Koil Energy Solutions (KLNG) 10-Q 14 Nov 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2017	Nov. 14, 2017
Document And Entity Information
Entity Registrant Name	Deep Down, Inc.
Entity Central Index Key	1,110,607
Document Type	10-Q
Document Period End Date	Sep. 30, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		13,436,243
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2,017

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Current assets:
Cash	$ 5,693	$ 8,203
Short term investment (certificate of deposit)	1,015	1,005
Accounts receivable, net of allowance of $10	3,647	5,945
Costs and estimated earnings in excess of billings on uncompleted contracts	298	1,077
Prepaid expenses and other current assets	909	864
Total current assets	11,562	17,094
Property, plant and equipment, net	8,737	7,938
Intangibles, net	64	69
Long-term asset - Carousel	3,117	3,117
Other assets	326	211
Total assets	23,806	28,429
Current liabilities:
Accounts payable and accrued liabilities	1,466	1,778
Billings in excess of costs and estimated earnings on uncompleted contracts	604	3,349
Total current liabilities	2,070	5,127
Total liabilities	2,070	5,127
Commitments and contingencies (Note 8)
Stockholders' equity:
Preferred stock, $0.001 par value, 10,000,000 shares authorized, 0 shares issued and outstanding	0	0
Common stock, $0.001 par value, 24,500,000 shares authorized, 15,438,660 and 15,408,660 shares issued, respectively	15	15
Treasury stock, 2,002,417 and 587,847 shares at cost, respectively	(2,041)	(567)
Additional paid-in capital	73,213	73,112
Accumulated deficit	(49,451)	(49,258)
Total stockholders' equity	21,736	23,302
Total liabilities and stockholders' equity	$ 23,806	$ 28,429

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
ASSETS
Accounts receivable allowance	$ 10	$ 10
Stockholders' equity:
Preferred stock par value	$ .001	$ 0.001
Preferred stock shares authorized	10,000,000	10,000,000
Preferred stock shares issued	0	0
Preferred stock shares outstanding	0	0
Common stock par value	$ 0.001	$ 0.001
Common stock shares authorized	24,500,000	24,500,000
Common stock issued	15,438,660	15,408,660
Treasury stock, shares	2,002,417	587,847

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Income Statement [Abstract]
Revenues	$ 3,470	$ 9,165	$ 14,458	$ 19,489
Cost of sales:
Cost of sales	2,103	5,498	7,151	11,835
Depreciation expense	333	370	966	982
Total cost of sales	2,436	5,868	8,117	12,817
Gross profit	1,034	3,297	6,341	6,672
Operating expenses:
Selling, general and administrative	2,264	2,210	6,995	7,376
Depreciation and amortization	79	113	238	313
Total operating expenses	2,343	2,323	7,233	7,689
Operating income (loss)	(1,309)	974	(892)	(1,017)
Other income (expense):
Interest income (expense), net	21	10	46	(51)
Equity in net income of joint venture	0	0	94	0
Gain on sale of assets	559	0	574	1,070
Total other income (expense)	580	10	714	1,019
Income (loss) before income taxes	(729)	984	(178)	2
Income tax expense	(5)	(5)	(15)	(16)
Net income (loss)	$ (734)	$ 979	$ (193)	$ (14)
Net income (loss) per share:
Basic	$ (0.05)	$ 0.06	$ (0.01)	$ 0
Fully diluted	$ (0.05)	$ 0.06	$ (0.01)	$ 0
Weighted-average shares outstanding:
Basic	14,695	15,493	15,074	15,534
Fully diluted	14,695	15,493	15,074	15,534

