BK Technologies (BKTI) 10-Q 13 Nov 13 2013 Q3 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
	Sep. 30, 2013	Oct. 27, 2013
Document And Entity Information	'	'
Entity Registrant Name	'RELM WIRELESS CORP	'
Entity Central Index Key	'0000002186	'
Document Type	'10-Q	'
Document Period End Date	30-Sep-13	'
Amendment Flag	'false	'
Current Fiscal Year End Date	'--12-31	'
Is Entity a Well-known Seasoned Issuer?	'No	'
Is Entity a Voluntary Filer?	'No	'
Is Entity's Reporting Status Current?	'Yes	'
Entity Filer Category	'Non-accelerated Filer	'
Entity Common Stock, Shares Outstanding	'	13,580,471
Document Fiscal Period Focus	'Q3	'
Document Fiscal Year Focus	'2013	'

Condensed_Consolidated_Balance

Condensed Consolidated Balance Sheets (Unaudited) (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Current assets:	'	'
Cash and cash equivalents	$7,630	$6,581
Trade accounts receivable (net of allowance for doubtful accounts of $39 at September 30, 2013 and December 31, 2012, respectively)	3,783	2,062
Inventories, net	11,444	13,345
Deferred tax assets	3,372	4,429
Prepaid expenses and other current assets	1,371	915
Total current assets	27,600	27,332
Property, plant and equipment, net	1,018	1,113
Deferred tax assets, net	3,487	2,978
Capitalized software, net	1,731	2,207
Other assets	323	330
Total assets	34,159	33,960
Current liabilities:	'	'
Accounts payable	938	1,132
Accrued compensation and related taxes	874	1,485
Accrued warranty expense	281	267
Accrued other expenses and other current liabilities	200	166
Note payable	0	18
Deferred revenue	372	627
Total current liabilities	2,665	3,695
Deferred revenue	124	81
Total liabilities	2,789	3,776
Stockholders' equity:	'	'
Preferred stock; $1.00 par value; 1,000,000 authorized shares none issued or outstanding.	0	0
Common stock; $.60 par value; 20,000,000 authorized shares:13,580,471 and 13,545,482 issued and outstanding shares at September 30, 2013 and December 31, 2012, respectively	8,148	8,127
Additional paid-in capital	24,653	24,604
Accumulated deficit	-1,431	-2,547
Total stockholders' equity	31,370	30,184
Total liabilities and stockholders' equity	$34,159	$33,960

Condensed_Consolidated_Balance1

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, except Share data, unless otherwise specified
ASSETS	'	'
Allowance for doubtful accounts, net	$39	$39
Stockholders equity:	'	'
Preferred stock, par value	$1	$1
Preferred stock, authorized shares	1,000,000	1,000,000
Preferred stock, issued shares	0	0
Preferred stock, outstanding shares	0	0
Common stock, par value	$0.60	$0.60
Common stock, authorized shares	20,000,000	20,000,000
Common stock, issued shares	13,580,471	13,545,482
Common stock, outstanding shares	13,580,471	13,545,482

Condensed_Consolidated_Stateme

Condensed Consolidated Statements of Operations (Unaudited) (USD $)	3 Months Ended		9 Months Ended
In Thousands, except Share data, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Income Statement [Abstract]	'	'	'	'
Sales, net	$7,600	$8,112	$20,864	$21,809
Expenses	'	'	'	'
Cost of products	4,328	4,084	11,640	11,473
Selling, general and administrative	2,505	2,633	7,580	7,598
Total expenses	6,833	6,717	19,220	19,071
Operating income	767	1,395	1,644	2,738
Other income (expense):	'	'	'	'
Net interest expense	0	0	0	-3
Other income (expense)	0	-3	11	-10
Total other income (expense)	0	-3	11	-13
Income before income taxes	767	1,392	1,655	2,725
Income tax expense	-253	-508	-539	-996
Net income	$514	$884	$1,116	$1,729
Net earnings per share-basic:	$0.04	$0.07	$0.08	$0.13
Net earnings per share-diluted:	$0.04	$0.07	$0.08	$0.13
Weighted average shares outstanding-basic	13,580,471	13,545,482	13,563,486	13,541,250
Weighted average shares outstanding-diluted	13,648,570	13,549,146	13,619,676	13,543,631

