SMTC (SMTX) 10-Q 8 Aug 18 2018 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information	6 Months Ended
	Jul. 01, 2018shares
Document Information [Line Items]
Entity Registrant Name	SMTC CORP
Entity Central Index Key	1,108,320
Trading Symbol	smtx
Current Fiscal Year End Date	--12-30
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Entity Common Stock, Shares Outstanding (in shares)	17,303,510
Document Type	10-Q
Document Period End Date	Jul. 1, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q2
Amendment Flag	false

Interim Consolidated Balance Sh

Interim Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands	Jul. 01, 2018	Dec. 31, 2017
Current assets:
Cash	$ 1,953	$ 5,536
Accounts receivable — net (note 4)	32,125	29,110
Unbilled contract assets (notes 2 and 4)	6,808
Inventories (note 4)	25,214	22,363
Prepaid expenses and other assets	3,579	2,142
Derivative assets (note 10)	0	37
Total current assets	69,679	59,188
Property, plant and equipment — net (note 4)	11,732	10,269
Deferred income taxes — net	351	305
Deferred financing costs — net	121	94
Total assets	81,883	69,856
Current liabilities:
Accounts payable	34,047	25,028
Accrued liabilities (note 4)	6,188	4,877
Derivative liabilities (note 10)	108	375
Income taxes payable		48
Current portion of long-term debt (note 5)	2,000	2,000
Current portion of capital lease obligations	346	174
Total current liabilities	55,267	44,693
Equipment facility (note 5)	1,297
Long-term debt (note 5)	5,000	6,000
Capital lease obligations	450	89
Total liabilities	62,014	50,782
Shareholders’ equity:
Capital stock (note 6)	399	396
Additional paid-in capital	265,916	265,355
Deficit	(246,446)	(246,677)
	19,869	19,074
Total liabilities and shareholders’ equity	81,883	69,856
Revolving Credit Facility [Member]
Current liabilities:
Lines of credit, current	11,981	12,191
Equipment Facility [Member]
Current liabilities:
Lines of credit, current	$ 597

Interim Consolidated Statements

Interim Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2018	Jul. 02, 2017	Jul. 01, 2018	Jul. 02, 2017
Revenue	$ 44,479	$ 32,995	$ 81,599	$ 66,173
Cost of sales (note 10)	40,196	31,575	73,466	61,196
Gross profit	4,283	1,420	8,133	4,977
Selling, general and administrative expenses	3,647	4,110	7,156	7,872
Impairment of property, plant and equipment		1,601		1,601
Restructuring charges	96	1,351	96	1,351
Operating earnings (loss)	540	(5,642)	881	(5,847)
Interest expense (notes 4)	403	217	710	396
Earnings (loss) before income tax expense	137	(5,859)	171	(6,243)
Income tax expense (recovery) (note 7):
Current	196	168	306	295
Deferred	38	(14)	(46)	(148)
	234	154	260	147
Net loss and comprehensive loss	$ (97)	$ (6,013)	$ (89)	$ (6,390)
Loss per share of common stock:
Basic (in dollars per share)	$ (0.01)	$ (0.36)	$ (0.01)	$ (0.38)
Diluted (in dollars per share)	$ (0.01)	$ (0.36)	$ (0.01)	$ (0.38)
Weighted average number of shares outstanding (note 8):
Basic (in shares)	17,222,439	16,807,333	17,131,971	16,734,117
Diluted (in shares)	17,222,439	16,807,333	17,131,971	16,734,117

Interim Consolidated Statement4

Interim Consolidated Statements of Changes in Shareholders' Equity (Unaudited) - 6 months ended Jul. 01, 2018 - USD ($) $ in Thousands	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total
Balance (in shares) at Dec. 31, 2017	16,992,627
Balance at Dec. 31, 2017	$ 396	$ 265,355	$ (246,677)	$ 19,074
Impact of adoption of ASC 606 (note 2) at Dec. 31, 2017			320	320
RSU vested and stock options exercised (in shares)	310,883
RSU vested and stock options exercised	$ 3	358		361
Stock-based compensation		203		203
Net loss			(89)	(89)
Balance (in shares) at Jul. 01, 2018	17,303,510
Balance at Jul. 01, 2018	$ 399	$ 265,916	$ (246,446)	$ 19,869

Interim Consolidated Statement5

Interim Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jul. 01, 2018	Jul. 02, 2017
Operations:
Net loss	$ (89)	$ (6,390)
Items not involving cash:
Depreciation	1,543	1,950
Unrealized foreign exchange gain on unsettled forward exchange contracts	(230)	(1,556)
Impairment of property, plant and equipment		1,601
Deferred income taxes	(46)	(148)
Amortization of deferred financing fees	21	11
Stock-based compensation	203	196
Change in non-cash operating working capital:
Accounts receivable	(3,016)	1,084
Unbilled contract assets	(6,488)
Inventories	(2,851)	(4,421)
Prepaid expenses and other assets	(1,437)	436
Income taxes payable	(48)	(151)
Accounts payable	8,995	1,687
Accrued liabilities	1,361	821
	(2,082)	(4,880)
Financing:
Net advances (repayment) of revolving credit facility	(209)	2,757
Repayment of long-term debt	(1,000)	(1,000)
Advance of equipment facility	1,894
Principal payment of capital lease obligations	(94)	(308)
Proceeds from issuance of common stock	361
Deferred financing fees	(48)	(51)
	904	1,398
Investing:
Purchase of property, plant and equipment	(2,405)	(914)
Decrease in cash	(3,583)	(4,396)
Cash, beginning of period	5,536	8,503
Cash, end of the period	1,953	4,107
Supplemental Information
Property, plant and equipment acquired that was included in accounts payable and accrued liabilities	43	21
Property, plant and equipment acquired through capital lease	$ 533

Note 1 - Nature of the Business

Note 1 - Nature of the Business	6 Months Ended
	Jul. 01, 2018
Notes to Financial Statements
Business Description and Basis of Presentation [Text Block]	1. Nature of the business SMTC Corporation (the “Company” or “SMTC”) is a provider of end-to-end electronics manufacturing services, or EMS, including product design and sustaining engineering services, printed circuit board assembly, or PCBA, production, enclosure fabrication, cable assembly, systems integration and comprehensive testing services, configuration to order, build to order and direct order fulfilment. SMTC facilities span a broad footprint in the United States, Mexico, and China. SMTC’s services extend over the entire electronic product life cycle from the development and introduction of new products through to growth, maturity and end of life phases. SMTC offers fully integrated contract manufacturing services to global original equipment manufacturers, or OEMs, and technology companies primarily within the industrial, computing and communications, power and energy and medical market segments. In addition, the Company operates an international sourcing and procurement office in Hong Kong and maintains its corporate headquarters in Markham, Canada. The accompanying unaudited interim consolidated financial statements of the Company have been prepared in accordance with the accounting principles and methods of application disclosed in the audited consolidated financial statements within the Company’s Form 10 December 31, 2017, ( 10 March 8, 2018, 2. 10 December 31, 2017 not Unless otherwise specified or the context requires otherwise, all statements in these notes to the interim consolidated financial statements regarding financial figures are expressed in thousands of U.S. dollars.

