Cover
Cover - shares | 3 Months Ended | |
Dec. 31, 2023 | Feb. 12, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Dec. 31, 2023 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2024 | |
Current Fiscal Year End Date | --10-01 | |
Entity File Number | 001-41644 | |
Entity Registrant Name | OPTEX SYSTEMS HOLDINGS, INC. | |
Entity Central Index Key | 0001397016 | |
Entity Tax Identification Number | 90-0609531 | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Address Line One | 1420 Presidential Drive | |
Entity Address, City or Town | Richardson | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 75081-2439 | |
City Area Code | (972) | |
Local Phone Number | 764-5700 | |
Title of 12(b) Security | Common Stock, $0.001 par value | |
Trading Symbol | OPXS | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 6,823,693 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2023 | Oct. 01, 2023 | |
ASSETS | |||
Cash and Cash Equivalents | $ 2,373 | $ 1,204 | |
Accounts Receivable, Net | 2,430 | 3,624 | |
Inventory, Net | 12,685 | 12,153 | |
Contract Asset | 258 | 336 | |
Prepaid Expenses | 154 | 219 | |
Current Assets | 17,900 | 17,536 | |
Property and Equipment, Net | 964 | 998 | |
Other Assets | |||
Deferred Tax Asset | 887 | 922 | |
Right-of-use Asset | 2,615 | [1] | 2,740 |
Security Deposits | 23 | 23 | |
Other Assets | 3,525 | 3,685 | |
Total Assets | 22,389 | 22,219 | |
Current Liabilities | |||
Accounts Payable | 1,796 | 810 | |
Operating Lease Liability | 625 | 620 | |
Federal Income Taxes Payable | 326 | 247 | |
Accrued Expenses | 992 | 1,265 | |
Accrued Selling Expense | 280 | 336 | |
Accrued Warranty Costs | 48 | 75 | |
Contract Loss Reserves | 308 | 243 | |
Customer Advance Deposits | 481 | 481 | |
Current Liabilities | 4,856 | 4,077 | |
Other Liabilities | |||
Credit Facility | 1,000 | ||
Operating Lease Liability, net of current portion | 2,156 | 2,282 | |
Other Liabilities | 2,156 | 3,282 | |
Total Liabilities | 7,012 | 7,359 | |
Commitments and Contingencies | |||
Stockholders’ Equity | |||
Common Stock – ($0.001 par, 2,000,000,000 authorized, 6,823,693 and 6,763,070 shares issued and outstanding, respectively) | 7 | 7 | |
Additional Paid in Capital | 21,371 | 21,285 | |
Accumulated Deficit | (6,001) | (6,432) | |
Stockholders’ Equity | 15,377 | 14,860 | |
Total Liabilities and Stockholders’ Equity | $ 22,389 | $ 22,219 | |
[1]Short-term and Long-term portion of Operating Lease Liability is $ 625 2,156 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2023 | Oct. 01, 2023 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 2,000,000,000 | 2,000,000,000 |
Common stock, shares issued | 6,823,693 | 6,763,070 |
Common stock, shares outstanding | 6,823,693 | 6,763,070 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2023 | Jan. 01, 2023 | |
Income Statement [Abstract] | ||
Revenue | $ 6,968 | $ 4,040 |
Cost of Sales | 5,284 | 3,323 |
Gross Profit | 1,684 | 717 |
General and Administrative Expense | 1,131 | 999 |
Operating Income (Loss) | 553 | (282) |
Other Expense | (7) | |
Income (Loss) Before Taxes | 546 | (282) |
Income Tax Expense (Benefit) | 115 | (59) |
Net Income (Loss) | $ 431 | $ (223) |
Basic income (loss) per share | $ 0.06 | $ (0.03) |
Weighted Average Common Shares Outstanding - basic | 6,666,290 | 6,537,808 |
Diluted income (loss) per share | $ 0.06 | $ (0.03) |
Weighted Average Common Shares Outstanding - diluted | 6,721,661 | 6,537,808 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2023 | Jan. 01, 2023 | |
Cash Flows from Operating Activities: | ||
Net Income (Loss) | $ 431 | $ (223) |
Adjustments to Reconcile Net Income (Loss) to Net Cash provided by Operating Activities: | ||
Depreciation and Amortization | 92 | 81 |
Stock Compensation Expense | 113 | 35 |
Deferred Tax | 35 | (59) |
Accounts Receivable | 1,194 | 1,303 |
Inventory | (532) | (1,586) |
Contract Asset | 78 | (336) |
Prepaid Expenses | 65 | 79 |
Leases | 4 | 8 |
Accounts Payable and Accrued Expenses | 713 | 745 |
Federal Income Taxes Payable | 79 | |
Accrued Warranty Costs | (27) | 60 |
Accrued Selling Expense | (56) | 336 |
Customer Advance Deposits | 15 | |
Contract Loss Reserves | 65 | (7) |
Total Adjustments | 1,823 | 674 |
Net Cash provided by Operating Activities | 2,254 | 451 |
Cash Flows used in Investing Activities | ||
Purchases of Property and Equipment | (58) | (90) |
Net Cash used in Investing Activities | (58) | (90) |
Cash Flows used in Financing Activities | ||
Payments to Credit Facility | (1,000) | |
Cash Paid for Taxes Withheld on Net Settled Restricted Stock Unit Shares Issued | (27) | (15) |
Net Cash used in Financing Activities | (1,027) | (15) |
Net Increase in Cash and Cash Equivalents | 1,169 | 346 |
Cash and Cash Equivalents at Beginning of Period | 1,204 | 934 |
Cash and Cash Equivalents at End of Period | 2,373 | 1,280 |
Supplemental Cash Flow Information | ||
Cash Paid for Interest | $ 7 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total | |
Beginning balance, value at Oct. 02, 2022 | $ 7 | $ 21,096 | $ (8,695) | $ 12,408 | |
Balance, Shares at Oct. 02, 2022 | 6,716,638 | ||||
Stock Compensation Expense | 35 | 35 | |||
Net Income (loss) | (223) | (223) | |||
Vested Restricted Stock Units, net of withheld taxes | [1] | (15) | (15) | ||
Vested Restricted Stock Units, net of withheld taxes, Shares | 46,432 | ||||
Ending balance, value at Jan. 01, 2023 | $ 7 | 21,116 | (8,918) | 12,205 | |
Balance, Shares at Jan. 01, 2023 | 6,763,070 | ||||
Beginning balance, value at Oct. 01, 2023 | $ 7 | 21,285 | (6,432) | 14,860 | |
Balance, Shares at Oct. 01, 2023 | 6,763,070 | ||||
Stock Compensation Expense | 113 | 113 | |||
Vested Performance Based Shares net of withheld taxes | [2] | (27) | (27) | ||
Vested Performance Based Shares net of withheld taxes, Shares | 60,623 | ||||
Net Income (loss) | 431 | 431 | |||
Ending balance, value at Dec. 31, 2023 | $ 7 | $ 21,371 | $ (6,001) | $ 15,377 | |
Balance, Shares at Dec. 31, 2023 | 6,823,693 | ||||
[1]Restricted stock units vested January 1, 2023 issued net of tax withheld.[2]Performance based shares vested October 2, 2023, December 22, 2023 and December 29, 2023 issued net of tax withheld. Shares were vested based on reaching 30-day VWAP of $ 3.70 4.45 5.35 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Stockholders' Equity(Parenthetical) - $ / shares | Dec. 31, 2023 | Dec. 29, 2023 | Dec. 22, 2023 | Oct. 02, 2023 | |
Statement of Stockholders' Equity [Abstract] | |||||
Vesting share price | $ 3.04 | [1] | $ 5.35 | $ 4.45 | $ 3.70 |
[1]Closing price of OPXS shares on the Valuation Date, as obtained via S&P Capital IQ. |
Organization and Operations
Organization and Operations | 3 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Operations | Organization and Operations Optex Systems Holdings, Inc. (the “Company”) manufactures optical sighting systems and assemblies for the U.S. Department of Defense, foreign military applications and commercial markets. Its products are installed on a variety of U.S. military land vehicles, such as the Abrams and Bradley fighting vehicles, light armored and advanced security vehicles, and have been selected for installation on the Stryker family of vehicles. The Company also manufactures and delivers numerous periscope configurations, rifle and surveillance sights and night vision optical assemblies. Optex Systems Holdings’ products consist primarily of build to customer print products that are delivered both directly to the military and to other defense prime contractors or commercial customers. The Company’s consolidated revenues for the three months ended December 31, 2023 were derived from the U.S. government ( 16 28 9 5 18 24 91 9 93,967 |
Accounting Policies
Accounting Policies | 3 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Accounting Policies | Note 2 - Accounting Policies Basis of Presentation Principles of Consolidation The condensed consolidated financial statements of Optex Systems Holdings included herein have been prepared by Optex Systems Holdings, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in conjunction with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading. These condensed consolidated financial statements should be read in conjunction with the annual audited consolidated financial statements and the notes thereto included in the Optex Systems Holdings’ Form 10-K for the year ended October 1, 2023 and other reports filed with the SEC. The accompanying unaudited interim condensed consolidated financial statements reflect all adjustments of a normal and recurring nature which are, in the opinion of management, necessary to present fairly the financial position, results of operations and cash flows of Optex Systems Holdings for the interim periods presented. The results of operations for these periods are not necessarily comparable to, or indicative of, results of any other interim period or for the fiscal year taken as a whole. Certain information that is not required for interim financial reporting purposes has been omitted. Inventory Schedule of Inventory (Thousands) December 31, 2023 October 1, 2023 Raw Material $ 8,483 $ 8,211 Work in Process 4,628 4,460 Finished Goods 581 489 Gross Inventory $ 13,692 $ 13,160 Less: Inventory Reserves (1,007 ) (1,007 ) Net Inventory $ 12,685 $ 12,153 Concentration of Credit Risk 9 25 7 7 5 5 5 18 10 9 Accrued Warranties 48 75 Schedule of Warranty Reserves Three months ended December 31, 2023 January 1, 2023 Beginning balance $ 75 $ 169 Incurred costs for warranties satisfied during the period (32 ) - Warranty Expenses: Warranties reserved for new product shipped during the period (1) 52 60 Change in estimate for pre-existing warranty liabilities (2) (47 ) - Warranty Expense 5 60 Ending balance $ 48 $ 229 (1) Warranty expenses accrued to cost of sales (based on current period shipments and historical warranty return rate.) (2) Changes in estimated warranty liabilities recognized in cost of sales associated with: the period end customer returned warranty backlog, or the actual costs of repaired/replaced warranty units which were shipped to the customer during the current period. Use of Estimates Fair Value of Financial Instruments The