Condensed_Consolidated_Stateme1

Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012
Operating activities	'	'
Net income	$1,116	$1,729
Adjustments to reconcile net income to net cash provided by operating activities:	'	'
Allowance for doubtful accounts	0	-5
Inventories reserve	108	6
Deferred tax obligation	548	938
Depreciation and amortization	1,119	975
Share-based compensation expense	36	23
Changes in operating assets and liabilities:	'	'
Accounts receivable	-1,721	-449
Inventories	1,793	-174
Prepaid expenses and other current assets	-456	-411
Other assets	7	-119
Accounts payable	-194	795
Accrued compensation and related taxes	-611	739
Accrued warranty expense	14	-24
Note payable	-18	35
Deferred revenue	-212	55
Accrued other expenses and other current liabilities	34	-87
Net cash provided by operating activities	1,563	4,026
Investing activities	'	'
Purchases of property, plant and equipment	-208	-349
Capitalized software	-340	-160
Net cash used in investing activities	-548	-509
Financing activities	'	'
Proceeds from issuance of common stock	34	22
Cash provided by financing activities	34	22
Net change in cash and cash equivalents	1,049	3,539
Cash and cash equivalents, beginning of period	6,581	2,693
Cash and cash equivalents, end of period	7,630	6,232
Supplemental disclosure	'	'
Cash paid for interest	0	3
Income tax paid	0	62
Non-cash financing activity	'	'
Cashless exercise of stock options and related conversion of net shares to stockholders' equity	$9	$4

1_Condensed_Consolidated_Finan

1. Condensed Consolidated Financial Statements	9 Months Ended
	Sep. 30, 2013
Notes to Financial Statements	'
NOTE 1 - Condensed Consolidated Financial Statements	'
	The condensed consolidated balance sheets as of September 30, 2013 and December 31, 2012, the condensed consolidated statements of operations for the three and nine months ended September 30, 2013 and 2012 and the condensed consolidated statements of cash flows for the nine months ended September 30, 2013 and 2012 have been prepared by RELM Wireless Corporation (the “Company”), and are unaudited.  In the opinion of management, all adjustments, which include normal recurring adjustments, necessary for a fair presentation have been made.  The condensed consolidated balance sheet at December 31, 2012 has been derived from the Company’s audited consolidated financial statements at that date.
	Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted.  It is suggested that these condensed consolidated financial statements be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2012, as filed with the Securities and Exchange Commission.  The results of operations for the three and nine months ended September 30, 2013 are not necessarily indicative of the operating results for a full year.
	Recent Accounting Pronouncements
	There have been no recent accounting pronouncements or changes in accounting pronouncements that impacted the three and nine month periods ended September 30, 2013 and 2012 or which are expected to impact future periods, which were not previously disclosed in prior periods.

2_Allowance_for_Doubtful_Accou

2. Allowance for Doubtful Accounts	9 Months Ended
	Sep. 30, 2013
Notes to Financial Statements	'
NOTE 2 - Allowance for Doubtful Accounts	'
	The allowance for doubtful accounts on trade receivables was approximately $39 on gross trade receivables of $3,822 at September 30, 2013 and $39 on gross receivables of $2,101 at December 31, 2012.  This allowance is used to state trade receivables at a net realizable value or the amount that the Company estimates will be collected of the Company’s gross receivables.

3_Inventories_net

3. Inventories, net	9 Months Ended
	Sep. 30, 2013
Notes to Financial Statements	'
NOTE 3 - Inventories, net	'
	The components of inventory, net of reserves for slow-moving, excess or obsolete inventory, consist of the following:
		30-Sep-13		December 31,
				2012
	Finished goods	$	3,970	$	4,316
	Work in process		5,077		6,278
	Raw materials		2,397		2,751
		$	11,444	$	13,345
	Reserves for slow-moving, excess, or obsolete inventory were approximately $2,940 at September 30, 2013, compared with approximately $2,832 at December 31, 2012. The reserve for slow-moving, excess, or obsolete inventory is used to state the Company’s inventories at the lower of cost or market.