Note 2 - ASC 606 Revenue From C

Note 2 - ASC 606 Revenue From Contracts With Customers	6 Months Ended
	Jul. 01, 2018
Notes to Financial Statements
Revenue from Contract with Customer [Text Block]	2. ASC 606: General description of the new guidance Effective January 1, 2018, 606: January 1, 2018 not Satisfaction of performance obligation s The Company primarily provides contract manufacturing services to its customers. The customer provides a design, the Company procures materials and manufactures to that design and ships the product to the customer or customer designated location. Revenue is derived primarily from the manufacturing of these electronics components that are built to customer specifications. Revenue is recognized as the customized components are manufactured over time. The Company has an enforceable right to payment for work completed to date and the goods do not In addition, the Company has contractual arrangements with the majority of its customers that provide for customers to purchase any unused inventory that the Company has purchased to fulfill that customer’s forecasted manufacturing demand. Revenue from the sale of any excess inventory to the customer is recognized at a point in time when control transfers, which is typically when title passes to the customer upon shipment. The Company also derives revenue from the sale of procured finished goods, specifically for resale. Revenue from the sales of these goods is recognized when control transfers at a point in time, which is typically when title passes to the customer. The Company also derives revenue from engineering and design services. Service revenue is recognized over time as services are performed. Impact of adoption of ASC 606 The cumulative effect of the changes to our consolidated January 1, 2018 2014 09, Balance at December 31, 2017 Adjustments Due to Balance at January 1, 2018 Assets Inventories $ 22,363 $ (3,414 ) $ 18,949 Unbilled contract assets — 3,734 3,734 Shareholders’ Equity Total shareholders’ equity 19,074 320 19,394 The following table presents the impacted financial statements line items in the consolidated balance sheet as of July 1, 2018: Balances Without Adoption of ASC 606 Effect of Change As Reported Unbilled contract assets $ — $ 6,808 $ 6,808 Inventories 31,578 (6,364 ) 25,214 Total shareholders’ equity 19,425 444 19,869 The following table presents the impacted financial statement line items in the consolidated statements of operations and comprehensive loss for the three July 1, 2018: Without Adoption of ASC 606 Impact of change As reported Revenues Revenue $ 43,140 $ 1,339 $ 44,479 Cost of sales 38,929 1,267 40,196 Gross profit 4,211 72 4,283 Income tax expense 234 — 234 Net loss (169 ) 72 (97 ) The following table presents the impacted financial statement line items in the consolidated statements of operations and comprehensive loss for the six July 1, 2018: Without Adoption of ASC 606 Impact of change As reported Revenues Revenue $ 78,525 $ 3,074 $ 81,599 Cost of sales 70,516 2,950 73,466 Gross profit 8,009 124 8,133 Income tax expense 260 — 260 Net loss (213 ) 124 (89 ) Critical accounting policies and estimates under ASC 606 The preparation of financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Note 3 10 606 Revenue recognition Revenue is derived primarily from the sale of electronics components that are built to customer specifications. Revenue from the sale of products is recognized as goods are manufactured over time. The Company has an enforceable right to payment for work completed to date and the goods do not In addition, the Company has contractual arrangements with the majority of its customers that provide for customers to purchase any unused inventory that the Company has purchased to fulfill that customer’s forecasted manufacturing demand. Revenue from the sale of excess inventory to the customer is recognized at a point in time, or when title passes to the customer which occurs when the inventory is shipped to the customer. The Company also derives revenue from engineering and design services. Service revenue is recognized as services are performed. Sales taxes collected from customers and remitted to governmental authorities are presented on a net basis. Inventories Inventories are valued, on a first first 606, no may Estimation of the percentage of completion in satisfying its performance obligation The Company records an unbilled contract asset for revenue related to its WIP when the manufacturing process has commenced and there is a non-cancellable customer purchase order. The Company uses direct manufacturing labor inputs to estimate the percentage of completion in satisfying its performance obligation associated with WIP inventory. If assumptions change related to the inputs or outputs utilized to estimate the performance obligation associated with WIP inventory, this could have a material impact on the revenue and corresponding margin recognized.

Note 3 - Recently Adopted Accou

Note 3 - Recently Adopted Accounting Pronouncements	6 Months Ended
	Jul. 01, 2018
Notes to Financial Statements
New Accounting Pronouncements and Changes in Accounting Principles [Text Block]	3. Recently Adopted Accounting Pronouncements In March 2016, 2016 08: 606 April 2016, 2016 10: 606 May 2016, 2016 12: 606 May 2014, 2014 09: 606 605 605 35, not 360, 350, August 2015, 2015 14 606 one December 15, 2017 2 In January 2016, 2016 01: 825 10 December 15, 2017, no In August 2016, 2016 15 230 eight zero December 15, 2017 no In November 2016, 2016 18 230 December 15, 2017 not no no Recent Accounting Pronouncements Not In February 2016, 2016 02: 842 may 12 December 15, 2018, In May 2016, 2016 13 326 December 15, 2019 December 15, 2018. not In June 2018, 2018 07: 718 December 15, 2018, not

Note 4 - Interim Consolidated F

Note 4 - Interim Consolidated Financial Statement Details	6 Months Ended
	Jul. 01, 2018
Notes to Financial Statements
Condensed Financial Statements [Text Block]	4. Interim Consolidated financial statement details The following consolidated financial statement details are presented as of the period ended for the consolidated balance sheets and for the periods ended for each of the consolidated statements of operations and comprehensive loss. Consolidated Balance Sheets Accounts receivable – net: July 1 , 201 8 December 3 1, 2017 Trade accounts receivable $ 31,669 $ 28,793 Other receivables 410 317 Allowance for doubtful accounts (46 ) — Total $ 32,125 $ 29,110 Unbilled contract assets: July 1 , 201 8 December 3 1, 2017 Opening – January 1, 2018 $ 3,734 $ — Contract assets addition 12,277 Contract assets invoiced (9,203 ) — Ending $ 6,808 $ — Inventories: July 1 , 201 8 December 3 1, 2017 Raw materials $ 23,808 $ 19,157 Work in process — 1,874 Finished goods (1) 804 1,540 Parts 769 411 Provision for obsolescence (167 ) (619 ) Total $ 25,214 $ 22,363 ( 1 Finished goods represent inventory the Company procured for resale and revenue will be recognized at a point in time the performance obligation has been satisfied and control of the finished goods has transferred to the customer. 4. Interim Consolidated financial statement details cont’d Property, plant and equipment – net: July 1 , 201 8 December 3 1, 2017 Cost: Land $ 1,648 $ 1,648 Buildings 9,903 9,852 Machinery and equipment (a) (c) 33,074 30,319 Office furniture and equipment 532 534 Computer hardware and software (b) 3,441 3,173 Leasehold improvements 2,140 2,160 50,738 47,686 Less accumulated depreciation: Land — — Buildings (8,874 ) (8,619 ) Machinery and equipment (a) (c) (25,592 ) (24,650 ) Office furniture and equipment (423 ) (413 ) Computer hardware and software (b) (2,846 ) (2,622 ) Leasehold improvements (1,271 ) (1,113 ) (39,006 ) (37,417 ) Property, plant and equipment—net $ 11,732 $ 10,269 (a) Included within machinery and equipment were assets under capital leases with costs of $1,069 $533 $258 $222 July 1, 2018 December 31, 2017, three July 1, 2018 July 2, 2017 $21 $55, six July 1, 2018 July 2, 2017 $36 $133, (b) Included within computer hardware and software are assets under capital leases with costs of $91 $Nil July 1, 2018 December 31, 2017 $5 $Nil July 1, 2018 December 31, 2017, three July 1, 2018 July 2, 2017 $5 $Nil, six July 1, 2018 July 2, 2017 $5 $3, (c) In accordance with ASC 360 10, may not July 1, 2018, not six July 1, 2018, $1,161. $1,112 no 2018. 10%, $775. may 4. Interim Consolidated financial statement details cont’d Accrued liabilities: July 1 , 201 8 December 3 1, 2017 Customer related $ 1,477 $ 936 Payroll 2,724 2,485 Professional services 307 328 Restructuring 137 109 Vendor related 696 493 Other 847 526 Total $ 6,188 $ 4,877 Interim consolidated statements of operations and comprehensive loss Interest expense: Three months ended Six months ended July 1 , 201 8 July 2 , 201 7 July 1 , 201 8 July 2 , 201 7 Revolving credit facility $ 224 $ 87 $ 400 $ 142 Long-term debt 107 117 214 226 Equipment facility 14 — 14 — Amortization of deferred financing fees 11 7 21 11 Obligations under capital leases 47 6 61 17 Interest expense $ 403 $ 217 $ 710 $ 396

