Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Mar. 01, 2020 | Jun. 30, 2019 | |
Document Type | 10-K/A | ||
Document Annual Report | true | ||
Current Fiscal Year End Date | --12-31 | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Entity File Number | 001-31588 | ||
Entity Registrant Name | COMMUNICATIONS SYSTEMS INC | ||
Entity Incorporation, State or Country Code | MN | ||
Entity Tax Identification Number | 41-0957999 | ||
Entity Address, Address Line One | 10900 Red Circle Drive | ||
Entity Address, City or Town | Minnetonka | ||
Entity Address, State or Province | MN | ||
Entity Address, Postal Zip Code | 55343 | ||
City Area Code | 952 | ||
Local Phone Number | 996-1674 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
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 Public Float | $ 21,641,000 | ||
Entity Common Stock, Shares Outstanding | 9,256,298 | ||
Documents Incorporated by Reference | Portions of the Company’s Proxy Statement for its Annual Meeting of Shareholders to be held on June 17, 2020 are incorporated by reference into Part III of this Form 10-K. | ||
Amendment Flag | true | ||
Amendment Description | On March 17, 2020, Communications Systems, Inc. ("Company") filed its Annual Report on Form 10-K for the year ended December 31, 2019. After filing, the Company discovered that the XBRL links in the Form 10-K were not operative. Therefore, the Company is filing this Amendment No. 1 to Form 10-K on Form 10-K/A to correct these links. There are no other substantive changes in this Amendment No. 1 to Form 10-K on Form 10-K/A to the original Form 10-K filing. | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0000022701 | ||
Common Stock [Member] | |||
Title of 12(b) Security | Common Stock, $.05 par value | ||
Trading Symbol | JCS | ||
Security Exchange Name | NASDAQ | ||
Preferred Stock [Member] | |||
Title of 12(b) Security | Preferred Stock Purchase Rights |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 13,928,504 | $ 11,056,426 |
Restricted cash | 679,006 | |
Investments | 9,449,650 | |
Trade accounts receivable, less allowance for doubtful accounts of $154,000 and $93,000, respectively | 10,242,405 | 9,593,328 |
Inventories | 8,531,112 | 11,998,638 |
Prepaid income taxes | 72,994 | 148,036 |
Other current assets | 1,160,865 | 1,462,691 |
Current assets held for sale | 5,337,274 | 8,075,973 |
TOTAL CURRENT ASSETS | 49,401,810 | 42,335,092 |
PROPERTY, PLANT AND EQUIPMENT, net | 8,238,089 | 8,847,091 |
OTHER ASSETS: | ||
Investments | 250,000 | |
Deferred income taxes | 9,534 | 19,068 |
Right of use asset | 367,909 | |
Other assets | 4,765 | |
Noncurrent assets held for sale | 883,370 | 2,115,148 |
TOTAL OTHER ASSETS | 1,510,813 | 2,138,981 |
TOTAL ASSETS | 59,150,712 | 53,321,164 |
CURRENT LIABILITIES: | ||
Accounts payable | 3,720,445 | 4,086,205 |
Accrued compensation and benefits | 3,517,331 | 2,892,199 |
Lease liability | 115,935 | |
Other accrued liabilities | 2,602,752 | 3,096,694 |
Dividends payable | 200,363 | 184,541 |
Current liabilities held for sale | 1,193,218 | 1,380,131 |
TOTAL CURRENT LIABILITIES | 11,350,044 | 11,639,770 |
LONG TERM LIABILITIES: | ||
Long-term compensation plans | 164,348 | |
Uncertain tax positions | 28,267 | |
Lease liability | 244,038 | |
TOTAL LONG-TERM LIABILITIES | 408,386 | 28,267 |
COMMITMENTS AND CONTINGENCIES (Footnote 9) | ||
STOCKHOLDERS' EQUITY | ||
Preferred stock, par value $1.00 per share; 3,000,000 shares authorized; none issued | ||
Common stock, par value $.05 per share; 30,000,000 shares authorized; 9,252,749 and 9,158,438 shares issued and outstanding, respectively | 462,637 | 457,922 |
Additional paid-in capital | 42,977,914 | 42,680,499 |
Retained earnings (accumulated deficit) | 4,649,395 | (734,001) |
Accumulated other comprehensive loss | (697,664) | (751,293) |
TOTAL STOCKHOLDERS' EQUITY | 47,392,282 | 41,653,127 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 59,150,712 | $ 53,321,164 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Consolidated Balance Sheets [Abstract] | ||
Trade accounts receivable, allowance for doubtful accounts | $ 154,000 | $ 93,000 |
Preferred stock, par value | $ 1 | $ 1 |
Preferred stock, shares authorized | 3,000,000 | 3,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $ 0.05 | $ 0.05 |
Common stock, shares authorized | 30,000,000 | 30,000,000 |
Common stock, shares issued | 9,252,749 | 9,158,438 |
Common stock, shares outstanding | 9,252,749 | 9,158,438 |
Consolidated Statements of Inco
Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) [Abstract] | ||
Sales | $ 50,906,179 | $ 42,369,232 |
Cost of sales | 28,720,367 | 24,747,115 |
Gross profit | 22,185,812 | 17,622,117 |
Operating expenses: | ||
Selling, general and administrative expenses | 22,176,598 | 22,372,765 |
Total operating expenses | 22,176,598 | 22,372,765 |
Operating income (loss) from continuing operations | 9,214 | (4,750,648) |
Other income (expenses): | ||
Investment and other income | 284,944 | 288,829 |
Loss on sale of assets | (20,368) | (26,445) |
Interest and other expense | (38,440) | (38,355) |
Other income, net | 226,136 | 224,029 |
Operating income (loss) from continuing operations before income taxes | 235,350 | (4,526,619) |
Income tax (benefit) expense | (15,269) | 404,386 |
Net income (loss) from continuing operations | 250,619 | (4,931,005) |
Net income (loss) from discontinued operations, net of tax | 6,218,430 | (1,860,730) |
Net income (loss) | 6,469,049 | (6,791,735) |
Other comprehensive (loss) income, net of tax: | ||
Unrealized (losses)/gains on available-for-sale securities | (1,793) | 1,061 |
Foreign currency translation adjustment | 55,422 | (138,975) |
Total other comprehensive income (loss) | 53,629 | (137,914) |
Comprehensive income (loss) | $ 6,522,678 | $ (6,929,649) |
Basic net income (loss) per share: | ||
Continuing operations | $ 0.03 | $ (0.54) |
Discontinued operations | 0.67 | (0.21) |
Basic net income (loss) per share | 0.70 | (0.75) |
Diluted net income (loss) per share: | ||
Continuing operations | 0.03 | (0.54) |
Discontinued operations | 0.66 | (0.21) |
Diluted net income (loss) per share | $ 0.69 | $ (0.75) |
Weighted Average Basic Shares Outstanding | 9,272,259 | 9,108,777 |
Weighted Average Dilutive Shares Outstanding | 9,337,422 | 9,108,777 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings (Accumulated Deficit) [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total |
BALANCE at Dec. 31, 2017 | $ 448,685 | $ 42,006,750 | $ 7,328,671 | $ (613,379) | $ 49,170,727 |
BALANCE, Shares at Dec. 31, 2017 | 8,973,708 | ||||
Net income (loss) | (6,791,735) | (6,791,735) | |||
Issuance of common stock under Employee Stock Purchase Plan | $ 1,481 | 100,507 | 101,988 | ||
Issuance of common stock under Employee Stock Purchase Plan, Shares | 29,614 | ||||
Issuance of common stock to Employee Stock Ownership Plan | $ 5,982 | 419,908 | 425,890 | ||
Issuance of common stock to Employee Stock Ownership Plan, Shares | 119,632 | ||||
Issuance of common stock under Executive Stock Plan | $ 2,175 | 2,175 | |||
Issuance of common stock under Executive Stock Plan, Shares | 43,501 | ||||
Share based compensation | 190,721 | 190,721 | |||
Other share retirements | $ (401) | (37,387) | 9,325 | (28,463) | |
Other share retirements, Shares | (8,017) | ||||
Shareholder dividends | (1,280,262) | (1,280,262) | |||
Other comprehensive income (loss) | (137,914) | (137,914) | |||
BALANCE at Dec. 31, 2018 | $ 457,922 | 42,680,499 | (734,001) | (751,293) | 41,653,127 |
BALANCE, Shares at Dec. 31, 2018 | 9,158,438 | ||||
Net income (loss) | 6,469,049 | 6,469,049 | |||
Issuance of common stock under Employee Stock Purchase Plan | $ 1,723 | 93,437 | 95,160 | ||
Issuance of common stock under Employee Stock Purchase Plan, Shares | 34,469 | ||||
Issuance of common stock to Employee Stock Ownership Plan | $ 6,641 | 262,995 | 269,636 | ||
Issuance of common stock to Employee Stock Ownership Plan, Shares | 132,826 | ||||
Issuance of common stock under Executive Stock Plan | $ 7,826 | 612,424 | 620,250 | ||
Issuance of common stock under Executive Stock Plan, Shares | 156,525 | ||||
Share based compensation | 412,776 | 412,776 | |||
Other share retirements | $ (11,475) | (1,084,217) | (326,556) | (1,422,248) | |
Other share retirements, Shares | (229,509) | ||||
Shareholder dividends | (759,097) | (759,097) | |||
Other comprehensive income (loss) | 53,629 | 53,629 | |||
BALANCE at Dec. 31, 2019 | $ 462,637 | $ 42,977,914 | $ 4,649,395 | $ (697,664) | $ 47,392,282 |
BALANCE, Shares at Dec. 31, 2019 | 9,252,749 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes In Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Retained Earnings (Accumulated Deficit) [Member] | ||
Shareholder dividends per share | $ 0.08 | $ 0.14 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income (loss) | $ 6,469,049 | $ (6,791,735) |
Net income (loss) from discontinued operations, net of tax | 6,218,430 | (1,860,730) |
Net income (loss) from continuing operations | 250,619 | (4,931,005) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 1,032,797 | 1,261,235 |
Share based compensation | 412,776 | 190,721 |
Deferred taxes | 9,534 | 19,068 |
Loss on sale of assets | 20,368 | 26,445 |
Changes in assets and liabilities: | ||
Trade accounts receivables | (618,663) | (2,270,429) |
Inventories | 2,469,800 | (6,163,982) |
Prepaid income taxes | 75,298 | 343,381 |
Other assets | 1,348,481 | (924,952) |
Accounts payable | (381,293) | 1,062,360 |
Accrued compensation and benefits | 1,057,428 | 888,376 |
Other accrued liabilities | (515,279) | 1,690,598 |
Income taxes payable | (28,267) | 24,202 |
Net cash provided by (used in) operating activities - continuing operations | 5,133,599 | (8,783,982) |
Net cash provided by operating activities - discontinued operations | 5,097,537 | 4,061,250 |
Net cash provided by (used in) operating activities | 10,231,136 | (4,722,732) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Capital expenditures | (424,988) | (693,659) |
Purchases of investments | (18,673,530) | (6,580,917) |
Proceeds from the sale of fixed assets | 6,400 | |
Proceeds from the sale of investments | 8,972,087 | 12,122,722 |
Net cash (used in) provided by investing activities - continuing operations | (10,126,431) | 4,854,546 |
Net cash provided by (used in) investing activities - discontinued operations | 4,904,456 | (42,605) |
Net cash (used in) provided by investing activities | (5,221,975) | 4,811,941 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Cash dividends paid | (743,276) | (1,492,871) |
Proceeds from issuance of common stock, net of shares withheld | 715,410 | 75,700 |
Purchase of common stock | (1,422,248) | |
Net cash used in financing activities | (1,450,114) | (1,417,171) |
EFFECT OF FOREIGN EXCHANGE RATE CHANGES ON CASH | (7,963) | (69,275) |
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 3,551,084 | (1,397,237) |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF YEAR | 11,056,426 | 12,453,663 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF YEAR | 14,607,510 | 11,056,426 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ||
Income taxes refunded | (73,151) | (32,596) |
Interest paid | 37,974 | 38,030 |
Dividends declared not paid | 200,363 | $ 184,541 |
Capital expenditures in accounts payable | 10,663 | |
Operating right of use assets obtained in exchange for lease obligations | $ 449,995 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Description of business: Communications Systems, Inc. (herein collectively called “CSI,” “our” or the “Company”) is a Minnesota corporation organized in 1969 that operates directly and through its subsidiaries located in the United States and the United Kingdom. CSI is principally engaged through its Transition Networks business unit in the manufacture and sale of Ethernet switches, core media conversion products, and other connectivity and data transmission products. Through its JDL Technologies business unit the Company provides technology solutions including virtualization, managed services, wired and wireless network design and implementation , HIPAA-compliant IT services, and converged infrastructure configuration and deployment . Through its Net2Edge business unit, the Company enables telecommunications carriers to connect legacy networks to high-speed networks and services. The Company classifies its businesses into three segments that correspond to these three business units. Non-allocated general and administrative expenses are separately accounted for as “Other” in the Company’s segment reporting. Intersegment revenues are eliminated upon consolidation. Principles of consolidation: The consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany transactions and accounts have been eliminated. Use of estimates: The presentation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company uses estimates based on the best information available in recording transactions and balances resulting from operations. Actual results could differ from those estimates. The Company’s estimates consist principally of reserves for doubtful accounts, sales returns, warranty costs, asset impairment evaluations, accruals for compensation plans, self-insured medical and dental accruals, lower of cost or market inventory adjustments, provisions for income taxes and deferred taxes, and depreciable lives of fixed assets. Cash equivalents: For purposes of the consolidated statements of cash flows, the Company considers all highly liquid investments with a maturity of three months or less at the time of purchase to be cash equivalents. As of December 31, 2019 , the Company had $ 13,929,000 in cash and cash equivalents. Of this amount, $ 8,761,000 was invested in short-term money market funds that are not considered to be bank deposits and are not insured or guaranteed by the federal deposit insurance company (FDIC) or other government agency. These money market funds seek to preserve the value of the investment at $ 1.00 per share; however, it is possible to lose money investing in these funds. The remainder is operating cash and certificates of deposit which are fully insured through the FDIC. Investments: Investments consist of certificates of deposit, corporate notes and bonds, and commercial paper that are traded on the open market and are classified as available-for-sale. Available-for-sale investments are reported at fair value with unrealized gains and losses excluded from operations and reported as a separate component of stockholders’ equity, net of tax (see Accumulated other comprehensive loss below). Inventories: Inventories are stated at the lower of cost or net realizable value. Cost is determined by the first-in, first-out method. Provision to reduce inventories to the lower of cost or net realizable value is made based on a review of excess and obsolete inventories, estimates of future sales, examination of historical consumption rates and the related value of component parts. Property, plant and equipment: Property, plant and equipment are recorded at cost. Depreciation is computed using the straight-line method. Depreciation included in cost of sales and selling, general and administrative expenses for continuing operations was $ 1,028,000 and $ 1,249,000 for 2019 and 2018 , respectively. Maintenance and repairs are charged to operations and additions or improvements are capitalized. Items of property sold, retired or otherwise disposed of are removed from the asset and accumulated depreciation accounts and any gains or losses on disposal are reflected in operations. Intangible Assets: Intangible assets with indefinite useful lives are not amortized, but are tested at least annually for impairment. Recoverability of long-lived assets: The Company reviews its long-lived assets periodically when impairment indicators exist as required under generally accepted accounting principles. Potential impairment is determined by comparing the carrying value of the assets with expected net cash flows expected to be provided by operating activities of the business or related products. If the sum of the expected future net cash flows is less than the carrying value, an impairment loss would be measured by comparing the amount by which the carrying value exceeds the fair value of the asset. Warranty: The Company reserves for the estimated cost of product warranties at the time revenue is recognized. We estimate the costs of our warranty obligations based on our warranty policy or applicable contractual warranty, historical experience of known product failure rates, and use of materials and service delivery costs incurred in correcting product failures. Management reviews the estimated warranty liability on a quarterly basis to determine its adequacy. The following table presents the changes in the Company’s warranty liability, included in other accrued liabilities in the consolidated balance sheets, for the years ended December 31, 2019 and 2018 , which relate to normal product warranties and a five -year obligation to provide for potential future liabilities for certain network equipment sales: Year Ended December 31 2019 2018 Beginning balance $ 554,000 $ 543,000 Amounts charged to expense 10,000 97,000 Actual warranty costs paid (51,000) (86,000) Ending balance $ 513,000 $ 554,000 Accumulated other comprehensive loss: The components of accumulated other comprehensive loss are as follows: Foreign Currency Translation Unrealized (loss)/gain on securities Accumulated Other Comprehensive Loss December 31, 2017 $ (625,000) $ 12,000 $ (613,000) Net current period change (139,000) 1,000 (138,000) December 31, 2018 $ (764,000) $ 13,000 $ (751,000) Net current period change 55,000 (2,000) 53,000 December 31, 2019 $ (709,000) $ 11,000 $ (698,000) Revenue recognition : The Company’s