4_Income_Taxes

4. Income Taxes	9 Months Ended
	Sep. 30, 2013
Notes to Financial Statements	'
NOTE 4 - Income Taxes	'
	Income tax expense totaling approximately $253 and $539 has been recorded for the three and nine months ended September 30, 2013.
	As of September 30, 2013 and December 31, 2012, the Company’s net deferred tax assets totaled approximately $6,859 and $7,407, respectively, and are primarily composed of net operating loss carry forwards (NOLs).  These NOLs total $8,263 for federal and $15,430 for state purposes, with expirations starting in 2018 through 2030.
	In order to fully utilize the net deferred tax assets, the Company will need to generate sufficient taxable income in future years to utilize its NOLs prior to their expiration.  ASC Topic 740, “Income Taxes”, requires the Company to analyze all positive and negative evidence to determine if, based on the weight of available evidence, the Company is more likely than not to realize the benefit of the net deferred tax assets. The recognition of the net deferred tax assets and related tax benefits is based upon the Company’s conclusions regarding, among other considerations, estimates of future earnings based on information currently available, current and anticipated customers, contracts and product introductions, as well as historical operating results and certain tax planning strategies.
	The Company has evaluated the available evidence and the likelihood of realizing the benefit of its net deferred tax assets.  From its evaluation the Company has concluded that based on the weight of available evidence, it is more likely than not that the Company will not realize a portion of the benefit of its net deferred tax assets recorded at September 30, 2013.  Accordingly, for the nine months ended September 30, 2013, the Company reduced its  valuation allowance by $14 resulting in a total valuation allowance of approximately $366 for the portion of benefit of its net deferred tax assets that more likely than not will not be realized.  The Company cannot presently estimate what, if any, changes to the valuation of its deferred tax assets may be deemed appropriate in the future.  If the Company incurs future losses, it may be necessary to record additional valuation allowance related to the deferred tax assets recognized as of September 30, 2013.

5_Capitalized_Software

5. Capitalized Software	9 Months Ended
	Sep. 30, 2013
Notes to Financial Statements	'
NOTE 5 - Capitalized Software	'
	The Company accounts for the costs of software within its products in accordance with ASC Topic 985-20 “Costs of Software to be Sold, Leased or Marketed”, under which certain software costs incurred subsequent to the establishment of technological feasibility are capitalized and amortized over the estimated lives of the related products. The Company determines technological feasibility to be established upon the internal release of a detailed program design as specified by Topic 985-20. Upon the general release of the product to customers, development costs for that product are amortized over periods not exceeding five years, based on current and future revenue of the product. For the three and nine months ended September 30, 2013, the Company recorded capitalized software of $51 and $340, respectively.  For the three and nine months ended September 30, 2013, the Company’s amortization cost was approximately $272 and $816, respectively, compared with $221 and $661 for the same periods last year.  Net capitalized software costs totaled $1,731 and $2,207 as of September 30, 2013 and December 31, 2012, respectively.

6_Stockholders_Equity

6. Stockholders' Equity	9 Months Ended
	Sep. 30, 2013
Notes to Financial Statements	'
NOTE 6 - Stockholders' Equity	'
	The changes in consolidated stockholders’ equity for the nine months ended September 30, 2013 are as follows:
		Common Stock Shares		Common Stock Amount		Additional Paid-In Capital		Accumulated Deficit			Total
	Balance at December 31, 2012		13,545,482	$	8,127	$	24,604	$	(2,547	)	$	30,184
	Common stock option exercise and issued		34,989		21		13		-			34
	Share-based compensation expense		−		−		36		−			36
	Net income		−		−		−		1,116			1,116
	Balance at September 30, 2013		13,580,471	$	8,148	$	24,653	$	(1,431	)	$	31,370
	On March 8, 2013, the Company’s Board of Directors approved up to $2.5 million of share repurchases through December 31, 2013.  The repurchases were authorized to be made from time to time through a variety of methods, including open market repurchases and privately negotiated transactions, and would be funded from available cash.  There can be no assurance as to the amount, timing or prices of repurchases.  The specific timing and amount of repurchases, if any, will vary based upon market conditions, share price and other factors.  The repurchase program may be suspended, modified or terminated by the Board at any time.  During the period ended September 30, 2013, the Company did not repurchase any of its shares.

