Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2021 | Nov. 11, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2021 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2021 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 000-30351 | |
Entity Registrant Name | DEEP DOWN, INC. | |
Entity Central Index Key | 0001110607 | |
Entity Tax Identification Number | 75-2263732 | |
Entity Incorporation, State or Country Code | NV | |
Entity Address, Address Line One | 18511 Beaumont Highway | |
Entity Address, City or Town | Houston | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 77049 | |
City Area Code | (281) | |
Local Phone Number | 517-5000 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 12,388,865 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash | $ 3,708 | $ 3,745 |
Accounts receivable, net of allowance of $618 and $84, respectively | 5,094 | 4,650 |
Inventory | 254 | 187 |
Contract assets | 92 | 189 |
Prepaid expenses and other current assets | 91 | 151 |
Total current assets | 9,239 | 8,922 |
Property, plant and equipment, net | 1,853 | 2,604 |
Intangibles, net | 39 | 44 |
Right-of-use operating lease assets | 2,180 | 3,174 |
Other assets | 198 | 195 |
Total assets | 13,509 | 14,939 |
Current liabilities: | ||
Accounts payable and accrued expenses | 1,667 | 1,988 |
Contract liabilities | 478 | 730 |
Current portion of PPP loan payable | 0 | 863 |
Current lease liabilities | 1,298 | 1,261 |
Total current liabilities | 3,443 | 4,842 |
PPP loan payable | 0 | 248 |
Operating lease liability, long-term | 918 | 1,951 |
Total liabilities | 4,361 | 7,041 |
Stockholders' equity: | ||
Common stock, $0.001 par value, 24,500,000 shares authorized and 15,756,010 issued | 16 | 16 |
Additional paid-in capital | 73,684 | 73,638 |
Treasury stock, 3,517,145 shares, at cost | (2,809) | (2,809) |
Accumulated deficit | (61,743) | (62,947) |
Total stockholders' equity | 9,148 | 7,898 |
Total liabilities and stockholders' equity | $ 13,509 | $ 14,939 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Accounts receivable allowance | $ 618 | $ 84 |
Common stock par value | $ 0.001 | $ 0.001 |
Common stock shares authorized | 24,500,000 | 24,500,000 |
Common stock issued | 15,756,010 | 15,756,010 |
Common stock outstanding | 15,756,010 | 15,756,010 |
Treasury stock shares | 3,517,145 | 3,517,145 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Statement [Abstract] | ||||
Revenues | $ 3,550 | $ 3,136 | $ 12,000 | $ 9,466 |
Cost of sales: | ||||
Cost of sales | 2,569 | 1,794 | 7,518 | 5,252 |
Depreciation expense | 144 | 174 | 511 | 656 |
Total cost of sales | 2,713 | 1,968 | 8,029 | 5,908 |
Gross profit | 837 | 1,168 | 3,971 | 3,558 |
Operating expenses: | ||||
Selling, general and administrative | 1,336 | 1,351 | 4,623 | 5,049 |
Depreciation and amortization | 65 | 65 | 220 | 187 |
Asset impairment | 0 | 0 | 0 | 4,490 |
Total operating expenses | 1,401 | 1,416 | 4,843 | 9,726 |
Operating loss | (564) | (248) | (872) | (6,168) |
Other (income) expense: | ||||
Interest expense, net | 1 | 2 | 8 | 4 |
Other income, net | (1,050) | 0 | (2,193) | 0 |
Loss on sale of property, plant and equipment | 148 | 0 | 94 | 0 |
Total other (income) expense | (901) | 2 | (2,091) | 4 |
Income (loss) before income tax expense | 337 | (250) | 1,219 | (6,172) |
Income tax expense | 5 | 0 | 15 | 5 |
Net income (loss) | $ 332 | $ (250) | $ 1,204 | $ (6,177) |
Net income (loss) per share: | ||||
Basic | $ 0.03 | $ (0.02) | $ 0.10 | $ (0.49) |
Fully diluted | $ 0.03 | $ (0.02) | $ 0.10 | $ (0.49) |
Weighted-average shares outstanding: | ||||
Basic | 12,389 | 12,390 | 12,389 | 12,531 |
Fully diluted | 12,445 | 12,390 | 12,441 | 12,531 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Retained Earnings [Member] | Total |
Beginning balance, value at Dec. 31, 2019 | $ 16 | $ 73,521 | $ (2,284) | $ (56,890) | $ 14,363 |
Balance at beginning, shares at Dec. 31, 2019 | 15,906 | ||||
Net income | (637) | (637) | |||
Treasury shares purchased | (524) | (524) | |||
Share-based compensation | 50 | 50 | |||
Ending balance, value at Mar. 31, 2020 | $ 16 | 73,571 | (2,808) | (57,527) | 13,252 |
Balance at ending, shares at Mar. 31, 2020 | 15,906 | ||||
Beginning balance, value at Dec. 31, 2019 | $ 16 | 73,521 | (2,284) | (56,890) | 14,363 |
Balance at beginning, shares at Dec. 31, 2019 | 15,906 | ||||
Net income | (6,177) | ||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | (6,172) | ||||
Ending balance, value at Sep. 30, 2020 | $ 16 | 73,634 | (2,809) | (63,067) | 7,774 |
Balance at ending, shares at Sep. 30, 2020 | 15,756 | ||||
Beginning balance, value at Mar. 31, 2020 | $ 16 | 73,571 | (2,808) | (57,527) | 13,252 |
Balance at beginning, shares at Mar. 31, 2020 | 15,906 | ||||
Net income | (5,290) | (5,290) | |||
Share-based compensation | 24 | 24 | |||
Ending balance, value at Jun. 30, 2020 | 16 | 73,595 | (2,808) | (62,817) | 7,986 |
Restricted stock awards forfeited | |||||
Balance at ending, shares at Jun. 30, 2020 | 15,756 | ||||
Restricted stock awards forfeited, shares | (150) | ||||
Net income | (250) | (250) | |||
Treasury shares purchased | (1) | (1) | |||
Share-based compensation | 39 | 39 | |||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | (250) | ||||
Ending balance, value at Sep. 30, 2020 | $ 16 | 73,634 | (2,809) | (63,067) | 7,774 |
Balance at ending, shares at Sep. 30, 2020 | 15,756 | ||||
Beginning balance, value at Dec. 31, 2020 | $ 16 | 73,638 | (2,809) | (62,947) | 7,898 |
Balance at beginning, shares at Dec. 31, 2020 | 15,756 | ||||
Net income | 148 | 148 | |||
Share-based compensation | 20 | 20 | |||
Ending balance, value at Mar. 31, 2021 | $ 16 | 73,658 | (2,809) | (62,799) | 8,066 |
Balance at ending, shares at Mar. 31, 2021 | 15,756 | ||||