Note 5 - Debt

Note 5 - Debt	6 Months Ended
	Jul. 01, 2018
Notes to Financial Statements
Debt Disclosure [Text Block]	5. Debt (a) Debt Facilities The Company borrows money under a Revolving Credit and Security Agreement with PNC Bank, National Association (“PNC”) which governs the PNC Revolving Credit Facility, PNC Long-Term Debt Facility and the PNC Equipment Facility (“PNC Facilities”). The PNC Facilities have a term ending on January 2, 2021. 0.75%. 1.25%. 5.6% six July 1, 2018 4.6% six July 2, 2017. As at July 1, 2018 $10,463 December 31, 2017 - $5,295 $30,000. On March 28, 2018, September 14, 2011 $3,000 not $2,000 March 28, 2018 December 31, 2018 ( three 3 January 2, 2021 1.75%. January 2, 2021. June 29, 2018, $3,000 The Long-Term Debt Facility of $10,000 January 2, 2021 $500 $1,894 December 31, 2021 $58 three January 1, 2019. At July 1, 2018, $11,981 December 31, 2017 - $12,191 At July 1, 2018, $7,000 December 31, 2017 – $8,000 At July 1, 2018, $1,894 December 31, 2017 – $Nil The PNC Facilities are a joint and several obligations of the Company and its subsidiaries that are borrowers under the facilities and are jointly and severally guaranteed by other subsidiaries of the Company. Repayment under the PNC Facilities is collateralized by the assets of the Company and each of its subsidiaries. (b) Covenants The PNC Facilities agreement contains certain financial and non-financial covenants. The financial covenants require the Company to maintain minimum consolidated fixed charge coverage ratio and limit unfunded capital expenditures (all as defined in the Revolving Credit and Security Agreement governing the PNC Facilities). The Company must maintain a minimum fixed charge coverage ratio in effect for the nine July 1, 2018, twelve September 30, 2018 twelve January 2, 2021. The Company is in compliance with the financial covenants included in the PNC Facilities as of July 1, 2018.

Note 6 - Capital Stock

Note 6 - Capital Stock	6 Months Ended
	Jul. 01, 2018
Notes to Financial Statements
Stockholders' Equity Note Disclosure [Text Block]	6. Capital stock Common shares Issued and outstanding: The issued and outstanding number of common shares included in shareholders’ equity consisted of the following: Number of shares $ Balance at December 31, 2017 16,992,627 396 Share issuance (1) 310,883 3 Balance at July 1, 2018 17,303,510 399 ( 1 310,883 211,135 99,748 Stock Options For more detailed information regarding the Company’s stock option arrangements, see Note 6 10 December 31, 2017. 335,929 three six July 1, 2018. six July 1, 2018 Number of options Weighted Aggregate Weighted (years) Outstanding at December 31, 2017 1,870,753 $ 1.39 61 8.6 Options granted 335,929 $ 2.07 Exercised (211,135 ) 1.71 Forfeited (316,180 ) $ 1.25 Outstanding at July 1, 2018 1,679,367 $ 1.52 $ 585 8.8 Exercisable at July 1, 2018 480,741 $ 1.60 $ 556 8.1 During the three July 1, 2018 July 2, 2017, $34 $11, six July 1, 2018 July 2, 2017, $59 $23, Certain stock options outstanding have market conditions such that the awards are vested and exercisable only if the Company’s stock exceeds specified targets during the vesting period. If the market conditions are not not Restricted Stock Units For more detailed information regarding the Company’s Restricted Stock Units (“RSUs”) arrangements, see Note 6 10 December 31, 2017. 25,000 six July 1, 2018. six July 1, 2018 Outstanding s Weighted Weighted Outstanding balance at December 31, 2017 576,023 $ 1.13 1.84 RSUs granted 25,000 $ 2.37 RSUs vested and issued in shares (99,748 ) $ 1.40 RSUs forfeited (67,689 ) $ 0.97 Outstanding balance at July 1, 2018 433,586 $ 0.98 1.33 Certain RSUs outstanding have a market condition such that the awards are vested and issuable only if the market price of the Company’s stock meets or exceeds a specified target during the vesting period. If the market condition is not not Stock based compensation expense (recovery) recognized during the three July 1, 2018 July 2, 2017 $43 $18 six July 1, 2018 July 2, 2017 $144 $173,

Note 7 - Income Taxes

Note 7 - Income Taxes	6 Months Ended
	Jul. 01, 2018
Notes to Financial Statements
Income Tax Disclosure [Text Block]	7. Income taxes During the three July 1, 2018 July 2, 2017, $196 $168, three July 1, 2018 July 2, 2017, $38 $14, six July 1, 2018 July 2, 2017, $306 $295, six July 1, 2018 July 2, 2017 $46 $148, In assessing the realization of deferred tax assets, management considers whether it is more likely than not not 740, 740” not

Note 8 - Loss Per Common Share

Note 8 - Loss Per Common Share	6 Months Ended
	Jul. 01, 2018
Notes to Financial Statements
Earnings Per Share [Text Block]	8. L oss per common share The following table details the weighted average number of common shares outstanding for the purposes of computing basic and diluted earnings per common share for the following periods: Three months ended Six months ended July 1 , 201 8 July 2 , 201 7 July 1 , 201 8 July 2 , 201 7 Basic weighted average shares outstanding 17,222,439 16,807,333 17,131,971 16,734,117 Dilutive stock awards (1) (a) (b) — — — — Diluted weighted average shares outstanding 17,222,439 16,807,333 17,131,971 16,734,117 ( 1 Dilutive stock awards include outstanding restricted stock units and in the money stock options determined using the treasury stock method (a) For the three six July 1, 2018, not 644,503 663,816, three six July 1, 2018 (b) For the three six July 2, 2017, not 668,701 731,961, three six July 2, 2017

