Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Mar. 24, 2014 | Jun. 28, 2013 | |
Document and Entity Information: | ' | ' | ' |
Entity Registrant Name | 'EVANS & SUTHERLAND COMPUTER CORPORATION | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Amendment Flag | 'false | ' | ' |
Entity Central Index Key | '0000276283 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 11,089,199 | ' |
Entity Filer Category | 'Smaller Reporting Company | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Entity Public Float | ' | ' | $90,785 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $3,376 | $2,111 |
Restricted cash | 1,020 | 705 |
Marketable securities | 229 | 712 |
Accounts receivable, net | 5,552 | 3,972 |
Costs and estimated earnings in excess of billings on uncompleted contracts | 2,391 | 2,474 |
Inventories, net | 3,025 | 3,125 |
Prepaid expenses and deposits | 568 | 453 |
Total current assets | 16,161 | 13,552 |
Property and equipment, net | 7,405 | 7,735 |
Goodwill | 635 | 635 |
Intangible assets, net | 115 | 168 |
Other assets | 1,386 | 2,160 |
Total assets | 25,702 | 24,250 |
Current liabilities: | ' | ' |
Accounts payable | 1,433 | 1,197 |
Accrued liabilities | 1,183 | 1,274 |
Billings in excess of costs and estimated earnings on uncompleted contracts | 3,358 | 2,531 |
Customer deposits | 2,157 | 3,180 |
Current portion of retirement obligations | 531 | 517 |
Current portion of long-term debt | 2,995 | 167 |
Total current liabilities | 11,657 | 8,866 |
Pension and retirement obligations, net of current portion | 23,567 | 33,369 |
Long-term debt, net of current portion | 2,362 | 5,148 |
Deferred rent obligation | 1,514 | 1,511 |
Total liabilities | 39,100 | 48,894 |
Commitments and contingencies (Notes 5, 6, 7 and 9) | ' | ' |
Stockholders' deficit: | ' | ' |
Preferred stock, no par value: 10,000,000 shares authorized; no shares outstanding | ' | ' |
Common stock, $0.20 par value: 30,000,000 shares authorized; 11,441,666 shares issued | 2,288 | 2,288 |
Additional paid-in-capital | 54,484 | 54,466 |
Common stock in treasury, at cost, 352,467 shares | -4,709 | -4,709 |
Accumulated deficit | -47,852 | -49,025 |
Accumulated other comprehensive loss | -17,609 | -27,664 |
Total stockholders' deficit | -13,398 | -24,644 |
Total liabilities and stockholders' deficit | $25,702 | $24,250 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of financial position | ' | ' |
Preferred Stock, par value | $0 | $0 |
Preferred Stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred Stock, shares outstanding | 0 | 0 |
Common Stock, par value | $0.20 | $0.20 |
Common Stock, shares authorized | 30,000,000 | 30,000,000 |
Common Stock, shares issued | 11,441,666 | 11,441,666 |
Common stock in treasury, shares | 352,467 | 352,467 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income | ' | ' |
Sales | $29,583 | $24,908 |
Cost of sales | 18,212 | 16,002 |
Gross profit | 11,371 | 8,906 |
Operating expenses: | ' | ' |
Selling, general and administrative | 6,024 | 5,765 |
Research and development | 2,382 | 2,595 |
Pension | 965 | 2,115 |
Total operating expenses | 9,371 | 10,475 |
Operating income (loss) | 2,000 | -1,569 |
Interest expense | -729 | -712 |
Other expense, net | -1 | -67 |
Income (loss) before income tax (provision) benefit | 1,270 | -2,348 |
Income tax (provision) benefit | -97 | 69 |
Net income (loss) | 1,173 | -2,279 |
Net income (loss) per common share - basic and diluted | $0.11 | ($0.21) |
Weighted average common shares outstanding - basic | 11,089 | 11,089 |
Weighted average common shares outstanding - diluted | 11,128 | 11,089 |
Comprehensive income (loss), net of tax | ' | ' |
Net income (loss) | 1,173 | -2,279 |
Other comprehensive income (loss): | ' | ' |
Reclassification of realized gains from sale of marketable securities to net income (loss) | -27 | -7 |
Unrealized gain on marketable securities | 20 | 194 |
Reclassification of pension expense to net income (loss) | 728 | ' |
Decrease (increase) to minimum pension liability | 9,334 | -720 |
Other comprehensive income (loss) | 10,055 | -533 |
Total comprehensive income (loss) | $11,228 | ($2,812) |
CONSOLIDATED_STATEMENTS_OF_STO
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT (USD $) | Common Stock | Additional Paid-in Capital | Treasury Stock | Accumulated Deficit | Accumulated Other Comprehensive Loss | Total |
In Thousands | ||||||
Equity Balance, beginning of period, Value at Dec. 31, 2011 | $2,288 | $54,433 | ($4,709) | ($46,746) | ($27,131) | ($21,865) |
Equity Balance, beginning of period, Shares at Dec. 31, 2011 | 11,442 | ' | ' | ' | ' | ' |
Net income (loss) | ' | ' | ' | -2,279 | ' | -2,279 |
Other comprehensive income (loss) | ' | ' | ' | ' | -533 | -533 |
Stock-based compensation | ' | 33 | ' | ' | ' | 33 |
Equity Balance, end of period, Value at Dec. 31, 2012 | 2,288 | 54,466 | -4,709 | -49,025 | -27,664 | -24,644 |
Equity Balance, end of period, Shares at Dec. 31, 2012 | 11,442 | ' | ' | ' | ' | ' |
Net income (loss) | ' | ' | ' | 1,173 | ' | 1,173 |
Other comprehensive income (loss) | ' | ' | ' | ' | 10,055 | 10,055 |
Stock-based compensation | ' | 18 | ' | ' | ' | 18 |
Equity Balance, end of period, Value at Dec. 31, 2013 | $2,288 | $54,484 | ($4,709) | ($47,852) | ($17,609) | ($13,398) |
Equity Balance, end of period, Shares at Dec. 31, 2013 | 11,442 | ' | ' | ' | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities: | ' | ' |
Net income (loss) | $1,173 | ($2,279) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ' | ' |
Depreciation and amortization | 581 | 744 |
Amortization of deferred pension costs | 728 | ' |
Provision for excess and obsolete inventory | 349 | 409 |
Other | 313 | 221 |
Changes in assets and liabilities: | ' | ' |
Decrease (increase) in restricted cash | -315 | 357 |
Decrease (increase) in accounts receivable | -1,692 | 56 |
Decrease (increase) in inventories | -249 | 90 |
Decrease (increase) in costs and estimated earnings in excess of billings on uncompleted contracts, net | 910 | -1,925 |
Decrease (increase) in prepaid expenses and other assets | 659 | -65 |
Increase (decrease) in accounts payable | 236 | -293 |
Decrease in accrued liabilities | -88 | -444 |
Increase (decrease) in accrued pension and retirement liabilities | -455 | 93 |
Increase (decrease) in customer deposits | -1,023 | 346 |
Net cash provided by (used in) operating activities | 1,127 | -2,690 |
Cash flows from investing activities: | ' | ' |
Purchases of property and equipment | -198 | -122 |
Proceeds from sale of marketable securities | 503 | 1,148 |
Net cash provided by investing activities | 305 | 1,026 |
Cash flows from financing activities: | ' | ' |
Principal payments on long-term debt | -167 | -157 |
Net cash used in financing activities | -167 | -157 |
Net increase (decrease) in cash and cash equivalents | 1,265 | -1,821 |
Cash and cash equivalents as of beginning of the year | 2,111 | 3,932 |
Cash and cash equivalents as of end of the year | 3,376 | 2,111 |
Non-cash investing and financing activities | ' | ' |
Reclassification of realized gains from sale of marketable securities to net income (loss) | -27 | -7 |
Unrealized gain on marketable securities | 20 | 194 |
Decrease (increase) to minimum pension liability | 9,334 | -720 |
Supplemental disclosure of cash flow information | ' | ' |
Cash paid for interest | 539 | 538 |
Cash paid for income taxes | $9 | $42 |
Note_1_Nature_of_Operations_an
Note 1 - Nature of Operations and Summary of Significant Accounting Policies | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Notes | ' | |||
Note 1 - Nature of Operations and Summary of Significant Accounting Policies | ' | |||
Note 1 - Nature of Operations and Summary of Significant Accounting Policies | ||||
Nature of Operations | ||||
Evans & Sutherland Computer Corporation, referred to in these notes as “Evans & Sutherland,” “E&S,” or the “Company,” produces high-quality advanced visual display systems used primarily in full-dome video projection applications, dome projection screens and dome architectural treatments. E&S also produces unique content for planetariums, schools, science centers and other educational institutions and entertainment venues. The Company’s products include state of the art planetarium and dome theater systems consisting of proprietary hardware and software, and other unique visual display systems primarily used to project digital video on large curved surfaces. Additionally, E&S manufactures and installs metal domes with customized optical coatings and acoustical properties that are used for planetarium and dome theaters as well as many other unique custom applications. The Company operates in one business segment, which is the visual simulation market. | ||||
Basis of Presentation | ||||
The consolidated financial statements include the accounts of Evans & Sutherland and its wholly owned subsidiaries. All inter-company accounts and transactions have been eliminated in consolidation. | ||||
Use of Estimates | ||||
The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. The accounting estimates that require management’s most difficult and subjective judgments include revenue recognition based on the percentage-of-completion method, inventory reserves, allowance for doubtful accounts receivable, income tax valuation allowance, impairment of long-lived assets, pension and retirement obligations and useful lives of depreciable assets. Actual results could differ from those estimates. | ||||
Cash and Cash Equivalents | ||||
The Company considers all highly liquid investments with original maturities of three or fewer months to be cash equivalents. The Company maintains cash balances in bank accounts that, at times, exceed federally insured limits. The Company has not experienced any losses in these accounts and believes it is not exposed to any significant risk with respect to cash. As of December 31, 2013, cash deposits per bank statements, including restricted cash, exceeded the federally insured limits by approximately $4,137. | ||||
Restricted Cash | ||||
Restricted cash that guarantees issued letters of credit that mature or expire within one year is reported as a current asset. Restricted cash that guarantees issued letters of credit that mature or expire in more than one year are reported as a long-term other asset. There was $90 and $442 of restricted cash included in other assets as of December 31, 2013 and 2012, respectively. | ||||
Marketable Securities | ||||
The Company classifies its marketable debt and equity securities as available-for-sale. Available-for-sale securities are recorded at fair value. Unrealized holding gains and losses, net of the related tax effect, are excluded from earnings and are reported as a component of accumulated other comprehensive income (loss) until realized. Dividend and interest income are recognized when earned. Realized gains and losses from the sale of securities are included in results of operations and are determined on the specific identification basis. A decline in the market value that is deemed other-than-temporary results in a charge to other income (expense) and the establishment of a new cost basis for the investment. | ||||
Trade Accounts Receivable | ||||
In the normal course of business, E&S provides unsecured credit terms to its customers. Accordingly, the Company maintains an allowance for doubtful accounts for possible losses on uncollectible accounts receivable. The Company routinely analyzes accounts receivable and costs and estimated earnings in excess of billings, and considers history, customer creditworthiness, facts and circumstances specific to outstanding balances, current economic trends, and changes in payment terms when evaluating the adequacy of the allowance for doubtful accounts receivable. Changes in these factors could result in material differences to bad debt expense. Past due balances are determined based on contractual terms and are reviewed individually for collectability. Uncollectible accounts receivable are charged against the allowance for doubtful accounts when the probability of collection is remote. | ||||
The table below represents changes in E&S’s allowance for doubtful accounts receivable for the years ended December 31: | ||||
2013 | 2012 | |||
Beginning balance | $324 | $470 | ||
Write-off of accounts receivable | -159 | -89 | ||
Increase (reduction) in estimated losses on accounts receivable | 112 | -57 | ||
Ending balance | $277 | $324 | ||
Inventories | ||||
Inventories include materials at standard costs, which approximate actual costs, as well as inventoried costs on programs and long-term contracts. Inventoried costs include material, direct engineering and production costs, and applicable overhead, not in excess of estimated realizable value. Spare parts and general stock materials are stated at cost not in excess of realizable value. E&S periodically reviews inventories for excess supply, obsolescence, and valuations above estimated realizable amounts, and provides a reserve sufficient to cover these items. Revisions of these estimates could impact net income (loss). | ||||
During the years ended December 31, 2013 and 2012, E&S recognized losses on inventory impairment of $349 and $409 for obsolete and excess quantities of inventory, primarily related to the Evans & Sutherland Laser Projector. | ||||
Inventories as of December 31, were as follows: | ||||
2013 | 2012 | |||
Raw materials | $5,587 | $5,255 | ||
Work-in-process | 234 | 287 | ||
Finished goods | 223 | 253 | ||
Reserve for obsolete inventory | -3,019 | -2,670 | ||
Total inventories, net | $3,025 | $3,125 | ||
Property and Equipment | ||||
Property and equipment are stated at cost. Depreciation and amortization are computed using the straight-line method based on the estimated useful lives of the related assets. Expenditures that materially increase values or capacities or extend useful lives of property and equipment are capitalized. Leasehold improvements are assigned useful lives based on the shorter of their useful lives or the term of the related leases, including renewal options likely to be exercised. Routine maintenance, repairs and renewal costs are expensed as incurred. When property is retired or otherwise disposed of, the carrying values are removed from the property and equipment and the related accumulated depreciation and amortization accounts. Depreciation and amortization are included in cost of sales, research and development or selling, general and administrative expenses depending on the nature of the asset. | ||||
Depreciation and amortization expense was $528 and $688 for the years ended December 31, 2013 and 2012, respectively. | ||||
The cost and estimated useful lives of property and equipment and the total accumulated depreciation and amortization were as follows as of December 31: | ||||
Estimated | ||||
useful lives | 2013 | 2012 | ||
Land | n/a | $2,250 | $2,250 | |
Buildings and improvements | 5 - 40 years | 9,712 | 9,717 | |
Manufacturing machinery and equipment | 3 - 8 years | 5,382 | 5,613 | |
Office furniture and equipment | 3 - 8 years | 779 | 779 | |
Total | 18,123 | 18,359 | ||
Less accumulated depreciation and amortization | -10,718 | -10,624 | ||
Net property and equipment | $7,405 | $7,735 | ||
Goodwill | ||||
The Company tests its recorded goodwill for impairment on an annual basis during the fourth quarter, or more often if indicators of potential impairment exist, by determining if the carrying value of each reporting unit exceeds its estimated fair value. Factors that could trigger impairment include, but are not limited to, underperformance relative to historical or projected future operating results, significant changes in the manner of use of the acquired assets or the Company’s overall business and significant negative industry or economic trends. Future impairment reviews may require write-downs in the Company’s goodwill and could have a material adverse impact on the Company’s operating results for the periods in which such write-downs occur. | ||||
Intangible Assets | ||||
E&S amortizes the cost of intangible assets over their estimated useful lives. Amortizable intangible assets are reviewed at least annually to determine whether events and circumstances warrant a revision to the remaining period of amortization. | ||||
Software Development Costs | ||||
Software development costs, if material, are capitalized from the date technological feasibility is achieved until the product is available for general release to customers. Such costs were not been material during the years presented. | ||||
Impairment of Long-Lived Assets | ||||