Beginning balance, value at Dec. 31, 2020 | $ 16 | 73,638 | (2,809) | (62,947) | 7,898 |
Balance at beginning, shares at Dec. 31, 2020 | 15,756 | ||||
Net income | 1,204 | ||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 1,219 | ||||
Ending balance, value at Sep. 30, 2021 | $ 16 | 73,684 | (2,809) | (61,743) | 9,148 |
Balance at ending, shares at Sep. 30, 2021 | 15,756 | ||||
Beginning balance, value at Mar. 31, 2021 | $ 16 | 73,658 | (2,809) | (62,799) | 8,066 |
Balance at beginning, shares at Mar. 31, 2021 | 15,756 | ||||
Net income | 724 | 724 | |||
Share-based compensation | 17 | 17 | |||
Ending balance, value at Jun. 30, 2021 | $ 16 | 73,675 | (2,809) | (62,075) | 8,807 |
Balance at ending, shares at Jun. 30, 2021 | 15,756 | ||||
Net income | 332 | 332 | |||
Share-based compensation | 9 | 9 | |||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 337 | ||||
Ending balance, value at Sep. 30, 2021 | $ 16 | $ 73,684 | $ (2,809) | $ (61,743) | $ 9,148 |
Balance at ending, shares at Sep. 30, 2021 | 15,756 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 1,204 | $ (6,177) |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||
Share-based compensation | 46 | 113 |
Depreciation and amortization | 731 | 843 |
Loss on sale of property, plant and equipment | 94 | 0 |
Bad debt expense | 534 | 426 |
Non-cash lease expense | (1) | 10 |
Forgiveness of PPP loan | (2,222) | 0 |
Loss on asset impairment | 0 | 4,490 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | (943) | 126 |
Contract assets | 97 | 539 |
Inventories | (67) | 0 |
Prepaid expenses and other current assets | 50 | 45 |
Other assets | (3) | (136) |
Accounts payable and accrued expenses | (321) | (60) |
Contract liabilities | (252) | (175) |
Net cash (used in) provided by operating activities | (1,053) | 44 |
Cash flows from investing activities: | ||
Proceeds from sale of property, plant and equipment | 171 | 0 |
Purchases of property, plant and equipment | (275) | (118) |
Payments received on note receivable (included in Prepaid expenses and other current assets) | 9 | 10 |
Net cash used in investing activities | (95) | (108) |
Cash flows from financing activities: | ||
Proceeds from PPP loan | 1,111 | 1,111 |
Repurchase of common shares | 0 | (525) |
Net cash provided by financing activities | 1,111 | 586 |
Change in cash | (37) | 522 |
Cash, beginning of period | 3,745 | 3,523 |
Cash, end of period | $ 3,708 | $ 4,045 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION | NOTE 1: BASIS OF PRESENTATION Basis of Presentation Unless otherwise indicated, the terms “Deep Down, Inc.”, “Deep Down”, “Company”, “we”, “our” and “us” are used in this Report to refer to Deep Down, Inc., a Nevada corporation (“Deep Down Nevada”), and its directly wholly owned subsidiary, Deep Down, Inc., a Delaware corporation (“Deep Down Delaware”). The accompanying unaudited condensed consolidated financial statements of Deep Down, Inc. 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 notes 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, 2020. Preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and 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. Liquidity The Company’s cash on hand was $ 3,708 5,796 3,745 4,080 The Company believes it will have adequate liquidity to meet its future operating requirements through a combination of cash on hand, cash expected to be generated from operations, and potential opportunistic sales of PP&E in addition to pursuing a disciplined approach to making capital investments. However, given the volatility in oil prices and the impact on global economic activity caused by the COVID-19 pandemic, as well as recent increases in raw materials costs and ongoing supply chain constraints, the Company cannot predict this with certainty. To mitigate this uncertainty and preserve liquidity, the Company will continue to pursue opportunistic cost containment initiatives, which can include workforce alignment, limiting overhead spending and research and development efforts to only critical items, and actively pursuing further cost reduction opportunities as they become available. Principles of Consolidation The unaudited condensed consolidated financial statements presented herein include the accounts of Deep Down, Inc. and its wholly owned subsidiary. All intercompany transactions and balances have been eliminated. Segments For the three and nine months ended September 30, 2021 and 2020, we had one 1 |
LEASES
LEASES | 9 Months Ended |
Sep. 30, 2021 | |
Leases | |
LEASES | NOTE 2: LEASES In February 2016, the Financial Accounting Standards Board issued ASU 2016-02, Leases (“ASC Topic 842”). Under this guidance, lessees are required to recognize on the balance sheet a lease liability and a right-of-use (“ROU”) asset for all leases, except for short-term leases with terms of twelve months or less. The lease liability represents the lessee’s obligation to make lease payments arising from a lease and is initially measured as the present value of the lease payments. The ROU asset represents the lessee’s right to use a specified asset for the lease term, and is measured at the lease liability amount, adjusted for lease prepayment, lease incentives received and the lessee’s initial direct costs. ASC Topic 842 provides for certain practical expedients when adopting the guidance. The Company elected the package of practical expedients allowing the Company, for all leases that commenced prior to the adoption date, to not reassess whether any expired or existing contracts are, or contain, leases, the lease classification for any expired or existing leases, or initial direct costs for any expired or existing leases. The Company utilizes