7_Income_per_Share

7. Income per Share	9 Months Ended
	Sep. 30, 2013
Notes to Financial Statements	'
NOTE 7 - Income per Share	'
	The following table sets forth the computation of basic and diluted income per share:
		Three Months Ended				Nine months Ended
		30-Sep-13		30-Sep-12		30-Sep-13		30-Sep-12
	Numerator:
	Net  income (numerator for basic and diluted earnings per share)	$	514	$	884	$	1,116	$	1,729
	Denominator:
	Denominator for basic earnings per share weighted average shares		13,580,471		13,545,482		13,563,486		13,541,250
	Effect of dilutive securities:
	Options		68,099		3,664		56,190		2,381
	Denominator
	Denominator for diluted earnings per share weighted average shares		13,648,570		13,549,146		13,619,676		13,543,631
	Basic income per share	$	0.04	$	0.07	$	0.08	$	0.13
	Diluted income per share	$	0.04	$	0.07	$	0.08	$	0.13
	A total of  287,444 shares related to options are not included in the computation of diluted income per share for the three and nine months ended September 30, 2013 because to do so would have been anti-dilutive for these periods.

8_NonCash_ShareBased_Employee_

8. Non-Cash Share-Based Employee Compensation	9 Months Ended
	Sep. 30, 2013
Notes to Financial Statements	'
NOTE 8 - Non-Cash Share-Based Employee Compensation	'
	The Company has employee and non-employee director stock option programs.  Related to these programs, and in accordance with ASC Topic 718, “Compensation-Stock Compensation”, the Company recorded non-cash share-based employee compensation expense of $3 and $36, respectively, for the three and nine months ended September 30, 2013, compared with $5 and $23 for the same periods last year.  The Company considers its non-cash share-based employee compensation expenses as a component of selling, general and administrative expenses ($3 and $36 for the three and nine months ended September 30, 2013, respectively, compared with $5 and $23 for the same periods last year).  There was no non-cash share–based employee compensation expense capitalized as part of capital expenditures or inventory for the periods presented.
	The Company uses the Black-Scholes-Merton option valuation model to calculate the fair value of a stock option grant.  The non-cash share-based employee compensation expense recorded in the three and nine months ended September 30, 2013 was calculated using certain assumptions.  For a description of such assumptions, reference is made to Note 10 (Share-Based Employee Compensation) of the Company’s Consolidated Financial Statements included in its Annual Report on Form 10-K for the fiscal year ended December 31, 2012.
	A summary of stock option activity under the Company’s stock option plans as of September 30, 2013, and changes during the nine months ended September 30, 2013 are presented below:
	As of January 1, 2013	Stock Options		Wgt. Avg. Exercise		Wgt. Avg. Remaining Contractual Life (Years)		Wgt. Avg. Grant Date Fair Value($)		Aggregate Intrinsic
				Price ($)				Per Share		Value ($)
				Per Share
	Outstanding		460,944		3.47		-		2.29		-
	Vested		435,944		3.55		-		2.38		-
	Nonvested		25,000		2.03		-		0.68		-
	Period activity
	Issued		90,000		2.59		-		0.98		-
	Exercised		55,000		1.9		-		1.15		-
	Forfeited		-		-		-		-		-
	Expired		5,000		4.5		-		2.68		-
	As of September 30, 2013
	Outstanding		490,944		3.47		4.47		2.17		159,250
	Vested		419,275		3.61		4.01		2.39		141,816
	Nonvested		71,669		2.68		7.15		0.87		17,434

9_Commitments_and_Contingencie

9. Commitments and Contingencies	9 Months Ended
	Sep. 30, 2013
Notes to Financial Statements	'
NOTE 9 - Commitments and Contingencies	'
	Legal Proceedings
	From time to time the Company may be involved in various claims and legal actions arising in the ordinary course of its business. There were no pending material claims or legal matters as of September 30, 2013.
	Other
	As of September 30, 2013, the Company had purchase orders to suppliers of approximately $3,195.
	Significant Customers
	Sales to United States government agencies represented approximately $2,946 (38.8%) and $7,578 (36.3%) of the Company’s total sales for the three and nine months ended September 30, 2013, respectively, compared with approximately $4,637 (57.2%) and $9,834 (45.1%) for the same periods last year.  Accounts receivable from agencies of the United States government were $927 as of September 30, 2013 compared with approximately $2,256 at the same date last year.

