercise Price, Granted | ||
Wtd. Avg. Remaining Contractual Life (years), Granted | ||
Warrants, Terminated/Expired during the period | (122,721) | (67,569) |
Wtd. Avg. Exercise Price, Terminated/Expired during the period | $ 23.75 | |
Wtd. Avg. Remaining Contractual Life (years), Terminated/Expired during the period | ||
Warrants, Ending balance | 28,000 | 150,721 |
Wtd. Avg. Exercise Price, Ending balance | $ 14 | $ 21.94 |
Wtd. Avg. Remaining Contractual Life (years), Ending balance | 9 months | 9 months |
Warrants, Exercisable | 28,000 | |
Wtd. Avg. Exercise Price, Exercisable | $ 14 | |
Wtd. Avg. Remaining Contractual Life (years), Exercisable | 9 months |
Stock Options and Warrants (D_4
Stock Options and Warrants (Details) - Schedule of stock options | 12 Months Ended |
Dec. 31, 2022 $ / shares shares | |
Outstanding Stock Option [Member] | |
Schedule of Stock Options [Abstract] | |
Number Outstanding (in Shares) | shares | 303,050 |
Wtd. Avg, Life | 2 years 8 months 12 days |
Wtd. Avg. Exercise Price | $ 11.7 |
Outstanding Stock Option [Member] | Minimum [Member] | |
Schedule of Stock Options [Abstract] | |
Range of Exercise Price | 8.4 |
Outstanding Stock Option [Member] | Maximum [Member] | |
Schedule of Stock Options [Abstract] | |
Range of Exercise Price | $ 15.6 |
Exercisable Stock Option [Member] | |
Schedule of Stock Options [Abstract] | |
Number Outstanding (in Shares) | shares | 246,466 |
Wtd. Avg, Life | 2 years 4 months 24 days |
Wtd. Avg. Exercise Price | $ 12.07 |
Exercisable Stock Option [Member] | Minimum [Member] | |
Schedule of Stock Options [Abstract] | |
Range of Exercise Price | 8.4 |
Exercisable Stock Option [Member] | Maximum [Member] | |
Schedule of Stock Options [Abstract] | |
Range of Exercise Price | $ 15.6 |
Revision of Previously Issued_3
Revision of Previously Issued Consolidated Financial Statement (Details) | Dec. 31, 2021 USD ($) |
Disclosure of Revision of Previously Issued Financial Statement [Abstract] | |
Net operating loss forward | $ 29,100,000 |
Proper amount | $ 21,971,000 |
Revision of Previously Issued_4
Revision of Previously Issued Consolidated Financial Statement (Details) - Schedule of deferred tax assets - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Previously Reported [Member] | ||
Revision of Previously Issued Consolidated Financial Statement (Details) - Schedule of deferred tax assets [Line Items] | ||
U.S. statutory income tax rate | 21% | |
State taxes, net of federal benefit | 5.10% | |
Permanent difference, overaccruals, and non-deductible items | (40.40%) | |
Change in state rate | 0% | |
Deferred tax valuation allowance | 14.30% | |
Other | 0% | |
Total | 0% | |
Net operating loss | $ 6,737,000 | $ 6,594,000 |
Allowance for doubtful accounts | 155,000 | 252,000 |
Inventory - IRC 263A adjustment | 394,000 | 341,000 |
Stock based compensation - options and restricted stock | 393,000 | 277,000 |
Capitalized engineering costs | 449,000 | 336,000 |
Deferred Rent | 4,000 | |
Amortization - NTW Transaction | 442,000 | 495,000 |
Inventory reserve | 824,000 | 1,250,000 |
Deferred gain on sale of real estate | 47,000 | 132,000 |
Accrued expenses | 204,000 | 158,000 |
Disallowed interest | 1,286,000 | 1,813,000 |
Operating lease liability | 235,000 | 292,000 |
Capital loss carryforward | 88,000 | |
Total non-current deferred tax asset before valuation allowance | 11,254,000 | 11,944,000 |