the land easements practical expedient allowing the Company to not assess whether any expired or existing land easements are, or contain, leases if they were not previously accounted for as leases under the then-existing leasing guidance. Instead, the Company will continue to apply its existing accounting policies to historical land easements. The Company elects to apply the short-term lease exception; therefore, the Company will not record an ROU asset or corresponding lease liability for leases with an initial term of twelve months or less that are not reasonably certain of being renewed and instead will recognize a single lease cost allocated over the lease term, generally on a straight-line basis. The Company elects to apply the practical expedient to not separate lease components from non-lease components and instead account for both as a single lease component for all asset classes. The Company elects to not capitalize any lease in which the estimated value of the underlying asset at the commencement date is less than the Company’s capitalization threshold. A lease would need to qualify for the low value exception based on various criteria. ROU assets and lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term and include options to extend or terminate the lease when they are reasonably certain to be exercised. The present value of lease payments is determined primarily using the incremental borrowing rate based on the information available at the lease commencement date. Lease agreements with lease and non-lease components are generally accounted for as a single lease component. The Company’s operating lease expense is recognized on a straight-line basis over the lease term and a portion is recorded in cost of sales, and the remainder is recorded in selling, general and administrative expenses. The accounting for some leases may require significant judgment, which includes determining whether a contract contains a lease, determining the incremental borrowing rate to utilize in our net present value calculation of lease payments for lease agreements which do not provide an implicit rate, and assessing the likelihood of renewal or termination options. As of September 30, 2021, we do not have any finance lease assets or liabilities, nor do we have any subleases. The following tables present information about our operating leases: Operating lease right to use September 30, 2021 December 31, 2020 (In thousands) Assets: Right-of-use assets $ 2,180 $ 3,174 Liabilities: Current lease liabilities 1,298 1,261 Non-current lease liabilities 918 1,951 Total lease liabilities $ 2,216 $ 3,212 The components of our lease expense were as follows: Components of lease expense Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Operating lease expense included in cost of sales $ 313 $ 271 $ 946 $ 659 Operating lease expense included in selling, general and administrative 35 26 143 100 Short term lease expense 97 37 210 124 Total lease expense $ 445 $ 334 $ 1,299 $ 883 Lease term and discount rate: Lease term and discount rate September 30, 2021 December 31, 2020 Weighted-average remaining lease terms on operating leases (yrs.) 1.71 2.43 Weighted-average discount rates on operating leases 5.374 5.374 During the three months ended September 30, 2021, the Company did not have any sale/leaseback transactions. Present value of lease liabilities: Future minimum lease payments Operating Leases October 1, 2021 - September 30, 2022 $ 1,380 October 1, 2022 - September 30, 2023 919 October 1, 2023 - September 30, 2024 8 October 1, 2024 - September 30, 2025 7 Total lease payments $ 2,314 Less: Interest (98 ) Present value of lease liabilities $ 2,216 |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 9 Months Ended |
Sep. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | NOTE 3: REVENUE FROM CONTRACTS WITH CUSTOMERS Revenues are recognized when control of the promised goods or services is transferred to our customers in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. To determine the proper revenue recognition method for our customer contracts, we evaluate whether two or more contracts should be combined and accounted for as one single contract and whether the combined or single contract should be accounted for as more than one performance obligation. This evaluation requires significant judgment and the decision to combine a group of contracts or separate the combined or single contract into multiple performance obligations could change the amount of revenue and profit recorded in each period. For most of our fixed price contracts, the customer contracts with us to provide a significant service of integrating a complex set of tasks and components into a single project or capability even if that single project results in the delivery of multiple units. Hence, the entire contract is accounted for as one performance obligation. We account for a contract when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable. Disaggregation of Revenue The following table presents the Company’s revenues disaggregated by fixed price and service contracts. Sales taxes are excluded from revenues. Disaggregation of Revenue - Contract Revenue Three Months Ended September 30, 2021 2020 Fixed Price Contracts $ 1,866 $ 2,522 Service Contracts 1,684 614 Total $ 3,550 $ 3,136 Nine Months Ended September 30, 2021 2020 Fixed Price Contracts $ 5,170 $ 6,338 Service Contracts 6,830 3,128 Total $ 12,000 $ 9,466 Fixed price contracts For fixed price contracts, we generally recognize revenue over time as we perform because of continuous transfer of control to the customer. This continuous transfer of control to the customer is supported by clauses in the contract that allow