10_Debt

10. Debt	9 Months Ended
	Sep. 30, 2013
Notes to Financial Statements	'
NOTE 10 - Debt	'
	The Company has a secured revolving credit facility with Silicon Valley Bank with maximum borrowing availability of $5,000 (subject to a borrowing base) and a maturity date of December 31, 2014.  As of September 30, 2013, the Company was in compliance with all covenants under the loan and security agreement, as amended, governing this revolving credit facility.   For a description of such covenants and the other terms and conditions of the loan and security agreement, as amended, reference is made to Note 6 (Debt) of the Company’s Consolidated Financial Statements included in its Annual Report on Form 10-K for the fiscal year ended December 31, 2012.  As of September 30, 2013, there were no borrowings outstanding under the revolving credit facility and there was approximately $3,672 of borrowing available.

2_Significant_Events_and_Trans

2. Significant Events and Transactions (Policies)	9 Months Ended
	Sep. 30, 2013
Significant Events And Transactions Policies	'
Recent Accounting Pronouncements	'
	There have been no recent accounting pronouncements or changes in accounting pronouncements that impacted the three and nine month periods ended September 30, 2013 and 2012 or which are expected to impact future periods, which were not previously disclosed in prior periods.

3_Inventories_net_Tables

3. Inventories, net (Tables)	9 Months Ended
	Sep. 30, 2013
Inventories Net Tables	'
Components of inventory	'
		30-Sep-13		December 31,
				2012
	Finished goods	$	3,970	$	4,316
	Work in process		5,077		6,278
	Raw materials		2,397		2,751
		$	11,444	$	13,345

6_Stockholders_Equity_Tables

6. Stockholders' Equity (Tables)	9 Months Ended
	Sep. 30, 2013
Stockholders Equity Tables	'
Changes in consolidated stockholders' equity	'
		Common Stock Shares		Common Stock Amount		Additional Paid-In Capital		Accumulated Deficit			Total
	Balance at December 31, 2012		13,545,482	$	8,127	$	24,604	$	(2,547	)	$	30,184
	Common stock option exercise and issued		34,989		21		13		-			34
	Share-based compensation expense		−		−		36		−			36
	Net income		−		−		−		1,116			1,116
	Balance at September 30, 2013		13,580,471	$	8,148	$	24,653	$	(1,431	)	$	31,370

7_Income_per_ShareTables

7. Income per Share(Tables)	9 Months Ended
	Sep. 30, 2013
Income Per Sharetables	'
Computation of basic and diluted (loss) income per share	'
		Three Months Ended				Nine months Ended
		30-Sep-13		30-Sep-12		30-Sep-13		30-Sep-12
	Numerator:
	Net  income (numerator for basic and diluted earnings per share)	$	514	$	884	$	1,116	$	1,729
	Denominator:
	Denominator for basic earnings per share weighted average shares		13,580,471		13,545,482		13,563,486		13,541,250
	Effect of dilutive securities:
	Options		68,099		3,664		56,190		2,381
	Denominator
	Denominator for diluted earnings per share weighted average shares		13,648,570		13,549,146		13,619,676		13,543,631
	Basic income per share	$	0.04	$	0.07	$	0.08	$	0.13
	Diluted income per share	$	0.04	$	0.07	$	0.08	$	0.13