carrying value of cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities are carried at, or approximate, fair value as of the reporting date because of their short-term nature. The credit facility is reported at fair value as it bears market rates of interest. The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value and requires that assets and liabilities carried at fair value be classified and disclosed in one of the following three categories: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs reflecting the reporting entity’s own assumptions. The accounting guidance establishes a hierarchy which requires an entity to maximize the use of quoted market prices and minimize the use of unobservable inputs. An asset or liability’s level is based on the lowest level of input that is significant to the fair value measurement. Fair value estimates are reviewed at the origination date and again at each applicable measurement date and interim or annual financial reporting dates, as applicable for the financial instrument, and are based upon certain market assumptions and pertinent information available to management at those times. Revenue Recognition 115 112 During the three months ended December 31, 2023 and January 1, 2023, there was zero 29 481 As of December 31, 2023 and October 1, 2023, there was $ 280 336 258 336 3.4 3.4 3.1 56 22 Contract Loss Reserves 308 243 During the three months ended December 31, 2023, the Company recognized $ 90 25 51 58 Income Tax/Deferred Tax 0.8 1.7 0.9 Earnings per Share The Company has potentially dilutive securities outstanding, which include unvested restricted stock units and unvested shares of restricted stock. The Company uses the Treasury Stock Method to compute the dilutive effect of any dilutive shares. Unvested restricted stock units and shares of restricted stock that are anti-dilutive are excluded from the calculation of diluted earnings per common share. For the three months ended December 31, 2023, 120,000 39,000 55,371 54,000 For the three months ended January 1, 2023, 120,000 36,045 |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Dec. 31, 2023 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | Note 3 – Recent Accounting Pronouncements In June 2, 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASC 326 provides guidance on how an entity should measure credit losses on financial instruments. The new guidance requires organizations to measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. The new guidance affects organizations that hold financial assets and net investments in leases that are not accounted for at fair value with changes in fair value reported in net income. The new guidance affects loans, debt securities, trade receivables, net investments in leases, off-balance-sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. The update is effective for smaller reporting entities for fiscal years beginning after December 15, 2022, including interim periods within those years, as such the Company adopted ASU 2016-13 and (ASC Topic 326) on fiscal year beginning October 2, 2023 with no material impact to Optex Systems Holdings’ financial statements. |
Segment Reporting
Segment Reporting | 3 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment Reporting | Note 4 - Segment Reporting The Company’s two reportable segments, Applied Optics Center and Optex Systems – Richardson (“Optex Systems”), are strategic businesses offering similar products to similar markets and customers; however, they are operated and managed separately due to differences in manufacturing technology, equipment, geographic location, and specific product mix. Applied Optics Center was acquired as a unit, and management at the time of the acquisition was retained. The Applied Optics Center segment also serves as the key supplier of laser coated filters used in the production of periscope assemblies for the Optex Systems segment. Intersegment sales and transfers are accounted for at annually agreed to pricing rates based on estimated segment product cost, which includes segment direct manufacturing and general and administrative costs, but exclude profits that would apply to third party external customers. Optex Systems (OPX) – Richardson, Texas Optex Systems revenues are primarily in support of prime and subcontracted military customers. Military sales to prime and subcontracted customers represented approximately 100 1 81 19 49 24 11 14 Optex Systems is located in Richardson Texas, with leased premises consisting of approximately 49,100 58 Applied Optics Center (AOC) – Dallas, Texas The Applied Optics Center serves primarily domestic U.S. customers. Sales to commercial customers represented approximately 35 65 95 5 51 9 5 18 19 The Applied Optics Center is located in Dallas, Texas with leased premises consisting of approximately 44,867 47 The financial tables below present information on the reportable segments’ profit or loss for each period, as well as segment assets as of each period end. The Company does not allocate interest expense, income taxes or unusual items to segments. Schedule of Segment Reporting Information Reportable Segment Financial Information (thousands) As of and for the three months ended December 31, 2023 Optex Systems Richardson Applied Optics Center Dallas Other (non-allocated costs and intersegment eliminations) Consolidated Total Revenues from external customers $ 3,394 $ 3,574 $ - $ 6,968 Intersegment revenues - 187 (187 ) - Total revenue $ 3,394 $ 3,761 $ (187 ) $ 6,968 Depreciation and amortization $ 10 $ 82 $ - $ 92 Interest expense $ - - $ 7 $ 7 Income (loss) before taxes $ 15 $ 651 $ (120 ) $ 546 Other significant noncash items: Allocated home office expense $ (343 ) $ 343 $ - $ - Stock compensation expense $ - $ - $ 113 $ 113 Warranty expense $ - $ 5 $ - $ 5 Segment assets $ 14,336 $ 8,053 $ - $ 22,389 Expenditures for segment assets $ 33 $ 25 $ - $ 58 Reportable Segment Financial Information (thousands) As of and for the three months ended January 1, 2023 Optex Systems Richardson Applied Optics Center Dallas Other (non-allocated costs and intersegment eliminations) Consolidated Total Revenues from external customers $ 1,619 $ 2,421 $ - $ 4,040 Intersegment revenues - 116 (116 ) - Total revenue $ 1,619 $ 2,537 $ (116 ) $ 4,040 Depreciation and amortization $ 11 $ 70 $ - $ 81 Income (loss) before taxes $ (424 ) $ 177 $ (35 ) $ (282 ) Other significant noncash items: Allocated home office expense $ (280 ) $ 280 $ - $ - Stock compensation expense $ - $ - $ 35 $ 35 Warranty expense $ - 60 - 60 $ $ - $ Segment assets $ 11,745 $ 7,628 $ - $ 19,373 Expenditures for segment assets $ 23 $ 67 $ - $ 90 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 5 - Commitments and Contingencies Non-cancellable Operating Leases Optex Systems Holdings leases its office and manufacturing facilities for the Optex Systems, Inc., Richardson location and the Applied Optics Center Dallas location. The Company also leases certain office equipment under non-cancellable operating leases. The facility leased by Optex Systems Inc. located at 1420 Presidential Drive, Richardson, Texas consists of 49,100 the monthly base rent was $24.6 thousand through March 31, 2021. On January 11, 2021 the Company executed a sixth amendment extending the terms of the lease for eighty-six (86) months, commencing on April 1, 2021 and ending on May 31, 2028 13.1 The facility leased by Applied Optics Center located at 9839 and 9827 Chartwell Drive, Dallas, Texas, consists of 44,867 the monthly base rent was $21.9 thousand through the end of the lease. On January 11, 2021 the Company executed a first amendment extending the terms of the lease for eighty-six (86) months, commencing on November 1, 2021 and ending on December 31, 2028 125,000 9.3 As of December 31, 2023, the remaining minimum lease and estimated CAM payments under the non-cancelable facility space leases are as follows: Schedule of Non-cancellable Operating Leases Minimum Payments (Thousands) Optex Richardson Applied Optics Center Office Equipment Consolidated Fiscal Year Facility Lease Payments Facility Lease Payments Lease Payments Total Lease Payments Total Variable CAM Estimate 2024 Base year lease $ 246 $ 224 $ 11 $ 481 $ 225 2025 Base year lease 336 305 15 656 306 2026 Base year lease 346 313 3 662 312 2027 Base year lease 357 322 - 679 318 2028 Base year lease 242 330 - 572 249 2029 Base year lease - 83 - 83 43 Total base lease payments $ 1,527 $ 1,577 $ 29 $ 3,133 $ 1,453 Imputed interest on lease payments (1) (163 ) (188 ) (1 ) (352 ) Total Operating Lease Liability (2) $ 1,364 $ 1,389 $ 28 $ 2,781 Right-of-use Asset (3) $ 1,275 $ 1,312 $ 28 $ 2,615 (1) Assumes a discount borrowing rate of 5.0 January 11, 2021 (2) Includes $ 166 (3) Short-term and Long-term portion of Operating Lease Liability is $ 625 2,156 Total facilities rental and CAM expense under both facility lease agreements for the three months ended December 31, 2023 and January 1, 2023 was $ 217 214 5 5 |
Debt Financing