the customer to unilaterally terminate the contract for convenience, pay us for costs incurred plus a reasonable profit and take control of any work in process. In our fixed price contracts, the customer either controls the work in process or we deliver products with no alternative use to the Company and have rights to payment for work performed to date plus a reasonable profit as evidenced by contractual termination clauses. Because of control transferring over time, revenue is recognized based on the extent of progress towards completion of the performance obligation. The selection of the method to measure progress towards completion requires judgment and is based on the nature of the products or services to be provided. We generally use the cost-to-cost measure of progress for our contracts because it best depicts the transfer of control to the customer which occurs as we incur costs on our contracts. Under the cost-to-cost measure of progress, the extent of progress towards completion is measured based on the ratio of costs incurred to date to the total estimated costs at completion of the performance obligation. Revenues, including estimated fees or profits, are recorded proportionally as costs are incurred. Contracts are often modified to account for changes in contract specifications and requirements. We consider contract modifications to exist when the modification either creates new, or changes the existing, enforceable rights and obligations. Most of our contract modifications are for goods or services that are not distinct from the existing contract due to the significant integration service provided in the context of the contract and are accounted for as if they were part of that existing contract. The effect of a contract modification on the transaction price, and our measure of progress for the performance obligation to which it relates, is recognized as an adjustment to revenue (either as an increase in or a reduction of revenue) on a cumulative catch-up basis. We have a company-wide standard and disciplined quarterly estimate at completion process in which management reviews the progress and execution of our performance obligations. As part of this process, management reviews information including, but not limited to, any outstanding key contract matters, progress towards completion and the related program schedule, identified risks and opportunities and the related changes in estimates of revenues and costs. Changes in estimates of net sales, cost of sales and the related impact to operating income are recognized quarterly on a cumulative catch-up basis, which recognizes in the current period the cumulative effect of the changes on current and prior periods based on a performance obligation’s percentage of completion. A significant change in one or more of these estimates could affect the profitability of one or more of our performance obligations. When estimates of total costs to be incurred exceed total estimates of revenue to be earned on a performance obligation related to fixed price contracts, a provision for the entire loss on the performance obligation is recognized in the period the loss is estimated. Service Contracts We recognize revenue for service contracts measuring progress toward satisfying the performance obligation in a manner that best depicts the transfer of goods or services to the customer. The control over services is transferred over time when the services are rendered to the customer on a daily basis. Specifically, we recognize revenue as the services are provided as we have the right to invoice the customer for the services performed. Services are invoiced and are payable on a monthly basis. Payment terms for services are usually 30 days from invoice receipt. Contract balances Costs and estimated earnings in excess of billings on uncompleted contracts arise when revenues are recorded based on the extent of progress towards completion but cannot be invoiced under the terms of the contract. Such amounts are invoiced upon completion of contractual milestones. Billings in excess of costs and estimated earnings on uncompleted contracts arise when milestone billings are permissible under the contract, but the related costs have not yet been incurred. All contract costs are recognized currently on jobs formally approved by the customer and contracts are not shown as complete until virtually all anticipated costs have been incurred and the risk of loss has passed to the customer. Assets related to costs and estimated earnings in excess of billings on uncompleted contracts, as well as liabilities related to billings in excess of costs and estimated earnings on uncompleted contracts, have been classified as current. The contract cycle for certain long-term contracts may extend beyond one year; thus, complete collection of amounts related to these contracts may extend beyond one year though such long-term contracts include contractual milestone billings as discussed above. At September 30, 2021 and December 31, 2020, there were no contracts with terms that extended beyond one year. The following table summarizes our contract assets, which are “Costs and estimated earnings in excess of billings on uncompleted contracts” and our contract liabilities, which are “Billings in excess of costs and estimated earnings on uncompleted contracts”. Schedule of earnings in excess of billings on uncompleted contracts September 30, 2021 December 31, 2020 Costs incurred on uncompleted contracts $ 3,174 $ 2,098 Estimated earnings on uncompleted contracts 4,216 3,153 Gross costs and estimated earnings 7,390 5,251 Less: Billings to date on uncompleted contracts (7,776 ) (5,792 ) Costs incurred plus estimated earning less