8_NonCash_ShareBased_Employee_1

8. Non-Cash Share-Based Employee Compensation (Tables)	9 Months Ended
	Sep. 30, 2013
Non-Cash Share-Based Employee Compensation Tables	'
A summary of stock option activity	'
	As of January 1, 2013	Stock Options		Wgt. Avg. Exercise		Wgt. Avg. Remaining Contractual Life (Years)		Wgt. Avg. Grant Date Fair Value($)		Aggregate Intrinsic
				Price ($)				Per Share		Value ($)
				Per Share
	Outstanding		460,944		3.47		-		2.29		-
	Vested		435,944		3.55		-		2.38		-
	Nonvested		25,000		2.03		-		0.68		-
	Period activity
	Issued		90,000		2.59		-		0.98		-
	Exercised		55,000		1.9		-		1.15		-
	Forfeited		-		-		-		-		-
	Expired		5,000		4.5		-		2.68		-
	As of September 30, 2013
	Outstanding		490,944		3.47		4.47		2.17		159,250
	Vested		419,275		3.61		4.01		2.39		141,816
	Nonvested		71,669		2.68		7.15		0.87		17,434

3_Inventories_net_Details

3. Inventories, net (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Inventories Net Details	'	'
Finished goods	$3,970	$4,316
Work in process	5,077	6,278
Raw materials	2,397	2,751
Total Inventory	$11,444	$13,345

6_Stockholders_Equity_Details

6. Stockholders' Equity (Details) (USD $)	3 Months Ended		9 Months Ended
In Thousands, except Share data, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Beginning Balance, Amount	'	'	$30,184	'
Beginning Balance, Shares	'	'	13,545,482	'
Common stock option exercise and issued, Amount	'	'	34	'
Share - based compensation expense	'	'	36	'
Net income	514	884	1,116	1,729
Ending Balance, Amount	31,370	'	31,370	'
Ending Balance, Shares	13,580,471	'	13,580,471	'
CommonStockMember	'	'	'	'
Beginning Balance, Amount	'	'	8,127	'
Beginning Balance, Shares	'	'	13,545,482	'
Common stock option exercise and issued, Amount	'	'	21	'
Common stock option exercise and issued, Shares	'	'	34,989	'
Ending Balance, Amount	8,148	'	8,148	'
Ending Balance, Shares	13,580,471	'	13,580,471	'
AdditionalPaidInCapitalMember	'	'	'	'
Beginning Balance, Amount	'	'	24,604	'
Common stock option exercise and issued, Amount	'	'	13	'
Share - based compensation expense	'	'	36	'
Ending Balance, Amount	24,653	'	24,653	'
AccumulatedDeficitMember	'	'	'	'
Beginning Balance, Amount	'	'	-2,547	'
Net income	'	'	1,116	'
Ending Balance, Amount	($1,431)	'	($1,431)	'

7_Income_per_Share_Details

7. Income per Share (Details) (USD $)	3 Months Ended		9 Months Ended
In Thousands, except Share data, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Numerator:	'	'	'	'
Net income (numerator for basis and diluted earnings per share)	$514	$884	$1,116	$1,729
Denominator:	'	'	'	'
Denominator for basic earnings per share weighted average shares	13,580,471	13,545,482	13,563,486	13,541,250
Effect of dilutive securities:	'	'	'	'
Options	68,099	3,664	56,190	2,381
Denominator	'	'	'	'
Denominator for diluted earnings per share weighted average shares	13,648,570	13,549,146	13,619,676	13,543,631
Basic income per share	$0.04	$0.07	$0.08	$0.13
Diluted income per share	$0.04	$0.07	$0.08	$0.13