Long-lived assets are reviewed for impairment when events or changes in circumstances indicate the carrying values of the assets may not be fully recoverable. When this occurs, the Company reviews the values assigned to long-lived assets by analyzing the anticipated, undiscounted cash flows they generate. When the expected future undiscounted cash flows from these assets do not exceed their carrying values, the Company determines the estimated fair values of such assets. Impairment is recognized to the extent the carrying values of the assets exceed their estimated fair values. Assets held for sale are reported at the lower of their carrying values or fair values less costs to sell. | ||||
Warranty Reserve | ||||
E&S provides a warranty reserve for estimated future costs of servicing products under warranty agreements extending for periods from 90 days to one year. Anticipated costs for product warranties are based upon estimates derived from experience factors and are recorded at the time of sale or over the period revenues are recognized for long-term contracts. Warranty reserves are classified as accrued liabilities in the accompanying consolidated balance sheets. | ||||
The table below represents changes in E&S’s warranty reserve for the years ended December 31: | ||||
2013 | 2012 | |||
Beginning balance | $145 | $183 | ||
Change in warranty reserve | 111 | 69 | ||
Warranty costs | -106 | -107 | ||
Ending balance | $150 | $145 | ||
Revenue Recognition | ||||
Sales include revenues from system hardware, software, database products and service contracts. The following table provides information on revenues by recognition method applied during the years: | ||||
2013 | 2012 | |||
Percentage of completion | $14,831 | $14,956 | ||
Completed contract | 13,102 | 8,429 | ||
Other | 1,650 | 1,523 | ||
Total sales | $29,583 | $24,908 | ||
The following methods are used to record revenue: | ||||
Percentage of Completion. In arrangements that are longer in term and require significant production, modification or customization, revenue is recognized using the percentage-of-completion method. In applying this method, the Company utilizes the cost-to-cost methodology whereby it estimates the percent complete by calculating the ratio of costs incurred (consisting of material, labor and subcontracting costs, as well as an allocation of indirect costs) to its estimate of total anticipated costs. This ratio is then utilized to determine the amount of gross profit earned based on its estimate of total gross profit at completion. The Company routinely reviews estimates related to percentage-of-completion contracts and adjusts for changes in the period the revisions are made. Billings on uncompleted percentage-of-completion contracts may be greater than or less than incurred costs and estimated earnings and are recorded as an asset or liability in the accompanying consolidated balance sheets. | ||||
Completed Contract. Contract arrangements which typically require a relatively short period of time to complete the production, modification, and customization of products are accounted for using the completed contract method. Accordingly, revenue is recognized upon delivery of the completed product, provided persuasive evidence of an arrangement exists, title and risk of loss have transferred, the fee is fixed or determinable, and collection is reasonably assured. | ||||
Multiple Element Arrangements. Some contracts include multiple elements. Significant deliverables in such arrangements commonly include various hardware components of visual display systems, domes, show content and various service and maintenance elements. Revenue earned on elements such as products, services and maintenance contracts are allocated to each element based on the relative fair values of the elements. Relative fair values of elements are generally determined based on actual and estimated selling price. Delivery times of such contracts typically occur within a three to six-month time period. | ||||
Other. Other revenue consists primarily of amounts earned under maintenance contracts that are generally sold as a single element to customers. Revenue from product maintenance contracts, including separately priced extended warranty contracts, is deferred and recognized over the period of performance under the contract. | ||||
Anticipated Losses. For contracts with anticipated losses at completion, a provision is recorded when the loss is probable. After an anticipated loss is recorded, subsequent revenue and cost of sales are recognized in equal, offsetting amounts as contract costs are incurred. | ||||
Net Income (Loss) per Common Share | ||||
Net income (loss) per common share is computed based on the weighted-average number of common shares and, as appropriate, dilutive common stock equivalents outstanding during the year. Stock options are common stock equivalents. | ||||
Basic income or loss per common share is based upon the average number of shares of common stock outstanding during the year. Potentially dilutive securities from stock options are discussed in Note 10. | ||||
Income Taxes | ||||
The Company uses the asset and liability method of accounting for income taxes. Under the asset and liability method, deferred income tax assets and liabilities are recognized for the future income tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective income tax bases and operating loss and income tax credit carry-forwards. Deferred income tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred income tax assets and liabilities of a change in income tax rates is recognized in the period that includes the enactment date. | ||||
Other Comprehensive Loss | ||||
On a net basis for 2013 and 2012, there were deferred income tax assets resulting from items reflected in comprehensive loss. However, E&S has determined that it is more likely than not that it will not realize such net deferred income tax assets and has therefore established a valuation allowance against the full amount of the net deferred income tax assets. Accordingly, the net income tax effect of the items included in other comprehensive income (loss) is zero. Therefore, the Company has included no income tax expense or benefit in relation to items reflected in other comprehensive income (loss). | ||||
The components of accumulated other comprehensive loss were as follows as of December 31: | ||||
2013 | 2012 | |||
Additional minimum pension liability | ($17,608) | ($27,669) | ||
Net unrealized holding gains (losses) on marketable securities | -1 | 5 | ||
Total accumulated other comprehensive loss | ($17,609) | ($27,664) | ||
Leases | ||||
The Company recognizes scheduled rent increases on a straight-line basis over the lease term, which may include optional lease renewal terms. Deferred rent income and expense are recognized to reflect the difference between the rent paid or received in the current period and the calculated straight-line amount. | ||||
Reclassifications | ||||
Certain amounts in the prior year’s consolidated financial statements have been reclassified to conform to the current year’s presentation. | ||||
Recent Accounting Pronouncements | ||||
In February 2013, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) No. 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. ASU No. 2013-02 sets requirements for presentation for significant items reclassified out of accumulated other comprehensive loss to net income in reporting periods presented. ASU 2013-02 was effective prospectively beginning with the quarter ended March 31, 2013. The adoption of this guidance did not have an impact on our financial condition or results of operations but required changes in the presentation of the financial statements. | ||||
Liquidity | ||||
. | ||||
Recurring losses prior to 2013 have been accompanied by negative cash flows from operating activities. Furthermore, as of December 31, 2013, the unfunded obligation of the Pension Plan, as measured for accounting purposes, amounts to $19,018 (see Note 6) contributing to a total stockholders’ deficit of $13,398 as of December 31, 2013. Aided by prior cost reduction efforts and improved 2013 sales volume the Company reported net income for 2013. The Company does not believe it can sustain and improve annual profitability at sufficient levels to fund its existing Pension Plan obligation. In order to preserve the liquid resources required to operate the business, the Company stopped making cash payments due to the Pension Plan trust beginning in October 2012. As described more fully in Note 6, the Company initiated an application process for the distress termination of the Pension Plan in accordance with provisions of the Employee Retirement Income Security Act of 1974 (“ERISA”) which it believes will result in a settlement of its Pension Plan liabilities on terms that are feasible for the Company to continue in business as a going concern through 2014 and beyond. However, as of the date of this filing, the Company is uncertain of the timing or the ultimate outcome. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. |
Note_2_Marketable_Securities
Note 2 - Marketable Securities | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Notes | ' | ||||
Note 2 - Marketable Securities | ' | ||||
Note 2 – Marketable Securities | |||||
The Company has classified its marketable securities as available for sale. Realized gains on marketable securities totaled $27 and $7for the years ended December 31, 2013 and 2012, respectively. The following tables summarize the Company’s marketable securities’ adjusted cost, gross unrealized gains (losses) and fair value: | |||||
31-Dec-13 | |||||
Adjusted | Unrealized | Unrealized | Fair | ||
Cost | Gains | Losses | Value | ||
Mutual funds - debt securities | $184 | - | ($1) | $183 | |
Money market mutual funds | 46 | - | - | 46 | |
Total | $230 | - | ($1) | $229 | |
31-Dec-12 | |||||
Adjusted | Unrealized | Unrealized | Fair | ||
Cost | Gains | Losses | Value | ||
Mutual funds - equity securities | $367 | $24 | ($24) | $367 | |
Mutual funds - debt securities | 293 | 5 | - | 298 | |
Money market mutual funds | 47 | - | - | 47 | |
Total | $707 | $29 | ($24) | $712 | |
The Company considers the declines in market value of its marketable securities to be temporary in nature. The investments consist of mutual funds selected according to an asset allocation policy of capital preservation. When evaluating the investments for other-than-temporary impairment, the Company reviews factors such as the length of time and extent to which fair value has been below cost basis, the financial condition of the issuer and any changes thereto, and the Company’s intent to sell the investment before recovery of the investment’s amortized cost basis. During the years ended December 31, 2013 and 2012, the Company did not recognize any other-than-temporary impairment charges on outstanding securities. As of December 31, 2013, the Company does not consider any of its investments to be other-than-temporarily impaired. | |||||
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. To increase the comparability of fair value measures, the following hierarchy prioritizes the inputs according to valuation methodologies used to measure fair value: | |||||
Level 1—Observable inputs reflecting quoted prices (unadjusted) for identical assets or liabilities in active markets | |||||
Level 2—Observable inputs (other than Level 1) directly or indirectly observable in the marketplace | |||||
Level 3—Unobservable inputs supported by little or no market activity | |||||
Marketable securities are classified within Level 1 because the underlying investments have readily available quoted market prices. | |||||
Marketable securities measured at fair value on a recurring basis are summarized below: | |||||
Description | 31-Dec-13 | Level 1 | Level 2 | Level 3 | |
Assets: | |||||
Mutual funds - debt securities | $183 | $183 | - | - | |
Money market mutual funds | 46 | 46 | - | - | |
Total | $229 | $229 | - | - | |
Description | 31-Dec-12 | Level 1 | Level 2 | Level 3 | |
Assets: | |||||
Mutual funds - equity securities | $367 | $367 | - | - | |
Mutual funds - debt securities | 298 | 298 | - | - | |
Money market mutual funds | 47 | 47 | - | - | |
Total | $712 | $712 | - | - | |
Note_3_DefiniteLived_Intangibl
Note 3 - Definite-Lived Intangible Assets and Goodwill | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
Notes | ' | |||||
Note 3 - Definite-Lived Intangible Assets and Goodwill | ' | |||||
Note 3 – Definite-Lived Intangible Assets and Goodwill | ||||||
Definite-lived intangible assets and goodwill consisted of the following as of December 31, 2013 and 2012: | ||||||
December 31, | ||||||
2013 | 2012 | |||||
Weighted Avg. Amortization Period in Years | Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | ||
Class | ||||||
Maintenance and legacy | 10 | $350 | ($281) | $350 | ($250) | |
customers | ||||||
Planetarium shows | 10 | 280 | -234 | 280 | -212 | |
Total | 10 | $630 | ($515) | $630 | ($462) | |
Amortization expense for the years ended December 31, 2013 and 2012 was $53 and $56, respectively. | ||||||
Maintenance and legacy customers and planetarium shows represent the value of definite-lived intangibles that were identified in the acquisition of Spitz, Inc. (“Spitz”) in 2006. | ||||||
Estimated future amortization expense is as follows as of December 31, 2013: | ||||||
Years Ending December 31, | ||||||
Class | 2014 | 2015 | 2016 | 2017 | 2018 | |
Maintenance and legacy customers | $27 | $27 | $15 | - | - | |
Planetarium shows | 20 | 14 | 12 | - | - | |
Total | $47 | $41 | $27 | - | - | |
Goodwill of $635 resulted from the acquisition of the Company’s wholly owned subsidiary, Spitz, and was measured as the excess of the $2,884 purchase consideration paid over the fair value of the net assets acquired. The Company has made its annual assessment of impairment of goodwill and has concluded that goodwill is not impaired as of December 31, 2013. |
Note_4_Costs_and_Estimated_Ear
Note 4 - Costs and Estimated Earnings On Uncompleted Contracts | 12 Months Ended | ||
Dec. 31, 2013 | |||
Notes | ' | ||
Note 4 - Costs and Estimated Earnings On Uncompleted Contracts | ' | ||
Note 4 - Costs and Estimated Earnings on Uncompleted Contracts | |||
Comparative information with respect to uncompleted contracts as of December 31: | |||
2013 | 2012 | ||
Total accumulated costs and estimated earnings on uncompleted contracts | $28,402 | $15,946 | |
Less total billings on uncompleted contracts | -29,369 | -16,003 | |
($967) | ($57) | ||
The above amounts are reported in the consolidated balance sheets as of December 31: | |||
2013 | 2012 | ||
Costs and estimated earnings in excess of billings on uncompleted contracts | $2,391 | $2,474 | |
Billings in excess of costs and estimated earnings on uncompleted contracts | -3,358 | -2,531 | |
($967) | ($57) |
Note_5_Leases
Note 5 - Leases | 12 Months Ended | ||
Dec. 31, 2013 | |||
Notes | ' | ||
Note 5 - Leases | ' | ||
Note 5 - Leases | |||
The Company occupies real property and uses certain equipment under lease arrangements that are accounted for as operating leases. The Company’s real property leases contain escalation clauses. Rental expense for all operating leases for 2013 and 2012 was $161 and $172 each year. | |||
Future minimum lease payments under operating leases that have initial or remaining non-cancelable lease terms in excess of one year are as follows: | |||
Years Ending December 31, | |||
2014 | $134 | ||
2015 | 134 | ||
2016 | 134 | ||
2017 | 134 | ||
2018 | 151 | ||
Thereafter | 2,194 | ||
Total | $2,881 |
Note_6_Employee_Retirement_Ben
Note 6 - Employee Retirement Benefit Plans | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Notes | ' | ||||
Note 6 - Employee Retirement Benefit Plans | ' | ||||
Note 6 - Employee Retirement Benefit Plans | |||||
Pension Plan | |||||
The Pension Plan is a qualified defined benefit pension plan funded by Company contributions. The Pension Plan was frozen in 2002. Benefits at normal retirement age (65) are based upon the employees’ years of service as of the date of the curtailment for employees not yet retired, and the employees’ compensation prior to the curtailment. | |||||
Distress Termination Application | |||||