manufacturing operations (Transition Networks and Net2Edge) recognize revenue upon delivery of the Company’s connectivity infrastructure and data transmission products. To determine when revenue should be recognized, it is important to determine when the transfer of control has occurred. The Company has determined that control transfers for these products upon shipment or delivery to the customer, in accordance with the agreed upon shipping terms. As such, the timing of revenue recognition occurs at a specific point in time. Sales are made directly to customers and through distributors. Payment terms for distributors are consistent with the terms of the Company’s direct customers. The Company records a provision for sales returns, sales incentives and warranty costs at the time of the sale based on historical experience and current trends. The Company has determined that the following performance obligations identified in its JDL Technologies, Inc. business unit are transferred over time: managed services and professional services (time and materials (“T&M”) and fixed price). JDL’s managed services performance obligation is a bundled solution, a series of distinct services that are substantially the same and that have the same pattern of transfer to the customer and are recognized evenly over the term of the contract. T&M professional services arrangements are measured over time with an input method based on hours expended towards satisfying this performance obligation. Fixed price professional service arrangements under a relatively longer-term service will also be measured over time with an input method based on hours expended. The Company has also identified the following performance obligations within its JDL Technologies business unit that are recognized at a point in time which include resale of third-party hardware and software, installation, arranging for another party to transfer services to the customer, and certain professional services. The resale of third-party hardware and software is recognized at a point in time, when the goods are shipped or delivered to the customer’s location, in accordance with the agreed upon shipping terms. Installation services are recognized at a point in time when the services are completed. The service the Company provides to arrange for another party to transfer services to the customer is satisfied at a point in time as the Company has transferred control upon the service first being made available to the customer by the third party vendor, which are required to be presented on a net basis. Depending on the nature of the service, certain professional services transfer control at a point in time. The Company evaluates these circumstances on a case by case basis to determine if revenue should be recognized over time or at a point in time. See Note 2 for further discussion regarding revenue recognition. Research and development: Research and development costs consist of outside testing services, equipment and supplies associated with enhancing existing products and developing new products. Research and development costs are expensed when incurred and totaled $ 3,600,000 in 2019 and $ 3,542,000 in 2018 . Employee Retirement Benefits: The Company has an Employee Savings Plan (401(k)) and matches a percentage of employee contributions up to six percent of compensation. Contributions to the plan in 2019 and 2018 were $ 401,000 and $ 450,000 , respectively. Net income per share: Basic net income per common share is based on the weighted average number of common shares outstanding during each year. Diluted net income per common share adjusts for the dilutive effect of potential common shares outstanding. The Company’s only potential common shares outstanding are stock options and shares associated with the long-term incentive compensation plans, which resulted in a dilutive effect of 65,163 shares for 2019 and no dilutive effect in 2018. The Company calculates the dilutive effect of outstanding options and unvested shares using the treasury stock method. Options totaling 860,539 were excluded from the calculation of diluted earnings per share for year ended December 31, 2019 , because the exercise price was greater than the average market price of common stock during the year and deferred stock awards totaling 178,278 shares were not included because of unmet performance conditions. Due to the net loss in 2018, there was no dilutive impact from outstanding stock options or unvested shares. Options totaling 1,320,492 would have been excluded from the calculation of diluted earnings per share for year ended December 31, 2018 , because the exercise price was greater than the average market price of common stock during the year and deferred stock awards totaling 265,491 shares would not have been included because of unmet performance conditions. Share based compensation: The Company accounts for share based compensation awards on a fair value basis. The estimated grant date fair value of each stock-based award is recognized in income over the requisite service period (generally the vesting period). The estimated fair value of each option is calculated using the Black-Scholes option-pricing model. Accounting standards issued: In June 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.” The amendments in this update replace the incurred loss impairment methodology in current U.S. GAAP with a methodology that reflects expected credit losses. This ASU is intended to provide financial statement users with more decision-useful information about expected credit losses and is effective for annual periods and interim periods for those annual periods beginning after December 15, 2022, which for us is the first quarter ending March 31, 2023. Entities may early adopt beginning after December 15, 2018. We are currently evaluating the impact of the adoption of ASU 2016-13 on our consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement.” This new standard requires changes to the disclosure requirements for fair value measurements for certain Level 3 items and specifies that some of the changes must be applied prospectively, while others should be applied retrospectively. This standard is effective for public business entities in fiscal years beginning after December 15, 2019, and for interim periods within those fiscal years, with early adoption permitted. We are currently evaluating the impact of the adoption of ASU 2018-13 on our consolidated financial statements. Accounting standards adopted: In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)”, which amends existing guidance and requires an entity to recognize both assets and liabilities arising from financing and operating leases, along with additional qualitative and quantitative disclosures. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within that reporting period. The Company adopted the accounting standard effective January 1, 2019. Please see Note 3 for the required disclosures related to the impact of adopting this standard. |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2019 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | NOTE 2 – REVENUE RECOGNITION In accordance with Accounting Standards Codification (“ASC”) 606, revenue is recognized when a customer obtains control of promised goods or services. The amount of revenue recognized reflects the consideration that the Company expects to receive in exchange for these goods or services. Transition Networks The Company’s Transition Networks business unit develops and manufactures Power over Ethernet (PoE) switches, media converters, network interface cards (NICs), Ethernet switches and other connectivity products that offer the ability to affordably integrate the benefits of fiber optics into any data network as well as provide connectivity and power to end devices in the IoT ecosystem. Transition sells its products through distributors, resellers, integrators, and OEMs. The Company has determined that revenue recognition for its Transition Networks business unit occurs upon delivery of the Company’s connectivity infrastructure and data transmission products. To determine when revenue should be recognized, it is important to determine when the transfer of control has occurred. The Company has determined that control transfers for these products upon shipment or delivery to the customer, in accordance with the agreed upon shipping terms. As such, the timing of revenue recognition occurs at a specific point in time. JDL Technologies, Inc. The Company’s JDL Technologies, Inc. business unit is a managed service provider and a value-added reseller supplying IT solutions focused on IT service and support management; network design, deployment and integration; cloud, hosted and virtualized services; and network operations center management. Major technology solutions include networking, virtualization, cloud and infrastructure services, most of which are available under JDL managed service contracts. The Company has determined that the following performance obligations identified in its JDL Technologies, Inc. business unit are transferred over time: managed services and professional services (time and materials (“T&M”) and fixed price). JDL’s managed services performance obligation is a bundled solution, a series of distinct services that are substantially the same and that have the same pattern of transfer to the customer and are recognized evenly over the term of the contract. T&M professional services arrangements are measured over time with an input method based on hours expended towards satisfying this performance obligation. Fixed price professional service arrangements under a relatively longer-term service will also be measured over time with an input method based on hours expended. The Company has also identified the following performance obligations within its JDL Technologies business unit that are recognized at a point in time which include resale of third-party hardware and software, installation, arranging for another party to transfer services to the customer, and certain professional services. The resale of third-party hardware and software is recognized at a point in time, when the goods are shipped or delivered to the customer’s location, in accordance with the agreed upon shipping terms. Installation services are recognized at a point in time when the services are completed. The service the Company provides to arrange for another party to transfer services to the customer is satisfied at a point in time as the Company has transferred control upon the service first being made available to the customer by the third party vendor, which are required to be presented on a net basis. Depending on the nature of the service, certain professional services transfer control at a point in time. The Company evaluates these circumstances on a case by case basis to determine if revenue should be recognized over time or at a point in time. Net2Edge Limited The Company’s Net2Edge division manufactures and markets Ethernet based network access devices. The Company principally sells its products through approved partners and integrators outside the United States. The Company has determined that the performance obligation in the Net2Edge division is recognized at a point in time, upon the delivery of its connectivity infrastructure and data transmission products. Significant Judgments To determine the transaction price, the Company estimates the amount of variable consideration at the outset of the contract, depending on the facts and circumstances relative to the contract. The Company may provide credits or incentives to its customers, which are accounted for as either variable consideration or consideration payable to the customer. The Company estimates product returns based on historical return rates. The Company constrains (reduces) the estimates of variable consideration such that it is probable that a significant revenue reversal of previously recognized revenue will not occur throughout the life of the contract. When determining if variable consideration should be constrained, management considers whether there are factors outside the Company’s control that could result in a significant reversal of revenue. In making these assessments, the Company considers the likelihood and magnitude of a potential reversal of revenue. The Company will assess if any incentives it offers to its customer is a consideration payable. The Company accounts for consideration payable to a customer as a reduction of the transaction price, and therefore, of revenue. For contracts with more than one performance obligation, the consideration is allocated between separate products and services based on their stand-alone selling prices. Judgment is required to determine standalone selling prices for each distinct performance obligation. The Company generally determines standalone selling prices based on the actual prices charged to customers and has an established range of amounts that fall within stand-alone selling price for its distinct performance obligations. The Company evaluates this range quarterly. Costs to Obtain or Fulfill a Contract The Company evaluates “Other Assets and Deferred Costs” (ASC 340-40), for the accounting for certain costs to obtain and fulfill contracts (or, in some cases, an anticipated contract) with a customer. ASC 340-40 is applicable only to incremental contract costs, those that an entity would not have incurred if the contract had not been obtained, and requires the capitalization of these costs as well as provides guidance on the amortization and impairment considerations. The Company elects the practical expedient and expenses certain costs to obtain contracts when applicable. There were no material costs to obtain a contract in the years ended December 31, 2019 and 2018 . Transaction Price Allocated to Future Performance Obligations To determine the allocation of the transaction price and amounts allocated to the performance obligations, the Company first determined the standalone selling price for each distinct performance obligation in the contract in order to determine the allocations of the transaction price in proportion to the standalone selling price for each performance obligation in the contract in accordance with ASC 606-10-32-31 and 32-33. Judgment is required to determine standalone selling price for each distinct performance obligation. The Company generally determines standalone selling prices based on the actual prices charged to customers and has an established range of amounts that fall within stand-alone selling price for its distinct performance obligations. The Company evaluates this range quarterly. Practical Expedients and Exemptions The Company adopted various practical expedients and policy elections related to the accounting for significant finance components, sales taxes, shipping and handling, costs to obtain a contract and immaterial promised goods or services. The practical expedient to disclose the unfulfilled performance obligations was not made as they are expected to be fulfilled within one year. Disaggregation of revenue Revenues are recognized when control of the promised goods or services is transferred to our customers, in an amount that best reflects the consideration we expect to receive in exchange for those goods or services. In accordance with ASC 606-10-50-5, the following tables present how we disaggregate our revenues, which is different for each segment. For Transition Networks, we analyze revenue by region and product group, which is as follows for the years ended December 31, 2019 and 2018 : Transition Networks Revenue by Region 2019 2018 North America $ 39,748,000 $ 31,059,000 Europe, Middle East, Africa ("EMEA") 2,651,000 2,017,000 Rest of World 2,461,000 3,394,000 $ 44,860,000 $ 36,470,000 Transition Networks Revenue by Product Group 2019 2018 Media converters $ 20,005,000 $ 20,226,000 Ethernet switches and adapters 18,845,000 9,694,000 Other products 6,010,000 6,550,000 $ 44,860,000 $ 36,470,000 For JDL, we analyze revenue by customer group, which is as follows for the years ended December 31, 2019 and 2018 : JDL Revenue by Customer Group 2019 2018 Education $ 1,926,000 $ 2,651,000 Healthcare and commercial clients 2,815,000 2,483,000 $ 4,741,000 $ 5,134,000 The Company does not currently analyze revenue for Net2Edge on a disaggregated basis. Revenues from Net2Edge were $ 2,330,000 and $ 1,700,000 for the years ended December 31, 2019 and 2018 , respectively. Contract Balances The Company does no t have material costs to obtain a contract or material contract liabilities. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | NOTE 3 – LEASES In February 2016, FASB issued ASU No. 2016-02, Leases (ASC Topic 842), which is intended to improve financial reporting of leasing transactions by requiring organizations that lease assets to recognize assets and liabilities for the rights and obligations created by leases that extend more than twelve months from the date of the balance sheet. This accounting update also requires additional disclosures surrounding the amount, timing, and uncertainty of cash flows arising from leases. This standard is effective for financial statements issued for annual and interim periods beginning after December 15, 2018 for public business entities. The Company adopted this standard as of January 1, 2019, the beginning of the period of adoption. The Company has elected the package of practical expedients permitted in ASC Topic 842. Adoption of the new standard resulted in the recording of right of use (“ROU”) assets and lease liabilities of approximately $ 280,000 and $ 259,000 , respectively as of January 1, 2019. ROU assets represent our right to use an underlying asset for the lease term, while lease liabilities represent our obligation to make lease payments arising from the lease. Lease ROU assets and liabilities are recognized at the commencement date of a lease based on the present value of lease payments over the lease term. Because the rate implicit in each individual lease is not readily determinable, the Company uses its incremental borrowing rate to determine the present value of the lease payments. Adoption of the standard did not materially impact the Company’s consolidated balance sheets, consolidated statement of income (loss) and comprehensive income (loss) or consolidated statements of cash flows. The Company has entered into operating leases for two office locations, including one in February 2019. These leases have remaining lease terms of 5 to 8 years. One of the leases includes two options to extend the lease for 5 years each, and the other lease includes an option to terminate the lease in 2022 . One of the leases includes a 3% rent adjustment on each anniversary of the lease. As of December 31, 2019 , total ROU assets and operating lease liabilities were $ 368,000 and $ 360,000 , respectively. All operating lease expense is recognized on a straight-line basis over the lease term. In the years ended December 31, 2019 and 2018, the Company recognized $ 124,000 and $223,000 in lease expense , respectively . Information related to the Company’s ROU assets and related lease liabilities were as follows: Year Ended December 31, 2019 Cash paid for operating leases $ 112,000 Right-of-use assets obtained in exchange for new operating lease obligations (1) 450,000 As of December 31, 2019 Weighted-average remaining lease term 3.3 years Weighted-average discount rate 4.5% (1) Includes $280,000 for operating leases existing on January 1, 2019 and $188,000 for operating leases that commenced in the first quarter of 2019. Maturities of lease liabilities as of December 31, 2019 were as follows: 2020 $ 130,000 2021 131,000 2022 89,000 2023 48,000 2024 4,000 Total lease payments 402,000 Less imputed interest (42,000) Total operating lease liabilities $ 360,000 Future minimum lease commitments under operating leases based on accounting standards applicable as of December 31, 2018 were as follows: Year Ending December 31: 2019 $ 106,000 2020 86,000 2021 86,000 2022 50,000 $ 328,000 As of December 31, 2019 , the Company does no t have any additional future operating lease obligations that have not yet commenced. |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2019 | |