Debt Financing | 3 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt Financing | Note 6 - Debt Financing Credit Facility — PNC Bank (formerly BBVA, USA) On April 16, 2020, Optex Systems Holdings, Inc. and its subsidiary, Optex Systems, Inc. (collectively, the “Borrowers”), entered into a line of credit facility (the “PNC Facility”) with BBVA, USA. In June 2021, PNC Bank completed its acquisition of BBVA, USA and the bank name changed to PNC Bank (“PNC”). The substantive terms were as follows: ● The principal amount of the PNC Facility was $ 2.25 April 15, 2022 0.25 3 ● There were commercially standard covenants including, but not limited to, covenants regarding maintenance of corporate existence, not incurring other indebtedness except trade debt, not changing more than 25% stock ownership of Borrowers, and a Fixed Charge Coverage Ratio of 1.25:1, with the Fixed Charge Coverage Ratio defined as (earnings before taxes, amortization, depreciation, amortization and rent expense less cash taxes, distribution, dividends and fair value of warrants) divided by (current maturities on long term debt plus interest expense plus rent expense). ● The PNC Facility contained commercially standard events of default including, but not limited to, not making payments when due; incurring a judgment of $ 10,000 ● The PNC Facility was secured by a first lien on all of the assets of Borrowers. On April 12, 2022, the Borrowers entered into an Amended and Restated Loan Agreement (the “PNC Loan Agreement”) with PNC, pursuant to which the PNC Facility was decreased from $ 2.25 1.125 the maturity date was extended from April 15, 2022 to April 15, 2023. On November 21, 2022, the Borrowers issued an Amended and Restated Revolving Line of Credit Note (the “PNC Line of Credit Note”) to PNC in connection with an increase of the PNC Facility from $ 1.125 2.0 0.25 The PNC Line of Credit Note and PNC Loan Agreement contained customary events of default and negative covenants, including but not limited to those governing indebtedness, liens, fundamental changes, investments, and restricted payments. The PNC Facility was secured by substantially all of the operating assets of the Borrowers as collateral. The Borrowers’ obligations under the PNC Facility were subject to acceleration upon the occurrence of an event of default as defined in the PNC Line of Credit Note and PNC Loan Agreement. For the three months ended January 1, 2023, the interest expense under the PNC Facility was zero Credit Facility — Texas Capital Bank On March 22, 2023, the Borrowers entered into a Business Loan Agreement (the “Loan Agreement”) with Texas Capital Bank (the “Lender”), pursuant to which the Lender makes available to the Borrowers a revolving line of credit in the principal amount of $ 3 2 The commitment period for advances under the Texas Capital Facility is twenty-six months expiring on May 22, 2025 8.1 The Loan Agreement contains customary events of default (including a 25 The Loan Agreement also requires the Borrowers to maintain a fixed charge coverage ratio of at least 1.25:1 and a total leverage ratio of 3.00:1. 125,000 The outstanding balance under the Texas Capital Facility was zero 1.0 For the three months ended December 31, 2023, the interest expense under the Texas Capital Facility was $ 7 |
Stock Based Compensation
Stock Based Compensation | 3 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock Based Compensation | Note 7 - Stock Based Compensation Restricted Stock, Performance Shares and Restricted Stock Units issued to Directors, Officers and Employees The following table summarizes the status of Optex Systems Holdings’ aggregate non-vested restricted stock and restricted stock units, and performance shares: Schedule of Aggregate Non-vested Restricted Stock and Restricted Stock Units Granted and Performance Shares Restricted Stock Units Weighted Average Grant Date Fair Value Restricted Shares Weighted Average Grant Date Fair Value Performance Shares Weighted Average Grant Date Fair Value Outstanding at October 2, 2022 66,000 $ 1.52 180,000 $ 1.75 - $ - Granted 42,000 3.05 40,000 3.09 135,000 2.37 Vested (66,000 ) 1.52 (60,000 ) 1.75 - - Forfeited (3,000 ) 3.00 (40,000 ) 1.75 - - Outstanding at October 1, 2023 39,000 $ 3.06 120,000 $ 2.20 135,000 $ 2.37 Granted - - - - - - Vested - - - - (81,000 ) 2.57 Forfeited - - - - - - Outstanding at December 31, 2023 39,000 $ 3.06 120,000 $ 2.20 54,000 $ 2.06 On January 2, 2019, the Company granted 150,000 50,000 34 33 1.32 264 On February 17, 2020, the Company granted 50,000 34 33 2.13 107 On April 30, 2020, the Board of Directors held a meeting and voted to increase the annual board compensation for the three independent directors from $ 22,000 to $ 36,000 with an effective date of January 1, 2020, in addition to granting 100,000 shares of restricted stock to each independent director which vest at a rate of 20% per year (20,000 shares) each January 1 st The total fair value for the 300,000 525 1.75 60,000 40,000 40,000 50 124 five two 120,000 The Company entered into an amended and restated employment agreement with Danny Schoening dated December 1, 2021. The updated employment agreement also served to amend Mr. Schoening’s RSU Agreement, dated January 2, 2019, by changing the third and final vesting date for the restricted stock units granted under such agreement from January 1, 2022 to the “change of control date,” that being the first of the following to occur with respect to the Company: (i) any “Person,” as that term is defined in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), with certain exclusions, is or becomes the “Beneficial Owner” (as that term is defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing fifty percent (50%) or more of the combined voting power of the Company’s then outstanding securities; or (ii) the Company is merged or consolidated with any other corporation or other entity, other than: (A) a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) more than fifty percent (50%) of the combined voting power of the voting securities of the Company or such surviving entity outstanding immediately after such merger or consolidation; or (B) the Company engages in a merger or consolidation effected to implement a recapitalization of the Company (or similar transaction) in which no “Person” (as defined above) acquires fifty percent (50%) or more of the combined voting power of the Company’s then outstanding securities. The amended RSU Agreement contains certain exceptions to the definition of change of control As of the December 1, 2021 modification date related to the third and final vesting date of the 49,500 5 On November 28, 2022, the Company entered into a new employment agreement with Danny Schoening which amended Mr. Schoening’s RSU Agreement, dated January 2, 2019, which had been previously amended as of December 1, 2021, by changing the third and final vesting date for the restricted stock units granted under such agreement from the “change of control date” to January 1, 2023. On January 4, 2022, the Company issued 23,216 19 33,000 On November 28, 2022, the Company entered into a new employment agreement with Danny Schoening which amended Mr. Schoening’s RSU Agreement, dated January 2, 2019, which had been previously amended as of December 1, 2021, by changing the third and final vesting date for the restricted stock units granted under such agreement from the “change of control date” to January 1, 2023. On January 4, 2023, the Company issued 46,432 58 66,000 On May 1, 2023, the Company granted an aggregate of 39,000 23.1 90 3,000 3,000 11 33.33 39,000 On May 3, 2023, the Board of Directors approved a grant of 100,000 35,000 performance period beginning on October 2, 2023, the average VWAP per share of common stock over a 30 consecutive trading day period equals or exceeds $3.70, $4.45, $5.35, $6.40, or $7.70. 320 On October 2, 2023, 27,000 21,060 27 On December 22, 2023 and December 29, 2023, 27,000 39,563 91 The assumptions and results for the Monte Carlo simulation are as follows: Schedule of Assumptions and Results for the Monte Carlo Simulation Assumptions Performance Period Start 10/2/2023 Performance Period End 10/1/2028 Term of simulation (1) 5.42 Time steps in simulation 1,365 Time steps per year 252 Common share price at valuation date (2) $ 3.04 Volatility (annual) (4) 50.0 % Risk-free rate (annual) (5) 3.37 % Cost of equity (6) 11.5 % Dividend yield (3) 0.0 % Tranche 1 Tranche 2 Tranche 3 Tranche 4 Tranche 5 Number of performance shares in the Tranche (1) 27,000 27,000 27,000 27,000 27,000 Fair Value of One Performance share (7) $ 2.75 $ 2.58 $ 2.39 $ 2.18 $ 1.93 Total Fair Value of Tranche $ 74,345 $ 69,742 $ 64,446 $ 58,819 $ 52,238 Derived Service Period (Years) (7) 0.71 1.13 1.60 2.06 2.48 (1) Based on the terms of the Performance Shares agreement issued by the Company on May 3, 2023. (2) Closing price of OPXS shares on the Valuation Date, as obtained via S&P Capital IQ. (3) Expected dividends provided by management. (4) Based on historical volatility of OPXS and comparable public companies. (5) Interest rate for US Treasury commensurate with the Performance Shares holding period, as of the Valuation Date, as obtained via S&P Capital IQ. (6) Estimated cost of equity for OPXS as of the Valuation Date. (7) Based on Monte Carlo simulation. Stock Based Compensation Expense Equity compensation is amortized based on a straight-line basis across the vesting or service period as applicable. The recorded compensation costs for restricted shares granted and restricted stock units and performance shares awarded as well as the unrecognized compensation costs are summarized in the table below: Schedule of Unrecognized Compensation Costs Stock Compensation (thousands) Recognized Compensation Expense Unrecognized Compensation Expense Three months ended As of December 31, 2023 January 1, 2023 December 31, 2023 October 1, 2023 Restricted Shares $ 41 $ 26 $ 132 $ 173 Performance Based Shares 64 - 148 212 Restricted Stock Units 8 9 80 88 Total Stock Compensation $ 113 $ 35 $ 360 $ 473 |
Stockholders_ Equity
Stockholders’ Equity | 3 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Stockholders’ Equity | Note 8 - Stockholders’ Equity Dividends No Common stock On September 22, 2021, the Company announced authorization of a $ 1 During the three months ended December 31, 2023 and January 1, 2023, there were zero During the three months ended December 31, 2023, the Company issued 60,623 shares to Danny Schoening and Karen Hawkins in settlement of 81,000 performance shares which vested during the three months . The shares were issued net of 20,377 shares withheld for taxes. As of December 31, 2023 and October 1, 2023, the total issued and outstanding common shares were 6,823,693 6,763,070 , respectively. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 9 - Subsequent Events On January 1, 2024, 60,000 On January 8, 2024, $ 76 56 On January 18, 2024, Optex Systems Holdings, Inc., through its wholly-owned subsidiary Optex Systems, Inc. (collectively, the “Company”), entered into an asset purchase agreement and a contract manufacturing agreement with RUB Aluminium s.r.o. (“RUB”). Under the agreements, the Company acquired certain intellectual property and technical and marketing information relating to the Speedtracker Mach product line, which is primarily used for firearm projectile speed detection, measuring and tracking. RUB will continue to manufacture Speedtracker Mach products on behalf of the Company. The Company acquired the assets using $ 1 The acquisition is deemed as a non-significant asset acquisition of intangible assets based on the guidance of U.S. GAAP ACS 805 and does not meet the significance test pursuant to SEC Rule 3-05. |