On January 7, 2013, the Company submitted a PBGC Form 600 Distress Termination, Notice of Intent to Terminate, to the PBGC. The notice filing initiated an application process by the Company with the Pension Benefit Guaranty Corporation (“PBGC”) for the distress termination of the Pension Plan. The Pension Plan benefits are guaranteed by the ERISA Title IV insurance fund, which is administered by the PBGC. The Company has proposed a termination date of March 8, 2013. Through the application process, the Company’s intent has been to demonstrate to the PBGC that it qualifies for a distress termination of the Pension Plan under either of two of the criteria of Section 4041(c)(2) of ERISA (inability to continue in business absent termination and unreasonably increased pension costs) and applicable PBGC regulations. To satisfy the criteria, the Company and its wholly owned subsidiary each must demonstrate to the satisfaction of the PBGC that, unless the termination occurs, the Company will be unable to pay its debts when they come due and will be unable to continue in business, or that the costs of the Pension Plan have become unreasonably burdensome solely as a result of a decline in the workforce covered by the Plan. A distress termination under Section 4041(c)(2) of ERISA would transfer the Pension Plan’s benefit obligations to the PBGC, up to ERISA guaranteed limits, without requiring reorganization under bankruptcy law. The Pension Plan’s actuary has informed the Company that following termination of the Plan and subject to the PBGC’s review of participant benefits, all of the benefits earned by participants as of the date of plan termination are expected to fall within ERISA guaranteed limits. | |||||
If the distress termination application is approved, the Company’s unfunded obligation of the Pension Plan would be replaced by a new Pension Plan termination liability to the PBGC, determined by the Pension Plan’s underfunding on a termination basis pursuant to ERISA, PBGC regulations, and other applicable legal authority, along with an ERISA special termination premium. The Company would also be liable for any unpaid contributions to the Pension Plan (which in substance is a subset of plan termination liability) and annual insurance premiums for the Pension Plan, along with any interest and penalties. While the full Pension Plan termination liability and other pension related liabilities due to the PBGC would likely be greater than the unfunded obligation of the Pension Plan as currently reported in the Company’s financial statements, the Company is in discussions with the PBGC to negotiate a settlement of such liabilities on terms that are feasible for the Company to continue in business as a going concern, which is consistent with the purposes of the statute. | |||||
The Company’s goal in seeking a distress termination of the Pension Plan is to ensure that the pension benefits of all Pension Plan participants are paid up to federally guaranteed limits and that the Company continues to operate as a going concern while avoiding the costly damage and disruption to the business which would result from bankruptcy reorganization. The Company has been pursuing a conclusion of the process and a settlement of the resulting liabilities. Based upon recent correspondence with the PBGC, the Company believes that the application process will likely result in a settlement of the Pension Plan liabilities on terms that will enable the Company to continue to operate as a going concern. However, as of the date of this filing, the Company is uncertain of the timing or the ultimate outcome. | |||||
Supplemental Executive Retirement Plan | |||||
The Company maintains an unfunded Supplemental Executive Retirement Plan (“SERP”). The SERP provides eligible executives defined pension benefits, outside the Pension Plan, based on average salary, years of service and age at retirement. The SERP was amended in 2002 to discontinue further SERP gains from future salary increases and close the SERP to new participants. | |||||
401(k) Deferred Savings Plan | |||||
The Company has a deferred savings plan that qualifies under Section 401(k) of the Internal Revenue Code. The 401(k) plan covers all employees of the Company who have at least one year of service and who are age 18 or older. Matching contributions are made on employee contributions after the employee has achieved one year of service. | |||||
Extra matching contributions can be made based on profitability and other financial and operational considerations. No extra matching contributions have been made to date. Contributions to the 401(k) plan for 2013 and 2012 were $175 and $172, respectively. | |||||
Obligations and Funded Status for Pension Plan and SERP | |||||
E&S uses a December 31 measurement date for both the Pension Plan and the SERP. | |||||
Information concerning the obligations, plan assets and funded status of employee retirement defined benefit plans are provided below: | |||||
Pension Plan | SERP | ||||
2013 | 2012 | 2013 | 2012 | ||
Changes in benefit obligation | |||||
Projected benefit obligation at beginning of the year | $53,075 | $50,610 | $5,571 | $5,690 | |
Service cost | - | - | - | - | |
Interest cost | 1,591 | 1,870 | 164 | 205 | |
Actuarial (gain) loss | -6,000 | 3,200 | -389 | 216 | |
Benefits paid | -575 | -222 | -500 | -540 | |
Settlement payments | - | -2,383 | - | - | |
Projected benefit obligation at end of the year | $48,091 | $53,075 | $4,846 | $5,571 | |
Pension Plan | SERP | ||||
Changes in plan assets | 2013 | 2012 | 2013 | 2012 | |
Fair value of plan assets at beginning of the year | $24,760 | $23,226 | - | - | |
Actual return on plan assets | 4,785 | 2,655 | - | - | |
Contributions | 103 | 1,484 | 500 | 540 | |
Benefits paid | -575 | -222 | -500 | -540 | |
Settlements payments | - | -2,383 | - | - | |
Fair value of plan assets at end of the year | $29,073 | $24,760 | - | - | |
Pension Plan | SERP | ||||
2013 | 2012 | 2013 | 2012 | ||
Net Amount Recognized | |||||
Unfunded status | ($19,018) | ($28,315) | ($4,846) | ($5,571) | |
Accrued PBGC insurance premiums | -234 | - | - | - | |
Unrecognized net actuarial loss | 16,261 | 25,913 | 1,455 | 1,912 | |
Unrecognized prior service cost | - | - | -107 | -156 | |
Net amount recognized | ($2,991) | ($2,402) | ($3,498) | ($3,815) | |
Amounts recognized in the consolidated balance sheets consisted of: | |||||
Pension Plan | SERP | ||||
2013 | 2012 | 2013 | 2012 | ||
Accrued liability | ($19,018) | ($28,315) | ($4,846) | ($5,571) | |
Accrued PBGC insurance premiums | -234 | - | - | - | |
Accumulated other comprehensive loss | 16,261 | 25,913 | 1,348 | 1,756 | |
Net amount recognized | ($2,991) | ($2,402) | ($3,498) | ($3,815) | |
Components of net periodic benefit cost: | |||||
Pension Plan | SERP | ||||
2013 | 2012 | 2013 | 2012 | ||
Service cost | - | - | - | - | |
Interest cost | 1,591 | 1,870 | 164 | 205 | |
Expected return on assets | -1,841 | -1,815 | - | - | |
Amortization of actuarial loss | 709 | 682 | 68 | 58 | |
Amortization of prior year service cost | - | - | -48 | -48 | |
Settlement charge | - | 1,163 | - | - | |
Net periodic benefit cost | 459 | 1,900 | 184 | 215 | |
Other pension related expenses | 322 | - | - | - | |
$781 | $1,900 | $184 | $215 | ||
Additional information | |||||
Pension expense was $965 for the year ended December 31, 2013, which included net periodic benefit expense of $459 for the pension, $184 for the SERP, $234 of insurance premium due to the PBGC and $88 of federal excise tax related to non-payment of minimum pension funding requirements. Pension expense for the year ended December 31, 2012 included net periodic benefit expense of $1,900 for the pension and $215 for the SERP. | |||||
There was an unrecognized net actuarial gain of $9,653 in 2013 due to an increase in the discount rate used to remeasure the Pension Plan of 3.1% as of December 31, 2012 compared to 4.8% as of December 31, 2013. In 2012 the unrecognized net actuarial loss of $514 due to a decrease in the discount rate used to remeasure the Pension Plan liability of 3.8% as of December 31, 2011 to 3.1% as of December 31, 2012. The discount rate is estimated based on an index of similar fixed income securities. During 2014, E&S expects to recognize $406 of accumulated other comprehensive loss as a component of 2014 net periodic benefit cost. | |||||
There was a decrease to the SERP minimum liability recorded in other comprehensive income of $409 in 2013, compared to an increase of $206 during 2012. The decrease in 2013 reflected the increase to the discount rate used to measure the SERP as of December 31, 2013 of 4.8% compared to 3.1% as of December 31, 2012. | |||||
Assumptions | |||||
The weighted average assumptions used to remeasure benefit obligations as of December 31, 2013 and 2012 included a discount rate of 4.8% and 3.1%, respectively, for the Pension Plan and SERP. The weighted average assumptions used to determine net periodic cost for the periods ended December 31, 2013 and 2012, included a discount rate of 3.1% and 3.8%, respectively, in each period for the Pension Plan and SERP. The weighted average assumption used to determine an expected long-term rate of return on Pension Plan assets was 8.0%. | |||||
The long-term rate of return on plan assets was estimated as the weighted average of expected return of each of the asset classes in the target allocation of plan assets. The expected return of each asset class is based on historical market returns. | |||||
Pension Plan Assets | |||||
The Pension Plan’s weighted-average asset allocations and weighted-average targeted asset allocations for each of the years presented are as follows: | |||||
2013 | 2012 | ||||
Asset allocation category of plan assets | Target % | Actual % | Actual % | ||
Mutual funds - equity securities | 60 | 61 | 59 | ||
Mutual funds - debt securities | 25 | 38 | 25 | ||
Real estate investment trust | 5 | - | 6 | ||
Hedge funds | 10 | - | 9 | ||
Cash and cash equivalents | - | 1 | 1 | ||
The asset allocation policy, consistent with the long-term growth objectives of the Pension Plan, is to invest on a diversified basis among various asset classes as determined by the Pension Plan Administrative Committee. Assets will be invested in a manner that will provide for long-term growth with a goal to achieve returns equal to or greater than applicable benchmarks. Investments will be managed by registered investment advisors. | |||||
No securities of the Company were part of the Pension Plan assets as of December 31, 2013 or 2012. | |||||
Fair Value Measurements | |||||
The Pension Plan assets include a significant amount of mutual funds invested in equity and debt securities that are classified within Level 1 because the underlying investments have readily available market prices. Fair values of real estate investments within the real estate investment trust are classified as Level 3 because they were valued using real estate valuation techniques and other methods that include reference to third-party sources and sales comparables where available. Hedge fund investments are classified in Level 2 and the fair values are generally calculated from pricing models with market input parameters from third-party sources. | |||||
The Pension Plan assets fair value measurements are summarized below: | |||||
Description | 31-Dec-13 | Level 1 | Level 2 | Level 3 | |
Pension Plan Assets: | |||||
Mutual funds - equity securities | $17,871 | $17,871 | - | - | |
Mutual funds - debt securities | 10,924 | 10,924 | - | - | |
Hedge fund | 243 | - | 243 | - | |
Money market mutual funds | 35 | 35 | - | - | |
Total | $29,073 | $28,830 | $243 | - | |
Description | 31-Dec-12 | Level 1 | Level 2 | Level 3 | |
Pension Plan Assets: | |||||
Mutual funds - equity securities | $14,716 | $14,716 | - | - | |
Mutual funds - debt securities | 6,092 | 6,092 | - | - | |
Real estate investment trust | 1,395 | - | - | 1,395 | |
Hedge fund | 2,273 | - | 2,273 | - | |
Money market mutual funds | 284 | 284 | - | - | |
Total | $24,760 | $21,092 | $2,273 | $1,395 | |
The following table provides further details of the Level 3 fair value measurements. | |||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | December 31, | ||||
Pension Plan Assets – Real estate investment trust: | 2013 | 2012 | |||
Beginning balance | $1,395 | $1,630 | |||
Actual return on plan assets – gains | -412 | 102 | |||
Purchases, sales, issuances and settlements (net) | -983 | -337 | |||
Ending balance | - | $1,395 | |||
Cash Flows | |||||
Employer contributions | |||||
Through September 15, 2012, the Company’s funding policy was to contribute to the Pension Plan trust amounts sufficient to satisfy regulatory funding standards, based upon independent actuarial valuations. Beginning in October 2012, the Company discontinued this policy in order to preserve necessary liquidity. As a result, a lien in favor of the PBGC has arisen against the assets of the Company to secure aggregate unpaid contributions which amount to $2,571, including interest, as of January 15, 2014. Independent actuarial valuations have determined that additional contributions of approximately $4,100 will become due through January 15, 2015. The Company’s legal counsel has advised that the PBGC usually does not take enforcement action under its lien rights while it is still considering the application for the distress termination which is consistent with the Company’s dialog with the PBGC through the application process. Based upon recent correspondence with the PBGC, the Company believes that the application process will likely result in a settlement of the Pension Plan liabilities on terms that will enable the Company to continue to operate as a going concern, although there can be no assurance as to the timing and ultimate outcome of such settlement discussions. | |||||
The Company is not currently required to fund the SERP. All benefit payments are made by E&S directly to those who receive benefits from the SERP. As such, these payments are treated as both contributions and benefits paid for reporting purposes. | |||||
The Company expects to contribute and pay benefits of approximately $531 related to the SERP in 2014. This contribution is expected to be partially made by liquidating marketable securities with the remainder from cash. | |||||
Estimated future benefit payments | |||||
As of December 31, 2013, the following benefits are expected to be paid based on actuarial estimates and prior experience: | |||||
Years Ending | Pension | ||||
December 31, | Plan | SERP | |||
2014 | $719 | $531 | |||
2015 | 980 | 551 | |||
2016 | 1,284 | 520 | |||
2017 | 1,568 | 529 | |||
2018 | 1,923 | 497 | |||
2019-2023 | 13,926 | 2,061 |
Note_7_Debt
Note 7 - Debt | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
Notes | ' | |||||
Note 7 - Debt | ' | |||||
Note 7 –Debt | ||||||
Long-term debt consisted of the following as of December 31, 2013 and 2012: | ||||||
2013 | 2012 | |||||
First mortgage note payable due in monthly installments of $23 (interest at 5.75%) through January 1, 2024; payment and rate subject to adjustment every 3 years, next adjustment January 14, 2016 | $2,116 | $2,266 | ||||
Second mortgage note payable due in monthly installments of $4 (interest at 5.75%) through October 1, 2028; payment and rate subject to adjustment every 5 years, next adjustment October 1, 2018 | 423 | 440 | ||||
Sale/leaseback financing | 2,818 | 2,609 | ||||
Total debt | 5,357 | 5,315 | ||||
Current portion of long-term debt | -2,995 | -167 | ||||
Long-term debt, net of current portion | $2,362 | $5,148 | ||||
Principal maturities on total debt are as follows: | ||||||
Years Ending | ||||||
December 31, | ||||||
2014 | $2,995 | |||||
2015 | 188 | |||||
2016 | 199 | |||||
2017 | 211 | |||||
2018 | 224 | |||||
Thereafter | 1,540 | |||||
Total debt | $5,357 | |||||
Mortgage Notes | ||||||
The first mortgage note payable represents the balance on a $3,200 note (“First Mortgage Note”) issued on January 14, 2004 by Spitz. The First Mortgage Note requires repayment in monthly installments of principal and interest over 20 years. On each third anniversary of the First Mortgage Note, the interest rate is adjusted to the greater of 5.75% or 3% over the Three-Year Constant Maturity Treasury Rate published by the United States Federal Reserve (“3YCMT”). The monthly installment is recalculated on the first month following a change in the interest rate. The recalculated monthly installment is equal to the monthly installment sufficient to repay the principal balance as of the date of the change in the interest rate over the remaining portion of the original 20-year term. On January 15, 2014, the 3YCMT was 0.81% and the interest rate on the First Mortgage Note remained at 5.75% per annum. As a result, the monthly installment amount remained at $23. | ||||||
The second mortgage note payable represents the balance on a $500 note (“Second Mortgage Note”) issued on September 11, 2008 by Spitz. The Second Mortgage Note requires repayment in monthly installments of principal and interest over 20 years. On each fifth anniversary of the Second Mortgage Note, the interest rate is adjusted to the greater of 5.75% or 3% over 3YCMT. The monthly installment is recalculated on the first month following a change in the interest rate. The recalculated monthly installment is equal to the monthly installment sufficient to repay the principal balance, as of the date of the change in the interest rate, over the remaining portion of the original 20-year term. On September 11, 2013, the fifth anniversary of the Second Mortgage Note, the 3YCMT was 0.88%. As a result, interest continues at 5.75% until possible adjustment on the next 5 year anniversary. The monthly installment also remains unchanged at $4. | ||||||