Discontinued Operations [Abstract] | |
Discontinud Operations | NOTE 4 – DISCONTINUED OPERATIONS On April 5, 2019, the Company sold its Suttle FutureLink™ Fiber business line, including inventory, equipment, and customer relationships, to PPC Broadband Inc. (“PPC”). The transaction was structured as an Asset Purchase Agreement with a simultaneous signing and closing. The sale price was $5,000,000 cash, of which $500,000 was deferred into an escrow account until certain criteria are met and is recorded as restricted cash within the consolidated balance sheet. The Company recognized a gain on the sale of inventory and capital equipment totaling $2,967,000 during the second quarter of 2019. Concurrent with the closing of the transaction, Suttle and PPC entered into a Transition Services Agreement under which Suttle agreed to manufacture products related to the FutureLink™ Fiber business line until September 30, 2019, to ensure seamless supply to the customer base . On March 11, 2020, the Company sold the remai nder of its Suttle business lines, including the SoHo, MediaMAX, and SpeedStar brands and inventory as well as working capital, certain capital equipment and customer relationships to Oldcastle Infrastructure, Inc. (“Oldcastle”) for $8,000,000 . Oldcastle, a wholly-owned subsidiary of Ireland based CRH PLC, will operate the majority of the acquired Suttle business through its wholly-owned subsidiary, Primex Technologies, Inc. Concurrent with the closing of the transaction, the Company and Oldcastle entered into a Transition Services Agreement (“TSA”) under which Suttle will continue to manufacture products for Oldcastle for six months, to ensure seamless supply and quality assurance to the existing customer base. Concurrently with the closing of the transaction and the TSA, the Company and Oldcastle also entered into a lease agreement under which Oldcastle will lease two buildings in Hector, Minnesota, where Suttle had conducted operations. Base rents under the lease agreement range from $6,970 to $7,180 per month. The parties intend to work with Suttle’s existing suppliers to ensure continued support and delivery of all Suttle products during the transition period. The associated assets and liabilities related to this sale are classified as held for sale in the c onsolidated b alance s heets. The presentation of discontinued operations has been retrospectively applied to all prior periods presented. T he assets and liabilities of this discontinued operation that are classified as held for sale are as follows: December 31, 2019 December 31, 2018 Trade accounts receivable $ 2,235,000 $ 3,808,000 Inventories 3,009,000 4,177,000 Other current assets 93,000 91,000 Total current assets $ 5,337,000 $ 8,076,000 Property, plant, and equipment $ 883,000 $ 2,115,000 Total noncurrent assets $ 883,000 $ 2,115,000 Total assets held for sale $ 6,220,000 $ 10,191,000 Accounts payable $ 1,111,000 $ 1,309,000 Other accrued liabilities 82,000 71,000 Total liabilities held for sale $ 1,193,000 $ 1,380,000 The financial results of the discontinued operations are as follows: Year Ended December 31 2019 2018 Sales $ 18,879,000 $ 23,394,000 Cost of sales 12,965,000 19,709,000 Selling, general and administrative expenses 2,684,000 5,129,000 Restructuring expenses - 364,000 (Gain) loss on sale of assets (2,990,000) 63,000 Other income - (11,000) Operating income before income taxes 6,220,000 (1,860,000) Income tax expense 2,000 1,000 Income (loss) from discontinued operations $ 6,218,000 $ (1,861,000) During the year ended December 31, 2018, the Company recorded $364,000 in restructuring expense. This consisted of severance and related benefits costs due to organizational restructuring within the Suttle business segment. The Company paid $364,000 in restructuring charges during 201 9 and had no restructuring accruals recorded at December 31, 201 9 . |
Cash Equivalents and Investment
Cash Equivalents and Investments | 12 Months Ended |
Dec. 31, 2019 | |
Cash Equivalents and Investments [Abstract] | |
Cash Equivalents and Investments | NOTE 5 –CASH EQUIVALENTS AND INVESTMENTS The following tables show the Company’s cash equivalents and available-for-sale securities’ amortized cost, gross unrealized gains, gross unrealized losses and fair value by significant investment category recorded as cash equivalents or short and long term investments as of December 31, 2019 and December 31, 2018 : December 31, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash Equivalents Short-Term Investments Long-Term Investments Cash equivalents: Money Market funds $ 8,761,000 $ - $ - $ 8,761,000 $ 8,761,000 $ - $ - Subtotal $ 8,761,000 $ - $ - $ 8,761,000 $ 8,761,000 $ - $ - Investments: Commercial Paper 8,695,000 - (1,000) 8,694,000 - 8,694,000 - Corporate Notes/Bonds 756,000 - - 756,000 - 756,000 - Convertible Debt 250,000 - - 250,000 - - 250,000 Subtotal 9,701,000 - (1,000) 9,700,000 - 9,450,000 250,000 Total $ 18,462,000 $ - $ (1,000) $ 18,461,000 $ 8,761,000 $ 9,450,000 $ 250,000 December 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash Equivalents Short-Term Investments Long-Term Investments Cash equivalents: Money Market funds $ 8,428,000 $ - $ - $ 8,428,000 $ 8,428,000 $ - $ - Total $ 8,428,000 $ - $ - $ 8,428,000 $ 8,428,000 $ - $ - The Company tests for other than temporary losses on a quarterly basis and has considered the unrealized losses indicated above to be temporary in nature. The Company intends to hold the investments until it can recover the full principal amount and has the ability to do so based on other sources of liquidity. The Company expects such recoveries to occur prior to the contractual maturities. All unrealized losses as of December 31, 2019 were in a continuous loss position for less than twelve months and are not deemed to be other than temporarily impaired as of December 31, 2019. The Company did no t recognize any gross realized gains or gross realized losses during the years ending December 31, 2019 and 2018 , respectively. If the Company had realized gains or losses, they would be included within investment and other income in the accompanying consolidated statements of income (loss). |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2019 | |
Inventories [Abstract] | |
Inventories | NOTE 6 - INVENTORIES Inventories consist of: December 31 2019 2018 Finished goods $ 6,728,000 $ 7,140,000 Raw and processed materials 1,803,000 4,859,000 $ 8,531,000 $ 11,999,000 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | NOTE 7 - PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment and the estimated useful lives are as follows: Estimated December 31 useful life 2019 2018 Land $ 2,965,000 $ 2,965,000 Buildings and improvements 3 -40 years 8,727,000 8,782,000 Machinery and equipment 3 -15 years 9,347,000 11,406,000 Furniture and fixtures 3 -10 years 3,628,000 3,750,000 Construction in progress - 127,000 24,667,000 27,030,000 Less accumulated depreciation (16,429,000) (18,183,000) $ 8,238,000 $ 8,847,000 |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
Intangible Assets [Abstract] | |
Intangible Assets | NOTE 8 –INTANGIBLE ASSETS The Company’s identifiable intangible assets with finite lives are being amortized over their estimated useful lives and are included within other assets in the consolidated balance sheets and were as follows: December 31, 2019 Gross Carrying Amount Accumulated Amortization Impairment Loss Foreign Currency Translation Net Trademarks $ 98,000 $ (78,000) $ - $ (20,000) $ - Customer relationships 491,000 (230,000) (154,000) (107,000) - Technology 229,000 (189,000) - (40,000) - $ 818,000 $ (497,000) $ (154,000) $ (167,000) $ - December 31, 2018 Gross Carrying Amount Accumulated Amortization Impairment Loss Foreign Currency Translation Net Trademarks $ 98,000 $ (74,000) $ - $ (19,000) $ 5,000 Customer relationships 491,000 (230,000) (154,000) (107,000) - Technology 229,000 (178,000) - (51,000) - $ 818,000 $ (482,000) $ (154,000) $ (177,000) $ 5,000 Amortization expense on these identifiable intangible assets was $ 5,000 and $ 12,000 in 2019 and 2018 respectively. The amortization expense is included in selling, general and administrative expenses. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | NOTE 9 – COMMITMENTS AND CONTINGENCIES Line of credit: The Company has a $ 15,000,000 credit facility from Wells Fargo Bank. The Company had no outstanding borrowings against the credit facility at December 31, 2019 and 2018 . Due to the revolving nature of loans under our credit facility, additional borrowings and periodic repayments and re-borrowings may be made until the maturity date. The total amount available for borrowings under this credit facility at December 31, 2019 was $ 7,335,000 , based on the borrowing base calculation. Interest on borrowings on the credit facility is set at LIBOR plus 2.0 % ( 3.8% at December 31, 2019 ). The credit agreement expires August 12, 2021 and is secured by assets of the Company. The credit agreement contains financial covenants including a minimum liquidity balance of $10,000,000 . Liquidity is defined as the sum of unrestricted cash, marketable securities and the availability on the line of credit. As of December 31, 2019 , the Company had no other material commitments (either cancelable or non-cancelable) for capital expenditures or other purchase commitments related to ongoing operations. Long-term compensation plans: The Company has a long-term incentive plan that provides long-term competitive compensation to enable the Company to attract and retain qualified executive talent and to reward employees for achieving goals and improving company performance. The plan provides grants of “performance units” made at the beginning of performance periods and paid at the end of the period if performance goals are met. Awards were previously made every other year and are paid following the end of the cycle with annual vesting. Payment in the case of retirement, disability or death will be on a pro rata basis. The Company recognized expense/(income) of $164,000 and $ (11,000) in 2019 and 2018 , respectively. Accrual balances for long-term compensation plans at December 31, 2019 and 2018 were $ 164,000 and $ 0 , respectively. There were no award payouts in 201 9 and 201 8. Awards under the 2017 to 2019 and 2018 to 2020 plans will be paid out 50% in cash and 50% in stock. Awards under the 2019 to 2021 plans will be paid out 75% in stock and 25% in cash. The stock portion of these awards are treated as equity plans and included within the Stock Compensation footnote within the Deferred Stock Outstanding section below. Other contingencies: In the ordinary course of business, the Company is exposed to legal actions and claims and incurs costs to defend against these actions and claims. Company management is not aware of any outstanding or pending legal actions or claims that would materially affect the Company’s financial position, results of operations, or cash flows. |
Stock Compensation
Stock Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Stock Compensation [Abstract] | |
Stock Compensation | NOTE 10 – STOCK COMPENSATION 2011 Executive Incentive Compensation Plan On March 28, 2011 the Board adopted and on May 19, 2011 the Company’s shareholders approved the Company’s 2011 Executive Incentive Compensation Plan (“2011 Incentive Plan”). The 2011 Incentive Plan authorizes incentive awards to officers, key employees and non-employee directors in the form of options (incentive and non-qualified), stock appreciation rights, restricted stock, restricted stock units, performance stock units (“deferred stock”), performance cash units, and other awards in stock, cash, or a combination of stock and cash. The 2011 Incentive Plan, as amended, allows the issuance of up to 2,500,000 shares of common stock. During 2019 , stock options covering 100,769 shares were awarded to key executive employees and non-employee directors, which options expire seven years from the date of award and generally vest 25 % each year beginning one year after the date of award. The Company also granted deferred stock awards of 157,907 shares to key employees during 2019 under the Company’s long-term incentive plan for the 2019 to 2021 period. These awards vest over three years with the first vesting date being March 28, 2020. At December 31, 2019 , 365,080 shares have been issued under the 2011 Incentive Plan, 1,433,699 shares are subject to currently outstanding options, deferred stock awards, and unvested restricted stock units, and 701,221 shares remained available for future issuance under the 2011 Incentive Plan. Stock Option Plan for Directors Shares of common stock are reserved for issuance to non-employee directors under options granted by the Company prior to 2011 under its Stock Option Plan for Non-Employee Directors (the “Director Plan”) . Under the Director Plan nonqualified stock options to acquire 3,000 shares of common stock were automatically granted to each non-employee director concurrent with annual meetings of shareholders in 2010 and earlier years and vested immediately. T he exercise price of options granted was the fair market value of the common stock on the date of the respective shareholder meetings. Options granted under the Director Plan expire 10 years from date of grant. No options have been granted under the Director Plan since 2011 when the Company amended the Director Plan to prohibit future option grants. As of December 31, 2019 , there were 18,000 shares subject to outstanding options under the Director Plan. Stock Options Outstanding The following table summarizes changes in the number of outstanding stock options under the Director Plan, Stock Plan and the 2011 Incentive Plan during the two years ended December 31, 2019 . Weighted average Weighted average exercise price remaining Options per share contractual term Outstanding – December 31, 2017 1,172,659 $ 8.63 4.55 years Awarded 278,665 3.43 Exercised - - Forfeited (70,832) 8.56 Outstanding – December 31, 2018 1,380,492 $ 7.56 4.18 years Awarded 100,769 2.69 Exercised (151,950) 4.08 Forfeited (198,839) 9.33 Outstanding – December 31, 2019 1,130,472 7.28 3.48 years Exercisable at December 31, 2019 871,430 $ 8.33 2.96 years Expected to vest December 31, 2019 1,130,472 7.28 3.48 years The fair value of awards issued under the Company’s stock option plan is estimated at grant date using the Black-Scholes option-pricing model. The following table displays the assumptions used in the model. Year Ended December 31 2019 2018 Expected volatility 31.3% 28.6% Risk free interest rate 2.2% 2.7% Expected holding period 6 years 6 years Dividend yield 3.0% 4.1% Total unrecognized compensation expense was $ 61,000 as of December 31, 2019 , which is expected to be recognized over the next 1.9 years. The aggregate intrinsic value of all outstanding options, exercisable options, and options expected to vest ( the amount by which the market price of the stock on the last day of the period exceeded the market price of the stock on the date of grant) was $ 1,178,000 based on the Company’s stock price at December 31, 2019 . The intrinsic value of options exercised during the year was $ 380,000 in 2019 and $ 0 in 2018 . Net cash proceeds from the exercise of all stock options were $0 in 