Accounting Policies (Policies)
Accounting Policies (Policies) | 3 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The condensed consolidated financial statements of Optex Systems Holdings included herein have been prepared by Optex Systems Holdings, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in conjunction with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading. These condensed consolidated financial statements should be read in conjunction with the annual audited consolidated financial statements and the notes thereto included in the Optex Systems Holdings’ Form 10-K for the year ended October 1, 2023 and other reports filed with the SEC. The accompanying unaudited interim condensed consolidated financial statements reflect all adjustments of a normal and recurring nature which are, in the opinion of management, necessary to present fairly the financial position, results of operations and cash flows of Optex Systems Holdings for the interim periods presented. The results of operations for these periods are not necessarily comparable to, or indicative of, results of any other interim period or for the fiscal year taken as a whole. Certain information that is not required for interim financial reporting purposes has been omitted. |
Inventory | Inventory Schedule of Inventory (Thousands) December 31, 2023 October 1, 2023 Raw Material $ 8,483 $ 8,211 Work in Process 4,628 4,460 Finished Goods 581 489 Gross Inventory $ 13,692 $ 13,160 Less: Inventory Reserves (1,007 ) (1,007 ) Net Inventory $ 12,685 $ 12,153 |
Concentration of Credit Risk | Concentration of Credit Risk 9 25 7 7 5 5 5 18 10 9 |
Accrued Warranties | Accrued Warranties 48 75 Schedule of Warranty Reserves Three months ended December 31, 2023 January 1, 2023 Beginning balance $ 75 $ 169 Incurred costs for warranties satisfied during the period (32 ) - Warranty Expenses: Warranties reserved for new product shipped during the period (1) 52 60 Change in estimate for pre-existing warranty liabilities (2) (47 ) - Warranty Expense 5 60 Ending balance $ 48 $ 229 (1) Warranty expenses accrued to cost of sales (based on current period shipments and historical warranty return rate.) (2) Changes in estimated warranty liabilities recognized in cost of sales associated with: the period end customer returned warranty backlog, or the actual costs of repaired/replaced warranty units which were shipped to the customer during the current period. |
Use of Estimates | Use of Estimates |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The carrying value of cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities are carried at, or approximate, fair value as of the reporting date because of their short-term nature. The credit facility is reported at fair value as it bears market rates of interest. The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value and requires that assets and liabilities carried at fair value be classified and disclosed in one of the following three categories: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs reflecting the reporting entity’s own assumptions. The accounting guidance establishes a hierarchy which requires an entity to maximize the use of quoted market prices and minimize the use of unobservable inputs. An asset or liability’s level is based on the lowest level of input that is significant to the fair value measurement. Fair value estimates are reviewed at the origination date and again at each applicable measurement date and interim or annual financial reporting dates, as applicable for the financial instrument, and are based upon certain market assumptions and pertinent information available to management at those times. |
Revenue Recognition | Revenue Recognition 115 112 During the three months ended December 31, 2023 and January 1, 2023, there was zero 29 481 As of December 31, 2023 and October 1, 2023, there was $ 280 336 258 336 3.4 3.4 3.1 56 22 |
Contract Loss Reserves | Contract Loss Reserves 308 243 During the three months ended December 31, 2023, the Company recognized $ 90 25 51 58 |
Income Tax/Deferred Tax | Income Tax/Deferred Tax 0.8 1.7 0.9 |
Earnings per Share | Earnings per Share The Company has potentially dilutive securities outstanding, which include unvested restricted stock units and unvested shares of restricted stock. The Company uses the Treasury Stock Method to compute the dilutive effect of any dilutive shares. Unvested restricted stock units and shares of restricted stock that are anti-dilutive are excluded from the calculation of diluted earnings per common share. For the three months ended December 31, 2023, 120,000 39,000 55,371 54,000 For the three months ended January 1, 2023, 120,000 36,045 |
Accounting Policies (Tables)
Accounting Policies (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Inventory | Schedule of Inventory (Thousands) December 31, 2023 October 1, 2023 Raw Material $ 8,483 $ 8,211 Work in Process 4,628 4,460 Finished Goods 581 489 Gross Inventory $ 13,692 $ 13,160 Less: Inventory Reserves (1,007 ) (1,007 ) Net Inventory $ 12,685 $ 12,153 |
Schedule of Warranty Reserves | Schedule of Warranty Reserves Three months ended December 31, 2023 January 1, 2023 Beginning balance $ 75 $ 169 Incurred costs for warranties satisfied during the period (32 ) - Warranty Expenses: Warranties reserved for new product shipped during the period (1) 52 60 Change in estimate for pre-existing warranty liabilities (2) (47 ) - Warranty Expense 5 60 Ending balance $ 48 $ 229 (1) Warranty expenses accrued to cost of sales (based on current period shipments and historical warranty return rate.) (2) Changes in estimated warranty liabilities recognized in cost of sales associated with: the period end customer returned warranty backlog, or the actual costs of repaired/replaced warranty units which were shipped to the customer during the current period. |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | The financial tables below present information on the reportable segments’ profit or loss for each period, as well as segment assets as of each period end. The Company does not allocate interest expense, income taxes or unusual items to segments. Schedule of Segment Reporting Information Reportable Segment Financial Information (thousands) As of and for the three months ended December 31, 2023 Optex Systems Richardson Applied Optics Center Dallas Other (non-allocated costs and intersegment eliminations) Consolidated Total Revenues from external customers $ 3,394 $ 3,574 $ - $ 6,968 Intersegment revenues - 187 (187 ) - Total revenue $ 3,394 $ 3,761 $ (187 ) $ 6,968 Depreciation and amortization $ 10 $ 82 $ - $ 92 Interest expense $ - - $ 7 $ 7 Income (loss) before taxes $ 15 $ 651 $ (120 ) $ 546 Other significant noncash items: Allocated home office expense $ (343 ) $ 343 $ - $ - Stock compensation expense $ - $ - $ 113 $ 113 Warranty expense $ - $ 5 $ - $ 5 Segment assets $ 14,336 $ 8,053 $ - $ 22,389 Expenditures for segment assets $ 33 $ 25 $ - $ 58 Reportable Segment Financial Information (thousands) As of and for the three months ended January 1, 2023 Optex Systems Richardson Applied Optics Center Dallas Other (non-allocated costs and intersegment eliminations) Consolidated Total Revenues from external customers $ 1,619 $ 2,421 $ - $ 4,040 Intersegment revenues - 116 (116 ) - Total revenue $ 1,619 $ 2,537 $ (116 ) $ 4,040 Depreciation and amortization $ 11 $ 70 $ - $ 81 Income (loss) before taxes $ (424 ) $ 177 $ (35 ) $ (282 ) Other significant noncash items: Allocated home office expense $ (280 ) $ 280 $ - $ - Stock compensation expense $ - $ - $ 35 $ 35 Warranty expense $ - 60 - 60 $ $ - $ Segment assets $ 11,745 $ 7,628 $ - $ 19,373 Expenditures for segment assets $ 23 $ 67 $ - $ 90 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Non-cancellable Operating Leases Minimum Payments | As of December 31, 2023, the remaining minimum lease and estimated CAM payments under the non-cancelable facility space leases are as follows: Schedule of Non-cancellable Operating Leases Minimum Payments (Thousands) Optex Richardson Applied Optics Center Office Equipment Consolidated Fiscal Year Facility Lease Payments Facility Lease Payments Lease Payments Total Lease Payments Total Variable CAM Estimate 2024 Base year lease $ 246 $ 224 $ 11 $ 481 $ 225 2025 Base year lease 336 305 15 656 306 2026 Base year lease 346 313 3 662 312 2027 Base year lease 357 322 - 679 318 2028 Base year lease 242 330 - 572 249 2029 Base year lease - 83 - 83 43 Total base lease payments $ 1,527 $ 1,577 $ 29 $ 3,133 $ 1,453 Imputed interest on lease payments (1) (163 ) (188 ) (1 ) (352 ) Total Operating Lease Liability (2) $ 1,364 $ 1,389 $ 28 $ 2,781 Right-of-use Asset (3) $ 1,275 $ 1,312 $ 28 $ 2,615 (1) Assumes a discount borrowing rate of 5.0 January 11, 2021 (2) Includes $ 166 (3) Short-term and Long-term portion of Operating Lease Liability is $ 625 2,156 |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Aggregate Non-vested Restricted Stock and Restricted Stock Units Granted and Performance Shares | The following table summarizes the status of Optex Systems Holdings’ aggregate non-vested restricted stock and restricted stock units, and performance shares: Schedule of Aggregate Non-vested Restricted Stock and Restricted Stock Units Granted and Performance Shares Restricted Stock Units Weighted Average Grant Date Fair Value Restricted Shares Weighted Average Grant Date Fair Value Performance Shares Weighted Average Grant Date Fair Value Outstanding at October 2, 2022 66,000 $ 1.52 180,000 $ 1.75 - $ - Granted 42,000 3.05 40,000 3.09 135,000 2.37 Vested (66,000 ) 1.52 (60,000 ) 1.75 - - Forfeited (3,000 ) 3.00 (40,000 ) 1.75 - - Outstanding at October 1, 2023 39,000 $ 3.06 120,000 $ 2.20 135,000 $ 2.37 Granted - - - - - - Vested - - - - (81,000 ) 2.57 Forfeited - - - - - - Outstanding at December 31, 2023 39,000 $ 3.06 120,000 $ 2.20 54,000 $ 2.06 |