The Mortgage Notes are secured by the real property occupied by Spitz pursuant to a Mortgage and Security Agreement. The real property had a carrying value of $4,405 as of December 31, 2013. The Mortgage Notes are guaranteed by E&S. | ||||||
Line of Credit | ||||||
The Company is a party to a Credit Agreement with a commercial bank which permits borrowings of up to $1,100 to fund Spitz working capital requirements. Interest is charged on amounts borrowed at the Wall Street Journal Prime Rate. Borrowings under the Credit Agreement are secured by Spitz real and personal property and all of the outstanding shares of Spitz common stock. The Credit Agreement and Mortgage Notes contain cross default provisions whereby the default of either agreement will result in the default of both agreements. The Credit Agreement has no fixed term or maturity date but can be terminated by the bank at any time whereby any borrowings under the Credit Agreement are payable upon demand by the bank. There were no borrowings outstanding under the Credit Agreement during 2013 and 2012. | ||||||
Sale/Leaseback Financing | ||||||
In November 2009, the Company completed a purchase agreement with a buyer, Wasatch Research Park I, LLC (“Wasatch”) to sell its corporate office buildings and its interest in the lease for the land occupied by the buildings in Utah for $2,500. Under the agreement, E&S transferred legal title of the buildings including improvements and assigned the related land lease to Wasatch. E&S also entered into a sublease agreement to lease back the land and building for rent of $501 per year, of which $126 represents the land lease and $375 represents the building lease. The sublease agreement has a term of 5 years with an option for two subsequent 5 year renewal periods. The agreement provided the Company with a 5-year option to repurchase all of the buildings under lease or only one of the buildings known as the Substation along with the lease interest in the land. In 2011, Rocky Mountain Power (“RMP”), a public utility company, obtained a decree of condemnation of the Substation so that RMP may repurpose the Substation for public use (see Note 7). As such the Company no longer has the option to buy the Substation. | ||||||
The repurchase price for the buildings excluding the Substation for the remaining term of the repurchase option is as follows: | ||||||
Date | ||||||
From | To | Repurchase price | ||||
1-Nov-13 | 31-Oct-14 | $ | 3,028 | |||
The arrangement was accounted for as a financing and no sale was recorded because the Company has the right to repurchase the property. Therefore, the assets representing the building and improvements remain in property and equipment and the Company recorded the net proceeds of the sale as long-term debt. The $126 portion of the sublease payment attributable to the land lease is equivalent to the payment under the assigned land lease and therefore is subject to the same rent escalations the Company was bound to before the assignment. The land lease portion of the sublease payment is recorded as rent expense consistent with the treatment of the prior land lease payment before the assignment of the lease. The $375 portion of the sublease agreement attributable to the building lease is accounted for as debt service under the financing transaction. The net proceeds of the financing amounted to $2,329 consisting of the $2,500 sales price less a security deposit of $125, prorated building rent of $15 and the first monthly payment of $31. E&S records interest expense at a rate of approximately 20% imputed from the estimated cash flows assuming it exercises the option to repurchase the property at the end of the 5-year term. In the event that E&S exercises the option to repurchase the property sooner than the end of the 5-year term, the difference between the carrying balance of the debt and the repurchase cost would be recorded as a prepayment premium or discount on the payoff of the debt balance. The cash payment required to repurchase the property on December 31, 2012 was $3,028 consisting of $3,153 repurchase price under the agreement less a credit for the $125 security deposit. Accordingly, if the Company had exercised its option to repurchase the property on December 31, 2013, it would have recorded a prepayment premium of approximately 7% in the amount of $210 over the $2,818 carrying balance of the debt. | ||||||
Note_8_Income_Taxes
Note 8 - Income Taxes | 12 Months Ended | ||
Dec. 31, 2013 | |||
Notes | ' | ||
Note 8 - Income Taxes | ' | ||
Note 8 - Income Taxes | |||
The Company recognizes the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement with the relevant tax authority. The Company is subject to audit by the IRS and various states for tax years dating back to 2009. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in income tax expense. | |||
Income tax (provision) benefit for 2013 and 2012 consisted of $(97) and $69, respectively, of federal and state income taxes. The actual expense differs from the expected tax (provision) benefit as computed by applying the U.S. federal statutory income tax rate of 34 percent for 2013 and 2012, as follows: | |||
2013 | 2012 | ||
Tax (provision) benefit at U.S. federal statutory rate | ($432) | $798 | |
State tax (provision) benefit (net of federal income tax benefit) | -131 | 186 | |
Research and development and foreign tax credits | -630 | - | |
Change in cash surrender value of life insurance | - | -132 | |
Change in valuation allowance attributable to operations | 2,123 | -778 | |
Other, net | -1,027 | -5 | |
Tax (provision) benefit | ($97) | $69 | |
The tax effects of temporary differences that give rise to significant portions of the deferred income tax assets and liabilities as of December 31, 2013 and 2012 are as follows: | |||
2013 | 2012 | ||
Deferred income tax assets: | |||
Property and equipment, principally due to differences in depreciation | $966 | $840 | |
Inventory reserves and other inventory-related temporary basis differences | 603 | 500 | |
Warranty, vacation, deferred rent and other liabilities | 858 | 849 | |
Retirement liabilities | 2,255 | 1,488 | |
Net operating loss carryforwards | 63,529 | 66,050 | |
Credit carryforwards | 825 | 1,428 | |
Other | 961 | 965 | |
Total deferred income tax assets | 69,997 | 72,120 | |
Less valuation allowance | -69,997 | -72,120 | |
Net deferred income tax assets | - | - | |
Deferred income tax liabilities: | |||
Total deferred income tax liabilities | - | - | |
Net deferred income tax assets and liabilities | - | - | |
Worldwide income (loss) before income taxes consisted of the following: | |||
2013 | 2012 | ||
United States | $1,270 | ($2,348) | |
Foreign | - | - | |
Total | $1,270 | ($2,348) | |
Income tax (provision) benefit consisted of the following: | |||
2013 | 2012 | ||
Current | |||
U.S. federal | ($30) | - | |
State | -67 | 69 | |
Foreign | - | - | |
Total | ($97) | $69 | |
Deferred | |||
U.S. federal | ($1,172) | $652 | |
State | -321 | 126 | |
Foreign | -630 | - | |
Total | -2,123 | 778 | |
Valuation allowance (increase) decrease | 2,123 | -778 | |
Total | - | - | |
E&S has total federal net operating loss carryforwards of approximately $165,300 which expire from 2019 through 2032. Approximately $2,541 of federal net operating loss carryforwards expired in 2013. The Company has various federal tax credit carryforwards of approximately $800, a portion of which expire between 2014 and 2016. E&S also has state net operating loss carryforwards of approximately $144,600 that expire at various dates depending on the rules of the states to which the loss or credit is allocated. | |||
During the years ended December 31, 2013 and 2012, the valuation allowance on deferred income tax assets decreased by $2,123 and increased by $778, respectively. Valuation allowances were established according to the belief that it is more likely than not that these net deferred income tax assets will not be realized. |
Note_9_Commitments_and_Conting
Note 9 - Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2013 | |
Notes | ' |
Note 9 - Commitments and Contingencies | ' |
Note 9 - Commitments and Contingencies | |
Letters of Credit | |
The Company has finance arrangements which facilitate the issuance of letters of credit and bank guarantees. Under the terms of the arrangements, E&S is required to maintain a balance in a specific cash account equal to or greater than the outstanding value of all letters of credit or bank guarantees issued, plus other amounts necessary to adequately secure obligations with the financial institution. As of December 31, 2013, there were outstanding letters of credit and bank guarantees of $1,110, of which $1,020 is scheduled to expire in 2014 and $90 is scheduled to expire in 2015. There was $90 and $442 of restricted cash included in other assets as of December 31, 2013 and 2012, respectively. | |
Loss on Condemnation of Property | |
In April 2011, Rocky Mountain Power (“RMP”), a public utility company, filed a complaint against the Company and Wasatch Research Park I, LLC (“Wasatch”) in the Third Judicial District Court, Salt Lake County, UT. Wasatch owns legal title to the buildings and leasehold interest in the land which the Company occupies (collectively, the “Properties”) pursuant to a series of agreements (the “Agreements”) which also grants the Company the option to repurchase the Properties or a certain portion of the Properties, known as the Substation Building (the “Substation”). The arrangement between E&S and Wasatch was accounted for as a financing and the lease obligation and repurchase option has been recorded as long-term debt as discussed more fully in Note 7. The Agreements also provided for a sharing of proceeds between the Company and Wasatch in the event of a sale of the Substation through various scenarios. In the complaint, RMP obtained a decree of condemnation of the Substation that allowed RMP to repurpose the Substation for public use. RMP requested a determination of just compensation for the appropriation of the Substation from the Company and Wasatch, and paid Wasatch a preliminary compensation amount of $231 in 2011. Wasatch and the Company believed that the Substation value was higher than $231 and sought additional compensation from RMP through legal proceedings. | |
In September 2011, RMP took possession of the Substation and the Company no longer retained use of the assets. The loss of the Substation has had no adverse impact on the Company’s near term operations as RMP will continue to provide adequate power supply under public utility services. However, for the long term the Company expects its power costs will be greater than they would have been had it retained ownership of the Substation. | |
During November 2011, the Company and Wasatch entered into an amendment (the “Amendment”) to the Agreements that clarified the sharing of proceeds from the condemnation and the Company’s option to repurchase the Substation. The Amendment affirmed the Company’s forfeiture of its right to repurchase the Substation as a result of RMP taking legal title. The Amendment provided for Wasatch to retain 100% of the $231 compensation already paid by RMP and for the Company and Wasatch to share equally in any additional compensation in excess of the $231, less legal expenses. The Amendment also required Wasatch to fund the legal expenditures of the proceedings so that any E&S payment for legal expense would be limited to its share of the amount of additional compensation RMP pays for the Substation, if any. Also, the Company’s price to repurchase the entire property was reduced by $152, representing the repurchase price for the Substation only. This reduced the sale/leaseback financing obligation included with long-term debt (see Note 7). | |
The final determination of the value of the Substation was determined to be $362, which resulted in $131 of additional compensation over the $231 proceeds received in 2011. In January 2014, the Company received $22 after sharing half of the litigation expenses with Wasatch. |
Note_10_Stock_Option_Plan
Note 10 - Stock Option Plan | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Notes | ' | ||||
Note 10 - Stock Option Plan | ' | ||||
Note 10 - Stock Option Plan | |||||
In 2004, shareholders approved the adoption of the 2004 Stock Incentive Plan of Evans & Sutherland Computer Corporation (“2004 Plan”), which expires in 2014. The 2004 Plan is a stock incentive plan that provides for the grant of options and restricted stock awards to employees and for the grant of options to non-employee directors. Under the 2004 Plan non-employee directors may receive an annual option grant for no more than 10,000 shares. New non-employee directors may receive an option grant for no more than 10,000 shares upon their appointment or election. In addition, with the adoption of this plan no additional options can be issued under any of the prior stock-based plans. The 2004 Plan establishes a minimum exercise price for options of 110% of fair market value on the date of grant. Restricted stock awards may be qualified as a performance-based award that conditions a participant’s award upon achievement by the Company or its subsidiaries of performance goals established by the Board of Directors’ Compensation Committee. | |||||
The number of shares, terms, and exercise periods of option grants are determined by the Board of Directors on an option-by-option basis. Options generally vest ratably over three years and expire ten years from the date of grant. As of December 31, 2013, options to purchase 1,539,113 shares of common stock were authorized and reserved for future grant. | |||||
A summary of activity follows (shares in thousands): | |||||
2013 | 2012 | ||||
Weighted- | Weighted- | ||||
Average | Average | ||||
Number | Exercise | Number | Exercise | ||
of Shares | Price | of Shares | Price | ||
Outstanding as of beginning of the year | 1,169 | $3.19 | 1,151 | $3.74 | |
Granted | 151 | 0.03 | 111 | 0.21 | |
Exercised | - | - | - | - | |
Cancelled | -85 | 5.81 | -93 | 6.47 | |
Outstanding as of end of the year | 1,235 | 2.62 | 1,169 | 3.19 | |
Exercisable as of end the year | 977 | 3.26 | 991 | 3.68 | |
The weighted average fair value of options granted during 2013 and 2012 was $0.03 and $0.21, respectively. As of December 31, 2013, options exercisable and options outstanding had a weighted average remaining contractual term of 3.5 and 4.6 years, respectively, and no aggregate intrinsic value. As of December 31, 2012, options exercisable and options outstanding had a weighted average remaining contractual term of 3.9 and 4.6 years, respectively, and no aggregate intrinsic value. | |||||
The fair value of each option grant is estimated on the date of the grant using the Black-Scholes option-pricing model with the following weighted-average assumptions used for the grants made in 2013 and 2012: | |||||
2013 | 2012 | ||||
Expected life (in years) | 3.5 | 4 | |||
Risk free interest rate | 0.39% | 0.36% | |||
Expected volatility | 377% | 396% | |||
Dividend yield | - | - | |||
Expected option lives and volatilities are based on historical data of the Company. The risk free interest rate is calculated as the average US Treasury bill rate that corresponds with the option life. Historically, the Company has not declared dividends and there are no plans to do so. | |||||
As of December 31, 2013, there was approximately $6 of total unrecognized share-based compensation cost related to grants under the plans that will be recognized over a weighted-average period of 2 years. | |||||
Share-based compensation expense, from awards under the 2004 Plan for the years ended December 31, 2013 and 2012 amounted to $18 and $33, respectively, and was recorded as general and administrative expense. |
Note_11_Preferred_Stock
Note 11 - Preferred Stock | 12 Months Ended |
Dec. 31, 2013 | |
Notes | ' |
Note 11 - Preferred Stock | ' |
Note 11 - Preferred Stock | |
Class A Preferred Stock | |
The Company has 5,000,000 authorized shares of Class A Preferred Stock. As of December 31, 2013 and 2012, there were no Class A Preferred shares of stock outstanding. | |
Class B Preferred Stock | |
The Company has 5,000,000 authorized shares of Class B Preferred Stock. As of December 31, 2013 and 2012, there were no Class B Preferred shares of stock outstanding. |
Note_12_Geographic_Information
Note 12 - Geographic Information | 12 Months Ended | ||
Dec. 31, 2013 | |||
Notes | ' | ||
Note 12 - Geographic Information | ' | ||
Note 12 - Geographic Information | |||
The table below presents sales by geographic location: | |||
2013 | 2012 | ||
United States | $14,198 | $13,721 | |
International | 15,385 | 11,187 | |
Total sales | $29,583 | $24,908 |
Note_13_Significant_Customers