Note 9 - Segmented Information

Note 9 - Segmented Information	6 Months Ended
	Jul. 01, 2018
Notes to Financial Statements
Segment Reporting Disclosure [Text Block]	9. Segmented information General description The Company is operated and managed geographically and has production facilities in the United States, Mexico and China. The Company utilizes reportable segment’s site contribution (site revenues minus operating expenses, excluding unrealized foreign exchange gain (loss) on unsettled forward exchange contracts, corporate allocations and restructuring expenses) to monitor reportable segment performance. Site contribution is utilized by the chief operating decision-maker as the indicator of reportable segment performance, as it reflects costs which our operating site management is directly responsible for. Intersegment adjustments reflect intersegment sales that are generally recorded at prices that approximate arm’s-length transactions. In assessing the performance of the reportable segments, management attributes site revenue to the reportable segment that ships the product to the customer, irrespective of the product’s destination. Information about the reportable segments is as follows: Three months ended Six months ended July 1 , 201 8 July 2 , 201 7 July 1 , 201 8 July 2 , 201 7 Revenues Mexico $ 35,581 $ 23,996 $ 64,654 $ 46,487 China 5,786 7,775 11,019 16,097 U.S. 5,331 3,928 10,586 8,910 Total $ 46,698 $ 35,699 $ 86,259 $ 71,494 Intersegment revenue Mexico $ (618 ) $ — $ (738 ) $ (12 ) China (1,552 ) (2,659 ) (3,779 ) (5,170 ) U.S. (49 ) (45 ) (143 ) (139 ) Total $ (2,219 ) $ (2,704 ) $ (4,660 ) $ (5,321 ) Net external revenue Mexico $ 34,963 $ 23,996 $ 63,916 $ 46,475 China 4,234 5,116 7,240 10,927 U.S. 5,282 3,883 10,443 8,771 Total segment revenue (which also equals consolidated revenue) $ 44,479 $ 32,995 $ 81,599 $ 66,173 Site Contribution Mexico $ 3,209 $ 1,338 $ 5,715 $ 2,685 China 314 (1,599 ) 442 (1,174 ) U.S. (62 ) (1,679 ) (39 ) (2,114 ) Total $ 3,461 $ (1,940 ) $ 6,118 $ (603 ) Corporate allocations 2,736 2,635 5,371 5,449 Unrealized foreign exchange (gain) loss on unsettled forward exchange contracts 89 (284 ) (230 ) (1,556 ) Interest 403 217 710 396 Restructuring charges 96 1,351 96 1,351 Earnings (loss) before income taxes $ 137 $ (5,859 ) $ 171 $ (6,243 ) Additions to property, plant and equipment The following table contains additions to property, plant and equipment including those acquired through capital leases for the three six July 1, 2018 July 2, 2017: Three months ended Six months ended July 1 , 2018 July 2 , 2017 July 1 , 2018 July 2 , 2017 Mexico $ 2,288 $ 25 $ 2,376 $ 180 China 8 9 8 75 U.S. 552 234 558 309 Segment total 2,848 268 2,942 564 Corporate and other 107 118 110 124 Total $ 2,955 $ 386 $ 3,052 $ 688 Property, plant and equipment (a) July 1 , 201 8 December 3 1, 2017 Mexico $ 8,810 $ 7,518 China 1,161 1,380 U.S 1,571 1,188 Segment total 11,542 10,086 Corporate and other 190 183 Segment assets $ 11,732 $ 10,269 (a) Property, plant and equipment information is based on the principal location of the asset. Geographic revenues The following table contains geographic revenues based on the product shipment destination, for the three six July 1, 2018 July 2, 2017: Three months ended Six months ended July 1 , 2018 July 2 , 2017 July 1 , 2018 July 2 , 2017 U.S. $ 34,699 $ 24,101 $ 64,829 $ 50,175 Canada 7,857 5,082 13,018 10,504 China 1,923 1,181 3,752 2,356 Africa — 2,631 — 3,138 Total $ 44,479 $ 32,995 $ 81,599 $ 66,173 Significant customers and concentration of credit risk: Sales of the Company’s products are concentrated in certain cases among specific customers in the same industry. The Company is subject to concentrations of credit risk in trade receivables. The Company considers concentrations of credit risk in establishing the allowance for doubtful accounts and believes the recorded allowances are adequate. The Company expects to continue to depend upon a relatively small number of customers for a significant percentage of its revenue. In addition to having a limited number of customers, the Company manufactures a limited number of products for each customer. If the Company loses any of its larger customers or any product line manufactured for one one one As of July 1, 2018, three 10% 14.4%, 10.4%, 10.0% July 2, 2017 – four 13.5%, 11.4%, 11.0% 10.3% second 2017. six July 1, 2018, three 13.9%, 10.4% 10.1% July 2, 2017 – three 12.1%, 10.3% 10.1% As of July 1, 2018, three 19.0%, 13.0% 10.9% December 31, 2017, three 14.0%, 14.0% 12.0% No 10%

Note 10 - Derivative Financial

Note 10 - Derivative Financial Instruments	6 Months Ended
	Jul. 01, 2018
Notes to Financial Statements
Derivative Instruments and Hedging Activities Disclosure [Text Block]	10. Derivative financial instruments The Company enters into forward foreign exchange contracts to reduce its exposure to foreign exchange currency rate fluctuations related to a portion of the forecasted Canadian Dollar and Mexican Peso denominated payroll, rent and utility cash flows. These contracts are effective economic hedges but do not 815 not The following table presents a summary of the outstanding foreign currency forward contracts as at July 1, 2018: Currency Buy/Sell Foreign Currency Amount Notional Contract Value in USD Canadian Dollar Buy 440 CAD $ 355 Mexican Peso Buy 22,000 MXN $ 1,188 The unrealized loss recognized in earnings for the three July 1, 2018 $89 July 2, 2017 – $284 six July 1, 2018 $230 July 2, 2017 – $1,556 three July 1, 2018 $140 July 2, 2017 – $14 six July 1, 2018 $92 July 2, 2017 – $450 2 820 July 1 , 201 8 July 2 , 2017 Average USD:CAD contract rate 1.24 1.29 Average USD:CAD mark-to-market rate 1.31 1.26 Average USD:PESO contract rate 18.52 18.69 Average USD:PESO mark-to-market rate 20.00 20.11 The derivative asset as at July 1, 2018 $Nil December 31, 2017 - $37 July 1, 2018 $108 December 31, 2017 - $375 Foreign exchange gains and losses are recorded in cost of sales in the consolidated statement of operations and comprehensive loss pertaining to translation of foreign denominated transactions during the period in addition to foreign denominated monetary assets and liabilities at the end of the reporting period. The total aggregate translated foreign exchange gain of $90 three July 1, 2018 ( July 2, 2017 – $11 $24 six July 1, 2018 ( July 2, 2017 – $80

Note 11 - Commitments

Note 11 - Commitments	6 Months Ended
	Jul. 01, 2018
Notes to Financial Statements
Commitments and Contingencies Disclosure [Text Block]	1 1 . Commitments Purchase obligations not July 1, 2018 $21,715 12 not December 31, 2017 $14,394 12

Note 12 - Subsequent Event

Note 12 - Subsequent Event	6 Months Ended
	Jul. 01, 2018
Notes to Financial Statements
Subsequent Events [Text Block]	12 . Subsequent event On July 23, 2018, $13,000. July 23, 2018 ( one three $2.25 August 22, 2018.

Significant Accounting Policies

Significant Accounting Policies (Policies)	6 Months Ended
	Jul. 01, 2018
Accounting Policies [Abstract]
New Accounting Pronouncements, Policy [Policy Text Block]	In March 2016, 2016 08: 606 April 2016, 2016 10: 606 May 2016, 2016 12: 606 May 2014, 2014 09: 606 605 605 35, not 360, 350, August 2015, 2015 14 606 one December 15, 2017 2 In January 2016, 2016 01: 825 10 December 15, 2017, no In August 2016, 2016 15 230 eight zero December 15, 2017 no In November 2016, 2016 18 230 December 15, 2017 not no no Recent Accounting Pronouncements Not In February 2016, 2016 02: 842 may 12 December 15, 2018, In May 2016, 2016 13 326 December 15, 2019 December 15, 2018. not In June 2018, 2018 07: 718 December 15, 2018, not

Note 2 - ASC 606 Revenue From19

Note 2 - ASC 606 Revenue From Contracts With Customers (Tables)	6 Months Ended
	Jul. 01, 2018
Notes Tables
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block]	Balance at December 31, 2017 Adjustments Due to Balance at January 1, 2018 Assets Inventories $ 22,363 $ (3,414 ) $ 18,949 Unbilled contract assets — 3,734 3,734 Shareholders’ Equity Total shareholders’ equity 19,074 320 19,394 Balances Without Adoption of ASC 606 Effect of Change As Reported Unbilled contract assets $ — $ 6,808 $ 6,808 Inventories 31,578 (6,364 ) 25,214 Total shareholders’ equity 19,425 444 19,869 Without Adoption of ASC 606 Impact of change As reported Revenues Revenue $ 43,140 $ 1,339 $ 44,479 Cost of sales 38,929 1,267 40,196 Gross profit 4,211 72 4,283 Income tax expense 234 — 234 Net loss (169 ) 72 (97 ) Without Adoption of ASC 606 Impact of change As reported Revenues Revenue $ 78,525 $ 3,074 $ 81,599 Cost of sales 70,516 2,950 73,466 Gross profit 8,009 124 8,133 Income tax expense 260 — 260 Net loss (213 ) 124 (89 )