Schedule of Assumptions and Results for the Monte Carlo Simulation | The assumptions and results for the Monte Carlo simulation are as follows: Schedule of Assumptions and Results for the Monte Carlo Simulation Assumptions Performance Period Start 10/2/2023 Performance Period End 10/1/2028 Term of simulation (1) 5.42 Time steps in simulation 1,365 Time steps per year 252 Common share price at valuation date (2) $ 3.04 Volatility (annual) (4) 50.0 % Risk-free rate (annual) (5) 3.37 % Cost of equity (6) 11.5 % Dividend yield (3) 0.0 % Tranche 1 Tranche 2 Tranche 3 Tranche 4 Tranche 5 Number of performance shares in the Tranche (1) 27,000 27,000 27,000 27,000 27,000 Fair Value of One Performance share (7) $ 2.75 $ 2.58 $ 2.39 $ 2.18 $ 1.93 Total Fair Value of Tranche $ 74,345 $ 69,742 $ 64,446 $ 58,819 $ 52,238 Derived Service Period (Years) (7) 0.71 1.13 1.60 2.06 2.48 (1) Based on the terms of the Performance Shares agreement issued by the Company on May 3, 2023. (2) Closing price of OPXS shares on the Valuation Date, as obtained via S&P Capital IQ. (3) Expected dividends provided by management. (4) Based on historical volatility of OPXS and comparable public companies. (5) Interest rate for US Treasury commensurate with the Performance Shares holding period, as of the Valuation Date, as obtained via S&P Capital IQ. (6) Estimated cost of equity for OPXS as of the Valuation Date. (7) Based on Monte Carlo simulation. |
Schedule of Unrecognized Compensation Costs | Schedule of Unrecognized Compensation Costs Stock Compensation (thousands) Recognized Compensation Expense Unrecognized Compensation Expense Three months ended As of December 31, 2023 January 1, 2023 December 31, 2023 October 1, 2023 Restricted Shares $ 41 $ 26 $ 132 $ 173 Performance Based Shares 64 - 148 212 Restricted Stock Units 8 9 80 88 Total Stock Compensation $ 113 $ 35 $ 360 $ 473 |
Organization and Operations (De
Organization and Operations (Details Narrative) | 3 Months Ended |
Dec. 31, 2023 ft² | |
Product Information [Line Items] | |
Area of land | 93,967 |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | UNITED STATES | |
Product Information [Line Items] | |
Concentration risk, percentage | 91% |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Foreign Customers [Member] | |
Product Information [Line Items] | |
Concentration risk, percentage | 9% |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | One Major Commercial Customer [Member] | |
Product Information [Line Items] | |
Concentration risk, percentage | 18% |
U.S. Government [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member] | |
Product Information [Line Items] | |
Concentration risk, percentage | 16% |
U.S. Defense Contractor One [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member] | |
Product Information [Line Items] | |
Concentration risk, percentage | 28% |
U S Defense Contractor Two [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member] | |
Product Information [Line Items] | |
Concentration risk, percentage | 9% |
US Defense Contractor Three [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member] | |
Product Information [Line Items] | |
Concentration risk, percentage | 5% |
All Other Customers [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member] | |
Product Information [Line Items] | |
Concentration risk, percentage | 24% |
Schedule of Inventory (Details)
Schedule of Inventory (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Oct. 01, 2023 |
Accounting Policies [Abstract] | ||
Raw Material | $ 8,483 | $ 8,211 |
Work in Process | 4,628 | 4,460 |
Finished Goods | 581 | 489 |
Gross Inventory | 13,692 | 13,160 |
Less: Inventory Reserves | (1,007) | (1,007) |
Net Inventory | $ 12,685 | $ 12,153 |
Schedule of Warranty Reserves (
Schedule of Warranty Reserves (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | ||
Accounting Policies [Abstract] | |||
Beginning balance | $ 75 | $ 169 | |
Incurred costs for warranties satisfied during the period | (32) | ||
Warranties reserved for new product shipped during the period | [1] | 52 | 60 |
Change in estimate for pre-existing warranty liabilities | [2] | (47) | |
Warranty Expense | 5 | 60 | |
Ending balance | $ 48 | $ 229 | |
[1]Warranty expenses accrued to cost of sales (based on current period shipments and historical warranty return rate.)[2]Changes in estimated warranty liabilities recognized in cost of sales associated with: the period end customer returned warranty backlog, or the actual costs of repaired/replaced warranty units which were shipped to the customer during the current period. |
Accounting Policies (Details Na
Accounting Policies (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | ||||||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 01, 2023 | Jan. 01, 2023 | Oct. 01, 2023 | Nov. 30, 2022 | Oct. 02, 2022 | |
Product Information [Line Items] | |||||||
Warranty reserve | $ 48 | $ 229 | $ 229 | $ 229 | $ 75 | $ 169 | |
Revenue recognized from customer deposit liabilities | 0 | $ 29 | |||||
Customer deposit liabilities | 481 | ||||||
Accrued selling expenses | 280 | 336 | |||||
Contract assets | 258 | 336 | |||||
Contract value | $ 3,400 | ||||||
Contract assets and accrued selling expenses, reduction | 56 | ||||||
Selling expenses | 22 | ||||||
Contract loss reserves current | 308 | 243 | |||||
Gain loss on estimates for contract loss reserves | 90 | 51 | |||||
Amount shipped against existing loss reserves | $ 25 | $ 58 | |||||
Unvested Rectricted Stock [Member] | |||||||
Product Information [Line Items] | |||||||
Dilutive securities included in calculation of earning per share | 120,000 | 120,000 | |||||
Number of incremental shares | 55,371 | 36,045 | |||||
Unvested Rectricted Stock Units [Member] | |||||||
Product Information [Line Items] | |||||||
Dilutive securities included in calculation of earning per share | 39,000 | ||||||
Performance Shares [Member] | |||||||
Product Information [Line Items] | |||||||
Dilutive securities excluded from calculation of earning per share | 54,000 | ||||||
Optex Systems Inc [Member] | |||||||
Product Information [Line Items] | |||||||
Deferred tax asset valuation allowance | $ 800 | 800 | |||||
Deferred tax assets gross | 1,700 | 1,700 | |||||
Deferred tax assets net | 900 | $ 900 | |||||
Minimum [Member] | |||||||
Product Information [Line Items] | |||||||
Total contract value | 3,400 | ||||||
Maximum [Member] | |||||||
Product Information [Line Items] | |||||||
Total contract value | 3,100 | ||||||
Transferred over Time [Member] | |||||||
Product Information [Line Items] | |||||||
Revenue recognized over time | $ 115 | $ 112 | |||||
U.S. Government Agencies [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | |||||||
Product Information [Line Items] | |||||||
Concentration risk percentage | 9% | ||||||
Major U.S. Defense Contractor One [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | |||||||
Product Information [Line Items] | |||||||
Concentration risk percentage | 25% | ||||||
Major U.S. Defense Contractor Two [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | |||||||
Product Information [Line Items] | |||||||
Concentration risk percentage | 7% | ||||||
Major U.S. Defense Contractor Three [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | |||||||
Product Information [Line Items] | |||||||
Concentration risk percentage | 7% | ||||||
Major U.S. Defense Contractor Four [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | |||||||
Product Information [Line Items] | |||||||
Concentration risk percentage | 5% | ||||||
Major U.S. Defense Contractor Five [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | |||||||
Product Information [Line Items] | |||||||
Concentration risk percentage | 5% | ||||||
Major U.S. Defense Contractor Six [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | |||||||
Product Information [Line Items] | |||||||
Concentration risk percentage | 5% | ||||||
One Commercial Customer [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | |||||||
Product Information [Line Items] | |||||||
Concentration risk percentage | 18% | ||||||
One Foreign Military Customer [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | |||||||
Product Information [Line Items] | |||||||
Concentration risk percentage | 10% | ||||||
All Other Customers [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | |||||||
Product Information [Line Items] | |||||||
Concentration risk percentage | 9% |
Schedule of Segment Reporting I
Schedule of Segment Reporting Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2023 | Jan. 01, 2023 | |
Segment Reporting Information [Line Items] | ||
Total revenue | $ 6,968 | $ 4,040 |
Depreciation and amortization | 92 | 81 |
Interest expense | 7 | |
Income (loss) before taxes | 546 | (282) |
Allocated home office expense | ||
Stock compensation expense | 113 | 35 |
Warranty expense | 5 | 60 |
Segment assets | 22,389 | 19,373 |
Expenditures for segment assets | 58 | 90 |
Intersegment Eliminations [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenue | (116) | |
Stock compensation expense | 35 | |
Expenditures for segment assets | ||
Optex Systems (OPX) - Richardson, Texas [Member] | ||
Segment Reporting Information [Line Items] | ||
Warranty expense | ||
Optex Systems (OPX) - Richardson, Texas [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 3,394 | 1,619 |
Depreciation and amortization | 10 | 11 |
Interest expense | ||
Income (loss) before taxes | 15 | (424) |
Allocated home office expense | (343) | (280) |
Stock compensation expense | ||
Warranty expense | ||
Segment assets | 14,336 | 11,745 |
Expenditures for segment assets | 33 | 23 |
Applied Optics Center (AOC) - Dallas [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 3,761 | 2,537 |
Depreciation and amortization | 82 | 70 |
Interest expense | ||
Income (loss) before taxes | 651 | 177 |
Allocated home office expense | 343 | 280 |
Stock compensation expense | ||
Warranty expense | 5 | 60 |
Segment assets | 8,053 | 7,628 |
Expenditures for segment assets | 25 | 67 |