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Cash flows from operating activities:
Net loss	$ (193)	$ (14)
Adjustments to reconcile net loss to net cash provided by operating activities:
Share-based compensation	101	309
Depreciation and amortization	1,204	1,295
Gain on sale of assets	(574)	(1,070)
Write-off of deferred financing fees	0	23
Equity in net income of joint venture	(94)	0
Changes in assets and liabilities:
Accounts receivable, net of allowance	2,298	551
Costs and estimated earnings in excess of billings on uncompleted contracts	779	(848)
Prepaid expenses and other current assets	(45)	(56)
Other assets	(161)	37
Accounts payable and accrued liabilities	(362)	217
Billings in excess of costs and estimated earnings on uncompleted contracts	(2,745)	2,209
Net cash provided by operating activities	208	2,653
Cash flows from investing activities:
Purchases of property, plant and equipment	(2,306)	(1,105)
Proceeds from sale of assets (net of $60 cash paid for costs to sell)	958	3,800
Repayments received on employee receivable	20	11
Other investing activity	(10)	0
Cash distribution received from joint venture	94	161
Net cash provided by (used in) investing activities	(1,244)	2,867
Cash flows from financing activities:
Cash paid for purchase of our common stock	(1,474)	(305)
Proceeds from bank loans	0	300
Cash paid for deferred financing costs	0	(15)
Release of compensating balance	0	3,900
Repayments of long-term debt	0	(3,047)
Net cash provided by (used in) financing activities	(1,474)	833
Change in cash	(2,510)	6,353
Cash, beginning of period	8,203	374
Cash, end of period	$ 5,693	$ 6,727

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) $ in Thousands	9 Months Ended
	Sep. 30, 2017USD ($)
Statement of Cash Flows [Abstract]
Payment of costs to sell assets	$ 60

1. BASIS OF PRESENTATION

1. BASIS OF PRESENTATION	9 Months Ended
	Sep. 30, 2017
Accounting Policies [Abstract]
BASIS OF PRESENTATION	Basis of Presentation The accompanying unaudited condensed consolidated financial statements of Deep Down, Inc. and its directly and indirectly wholly-owned subsidiaries (“Deep Down,” “we,” “us” or the “Company”) were prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC” or the “Commission”) pertaining to interim financial information and instructions to Form 10-Q. As permitted under those rules, certain footnotes or other financial information that are normally required by United States generally accepted accounting principles (“US GAAP”) can be condensed or omitted. Therefore, these statements should be read in conjunction with the audited consolidated financial statements, and notes thereto, included in our Annual Report on Form 10-K for the year ended December 31, 2016, filed on March 31, 2017 with the Commission. Preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, the disclosed amounts of contingent assets and liabilities and the reported amounts of revenues and expenses. If the underlying estimates and assumptions upon which the financial statements are based change in future periods, then the actual amounts may differ from those included in the accompanying unaudited condensed consolidated financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Principles of Consolidation The unaudited condensed consolidated financial statements presented herein include the accounts of Deep Down, Inc. and its directly and indirectly wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated. Segments For the quarters ended September 30, 2017 and 2016, we had one operating and reporting segment, Deep Down Delaware. Recently Issued Accounting Standards Not Yet Adopted In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09”). This update provides a five-step approach to be applied to all contracts with customers and requires expanded disclosures about the nature, amount, timing and uncertainty of revenue (and the related cash flows) arising from customer contracts, significant judgments and changes in judgments used in applying the revenue model and the assets recognized from costs incurred to obtain or fulfill a contract. The effective date for this standard was deferred in July 2015 and will now be effective for us beginning January 1, 2018. The standard provides for different application methods during adoption. We are currently in the process of evaluating the potential impact this new pronouncement will have on our financial statements. We are reviewing our existing contracts to identify any that may be impacted by this standard, and evaluating new contracts we are negotiating to ensure compliance with this standard. We have not completed our full evaluation and therefore cannot conclude whether the pronouncement will have a significant impact on our financial statements at this time, but we expect requirements of this standard to significantly enhance our revenue disclosures. We currently anticipate that we will utilize the modified retrospective method of adoption, however, this expectation may change following the completion of our evaluation of the impact of this pronouncement on our financial statements. In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)” (“ASU 2016-02”). The amendments in this update require, among other things, that lessees recognize the following for all leases (with the exception of short-term leases) at the commencement date: (1) a lease liability, which is a lessee's obligation to make lease payments arising from a lease, measured on a discounted basis; and (2) a right-of-use asset, which is an asset that represents the lessee's right to use, or control the use of, a specified asset for the lease term. Lessees and lessors must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The amendments are effective for us beginning January 1, 2019. We do not anticipate the adoption of ASU 2016-02 will have a material effect on our results of operations, however we are still evaluating the impact on our financial position. In October 2016, the FASB issued ASU No. 2016-16, “Intra-Entity Transfers of Assets Other Than Inventory.” This update requires that income tax consequences are recognized on an intra-entity transfer of an asset other than inventory when the transfer occurs. The amendments in this ASU are effective for us on January 1, 2018. We are currently evaluating the impact of this ASU on our consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-01, “Business Combinations.” This new ASU clarified the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The new standard is effective for us January 1, 2018 and will be applied prospectively. We are currently evaluating the impact of our pending adoption of the new standard, but do not expect it to have a material impact on our consolidated financial position or results of operations. In February 2017, the FASB issued ASU No. 2017-05, “Other Income—Gains and Losses from the Derecognition of Nonfinancial Assets” (“ASU 2017-05”). This update clarifies the scope of accounting for the derecognition or partial sale of nonfinancial assets to exclude all businesses and nonprofit activities. ASU 2017-05 also provides a definition for in-substance nonfinancial assets and additional guidance on partial sales of nonfinancial assets. We are currently evaluating the effect of ASU No. 2017-05 on our consolidated financial statements and will adopt ASU 2017-05 in conjunction with ASU 2014-09 on January 1, 2018. In May 2017, the FASB issued ASU No. 2017-09, “Scope of Modification Accounting” (“ASU 2017-09”), which amends the scope of modification accounting for share-based payment arrangements. This update clarifies when a change to the terms or conditions of a share-based payment award should be accounted for as a modification. An entity should account for the effects of a modification unless the fair value, vesting conditions and classification, as an entity instrument or a liability instrument, of the modified award are the same before and after a change to the terms or conditions of the share-based payment award. The new standard is effective for us January 1, 2018. We do not expect ASU 2017-09 to have a material impact on our consolidated financial position or results of operations.