billings on uncompleted contracts $ (386 ) $ (541 ) Included in the accompanying unaudited condensed consolidated balance sheets under the following captions: Contract assets $ 92 $ 189 Contract liabilities (478 ) (730 ) Costs incurred plus estimated earning less billings on uncompleted contracts $ (386 ) $ (541 ) The contract asset and liability balances at September 30, 2021 and December 31, 2020 consisted primarily of revenue related to fixed-price projects. Remaining Performance Obligations Remaining performance obligations represent the transaction price of firm orders for which work has not been performed and excludes unexercised contract options, potential orders, and any remaining performance obligations for any sales arrangements that had not fully satisfied the criteria to be considered a contract with a customer pursuant to the requirements of ASC 606. Practical Expedients and Exemptions We generally expense sales commissions when incurred because the amortization period would have been one year or less. These costs are recorded within selling, general and administrative expenses. Many of our services contracts are short-term in nature with a contract term of one year or less. For those contracts, we have utilized the practical expedient in ASC 606-10-50-14 exempting the Company from disclosure of the transaction price allocated to remaining performance obligations if the performance obligation is part of a contract that has an original expected duration of one year or less. Additionally, our payment terms are short-term in nature with settlements of one year or less. We have, therefore, utilized the practical expedient in ASC 606-10-32-18 exempting the Company from adjusting the promised amount of consideration for the effects of a significant financing component given that the period between when the Company transfers a promised good or service to a customer and when the customer pays for that good or service is expected to be one year or less. Further, in many of our service contracts, we have a right to consideration from a customer in an amount that corresponds directly with the value to the customer of our performance completed to date (for example, a service contract in which we bill a fixed amount for each hour of service provided). For those contracts, we have utilized the practical expedient in ASC 606-10-55-18, which allows us to recognize revenue in the amount for which we have the right to invoice. Accordingly, we do not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed. |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 9 Months Ended |
Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | NOTE 4: PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment consisted of the following: Schedule of property, plant and equipment Range of September 30, 2021 December 31, 2020 Asset Lives Buildings and improvements $ 285 $ 285 7 - 36 years Leasehold improvements 906 906 2 - 5 years Equipment 11,833 12,343 2 - 30 years Furniture, computers and office equipment 907 907 2 - 8 years Construction in progress 74 84 – Total property, plant and equipment 14,005 14,525 Less: Accumulated depreciation and amortization (12,152 ) (11,921 ) Property, plant and equipment, net $ 1,853 $ 2,604 |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
SHARE-BASED COMPENSATION | NOTE 5: SHARE-BASED COMPENSATION Share-based compensation is included in selling, general and administrative expenses in the accompanying unaudited condensed consolidated statements of operations and additional paid-in capital in the accompanying unaudited consolidated balance sheets. During the three and nine months ended September 30, 2021, the Company recognized a total of $ 9 46 39 113 2 48 0.31 |
TREASURY STOCK
TREASURY STOCK | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
TREASURY STOCK | NOTE 6: TREASURY STOCK On December 23, 2019, the Board authorized the repurchase of up to 500 shares of the Company’s outstanding common stock (the “Repurchase Program”). The Repurchase Program was funded from cash on hand and cash provided by operating activities. The Board separately authorized the repurchase of additional shares during the three months ended March 31, 2020, in a privately negotiated transaction. During the three months ended March 31, 2020, 744 524 |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 7: 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. At September 30, 2021 and December 31, 2020, management has recorded a full deferred tax asset valuation allowance. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 8: COMMITMENTS AND CONTINGENCIES Letters of Credit Certain customers could require us to issue standby letters of credit in the normal course of business to ensure performance under terms of contracts or as a form of product warranty. The beneficiary of a letter of credit could demand payment from the issuing bank for the amount of the outstanding letter of credit. We had no Employment Agreement Our Chief Executive Officer is employed under an employment agreement containing severance provisions. In the event of termination of the CEO’s employment for any reason, the CEO will be entitled to receive all accrued, unpaid salary and vacation time through the date of termination and all benefits to which the CEO is entitled or vested under the terms of all employee benefit and compensation plans, agreements, and arrangements in which the CEO participants as of the date of termination. In addition, subject to executing a general release in favor of the Company, the CEO will be entitled to receive certain severance payments in the event his employment is terminated by the Company “other than for cause” or by the CEO with “good