2019 and 2018. The following table summarizes the status of stock options outstanding at December 31, 2019 : Weighted Average Weighted Remaining Average Range of Exercise Prices Shares Option Life Exercise Price $2.54 to $5.24 449,989 5.2 years $ 3.57 $5.25 to $7.49 256,433 3.3 years 6.58 $7.50 to $9.74 0 0 years 0.00 $9.75 to $11.99 347,863 1.8 years 11.35 $12.00 to $14.15 76,187 1.2 years 12.97 The Company receives an income tax benefit related to the gains received by officers and key employees who make disqualifying dispositions of stock received on exercise of qualified incentive stock options and on non-qualified options. The amount of tax benefit received by the Company was $ 0 in both 2019 and 2018 . The tax benefit amounts have been credited to additional paid-in capital. Deferred Stock Outstanding The following table summarizes the changes in the number of deferred stock shares under the Stock Plan and 2011 Incentive Plan over the period from December 31, 2017 to December 31, 2019 : Weighted Average Grant Date Shares Fair Value Outstanding – December 31, 2017 190,524 $ 6.60 Granted 163,002 3.56 Vested (29,708) 10.51 Forfeited (53,752) 5.31 Outstanding – December 31, 2018 270,066 4.48 Granted 161,107 2.76 Vested (4,575) 4.56 Forfeited (105,371) 3.90 Outstanding – December 31, 2019 321,227 3.37 The grant date fair value is calculated based on the Company’s closing stock price as of the grant date. As of December 31, 2019 , the total unrecognized compensation expense related to the deferred stock shares was $ 266,000 and is expected to be recognized over a weighted-average period of 2.0 years. Restricted Stock Units Outstanding The following table summarizes the changes in the number of restricted stock units under the 2011 Incentive Plan over the period December 31, 2017 to December 31, 2019 : Weighted Average Grant Date Shares Fair Value Outstanding – December 31, 2017 13,793 6.33 Vested (13,793) 6.33 Outstanding – December 31, 2018 - - Vested - - Outstanding – December 31, 2019 - - The grant date fair value is calculated based on the Company’s closing stock price as of the grant date. As of December 31, 2019 , the total unrecognized compensation expense related to the restricted stock units was $ 0 . Compensation Expense Share-based compensation expense is recognized based on the fair value of awards granted over the vesting period of the award. Share-based compensation expense recognized for 2019 and 2018 was $ 413,000 and $ 191,000 before income taxes and $ 326,000 and $ 151,000 after income taxes, respectively. Share-based compensation expense is recorded as a part of selling, general and administrative expenses. Employee Stock Purchase Plan Under the Company’s Employee Stock Purchase Plan (“ESPP”), employees are able to acquire shares of common stock at 85 % of the price at the end of each current quarterly plan term. The most recent term ended December 31, 2019 . The ESPP is considered compensatory under current rules. At December 31, 2019 , after giving effect to the shares issued as of that date, 89,122 shares remain available for purchase under the ESPP. Employee Stock Ownership Plan (ESOP) All eligible employees of the Company participate in the ESOP after completing one year of service. Contributions are allocated to each participant based on compensation and vest 20 % after two years of service and incrementally thereafter, with full vesting after six years. At December 31, 2019 , the ESOP held 786,026 shares of the Company’s common stock, all of which have been allocated to the accounts of eligible employees. Contributions to the plan are determined by the Board of Directors and can be made in cash or shares of the Company’s stock. The 2 019 ESOP contribution was $ 407,584 for which the Company issued 66,059 shares in March 2020. The 2018 ESOP contribution was $ 256,462 for which the Company issued 126,336 shares in 2019 . |
Common Stock
Common Stock | 12 Months Ended |
Dec. 31, 2019 | |
Common Stock [Abstract] | |
Common Stock | NOTE 11 – COMMON STOCK In August 2019, the Company announced the adoption of a $2.0 million stock repurchase program running through the end of 2020. Under the stock repurchase program, repurchases can be made from time to time using a variety of methods, including through open market purchases or in privately negotiated transactions in compliance with the rules of the United States Securities and Exchange Commission and other applicable legal requirements. This new $2.0 million repurchase program replaces a stock repurchase program that the Company had adopted in 2008. At December 31, 2019 , there remained $625,583 under this rep urchase program. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Taxes [Abstract] | |
Income Taxes | NOTE 12 - INCOME TAXES Income tax (benefit) expense from continuing operations consists of the following: Year Ended December 31 2019 2018 Current year income taxes (benefit): Federal $ (45,000) $ 3,000 State 20,000 133,000 Foreign - 249,000 (25,000) 385,000 Deferred income taxes: Federal $ 10,000 $ 19,000 10,000 19,000 $ (15,000) $ 404,000 The Company’s Austin Taylor Communications, Ltd. unit operated in the United Kingdom (U.K.) and is subject to U.K. rather than U.S. income taxes. Austin Taylor had no activity in 2019 and 2018 . At the end of 2019 , Austin Taylor’s net operating loss carry-forward was $ 7,462,000 . The Company remains uncertain whether it will be able to generate the future income needed to realize the tax benefit of the carry-forward. Accordingly, the Company has continued to maintain its deferred tax valuation allowance against any potential carry-forward benefit from Austin Taylor. Net2Edge, Ltd., formally known as Transition Networks EMEA, Ltd., operates in the U.K. and is subject to U.K. rather than U.S. income taxes. Net2Edge, Ltd. had pretax losses of $ 1,519,000 and $ 2,772,000 in 2019 and 2018 , respectively. At the end of 2019 , Net2Edge, Ltd.’s net operating loss carry-forward was $ 8,745,000 , of which a full valuation allowance is recorded. In 2007, Transition Networks China began operations in China and is subject to Chinese taxes rather than U.S. income taxes. Transition Networks China had no activity in 2019 and 2018 . At the end of 2019 , Transition Networks China's net operating loss carry-forward was $ 29,000 . Due to the history of losses in China, the Company remains uncertain whether it will be able to generate the future income needed to realize the tax benefit of the carry-forward. Accordingly, the Company has continued to maintain its deferred tax valuation reserve against any potential carry-forward benefit. Transition Networks China ceased operations in 2014 and incurred minor non-operating expenditures in 2015 to close the operations. As of 2016, Transition Networks China no longer has any operational activity. Suttle Costa Rica operated in Costa Rica and was subject to Costa Rica income taxes. As of December 31, 2019, the amount of unremitted earnings outside of the United States was not significant to the Company’s liquidity and was available to fund investments abroad. The Company closed its Costa Rica facility in 2017 and no longer has any operational activity in Costa Rica. Suttle Costa Rica had no activity in 2019 and pretax losses of $ 45,000 in 2018 . At the end of 2019 , Suttle Costa Rica’s net operating loss carry-forward was $ 0 . The provision for income taxes for continuing operations varied from the federal statutory tax rate as follows: Year Ended December 31 2019 2018 Tax at U.S. statutory rate 21.0% 21.0% State income taxes, net of federal benefit 26.2 (0.4) Foreign income taxes, net of foreign tax credits 98.9 (6.2) Other nondeductible items (2.1) (0.6) Effect of increase in uncertain tax positions 17.2 (0.4) Change in valuation allowance (181.7) (20.6) Expense of prior year tax receivable - (5.5) Other 14.0 3.8 Effective tax rate (6.5%) (8.9%) Deferred tax assets and liabilities as of December 31 related to the following: 2019 2018 Deferred tax assets: Allowance for doubtful accounts $ 29,000 $ 25,000 Inventory 1,254,000 1,718,000 Accrued and prepaid expenses 302,000 348,000 Lease liability 44,000 - Domestic net operating loss carry-forward 2,141,000 3,425,000 Long-term compensation plans 248,000 233,000 Nonemployee director stock compensation 514,000 499,000 Other stock compensation 51,000 19,000 Intangible assets 253,000 275,000 Foreign net operating loss carry-forwards and credits 3,087,000 2,885,000 Federal and state credits 767,000 845,000 Other 17,000 17,000 Gross deferred tax assets 8,707,000 10,289,000 Valuation allowance (8,170,000) (9,834,000) Net deferred tax assets 537,000 455,000 Deferred tax liabilities Depreciation (485,000) (436,000) Lease right-of-use asset (42,000) - Net deferred tax liability (527,000) (436,000) Total net deferred tax asset $ 10,000 $ 19,000 The Company assesses available positive and negative evidence to estimate if sufficient future taxable income will be generated to use the existing deferred tax assets. A significant piece of objective negative evidence evaluated was the cumulative loss incurred over the three -year period ending December 31, 2019 . This objective evidence limits the ability to consider other subjective evidence such as the projections for future growth. On the basis of this evaluation, as of December 31, 2019 , a valuation allowance of $ 8,170,000 has been recorded to reflect the portion of the deferred tax asset that is more likely to not be realized. The amount of the deferred tax asset considered realizable, however, could be adjusted if estimates of future taxable income during the carryforward period are reduced or increased or if objective negative evidence in the form of cumulative losses is no longer present and additional weight may be given to subjective evidence such as the Company’s projections for growth. At December 31, 2019 , the Company has a federal net operating loss carryforward from 2015 through 2019 activity of approximately $ 7,687,000 that is available to offset future taxable income and begins to expire in 2035 . The Company also has a federal capital loss carryforward from 2018 of approximately $ 1,930,000 that is available to offset future capital gains and expires in 2023 . During 2015, the Company engaged in a research and development tax credit study for the tax years 2011 to 2014. As a result of this study, the Company claimed $ 1,554,000 of federal and $ 1,024,000 of state research and development credits. The Company amended prior year tax returns to claim these credits and offset prior year taxes paid. Credits not used to reduce taxes are available to be carried forward. At December 31, 2019 , the Company has an estimated federal research and development credit carryforward of approximately $ 467,000 and a state research and development credit carryforward of approximately $ 594,000 . The Company assesses uncertain tax positions in accordance with ASC 740. Under this method, the Company must recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from these uncertain tax positions are measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate resolution. The Company’s practice is to recognize interest and penalties related to income tax matters in income tax expense. Changes in the Company’s uncertain tax positions are summarized as follows: 2019 2018 Uncertain tax positions – January 1 $ 60,000 $ 41,000 Gross increases - current period tax positions 41,000 28,000 Settlements - - Expiration of statute of limitations - (9,000) Uncertain tax positions – December 31, 2019 $ 101,000 $ 60,000 Included in the balance of uncertain tax positions at December 31, 2019 are $ 101,000 of tax benefits that if recognized would affect the tax rate. The Company’s unrecognized tax benefits will be reduced by $ 1,000 in the next twelve months due to statute of limitations expirations. There are no other expected significant changes in the Company’s uncertain tax positions in the next twelve months. The Company’s income tax liability accounts included accruals for interest and penalties of $ 0 at December 31, 2019 . The Company’s 2019 income tax expense decreased by $ 0 due to net decreases for accrued interest and penalties. The Company’s federal and state tax returns and tax returns it has filed in Costa Rica and the United Kingdom are open for review going back to the 2016 tax year. |
Information Concerning Industry
Information Concerning Industry Segments and Major Customers | 12 Months Ended |
Dec. 31, 2019 | |
Information Concerning Industry Segments and Major Customers [Abstract] | |
Information Concerning Industry Segments and Major Customers | NOTE 13 - INFORMATION CONCERNING INDUSTRY SEGMENTS AND MAJOR CUSTOMERS As previously noted, the Company classifies its remaining businesses into three segments as follows: · Transition Networks develops and manufactures PoE switches, media converters, NICs, Ethernet switches and other connectivity products that offer the ability to affordably integrate the benefits of fiber optics into any data network as well as provide connectivity and power to end devices in the IoT ecosystem; · JDL Technologies provides technology solutions that address prevalent IT challenges, including virtualization and cloud solutions, managed services, wired and wireless network design and implementation, and converged infrastructure configuration and deployment; and · Net2Edge develops, manufactures and sells products to transmit packetized voice and data across networks and between copper-wired and fiber optic equipment . Management has chosen to organize the enterprise and disclose reportable segments based on products and services. Intersegment revenues are eliminated upon consolidation. “Other” includes non-allocated corporate overhead costs. As a result of our treatment of Suttle as discontinued operations, “Other” includes amounts previously allocated to Suttle that do not meet the criteria to be included in income from discontinued operations. Transition Networks manufactures its products in Asia and the United States and makes sales in both the U.S. and international markets. JDL Technologies operates in the U.S. and makes sales in the U.S. Net2Edge operates in the U.K. and primarily makes sales in the international markets. Net long-lived assets held in foreign countries were approximately $ 112,000 and $ 159,000 at December 31, 2019 and 2018 , respectively. Consolidated sales to U.S. customers were approximately 74% and 77% of sales from continuing operations in 2019 and 2018 respectively. In 2019 , sales to two of Transition Networks’ customers accounted for 21.2% and 16.2% of consolidated sales. In 2018, sales to two of Transition Networks’ customers accou nted for 17.6% and 15.4% of co nsolidated sales. At December 31, 2019 , Transition Networks had two customers that made up 45% and 17% of consolidated accounts receivable. At December 31, 2018 , Transition Networks had two customers that made up 23% and 19% of consolidated accounts receivable and JDL had one customer that made up 21% of accounts receivable. Information concerning the Company’s operations in the various segments for the years ended December 31, 2019 and 2018 is as follows: Transition JDL Intersegment Networks Technologies Net2Edge Other Eliminations Total 2019 Sales $ 44,860,000 $ 4,741,000 $ 2,330,000 $ - $ (1,025,000) $ 50,906,000 Cost of sales 24,258,000 3,259,000 1,371,000 - (168,000) 28,720,000 Gross profit 20,602,000 1,482,000 959,000 - (857,000) 22,186,000 Selling, general and administrative expenses 15,036,000 1,485,000 2,486,000 4,027,000 (857,000) 22,177,000 Operating income (loss) 5,566,000 (3,000) (1,527,000) (4,027,000) - 9,000 Other income (expense) (15,000) (10,000) 8,000 243,000 - 226,000 Income (loss) from continuing operations before tax $ 5,551,000 $ (13,000) $ (1,519,000) $ (3,784,000) $ - $ 235,000 Depreciation and amortization $ 286,000 $ 92,000 $ 74,000 $ 581,000 $ - $ 1,033,000 Capital expenditures $ 62,000 $ 69,000 $ 19,000 $ 275,000 $ - $ 425,000 Assets $ 16,682,000 $ 1,694,000 $ 3,220,000 $ 37,582,000 $ (27,000) $ 59,151,000 Transition JDL Intersegment Networks Technologies Net2Edge Other Eliminations Total 2018 Sales $ 36,470,000 $ 5,134,000 $ 1,700,000 $ - $ (935,000) $ 42,369,000 Cost of sales 19,775,000 3,830,000 1,215,000 - (73,000) 24,747,000 Gross profit 16,695,000 1,304,000 485,000 - (862,000) 17,622,000 Selling, general and administrative expenses 13,716,000 1,603,000 3,279,000 4,637,000 (862,000) 22,373,000 Operating income (loss) 2,979,000 (299,000) (2,794,000) (4,637,000) - (4,751,000) Other income (expense) (31,000) 3,000 22,000 230,000 - 224,000 Income (loss) from continuing operations before tax $ 2,948,000 $ (296,000) $ (2,772,000) $ (4,407,000) $ - $ (4,527,000) Depreciation and amortization $ 420,000 $ 179,000 $ 65,000 $ 597,000 $ - $ 1,261,000 Capital expenditures $ 81,000 $ - $ 127,000 $ 486,000 $ - $ 694,000 Assets $ 19,228,000 $ 2,572,000 $ 1,894,000 $ 29,654,000 $ (27,000) $ 53,321,000 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | NOTE 14 – FAIR VALUE MEASUREMENTS Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Assets and liabilities measured at fair value are classified using the following hierarchy, which is based upon the transparency of inputs to the valuation as of the measurement date: Level 1 – Observable inputs that reflect unadjusted quoted prices for identical assets or liabilities in active markets that the Company has the ability to access at the measurement date. Level 2 – Observable inputs such as quoted prices for similar instruments and quoted prices in markets that are not active, and inputs that are directly observable or can be corroborated by observable market data. The types of assets and liabilities included in Level 2 are typically either comparable to actively traded securities or contracts, such as treasury securities with pricing interpolated from recent trades of similar securities, or priced with models using highly observable inputs, such as commodity options priced using observable forward prices and volatilities. Level 3 – Significant inputs to pricing that have little or no observability as of the reporting date. The types of assets and liabilities included in Level 3 are those with inputs requiring significant management judgment or estimation, such as the complex and subjective models and forecasts used to determine the fair value of financial instruments. Financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2019 and 2018 , are summarized below: December 31, 2019 Level 1 Level 2 Level 3 Total Fair Value Cash equivalents: Money Market funds $ 8,761,000 $ - $ - $ 8,761,000 Subtotal 8,761,000 - - 8,761,000 Short-term investments: Commercial Paper - 8,694,000 - 8,694,000 Corporate Notes/Bonds - 756,000 - 756,000 Subtotal - 9,450,000 - 9,450,000 Long-term investments: Convertible Debt - - 250,000 250,000 Subtotal - - 250,000 250,000 Total $ 8,761,000 $ 9,450,000 $ 250,000 $ 18,461,000 December 31, 2018 Level 1 Level 2 Level 3 Total Fair Value Cash equivalents: Money Market funds $ 8,428,000 $ - $ - $ 8,428,000 Total $ 8,428,000 $ - $ - $ 8,428,000 We record transfers between levels of the fair value hierarchy, if necessary, at the end of the reporting period. There were no transfers between levels during 2019 and 2018 . |