2. BILLINGS, COSTS AND ESTIMATE

2. BILLINGS, COSTS AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS	9 Months Ended
	Sep. 30, 2017
Contractors [Abstract]
BILLINGS, COSTS AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS	The components of billings, costs and estimated earnings on uncompleted contracts are summarized below: September 30, 2017 December 31, 2016 Costs incurred on uncompleted contracts $ 8,525 $ 8,858 Estimated earnings on uncompleted contracts 9,266 6,777 17,791 15,635 Less: Billings to date on uncompleted contracts (18,097 ) (17,907 ) $ (306 ) $ (2,272 ) Included in the accompanying condensed consolidated balance sheets under the following captions: Costs and estimated earnings in excess of billings on uncompleted contracts $ 298 $ 1,077 Billings in excess of costs and estimated earnings on uncompleted contracts (604 ) (3,349 ) $ (306 ) $ (2,272 ) The balance in costs and estimated earnings in excess of billings on uncompleted contracts at September 30, 2017 and December 31, 2016 consisted primarily of earned but unbilled revenues related to fixed-price projects. The balance in billings in excess of costs and estimated earnings on uncompleted contracts at September 30, 2017 and December 31, 2016 consisted primarily of unearned billings related to fixed-price projects.

3. PROPERTY, PLANT AND EQUIPMEN

3. PROPERTY, PLANT AND EQUIPMENT	9 Months Ended
	Sep. 30, 2017
Property, Plant and Equipment [Abstract]
PROPERTY, PLANT AND EQUIPMENT	The components of net property, plant and equipment are summarized below: September 30, 2017 December 31, 2016 Range of Asset Lives Buildings and improvements 285 5 7 - 36 years Leasehold improvements 908 908 2 - 5 years Equipment 15,372 16,360 2 - 30 years Furniture, computers and office equipment 1,245 1,274 2 - 8 years Construction in progress 1,938 586 – Total property, plant and equipment 19,748 19,133 Less: Accumulated depreciation and amortization (11,011 ) (11,195 ) Property, plant and equipment, net $ 8,737 $ 7,938

4. LONG-TERM DEBT

4. LONG-TERM DEBT	9 Months Ended
	Sep. 30, 2017
Debt Disclosure [Abstract]
LONG-TERM DEBT	From 2008 through June 30, 2016, we maintained a credit facility (the “Facility”) with Whitney Bank. In March 2016, we paid all borrowings under the Facility with proceeds received from the sale of our Channelview location. Following the expiration of the Facility on June 30, 2016, we no longer have any credit facilities available to us.