reason.” These severance payments include: (i) a lump sum in cash equal to one to two times the CEO’s annual base salary; (ii) a lump sum in cash equal to one to two times the average annual bonus paid to the CEO for the prior two full fiscal years preceding the date of termination; (iii) a lump sum in cash equal to a pro rata portion of the annual bonus payable for the period in which the date of termination occurs based on the actual performance under the Company’s annual incentive bonus arrangement, but no less than fifty percent of the CEO’s annual base salary; and (iv) if the CEO’s termination occurs prior to the date that is twelve months following a change of control, then each and every share option, restricted share award and other equity-based award that is outstanding and held by the CEO shall immediately vest and become exercisable. On April 1, 2020, the Company eliminated the position of Chief Operating Officer (“COO”) and relieved the COO of his duties pursuant to the terms of his employment agreement. In addition to payment of accrued and unpaid salary, vacation time, and other benefits referred to above, the Company made payments to the former COO equal to one time his contractual annual base salary of $ 245 Litigation From time to time, the Company is party to various legal proceedings arising in the ordinary course of business. The Company expenses or accrues legal costs as incurred and is involved in only one material legal proceeding as of the date of this Report. In November 2011, the Company delivered equipment to Aker Solutions, Inc. (“Aker”), but Aker declined to pay the final invoice in the aggregate amount of $270 alleging some warranty items needed to be repaired. The Company made repairs, but Aker continued to claim further work was required. The Company repeatedly attempted to collect the receivable and ultimately filed suit on November 16, 2012, in the Harris County District Court. Aker subsequently filed a counterclaim on March 20, 2013 in the aggregate amount of $1,000 for reimbursement of insurance payments allegedly made for repairs. The parties have not reached a resolution on this matter. At this point, it is not clear as to whether an unfavorable outcome is either probable or remote, and the Company is unable to determine the likelihood of an unfavorable outcome or the amount or range of potential loss if the outcome should be unfavorable. On August 6, 2018, GE Oil and Gas UK Ltd. (“GE”) requested that the Company mediate a dispute between the parties in the ICC International Centre for ADR (“ICC”). The dispute involved alleged delays and defects in products manufactured by the Company for GE dating back to 2013. During the second quarter of 2020, the parties finalized the terms of a definitive settlement agreement which is now final and binding. Per the terms of the settlement, the Company shall pay GE $ 750 750 90 |
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE | 9 Months Ended |
Sep. 30, 2021 | |
Net income (loss) per share: | |
EARNINGS PER COMMON SHARE | NOTE 9: 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 the dilutive effect of common stock equivalents (warrants, nonvested stock awards and stock options) using the treasury method. In each relevant period, the net income used in the basic and diluted EPS calculations is the same. The following table reconciles the weighted-average basic number of common shares outstanding and the weighted-average diluted number of common shares deemed outstanding for the purpose of calculating basic and diluted EPS. Reconciliation of number of shares in earnings per share calculation Three months ended Nine months ended September 30, September 30, 2021 2020 2021 2020 Weighted average common shares outstanding - basic 12,389 12,390 12,389 12,531 Dilutive effect of common stock equivalents 56 – 52 – Weighted average common shares outstanding - diluted 12,445 12,390 12,441 12,531 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended |
Sep. 30, 2021 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 10: RELATED PARTY TRANSACTIONS On August 15, 2019, Mr. Ronald E. Smith, the Company's Founder, resigned as Chief Executive Officer and as a member of the Board, effective as of August 31, 2019. In connection with Mr. Smith's resignation, the Company and Mr. Smith entered into a Transition Agreement, effective as of September 1, 2019 (the “Transition Agreement”). The Transition Agreement provides for Mr. Smith to serve as an independent consultant to the Company from September 1, 2019 through December 31, 2021. The Company agreed to pay Mr. Smith $ 42 15 45 135 In addition to the other payments provided for under the Transition Agreement, the Company also agreed to pay Mr. Smith 1.5% of the net sale or lease value of two carousels owned by Company, if such sale or lease occurs prior to December 31, 2021, unless those assets are sold or leased in conjunction with a sale of all or substantially all the assets or stock of Deep Down. As part of the Transition Agreement, Mr. Smith is bound by certain non-disclosure and confidentiality provisions, and a non-compete and non-hire agreement. |
SMALL BUSINESS ADMINISTRATION_S
SMALL BUSINESS ADMINISTRATION’S PAYCHECK PROTECTION PROGRAM LOAN | 9 Months Ended |
Sep. 30, 2021 | |
Small Business Administrations Paycheck Protection Program Loan | |