Note 4 - Interim Consolidated20

Note 4 - Interim Consolidated Financial Statement Details (Tables)	6 Months Ended
	Jul. 01, 2018
Notes Tables
Condensed Balance Sheet [Table Text Block]	July 1 , 201 8 December 3 1, 2017 Trade accounts receivable $ 31,669 $ 28,793 Other receivables 410 317 Allowance for doubtful accounts (46 ) — Total $ 32,125 $ 29,110 July 1 , 201 8 December 3 1, 2017 Opening – January 1, 2018 $ 3,734 $ — Contract assets addition 12,277 Contract assets invoiced (9,203 ) — Ending $ 6,808 $ — July 1 , 201 8 December 3 1, 2017 Raw materials $ 23,808 $ 19,157 Work in process — 1,874 Finished goods (1) 804 1,540 Parts 769 411 Provision for obsolescence (167 ) (619 ) Total $ 25,214 $ 22,363 July 1 , 201 8 December 3 1, 2017 Cost: Land $ 1,648 $ 1,648 Buildings 9,903 9,852 Machinery and equipment (a) (c) 33,074 30,319 Office furniture and equipment 532 534 Computer hardware and software (b) 3,441 3,173 Leasehold improvements 2,140 2,160 50,738 47,686 Less accumulated depreciation: Land — — Buildings (8,874 ) (8,619 ) Machinery and equipment (a) (c) (25,592 ) (24,650 ) Office furniture and equipment (423 ) (413 ) Computer hardware and software (b) (2,846 ) (2,622 ) Leasehold improvements (1,271 ) (1,113 ) (39,006 ) (37,417 ) Property, plant and equipment—net $ 11,732 $ 10,269 July 1 , 201 8 December 3 1, 2017 Customer related $ 1,477 $ 936 Payroll 2,724 2,485 Professional services 307 328 Restructuring 137 109 Vendor related 696 493 Other 847 526 Total $ 6,188 $ 4,877
Condensed Income Statement [Table Text Block]	Three months ended Six months ended July 1 , 201 8 July 2 , 201 7 July 1 , 201 8 July 2 , 201 7 Revolving credit facility $ 224 $ 87 $ 400 $ 142 Long-term debt 107 117 214 226 Equipment facility 14 — 14 — Amortization of deferred financing fees 11 7 21 11 Obligations under capital leases 47 6 61 17 Interest expense $ 403 $ 217 $ 710 $ 396

Note 6 - Capital Stock (Tables)

Note 6 - Capital Stock (Tables)	6 Months Ended
	Jul. 01, 2018
Notes Tables
Schedule of Common Stock Outstanding Roll Forward [Table Text Block]	Number of shares $ Balance at December 31, 2017 16,992,627 396 Share issuance (1) 310,883 3 Balance at July 1, 2018 17,303,510 399
Share-based Compensation, Stock Options, Activity [Table Text Block]	Number of options Weighted Aggregate Weighted (years) Outstanding at December 31, 2017 1,870,753 $ 1.39 61 8.6 Options granted 335,929 $ 2.07 Exercised (211,135 ) 1.71 Forfeited (316,180 ) $ 1.25 Outstanding at July 1, 2018 1,679,367 $ 1.52 $ 585 8.8 Exercisable at July 1, 2018 480,741 $ 1.60 $ 556 8.1
Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block]	Outstanding s Weighted Weighted Outstanding balance at December 31, 2017 576,023 $ 1.13 1.84 RSUs granted 25,000 $ 2.37 RSUs vested and issued in shares (99,748 ) $ 1.40 RSUs forfeited (67,689 ) $ 0.97 Outstanding balance at July 1, 2018 433,586 $ 0.98 1.33

Note 8 - Loss Per Common Share

Note 8 - Loss Per Common Share (Tables)	6 Months Ended
	Jul. 01, 2018
Notes Tables
Schedule of Weighted Average Number of Shares [Table Text Block]	Three months ended Six months ended July 1 , 201 8 July 2 , 201 7 July 1 , 201 8 July 2 , 201 7 Basic weighted average shares outstanding 17,222,439 16,807,333 17,131,971 16,734,117 Dilutive stock awards (1) (a) (b) — — — — Diluted weighted average shares outstanding 17,222,439 16,807,333 17,131,971 16,734,117

Note 9 - Segmented Information

Note 9 - Segmented Information (Tables)	6 Months Ended
	Jul. 01, 2018
Notes Tables
Schedule of Segment Reporting Information, by Segment [Table Text Block]	Three months ended Six months ended July 1 , 201 8 July 2 , 201 7 July 1 , 201 8 July 2 , 201 7 Revenues Mexico $ 35,581 $ 23,996 $ 64,654 $ 46,487 China 5,786 7,775 11,019 16,097 U.S. 5,331 3,928 10,586 8,910 Total $ 46,698 $ 35,699 $ 86,259 $ 71,494 Intersegment revenue Mexico $ (618 ) $ — $ (738 ) $ (12 ) China (1,552 ) (2,659 ) (3,779 ) (5,170 ) U.S. (49 ) (45 ) (143 ) (139 ) Total $ (2,219 ) $ (2,704 ) $ (4,660 ) $ (5,321 ) Net external revenue Mexico $ 34,963 $ 23,996 $ 63,916 $ 46,475 China 4,234 5,116 7,240 10,927 U.S. 5,282 3,883 10,443 8,771 Total segment revenue (which also equals consolidated revenue) $ 44,479 $ 32,995 $ 81,599 $ 66,173 Site Contribution Mexico $ 3,209 $ 1,338 $ 5,715 $ 2,685 China 314 (1,599 ) 442 (1,174 ) U.S. (62 ) (1,679 ) (39 ) (2,114 ) Total $ 3,461 $ (1,940 ) $ 6,118 $ (603 ) Corporate allocations 2,736 2,635 5,371 5,449 Unrealized foreign exchange (gain) loss on unsettled forward exchange contracts 89 (284 ) (230 ) (1,556 ) Interest 403 217 710 396 Restructuring charges 96 1,351 96 1,351 Earnings (loss) before income taxes $ 137 $ (5,859 ) $ 171 $ (6,243 ) Three months ended Six months ended July 1 , 2018 July 2 , 2017 July 1 , 2018 July 2 , 2017 Mexico $ 2,288 $ 25 $ 2,376 $ 180 China 8 9 8 75 U.S. 552 234 558 309 Segment total 2,848 268 2,942 564 Corporate and other 107 118 110 124 Total $ 2,955 $ 386 $ 3,052 $ 688 Three months ended Six months ended July 1 , 2018 July 2 , 2017 July 1 , 2018 July 2 , 2017 U.S. $ 34,699 $ 24,101 $ 64,829 $ 50,175 Canada 7,857 5,082 13,018 10,504 China 1,923 1,181 3,752 2,356 Africa — 2,631 — 3,138 Total $ 44,479 $ 32,995 $ 81,599 $ 66,173
Schedule of Disclosure on Geographic Areas, Long-Lived Assets in Individual Foreign Countries by Country [Table Text Block]	July 1 , 201 8 December 3 1, 2017 Mexico $ 8,810 $ 7,518 China 1,161 1,380 U.S 1,571 1,188 Segment total 11,542 10,086 Corporate and other 190 183 Segment assets $ 11,732 $ 10,269