5. SHARE-BASED COMPENSATION

5. SHARE-BASED COMPENSATION	9 Months Ended
	Sep. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
SHARE-BASED COMPENSATION	Share-based Compensation Plan We have a share-based compensation plan, the “2003 Directors, Officers and Consultants Stock Option, Stock Warrant and Stock Award Plan” (the “Plan”). Awards of common stock and options to purchase common stock granted under the Plan have vesting periods of three years and options are exercisable for two years once fully vested. Share-based compensation expense related to awards is based on the fair value at the date of grant, and is recognized over the requisite expected service period, net of estimated forfeitures. Under the Plan, the total number of options permitted is 15 percent of issued and outstanding common shares. Summary of Nonvested Shares of Restricted Stock On May 2, 2017, we granted 30 shares of restricted stock to an independent director. These shares have a fair value grant price of $1.15 per share, based on the closing price of our common stock on that day. These shares vest over three years in equal tranches on the grant date anniversary, subject to continued service on our Board of Directors. We are amortizing the related share-based compensation of $33 over the three-year requisite service period. For the nine months ended September 30 September 30

6. TREASURY STOCK

6. TREASURY STOCK	9 Months Ended
	Sep. 30, 2017
Equity [Abstract]
TREASURY STOCK	On May 23, 2016, our Board of Directors authorized a repurchase program (the “Repurchase Program”) under which we were originally authorized to repurchase up to $1,000 of our outstanding stock. Subsequently, on March 29, 2017, our Board of Directors authorized a renewal and extension of the Repurchase Program for an additional $1,000 until March 31, 2018. The purchases could be made from time to time in the open market, through privately negotiated transactions and Rule 10b5-1 trading plans in accordance with applicable laws, rules and regulations. The Repurchase Program was funded from cash on hand and cash provided by operating activities. As of September 30, 2017, we had exhausted the Repurchase Program. As of the date of this report no decisions have been made on any further stock repurchases. The average price per share of treasury stock through September 30, 2017 was $1.02. Treasury shares are accounted for using the cost method.

7. INCOME TAXES

7. INCOME TAXES	9 Months Ended
	Sep. 30, 2017
Income Tax Disclosure [Abstract]
INCOME TAXES	Income tax expense during interim periods is based on applying the estimated annual effective income tax rate to interim period operations. The estimated annual effective income tax rate may vary from the statutory rate due to the impact of permanent items relative to our pre-tax income, as well as by any valuation allowance recorded. We employ an asset and liability approach that results in the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial basis and the tax basis of those assets and liabilities. A valuation allowance is established when it is more likely than not that some of the deferred tax assets will not be realized. Although our future projections indicate that we may be able to realize some of these deferred tax assets, due to the degree of uncertainty of these projections, at September 30, 2017 and December 31, 2016 management has recorded a full deferred tax asset valuation allowance.

8. COMMITMENTS AND CONTINGENCIE

8. COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Sep. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	Litigation From time to time we are involved in legal proceedings arising from the normal course of business. As of the date of this Report, we were not involved in any material legal proceedings. Operating Leases We lease certain offices, facilities, equipment and vehicles under non-cancellable operating and capital leases expiring at various dates through 2023.

9. EARNINGS PER COMMON SHARE

9. EARNINGS PER COMMON SHARE	9 Months Ended
	Sep. 30, 2017
Net income (loss) per share:
EARNINGS PER COMMON SHARE	Basic earnings per share (“EPS”) is calculated by dividing net income (loss) by the weighted-average number of common shares outstanding for the period. Diluted EPS is calculated by dividing net income (loss) by the weighted-average number of common shares and dilutive common stock equivalents (warrants, nonvested stock awards and stock options) outstanding during the period. Diluted EPS reflects the potential dilution that could occur if options to purchase common stock were exercised for shares of common stock and all nonvested stock awards vest. At September 30, 2017 and 2016, there were potentially dilutive securities outstanding, but they were not taken into consideration in calculating diluted EPS because there were losses, so including them would have been anti-dilutive.