SMALL BUSINESS ADMINISTRATION’S PAYCHECK PROTECTION PROGRAM LOAN | NOTE 11. SMALL BUSINESS ADMINISTRATION’S PAYCHECK PROTECTION PROGRAM LOAN The Company obtained a $ 1,111 1,111 The Company obtained a second $ 1,111 1,111 |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation Unless otherwise indicated, the terms “Deep Down, Inc.”, “Deep Down”, “Company”, “we”, “our” and “us” are used in this Report to refer to Deep Down, Inc., a Nevada corporation (“Deep Down Nevada”), and its directly wholly owned subsidiary, Deep Down, Inc., a Delaware corporation (“Deep Down Delaware”). The accompanying unaudited condensed consolidated financial statements of Deep Down, Inc. 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 notes 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, 2020. Preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and 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. |
Liquidity | Liquidity The Company’s cash on hand was $ 3,708 5,796 3,745 4,080 The Company believes it will have adequate liquidity to meet its future operating requirements through a combination of cash on hand, cash expected to be generated from operations, and potential opportunistic sales of PP&E in addition to pursuing a disciplined approach to making capital investments. However, given the volatility in oil prices and the impact on global economic activity caused by the COVID-19 pandemic, as well as recent increases in raw materials costs and ongoing supply chain constraints, the Company cannot predict this with certainty. To mitigate this uncertainty and preserve liquidity, the Company will continue to pursue opportunistic cost containment initiatives, which can include workforce alignment, limiting overhead spending and research and development efforts to only critical items, and actively pursuing further cost reduction opportunities as they become available. |
Principles of Consolidation | Principles of Consolidation The unaudited condensed consolidated financial statements presented herein include the accounts of Deep Down, Inc. and its wholly owned subsidiary. All intercompany transactions and balances have been eliminated. |
Segments | Segments For the three and nine months ended September 30, 2021 and 2020, we had one 1 |
LEASES (Tables)
LEASES (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Leases | |
Operating lease right to use | Operating lease right to use September 30, 2021 December 31, 2020 (In thousands) Assets: Right-of-use assets $ 2,180 $ 3,174 Liabilities: Current lease liabilities 1,298 1,261 Non-current lease liabilities 918 1,951 Total lease liabilities $ 2,216 $ 3,212 |
Components of lease expense | Components of lease expense Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Operating lease expense included in cost of sales $ 313 $ 271 $ 946 $ 659 Operating lease expense included in selling, general and administrative 35 26 143 100 Short term lease expense 97 37 210 124 Total lease expense $ 445 $ 334 $ 1,299 $ 883 |
Lease term and discount rate | Lease term and discount rate September 30, 2021 December 31, 2020 Weighted-average remaining lease terms on operating leases (yrs.) 1.71 2.43 Weighted-average discount rates on operating leases 5.374 5.374 |
Future minimum lease payments | Future minimum lease payments Operating Leases October 1, 2021 - September 30, 2022 $ 1,380 October 1, 2022 - September 30, 2023 919 October 1, 2023 - September 30, 2024 8 October 1, 2024 - September 30, 2025 7 Total lease payments $ 2,314 Less: Interest (98 ) Present value of lease liabilities $ 2,216 |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue - Contract Revenue | Disaggregation of Revenue - Contract Revenue Three Months Ended September 30, 2021 2020 Fixed Price Contracts $ 1,866 $ 2,522 Service Contracts 1,684 614 Total $ 3,550 $ 3,136 Nine Months Ended September 30, 2021 2020 Fixed Price Contracts $ 5,170 $ 6,338 Service Contracts 6,830 3,128 Total $ 12,000 $ 9,466 |
Schedule of earnings in excess of billings on uncompleted contracts | Schedule of earnings in excess of billings on uncompleted contracts September 30, 2021 December 31, 2020 Costs incurred on uncompleted contracts $ 3,174 $ 2,098 Estimated earnings on uncompleted contracts 4,216 3,153 Gross costs and estimated earnings 7,390 5,251 Less: Billings to date on uncompleted contracts (7,776 ) (5,792 ) Costs incurred plus estimated earning less billings on uncompleted contracts $ (386 ) $ (541 ) Included in the accompanying unaudited condensed consolidated balance sheets under the following captions: Contract assets $ 92 $ 189 Contract liabilities (478 ) (730 ) Costs incurred plus estimated earning less billings on uncompleted contracts $ (386 ) $ (541 ) |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, plant and equipment | Schedule of property, plant and equipment Range of September 30, 2021 December 31, 2020 Asset Lives Buildings and improvements $ 285 $ 285 7 - 36 years Leasehold improvements 906 906 2 - 5 years Equipment 11,833 12,343 2 - 30 years Furniture, computers and office equipment 907 907 2 - 8 years Construction in progress 74 84 – Total property, plant and equipment 14,005 14,525 Less: Accumulated depreciation and amortization (12,152 ) (11,921 ) Property, plant and equipment, net $ 1,853 $ 2,604 |
EARNINGS PER COMMON SHARE (Tabl
EARNINGS PER COMMON SHARE (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Net income (loss) per share: | |
Reconciliation of number of shares in earnings per share calculation | Reconciliation of number of shares in earnings per share calculation Three months ended Nine months ended September 30, September 30, 2021 2020 2021 2020 Weighted average common shares outstanding - basic 12,389 12,390 12,389 12,531 Dilutive effect of common stock equivalents 56 – 52 – Weighted average common shares outstanding - diluted 12,445 12,390 12,441 12,531 |
BASIS OF PRESENTATION (Details
BASIS OF PRESENTATION (Details Narrative) $ in Thousands | 9 Months Ended | |||
Sep. 30, 2021USD ($)Integer | Sep. 30, 2020USD ($)Integer | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Accounting Policies [Abstract] | ||||