Note 10 - Derivative Financia24

Note 10 - Derivative Financial Instruments (Tables)	6 Months Ended
	Jul. 01, 2018
Notes Tables
Schedule of Derivative Instruments [Table Text Block]	Currency Buy/Sell Foreign Currency Amount Notional Contract Value in USD Canadian Dollar Buy 440 CAD $ 355 Mexican Peso Buy 22,000 MXN $ 1,188
Schedule of Derivative Rates at Fair Value [Table Text Block]	July 1 , 201 8 July 2 , 2017 Average USD:CAD contract rate 1.24 1.29 Average USD:CAD mark-to-market rate 1.31 1.26 Average USD:PESO contract rate 18.52 18.69 Average USD:PESO mark-to-market rate 20.00 20.11

Note 2 - ASC 606 Revenue from25

Note 2 - ASC 606 Revenue from Contracts with Customers - Impact of Adoption of ASC 606 (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
	Jul. 01, 2018	Jul. 01, 2018	Jul. 02, 2017	Jul. 01, 2018	Jul. 02, 2017	Jan. 01, 2018	Dec. 31, 2017
Inventories	$ 25,214	$ 25,214		$ 25,214		$ 18,949	$ 22,363
Unbilled contract assets	6,808	6,808		6,808		3,734
Total shareholders’ equity	19,869	19,869		19,869		19,394	19,074
Unbilled contract assets	6,808	6,808		6,808		3,734
Inventories	25,214	25,214		25,214		18,949	22,363
Total shareholders’ equity	19,869	19,869		19,869		19,394	$ 19,074
Revenue	44,479	44,479	$ 32,995	81,599	$ 66,173
Cost of sales	40,196	40,196	31,575	73,466	61,196
Gross profit	4,283	4,283	1,420	8,133	4,977
Income tax expense	234	234	154	260	147
Net loss	(97)	(97)	$ (6,013)	(89)	$ (6,390)
Accounting Standards Update 2014-09 [Member]
Inventories						(3,414)
Unbilled contract assets						3,734
Total shareholders’ equity						320
Unbilled contract assets						3,734
Inventories						(3,414)
Total shareholders’ equity						$ 320
Calculated under Revenue Guidance in Effect before Topic 606 [Member]
Inventories	31,578	31,578		31,578
Unbilled contract assets
Total shareholders’ equity	19,425	19,425		19,425
Unbilled contract assets
Inventories	31,578	31,578		31,578
Total shareholders’ equity	19,425	19,425		19,425
Revenue	43,140			78,525
Cost of sales	38,929			70,516
Gross profit	4,211			8,009
Income tax expense	234			260
Net loss	(169)			(213)
Difference between Revenue Guidance in Effect before and after Topic 606 [Member]
Revenue	1,339			3,074
Cost of sales	1,267			2,950
Gross profit	72			124
Income tax expense
Net loss	72			124
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 [Member]
Inventories	(6,364)	(6,364)		(6,364)
Unbilled contract assets	6,808	6,808		6,808
Total shareholders’ equity	444	444		444
Unbilled contract assets	6,808	6,808		6,808
Inventories	(6,364)	(6,364)		(6,364)
Total shareholders’ equity	$ 444	$ 444		$ 444

Note 3 - Recently Adopted Acc26

Note 3 - Recently Adopted Accounting Pronouncements (Details Textual) $ in Thousands	Jul. 01, 2018USD ($)
Restricted Cash Equivalents, Total	$ 0

Note 4 - Interim Consolidated27

Note 4 - Interim Consolidated Financial Statement Details (Details Textual) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2018	Jul. 02, 2017	Jul. 01, 2018	Jul. 02, 2017	Dec. 31, 2017
Depreciation, Total			$ 1,543	$ 1,950
Property, Plant and Equipment, Net, Ending Balance	$ 11,732		11,732		$ 10,269
Impairment of Long-Lived Assets Held-for-use		$ 1,601		1,601
Machinery and Equipment [Member]
Capital Leased Assets, Gross, Total	1,069		1,069		533
Capital Leases, Lessee Balance Sheet, Assets by Major Class, Accumulated Depreciation	258		258		222
Machinery and Equipment [Member] | CHINA
Property, Plant and Equipment, Net, Ending Balance	1,161		1,161
Long-lived Assets, Amount in Excess of Carrying Value	1,112		1,112
Impairment of Long-Lived Assets Held-for-use			0
Long-lived Assets, Fair Value Assumption, Revenue Projection Decreased by Ten Percent, Recoverable Amount	775		775
Machinery and Equipment [Member] | Assets Under Capital Lease [Member]
Depreciation, Total	21	55	36	133
Computer Equipment [Member]
Capital Leased Assets, Gross, Total	91		91		0
Capital Leases, Lessee Balance Sheet, Assets by Major Class, Accumulated Depreciation	5		5		$ 0
Computer Equipment [Member] | Assets Under Capital Lease [Member]
Depreciation, Total	$ 5	$ 0	$ 5	$ 3

Note 4 - Interim Consolidated28

Note 4 - Interim Consolidated Financial Statement Details - Consolidated Balance Sheets (Details) - USD ($) $ in Thousands		6 Months Ended
		Jul. 01, 2018	Jul. 02, 2017	Jan. 01, 2018	Dec. 31, 2017
Trade accounts receivable		$ 31,669			$ 28,793
Other receivables		410			317
Allowance for doubtful accounts		(46)
Total		32,125			29,110
Opening – January 1, 2018		3,734
Contract assets addition		12,277
Contract assets invoiced		(9,203)
Ending		6,808
Raw materials		23,808			19,157
Work in process					1,874
Finished goods (1)	[1]	804			1,540
Parts		769			411
Provision for obsolescence		(167)			(619)
Total		25,214		$ 18,949	22,363
Property, plant and equipment		50,738			47,686
Accumulated depreciation, property, plant and equipment		(39,006)			(37,417)
Property, Plant and Equipment, Net, Ending Balance		11,732			10,269
Payroll		2,724			2,485
Professional services		307			328
Total		6,188			4,877
Land [Member]
Property, plant and equipment		1,648			1,648
Accumulated depreciation, property, plant and equipment
Building [Member]
Property, plant and equipment		9,903			9,852
Accumulated depreciation, property, plant and equipment		(8,874)			(8,619)
Machinery and Equipment [Member]
Property, plant and equipment	[2],[3]	33,074			30,319
Accumulated depreciation, property, plant and equipment	[2],[3]	(25,592)			(24,650)
Furniture and Fixtures [Member]
Property, plant and equipment		532			534
Accumulated depreciation, property, plant and equipment		(423)			(413)
Computer Equipment [Member]
Property, plant and equipment	[2]	3,441			3,173
Accumulated depreciation, property, plant and equipment	[2]	(2,846)			(2,622)
Leasehold Improvements [Member]
Property, plant and equipment		2,140			2,160
Accumulated depreciation, property, plant and equipment		(1,271)			(1,113)
Customer Related [Member]
Other accrued liabilities		1,477			936
Restructuring [Member]
Other accrued liabilities		137			109
Vendor Related [Member]
Other accrued liabilities		696			493
Other Accrued Liabilities [Member]
Other accrued liabilities		$ 847			$ 526
[1]	Finished goods represent inventory the Company procured for resale and revenue will be recognized at a point in time when the performance obligation has been satisfied and control of the finished goods has transferred to the customer.
[2]	In accordance with ASC 360-10, the Company is required to evaluate for impairment when events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. Upon the occurrence of a triggering event, the Company assesses whether the estimated undiscounted cash flows expected from the use of the asset and the residual value from the ultimate disposal of the asset exceeds the carrying value. As at April 1, 2018, the Company identified that operating results for its China segment asset group did not meet forecasted results, which was considered a triggering event related to its China segment asset group. The net carrying amount of the China asset group is $1,262. The Company estimated undiscounted cash flows and determined a recoverable amount of $1,056 in excess of the net carrying value, therefore no impairment loss was recorded in 2018. The key assumptions included in these cash flows are projected revenue based on management's forecast and corresponding margins. The estimate of undiscounted cash flows are sensitive to these key assumptions, for instance, if our revenue projections are lower by 10%, the recoverable amount in excess of the carrying amount would be reduced to $731. As such, the Company continues to monitor for impairment triggers each quarter, which may result in future impairments in this asset group.
[3]	Included within machinery and equipment were assets under capital leases with costs of $533 and $533 and associated accumulated depreciation of $237 and $222 as of April 1, 2018 and December 31, 2017, respectively. The related depreciation expense for the three months ended April 1, 2018 and April 2, 2017 was $15 and $78, respectively.