Note 13 - Significant Customers | 12 Months Ended |
Dec. 31, 2013 | |
Notes | ' |
Note 13 - Significant Customers | ' |
Note 13 - Significant Customers | |
As of December 31, 2013, Customers A and B represented 11% and 30% of accounts receivable, respectively, and Customers A, C, D and E represented 16%, 16%, 14% and 10% of costs andestimated earnings in excess of billings, respectively. | |
As of December 31, 2012, Customer A represented 13% of accounts receivable and Customers F, G and H represented 21%, 11% and 10% of costs and estimated earnings in excess of billings. | |
For the years ended December 31, 2013 and 2012, no individual customer represented 10% or more of total sales. |
Note_1_Nature_of_Operations_an1
Note 1 - Nature of Operations and Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Policies | ' | |||
Nature of Operations | ' | |||
Nature of Operations | ||||
Evans & Sutherland Computer Corporation, referred to in these notes as “Evans & Sutherland,” “E&S,” or the “Company,” produces high-quality advanced visual display systems used primarily in full-dome video projection applications, dome projection screens and dome architectural treatments. E&S also produces unique content for planetariums, schools, science centers and other educational institutions and entertainment venues. The Company’s products include state of the art planetarium and dome theater systems consisting of proprietary hardware and software, and other unique visual display systems primarily used to project digital video on large curved surfaces. Additionally, E&S manufactures and installs metal domes with customized optical coatings and acoustical properties that are used for planetarium and dome theaters as well as many other unique custom applications. The Company operates in one business segment, which is the visual simulation market. | ||||
Basis of Presentation | ' | |||
Basis of Presentation | ||||
The consolidated financial statements include the accounts of Evans & Sutherland and its wholly owned subsidiaries. All inter-company accounts and transactions have been eliminated in consolidation. | ||||
Use of Estimates | ' | |||
Use of Estimates | ||||
The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. The accounting estimates that require management’s most difficult and subjective judgments include revenue recognition based on the percentage-of-completion method, inventory reserves, allowance for doubtful accounts receivable, income tax valuation allowance, impairment of long-lived assets, pension and retirement obligations and useful lives of depreciable assets. Actual results could differ from those estimates. | ||||
Cash and Cash Equivalents | ' | |||
Cash and Cash Equivalents | ||||
The Company considers all highly liquid investments with original maturities of three or fewer months to be cash equivalents. The Company maintains cash balances in bank accounts that, at times, exceed federally insured limits. The Company has not experienced any losses in these accounts and believes it is not exposed to any significant risk with respect to cash. As of December 31, 2013, cash deposits per bank statements, including restricted cash, exceeded the federally insured limits by approximately $4,137. | ||||
Restricted Cash | ' | |||
Restricted Cash | ||||
Restricted cash that guarantees issued letters of credit that mature or expire within one year is reported as a current asset. Restricted cash that guarantees issued letters of credit that mature or expire in more than one year are reported as a long-term other asset. There was $90 and $442 of restricted cash included in other assets as of December 31, 2013 and 2012, respectively. | ||||
Marketable Securities | ' | |||
Marketable Securities | ||||
The Company classifies its marketable debt and equity securities as available-for-sale. Available-for-sale securities are recorded at fair value. Unrealized holding gains and losses, net of the related tax effect, are excluded from earnings and are reported as a component of accumulated other comprehensive income (loss) until realized. Dividend and interest income are recognized when earned. Realized gains and losses from the sale of securities are included in results of operations and are determined on the specific identification basis. A decline in the market value that is deemed other-than-temporary results in a charge to other income (expense) and the establishment of a new cost basis for the investment. | ||||
Trade Accounts Receivable | ' | |||
Trade Accounts Receivable | ||||
In the normal course of business, E&S provides unsecured credit terms to its customers. Accordingly, the Company maintains an allowance for doubtful accounts for possible losses on uncollectible accounts receivable. The Company routinely analyzes accounts receivable and costs and estimated earnings in excess of billings, and considers history, customer creditworthiness, facts and circumstances specific to outstanding balances, current economic trends, and changes in payment terms when evaluating the adequacy of the allowance for doubtful accounts receivable. Changes in these factors could result in material differences to bad debt expense. Past due balances are determined based on contractual terms and are reviewed individually for collectability. Uncollectible accounts receivable are charged against the allowance for doubtful accounts when the probability of collection is remote. | ||||
The table below represents changes in E&S’s allowance for doubtful accounts receivable for the years ended December 31: | ||||
2013 | 2012 | |||
Beginning balance | $324 | $470 | ||
Write-off of accounts receivable | -159 | -89 | ||
Increase (reduction) in estimated losses on accounts receivable | 112 | -57 | ||
Ending balance | $277 | $324 | ||
Inventories | ' | |||
Inventories | ||||
Inventories include materials at standard costs, which approximate actual costs, as well as inventoried costs on programs and long-term contracts. Inventoried costs include material, direct engineering and production costs, and applicable overhead, not in excess of estimated realizable value. Spare parts and general stock materials are stated at cost not in excess of realizable value. E&S periodically reviews inventories for excess supply, obsolescence, and valuations above estimated realizable amounts, and provides a reserve sufficient to cover these items. Revisions of these estimates could impact net income (loss). | ||||
During the years ended December 31, 2013 and 2012, E&S recognized losses on inventory impairment of $349 and $409 for obsolete and excess quantities of inventory, primarily related to the Evans & Sutherland Laser Projector. | ||||
Inventories as of December 31, were as follows: | ||||
2013 | 2012 | |||
Raw materials | $5,587 | $5,255 | ||
Work-in-process | 234 | 287 | ||
Finished goods | 223 | 253 | ||
Reserve for obsolete inventory | -3,019 | -2,670 | ||
Total inventories, net | $3,025 | $3,125 | ||
Property and Equipment | ' | |||
Property and Equipment | ||||
Property and equipment are stated at cost. Depreciation and amortization are computed using the straight-line method based on the estimated useful lives of the related assets. Expenditures that materially increase values or capacities or extend useful lives of property and equipment are capitalized. Leasehold improvements are assigned useful lives based on the shorter of their useful lives or the term of the related leases, including renewal options likely to be exercised. Routine maintenance, repairs and renewal costs are expensed as incurred. When property is retired or otherwise disposed of, the carrying values are removed from the property and equipment and the related accumulated depreciation and amortization accounts. Depreciation and amortization are included in cost of sales, research and development or selling, general and administrative expenses depending on the nature of the asset. | ||||
Depreciation and amortization expense was $528 and $688 for the years ended December 31, 2013 and 2012, respectively. | ||||
The cost and estimated useful lives of property and equipment and the total accumulated depreciation and amortization were as follows as of December 31: | ||||
Estimated | ||||
useful lives | 2013 | 2012 | ||
Land | n/a | $2,250 | $2,250 | |
Buildings and improvements | 5 - 40 years | 9,712 | 9,717 | |
Manufacturing machinery and equipment | 3 - 8 years | 5,382 | 5,613 | |
Office furniture and equipment | 3 - 8 years | 779 | 779 | |
Total | 18,123 | 18,359 | ||
Less accumulated depreciation and amortization | -10,718 | -10,624 | ||
Net property and equipment | $7,405 | $7,735 | ||
Goodwill | ' | |||
Goodwill | ||||
The Company tests its recorded goodwill for impairment on an annual basis during the fourth quarter, or more often if indicators of potential impairment exist, by determining if the carrying value of each reporting unit exceeds its estimated fair value. Factors that could trigger impairment include, but are not limited to, underperformance relative to historical or projected future operating results, significant changes in the manner of use of the acquired assets or the Company’s overall business and significant negative industry or economic trends. Future impairment reviews may require write-downs in the Company’s goodwill and could have a material adverse impact on the Company’s operating results for the periods in which such write-downs occur. | ||||
Intangible Assets | ' | |||
Intangible Assets | ||||
E&S amortizes the cost of intangible assets over their estimated useful lives. Amortizable intangible assets are reviewed at least annually to determine whether events and circumstances warrant a revision to the remaining period of amortization. | ||||
Software Development Costs | ' | |||
Software Development Costs | ||||
Software development costs, if material, are capitalized from the date technological feasibility is achieved until the product is available for general release to customers. Such costs were not been material during the years presented. | ||||
Impairment of Long-lived Assets | ' | |||
Impairment of Long-Lived Assets | ||||
Long-lived assets are reviewed for impairment when events or changes in circumstances indicate the carrying values of the assets may not be fully recoverable. When this occurs, the Company reviews the values assigned to long-lived assets by analyzing the anticipated, undiscounted cash flows they generate. When the expected future undiscounted cash flows from these assets do not exceed their carrying values, the Company determines the estimated fair values of such assets. Impairment is recognized to the extent the carrying values of the assets exceed their estimated fair values. Assets held for sale are reported at the lower of their carrying values or fair values less costs to sell. | ||||
Warranty Reserve | ' | |||
Warranty Reserve | ||||
E&S provides a warranty reserve for estimated future costs of servicing products under warranty agreements extending for periods from 90 days to one year. Anticipated costs for product warranties are based upon estimates derived from experience factors and are recorded at the time of sale or over the period revenues are recognized for long-term contracts. Warranty reserves are classified as accrued liabilities in the accompanying consolidated balance sheets. | ||||
The table below represents changes in E&S’s warranty reserve for the years ended December 31: | ||||
2013 | 2012 | |||
Beginning balance | $145 | $183 | ||
Change in warranty reserve | 111 | 69 | ||
Warranty costs | -106 | -107 | ||
Ending balance | $150 | $145 | ||
Revenue Recognition | ' | |||
Revenue Recognition | ||||
Sales include revenues from system hardware, software, database products and service contracts. The following table provides information on revenues by recognition method applied during the years: | ||||
2013 | 2012 | |||
Percentage of completion | $14,831 | $14,956 | ||
Completed contract | 13,102 | 8,429 | ||
Other | 1,650 | 1,523 | ||
Total sales | $29,583 | $24,908 | ||
The following methods are used to record revenue: | ||||
Percentage of Completion. In arrangements that are longer in term and require significant production, modification or customization, revenue is recognized using the percentage-of-completion method. In applying this method, the Company utilizes the cost-to-cost methodology whereby it estimates the percent complete by calculating the ratio of costs incurred (consisting of material, labor and subcontracting costs, as well as an allocation of indirect costs) to its estimate of total anticipated costs. This ratio is then utilized to determine the amount of gross profit earned based on its estimate of total gross profit at completion. The Company routinely reviews estimates related to percentage-of-completion contracts and adjusts for changes in the period the revisions are made. Billings on uncompleted percentage-of-completion contracts may be greater than or less than incurred costs and estimated earnings and are recorded as an asset or liability in the accompanying consolidated balance sheets. | ||||
Completed Contract. Contract arrangements which typically require a relatively short period of time to complete the production, modification, and customization of products are accounted for using the completed contract method. Accordingly, revenue is recognized upon delivery of the completed product, provided persuasive evidence of an arrangement exists, title and risk of loss have transferred, the fee is fixed or determinable, and collection is reasonably assured. | ||||
Multiple Element Arrangements. Some contracts include multiple elements. Significant deliverables in such arrangements commonly include various hardware components of visual display systems, domes, show content and various service and maintenance elements. Revenue earned on elements such as products, services and maintenance contracts are allocated to each element based on the relative fair values of the elements. Relative fair values of elements are generally determined based on actual and estimated selling price. Delivery times of such contracts typically occur within a three to six-month time period. | ||||
Other. Other revenue consists primarily of amounts earned under maintenance contracts that are generally sold as a single element to customers. Revenue from product maintenance contracts, including separately priced extended warranty contracts, is deferred and recognized over the period of performance under the contract. | ||||
Anticipated Losses. For contracts with anticipated losses at completion, a provision is recorded when the loss is probable. After an anticipated loss is recorded, subsequent revenue and cost of sales are recognized in equal, offsetting amounts as contract costs are incurred. | ||||
Net Income (loss) Per Common Share | ' | |||
Net Income (Loss) per Common Share | ||||
Net income (loss) per common share is computed based on the weighted-average number of common shares and, as appropriate, dilutive common stock equivalents outstanding during the year. Stock options are common stock equivalents. | ||||
Basic income or loss per common share is based upon the average number of shares of common stock outstanding during the year. Potentially dilutive securities from stock options are discussed in Note 10. | ||||
Income Taxes | ' | |||
Income Taxes | ||||
The Company uses the asset and liability method of accounting for income taxes. Under the asset and liability method, deferred income tax assets and liabilities are recognized for the future income tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective income tax bases and operating loss and income tax credit carry-forwards. Deferred income tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred income tax assets and liabilities of a change in income tax rates is recognized in the period that includes the enactment date. | ||||
Other Comprehensive Loss | ' | |||
Other Comprehensive Loss | ||||
On a net basis for 2013 and 2012, there were deferred income tax assets resulting from items reflected in comprehensive loss. However, E&S has determined that it is more likely than not that it will not realize such net deferred income tax assets and has therefore established a valuation allowance against the full amount of the net deferred income tax assets. Accordingly, the net income tax effect of the items included in other comprehensive income (loss) is zero. Therefore, the Company has included no income tax expense or benefit in relation to items reflected in other comprehensive income (loss). | ||||
The components of accumulated other comprehensive loss were as follows as of December 31: | ||||
2013 | 2012 | |||
Additional minimum pension liability | ($17,608) | ($27,669) | ||
Net unrealized holding gains (losses) on marketable securities | -1 | 5 | ||
Total accumulated other comprehensive loss | ($17,609) | ($27,664) | ||