Other [Member] | Intersegment Eliminations [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenue | (187) | |
Depreciation and amortization | ||
Interest expense | 7 | |
Income (loss) before taxes | (120) | (35) |
Allocated home office expense | ||
Stock compensation expense | 113 | |
Warranty expense | ||
Segment assets | ||
Expenditures for segment assets | ||
Revenues from External Customers [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 6,968 | 4,040 |
Revenues from External Customers [Member] | Intersegment Eliminations [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenue | ||
Revenues from External Customers [Member] | Optex Systems (OPX) - Richardson, Texas [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 3,394 | 1,619 |
Revenues from External Customers [Member] | Applied Optics Center (AOC) - Dallas [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 3,574 | 2,421 |
Revenues from External Customers [Member] | Other [Member] | Intersegment Eliminations [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenue | ||
Intersegment Revenues [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenue | ||
Intersegment Revenues [Member] | Intersegment Eliminations [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenue | (116) | |
Intersegment Revenues [Member] | Optex Systems (OPX) - Richardson, Texas [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenue | ||
Intersegment Revenues [Member] | Applied Optics Center (AOC) - Dallas [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 187 | $ 116 |
Intersegment Revenues [Member] | Other [Member] | Intersegment Eliminations [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenue | $ (187) |
Segment Reporting (Details Narr
Segment Reporting (Details Narrative) | 3 Months Ended |
Dec. 31, 2023 ft² Integer | |
Revenue, Major Customer [Line Items] | |
Leased facilities | 93,967 |
Optex Systems (OPX) - Richardson, Texas [Member] | |
Revenue, Major Customer [Line Items] | |
Leased facilities | 49,100 |
Number of employees | Integer | 58 |
Applied Optics Center (AOC) - Dallas [Member] | |
Revenue, Major Customer [Line Items] | |
Leased facilities | 44,867 |
Number of employees | Integer | 47 |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Revenues from External Customers [Member] | |
Revenue, Major Customer [Line Items] | |
Concentration risk percentage | 95% |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Optex Systems (OPX) - Richardson, Texas [Member] | |
Revenue, Major Customer [Line Items] | |
Concentration risk percentage | 49% |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Applied Optics Center (AOC) - Dallas [Member] | |
Revenue, Major Customer [Line Items] | |
Concentration risk percentage | 51% |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Applied Optics Center (AOC) - Dallas [Member] | Commercial Customers [Member] | |
Revenue, Major Customer [Line Items] | |
Concentration risk percentage | 35% |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Applied Optics Center (AOC) - Dallas [Member] | Major U.S. Defense Contractor One [Member] | |
Revenue, Major Customer [Line Items] | |
Concentration risk percentage | 9% |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Applied Optics Center (AOC) - Dallas [Member] | Major U.S. Defense Contractor Two [Member] | |
Revenue, Major Customer [Line Items] | |
Concentration risk percentage | 5% |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Applied Optics Center (AOC) - Dallas [Member] | One Commercial Customers [Member] | |
Revenue, Major Customer [Line Items] | |
Concentration risk percentage | 18% |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Applied Optics Center (AOC) - Dallas [Member] | All Other Customers [Member] | |
Revenue, Major Customer [Line Items] | |
Concentration risk percentage | 19% |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Subcontracted Customers [Member] | Optex Systems (OPX) - Richardson, Texas [Member] | |
Revenue, Major Customer [Line Items] | |
Concentration risk percentage | 100% |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Subcontracted Customers [Member] | Applied Optics Center (AOC) - Dallas [Member] | |
Revenue, Major Customer [Line Items] | |
Concentration risk percentage | 65% |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Commercial Customers [Member] | Optex Systems (OPX) - Richardson, Texas [Member] | |
Revenue, Major Customer [Line Items] | |
Concentration risk percentage | 1% |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Domestic Military Customers [Member] | Optex Systems (OPX) - Richardson, Texas [Member] | |
Revenue, Major Customer [Line Items] | |
Concentration risk percentage | 81% |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Foreign Military Customers [Member] | Optex Systems (OPX) - Richardson, Texas [Member] | |
Revenue, Major Customer [Line Items] | |
Concentration risk percentage | 19% |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | U.S. Defense Contractor One [Member] | |
Revenue, Major Customer [Line Items] | |
Concentration risk percentage | 28% |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | U.S. Defense Contractor One [Member] | Optex Systems (OPX) - Richardson, Texas [Member] | |
Revenue, Major Customer [Line Items] | |
Concentration risk percentage | 24% |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | U.S. Government [Member] | |
Revenue, Major Customer [Line Items] | |
Concentration risk percentage | 16% |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | U.S. Government [Member] | Optex Systems (OPX) - Richardson, Texas [Member] | |
Revenue, Major Customer [Line Items] | |
Concentration risk percentage | 11% |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | All Other Customers [Member] | |
Revenue, Major Customer [Line Items] | |
Concentration risk percentage | 24% |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | All Other Customers [Member] | Optex Systems (OPX) - Richardson, Texas [Member] | |
Revenue, Major Customer [Line Items] | |
Concentration risk percentage | 14% |
Intersegment Sales Revenue Net [Member] | Customer Concentration Risk [Member] | Applied Optics Center (AOC) - Dallas [Member] | Military Contracts [Member] | |
Revenue, Major Customer [Line Items] | |
Concentration risk percentage | 5% |
Schedule of Non-cancellable Ope
Schedule of Non-cancellable Operating Leases Minimum Payments (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Oct. 01, 2023 | ||
Loss Contingencies [Line Items] | ||||
2024 Base year lease | $ 481 | |||
2025 Base year lease | 656 | |||
2026 Base year lease | 662 | |||
2027 Base year lease | 679 | |||
2028 Base year lease | 572 | |||
2029 Base year lease | 83 | |||
Total base lease payments | 3,133 | |||
Imputed interest on lease payments | [1] | (352) | ||
Total Operating Lease Liability | [2] | 2,781 | ||
Right-of-use Asset | 2,615 | [3] | $ 2,740 | |
Common Area Maintenance Estimate [Member] | ||||
Loss Contingencies [Line Items] | ||||
2024 Base year lease | 225 | |||
2025 Base year lease | 306 | |||
2026 Base year lease | 312 | |||
2027 Base year lease | 318 | |||
2028 Base year lease | 249 | |||
2029 Base year lease | 43 | |||
Total base lease payments | 1,453 | |||
Optex Systems (OPX) - Richardson, Texas [Member] | ||||
Loss Contingencies [Line Items] | ||||
2024 Base year lease | 246 | |||
2025 Base year lease | 336 | |||
2026 Base year lease | 346 | |||
2027 Base year lease | 357 | |||
2028 Base year lease | 242 | |||
2029 Base year lease | ||||
Total base lease payments | 1,527 | |||
Imputed interest on lease payments | [1] | (163) | ||
Total Operating Lease Liability | [2] | 1,364 | ||
Right-of-use Asset | [3] | 1,275 | ||
Applied Optics Center (AOC) - Dallas [Member] | ||||
Loss Contingencies [Line Items] | ||||
2024 Base year lease | 224 | |||
2025 Base year lease | 305 | |||
2026 Base year lease | 313 | |||
2027 Base year lease | 322 | |||
2028 Base year lease | 330 | |||
2029 Base year lease | 83 | |||
Total base lease payments | 1,577 | |||
Imputed interest on lease payments | [1] | (188) | ||
Total Operating Lease Liability | [2] | 1,389 | ||
Right-of-use Asset | [3] | 1,312 | ||
Office Equipment Lease [Member] | ||||
Loss Contingencies [Line Items] | ||||
2024 Base year lease | 11 | |||
2025 Base year lease | 15 | |||
2026 Base year lease | 3 | |||
2027 Base year lease | ||||
2028 Base year lease | ||||
2029 Base year lease | ||||
Total base lease payments | 29 | |||
Imputed interest on lease payments | [1] | (1) | ||
Total Operating Lease Liability | [2] | 28 | ||
Right-of-use Asset | [3] | $ 28 | ||
[1]Assumes a discount borrowing rate of 5.0 January 11, 2021 166 625 2,156 |
Schedule of Non-cancellable O_2
Schedule of Non-cancellable Operating Leases Minimum Payments (Details) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2023 | Oct. 01, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Borrowing discount rate | 5% | |
Lease effective date | Jan. 11, 2021 | |
Deferred rent | $ 166 | |
Short-term operating lease | 625 | $ 620 |
Long-term operating lease | $ 2,156 | $ 2,282 |
Commitments and Contingencies_2
Commitments and Contingencies (Details Narrative) | 3 Months Ended | |
Dec. 31, 2023 USD ($) ft² | Jan. 01, 2023 USD ($) | |
Area of land | ft² | 93,967 | |
Facility Lease Agreement [Member] | ||
Operating lease cost | $ 217,000 | $ 214,000 |
Office equipment rent | $ 5,000 | $ 5,000 |
Optex Systems (OPX) - Richardson, Texas [Member] | ||
Area of land | ft² | 49,100 | |
Lease description | the monthly base rent was $24.6 thousand through March 31, 2021. On January 11, 2021 the Company executed a sixth amendment extending the terms of the lease for eighty-six (86) months, commencing on April 1, 2021 and ending on May 31, 2028. The initial base rent is set at $25.3 thousand and escalates 3% on April 1 each year thereafter. | |
Expiration date | May 31, 2028 | |
Maintenance fee | $ 13,100 | |
Applied Optics Center (AOC) - Dallas [Member] | ||
Area of land | ft² | 44,867 | |