1. BASIS OF PRESENTATION (Polic

1. BASIS OF PRESENTATION (Policies)	9 Months Ended
	Sep. 30, 2017
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial statements of Deep Down, Inc. and its directly and indirectly wholly-owned subsidiaries (“Deep Down,” “we,” “us” or the “Company”) were prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC” or the “Commission”) pertaining to interim financial information and instructions to Form 10-Q. As permitted under those rules, certain footnotes or other financial information that are normally required by United States generally accepted accounting principles (“US GAAP”) can be condensed or omitted. Therefore, these statements should be read in conjunction with the audited consolidated financial statements, and notes thereto, included in our Annual Report on Form 10-K for the year ended December 31, 2016, filed on March 31, 2017 with the Commission. Preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, the disclosed amounts of contingent assets and liabilities and the reported amounts of revenues and expenses. If the underlying estimates and assumptions upon which the financial statements are based change in future periods, then the actual amounts may differ from those included in the accompanying unaudited condensed consolidated financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included.
Principles of Consolidation	Principles of Consolidation The unaudited condensed consolidated financial statements presented herein include the accounts of Deep Down, Inc. and its directly and indirectly wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated.
Segments	Segments For the quarters ended September 30, 2017 and 2016, we had one operating and reporting segment, Deep Down Delaware.
Recently Issued Adopted Accounting Standards	Recently Issued Accounting Standards Not Yet Adopted In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09”). This update provides a five-step approach to be applied to all contracts with customers and requires expanded disclosures about the nature, amount, timing and uncertainty of revenue (and the related cash flows) arising from customer contracts, significant judgments and changes in judgments used in applying the revenue model and the assets recognized from costs incurred to obtain or fulfill a contract. The effective date for this standard was deferred in July 2015 and will now be effective for us beginning January 1, 2018. The standard provides for different application methods during adoption. We are currently in the process of evaluating the potential impact this new pronouncement will have on our financial statements. We are reviewing our existing contracts to identify any that may be impacted by this standard, and evaluating new contracts we are negotiating to ensure compliance with this standard. We have not completed our full evaluation and therefore cannot conclude whether the pronouncement will have a significant impact on our financial statements at this time, but we expect requirements of this standard to significantly enhance our revenue disclosures. We currently anticipate that we will utilize the modified retrospective method of adoption, however, this expectation may change following the completion of our evaluation of the impact of this pronouncement on our financial statements. In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)” (“ASU 2016-02”). The amendments in this update require, among other things, that lessees recognize the following for all leases (with the exception of short-term leases) at the commencement date: (1) a lease liability, which is a lessee's obligation to make lease payments arising from a lease, measured on a discounted basis; and (2) a right-of-use asset, which is an asset that represents the lessee's right to use, or control the use of, a specified asset for the lease term. Lessees and lessors must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The amendments are effective for us beginning January 1, 2019. We do not anticipate the adoption of ASU 2016-02 will have a material effect on our results of operations, however we are still evaluating the impact on our financial position. In October 2016, the FASB issued ASU No. 2016-16, “Intra-Entity Transfers of Assets Other Than Inventory.” This update requires that income tax consequences are recognized on an intra-entity transfer of an asset other than inventory when the transfer occurs. The amendments in this ASU are effective for us on January 1, 2018. We are currently evaluating the impact of this ASU on our consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-01, “Business Combinations.” This new ASU clarified the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The new standard is effective for us January 1, 2018 and will be applied prospectively. We are currently evaluating the impact of our pending adoption of the new standard, but do not expect it to have a material impact on our consolidated financial position or results of operations. In February 2017, the FASB issued ASU No. 2017-05, “Other Income—Gains and Losses from the Derecognition of Nonfinancial Assets” (“ASU 2017-05”). This update clarifies the scope of accounting for the derecognition or partial sale of nonfinancial assets to exclude all businesses and nonprofit activities. ASU 2017-05 also provides a definition for in-substance nonfinancial assets and additional guidance on partial sales of nonfinancial assets. We are currently evaluating the effect of ASU No. 2017-05 on our consolidated financial statements and will adopt ASU 2017-05 in conjunction with ASU 2014-09 on January 1, 2018. In May 2017, the FASB issued ASU No. 2017-09, “Scope of Modification Accounting” (“ASU 2017-09”), which amends the scope of modification accounting for share-based payment arrangements. This update clarifies when a change to the terms or conditions of a share-based payment award should be accounted for as a modification. An entity should account for the effects of a modification unless the fair value, vesting conditions and classification, as an entity instrument or a liability instrument, of the modified award are the same before and after a change to the terms or conditions of the share-based payment award. The new standard is effective for us January 1, 2018. We do not expect ASU 2017-09 to have a material impact on our consolidated financial position or results of operations.