Leases | ' | |||
Leases | ||||
The Company recognizes scheduled rent increases on a straight-line basis over the lease term, which may include optional lease renewal terms. Deferred rent income and expense are recognized to reflect the difference between the rent paid or received in the current period and the calculated straight-line amount. | ||||
Reclassifications | ' | |||
Reclassifications | ||||
Certain amounts in the prior year’s consolidated financial statements have been reclassified to conform to the current year’s presentation. | ||||
Recent Accounting Pronouncements | ' | |||
Recent Accounting Pronouncements | ||||
In February 2013, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) No. 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. ASU No. 2013-02 sets requirements for presentation for significant items reclassified out of accumulated other comprehensive loss to net income in reporting periods presented. ASU 2013-02 was effective prospectively beginning with the quarter ended March 31, 2013. The adoption of this guidance did not have an impact on our financial condition or results of operations but required changes in the presentation of the financial statements. | ||||
Liquidity | ' | |||
Liquidity | ||||
. | ||||
Recurring losses prior to 2013 have been accompanied by negative cash flows from operating activities. Furthermore, as of December 31, 2013, the unfunded obligation of the Pension Plan, as measured for accounting purposes, amounts to $19,018 (see Note 6) contributing to a total stockholders’ deficit of $13,398 as of December 31, 2013. Aided by prior cost reduction efforts and improved 2013 sales volume the Company reported net income for 2013. The Company does not believe it can sustain and improve annual profitability at sufficient levels to fund its existing Pension Plan obligation. In order to preserve the liquid resources required to operate the business, the Company stopped making cash payments due to the Pension Plan trust beginning in October 2012. As described more fully in Note 6, the Company initiated an application process for the distress termination of the Pension Plan in accordance with provisions of the Employee Retirement Income Security Act of 1974 (“ERISA”) which it believes will result in a settlement of its Pension Plan liabilities on terms that are feasible for the Company to continue in business as a going concern through 2014 and beyond. However, as of the date of this filing, the Company is uncertain of the timing or the ultimate outcome. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. |
Note_1_Nature_of_Operations_an2
Note 1 - Nature of Operations and Summary of Significant Accounting Policies: Trade Accounts Receivable: Schedule of Doubtful Receivables During the Year (Tables) | 12 Months Ended | ||
Dec. 31, 2013 | |||
Tables/Schedules | ' | ||
Schedule of Doubtful Receivables During the Year | ' | ||
The table below represents changes in E&S’s allowance for doubtful accounts receivable for the years ended December 31: | |||
2013 | 2012 | ||
Beginning balance | $324 | $470 | |
Write-off of accounts receivable | -159 | -89 | |
Increase (reduction) in estimated losses on accounts receivable | 112 | -57 | |
Ending balance | $277 | $324 |
Note_1_Nature_of_Operations_an3
Note 1 - Nature of Operations and Summary of Significant Accounting Policies: Inventories: Schedule of Current Inventories (Tables) | 12 Months Ended | ||
Dec. 31, 2013 | |||
Tables/Schedules | ' | ||
Schedule of Current Inventories | ' | ||
Inventories as of December 31, were as follows: | |||
2013 | 2012 | ||
Raw materials | $5,587 | $5,255 | |
Work-in-process | 234 | 287 | |
Finished goods | 223 | 253 | |
Reserve for obsolete inventory | -3,019 | -2,670 | |
Total inventories, net | $3,025 | $3,125 |
Note_1_Nature_of_Operations_an4
Note 1 - Nature of Operations and Summary of Significant Accounting Policies: Property and Equipment: Property, Plant and Equipment [Table Text Block] (Tables) | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Tables/Schedules | ' | |||
Property, Plant and Equipment | ' | |||
The cost and estimated useful lives of property and equipment and the total accumulated depreciation and amortization were as follows as of December 31: | ||||
Estimated | ||||
useful lives | 2013 | 2012 | ||
Land | n/a | $2,250 | $2,250 | |
Buildings and improvements | 5 - 40 years | 9,712 | 9,717 | |
Manufacturing machinery and equipment | 3 - 8 years | 5,382 | 5,613 | |
Office furniture and equipment | 3 - 8 years | 779 | 779 | |
Total | 18,123 | 18,359 | ||
Less accumulated depreciation and amortization | -10,718 | -10,624 | ||
Net property and equipment | $7,405 | $7,735 |
Note_1_Nature_of_Operations_an5
Note 1 - Nature of Operations and Summary of Significant Accounting Policies: Warranty Reserve: Schedule of Product Warranty Liability (Tables) | 12 Months Ended | ||
Dec. 31, 2013 | |||
Tables/Schedules | ' | ||
Schedule of Product Warranty Liability | ' | ||
The table below represents changes in E&S’s warranty reserve for the years ended December 31: | |||
2013 | 2012 | ||
Beginning balance | $145 | $183 | |
Change in warranty reserve | 111 | 69 | |
Warranty costs | -106 | -107 | |
Ending balance | $150 | $145 |
Note_1_Nature_of_Operations_an6
Note 1 - Nature of Operations and Summary of Significant Accounting Policies: Revenue Recognition: Schedule of Revenue by Recognition Method (Tables) | 12 Months Ended | ||
Dec. 31, 2013 | |||
Tables/Schedules | ' | ||
Schedule of Revenue by Recognition Method | ' | ||
2013 | 2012 | ||
Percentage of completion | $14,831 | $14,956 | |
Completed contract | 13,102 | 8,429 | |
Other | 1,650 | 1,523 | |
Total sales | $29,583 | $24,908 |
Note_1_Nature_of_Operations_an7
Note 1 - Nature of Operations and Summary of Significant Accounting Policies: Other Comprehensive Loss: Schedule of Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended | ||
Dec. 31, 2013 | |||
Tables/Schedules | ' | ||
Schedule of Accumulated Other Comprehensive Income (Loss) | ' | ||
The components of accumulated other comprehensive loss were as follows as of December 31: | |||
2013 | 2012 | ||
Additional minimum pension liability | ($17,608) | ($27,669) | |
Net unrealized holding gains (losses) on marketable securities | -1 | 5 | |
Total accumulated other comprehensive loss | ($17,609) | ($27,664) |
Note_2_Marketable_Securities_S
Note 2 - Marketable Securities: Schedule of Marketable Securities (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Tables/Schedules | ' | ||||
Schedule of Marketable Securities | ' | ||||
31-Dec-13 | |||||
Adjusted | Unrealized | Unrealized | Fair | ||
Cost | Gains | Losses | Value | ||
Mutual funds - debt securities | $184 | - | ($1) | $183 | |
Money market mutual funds | 46 | - | - | 46 | |
Total | $230 | - | ($1) | $229 | |
31-Dec-12 | |||||
Adjusted | Unrealized | Unrealized | Fair | ||
Cost | Gains | Losses | Value | ||
Mutual funds - equity securities | $367 | $24 | ($24) | $367 | |
Mutual funds - debt securities | 293 | 5 | - | 298 | |
Money market mutual funds | 47 | - | - | 47 | |
Total | $707 | $29 | ($24) | $712 |
Note_2_Marketable_Securities_S1
Note 2 - Marketable Securities: Schedule of Marketable Securities Measured at Fair Value (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Tables/Schedules | ' | ||||
Schedule of Marketable Securities Measured at Fair Value | ' | ||||
Marketable securities measured at fair value on a recurring basis are summarized below: | |||||
Description | 31-Dec-13 | Level 1 | Level 2 | Level 3 | |
Assets: | |||||
Mutual funds - debt securities | $183 | $183 | - | - | |
Money market mutual funds | 46 | 46 | - | - | |
Total | $229 | $229 | - | - | |
Description | 31-Dec-12 | Level 1 | Level 2 | Level 3 | |
Assets: | |||||
Mutual funds - equity securities | $367 | $367 | - | - | |
Mutual funds - debt securities | 298 | 298 | - | - | |
Money market mutual funds | 47 | 47 | - | - | |
Total | $712 | $712 | - | - | |
Note_3_DefiniteLived_Intangibl1
Note 3 - Definite-Lived Intangible Assets and Goodwill: Schedule of Definite-Lived Intangible Assets (Tables) | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
Tables/Schedules | ' | |||||
Schedule of Definite-Lived Intangible Assets | ' | |||||
Definite-lived intangible assets and goodwill consisted of the following as of December 31, 2013 and 2012: | ||||||
December 31, | ||||||
2013 | 2012 | |||||
Weighted Avg. Amortization Period in Years | Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | ||
Class | ||||||
Maintenance and legacy | 10 | $350 | ($281) | $350 | ($250) | |
customers | ||||||
Planetarium shows | 10 | 280 | -234 | 280 | -212 | |
Total | 10 | $630 | ($515) | $630 | ($462) | |
Note_3_DefiniteLived_Intangibl2
Note 3 - Definite-Lived Intangible Assets and Goodwill: Schedule of Future Amortization Expense (Tables) | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
Tables/Schedules | ' | |||||
Schedule of Future Amortization Expense | ' | |||||
Years Ending December 31, | ||||||
Class | 2014 | 2015 | 2016 | 2017 | 2018 | |
Maintenance and legacy customers | $27 | $27 | $15 | - | - | |
Planetarium shows | 20 | 14 | 12 | - | - | |
Total | $47 | $41 | $27 | - | - | |
Note_4_Costs_and_Estimated_Ear1
Note 4 - Costs and Estimated Earnings On Uncompleted Contracts: Costs and Estimated Earnings on Uncompleted Contracts (Tables) | 12 Months Ended | ||
Dec. 31, 2013 | |||
Tables/Schedules | ' | ||
Costs and Estimated Earnings on Uncompleted Contracts | ' | ||
2013 | 2012 | ||
Total accumulated costs and estimated earnings on uncompleted contracts | $28,402 | $15,946 | |
Less total billings on uncompleted contracts | -29,369 | -16,003 | |
($967) | ($57) | ||
The above amounts are reported in the consolidated balance sheets as of December 31: | |||
2013 | 2012 | ||
Costs and estimated earnings in excess of billings on uncompleted contracts | $2,391 | $2,474 | |
Billings in excess of costs and estimated earnings on uncompleted contracts | -3,358 | -2,531 | |
($967) | ($57) |
Note_5_Leases_Schedule_of_Futu
Note 5 - Leases: Schedule of Future Minimum Lease Payments (Tables) | 12 Months Ended | ||
Dec. 31, 2013 | |||
Tables/Schedules | ' | ||
Schedule of Future Minimum Lease Payments | ' | ||
Future minimum lease payments under operating leases that have initial or remaining non-cancelable lease terms in excess of one year are as follows: | |||
Years Ending December 31, | |||
2014 | $134 | ||
2015 | 134 | ||
2016 | 134 | ||
2017 | 134 | ||
2018 | 151 | ||
Thereafter | 2,194 | ||
Total | $2,881 |
Note_6_Employee_Retirement_Ben1
Note 6 - Employee Retirement Benefit Plans: Schedule of Obligations, Plan Assets and Funded Status of Employee Retirement Defined Benefit Plans (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Tables/Schedules | ' | ||||
Schedule of Obligations, Plan Assets and Funded Status of Employee Retirement Defined Benefit Plans | ' | ||||
Information concerning the obligations, plan assets and funded status of employee retirement defined benefit plans are provided below: | |||||
Pension Plan | SERP | ||||
2013 | 2012 | 2013 | 2012 | ||
Changes in benefit obligation | |||||
Projected benefit obligation at beginning of the year | $53,075 | $50,610 | $5,571 | $5,690 | |
Service cost | - | - | - | - | |
Interest cost | 1,591 | 1,870 | 164 | 205 | |
Actuarial (gain) loss | -6,000 | 3,200 | -389 | 216 | |
Benefits paid | -575 | -222 | -500 | -540 | |
Settlement payments | - | -2,383 | - | - | |
Projected benefit obligation at end of the year | $48,091 | $53,075 | $4,846 | $5,571 | |
Pension Plan | SERP | ||||
Changes in plan assets | 2013 | 2012 | 2013 | 2012 | |
Fair value of plan assets at beginning of the year | $24,760 | $23,226 | - | - | |
Actual return on plan assets | 4,785 | 2,655 | - | - | |
Contributions | 103 | 1,484 | 500 | 540 | |
Benefits paid | -575 | -222 | -500 | -540 | |
Settlements payments | - | -2,383 | - | - | |
Fair value of plan assets at end of the year | $29,073 | $24,760 | - | - | |
Note_6_Employee_Retirement_Ben2
Note 6 - Employee Retirement Benefit Plans: Schedule of Amounts Recognized in Other Comprehensive Income (Loss) (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Tables/Schedules | ' | ||||
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) | ' | ||||
Pension Plan | SERP | ||||
2013 | 2012 | 2013 | 2012 | ||
Net Amount Recognized | |||||
Unfunded status | ($19,018) | ($28,315) | ($4,846) | ($5,571) | |
Accrued PBGC insurance premiums | -234 | - | - | - | |
Unrecognized net actuarial loss | 16,261 | 25,913 | 1,455 | 1,912 | |
Unrecognized prior service cost | - | - | -107 | -156 | |
Net amount recognized | ($2,991) | ($2,402) | ($3,498) | ($3,815) |
Note_6_Employee_Retirement_Ben3
Note 6 - Employee Retirement Benefit Plans: Schedule of Amounts Recognized in Balance Sheet (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Tables/Schedules | ' | ||||
Schedule of Amounts Recognized in Balance Sheet | ' | ||||
Pension Plan | SERP | ||||
2013 | 2012 | 2013 | 2012 | ||
Accrued liability | ($19,018) | ($28,315) | ($4,846) | ($5,571) | |
Accrued PBGC insurance premiums | -234 | - | - | - | |
Accumulated other comprehensive loss | 16,261 | 25,913 | 1,348 | 1,756 | |
Net amount recognized | ($2,991) | ($2,402) | ($3,498) | ($3,815) |
Note_6_Employee_Retirement_Ben4
Note 6 - Employee Retirement Benefit Plans: Schedule of Net Periodic Benefit Cost (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Tables/Schedules | ' | ||||
Schedule of Net Periodic Benefit Cost | ' | ||||
Pension Plan | SERP | ||||
2013 | 2012 | 2013 | 2012 | ||
Service cost | - | - | - | - | |
Interest cost | 1,591 | 1,870 | 164 | 205 | |
Expected return on assets | -1,841 | -1,815 | - | - | |
Amortization of actuarial loss | 709 | 682 | 68 | 58 | |
Amortization of prior year service cost | - | - | -48 | -48 | |
Settlement charge | - | 1,163 | - | - | |
Net periodic benefit cost | 459 | 1,900 | 184 | 215 | |
Other pension related expenses | 322 | - | - | - | |
$781 | $1,900 | $184 | $215 |
Note_6_Employee_Retirement_Ben5
Note 6 - Employee Retirement Benefit Plans: Schedule of Allocation of Plan Assets (Tables) | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Tables/Schedules | ' | |||
Schedule of Allocation of Plan Assets | ' | |||
2013 | 2012 | |||
Asset allocation category of plan assets | Target % | Actual % | Actual % | |
Mutual funds - equity securities | 60 | 61 | 59 | |
Mutual funds - debt securities | 25 | 38 | 25 | |
Real estate investment trust | 5 | - | 6 | |
Hedge funds | 10 | - | 9 | |
Cash and cash equivalents | - | 1 | 1 |
Note_6_Employee_Retirement_Ben6
Note 6 - Employee Retirement Benefit Plans: Schedule of Fair Value of Pension Plan Assets (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Tables/Schedules | ' | ||||
Schedule of Fair Value of Pension Plan Assets | ' | ||||
The Pension Plan assets fair value measurements are summarized below: | |||||
Description | 31-Dec-13 | Level 1 | Level 2 | Level 3 | |
Pension Plan Assets: | |||||
Mutual funds - equity securities | $17,871 | $17,871 | - | - | |
Mutual funds - debt securities | 10,924 | 10,924 | - | - | |
Hedge fund | 243 | - | 243 | - | |
Money market mutual funds | 35 | 35 | - | - | |
Total | $29,073 | $28,830 | $243 | - | |
Description | 31-Dec-12 | Level 1 | Level 2 | Level 3 | |
Pension Plan Assets: | |||||
Mutual funds - equity securities | $14,716 | $14,716 | - | - | |
Mutual funds - debt securities | 6,092 | 6,092 | - | - | |
Real estate investment trust | 1,395 | - | - | 1,395 | |
Hedge fund | 2,273 | - | 2,273 | - | |
Money market mutual funds | 284 | 284 | - | - | |
Total | $24,760 | $21,092 | $2,273 | $1,395 | |
The following table provides further details of the Level 3 fair value measurements. | |||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | December 31, | ||||
Pension Plan Assets – Real estate investment trust: | 2013 | 2012 | |||
Beginning balance | $1,395 | $1,630 | |||
Actual return on plan assets – gains | -412 | 102 | |||
Purchases, sales, issuances and settlements (net) | -983 | -337 | |||
Ending balance | - | $1,395 |
Note_6_Employee_Retirement_Ben7
Note 6 - Employee Retirement Benefit Plans: Schedule of Future Benefit Payments (Tables) | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Tables/Schedules | ' | |||
Schedule of Future Benefit Payments | ' | |||
Years Ending | Pension | |||
December 31, | Plan | SERP | ||
2014 | $719 | $531 | ||
2015 | 980 | 551 | ||
2016 | 1,284 | 520 | ||
2017 | 1,568 | 529 | ||
2018 | 1,923 | 497 | ||
2019-2023 | 13,926 | 2,061 |
Note_7_Debt_Schedule_of_Longte
Note 7 - Debt: Schedule of Long-term Debt (Tables) | 12 Months Ended | ||
Dec. 31, 2013 | |||
Tables/Schedules | ' | ||
Schedule of Long-term Debt | ' | ||
Long-term debt consisted of the following as of December 31, 2013 and 2012: | |||
2013 | 2012 | ||