General Commitments
General Commitments | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies [Abstract] | |
General Commitments | NOTE 15 – GENERAL COMMITMENTS On August 2, 2018, the Company entered into a purchase agreement with Launch Properties, LLC for the sale of the Company’s building located at 10900 Red Circle Drive, Minnetonka, MN for $10,000,000 . The building currently includes the Company’s corporate administrative offices, as well as some operations for Transition Networks and JDL Technologies. The closing of the transaction is subject to a number of closing conditions, including the buyer’s ability to complete due diligence within 180 days and the buyer’s ability to obtain regulatory approval for its intended use of the property. The due diligence period lapsed on January 29, 2019 and the buyer met certain required obligations. One of the conditions of the agreement included non-refundable deposits into an escrow account. As of December 31, 2019, the balance within this escrow account was $175,000 and is included within restricted cash within the consolidated balance sheet. If the sale proceeds, the Company currently expects the transaction to close late in 2020 or early 2021. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 16 – SUBSEQUENT EVENTS The Company has evaluated subsequent events through the date of this filing. Other than those disclosed in Note 4, we do not believe there are any material subsequent events which would require further disclosure. |
Quarterly Operating Results
Quarterly Operating Results | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Operating Results [Abstract] | |
Quarterly Operating Results | Quarterly Operating Results (in thousands except per share amounts) Unaudited Quarter Ended March 31 June 30 Sep 30 Dec 31 2019 Sales $ 11,216 $ 10,704 $ 13,622 $ 15,364 Operating (loss) income from continuing operations (821) (1,129) 772 1,187 Net (loss) income from continuing operations (771) (1,069) 877 1,214 Net income from discontinued operations 1,010 3,842 860 506 Net income 239 2,773 1,737 1,720 Basic net (loss) income per share Continuing operations $ (0.08) $ (0.11) $ 0.09 $ 0.13 Discontinued operations $ 0.11 $ 0.41 $ 0.09 $ 0.06 Diluted net (loss) income per share Continuing operations $ (0.08) $ (0.11) $ 0.09 $ 0.13 Discontinued operations $ 0.11 $ 0.41 $ 0.09 $ 0.05 2018 Sales $ 9,800 $ 9,165 $ 10,283 $ 13,121 Operating (loss) income from continuing operations (1,916) (1,804) (1,251) 220 Net loss from continuing operations (1,826) (1,719) (1,189) (197) Net loss from discontinued operations (34) (922) (356) (549) Net loss (1,860) (2,641) (1,545) (746) Basic net loss per share Continuing operations $ (0.20) $ (0.19) $ (0.13) $ (0.02) Discontinued operations $ (0.00) $ (0.10) $ (0.04) $ (0.07) Diluted net loss per share Continuing operations $ (0.20) $ (0.19) $ (0.13) $ (0.02) Discontinued operations $ (0.00) $ (0.10) $ (0.04) $ (0.07) The company recorded a gain of $2,967,000 on the sale of inventory and capital equipment to PPC in the second quarter. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policy) | 12 Months Ended |
Dec. 31, 2019 | |
Summary of Significant Accounting Policies [Abstract] | |
Description of Business | Description of business: Communications Systems, Inc. (herein collectively called “CSI,” “our” or the “Company”) is a Minnesota corporation organized in 1969 that operates directly and through its subsidiaries located in the United States and the United Kingdom. CSI is principally engaged through its Transition Networks business unit in the manufacture and sale of Ethernet switches, core media conversion products, and other connectivity and data transmission products. Through its JDL Technologies business unit the Company provides technology solutions including virtualization, managed services, wired and wireless network design and implementation , HIPAA-compliant IT services, and converged infrastructure configuration and deployment . Through its Net2Edge business unit, the Company enables telecommunications carriers to connect legacy networks to high-speed networks and services. The Company classifies its businesses into three segments that correspond to these three business units. Non-allocated general and administrative expenses are separately accounted for as “Other” in the Company’s segment reporting. Intersegment revenues are eliminated upon consolidation. |
Principles Of Consolidation | Principles of consolidation: The consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany transactions and accounts have been eliminated. |
Use Of Estimates | Use of estimates: The presentation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company uses estimates based on the best information available in recording transactions and balances resulting from operations. Actual results could differ from those estimates. The Company’s estimates consist principally of reserves for doubtful accounts, sales returns, warranty costs, asset impairment evaluations, accruals for compensation plans, self-insured medical and dental accruals, lower of cost or market inventory adjustments, provisions for income taxes and deferred taxes, and depreciable lives of fixed assets. |
Cash Equivalents | Cash equivalents: For purposes of the consolidated statements of cash flows, the Company considers all highly liquid investments with a maturity of three months or less at the time of purchase to be cash equivalents. As of December 31, 2019 , the Company had $ 13,929,000 in cash and cash equivalents. Of this amount, $ 8,761,000 was invested in short-term money market funds that are not considered to be bank deposits and are not insured or guaranteed by the federal deposit insurance company (FDIC) or other government agency. These money market funds seek to preserve the value of the investment at $ 1.00 per share; however, it is possible to lose money investing in these funds. The remainder is operating cash and certificates of deposit which are fully insured through the FDIC. |
Investments | Investments: Investments consist of certificates of deposit, corporate notes and bonds, and commercial paper that are traded on the open market and are classified as available-for-sale. Available-for-sale investments are reported at fair value with unrealized gains and losses excluded from operations and reported as a separate component of stockholders’ equity, net of tax (see Accumulated other comprehensive loss below). |
Inventories | Inventories: Inventories are stated at the lower of cost or net realizable value. Cost is determined by the first-in, first-out method. Provision to reduce inventories to the lower of cost or net realizable value is made based on a review of excess and obsolete inventories, estimates of future sales, examination of historical consumption rates and the related value of component parts. |
Property, Plant And Equipment | Property, plant and equipment: Property, plant and equipment are recorded at cost. Depreciation is computed using the straight-line method. Depreciation included in cost of sales and selling, general and administrative expenses for continuing operations was $ 1,028,000 and $ 1,249,000 for 2019 and 2018 , respectively. Maintenance and repairs are charged to operations and additions or improvements are capitalized. Items of property sold, retired or otherwise disposed of are removed from the asset and accumulated depreciation accounts and any gains or losses on disposal are reflected in operations. |
Intangible Assets | Intangible Assets: Intangible assets with indefinite useful lives are not amortized, but are tested at least annually for impairment. |
Recoverability Of Long-Lived Assets | Recoverability of long-lived assets: The Company reviews its long-lived assets periodically when impairment indicators exist as required under generally accepted accounting principles. Potential impairment is determined by comparing the carrying value of the assets with expected net cash flows expected to be provided by operating activities of the business or related products. If the sum of the expected future net cash flows is less than the carrying value, an impairment loss would be measured by comparing the amount by which the carrying value exceeds the fair value of the asset. |
Warranty | Warranty: The Company reserves for the estimated cost of product warranties at the time revenue is recognized. We estimate the costs of our warranty obligations based on our warranty policy or applicable contractual warranty, historical experience of known product failure rates, and use of materials and service delivery costs incurred in correcting product failures. Management reviews the estimated warranty liability on a quarterly basis to determine its adequacy. The following table presents the changes in the Company’s warranty liability, included in other accrued liabilities in the consolidated balance sheets, for the years ended December 31, 2019 and 2018 , which relate to normal product warranties and a five -year obligation to provide for potential future liabilities for certain network equipment sales: Year Ended December 31 2019 2018 Beginning balance $ 554,000 $ 543,000 Amounts charged to expense 10,000 97,000 Actual warranty costs paid (51,000) (86,000) Ending balance $ 513,000 $ 554,000 |
Accumulated Other Comprehensive Loss | Accumulated other comprehensive loss: The components of accumulated other comprehensive loss are as follows: Foreign Currency Translation Unrealized (loss)/gain on securities Accumulated Other Comprehensive Loss December 31, 2017 $ (625,000) $ 12,000 $ (613,000) Net current period change (139,000) 1,000 (138,000) December 31, 2018 $ (764,000) $ 13,000 $ (751,000) Net current period change 55,000 (2,000) 53,000 December 31, 2019 $ (709,000) $ 11,000 $ (698,000) |
Revenue Recognition | Revenue recognition : The Company’s manufacturing operations (Transition Networks and Net2Edge) recognize revenue upon delivery of the Company’s connectivity infrastructure and data transmission products. To determine when revenue should be recognized, it is important to determine when the transfer of control has occurred. The Company has determined that control transfers for these products upon shipment or delivery to the customer, in accordance with the agreed upon shipping terms. As such, the timing of revenue recognition occurs at a specific point in time. Sales are made directly to customers and through distributors. Payment terms for distributors are consistent with the terms of the Company’s direct customers. The Company records a provision for sales returns, sales incentives and warranty costs at the time of the sale based on historical experience and current trends. The Company has determined that the following performance obligations identified in its JDL Technologies, Inc. business unit are transferred over time: managed services and professional services (time and materials (“T&M”) and fixed price). JDL’s managed services performance obligation is a bundled solution, a series of distinct services that are substantially the same and that have the same pattern of transfer to the customer and are recognized evenly over the term of the contract. T&M professional services arrangements are measured over time with an input method based on hours expended towards satisfying this performance obligation. Fixed price professional service arrangements under a relatively longer-term service will also be measured over time with an input method based on hours expended. The Company has also identified the following performance obligations within its JDL Technologies business unit that are recognized at a point in time which include resale of third-party hardware and software, installation, arranging for another party to transfer services to the customer, and certain professional services. The resale of third-party hardware and software is recognized at a point in time, when the goods are shipped or delivered to the customer’s location, in accordance with the agreed upon shipping terms. Installation services are recognized at a point in time when the services are completed. The service the Company provides to arrange for another party to transfer services to the customer is satisfied at a point in time as the Company has transferred control upon the service first being made available to the customer by the third party vendor, which are required to be presented on a net basis. Depending on the nature of the service, certain professional services transfer control at a point in time. The Company evaluates these circumstances on a case by case basis to determine if revenue should be recognized over time or at a point in time. See Note 2 for further discussion regarding revenue recognition. |
Research And Development | Research and development: Research and development costs consist of outside testing services, equipment and supplies associated with enhancing existing products and developing new products. Research and development costs are expensed when incurred and totaled $ 3,600,000 in 2019 and $ 3,542,000 in 2018 . |
Employee Retirement Benefits | Employee Retirement Benefits: The Company has an Employee Savings Plan (401(k)) and matches a percentage of employee contributions up to six percent of compensation. Contributions to the plan in 2019 and 2018 were $ 401,000 and $ 450,000 , respectively. |
Net Income Per Share | Net income per share: Basic net income per common share is based on the weighted average number of common shares outstanding during each year. Diluted net income per common share adjusts for the dilutive effect of potential common shares outstanding. The Company’s only potential common shares outstanding are stock options and shares associated with the long-term incentive compensation plans, which resulted in a dilutive effect of 65,163 shares for 2019 and no dilutive effect in 2018. The Company calculates the dilutive effect of outstanding options and unvested shares using the treasury stock method. Options totaling 860,539 were excluded from the calculation of diluted earnings per share for year ended December 31, 2019 , because the exercise price was greater than the average market price of common stock during the year and deferred stock awards totaling 178,278 shares were not included because of unmet performance conditions. Due to the net loss in 2018, there was no dilutive impact from outstanding stock options or unvested shares. Options totaling 1,320,492 would have been excluded from the calculation of diluted earnings per share for year ended December 31, 2018 , because the exercise price was greater than the average market price of common stock during the year and deferred stock awards totaling 265,491 shares would not have been included because of unmet performance conditions. |
Share Based Compensation | Share based compensation: The Company accounts for share based compensation awards on a fair value basis. The estimated grant date fair value of each stock-based award is recognized in income over the requisite service period (generally the vesting period). The estimated fair value of each option is calculated using the Black-Scholes option-pricing model. |
Accounting Standards Issued | Accounting standards issued: In June 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.” The amendments in this update replace the incurred loss impairment methodology in current U.S. GAAP with a methodology that reflects expected credit losses. This ASU is intended to provide financial statement users with more decision-useful information about expected credit losses and is effective for annual periods and interim periods for those annual periods beginning after December 15, 2022, which for us is the first quarter ending March 31, 2023. Entities may early adopt beginning after December 15, 2018. We are currently evaluating the impact of the adoption of ASU 2016-13 on our consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement.” This new standard requires changes to the disclosure requirements for fair value measurements for certain Level 3 items and specifies that some of the changes must be applied prospectively, while others should be applied retrospectively. This standard is effective for public business entities in fiscal years beginning after December 15, 2019, and for interim periods within those fiscal years, with early adoption permitted. We are currently evaluating the impact of the adoption of ASU 2018-13 on our consolidated financial statements. |