Note 4 - Interim Consolidated29

Note 4 - Interim Consolidated Financial Statement Details - Consolidated Statements of Operations and Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2018	Jul. 02, 2017	Jul. 01, 2018	Jul. 02, 2017
Long-term debt	$ 107	$ 117	$ 214	$ 226
Amortization of deferred financing fees	11	7	21	11
Obligations under capital leases	47	6	61	17
Interest expense	403	217	710	396
Revolving Credit Facility [Member]
Line of credit facility, periodic payment, interest	224	87	400	142
Equipment Facility [Member]
Line of credit facility, periodic payment, interest	$ 14		$ 14

Note 5 - Debt (Details Textual)

Note 5 - Debt (Details Textual) - PNC Bank [Member] - USD ($) $ in Thousands	Mar. 28, 2018	Jul. 01, 2018	Dec. 31, 2017	Jul. 02, 2017
Debt Instrument, Face Amount		$ 10,000
Line of Credit Facility, Periodic Payment		500
Long-term Line of Credit, Total		$ 7,000	$ 8,000
Revolving Credit Facility [Member]
Debt, Weighted Average Interest Rate		5.60%		4.60%
Line of Credit Facility, Remaining Borrowing Capacity		$ 10,463	5,295
Line of Credit Facility, Maximum Borrowing Capacity		30,000
Long-term Line of Credit, Total		11,981	12,191
Equipment Facility [Member]
Line of Credit Facility, Maximum Borrowing Capacity	$ 3,000
Maximum Aggregate Loans Advanced for Purchase of Equipment	$ 2,000
Debt Instrument, Term	3 years
Line of Credit Facility, Periodic Payment		58
Line of Credit Facility, Fair Value of Amount Outstanding		1,894
Long-term Line of Credit, Total		$ 1,894	$ 0
Base Rate [Member]
Debt Instrument, Basis Spread on Variable Rate		1.25%
Base Rate [Member] | Revolving Credit Facility [Member]
Debt Instrument, Basis Spread on Variable Rate		0.75%
Base Rate [Member] | Equipment Facility [Member]
Debt Instrument, Basis Spread on Variable Rate	1.75%

Note 6 - Capital Stock (Details

Note 6 - Capital Stock (Details Textual) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2018	Jul. 02, 2017	Jul. 01, 2018	Jul. 02, 2017
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period			211,135
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	335,929		335,929
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period			99,748
Allocated Share-based Compensation Expense, Total	$ 43	$ (18)	$ 144	$ 173
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period			25,000
Employee Stock Option [Member]
Allocated Share-based Compensation Expense, Total	$ 34	$ 11	$ 59	$ 23
Common Stock [Member]
Stock Issued During Period, Shares, Share-based Compensation, Gross			310,883

Note 6 - Capital Stock - Common

Note 6 - Capital Stock - Common Shares Issued and Outstanding (Details) $ in Thousands	6 Months Ended
	Jul. 01, 2018USD ($)shares
Shares issued during period, value	$ 361
Common Stock [Member]
Balance (in shares) | shares	16,992,627
Balance	$ 396
Shares issued during period (in shares) | shares	310,883
Shares issued during period, value	$ 3
Balance (in shares) | shares	17,303,510
Balance	$ 399

Note 6 - Capital Stock - Stock

Note 6 - Capital Stock - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	6 Months Ended	12 Months Ended
	Jul. 01, 2018	Jul. 01, 2018	Dec. 31, 2017
Balance, options outstanding (in shares)		1,870,753
Balance, outstanding weighted average exercise price (in dollars per share)		$ 1.39
Balance, aggregate intrinsic value	$ 585	$ 585	$ 61
Balance, outstanding weighted average remaining contractual term (Year)		8 years 292 days	8 years 219 days
Options granted, number of options (in shares)	335,929	335,929
Options granted, weighted average exercise price (in dollars per share)		$ 2.07
Exercised (in shares)		(211,135)
Exercised (in dollars per share)		$ 1.71
Forfeited (in shares)		(316,180)
Forfeited (in dollars per share)		$ 1.25
Balance, options outstanding (in shares)	1,679,367	1,679,367	1,870,753
Balance, outstanding weighted average exercise price (in dollars per share)	$ 1.52	$ 1.52	$ 1.39
Exercisable, number of options (in shares)	480,741	480,741
Exercisable, weighted average exercise price (in dollars per share)	$ 1.60	$ 1.60
Exercisable, aggregate intrinsic value	$ 556	$ 556
Exercisable weighted average remaining contractual term (Year)		8 years 36 days

Note 6 - Capital Stock - Restri

Note 6 - Capital Stock - Restricted Stock Units Activity (Details) - Restricted Stock Units (RSUs) [Member] - $ / shares	6 Months Ended	12 Months Ended
	Jul. 01, 2018	Dec. 31, 2017
Balance, outstanding options (in shares)	576,023
Balance, outstanding weighted average stock price (in dollars per share)	$ 1.13
Balance, outstanding weighted average remaining contractual term (Year)	1 year 120 days	1 year 306 days
RSUs granted (in shares)	25,000
RSUs granted, weighted average stock price (in dollars per share)	$ 2.37
RSUs vested and issued in shares (in shares)	(99,748)
RSUs vested and issued in shares, weighted average stock price (in dollars per share)	$ 1.40
RSUs forfeited (in shares)	(67,689)
RSUs forfeited, weighted average stock price (in dollars per share)	$ 0.97
Balance, outstanding options (in shares)	433,586	576,023
Balance, outstanding weighted average stock price (in dollars per share)	$ 0.98	$ 1.13

Note 7 - Income Taxes (Details

Note 7 - Income Taxes (Details Textual) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2018	Jul. 02, 2017	Jul. 01, 2018	Jul. 02, 2017
Current Income Tax Expense (Benefit), Total	$ 196	$ 168	$ 306	$ 295
Deferred Income Tax Expense (Benefit), Total	$ 38	$ (14)	$ (46)	$ (148)

Note 8 - Loss Per Common Shar36

Note 8 - Loss Per Common Share (Details Textual) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2018	Jul. 02, 2017	Jul. 01, 2018	Jul. 02, 2017
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	644,503	668,701	663,816	731,961

Note 8 - Loss Per Common Shar37

Note 8 - Loss Per Common Share - Common Shares Outstanding for Basic and Diluted Earnings Per Share (Details) - shares		3 Months Ended		6 Months Ended
		Jul. 01, 2018	Jul. 02, 2017	Jul. 01, 2018	Jul. 02, 2017
Basic weighted average shares outstanding (in shares)		17,222,439	16,807,333	17,131,971	16,734,117
Dilutive stock awards (1) (a) (b) (in shares)	[1],[2],[3]
Diluted weighted average shares outstanding (in shares)		17,222,439	16,807,333	17,131,971	16,734,117
[1]	Dilutive stock awards include outstanding restricted stock units and in the money stock options determined using the treasury stock method.
[2]	For the three and six months ended July 1, 2018, as a result of net loss for the period, dilutive stock awards are not presented as this would be antidilutive. Had there been net income for the periods, the dilutive stock awards would have been calculated as 644,503 and 663,816, respectively for the three and six months ended July 1, 2018 related to outstanding unvested restricted stock units and incremental in-the-money stock options.
[3]	For the three and six months ended July 2, 2017, as a result of net income for the period, dilutive stock awards are not presented as this would be antidilutive. Had there been net income for the periods, the dilutive stock awards have been calculated as 668,701 and 731,961, respectively for the three and six months ended July 2, 2017 related to outstanding unvested restricted stock units and incremental in-the-money stock options.