First mortgage note payable due in monthly installments of $23 (interest at 5.75%) through January 1, 2024; payment and rate subject to adjustment every 3 years, next adjustment January 14, 2016 | $2,116 | $2,266 | |
Second mortgage note payable due in monthly installments of $4 (interest at 5.75%) through October 1, 2028; payment and rate subject to adjustment every 5 years, next adjustment October 1, 2018 | 423 | 440 | |
Sale/leaseback financing | 2,818 | 2,609 | |
Total debt | 5,357 | 5,315 | |
Current portion of long-term debt | -2,995 | -167 | |
Long-term debt, net of current portion | $2,362 | $5,148 |
Note_7_Debt_Schedule_of_Maturi
Note 7 - Debt: Schedule of Maturities of Long-term Debt (Tables) | 12 Months Ended | ||
Dec. 31, 2013 | |||
Tables/Schedules | ' | ||
Schedule of Maturities of Long-term Debt | ' | ||
Principal maturities on total debt are as follows: | |||
Years Ending | |||
December 31, | |||
2014 | $2,995 | ||
2015 | 188 | ||
2016 | 199 | ||
2017 | 211 | ||
2018 | 224 | ||
Thereafter | 1,540 | ||
Total debt | $5,357 |
Note_7_Debt_Schedule_of_Sale_L
Note 7 - Debt: Schedule of Sale Leaseback Transactions (Tables) | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
Tables/Schedules | ' | |||||
Schedule of Sale Leaseback Transactions | ' | |||||
The repurchase price for the buildings excluding the Substation for the remaining term of the repurchase option is as follows: | ||||||
Date | ||||||
From | To | Repurchase price | ||||
1-Nov-13 | 31-Oct-14 | $ | 3,028 | |||
Note_8_Income_Taxes_Schedule_o
Note 8 - Income Taxes: Schedule of Effective Income Tax Rate Reconciliation (Tables) | 12 Months Ended | ||
Dec. 31, 2013 | |||
Tables/Schedules | ' | ||
Schedule of Effective Income Tax Rate Reconciliation | ' | ||
2013 | 2012 | ||
Tax (provision) benefit at U.S. federal statutory rate | ($432) | $798 | |
State tax (provision) benefit (net of federal income tax benefit) | -131 | 186 | |
Research and development and foreign tax credits | -630 | - | |
Change in cash surrender value of life insurance | - | -132 | |
Change in valuation allowance attributable to operations | 2,123 | -778 | |
Other, net | -1,027 | -5 | |
Tax (provision) benefit | ($97) | $69 |
Note_8_Income_Taxes_Schedule_o1
Note 8 - Income Taxes: Schedule of Deferred Tax Assets and Liabilities (Tables) | 12 Months Ended | ||
Dec. 31, 2013 | |||
Tables/Schedules | ' | ||
Schedule of Deferred Tax Assets and Liabilities | ' | ||
The tax effects of temporary differences that give rise to significant portions of the deferred income tax assets and liabilities as of December 31, 2013 and 2012 are as follows: | |||
2013 | 2012 | ||
Deferred income tax assets: | |||
Property and equipment, principally due to differences in depreciation | $966 | $840 | |
Inventory reserves and other inventory-related temporary basis differences | 603 | 500 | |
Warranty, vacation, deferred rent and other liabilities | 858 | 849 | |
Retirement liabilities | 2,255 | 1,488 | |
Net operating loss carryforwards | 63,529 | 66,050 | |
Credit carryforwards | 825 | 1,428 | |
Other | 961 | 965 | |
Total deferred income tax assets | 69,997 | 72,120 | |
Less valuation allowance | -69,997 | -72,120 | |
Net deferred income tax assets | - | - | |
Deferred income tax liabilities: | |||
Total deferred income tax liabilities | - | - | |
Net deferred income tax assets and liabilities | - | - |
Note_8_Income_Taxes_Schedule_o2
Note 8 - Income Taxes: Schedule of Worldwide income (loss) before income taxes (Tables) | 12 Months Ended | ||
Dec. 31, 2013 | |||
Tables/Schedules | ' | ||
Schedule of Worldwide income (loss) before income taxes | ' | ||
Worldwide income (loss) before income taxes consisted of the following: | |||
2013 | 2012 | ||
United States | $1,270 | ($2,348) | |
Foreign | - | - | |
Total | $1,270 | ($2,348) |
Note_8_Income_Taxes_Schedule_o3
Note 8 - Income Taxes: Schedule of Components of Income Tax Expense (Benefit) (Tables) | 12 Months Ended | ||
Dec. 31, 2013 | |||
Tables/Schedules | ' | ||
Schedule of Components of Income Tax Expense (Benefit) | ' | ||
Income tax (provision) benefit consisted of the following: | |||
2013 | 2012 | ||
Current | |||
U.S. federal | ($30) | - | |
State | -67 | 69 | |
Foreign | - | - | |
Total | ($97) | $69 | |
Deferred | |||
U.S. federal | ($1,172) | $652 | |
State | -321 | 126 | |
Foreign | -630 | - | |
Total | -2,123 | 778 | |
Valuation allowance (increase) decrease | 2,123 | -778 | |
Total | - | - |
Note_10_Stock_Option_Plan_Sche
Note 10 - Stock Option Plan: Schedule of Stock Option Plan Activity (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Tables/Schedules | ' | ||||
Schedule of Stock Option Plan Activity | ' | ||||
A summary of activity follows (shares in thousands): | |||||
2013 | 2012 | ||||
Weighted- | Weighted- | ||||
Average | Average | ||||
Number | Exercise | Number | Exercise | ||
of Shares | Price | of Shares | Price | ||
Outstanding as of beginning of the year | 1,169 | $3.19 | 1,151 | $3.74 | |
Granted | 151 | 0.03 | 111 | 0.21 | |
Exercised | - | - | - | - | |
Cancelled | -85 | 5.81 | -93 | 6.47 | |
Outstanding as of end of the year | 1,235 | 2.62 | 1,169 | 3.19 | |
Exercisable as of end the year | 977 | 3.26 | 991 | 3.68 | |
Note_10_Stock_Option_Plan_Sche1
Note 10 - Stock Option Plan: Schedule of Stock Options Valuation Assumptions (Tables) | 12 Months Ended | ||
Dec. 31, 2013 | |||
Tables/Schedules | ' | ||
Schedule of Stock Options Valuation Assumptions | ' | ||
The fair value of each option grant is estimated on the date of the grant using the Black-Scholes option-pricing model with the following weighted-average assumptions used for the grants made in 2013 and 2012: | |||
2013 | 2012 | ||
Expected life (in years) | 3.5 | 4 | |
Risk free interest rate | 0.39% | 0.36% | |
Expected volatility | 377% | 396% | |
Dividend yield | - | - |
Note_12_Geographic_Information1
Note 12 - Geographic Information: Schedule of Sales By Geographic Location (Tables) | 12 Months Ended | ||
Dec. 31, 2013 | |||
Tables/Schedules | ' | ||
Schedule of Sales By Geographic Location | ' | ||
The table below presents sales by geographic location: | |||
2013 | 2012 | ||
United States | $14,198 | $13,721 | |
International | 15,385 | 11,187 | |
Total sales | $29,583 | $24,908 |
Note_1_Nature_of_Operations_an8
Note 1 - Nature of Operations and Summary of Significant Accounting Policies: Cash and Cash Equivalents (Details) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Details | ' |
Cash, Uninsured Amount | $4,137 |
Note_1_Nature_of_Operations_an9
Note 1 - Nature of Operations and Summary of Significant Accounting Policies: Restricted Cash (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Details | ' | ' |
Restricted Cash, Noncurrent | $90 | $442 |
Recovered_Sheet1
Note 1 - Nature of Operations and Summary of Significant Accounting Policies: Trade Accounts Receivable: Schedule of Doubtful Receivables During the Year (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Details | ' | ' |
Starting balance | $324 | $470 |
Write-off of accounts receivable | -159 | -89 |
Increase (reduction) in estimated losses on accounts receivable | 112 | -57 |
Ending balance | $277 | $324 |
Recovered_Sheet2
Note 1 - Nature of Operations and Summary of Significant Accounting Policies: Inventories (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Details | ' | ' |
Provision for excess and obsolete inventory | $349 | $409 |
Recovered_Sheet3
Note 1 - Nature of Operations and Summary of Significant Accounting Policies: Inventories: Schedule of Current Inventories (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Details | ' | ' |
Raw Materials | $5,587 | $5,255 |
Work-in-process | 234 | 287 |
Finished goods | 223 | 253 |
Reserve for obsolete inventory | -3,019 | -2,670 |
Total Inventories, net | $3,025 | $3,125 |
Recovered_Sheet4
Note 1 - Nature of Operations and Summary of Significant Accounting Policies: Property and Equipment (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Details | ' | ' |
Depreciation | $528 | $688 |
Recovered_Sheet5
Note 1 - Nature of Operations and Summary of Significant Accounting Policies: Property and Equipment: Property, Plant and Equipment [Table Text Block] (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | Land | Land | Building and Building Improvements | Building and Building Improvements | Building and Building Improvements | Building and Building Improvements | Machinery and Equipment | Machinery and Equipment | Machinery and Equipment | Machinery and Equipment | Office Equipment | Office Equipment | Office Equipment | Office Equipment | ||
Minimum | Maximum | Minimum | Maximum | Minimum | Maximum | |||||||||||
Property, Plant and Equipment, Gross | $18,123 | $18,359 | $2,250 | $2,250 | $9,712 | $9,717 | ' | ' | $5,382 | $5,613 | ' | ' | $779 | $779 | ' | ' |
Property, Plant and Equipment, Useful Life | ' | ' | ' | ' | ' | ' | '5 years | '40 years | ' | ' | '3 years | '8 years | ' | ' | '3 years | '8 years |
Less accumulated depreciation and amortization | -10,718 | -10,624 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net property and equipment | $7,405 | $7,735 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Recovered_Sheet6
Note 1 - Nature of Operations and Summary of Significant Accounting Policies: Warranty Reserve: Schedule of Product Warranty Liability (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Details | ' | ' |
Product Warranty Accrual, Beginning Balance | $145 | $183 |
Change in warranty reserve | 111 | 69 |
Warranty costs | -106 | -107 |
Product Warranty Accrual, Ending Balance | $150 | $145 |
Recovered_Sheet7
Note 1 - Nature of Operations and Summary of Significant Accounting Policies: Revenue Recognition: Schedule of Revenue by Recognition Method (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Sales | $29,583 | $24,908 |
Contracts Accounted for under Percentage of Completion | ' | ' |
Sales | 14,831 | 14,956 |
Completed Contract | ' | ' |
Sales | 13,102 | 8,429 |
Other | ' | ' |
Sales | $1,650 | $1,523 |
Recovered_Sheet8
Note 1 - Nature of Operations and Summary of Significant Accounting Policies: Other Comprehensive Loss: Schedule of Accumulated Other Comprehensive Income (Loss) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Details | ' | ' |
Additional minimum pension liability | ($17,608) | ($27,669) |
Net unrealized holding gains (losses) on marketable securities | -1 | 5 |
Total accumulated other comprehensive loss | ($17,609) | ($27,664) |
Recovered_Sheet9
Note 1 - Nature of Operations and Summary of Significant Accounting Policies: Liquidity (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | |||
Pension and retirement obligations, net of current portion | $23,567 | $33,369 | ' |
Total stockholders' deficit | 13,398 | 24,644 | 21,865 |
Pension Plans, Defined Benefit | ' | ' | ' |
Pension and retirement obligations, net of current portion | $19,018 | ' | ' |
Note_2_Marketable_Securities_D
Note 2 - Marketable Securities (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Details | ' | ' |
Marketable Securities, Realized Gain (Loss) | $27 | $7 |
Note_2_Marketable_Securities_S2
Note 2 - Marketable Securities: Schedule of Marketable Securities (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Adjusted Cost | $230 | $707 |
Unrealized Gains | ' | 29 |
Unrealized Losses | -1 | -24 |
Fair Value | 229 | 712 |
Debt Securities | ' | ' |
Adjusted Cost | 184 | 293 |
Unrealized Gains | ' | 5 |
Unrealized Losses | -1 | ' |
Fair Value | 183 | 298 |
Money Market Funds | ' | ' |
Adjusted Cost | 46 | 47 |
Fair Value | 46 | 47 |
Equity Securities | ' | ' |
Adjusted Cost | ' | 367 |
Unrealized Gains | ' | 24 |
Unrealized Losses | ' | -24 |
Fair Value | ' | $367 |
Note_2_Marketable_Securities_S3
Note 2 - Marketable Securities: Schedule of Marketable Securities Measured at Fair Value (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Marketable Securities | $229 | $712 |
Debt Securities | ' | ' |
Marketable Securities | 183 | 298 |
Money Market Funds | ' | ' |
Marketable Securities | 46 | 47 |
Equity Securities | ' | ' |
Marketable Securities | ' | 367 |
Fair Value, Inputs, Level 1 | ' | ' |
Marketable Securities | 229 | 712 |
Fair Value, Inputs, Level 1 | Debt Securities | ' | ' |
Marketable Securities | 183 | 298 |
Fair Value, Inputs, Level 1 | Money Market Funds | ' | ' |
Marketable Securities | 46 | 47 |
Fair Value, Inputs, Level 1 | Equity Securities | ' | ' |
Marketable Securities | ' | 367 |
Fair Value, Inputs, Level 2 | ' | ' |
Marketable Securities | ' | ' |
Fair Value, Inputs, Level 3 | ' | ' |
Marketable Securities | ' | ' |
Note_3_DefiniteLived_Intangibl3
Note 3 - Definite-Lived Intangible Assets and Goodwill: Schedule of Definite-Lived Intangible Assets (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Weighted Avg. Amortization Period in Years | '10 years | ' |
Gross Carrying Amount | $630 | $630 |
Accumulated Amortization | -515 | -462 |
Maintenance And Legacy Customers | ' | ' |
Weighted Avg. Amortization Period in Years | '10 years | ' |
Gross Carrying Amount | 350 | 350 |
Accumulated Amortization | -281 | -250 |
Planetarium Shows | ' | ' |
Weighted Avg. Amortization Period in Years | '10 years | ' |
Gross Carrying Amount | 280 | 280 |
Accumulated Amortization | ($234) | ($212) |
Note_3_DefiniteLived_Intangibl4
Note 3 - Definite-Lived Intangible Assets and Goodwill (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2006 |
Details | ' | ' | ' |
Amortization of Intangible Assets | $53 | $56 | ' |
Goodwill | 635 | 635 | ' |
Payments to Acquire Businesses, Gross | ' | ' | $2,884 |
Note_3_DefiniteLived_Intangibl5
Note 3 - Definite-Lived Intangible Assets and Goodwill: Schedule of Future Amortization Expense (Details) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
2014 | $47 |
2015 | 41 |
2016 | 27 |
2017 | ' |
2018 | ' |
Maintenance And Legacy Customers | ' |
2014 | 27 |
2015 | 27 |
2016 | 15 |
Planetarium Shows | ' |
2014 | 20 |
2015 | 14 |
2016 | 12 |
2017 | ' |
2018 | ' |
Note_4_Costs_and_Estimated_Ear2
Note 4 - Costs and Estimated Earnings On Uncompleted Contracts: Costs and Estimated Earnings on Uncompleted Contracts (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Details | ' | ' |
Total accumulated costs and estimated earnings on uncompleted contracts | $28,402 | $15,946 |
Less total billings on uncompleted contracts | -29,369 | -16,003 |
Total, net | -967 | -57 |
Costs and estimated earnings in excess of billings on uncompleted contracts | 2,391 | 2,474 |
Billings in excess of costs and estimated earnings on uncompleted contracts | -3,358 | -2,531 |
Total, net | ($967) | ($57) |
Note_5_Leases_Details
Note 5 - Leases (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Details | ' | ' |
Operating Leases, Rent Expense | $161 | $172 |
Note_5_Leases_Schedule_of_Futu1
Note 5 - Leases: Schedule of Future Minimum Lease Payments (Details) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Details | ' |
2014 | $134 |
2015 | 134 |
2016 | 134 |
2017 | 134 |
2018 | 151 |
Thereafter | 2,194 |
Total | $2,881 |
Note_6_Employee_Retirement_Ben8
Note 6 - Employee Retirement Benefit Plans (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
401(k) Matching Contribution by Employer | $175 | $172 |
Pension | 965 | 2,115 |
Actuarial gain (loss) | 9,653 | -514 |
Pension Plans, Defined Benefit, Actuarial Gain Loss Projected, Next 12 months | 406 | ' |
Assumptions Used Calculating Benefit Obligation, Discount Rate | 4.80% | 3.10% |
Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | 3.10% | 3.80% |
Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Return on Assets | 8.00% | ' |
Lien against assets of the company for unpaid pension contributions | 2,571 | ' |
Estimated Future Employer Contributions in Next Fiscal Year | 4,100 | ' |
Insurance Premium Due to the PBGC | ' | ' |
Other pension related expenses | 234 | ' |
Federal Excise Tax | ' | ' |
Other pension related expenses | $88 | ' |
Note_6_Employee_Retirement_Ben9
Note 6 - Employee Retirement Benefit Plans: Schedule of Obligations, Plan Assets and Funded Status of Employee Retirement Defined Benefit Plans (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Changes in benefit obligation | ' | ' |
Contributions by Employer | $175 | $172 |
Actuarial (gain) loss | 9,653 | -514 |
Contributions by Employer | 175 | 172 |
Pension Plans, Defined Benefit | ' | ' |
Changes in benefit obligation | ' | ' |
Projected benefit obligation at beginning of the year | 53,075 | 50,610 |
Beginning balance | 24,760 | 23,226 |
Actual Return on Plan Assets | 4,785 | 2,655 |
Contributions by Employer | 103 | 1,484 |
Benefits Paid | -575 | -222 |
Ending balance | 29,073 | 24,760 |
Service cost | ' | ' |
Interest cost | 1,591 | 1,870 |
Actuarial (gain) loss | -6,000 | 3,200 |
Benefits Paid | -575 | -222 |
Settlement Payments | ' | -2,383 |
Projected benefit obligation at end of the year | 48,091 | 53,075 |
Beginning balance | 24,760 | 23,226 |
Actual Return on Plan Assets | 4,785 | 2,655 |