Cash | $ | $ 3,708 | $ 4,045 | $ 3,745 | $ 3,523 |
Working capital | $ | $ 5,796 | $ 4,080 | ||
Number of reportable segments | Integer | 1 | 1 | ||
Number of operating segments | Integer | 1 | 1 |
LEASES (Details - Operating lea
LEASES (Details - Operating lease info) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Assets: | ||
Right-of-use assets | $ 2,180 | $ 3,174 |
Liabilities: | ||
Current lease liabilities | 1,298 | 1,261 |
Non-current lease liabilities | 918 | 1,951 |
Total lease liabilities | $ 2,216 | $ 3,212 |
LEASES (Details - Minimum lease
LEASES (Details - Minimum lease payments) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Short term lease expense | $ 97 | $ 37 | $ 210 | $ 124 |
Total lease expense | 445 | 334 | 1,299 | 883 |
Cost of Sales [Member] | ||||
Operating lease expense | 313 | 271 | 946 | 659 |
Selling, General and Administrative Expenses [Member] | ||||
Operating lease expense | $ 35 | $ 26 | $ 143 | $ 100 |
LEASES (Details - Lease Term An
LEASES (Details - Lease Term And Discount) | Sep. 30, 2021 | Dec. 31, 2020 |
Leases | ||
Weighted-average remaining lease terms on operating leases (yrs.) | 1 year 8 months 15 days | 2 years 5 months 4 days |
Weighted-average discount rates on operating leases | 5.374% | 5.374% |
LEASES (Details - Present Value
LEASES (Details - Present Value) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Leases | ||
October 1, 2021 - September 30, 2022 | $ 1,380 | |
October 1, 2022 - September 30, 2023 | 919 | |
October 1, 2023 - September 30, 2024 | 8 | |
October 1, 2024 - September 30, 2025 | 7 | |
Total lease payments | 2,314 | |
Less: Interest | (98) | |
Present value of lease liabilities | $ 2,216 | $ 3,212 |
REVENUE FROM CONTRACTS WITH C_3
REVENUE FROM CONTRACTS WITH CUSTOMERS (Details - Disaggregation of Revenue) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 3,550 | $ 3,136 | $ 12,000 | $ 9,466 |
Fixed-price Contract [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,866 | 2,522 | 5,170 | 6,338 |
Servicing Contracts [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 1,684 | $ 614 | $ 6,830 | $ 3,128 |
REVENUE FROM CONTRACTS WITH C_4
REVENUE FROM CONTRACTS WITH CUSTOMERS (Details - Contract balances) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Revenue from Contract with Customer [Abstract] | ||
Costs incurred on uncompleted contracts | $ 3,174 | $ 2,098 |
Estimated earnings on uncompleted contracts | 4,216 | 3,153 |
Gross costs and estimated earnings | 7,390 | 5,251 |
Less: Billings to date on uncompleted contracts | 7,776 | 5,792 |
Costs incurred plus estimated earning less billings on uncompleted contracts | (386) | (541) |
Included in the accompanying unaudited condensed consolidated balance sheets under the following captions: | ||
Contract assets | 92 | 189 |
Contract liabilities | (478) | (730) |
Costs incurred plus estimated earning less billings on uncompleted contracts | $ (386) | $ (541) |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | $ 14,005 | $ 14,525 |
Less: Accumulated depreciation and amortization | (12,152) | (11,921) |
Property, plant and equipment, net | 1,853 | 2,604 |
Building Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | $ 285 | 285 |
Range of Asset Lives | 7 - 36 years | |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | $ 906 | 906 |
Range of Asset Lives | 2 - 5 years | |
Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | $ 11,833 | 12,343 |
Range of Asset Lives | 2 - 30 years | |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | $ 907 | 907 |
Range of Asset Lives | 2 - 8 years | |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | $ 74 | $ 84 |
SHARE-BASED COMPENSATION (Detai
SHARE-BASED COMPENSATION (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation | $ 9 | $ 39 | $ 46 | $ 113 | |
Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unamortized estimated fair value of restricted stock awards | $ 2 | $ 2 | $ 48 | ||
Unamortized expense recognition period | 3 months 21 days |
TREASURY STOCK (Details Narrati
TREASURY STOCK (Details Narrative) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Sep. 30, 2020 | Mar. 31, 2020 | |
Equity [Abstract] | ||
Stock repurchases, shares | 744 | |
Stock purchased, value | $ 1 | $ 524 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Letters Of Credit Outstanding | $ 0 | $ 0 | |
Severance payable | 245 | ||
Litigation settlement | 750 | ||
Litigation liability | $ 90 | $ 750 |
EARNINGS PER COMMON SHARE (Deta
EARNINGS PER COMMON SHARE (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Net income (loss) per share: | ||||
Weighted average common shares outstanding - basic | 12,389 | 12,390 | 12,389 | 12,531 |
Dilutive effect of common stock equivalents | 56 | 0 | 52 | 0 |
Weighted average common shares outstanding - diluted | 12,445 | 12,390 | 12,441 | 12,531 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2019 | |
Related Party Transaction [Line Items] | ||||
Severance payable | $ 245 | $ 245 | ||
Consulting expenses | $ 45 | $ 135 | ||
Mr Ronald E Smith [Member] | ||||
Related Party Transaction [Line Items] | ||||
Severance payable | $ 42 | |||
Mr Ronald E Smith [Member] | Subsequent Event [Member] | ||||
Related Party Transaction [Line Items] | ||||
Severance payable | $ 15 |
SMALL BUSINESS ADMINISTRATION_2
SMALL BUSINESS ADMINISTRATION’S PAYCHECK PROTECTION PROGRAM LOAN (Details Narrative) - USD ($) $ in Thousands | 2 Months Ended | 4 Months Ended | 6 Months Ended | 8 Months Ended |
Mar. 01, 2021 | Apr. 29, 2020 | Jun. 29, 2021 | Sep. 10, 2021 | |
Small Business Administrations Paycheck Protection Program Loan | ||||
Proceeds from loans | $ 1,111 | $ 1,111 | ||
Loan Forgiveness | $ 1,111 | $ 1,111 |