Note 9 - Segmented Informatio38

Note 9 - Segmented Information (Details Textual) - Customer Concentration Risk [Member]	3 Months Ended		6 Months Ended		12 Months Ended
	Jul. 01, 2018	Jul. 02, 2017	Jul. 01, 2018	Jul. 02, 2017	Dec. 31, 2017	Dec. 31, 2017
Sales Revenue, Net [Member]
Number of Major Customers		4	3	3
Sales Revenue, Net [Member] | Major Customer1 [Member]
Concentration Risk, Percentage	14.40%	13.50%	13.90%	12.10%
Sales Revenue, Net [Member] | Major Customer2 [Member]
Concentration Risk, Percentage	10.40%	11.40%	10.40%	10.30%
Sales Revenue, Net [Member] | Major Customer3 [Member]
Concentration Risk, Percentage	10.00%	11.00%	10.10%	10.10%
Sales Revenue, Net [Member] | Major Customer 4 [Member]
Concentration Risk, Percentage		10.30%
Accounts Receivable [Member]
Number of Major Customers			3			3
Accounts Receivable [Member] | Major Customer1 [Member]
Concentration Risk, Percentage			19.00%		14.00%
Accounts Receivable [Member] | Major Customer2 [Member]
Concentration Risk, Percentage			13.00%			14.00%
Accounts Receivable [Member] | Major Customer3 [Member]
Concentration Risk, Percentage			10.90%			12.00%

Note 9 - Segmented Informatio39

Note 9 - Segmented Information - Segment Reporting Information, by Segment (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
	Jul. 01, 2018	Jul. 01, 2018	Jul. 02, 2017	Jul. 01, 2018	Jul. 02, 2017
Revenue	$ 44,479	$ 44,479	$ 32,995	$ 81,599	$ 66,173
Gross profit	4,283	$ 4,283	1,420	8,133	4,977
Corporate allocations	2,736		2,635	5,371	5,449
Unrealized foreign exchange (gain) loss on unsettled forward exchange contracts	89		(284)	(230)	(1,556)
Interest	403		217	710	396
Restructuring charges	96		1,351	96	1,351
Earnings (loss) before income taxes	137		(5,859)	171	(6,243)
Additions to property, plant and equipment	2,955		386	3,052	688
MEXICO
Revenue	34,963		23,996	63,916	46,475
UNITED STATES
Revenue	5,282		3,883	10,443	8,771
UNITED STATES | Customers by Invoice Location [Member]
Revenue	34,699		24,101	64,829	50,175
CHINA
Revenue	4,234		5,116	7,240	10,927
CHINA | Customers by Invoice Location [Member]
Revenue	1,923		1,181	3,752	2,356
CANADA | Customers by Invoice Location [Member]
Revenue	7,857		5,082	13,018	10,504
Africa [Member] | Customers by Invoice Location [Member]
Revenue			2,631		3,138
Reportable Geographical Components [Member]
Revenue	46,698		35,699	86,259	71,494
Gross profit	3,461		(1,940)	6,118	(603)
Additions to property, plant and equipment	2,848		268	2,942	564
Reportable Geographical Components [Member] | MEXICO
Revenue	35,581		23,996	64,654	46,487
Gross profit	3,209		1,338	5,715	2,685
Additions to property, plant and equipment	2,288		25	2,376	180
Reportable Geographical Components [Member] | UNITED STATES
Revenue	5,331		3,928	10,586	8,910
Gross profit	(62)		(1,679)	(39)	(2,114)
Additions to property, plant and equipment	552		234	558	309
Reportable Geographical Components [Member] | CHINA
Revenue	5,786		7,775	11,019	16,097
Gross profit	314		(1,599)	442	(1,174)
Additions to property, plant and equipment	8		9	8	75
Corporate, Non-Segment [Member]
Additions to property, plant and equipment	107		118	110	124
Geography Eliminations [Member]
Revenue	(2,219)		(2,704)	(4,660)	(5,321)
Geography Eliminations [Member] | MEXICO
Revenue	(618)			(738)	(12)
Geography Eliminations [Member] | UNITED STATES
Revenue	(49)		(45)	(143)	(139)
Geography Eliminations [Member] | CHINA
Revenue	$ (1,552)		$ (2,659)	$ (3,779)	$ (5,170)

Note 9 - Segmented Informatio40

Note 9 - Segmented Information - Long-lived Assets in Individual Geographic Areas (Details) - USD ($) $ in Thousands		Jul. 01, 2018	Dec. 31, 2017
Long-lived assets	[1]	$ 11,732	$ 10,269
Reportable Geographical Components [Member]
Long-lived assets	[1]	11,542	10,086
Corporate, Non-Segment [Member]
Long-lived assets	[1]	190	183
MEXICO | Reportable Geographical Components [Member]
Long-lived assets	[1]	8,810	7,518
CHINA | Reportable Geographical Components [Member]
Long-lived assets	[1]	1,161	1,380
UNITED STATES | Reportable Geographical Components [Member]
Long-lived assets	[1]	$ 1,571	$ 1,188
[1]	Property, plant and equipment information is based on the principal location of the asset.

Note 10 - Derivative Financia41

Note 10 - Derivative Financial Instruments (Details Textual) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2018	Jul. 02, 2017	Jul. 01, 2018	Jul. 02, 2017	Dec. 31, 2017
Unrealized Gain (Loss) on Derivatives	$ (89)	$ 284	$ (230)	$ 1,556
Gain (Loss) on Sale of Derivatives	(140)	14	(92)	(450)
Derivative Asset, Current	0		0		$ 37
Derivative Liability, Current	108		108		$ 375
Foreign Currency Transaction Gain (Loss), before Tax, Total	$ 90	$ 11	$ (24)	$ (80)

Note 10 - Derivative Financia42

Note 10 - Derivative Financial Instruments - Outstanding Foreign Currency Forward Contracts (Details) - 6 months ended Jul. 01, 2018 $ in Thousands, $ in Thousands, $ in Millions	USD ($)	CAD ($)	MXN ($)
Buy/Sell	Buy
Foreign Currency Amount			$ 22
Notional Contract Value in USD	$ 1,188
Canada, Dollars
Buy/Sell	Buy
Foreign Currency Amount		$ 440
Notional Contract Value in USD	$ 355

Note 10 - Derivative Financia43

Note 10 - Derivative Financial Instruments - Average USD Fair Value Measurements for Contracts Rates (Details)	Jul. 01, 2018	Dec. 31, 2017
Average USD:CAD contract rate	18.52%	18.69%
Average USD:CAD mark-to-market rate	20.00%	20.11%
Canada, Dollars
Average USD:CAD contract rate	1.24%	1.29%
Average USD:CAD mark-to-market rate	1.31%	1.26%

Note 11 - Commitments (Details

Note 11 - Commitments (Details Textual) - USD ($) $ in Thousands	Jul. 01, 2018	Dec. 31, 2017
Purchase Obligation, Due in Next Twelve Months	$ 21,715	$ 14,394

Note 12 - Subsequent Event (Det

Note 12 - Subsequent Event (Details Textual) - Subsequent Event [Member] $ / shares in Units, $ in Millions	Jul. 23, 2018USD ($)$ / shares
Common Stock, Value, Subscriptions | $	$ 13
Common Stock, Par or Stated Value Per Share | $ / shares	$ 2.25