2. BILLINGS, COSTS AND ESTIMA17

2. BILLINGS, COSTS AND ESTIMATED EARNINGS (Tables)	9 Months Ended
	Sep. 30, 2017
Contractors [Abstract]
COSTS, ESTIMATED EARNINGS AND BILLINGS ON UNCOMPLETED CONTRACTS	September 30, 2017 December 31, 2016 Costs incurred on uncompleted contracts $ 8,525 $ 8,858 Estimated earnings on uncompleted contracts 9,266 6,777 17,791 15,635 Less: Billings to date on uncompleted contracts (18,097 ) (17,907 ) $ (306 ) $ (2,272 ) Included in the accompanying condensed consolidated balance sheets under the following captions: Costs and estimated earnings in excess of billings on uncompleted contracts $ 298 $ 1,077 Billings in excess of costs and estimated earnings on uncompleted contracts (604 ) (3,349 ) $ (306 ) $ (2,272 )

3. PROPERTY, PLANT AND EQUIPM18

3. PROPERTY, PLANT AND EQUIPMENT (Tables)	9 Months Ended
	Sep. 30, 2017
Property, Plant and Equipment [Abstract]
Property, plant and equipment	September 30, 2017 December 31, 2016 Range of Asset Lives Buildings and improvements 285 5 7 - 36 years Leasehold improvements 908 908 2 - 5 years Equipment 15,372 16,360 2 - 30 years Furniture, computers and office equipment 1,245 1,274 2 - 8 years Construction in progress 1,938 586 – Total property, plant and equipment 19,748 19,133 Less: Accumulated depreciation and amortization (11,011 ) (11,195 ) Property, plant and equipment, net $ 8,737 $ 7,938

2. BILLINGS, COSTS AND ESTIMA19

2. BILLINGS, COSTS AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Billings In Excess Of Costs And Estimated Earnings On Uncompleted Contracts And Deferred Revenues
Costs incurred on uncompleted contracts	$ 8,525	$ 8,858
Estimated earnings on uncompleted contracts	9,266	6,777
Gross costs and estimated earnings	17,791	15,635
Less: Billings to date on uncompleted contracts	(18,097)	(17,907)
Costs incurred plus estimated earning less billings on uncompleted contracts, net	(306)	(2,272)
Included in the accompanying condensed consolidated balance sheets under the following captions:
Costs and estimated earnings in excess of billings on uncompleted contracts	298	1,077
Billings in excess of costs and estimated earnings on uncompleted contracts	(604)	(3,349)
Total costs and estimated earnings and billings in excess of cost on uncompleted contracts	$ (306)	$ (2,272)

3. PROPERTY, PLANT AND EQUIPM20

3. PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Total property, plant and equipment	$ 19,748	$ 19,133
Less: Accumulated depreciation and amortization	(11,011)	(11,195)
Property, plant and equipment,net	8,737	7,938
Buildings and improvements
Total property, plant and equipment	$ 285	5
Range of Asset lives	7-36 years
Leasehold Improvements
Total property, plant and equipment	$ 908	908
Range of Asset lives	2-5 years
Equipment
Total property, plant and equipment	$ 15,372	16,360
Range of Asset lives	2-30 years
Furniture, computers and office equipment
Total property, plant and equipment	$ 1,245	1,274
Range of Asset lives	2-8 years
Construction in Progress
Total property, plant and equipment	$ 1,938	$ 586

5. SHARE-BASED COMPENSATION (De

5. SHARE-BASED COMPENSATION (Details Narrative) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Share-based compensation	$ 101	$ 309
Stock grants during period	30
Unamortized estimated fair value of non-vested stock options	$ 73
Weighted average period of unamortized fair value	3 months 19 days

6. TREASURY STOCK (Details Narr

6. TREASURY STOCK (Details Narrative)	16 Months Ended
	Sep. 30, 2017$ / shares
Equity [Abstract]
Average price per share of treasury stock	$ 1.02

9. EARNINGS PER COMMON SHARE (D

9. EARNINGS PER COMMON SHARE (Details Narrative) - shares	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Net income (loss) per share:
Potentially dilutive securities	0	0