Accounting Standards Adopted | Accounting standards adopted: In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)”, which amends existing guidance and requires an entity to recognize both assets and liabilities arising from financing and operating leases, along with additional qualitative and quantitative disclosures. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within that reporting period. The Company adopted the accounting standard effective January 1, 2019. Please see Note 3 for the required disclosures related to the impact of adopting this standard. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Summary of Significant Accounting Policies [Abstract] | |
Schedule of Warranty | Year Ended December 31 2019 2018 Beginning balance $ 554,000 $ 543,000 Amounts charged to expense 10,000 97,000 Actual warranty costs paid (51,000) (86,000) Ending balance $ 513,000 $ 554,000 |
Components of Accumulated Other Comprehensive Loss | Foreign Currency Translation Unrealized (loss)/gain on securities Accumulated Other Comprehensive Loss December 31, 2017 $ (625,000) $ 12,000 $ (613,000) Net current period change (139,000) 1,000 (138,000) December 31, 2018 $ (764,000) $ 13,000 $ (751,000) Net current period change 55,000 (2,000) 53,000 December 31, 2019 $ (709,000) $ 11,000 $ (698,000) |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue Recognition [Abstract] | |
Schedule of Disaggregation of Revenues | For Transition Networks, we analyze revenue by region and product group, which is as follows for the years ended December 31, 2019 and 2018 : Transition Networks Revenue by Region 2019 2018 North America $ 39,748,000 $ 31,059,000 Europe, Middle East, Africa ("EMEA") 2,651,000 2,017,000 Rest of World 2,461,000 3,394,000 $ 44,860,000 $ 36,470,000 Transition Networks Revenue by Product Group 2019 2018 Media converters $ 20,005,000 $ 20,226,000 Ethernet switches and adapters 18,845,000 9,694,000 Other products 6,010,000 6,550,000 $ 44,860,000 $ 36,470,000 For JDL, we analyze revenue by customer group, which is as follows for the years ended December 31, 2019 and 2018 : JDL Revenue by Customer Group 2019 2018 Education $ 1,926,000 $ 2,651,000 Healthcare and commercial clients 2,815,000 2,483,000 $ 4,741,000 $ 5,134,000 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Information Related to ROU Assets and Related Lease Liabilities | Year Ended December 31, 2019 Cash paid for operating leases $ 112,000 Right-of-use assets obtained in exchange for new operating lease obligations (1) 450,000 As of December 31, 2019 Weighted-average remaining lease term 3.3 years Weighted-average discount rate 4.5% (1) Includes $280,000 for operating leases existing on January 1, 2019 and $188,000 for operating leases that commenced in the first quarter of 2019. |
Maturities of Lease Liabilities | 2020 $ 130,000 2021 131,000 2022 89,000 2023 48,000 2024 4,000 Total lease payments 402,000 Less imputed interest (42,000) Total operating lease liabilities $ 360,000 |
Future Minimum Lease Commitments under Operating Leases based on ASC 840 | Year Ending December 31: 2019 $ 106,000 2020 86,000 2021 86,000 2022 50,000 $ 328,000 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Discontinued Operations [Abstract] | |
Schedule of Discontinued Operations Assets and Liabilities Classified as Held-for-Sale | December 31, 2019 December 31, 2018 Trade accounts receivable $ 2,235,000 $ 3,808,000 Inventories 3,009,000 4,177,000 Other current assets 93,000 91,000 Total current assets $ 5,337,000 $ 8,076,000 Property, plant, and equipment $ 883,000 $ 2,115,000 Total noncurrent assets $ 883,000 $ 2,115,000 Total assets held for sale $ 6,220,000 $ 10,191,000 Accounts payable $ 1,111,000 $ 1,309,000 Other accrued liabilities 82,000 71,000 Total liabilities held for sale $ 1,193,000 $ 1,380,000 |
Scheulde of Financial Results of Discontinued Operations | Year Ended December 31 2019 2018 Sales $ 18,879,000 $ 23,394,000 Cost of sales 12,965,000 19,709,000 Selling, general and administrative expenses 2,684,000 5,129,000 Restructuring expenses - 364,000 (Gain) loss on sale of assets (2,990,000) 63,000 Other income - (11,000) Operating income before income taxes 6,220,000 (1,860,000) Income tax expense 2,000 1,000 Income (loss) from discontinued operations $ 6,218,000 $ (1,861,000) |
Cash Equivalents and Investme_2
Cash Equivalents and Investments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Cash Equivalents and Investments [Abstract] | |
Schedule of Cash Equivalents and Available-for-Sale Securities | December 31, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash Equivalents Short-Term Investments Long-Term Investments Cash equivalents: Money Market funds $ 8,761,000 $ - $ - $ 8,761,000 $ 8,761,000 $ - $ - Subtotal $ 8,761,000 $ - $ - $ 8,761,000 $ 8,761,000 $ - $ - Investments: Commercial Paper 8,695,000 - (1,000) 8,694,000 - 8,694,000 - Corporate Notes/Bonds 756,000 - - 756,000 - 756,000 - Convertible Debt 250,000 - - 250,000 - - 250,000 Subtotal 9,701,000 - (1,000) 9,700,000 - 9,450,000 250,000 Total $ 18,462,000 $ - $ (1,000) $ 18,461,000 $ 8,761,000 $ 9,450,000 $ 250,000 December 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash Equivalents Short-Term Investments Long-Term Investments Cash equivalents: Money Market funds $ 8,428,000 $ - $ - $ 8,428,000 $ 8,428,000 $ - $ - Total $ 8,428,000 $ - $ - $ 8,428,000 $ 8,428,000 $ - $ - |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Inventories [Abstract] | |
Schedule of Inventories | December 31 2019 2018 Finished goods $ 6,728,000 $ 7,140,000 Raw and processed materials 1,803,000 4,859,000 $ 8,531,000 $ 11,999,000 |
Property, Plant And Equipment (
Property, Plant And Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule Of Property, Plant And Equipment | Estimated December 31 useful life 2019 2018 Land $ 2,965,000 $ 2,965,000 Buildings and improvements 3 -40 years 8,727,000 8,782,000 Machinery and equipment 3 -15 years 9,347,000 11,406,000 Furniture and fixtures 3 -10 years 3,628,000 3,750,000 Construction in progress - 127,000 24,667,000 27,030,000 Less accumulated depreciation (16,429,000) (18,183,000) $ 8,238,000 $ 8,847,000 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Intangible Assets [Abstract] | |
Schedule of Finite-Lived Intangible Assets | December 31, 2019 Gross Carrying Amount Accumulated Amortization Impairment Loss Foreign Currency Translation Net Trademarks $ 98,000 $ (78,000) $ - $ (20,000) $ - Customer relationships 491,000 (230,000) (154,000) (107,000) - Technology 229,000 (189,000) - (40,000) - $ 818,000 $ (497,000) $ (154,000) $ (167,000) $ - December 31, 2018 Gross Carrying Amount Accumulated Amortization Impairment Loss Foreign Currency Translation Net Trademarks $ 98,000 $ (74,000) $ - $ (19,000) $ 5,000 Customer relationships 491,000 (230,000) (154,000) (107,000) - Technology 229,000 (178,000) - (51,000) - $ 818,000 $ (482,000) $ (154,000) $ (177,000) $ 5,000 |
Stock Compensation (Tables)
Stock Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Stock Compensation [Abstract] | |
Schedule of Changes in Number of Outstanding Stock Options Under Director Plan, Stock Plan and 2011 Incentive Plan | Weighted average Weighted average exercise price remaining Options per share contractual term Outstanding – December 31, 2017 1,172,659 $ 8.63 4.55 years Awarded 278,665 3.43 Exercised - - Forfeited (70,832) 8.56 Outstanding – December 31, 2018 1,380,492 $ 7.56 4.18 years Awarded 100,769 2.69 Exercised (151,950) 4.08 Forfeited (198,839) 9.33 Outstanding – December 31, 2019 1,130,472 7.28 3.48 years Exercisable at December 31, 2019 871,430 $ 8.33 2.96 years Expected to vest December 31, 2019 1,130,472 7.28 3.48 years |
Valuation Assumptions Of Stock Option Plan | Year Ended December 31 2019 2018 Expected volatility 31.3% 28.6% Risk free interest rate 2.2% 2.7% Expected holding period 6 years 6 years Dividend yield 3.0% 4.1% |
Summary Of The Status Of Stock Options Outstanding | Weighted Average Weighted Remaining Average Range of Exercise Prices Shares Option Life Exercise Price $2.54 to $5.24 449,989 5.2 years $ 3.57 $5.25 to $7.49 256,433 3.3 years 6.58 $7.50 to $9.74 0 0 years 0.00 $9.75 to $11.99 347,863 1.8 years 11.35 $12.00 to $14.15 76,187 1.2 years 12.97 |
Schedule of Changes in the Number of Deferred Stock Shares Under the Incentive Plan | Weighted Average Grant Date Shares Fair Value Outstanding – December 31, 2017 190,524 $ 6.60 Granted 163,002 3.56 Vested (29,708) 10.51 Forfeited (53,752) 5.31 Outstanding – December 31, 2018 270,066 4.48 Granted 161,107 2.76 Vested (4,575) 4.56 Forfeited (105,371) 3.90 Outstanding – December 31, 2019 321,227 3.37 |
Schedule of Changes in Restricted Stock Units Outstanding | Weighted Average Grant Date Shares Fair Value Outstanding – December 31, 2017 13,793 6.33 Vested (13,793) 6.33 Outstanding – December 31, 2018 - - Vested - - Outstanding – December 31, 2019 - - |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Taxes [Abstract] | |
Income Tax (Benefit) Expense By Jurisdiction | Year Ended December 31 2019 2018 Current year income taxes (benefit): Federal $ (45,000) $ 3,000 State 20,000 133,000 Foreign - 249,000 (25,000) 385,000 Deferred income taxes: Federal $ 10,000 $ 19,000 10,000 19,000 $ (15,000) $ 404,000 |
Reconciliation Of Effective Tax Rate, By Percentage | Year Ended December 31 2019 2018 Tax at U.S. statutory rate 21.0% 21.0% State income taxes, net of federal benefit 26.2 (0.4) Foreign income taxes, net of foreign tax credits 98.9 (6.2) Other nondeductible items (2.1) (0.6) Effect of increase in uncertain tax positions 17.2 (0.4) Change in valuation allowance (181.7) (20.6) Expense of prior year tax receivable - (5.5) Other 14.0 3.8 Effective tax rate (6.5%) (8.9%) |
Schedule Of Deferred Tax Assets And Liabilities | 2019 2018 Deferred tax assets: Allowance for doubtful accounts $ 29,000 $ 25,000 Inventory 1,254,000 1,718,000 Accrued and prepaid expenses 302,000 348,000 Lease liability 44,000 - Domestic net operating loss carry-forward 2,141,000 3,425,000 Long-term compensation plans 248,000 233,000 Nonemployee director stock compensation 514,000 499,000 Other stock compensation 51,000 19,000 Intangible assets 253,000 275,000 Foreign net operating loss carry-forwards and credits 3,087,000 2,885,000 Federal and state credits 767,000 845,000 Other 17,000 17,000 Gross deferred tax assets 8,707,000 10,289,000 Valuation allowance (8,170,000) (9,834,000) Net deferred tax assets 537,000 455,000 Deferred tax liabilities Depreciation (485,000) (436,000) Lease right-of-use asset (42,000) - Net deferred tax liability (527,000) (436,000) Total net deferred tax asset $ 10,000 $ 19,000 |
Schedule Of Unrecognized Tax Benefits | 2019 2018 Uncertain tax positions – January 1 $ 60,000 $ 41,000 Gross increases - current period tax positions 41,000 28,000 Settlements - - Expiration of statute of limitations - (9,000) Uncertain tax positions – December 31, 2019 $ 101,000 $ 60,000 |
Information Concerning Indust_2
Information Concerning Industry Segments and Major Customers (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Information Concerning Industry Segments and Major Customers [Abstract] | |
Schedule of Segment Information | Transition JDL Intersegment Networks Technologies Net2Edge Other Eliminations Total 2019 Sales $ 44,860,000 $ 4,741,000 $ 2,330,000 $ - $ (1,025,000) $ 50,906,000 Cost of sales 24,258,000 3,259,000 1,371,000 - (168,000) 28,720,000 Gross profit 20,602,000 1,482,000 959,000 - (857,000) 22,186,000 Selling, general and administrative expenses 15,036,000 1,485,000 2,486,000 4,027,000 (857,000) 22,177,000 Operating income (loss) 5,566,000 (3,000) (1,527,000) (4,027,000) - 9,000 Other income (expense) (15,000) (10,000) 8,000 243,000 - 226,000 Income (loss) from continuing operations before tax $ 5,551,000 $ (13,000) $ (1,519,000) $ (3,784,000) $ - $ 235,000 Depreciation and amortization $ 286,000 $ 92,000 $ 74,000 $ 581,000 $ - $ 1,033,000 Capital expenditures $ 62,000 $ 69,000 $ 19,000 $ 275,000 $ - $ 425,000 Assets $ 16,682,000 $ 1,694,000 $ 3,220,000 $ 37,582,000 $ (27,000) $ 59,151,000 Transition JDL Intersegment Networks Technologies Net2Edge Other Eliminations Total 2018 Sales $ 36,470,000 $ 5,134,000 $ 1,700,000 $ - $ (935,000) $ 42,369,000 Cost of sales 19,775,000 3,830,000 1,215,000 - (73,000) 24,747,000 Gross profit 16,695,000 1,304,000 485,000 - (862,000) 17,622,000 Selling, general and administrative expenses 13,716,000 1,603,000 3,279,000 4,637,000 (862,000) 22,373,000 Operating income (loss) 2,979,000 (299,000) (2,794,000) (4,637,000) - (4,751,000) Other income (expense) (31,000) 3,000 22,000 230,000 - 224,000 Income (loss) from continuing operations before tax $ 2,948,000 $ (296,000) $ (2,772,000) $ (4,407,000) $ - $ (4,527,000) Depreciation and amortization $ 420,000 $ 179,000 $ 65,000 $ 597,000 $ - $ 1,261,000 Capital expenditures $ 81,000 $ - $ 127,000 $ 486,000 $ - $ 694,000 Assets $ 19,228,000 $ 2,572,000 $ 1,894,000 $ 29,654,000 $ (27,000) $ 53,321,000 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Measurements [Abstract] | |
Schedule of Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis | December 31, 2019 Level 1 Level 2 Level 3 Total Fair Value Cash equivalents: Money Market funds $ 8,761,000 $ - $ - $ 8,761,000 Subtotal 8,761,000 - - 8,761,000 Short-term investments: Commercial Paper - 8,694,000 - 8,694,000 Corporate Notes/Bonds - 756,000 - 756,000 Subtotal - 9,450,000 - 9,450,000 Long-term investments: Convertible Debt - - 250,000 250,000 Subtotal - - 250,000 250,000 Total $ 8,761,000 $ 9,450,000 $ 250,000 $ 18,461,000 December 31, 2018 Level 1 Level 2 Level 3 Total Fair Value Cash equivalents: Money Market funds $ 8,428,000 $ - $ - $ 8,428,000 Total $ 8,428,000 $ - $ - $ 8,428,000 |
Quarterly Operating Results (Ta
Quarterly Operating Results (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Operating Results [Abstract] | |
Schedule Of Quarterly Operating Results | Quarter Ended March 31 June 30 Sep 30 Dec 31 2019 Sales $ 11,216 $ 10,704 $ 13,622 $ 15,364 Operating (loss) income from continuing operations (821) (1,129) 772 1,187 Net (loss) income from continuing operations (771) (1,069) 877 1,214 Net income from discontinued operations 1,010 3,842 860 506 Net income 239 2,773 1,737 1,720 Basic net (loss) income per share Continuing operations $ (0.08) $ (0.11) $ 0.09 $ 0.13 Discontinued operations $ 0.11 $ 0.41 $ 0.09 $ 0.06 Diluted net (loss) income per share Continuing operations $ (0.08) $ (0.11) $ 0.09 $ 0.13 Discontinued operations $ 0.11 $ 0.41 $ 0.09 $ 0.05 2018 Sales $ 9,800 $ 9,165 $ 10,283 $ 13,121 Operating (loss) income from continuing operations (1,916) (1,804) (1,251) 220 Net loss from continuing operations (1,826) (1,719) (1,189) (197) Net loss from discontinued operations (34) (922) (356) (549) Net loss (1,860) (2,641) (1,545) (746) Basic net loss per share Continuing operations $ (0.20) $ (0.19) $ (0.13) $ (0.02) Discontinued operations $ (0.00) $ (0.10) $ (0.04) $ (0.07) Diluted net loss per share Continuing operations $ (0.20) $ (0.19) $ (0.13) $ (0.02) Discontinued operations $ (0.00) $ (0.10) $ (0.04) $ (0.07) |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Summary of Significant Accounting Policies [Line Items] | ||
Cash and cash equivalents | $ 13,928,504 | $ 11,056,426 |
Money market funds | $ 8,761,000 | |
Value of the investment in short-term money market funds sought to be preserved (in dollars per share) | $ 1 | |
Depreciation | $ 1,028,000 | 1,249,000 |
Product warranty period | 5 years | |
Research and development costs | $ 3,600,000 | 3,542,000 |
Maximum matching percentage by employer | 6.00% | |
Contributions to the plan | $ 401,000 | $ 450,000 |
Dilutive shares | 65,163 | 0 |
Employee Stock Option [Member] | ||
Summary of Significant Accounting Policies [Line Items] | ||
Shares not included in the computation of diluted earnings per share | 860,539 | 1,320,492 |
Deferred Stock Awards [Member] | ||
Summary of Significant Accounting Policies [Line Items] | ||
Shares not included in the computation of diluted earnings per share | 178,278 | 265,491 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Schedule of Warranty) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Summary of Significant Accounting Policies [Abstract] | ||
Beginning balance | $ 554 | $ 543 |
Amounts charged to expense | 10 | 97 |
Actual warranty costs paid | (51) | (86) |
Ending balance | $ 513 | $ 554 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Components of Accumulated Other Comprehensive Loss) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
BALANCE | $ 41,653,127 | $ 49,170,727 |
BALANCE | 47,392,282 | 41,653,127 |
Foreign Currency Translation [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
BALANCE | (764,000) | (625,000) |
Net current period change | 55,000 | (139,000) |
BALANCE | (709,000) | (764,000) |
Unrealized (loss)/gain on securities [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
BALANCE | 13,000 | 12,000 |
Net current period change | (2,000) | 1,000 |
BALANCE | 11,000 | 13,000 |
Accumulated Other Comprehensive Income (Loss) [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
BALANCE | (751,293) | (613,379) |
Net current period change | 53,000 | (138,000) |
BALANCE | $ (697,664) | $ (751,293) |
Revenue Recognition (Narrative)
Revenue Recognition (Narrative) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | ||||||||||
Revenues | $ 15,364,000 | $ 13,622,000 | $ 10,704,000 | $ 11,216,000 | $ 13,121,000 | $ 10,283,000 | $ 9,165,000 | $ 9,800,000 | $ 50,906,179 | $ 42,369,232 |
Cost to obtain contracts | $ 0 | $ 0 | 0 | 0 | ||||||