Lease description | the monthly base rent was $21.9 thousand through the end of the lease. On January 11, 2021 the Company executed a first amendment extending the terms of the lease for eighty-six (86) months, commencing on November 1, 2021 and ending on December 31, 2028. The initial base rent is set at $23.6 thousand as of January 1, 2022 and escalates 2.75% on January 1 each year thereafter. The initial term included 2 months of rent abatement for November and December of 2021. The amendment provides for a five-year renewal option at the end of the lease term at the greater of the then “prevailing rental rate” or the then current base rental rate. Our obligations to make payments under the lease are secured by a $125,000 standby letter of credit. | |
Expiration date | Dec. 31, 2028 | |
Maintenance fee | $ 125,000 | |
Additional CAM | $ 9,300 |
Debt Financing (Details Narrati
Debt Financing (Details Narrative) - USD ($) | 3 Months Ended | |||||||
Mar. 22, 2023 | Nov. 21, 2022 | Nov. 20, 2022 | Apr. 12, 2022 | Apr. 16, 2020 | Dec. 31, 2023 | Jan. 01, 2023 | Oct. 01, 2023 | |
Line of Credit Facility [Line Items] | ||||||||
Interest expense | $ 7,000 | |||||||
Revolving Credit Facility [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Line of credit principal amount | $ 2,000,000 | $ 1,125,000 | ||||||
Line of credit facility replace | $ 2,000,000 | |||||||
Debt change in ownership percentage | 25% | |||||||
Revolving Credit Facility [Member] | Prime Rate [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Line of credit interest percentage | 0.25% | |||||||
Revolving Credit Facility [Member] | BBVA [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Line of credit principal amount | $ 2,250,000 | $ 2,250,000 | ||||||
Maturity date | Apr. 15, 2022 | |||||||
Line of credit origination fee percentage | 3% | |||||||
Description of term period | There were commercially standard covenants including, but not limited to, covenants regarding maintenance of corporate existence, not incurring other indebtedness except trade debt, not changing more than 25% stock ownership of Borrowers, and a Fixed Charge Coverage Ratio of 1.25:1, with the Fixed Charge Coverage Ratio defined as (earnings before taxes, amortization, depreciation, amortization and rent expense less cash taxes, distribution, dividends and fair value of warrants) divided by (current maturities on long term debt plus interest expense plus rent expense). | |||||||
Litigation fee | $ 10,000 | |||||||
Line of credit decrease amount | $ 1,125,000 | |||||||
Maturity date description | the maturity date was extended from April 15, 2022 to April 15, 2023. | |||||||
Interest expense | $ 0 | |||||||
Revolving Credit Facility [Member] | BBVA [Member] | Prime Rate [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Line of credit interest percentage | 0.25% | |||||||
Revolving Credit Facility [Member] | Texas Capital Bank [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Line of credit principal amount | $ 3,000,000 | |||||||
Maturity date | May 22, 2025 | |||||||
Description of term period | The Loan Agreement also requires the Borrowers to maintain a fixed charge coverage ratio of at least 1.25:1 and a total leverage ratio of 3.00:1. | |||||||
Debt instrument, interest rate | 8.10% | |||||||
Letter of credit | $ 125,000 | |||||||
Revolving Credit Facility [Member] | Texas Capital Facility [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Interest expense | $ 7,000 | |||||||
Line of credit facility, Fair value of amount outstanding | $ 0 | $ 1,000,000 |
Schedule of Aggregate Non-veste
Schedule of Aggregate Non-vested Restricted Stock and Restricted Stock Units Granted and Performance Shares (Details) - $ / shares | 3 Months Ended | 12 Months Ended | |
Oct. 02, 2023 | Dec. 31, 2023 | Oct. 01, 2023 | |
Restricted Stock Units (RSUs) [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Shares, outstanding | 39,000 | 39,000 | 66,000 |
Weighted average grant date fair value, outstanding | $ 3.06 | $ 3.06 | $ 1.52 |
Shares, granted | 42,000 | ||
Weighted average grant date fair value, granted | $ 3.05 | ||
Shares, vested | (66,000) | ||
Weighted average grant date fair value, vested | $ 1.52 | ||
Shares, forfeited | (3,000) | ||
Weighted average grant date fair value, forfeited | $ 3 | ||
Shares, outstanding | 39,000 | 39,000 | |
Weighted average grant date fair value, outstanding | $ 3.06 | $ 3.06 | |
Restricted Stock [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Shares, outstanding | 120,000 | 120,000 | 180,000 |
Weighted average grant date fair value, outstanding | $ 2.20 | $ 2.20 | $ 1.75 |
Shares, granted | 40,000 | ||
Weighted average grant date fair value, granted | $ 3.09 | ||
Shares, vested | (60,000) | ||
Weighted average grant date fair value, vested | $ 1.75 | ||
Shares, forfeited | (40,000) | ||
Weighted average grant date fair value, forfeited | $ 1.75 | ||
Shares, outstanding | 120,000 | 120,000 | |
Weighted average grant date fair value, outstanding | $ 2.20 | $ 2.20 | |
Performance Shares [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Shares, outstanding | 135,000 | 135,000 | |
Weighted average grant date fair value, outstanding | $ 2.37 | $ 2.37 | |
Shares, granted | 135,000 | ||
Weighted average grant date fair value, granted | $ 2.37 | ||
Shares, vested | (27,000) | (81,000) | |
Weighted average grant date fair value, vested | $ 2.57 | ||
Shares, forfeited | |||
Weighted average grant date fair value, forfeited | |||
Shares, outstanding | 54,000 | 135,000 | |
Weighted average grant date fair value, outstanding | $ 2.06 | $ 2.37 |
Schedule of Assumptions and Res
Schedule of Assumptions and Results for the Monte Carlo Simulation (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |||||
Dec. 31, 2023 | Dec. 29, 2023 | Dec. 22, 2023 | Oct. 02, 2023 | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Performance period start | Oct. 02, 2023 | |||||
Performance period start | Oct. 01, 2028 | |||||
Term of simulation | [1] | 5 years 5 months 1 day | ||||
Time steps in simulation | 1,365 | |||||
Time steps per year | 252 | |||||
Common share price at valuation date | $ 3.04 | [2] | $ 5.35 | $ 4.45 | $ 3.70 | |
Volatility (annual) | [3] | 50% | ||||
Risk-free rate (annual) | [4] | 3.37% | ||||
Cost of equity | [5] | 11.50% | ||||
Dividend yield | [6] | 0% | ||||
Share-Based Payment Arrangement, Tranche One [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Number of performance shares in the tranche | [1] | 27,000 | ||||
Fair value of one performance share | [7] | $ 2.75 | ||||
Total fair value of tranch | $ 74,345 | |||||
Derived service period | [7] | 8 months 15 days | ||||
Share-Based Payment Arrangement, Tranche Two [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Number of performance shares in the tranche | [1] | 27,000 | ||||
Fair value of one performance share | [7] | $ 2.58 | ||||
Total fair value of tranch | $ 69,742 | |||||
Derived service period | [7] | 1 year 1 month 17 days | ||||
Share-Based Payment Arrangement, Tranche Three [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Number of performance shares in the tranche | [1] | 27,000 | ||||
Fair value of one performance share | [7] | $ 2.39 | ||||
Total fair value of tranch | $ 64,446 | |||||
Derived service period | [7] | 1 year 7 months 6 days | ||||
Share Based Compensation Award Tranche Four [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Number of performance shares in the tranche | [1] | 27,000 | ||||
Fair value of one performance share | [7] | $ 2.18 | ||||
Total fair value of tranch | $ 58,819 | |||||
Derived service period | [7] | 2 years 21 days | ||||
Share Based Compensation Award Tranche Five [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Number of performance shares in the tranche | [1] | 27,000 | ||||
Fair value of one performance share | [7] | $ 1.93 | ||||
Total fair value of tranch | $ 52,238 | |||||
Derived service period | [7] | 2 years 5 months 23 days | ||||
[1]Based on the terms of the Performance Shares agreement issued by the Company on May 3, 2023.[2]Closing price of OPXS shares on the Valuation Date, as obtained via S&P Capital IQ.[3]Based on historical volatility of OPXS and comparable public companies.[4]Interest rate for US Treasury commensurate with the Performance Shares holding period, as of the Valuation Date, as obtained via S&P Capital IQ.[5]Estimated cost of equity for OPXS as of the Valuation Date.[6]Expected dividends provided by management.[7]Based on Monte Carlo simulation. |
Schedule of Unrecognized Compen
Schedule of Unrecognized Compensation Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | Oct. 01, 2023 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Recognized Compensation Expense | $ 113 | $ 35 | |
Unrecognized Compensation Expense | 360 | $ 473 | |
Restricted Stock [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Recognized Compensation Expense | 41 | 26 | |
Unrecognized Compensation Expense | 132 | 173 | |
Performance Shares [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Recognized Compensation Expense | 64 | ||
Unrecognized Compensation Expense | 148 | 212 | |
Restricted Stock Units (RSUs) [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Recognized Compensation Expense | 8 | $ 9 | |
Unrecognized Compensation Expense | $ 80 | $ 88 |
Stock Based Compensation (Detai
Stock Based Compensation (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||||||||||||||
Jan. 01, 2025 | Jan. 08, 2024 | Jan. 01, 2024 | Dec. 29, 2023 | Dec. 22, 2023 | Oct. 24, 2023 | Oct. 02, 2023 | Aug. 14, 2023 | May 09, 2023 | May 09, 2023 | May 03, 2023 | May 01, 2023 | Jan. 04, 2023 | Jan. 04, 2022 | Jan. 01, 2022 | Dec. 01, 2021 | Apr. 30, 2020 | Feb. 17, 2020 | Jan. 02, 2019 | Dec. 31, 2023 | Oct. 01, 2023 | Feb. 16, 2023 | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||||||||||||||||||
Share price | $ 5.35 | $ 4.45 | $ 3.70 | $ 3.04 | [1] | ||||||||||||||||||
Amortization of grant date fair market value | $ 124,000 | $ 320,000 | |||||||||||||||||||||
Number of shares outstanding | 40,000 | ||||||||||||||||||||||
Vesting period of shares | 5 years | 5 years | |||||||||||||||||||||
Unrecognized compensation cost | $ 360,000 | $ 473,000 | |||||||||||||||||||||
Common Stock [Member] | |||||||||||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||||||||||||||||||