8_NonCash_ShareBased_Employee_2

8. Non-Cash Share-Based Employee Compensation (Details) (USD $)	9 Months Ended
	Sep. 30, 2013
Notes to Financial Statements	'
Outstanding Stock Options, beginning	460,944
Vested Stock Options, beginning	435,944
Nonvested Stock Options, beginning	25,000
Issued Stock Options	90,000
Exercised Stock Options	55,000
Forfeited Stock Options	0
Expired Stock Options	5,000
Outstanding Stock Options, ending	490,944
Vested Stock Options, ending	419,275
Nonvested Stock Options, ending	71,669
Outstanding Wgt. Avg. Exercise Price, beginning	$3.47
Vested Wgt. Avg. Exercise Price, beginning	$3.55
Nonvested Wgt. Avg. Exercise Price, beginning	$2.03
Issued Wgt. Avg. Exercise Price	$2.59
Exercised Wgt. Avg. Exercise Price	$1.90
Forfeited Wgt. Avg. Exercise Price	$0
Expired Wgt. Avg. Exercise Price	$4.50
Outstanding Wgt. Avg. Exercise Price, ending	$3.47
Vested Wgt. Avg. Exercise Price, ending	$3.61
Nonvested Wgt. Avg. Exercise Price, ending	$2.68
Outstanding Contractual Life	'4 years 5 months 19 days
Vested Contractual Life	'4 years 4 days
Nonvested Contractual Life	'7 years 1 month 24 days
Outstanding Grant Date Fair Value, beginning	$2.29
Vested Grant Date Fair Value, beginning	$2.38
Nonvested Grant Date Fair Value, beginning	$0.68
Issued Grant Date Fair Value	$0.98
Exercised Grant Date Fair Value	$1.15
Forfeited Grant Date Fair Value	$0
Expired Grant Date Fair Value	$2.68
Outstanding Grant Date Fair Value	$2.17
Vested Grant Date Fair Value	$2.39
Nonvested Grant Date Fair Value	$0.87
Outstanding Aggregate Intrinsic Value	$159,250
Vested Aggregate Intrinsic Value	$141,816
Nonvested Aggregate Intrinsic Value	$17,434

2_Allowance_for_Doubtful_Accou1

2. Allowance for Doubtful Accounts (Details Narrative) (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Allowance For Doubtful Accounts Details Narrative	'	'
Allowance for doubtful accounts on trade receivables	$39	$39
Gross trade receivables	$3,822	$2,101

3_Inventories_net_Details_Narr

3. Inventories, net (Details Narrative) (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Inventories Net Details Narrative	'	'
Reserves for slow-moving, excess, or obsolete inventory	$2,940	$2,832

4_Income_Taxes_Details_Narrati

4. Income Taxes (Details Narrative) (USD $)	3 Months Ended	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2013	Dec. 31, 2012
Income Taxes Details Narrative	'	'	'
Income tax expense	$253	$539	'
Net deferred tax assets	6,859	6,859	7,407
Net Operating loss for federal tax	8,263	8,263	'
Net operating for state tax	15,430	15,430	'
Change in Valuation allowance	'	14	'
Valuation allowance deferred tax asset	$366	$366	'

5_Capitalized_Software_Details

5. Capitalized Software (Details Narrative) (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012
Capitalized Software Details Narrative	'	'	'	'	'
Amortization cost of software	$272	$221	$816	$661	'
Capitalized software	51	'	340	'	'
Net capitalized software costs	$1,731	'	$1,731	'	$2,207

7_Income_per_Share_Details_Nar

7. Income per Share (Details Narrative)	3 Months Ended	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2013
Income Per Share Details Narrative	'	'
Antidilutive Securities Excluded from Earning Per Share	287,444	287,444

8_NonCash_ShareBased_Employee_3

8. Non-Cash Share-Based Employee Compensation (Details Narrative) (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Non-Cash Share-Based Employee Compensation Details Narrative	'	'	'	'
Non-cash share-based employee compensation expense	$3	$5	$36	$23
Non-cash share-based employee compensation expenses as a component of selling, general and administrative expenses	$3	$5	$36	$23

9_Commitments_and_Contingencie1

9. Commitments and Contingencies (Details Narrative) (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012
Purchase orders to suppliers	$3,195	'	$3,195	'	'
United States Government Agencies	'	'	'	'	'
Sales to significant Customers	2,946	4,637	7,578	9,834	'
Percentage of revenue from major customer	38.80%	57.20%	36.30%	45.10%	'
Accounts receivable from major customer	$927	'	$927	'	$2,256

11_Debt_Details_Narrative

11. Debt (Details Narrative) (USD $)	Sep. 30, 2013
In Thousands, unless otherwise specified
Revolving credit facility	$0
SiliconValleyBankMember	'
Credit facility with maximum borrowing	$5,000
Maturity date	'2014-12-31