Net2Edge [Member] | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Revenues | $ 2,330,000 | $ 1,700,000 |
Revenue Recognition (Schedule o
Revenue Recognition (Schedule of Disaggregation of Revenues) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||||||||||
Revenues | $ 15,364,000 | $ 13,622,000 | $ 10,704,000 | $ 11,216,000 | $ 13,121,000 | $ 10,283,000 | $ 9,165,000 | $ 9,800,000 | $ 50,906,179 | $ 42,369,232 |
Transition Networks [Member] | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Revenues | 44,860,000 | 36,470,000 | ||||||||
Transition Networks [Member] | North America [Member] | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Revenues | 39,748,000 | 31,059,000 | ||||||||
Transition Networks [Member] | Europe, Middle East, Africa ("EMEA") [Member] | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Revenues | 2,651,000 | 2,017,000 | ||||||||
Transition Networks [Member] | Rest of World [Member] | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Revenues | 2,461,000 | 3,394,000 | ||||||||
Transition Networks [Member] | Media Converters [Member] | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Revenues | 20,005,000 | 20,226,000 | ||||||||
Transition Networks [Member] | Ethernet Switches and Adapters [Member] | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Revenues | 18,845,000 | 9,694,000 | ||||||||
Transition Networks [Member] | Other Products [Member] | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Revenues | 6,010,000 | 6,550,000 | ||||||||
JDL Technologies [Member] | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Revenues | 4,741,000 | 5,134,000 | ||||||||
JDL Technologies [Member] | Education [Member] | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Revenues | 1,926,000 | 2,651,000 | ||||||||
JDL Technologies [Member] | Healthcare and Commercial Clients [Member] | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Revenues | $ 2,815,000 | $ 2,483,000 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) | 1 Months Ended | 12 Months Ended | |||
Feb. 28, 2019item | Dec. 31, 2019USD ($)item | Dec. 31, 2018USD ($) | Mar. 31, 2019USD ($) | Jan. 01, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | |||||
Right of use asset | $ | $ 367,909 | $ 188,000 | $ 280,000 | ||
Lease liability | $ | $ 360,000 | $ 259,000 | |||
Number of locations | item | 1 | 2 | |||
Lease expense | $ | $ 124,000 | $ 223,000 | |||
Additional future obligation, lease not yet commenced | $ | $ 0 | ||||
Lease 1 [Member] | |||||
Lessee, Lease, Description [Line Items] | |||||
Number of leases with option to extend | item | 1 | ||||
Number of options to extend | item | 2 | ||||
Lease renewal term | 5 years | ||||
Lease 2 [Member] | |||||
Lessee, Lease, Description [Line Items] | |||||
Date of option to terminate | 2022 | ||||
Number of leases with annual payment adjustment | item | 1 | ||||
Percentage of annual rent adjustment | 3.00% | ||||
Minimum [Member] | |||||
Lessee, Lease, Description [Line Items] | |||||
Lease term | 5 years | ||||
Maximum [Member] | |||||
Lessee, Lease, Description [Line Items] | |||||
Lease term | 8 years |
Leases (Information Related to
Leases (Information Related to ROU Assets and Related Lease Liabilities) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Mar. 31, 2019 | Jan. 01, 2019 | |
Leases [Abstract] | |||
Cash paid for operating leases | $ 112,000 | ||
Right-of-use assets obtained in exchange for new operating lease obligations | $ 449,995 | ||
Weighted-average remaining lease term | 3 years 3 months 18 days | ||
Weighted-average discount rate | 4.50% | ||
Right of use asset | $ 367,909 | $ 188,000 | $ 280,000 |
Leases (Maturities of Lease Lia
Leases (Maturities of Lease Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 |
Leases [Abstract] | ||
2020 | $ 130 | |
2021 | 131 | |
2022 | 89 | |
2023 | 48 | |
2024 | 4 | |
Total lease payments | 402 | |
Less imputed interest | (42) | |
Total operating lease liabilities | $ 360 | $ 259 |
Leases (Future Minimum Lease Co
Leases (Future Minimum Lease Commitments under Operating Leases based on ASC 840) (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 106 |
2020 | 86 |
2021 | 86 |
2022 | 50 |
Total minimum future lease commitments | $ 328 |
Discontinued Operations (Narrat
Discontinued Operations (Narrative) (Details) | Mar. 11, 2020USD ($)item | Apr. 05, 2019USD ($) | Jun. 30, 2019USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Restructuring expense | $ 364,000 | ||||
Restructuring payments | $ 364,000 | ||||
Restructuring accrual | 0 | ||||
Restricted cash | $ 679,006 | ||||
Suttle FutureLink Fiber Business Line [Member] | Discontinued Operations, Disposed of by Sale [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Proceeds from sale | $ 5,000,000 | ||||
Restricted cash | $ 500,000 | ||||
Gain on sale of FutureLink Fiber business line | $ 2,967,000 | ||||
Subsequent Event [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Number of buildings leased to purchaser | item | 2 | ||||
Subsequent Event [Member] | Remainder of Suttle Business Lines [Member] | Discontinued Operations, Disposed of by Sale [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Proceeds from sale | $ 8,000,000 | ||||
Minimum [Member] | Subsequent Event [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Base rents | 6,970 | ||||
Maximum [Member] | Subsequent Event [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Base rents | $ 7,180 |
Discontinued Operations (Schedu
Discontinued Operations (Schedule of Discontinued Operations Assets and Liabilities Classified as Held-for-Sale) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Discontinued Operations [Abstract] | ||
Trade accounts receivable | $ 2,235 | $ 3,808 |
Inventories | 3,009 | 4,177 |
Other current assets | 93 | 91 |
Total current assets | 5,337 | 8,076 |
Property, plant, and equipment | 883 | 2,115 |
Total noncurrent assets | 883 | 2,115 |
Total assets held for sale | 6,220 | 10,191 |
Accounts payable | 1,111 | 1,309 |
Other accrued liabilities | 82 | 71 |
Total liabilities held for sale | $ 1,193 | $ 1,380 |
Discontinued Operations (Scheul
Discontinued Operations (Scheulde of Financial Results of Discontinued Operations) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Discontinued Operations [Abstract] | ||||||||||
Sales | $ 18,879,000 | $ 23,394,000 | ||||||||
Cost of sales | 12,965,000 | 19,709,000 | ||||||||
Selling, general and administrative expenses | 2,684,000 | 5,129,000 | ||||||||
Restructuring expenses | 364,000 | |||||||||
(Gain) loss on sale of assets | (2,990,000) | 63,000 | ||||||||
Other income | (11,000) | |||||||||
Operating income before income taxes | 6,220,000 | (1,860,000) | ||||||||
Income tax expense | 2,000 | 1,000 | ||||||||
Income (loss) from discontinued operations | $ 506,000 | $ 860,000 | $ 3,842,000 | $ 1,010,000 | $ (549,000) | $ (356,000) | $ (922,000) | $ (34,000) | $ 6,218,430 | $ (1,860,730) |
Cash Equivalents and Investme_3
Cash Equivalents and Investments (Narrative) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Cash Equivalents and Investments [Abstract] | ||
Gross realized gains (losses) | $ 0 | $ 0 |
Cash Equivalents and Investme_4
Cash Equivalents and Investments (Schedule of Cash Equivalents and Available-for-Sale Securities) (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 18,462,000 | $ 8,428,000 |
Gross Unrealized Gains | ||
Gross Unrealized Losses | (1,000) | |
Fair Value | 18,461,000 | 8,428,000 |
Cash Equivalents | 8,761,000 | 8,428,000 |
Short-Term Investments | 9,449,650 | |
Long-Term Investments | 250,000 | |
Cash Equivalents [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 8,761,000 | |
Gross Unrealized Gains | ||
Gross Unrealized Losses | ||
Fair Value | 8,761,000 | |
Cash Equivalents | 8,761,000 | |
Short-Term Investments | ||
Long-Term Investments | ||
Cash Equivalents [Member] | Money Market Funds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 8,761,000 | 8,428,000 |
Gross Unrealized Gains | ||
Gross Unrealized Losses | ||
Fair Value | 8,761,000 | 8,428,000 |
Cash Equivalents | 8,761,000 | 8,428,000 |
Short-Term Investments | ||
Long-Term Investments | ||
Investments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 9,701,000 | |
Gross Unrealized Gains | ||
Gross Unrealized Losses | (1,000) | |
Fair Value | 9,700,000 | |
Cash Equivalents | ||
Short-Term Investments | 9,450,000 | |
Long-Term Investments | 250,000 | |
Investments [Member] | Commercial Paper [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 8,695,000 | |
Gross Unrealized Gains | ||
Gross Unrealized Losses | (1,000) | |
Fair Value | 8,694,000 | |
Cash Equivalents | ||
Short-Term Investments | 8,694,000 | |
Long-Term Investments | ||
Investments [Member] | Corporate Notes/Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 756,000 | |
Gross Unrealized Gains | ||
Gross Unrealized Losses | ||
Fair Value | 756,000 | |
Cash Equivalents | ||
Short-Term Investments | 756,000 | |
Long-Term Investments | ||
Investments [Member] | Convertible Debt [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 250,000 | |
Gross Unrealized Gains | ||
Gross Unrealized Losses | ||
Fair Value | 250,000 | |
Cash Equivalents | ||
Short-Term Investments | ||
Long-Term Investments | $ 250,000 |
Inventories (Schedule of Invent
Inventories (Schedule of Inventories) (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Inventories [Abstract] | ||
Finished goods | $ 6,728,000 | $ 7,140,000 |
Raw and processed materials | 1,803,000 | 4,859,000 |
Inventories | $ 8,531,112 | $ 11,998,638 |
Property, Plant And Equipment_2
Property, Plant And Equipment (Schedule Of Property, Plant And Equipment) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | $ 24,667,000 | $ 27,030,000 |
Less accumulated depreciation | (16,429,000) | (18,183,000) |
Property, plant and equipment, net | 8,238,089 | 8,847,091 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | 2,965,000 | 2,965,000 |
Buildings And Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | 8,727,000 | 8,782,000 |
Machinery And Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | 9,347,000 | 11,406,000 |
Furniture And Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | $ 3,628,000 | 3,750,000 |
Construction In Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | $ 127,000 | |
Minimum [Member] | Buildings And Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 3 years | |
Minimum [Member] | Machinery And Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 3 years | |
Minimum [Member] | Furniture And Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 3 years | |
Maximum [Member] | Buildings And Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 40 years | |
Maximum [Member] | Machinery And Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 15 years | |
Maximum [Member] | Furniture And Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 10 years |
Intangible Assets (Narrative) (
Intangible Assets (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Intangible Assets [Abstract] | ||
Amortization expense | $ 5 | $ 12 |
Intangible Assets (Schedule of
Intangible Assets (Schedule of Finite-Lived Intangible Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 818 | $ 818 |
Accumulated Amortization | (497) | (482) |
Impairment loss | (154) | (154) |
Foreign Currency Translation | (167) | (177) |
Net | 5 | |
Trademarks [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 98 | 98 |
Accumulated Amortization | (78) | (74) |
Impairment loss | ||
Foreign Currency Translation | (20) | (19) |
Net | 5 | |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 491 | 491 |
Accumulated Amortization | (230) | (230) |
Impairment loss | (154) | (154) |
Foreign Currency Translation | (107) | (107) |
Net | ||
Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 229 | 229 |
Accumulated Amortization | (189) | (178) |
Impairment loss | ||
Foreign Currency Translation | (40) | (51) |
Net |
Commitments and Contingencies (
Commitments and Contingencies (Narrative) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Commitments and Contingencies [Line Items] | ||
(Income) expense for long-term compensation plan | $ 164,000 | $ (11,000) |
Accrual for long-term compensation plans | 164,000 | 0 |
Line of Credit [Member] | ||
Commitments and Contingencies [Line Items] | ||
Line of credit, amount outstanding | 0 | $ 0 |
Line of credit, maximum borrowing capacity | 15,000,000 | |
Line of credit, remaining borrowing capacity | $ 7,335,000 | |
Line of credit, basis spread on variable rate | 2.00% | |
Line of credit facility, interest rate at period end | 3.80% | |
Line of credit, expiration date | Aug. 12, 2021 | |
Long-Term Compensation Plan [Member] | ||
Commitments and Contingencies [Line Items] | ||
Award payouts, stock | 0 | 0 |
Award payouts, cash | $ 0 | $ 0 |
Plans 2017 to 2019 and 2018 to 2020 [Member] | ||
Commitments and Contingencies [Line Items] | ||
Percentage paid out in stock | 50.00% | |
Percentage paid out in cash | 50.00% | |
Plans 2019 to 2021 [Member] | ||
Commitments and Contingencies [Line Items] | ||
Percentage paid out in stock | 75.00% | |
Percentage paid out in cash | 25.00% | |
Minimum [Member] | Line of Credit [Member] | ||
Commitments and Contingencies [Line Items] | ||
Line of credit, covenant, liquidity requirement | $ 10,000,000 |
Stock Compensation (Narrative)
Stock Compensation (Narrative) (Details) - USD ($) | 1 Months Ended | 12 Months Ended | 108 Months Ended | |||
Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2017 | May 19, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of options outstanding | 1,130,472 | 1,380,492 | 1,130,472 | 1,172,659 | ||
Unrecognized compensation expense related to stock options | $ 61,000 | $ 61,000 | ||||
Aggregate intrinsic value of options outstanding | 1,178,000 | $ 1,178,000 | ||||
Intrinsic value of all options exercised | 380,000 | $ 0 | ||||
Share based compensation expense before income taxes | 413,000 | 191,000 | ||||
Share based compensation expense after income taxes | 326,000 | 151,000 | ||||
Excess tax benefits from exercise of stock options | $ 0 | $ 0 | ||||
Shares of ESOP allocated to accounts of eligible employees | 786,026 | 786,026 | ||||
2011 Executive Incentive Compensation Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of awards authorized | 2,500,000 | |||||
Number of options granted | 100,769 | |||||
Award expiration period | 7 years | |||||
Shares issued under Plan | 365,080 | 365,080 | ||||
Number of options outstanding | 1,433,699 | 1,433,699 | ||||
Awards eligible for grant | 701,221 | 701,221 | ||||
2011 Executive Incentive Compensation Plan [Member] | Share-based Payment Arrangement, Tranche One [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting percentage | 25.00% | |||||
ESOP [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period | 6 years | |||||
Initial award vesting period | 2 years | |||||
Requisite service period | 1 year | |||||
ESOP [Member] | Share-based Payment Arrangement, Tranche One [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting percentage | 20.00% | |||||
2019 ESOP [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
ESOP contributions | $ 407,584 | |||||
2019 ESOP [Member] | Subsequent Event [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Issuance of common stock to Employee Stock Ownership Plan, Shares | 66,059 | |||||
2018 ESOP [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
ESOP contributions | $ 256,462 | |||||
Issuance of common stock to Employee Stock Ownership Plan, Shares | 126,336 | |||||
Stock Option Plan For Directors [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of options outstanding | 18,000 | 18,000 | ||||
Non-Employee Directors [Member] | Stock Option Plan For Directors [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of options granted | 0 | |||||
Award expiration period | 10 years | |||||
Number of shares automatically granted to each non-employee director | 3,000 | |||||
Employee Stock Option [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Recognition period for unrecognized compensation expense | 1 year 10 months 24 days | |||||
Performance Units [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unrecognized compensation expense for awards | $ 266,000 | $ 266,000 | ||||
Recognition period for unrecognized compensation expense | 2 years | |||||
Employee Stock Purchase Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Percentage of price of common stock at which employees are able to acquire | 85.00% | |||||
Awards eligible for grant | 89,122 | 89,122 | ||||
Restricted Stock Units (RSUs) [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unrecognized compensation expense for awards | $ 0 | $ 0 | ||||
2019 to 2020 [Member] | Performance Units [Member] | 2011 Executive Incentive Compensation Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Deferred stock awards granted | 157,907 |
Stock Compensation (Schedule of
Stock Compensation (Schedule of Changes in Number of Outstanding Stock Options Under Director Plan, Stock Plan and 2011 Incentive Plan) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Stock Compensation [Abstract] | |||
Options, Outstanding - December 31, | 1,380,492 | 1,172,659 | |
Options, Awarded | 100,769 | 278,665 | |
Options, Exercised | (151,950) | ||
Options, Forfeited | (198,839) | (70,832) | |
Options, Outstanding - December 31, | 1,130,472 | 1,380,492 | 1,172,659 |
Options, Exercisable at December 31, 2019 | 871,430 | ||
Options, Expected to vest December 31, 2019 | 1,130,472 | ||
Weighted average exercise price per share, Outstanding - December 31, | $ 7.56 | $ 8.63 | |
Weighted average exercise price per share, Awarded | 2.69 | 3.43 | |
Weighted average exercise price per share, Exercised | 4.08 | ||
Weighted average exercise price per share, Forfeited | 9.33 | 8.56 | |