Performance share, description | performance period beginning on October 2, 2023, the average VWAP per share of common stock over a 30 consecutive trading day period equals or exceeds $3.70, $4.45, $5.35, $6.40, or $7.70. | ||||||||||||||||||||||
Employment Agreement [Member] | |||||||||||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||||||||||||||||||
Employment agreement description | The updated employment agreement also served to amend Mr. Schoening’s RSU Agreement, dated January 2, 2019, by changing the third and final vesting date for the restricted stock units granted under such agreement from January 1, 2022 to the “change of control date,” that being the first of the following to occur with respect to the Company: (i) any “Person,” as that term is defined in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), with certain exclusions, is or becomes the “Beneficial Owner” (as that term is defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing fifty percent (50%) or more of the combined voting power of the Company’s then outstanding securities; or (ii) the Company is merged or consolidated with any other corporation or other entity, other than: (A) a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) more than fifty percent (50%) of the combined voting power of the voting securities of the Company or such surviving entity outstanding immediately after such merger or consolidation; or (B) the Company engages in a merger or consolidation effected to implement a recapitalization of the Company (or similar transaction) in which no “Person” (as defined above) acquires fifty percent (50%) or more of the combined voting power of the Company’s then outstanding securities. The amended RSU Agreement contains certain exceptions to the definition of change of control | ||||||||||||||||||||||
Restricted Stock [Member] | |||||||||||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||||||||||||||||||
Restricted stock, grant | 40,000 | ||||||||||||||||||||||
Number of shares vested | 60,000 | ||||||||||||||||||||||
Number of shares outstanding | 120,000 | ||||||||||||||||||||||
Unrecognized compensation cost | $ 132,000 | $ 173,000 | |||||||||||||||||||||
Restricted Stock Units (RSUs) [Member] | |||||||||||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||||||||||||||||||
Restricted stock, grant | 42,000 | ||||||||||||||||||||||
Number of shares vested | 66,000 | ||||||||||||||||||||||
Unrecognized compensation cost | $ 80,000 | $ 88,000 | |||||||||||||||||||||
Number of shares forfeited | $ 3,000 | ||||||||||||||||||||||
Performance Shares [Member] | |||||||||||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||||||||||||||||||
Restricted stock, grant | 135,000 | ||||||||||||||||||||||
Number of shares vested | 27,000 | 81,000 | |||||||||||||||||||||
Unrecognized compensation cost | $ 148,000 | $ 212,000 | |||||||||||||||||||||
Issuance of shares | 21,060 | ||||||||||||||||||||||
Amount of tax withholding obligation | $ 91,000 | $ 27,000 | |||||||||||||||||||||
Performance Shares [Member] | Subsequent Event [Member] | |||||||||||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||||||||||||||||||
Number of shares vested | 39,563 | ||||||||||||||||||||||
Performance Shares [Member] | Share-Based Payment Arrangement, Tranche Two [Member] | |||||||||||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||||||||||||||||||
Number of shares vested | 27,000 | ||||||||||||||||||||||
Performance Shares [Member] | Share-Based Payment Arrangement, Tranche Three [Member] | |||||||||||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||||||||||||||||||
Number of shares vested | 27,000 | ||||||||||||||||||||||
Chief Executive Officer [Member] | |||||||||||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||||||||||||||||||
Restricted stock, grant | 100,000 | ||||||||||||||||||||||
Issuance of shares | 46,432 | ||||||||||||||||||||||
Restricted stock value shares issued net | $ 58,000 | ||||||||||||||||||||||
Number of shares vested | 66,000 | ||||||||||||||||||||||
Chief Financial Officer [Member] | |||||||||||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||||||||||||||||||
Restricted stock, grant | 35,000 | ||||||||||||||||||||||
Issuance of shares | 23,216 | ||||||||||||||||||||||
Restricted stock value shares issued net | $ 19,000 | ||||||||||||||||||||||
Number of shares vested | 33,000 | ||||||||||||||||||||||
Three Independent Directors [Member] | |||||||||||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||||||||||||||||||
Restricted shares description | an effective date of January 1, 2020, in addition to granting 100,000 shares of restricted stock to each independent director which vest at a rate of 20% per year (20,000 shares) each January 1st through January 1, 2025. | ||||||||||||||||||||||
Shares issued payment arrangement, before forfeiture | 300,000 | ||||||||||||||||||||||
Shares issued, value payment arrangement, before forfeiture | $ 525,000 | ||||||||||||||||||||||
Stock price per share | $ 1.75 | ||||||||||||||||||||||
Three Independent Directors [Member] | Minimum [Member] | |||||||||||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||||||||||||||||||
Share based compensation | $ 22,000 | ||||||||||||||||||||||
Three Independent Directors [Member] | Maximum [Member] | |||||||||||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||||||||||||||||||
Share based compensation | $ 36,000 | ||||||||||||||||||||||
Director [Member] | |||||||||||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||||||||||||||||||
Number of shares vested | 60,000 | ||||||||||||||||||||||
Independent Board [Member] | |||||||||||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||||||||||||||||||
Restricted stock, grant | 40,000 | ||||||||||||||||||||||
Restricted stock, vesting rate | 50% | ||||||||||||||||||||||
Independent Board [Member] | Forecast [Member] | |||||||||||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||||||||||||||||||
Restricted stock, vesting rate | 50% | ||||||||||||||||||||||
One New Employee [Member] | Restricted Stock Units (RSUs) [Member] | |||||||||||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||||||||||||||||||
Restricted stock, grant | 3,000 | ||||||||||||||||||||||
Number of shares grant fair value | $ 11 | ||||||||||||||||||||||
2016 Restricted Stock Unit Plan [Member] | |||||||||||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||||||||||||||||||
Number of shares outstanding | 49,500 | ||||||||||||||||||||||
Unrecognized compensation cost | $ 5,000 | ||||||||||||||||||||||
2016 Restricted Stock Unit Plan [Member] | Chief Executive Officer [Member] | |||||||||||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||||||||||||||||||
Restricted stock, grant | 150,000 | ||||||||||||||||||||||
Amortization of grant date fair market value | $ 264,000 | ||||||||||||||||||||||
2016 Restricted Stock Unit Plan [Member] | Chief Financial Officer [Member] | |||||||||||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||||||||||||||||||
Restricted stock, grant | 50,000 | ||||||||||||||||||||||
2016 Restricted Stock Unit Plan [Member] | Bill Bates [Member] | |||||||||||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||||||||||||||||||
Restricted stock, grant | 50,000 | ||||||||||||||||||||||
Vesting percentage, next twelve months | 34% | 34% | |||||||||||||||||||||
Share price | $ 2.13 | ||||||||||||||||||||||
2016 Restricted Stock Unit Plan [Member] | Bill Gates [Member] | |||||||||||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||||||||||||||||||
Vesting percentage, thereafter | 33% | 33% | |||||||||||||||||||||
Share price | $ 1.32 | ||||||||||||||||||||||
Amortization of grant date fair market value | $ 107,000 | ||||||||||||||||||||||
2023 Equity Incentive Plan [Member] | Eleven Employees [Member] | |||||||||||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||||||||||||||||||
Restricted stock, grant | 39,000 | ||||||||||||||||||||||
Number of shares outstanding | 39,000 | ||||||||||||||||||||||
Forfeiture rate | 23.10% | ||||||||||||||||||||||
Number of shares grant fair value | $ 90,000 | ||||||||||||||||||||||
Restricted stock vest rate percentage | 33.33 | ||||||||||||||||||||||
[1]Closing price of OPXS shares on the Valuation Date, as obtained via S&P Capital IQ. |
Stockholders_ Equity (Details N
Stockholders’ Equity (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended | |||||
Oct. 24, 2023 | May 09, 2023 | Apr. 30, 2020 | Dec. 31, 2023 | Jan. 01, 2023 | Oct. 01, 2023 | Sep. 22, 2021 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period | 5 years | 5 years | |||||
Common stock shares, issued | 6,823,693 | 6,763,070 | |||||
Common stock shares, outstanding | 6,823,693 | 6,763,070 | |||||
Performance Shares [Member] | |||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Stock Issued During Period, Shares, New Issues | 21,060 | ||||||
Karen Hawkins [Member] | |||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Shares Issued in Period | 60,623 | ||||||
Stock Issued During Period, Shares, New Issues | 20,377 | ||||||
Karen Hawkins [Member] | Performance Shares [Member] | |||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross | 81,000 | ||||||
Danny Schoening [Member] | Performance Shares [Member] | |||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period | 3 months | ||||||
Common Stock [Member] | |||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Common Stock Repurchase, shares | 0 | 0 | |||||
Stock Repurchase Plan [Member] | |||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Stock repurchase program authorized amount | $ 1,000,000 | ||||||
Dividend Paid [Member] | |||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Dividends declared | $ 0 | $ 0 |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) - Subsequent Event [Member] - USD ($) $ in Thousands | Jan. 18, 2024 | Jan. 01, 2024 | Jan. 08, 2024 |
Subsequent Event [Line Items] | |||
Cash on hand | $ 1,000 | ||
Individual Board Members [Member] | |||
Subsequent Event [Line Items] | |||
Number of shares restricted | 60,000 | ||
Danny Schoening [Member] | |||
Subsequent Event [Line Items] | |||
Incentive bonus, amount | $ 76 | ||
Karen Hawkins [Member] | |||
Subsequent Event [Line Items] | |||
Incentive bonus, amount | $ 56 |