Valuation allowance | (9,628,000) | (9,394,000) |
Total non-current deferred tax asset after valuation allowance | 1,626,000 | 2,550,000 |
Property and equipment | (1,626,000) | (2,150,000) |
Other | (400,000) | |
Operating lease ROU assets | ||
Total deferred tax liabilities | (1,626,000) | (2,550,000) |
Net deferred tax asset | ||
Revision of Prior Period, Adjustment [Member] | ||
Revision of Previously Issued Consolidated Financial Statement (Details) - Schedule of deferred tax assets [Line Items] | ||
U.S. statutory income tax rate | 0% | |
State taxes, net of federal benefit | (1.00%) | |
Permanent difference, overaccruals, and non-deductible items | 46.70% | |
Change in state rate | 8.30% | |
Deferred tax valuation allowance | (53.00%) | |
Other | (1.00%) | |
Total | 0% | |
Net operating loss | $ (1,778,000) | (1,422,000) |
Allowance for doubtful accounts | (6,000) | (3,000) |
Inventory - IRC 263A adjustment | (17,000) | (3,000) |
Stock based compensation - options and restricted stock | (210,000) | (73,000) |
Capitalized engineering costs | (19,000) | 228,000 |
Deferred Rent | ||
Amortization - NTW Transaction | 3,000 | (73,000) |
Inventory reserve | (34,000) | (579,000) |
Deferred gain on sale of real estate | (2,000) | (1,000) |
Accrued expenses | (186,000) | (158,000) |
Disallowed interest | 290,000 | (18,000) |
Operating lease liability | 749,000 | 905,000 |
Capital loss carryforward | (88,000) | |
Total non-current deferred tax asset before valuation allowance | (1,298,000) | (1,197,000) |
Valuation allowance | 2,125,000 | 1,262,000 |
Total non-current deferred tax asset after valuation allowance | 827,000 | 65,000 |
Property and equipment | (71,000) | 443,000 |
Operating lease ROU assets | (908,000) | |
Other | 400,000 | |
Operating lease ROU assets | (756,000) | |
Total deferred tax liabilities | (827,000) | (65,000) |
Net deferred tax asset | ||
As restated [Member] | ||
Revision of Previously Issued Consolidated Financial Statement (Details) - Schedule of deferred tax assets [Line Items] | ||
U.S. statutory income tax rate | 21% | |
State taxes, net of federal benefit | 4.10% | |
Permanent difference, overaccruals, and non-deductible items | 6.30% | |
Change in state rate | 8.30% | |
Deferred tax valuation allowance | (38.70%) | |
Other | (1.00%) | |
Total | 0% | |
Net operating loss | $ 4,959,000 | 5,172,000 |
Allowance for doubtful accounts | 149,000 | 249,000 |
Inventory - IRC 263A adjustment | 377,000 | 338,000 |
Stock based compensation - options and restricted stock | 183,000 | 204,000 |
Capitalized engineering costs | 430,000 | 564,000 |
Deferred Rent | 4,000 | |
Amortization - NTW Transaction | 445,000 | 422,000 |
Inventory reserve | 790,000 | 671,000 |
Deferred gain on sale of real estate | 45,000 | 131,000 |
Accrued expenses | 18,000 | |
Disallowed interest | 1,576,000 | 1,795,000 |
Operating lease liability | 984,000 | 1,197,000 |
Capital loss carryforward | ||
Total non-current deferred tax asset before valuation allowance | 9,956,000 | 10,747,000 |
Valuation allowance | (7,503,000) | (8,132,000) |
Total non-current deferred tax asset after valuation allowance | 2,453,000 | 2,615,000 |
Property and equipment | (1,697,000) | (1,707,000) |
Operating lease ROU assets | (908,000) | |
Other | ||
Operating lease ROU assets | (756,000) | |
Total deferred tax liabilities | (2,453,000) | $ (2,615,000) |
Net deferred tax asset |