Weighted average exercise price per share, Outstanding - December 31, | 7.28 | $ 7.56 | $ 8.63 |
Weighted average exercise price per share, Exercisable at December 31, 2019 | 8.33 | ||
Weighted average exercise price per share, Expected to vest December 31, 2019 | $ 7.28 | ||
Options, Outstanding - Weighted average remaining contractual term in years | 3 years 5 months 23 days | 4 years 2 months 5 days | 4 years 6 months 18 days |
Options, Exercisable - Weighted average remaining contractual term in years | 2 years 11 months 16 days | ||
Options, Expected to vest - Weighted average remaining contractual term in years | 3 years 5 months 23 days |
Stock Compensation (Valuation A
Stock Compensation (Valuation Assumptions Of Stock Option Plan) (Details) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Stock Compensation [Abstract] | ||
Expected volatility | 31.30% | 28.60% |
Risk free interest rate | 2.20% | 2.70% |
Expected holding period | 6 years | 6 years |
Dividend yield | 3.00% | 4.10% |
Stock Compensation (Summary Of
Stock Compensation (Summary Of The Status Of Stock Options Outstanding) (Details) | 12 Months Ended |
Dec. 31, 2019$ / sharesshares | |
$2.54 to $5.24 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, lower limit | $ 2.54 |
Range of Exercise Prices, upper limit | $ 5.24 |
Shares | shares | 449,989 |
Weighted Average Remaining Option Life | 5 years 2 months 12 days |
Weighted Average Exercise Price | $ 3.57 |
$5.25 to $7.49 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, lower limit | 5.25 |
Range of Exercise Prices, upper limit | $ 7.49 |
Shares | shares | 256,433 |
Weighted Average Remaining Option Life | 3 years 3 months 18 days |
Weighted Average Exercise Price | $ 6.58 |
$7.50 to $9.74 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, lower limit | 7.50 |
Range of Exercise Prices, upper limit | $ 9.74 |
Shares | shares | 0 |
Weighted Average Remaining Option Life | 0 years |
Weighted Average Exercise Price | $ 0 |
$9.75 to $11.99 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, lower limit | 9.75 |
Range of Exercise Prices, upper limit | $ 11.99 |
Shares | shares | 347,863 |
Weighted Average Remaining Option Life | 1 year 9 months 18 days |
Weighted Average Exercise Price | $ 11.35 |
$12.00 to $14.15 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, lower limit | 12 |
Range of Exercise Prices, upper limit | $ 14.15 |
Shares | shares | 76,187 |
Weighted Average Remaining Option Life | 1 year 2 months 12 days |
Weighted Average Exercise Price | $ 12.97 |
Stock Compensation (Schedule _2
Stock Compensation (Schedule of Changes in the Number of Deferred Stock Shares Under the Incentive Plan) (Details) - Performance Units [Member] - $ / shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares, Outstanding - December 31, | 270,066 | 190,524 |
Shares, Granted | 161,107 | 163,002 |
Shares, Vested | (4,575) | (29,708) |
Shares, Forfeited | (105,371) | (53,752) |
Shares, Outstanding - December 31, | 321,227 | 270,066 |
Weighted Average Grant Date Fair Value, Outstanding - December 31, | $ 4.48 | $ 6.60 |
Weighted Average Grant Date Fair Value, Granted | 2.76 | 3.56 |
Weighted Average Grant Date Fair Value, Vested | 4.56 | 10.51 |
Weighted Average Grant Date Fair Value, Forfeited | 3.90 | 5.31 |
Weighted Average Grant Date Fair Value, Outstanding - December 31, | $ 3.37 | $ 4.48 |
Stock Compensation (Schedule _3
Stock Compensation (Schedule of Changes in Restricted Stock Units Outstanding) (Details) - Restricted Stock Units (RSUs) [Member] | 12 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares, Outstanding - December 31, | shares | 13,793 |
Shares, Vested | shares | (13,793) |
Weighted Average Grant Date Fair Value, Outstanding - December 31, | $ / shares | $ 6.33 |
Weighted Average Grant Date Fair Value, Vested | $ / shares | $ 6.33 |
Common Stock (Narrative) (Detai
Common Stock (Narrative) (Details) - USD ($) | Dec. 31, 2019 | Aug. 31, 2019 |
Common Stock [Abstract] | ||
Amount authorized to be repurchased | $ 2,000,000 | |
Remaining amount authorized to be repurchased | $ 625,583 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Taxes [Line Items] | ||||
Uncertain tax benefit positions that would reduce the effective income tax rate if recognized | $ 101,000 | |||
Uncertain tax positions | $ 101,000 | $ 60,000 | $ 41,000 | |
Cumulative loss, period used to evaluate negative objective evidence | 3 years | |||
Valuation allowance | $ 8,170,000 | |||
Expiration of statute of limitations | 9,000 | |||
Accrual for interest and penalties | 0 | |||
Net increase (decrease) in accrued interest and penalties | 0 | |||
Scenario, Forecast [Member] | ||||
Income Taxes [Line Items] | ||||
Expiration of statute of limitations | $ 1,000 | |||
Domestic Tax Authority [Member] | ||||
Income Taxes [Line Items] | ||||
Net operating loss carryforwards | 7,687,000 | $ 1,930,000 | ||
Income tax benefit related to research and development credits | 1,554,000 | |||
Tax credit carryforward related to research and development | $ 467,000 | |||
Operating loss carryforward expiration date | Dec. 31, 2035 | Dec. 31, 2023 | ||
State and Local Jurisdiction [Member] | ||||
Income Taxes [Line Items] | ||||
Income tax benefit related to research and development credits | $ 1,024,000 | |||
Tax credit carryforward related to research and development | 594,000 | |||
Austin Taylor Communications, Ltd. [Member] | ||||
Income Taxes [Line Items] | ||||
Pretax income (losses) | 0 | $ 0 | ||
Net operating loss carryforwards | 7,462,000 | |||
Net2Edge [Member] | ||||
Income Taxes [Line Items] | ||||
Pretax income (losses) | (1,519,000) | (2,772,000) | ||
Net operating loss carryforwards | 8,745,000 | |||
Transition Networks China [Member] | ||||
Income Taxes [Line Items] | ||||
Pretax income (losses) | 0 | 0 | ||
Net operating loss carryforwards | 29,000 | |||
Suttle Costa Rica, S.A. [Member] | ||||
Income Taxes [Line Items] | ||||
Pretax income (losses) | $ 45,000 | |||
Net operating loss carryforwards | $ 0 |
Income Taxes (Income Tax (Benef
Income Taxes (Income Tax (Benefit) Expense By Jurisdiction) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Current year income taxes (benefit): | ||
Federal | $ (45,000) | $ 3,000 |
State | 20,000 | 133,000 |
Foreign | 249,000 | |
Current year income taxes (benefit) | (25,000) | 385,000 |
Deferred income taxes: | ||
Federal | 10,000 | 19,000 |
Deferred income taxes (benefit) | 9,534 | 19,068 |
Income tax (benefit) expense | $ (15,269) | $ 404,386 |
Income Taxes (Reconciliation Of
Income Taxes (Reconciliation Of Effective Tax Rate, By Percentage) (Details) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Taxes [Abstract] | ||
Tax at U.S. statutory rate | 21.00% | 21.00% |
State income taxes, net of federal benefit | 26.20% | (0.40%) |
Foreign income taxes, net of foreign tax credits | 98.90% | (6.20%) |
Other nondeductible items | (2.10%) | (0.60%) |
Effect of increase in uncertain tax positions | 17.20% | (0.40%) |
Change in valuation allowance | (181.70%) | (20.60%) |
Expense of prior year tax receivable | (5.50%) | |
Other | 14.00% | 3.80% |
Effective tax rate | (6.50%) | (8.90%) |
Income Taxes (Schedule Of Defer
Income Taxes (Schedule Of Deferred Tax Assets And Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Income Taxes [Abstract] | ||
Allowance for doubtful accounts | $ 29 | $ 25 |
Inventory | 1,254 | 1,718 |
Accrued and prepaid expenses | 302 | 348 |
Lease liability | 44 | |
Domestic net operating loss carry-forward | 2,141 | 3,425 |
Long-term compensation plans | 248 | 233 |
Nonemployee director stock compensation | 514 | 499 |
Other stock compensation | 51 | 19 |
Intangible assets | 253 | 275 |
Foreign net operating loss carry-forwards and credits | 3,087 | 2,885 |
Federal and state credits | 767 | 845 |
Other | 17 | 17 |
Gross deferred tax assets | 8,707 | 10,289 |
Valuation allowance | (8,170) | (9,834) |
Net deferred tax assets | 537 | 455 |
Depreciation | (485) | (436) |
Lease right-of-use asset | (42) | |
Net deferred tax liability | (527) | (436) |
Total net deferred tax asset | $ 10 | $ 19 |
Income Taxes (Schedule Of Unrec
Income Taxes (Schedule Of Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Taxes [Abstract] | ||
Unrecognized tax benefits - January 1 | $ 60 | $ 41 |
Gross increases - current period tax positions | 41 | 28 |
Expiration of statute of limitations | (9) | |
Uncertain tax positions - December 31, | $ 101 | $ 60 |
Information Concerning Indust_3
Information Concerning Industry Segments and Major Customers (Narrative) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019USD ($)customer | Dec. 31, 2018USD ($)customer | |
Sales [Member] | Suttle [Member] | ||
Segment Reporting Information [Line Items] | ||
Number of customers | 2 | |
Sales [Member] | Transition Networks [Member] | ||
Segment Reporting Information [Line Items] | ||
Number of customers | 2 | 2 |
Accounts Receivable [Member] | JDL Technologies [Member] | ||
Segment Reporting Information [Line Items] | ||
Concentration risk percentage | 21.00% | |
Number of customers | 1 | |
Accounts Receivable [Member] | Transition Networks [Member] | ||
Segment Reporting Information [Line Items] | ||
Number of customers | 2 | 2 |
Foreign Countries [Member] | Suttle [Member] | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets | $ | $ 112 | $ 159 |
United States [Member] | Sales [Member] | ||
Segment Reporting Information [Line Items] | ||
Concentration risk percentage | 74.00% | 77.00% |
Customer 1 [Member] | Sales [Member] | Transition Networks [Member] | ||
Segment Reporting Information [Line Items] | ||
Concentration risk percentage | 21.20% | 17.60% |
Customer 1 [Member] | Accounts Receivable [Member] | Transition Networks [Member] | ||
Segment Reporting Information [Line Items] | ||
Concentration risk percentage | 45.00% | 23.00% |
Customer 2 [Member] | Sales [Member] | Transition Networks [Member] | ||
Segment Reporting Information [Line Items] | ||
Concentration risk percentage | 16.20% | 15.40% |
Customer 2 [Member] | Accounts Receivable [Member] | Transition Networks [Member] | ||
Segment Reporting Information [Line Items] | ||
Concentration risk percentage | 17.00% | 19.00% |
Information Concerning Indust_4
Information Concerning Industry Segments and Major Customers (Schedule of Segment Information) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | ||||||||||
Sales | $ 15,364,000 | $ 13,622,000 | $ 10,704,000 | $ 11,216,000 | $ 13,121,000 | $ 10,283,000 | $ 9,165,000 | $ 9,800,000 | $ 50,906,179 | $ 42,369,232 |
Cost of sales | 28,720,367 | 24,747,115 | ||||||||
Gross profit | 22,185,812 | 17,622,117 | ||||||||
Selling, general and administrative expenses | 22,176,598 | 22,372,765 | ||||||||
Operating income (loss) from continuing operations | 1,187,000 | $ 772,000 | $ (1,129,000) | $ (821,000) | 220,000 | $ (1,251,000) | $ (1,804,000) | $ (1,916,000) | 9,214 | (4,750,648) |
Other income (expense) | 226,136 | 224,029 | ||||||||
Operating income (loss) from continuing operations before income taxes | 235,350 | (4,526,619) | ||||||||
Depreciation and amortization | 1,032,797 | 1,261,235 | ||||||||
Capital expenditures | 425,000 | 694,000 | ||||||||
Assets | 59,150,712 | 53,321,164 | 59,150,712 | 53,321,164 | ||||||
Intersegment Eliminations [Member] | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Sales | (1,025,000) | (935,000) | ||||||||
Cost of sales | (168,000) | (73,000) | ||||||||
Gross profit | (857,000) | (862,000) | ||||||||
Selling, general and administrative expenses | (857,000) | (862,000) | ||||||||
Assets | (27,000) | (27,000) | (27,000) | (27,000) | ||||||
Transition Networks [Member] | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Sales | 44,860,000 | 36,470,000 | ||||||||
Cost of sales | 24,258,000 | 19,775,000 | ||||||||
Gross profit | 20,602,000 | 16,695,000 | ||||||||
Selling, general and administrative expenses | 15,036,000 | 13,716,000 | ||||||||
Operating income (loss) from continuing operations | 5,566,000 | 2,979,000 | ||||||||
Other income (expense) | (15,000) | (31,000) | ||||||||
Operating income (loss) from continuing operations before income taxes | 5,551,000 | 2,948,000 | ||||||||
Depreciation and amortization | 286,000 | 420,000 | ||||||||
Capital expenditures | 62,000 | 81,000 | ||||||||
Assets | 16,682,000 | 19,228,000 | 16,682,000 | 19,228,000 | ||||||
JDL Technologies [Member] | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Sales | 4,741,000 | 5,134,000 | ||||||||
Cost of sales | 3,259,000 | 3,830,000 | ||||||||
Gross profit | 1,482,000 | 1,304,000 | ||||||||
Selling, general and administrative expenses | 1,485,000 | 1,603,000 | ||||||||
Operating income (loss) from continuing operations | (3,000) | (299,000) | ||||||||
Other income (expense) | (10,000) | 3,000 | ||||||||
Operating income (loss) from continuing operations before income taxes | (13,000) | (296,000) | ||||||||
Depreciation and amortization | 92,000 | 179,000 | ||||||||
Capital expenditures | 69,000 | |||||||||
Assets | 1,694,000 | 2,572,000 | 1,694,000 | 2,572,000 | ||||||
Net2Edge [Member] | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Sales | 2,330,000 | 1,700,000 | ||||||||
Cost of sales | 1,371,000 | 1,215,000 | ||||||||
Gross profit | 959,000 | 485,000 | ||||||||
Selling, general and administrative expenses | 2,486,000 | 3,279,000 | ||||||||
Operating income (loss) from continuing operations | (1,527,000) | (2,794,000) | ||||||||
Other income (expense) | 8,000 | 22,000 | ||||||||
Operating income (loss) from continuing operations before income taxes | (1,519,000) | (2,772,000) | ||||||||
Depreciation and amortization | 74,000 | 65,000 | ||||||||
Capital expenditures | 19,000 | 127,000 | ||||||||
Assets | 3,220,000 | 1,894,000 | 3,220,000 | 1,894,000 | ||||||
Other [Member] | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Selling, general and administrative expenses | 4,027,000 | 4,637,000 | ||||||||
Operating income (loss) from continuing operations | (4,027,000) | (4,637,000) | ||||||||
Other income (expense) | 243,000 | 230,000 | ||||||||
Operating income (loss) from continuing operations before income taxes | (3,784,000) | (4,407,000) | ||||||||
Depreciation and amortization | 581,000 | 597,000 | ||||||||
Capital expenditures | 275,000 | 486,000 | ||||||||
Assets | $ 37,582,000 | $ 29,654,000 | $ 37,582,000 | $ 29,654,000 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value Measurements [Abstract] | ||
Transfers between levels | $ 0 | $ 0 |
Fair Value Measurements (Schedu
Fair Value Measurements (Schedule of Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 8,761 | |
Short-term investments | 9,450 | |
Long-term investments | 250 | |
Total | 18,461 | $ 8,428 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 8,761 | |
Total | 8,761 | 8,428 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 9,450 | |
Total | 9,450 | |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term investments | 250 | |
Total | 250 | |
Money Market Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 8,761 | 8,428 |
Money Market Funds [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 8,761 | $ 8,428 |
Commercial Paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 8,694 | |
Commercial Paper [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 8,694 | |
Corporate Notes/Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 756 | |
Corporate Notes/Bonds [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 756 | |
Convertible Debt [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term investments | 250 | |
Convertible Debt [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term investments | $ 250 |
General Commitments (Narrative)
General Commitments (Narrative) (Details) - USD ($) | Aug. 02, 2018 | Dec. 31, 2019 |
Other Commitments [Line Items] | ||
Sale of building, purchase agreement, consideration amount | $ 10,000,000 | |
Purchase agreement, buyer to complete due diligence, period | 180 days | |
Restricted cash | $ 679,006 | |
Purchase Agreement [Member] | ||
Other Commitments [Line Items] | ||
Restricted cash | $ 175,000 |
Quarterly Operating Results (De
Quarterly Operating Results (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Selected Quarterly Financial Information [Line Items] | ||||||||||
Sales | $ 15,364,000 | $ 13,622,000 | $ 10,704,000 | $ 11,216,000 | $ 13,121,000 | $ 10,283,000 | $ 9,165,000 | $ 9,800,000 | $ 50,906,179 | $ 42,369,232 |
Operating income (loss) from continuing operations | 1,187,000 | 772,000 | (1,129,000) | (821,000) | 220,000 | (1,251,000) | (1,804,000) | (1,916,000) | 9,214 | (4,750,648) |
Net (loss) income from continuing operations | 1,214,000 | 877,000 | (1,069,000) | (771,000) | (197,000) | (1,189,000) | (1,719,000) | (1,826,000) | 250,619 | (4,931,005) |
Net income from discontinued operations | 506,000 | 860,000 | 3,842,000 | 1,010,000 | (549,000) | (356,000) | (922,000) | (34,000) | 6,218,430 | (1,860,730) |
Net income (loss) | $ 1,720,000 | $ 1,737,000 | $ 2,773,000 | $ 239,000 | $ (746,000) | $ (1,545,000) | $ (2,641,000) | $ (1,860,000) | $ 6,469,049 | $ (6,791,735) |
Basic net income (loss) per share: | ||||||||||
Continuing operations | $ 0.13 | $ 0.09 | $ (0.11) | $ (0.08) | $ (0.02) | $ (0.13) | $ (0.19) | $ (0.20) | $ 0.03 | $ (0.54) |
Discontinued operations | 0.06 | 0.09 | 0.41 | 0.11 | (0.07) | (0.04) | (0.10) | 0 | 0.67 | (0.21) |
Diluted net income (loss) per share: | ||||||||||
Continuing operations | 0.13 | 0.09 | (0.11) | (0.08) | (0.02) | (0.13) | (0.19) | (0.20) | 0.03 | (0.54) |
Discontinued operations | $ 0.05 | $ 0.09 | $ 0.41 | $ 0.11 | $ (0.07) | $ (0.04) | $ (0.10) | $ 0 | $ 0.66 | $ (0.21) |
Discontinued Operations, Disposed of by Sale [Member] | Suttle FutureLink Fiber Business Line [Member] | ||||||||||
Diluted net income (loss) per share: | ||||||||||
Gain on sale of FutureLink Fiber business line | $ 2,967,000 |