Contributions by Employer | 103 | 1,484 |
Benefits Paid | -575 | -222 |
Ending balance | 29,073 | 24,760 |
Supplemental Executive Retirement Plan | ' | ' |
Changes in benefit obligation | ' | ' |
Projected benefit obligation at beginning of the year | 5,571 | 5,690 |
Contributions by Employer | 500 | 540 |
Benefits Paid | -500 | -540 |
Service cost | ' | ' |
Interest cost | 164 | 205 |
Actuarial (gain) loss | -389 | 216 |
Benefits Paid | -500 | -540 |
Projected benefit obligation at end of the year | 4,846 | 5,571 |
Contributions by Employer | 500 | 540 |
Benefits Paid | ($500) | ($540) |
Recovered_Sheet10
Note 6 - Employee Retirement Benefit Plans: Schedule of Amounts Recognized in Other Comprehensive Income (Loss) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Pension Plans, Defined Benefit | ' | ' |
Net Amount Recognized | ' | ' |
Unfunded status | ($19,018) | ($28,315) |
Accrued PBGC insurance premiums | -234 | ' |
Unrecognized net actuarial loss | 16,261 | 25,913 |
Net amount recognized | -2,991 | -2,402 |
Supplemental Executive Retirement Plan | ' | ' |
Net Amount Recognized | ' | ' |
Unfunded status | -4,846 | -5,571 |
Unrecognized net actuarial loss | 1,455 | 1,912 |
Unrecognized prior service cost | -107 | -156 |
Net amount recognized | ($3,498) | ($3,815) |
Recovered_Sheet11
Note 6 - Employee Retirement Benefit Plans: Schedule of Amounts Recognized in Balance Sheet (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Accumulated other comprehensive loss | $17,609 | $27,664 |
Pension Plans, Defined Benefit | ' | ' |
Accrued liability | -19,018 | -28,315 |
Accrued PBGC insurance premiums | -234 | ' |
Accumulated other comprehensive loss | 16,261 | 25,913 |
Net amount recognized | -2,991 | -2,402 |
Supplemental Executive Retirement Plan | ' | ' |
Accrued liability | -4,846 | -5,571 |
Accumulated other comprehensive loss | 1,348 | 1,756 |
Net amount recognized | ($3,498) | ($3,815) |
Recovered_Sheet12
Note 6 - Employee Retirement Benefit Plans: Schedule of Net Periodic Benefit Cost (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Pension Expenses for the period | $965 | $2,115 |
Pension Plans, Defined Benefit | ' | ' |
Service cost | ' | ' |
Interest cost | 1,591 | 1,870 |
Expected return on assets | -1,841 | -1,815 |
Amortization of actuarial loss | 709 | 682 |
Settlement charge | ' | 1,163 |
Net periodic benefit expense | 459 | 1,900 |
Other pension related expenses | 322 | ' |
Pension Expenses for the period | 781 | 1,900 |
Supplemental Executive Retirement Plan | ' | ' |
Service cost | ' | ' |
Interest cost | 164 | 205 |
Amortization of actuarial loss | 68 | 58 |
Amortization of prior year service cost | -48 | -48 |
Net periodic benefit expense | 184 | 215 |
Pension Expenses for the period | $184 | $215 |
Recovered_Sheet13
Note 6 - Employee Retirement Benefit Plans: Schedule of Allocation of Plan Assets (Details) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Equity Securities | ' | ' |
Defined Benefit Plan, Target Plan Asset Allocations | 60.00% | ' |
Defined Benefit Plan, Actual Plan Asset Allocations | 61.00% | 59.00% |
Debt Securities | ' | ' |
Defined Benefit Plan, Target Plan Asset Allocations | 25.00% | ' |
Defined Benefit Plan, Actual Plan Asset Allocations | 38.00% | 25.00% |
Real Estate | ' | ' |
Defined Benefit Plan, Target Plan Asset Allocations | 5.00% | ' |
Defined Benefit Plan, Actual Plan Asset Allocations | ' | 6.00% |
Hedge Funds | ' | ' |
Defined Benefit Plan, Target Plan Asset Allocations | 10.00% | ' |
Defined Benefit Plan, Actual Plan Asset Allocations | ' | 9.00% |
Cash and Cash Equivalents | ' | ' |
Defined Benefit Plan, Actual Plan Asset Allocations | 1.00% | 1.00% |
Recovered_Sheet14
Note 6 - Employee Retirement Benefit Plans: Schedule of Fair Value of Pension Plan Assets (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Fair Value, Inputs, Level 3 | ' | ' |
Fair value of plan assets at beginning of the year | ' | $1,395 |
Beginning balance | 1,395 | 1,630 |
Actual return on plan assets - gains | -412 | 102 |
Purchases, sales, issuances and settlements (net) | -983 | -337 |
Ending balance | ' | 1,395 |
Pension Plans, Defined Benefit | ' | ' |
Fair value of plan assets at beginning of the year | 29,073 | 24,760 |
Beginning balance | 24,760 | 23,226 |
Actual return on plan assets - gains | 4,785 | 2,655 |
Ending balance | 29,073 | 24,760 |
Pension Plans, Defined Benefit | Equity Securities | ' | ' |
Fair value of plan assets at beginning of the year | 17,871 | 14,716 |
Ending balance | 17,871 | 14,716 |
Pension Plans, Defined Benefit | Debt Securities | ' | ' |
Fair value of plan assets at beginning of the year | 10,924 | 6,092 |
Ending balance | 10,924 | 6,092 |
Pension Plans, Defined Benefit | Hedge Funds | ' | ' |
Fair value of plan assets at beginning of the year | 243 | 2,273 |
Ending balance | 243 | 2,273 |
Pension Plans, Defined Benefit | Money Market Funds | ' | ' |
Fair value of plan assets at beginning of the year | 35 | 284 |
Ending balance | 35 | 284 |
Pension Plans, Defined Benefit | Real Estate | ' | ' |
Fair value of plan assets at beginning of the year | ' | 1,395 |
Ending balance | ' | 1,395 |
Pension Plans, Defined Benefit | Fair Value, Inputs, Level 1 | ' | ' |
Fair value of plan assets at beginning of the year | 28,830 | 21,092 |
Ending balance | 28,830 | 21,092 |
Pension Plans, Defined Benefit | Fair Value, Inputs, Level 1 | Equity Securities | ' | ' |
Fair value of plan assets at beginning of the year | 17,871 | 14,716 |
Ending balance | 17,871 | 14,716 |
Pension Plans, Defined Benefit | Fair Value, Inputs, Level 1 | Debt Securities | ' | ' |
Fair value of plan assets at beginning of the year | 10,924 | 6,092 |
Ending balance | 10,924 | 6,092 |
Pension Plans, Defined Benefit | Fair Value, Inputs, Level 1 | Money Market Funds | ' | ' |
Fair value of plan assets at beginning of the year | 35 | 284 |
Ending balance | 35 | 284 |
Pension Plans, Defined Benefit | Fair Value, Inputs, Level 2 | ' | ' |
Fair value of plan assets at beginning of the year | 243 | 2,273 |
Ending balance | 243 | 2,273 |
Pension Plans, Defined Benefit | Fair Value, Inputs, Level 2 | Hedge Funds | ' | ' |
Fair value of plan assets at beginning of the year | 243 | 2,273 |
Ending balance | 243 | 2,273 |
Pension Plans, Defined Benefit | Fair Value, Inputs, Level 3 | ' | ' |
Fair value of plan assets at beginning of the year | ' | 1,395 |
Ending balance | ' | 1,395 |
Pension Plans, Defined Benefit | Fair Value, Inputs, Level 3 | Real Estate | ' | ' |
Fair value of plan assets at beginning of the year | ' | 1,395 |
Ending balance | ' | $1,395 |
Recovered_Sheet15
Note 6 - Employee Retirement Benefit Plans: Schedule of Future Benefit Payments (Details) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Pension Plans, Defined Benefit | ' |
2014 | $719 |
2014 | 980 |
2016 | 1,284 |
2017 | 1,568 |
2018 | 1,923 |
2019-2023 | 13,926 |
Supplemental Executive Retirement Plan | ' |
2014 | 531 |
2014 | 551 |
2016 | 520 |
2017 | 529 |
2018 | 497 |
2019-2023 | $2,061 |
Note_7_Debt_Schedule_of_Longte1
Note 7 - Debt: Schedule of Long-term Debt (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Total debt | $5,357 | $5,315 |
Current portion of long-term debt | -2,995 | -167 |
Long-term debt, net of current portion | 2,362 | 5,148 |
First Mortgage Note Payable | ' | ' |
Debt Instrument, Periodic Payment | 23 | ' |
Debt Instrument, Interest Rate, Effective Percentage | 5.75% | ' |
Debt Instrument, Maturity Date | 14-Jan-16 | ' |
Total debt | 2,116 | 2,266 |
Second Mortgage Note Payable | ' | ' |
Debt Instrument, Periodic Payment | 4 | ' |
Debt Instrument, Interest Rate, Effective Percentage | 5.75% | ' |
Debt Instrument, Maturity Date | 1-Oct-28 | ' |
Total debt | 423 | 440 |
Sale/leasback financing | ' | ' |
Total debt | $2,818 | $2,609 |
Note_7_Debt_Schedule_of_Maturi1
Note 7 - Debt: Schedule of Maturities of Long-term Debt (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Details | ' | ' |
2014 | $2,995 | ' |
2015 | 188 | ' |
2016 | 199 | ' |
2017 | 211 | ' |
2018 | 224 | ' |
Thereafter | 1,540 | ' |
Total debt | $5,357 | $5,315 |
Note_7_Debt_Details
Note 7 - Debt (Details) (USD $) | 12 Months Ended | 12 Months Ended | 12 Months Ended | ||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Jan. 14, 2004 | Dec. 31, 2013 | Dec. 31, 2013 | Sep. 11, 2008 |
Land | Building | First Mortgage Note Payable | First Mortgage Note Payable | First Mortgage Note Payable | Second Mortgage Note Payable | Second Mortgage Note Payable | |||
Subsequent Event | |||||||||
Debt Instrument, Face Amount | ' | ' | ' | ' | ' | $3,200 | ' | ' | $500 |
Long-term Debt, Maturities, Repayment Terms | ' | ' | ' | ' | 'The First Mortgage Note requires repayment in monthly installments of principal and interest over 20 years. On each third anniversary of the First Mortgage Note, the interest rate is adjusted to the greater of 5.75% or 3% over the Three-Year Constant Maturity Treasury Rate published by the United States Federal Reserve (“3YCMT”). | ' | ' | 'The Second Mortgage Note requires repayment in monthly installments of principal and interest over 20 years. On each fifth anniversary of the Second Mortgage Note, the interest rate is adjusted to the greater of 5.75% or 3% over 3YCMT | ' |
Debt Instrument, Interest Rate, Basis for Effective Rate | ' | ' | ' | ' | ' | ' | 'On January 15, 2014, the 3YCMT was 0.81% and the interest rate on the First Mortgage Note remained at 5.75% per annum. As a result, the monthly installment amount remained at $23 | 'On September 11, 2013, the fifth anniversary of the Second Mortgage Note, the 3YCMT was 0.88%. As a result, interest continues at 5.75% until possible adjustment on the next 5 year anniversary. The monthly installment also remains unchanged at $4. | ' |
Debt Instrument, Collateral | 'The Mortgage Notes are secured by the real property occupied by Spitz pursuant to a Mortgage and Security Agreement. The real property had a carrying value of $4,405 as of December 31, 2013. The Mortgage Notes are guaranteed by E&S. | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Maximum Borrowing Capacity | 1,100 | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Interest Rate Description | 'Interest is charged on amounts borrowed at the Wall Street Journal Prime Rate. | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Collateral | 'Borrowings under the Credit Agreement are secured by Spitz real and personal property and all of the outstanding shares of Spitz common stock. | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Amount Outstanding | 0 | 0 | ' | ' | ' | ' | ' | ' | ' |
Sale Leaseback Transaction, Date | 'November 2009 | ' | ' | ' | ' | ' | ' | ' | ' |
Sale Leaseback Transaction, Gross Proceeds | 2,500 | ' | ' | ' | ' | ' | ' | ' | ' |
Sale Leaseback Transaction, Annual Rental Payments | 501 | ' | 126 | 375 | ' | ' | ' | ' | ' |
Sale Leaseback Transaction, Lease Terms | 'The sublease agreement has a term of 5 years with an option for two subsequent 5 year renewal periods. The agreement provided the Company with a 5-year option to repurchase all of the buildings under lease or only one of the buildings known as the Substation along with the lease interest in the land. | ' | ' | ' | ' | ' | ' | ' | ' |
Sale Leaseback Transaction, Net Proceeds | 2,329 | ' | ' | ' | ' | ' | ' | ' | ' |
Sale Leaseback Transaction, Amount Due under Financing Arrangement | 125 | ' | ' | ' | ' | ' | ' | ' | ' |
Sale Leaseback Transaction, Other Payments Required | 15 | ' | ' | ' | ' | ' | ' | ' | ' |
Sale Leaseback Transaction, Monthly Rental Payments | $31 | ' | ' | ' | ' | ' | ' | ' | ' |
Sale Leaseback Transaction, Imputed Interest Rate | 20.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Sale Leaseback Transaction, Other Information | 'In the event that E&S exercises the option to repurchase the property sooner than the end of the 5-year term, the difference between the carrying balance of the debt and the repurchase cost would be recorded as a prepayment premium or discount on the payoff of the debt balance. The cash payment required to repurchase the property on December 31, 2012 was $3,028 consisting of $3,153 repurchase price under the agreement less a credit for the $125 security deposit. Accordingly, if the Company had exercised its option to repurchase the property on December 31, 2013, it would have recorded a prepayment premium of approximately 7% in the amount of $210 over the $2,818 carrying balance of the debt. | ' | ' | ' | ' | ' | ' | ' | ' |
Note_7_Debt_Schedule_of_Sale_L1
Note 7 - Debt: Schedule of Sale Leaseback Transactions (Details) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 |
Details | ' |
Repurchase Price for the buildings excluding the Substation | $3,028 |
Note_8_Income_Taxes_Details
Note 8 - Income Taxes (Details) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 34.00% |
Minimum | ' |
Operating Loss Carryforwards, Expiration Date | 31-Dec-19 |
Maximum | ' |
Operating Loss Carryforwards, Expiration Date | 31-Dec-32 |
Internal Revenue Service (IRS) | ' |
Operating Loss Carryforwards | 165,300 |
Internal Revenue Service (IRS) | Expired | ' |
Operating Loss Carryforwards | 2,541 |
Internal Revenue Service (IRS) | Expire 2014-2016 | ' |
Operating Loss Carryforwards | 800 |
State and Local Jurisdiction | Expire on Various Dates | ' |
Operating Loss Carryforwards | 144,600 |
Note_8_Income_Taxes_Schedule_o4
Note 8 - Income Taxes: Schedule of Effective Income Tax Rate Reconciliation (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Details | ' | ' |
Tax (provision) benefit at U.S. federal statutory rate | ($432) | $798 |
State tax (provision) benefit (net of federal income tax benefit) | -131 | 186 |
Research and development and foreign tax credits | -630 | ' |
Change in cash surrender value of life insurance | ' | -132 |
Change in valuation allowance attributable to operations | 2,123 | -778 |
Other, net | -1,027 | -5 |
Income tax (provision) benefit | ($97) | $69 |
Note_8_Income_Taxes_Schedule_o5
Note 8 - Income Taxes: Schedule of Deferred Tax Assets and Liabilities (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Deferred income tax assets: | ' | ' |
Property and equipment, principally due to differences in depreciation | $966 | $840 |
Inventory reserves and other inventory-related temporary basis differences | 603 | 500 |
Warranty, vacation, deferred rent and other liabilities | 858 | 849 |
Retirement liabilities | 2,255 | 1,488 |
Net operating loss carryforwards | 63,529 | 66,050 |
Credit carryforwards | 825 | 1,428 |
Other | 961 | 965 |
Total deferred income tax assets | 69,997 | 72,120 |
Less valuation allowance | -69,997 | -72,120 |
Deferred income tax liabilities: | ' | ' |
Total deferred income tax liabilities | ' | ' |
Net deferred income tax assets and liabilities | ' | ' |
Note_8_Income_Taxes_Schedule_o6
Note 8 - Income Taxes: Schedule of Worldwide income (loss) before income taxes (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Details | ' | ' |
United States | $1,270 | ($2,348) |
Total | $1,270 | ($2,348) |
Note_8_Income_Taxes_Schedule_o7
Note 8 - Income Taxes: Schedule of Components of Income Tax Expense (Benefit) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Current | ' | ' |
U.S. federal | ($30) | ' |
State | -67 | 69 |
Income tax (provision) benefit | -97 | 69 |
Deferred | ' | ' |
U.S. federal | -1,172 | 652 |
State | -321 | 126 |
Foreign | -630 | ' |
Total | -2,123 | 778 |
Valuation allowance (increase) decrease | 2,123 | -778 |
Total | ' | ' |
Note_9_Commitments_and_Conting1
Note 9 - Commitments and Contingencies (Details) (USD $) | 12 Months Ended | 1 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2011 | Jan. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 |
Subsequent Event | Other Assets | Other Assets | Expires 2014 | Expires 2015 | |||
Letters of Credit Outstanding, Amount | $1,110 | ' | ' | ' | ' | $1,020 | $90 |
Restricted Cash and Cash Equivalents | ' | ' | ' | 90 | 442 | ' | ' |
Compensation paid for substation | 231 | ' | ' | ' | ' | ' | ' |
Reduction in buy back option | ' | 152 | ' | ' | ' | ' | ' |
Value of the substation | 362 | ' | ' | ' | ' | ' | ' |
Additional compensation from increase in value of substation | 131 | ' | ' | ' | ' | ' | ' |
Proceeds from Legal Settlements | ' | ' | $22 | ' | ' | ' | ' |
Note_10_Stock_Option_Plan_Deta
Note 10 - Stock Option Plan (Details) (USD $) | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Options, Granted, Weighted Average Grant Date Fair Value | $0.03 | $0.21 |
Options exercisable, weighted average remaining contractual term | '3 years 6 months | '3 years 10 months 24 days |
Options outstanding, weighted average remaining contractual term | '4 years 7 months 6 days | '4 years 7 months 6 days |
Total unrecognized share-based compensation cost | $6 | ' |
Unrecognized share-based compensation cost, weighted average period to be recognized | '2 years | ' |
Allocated Share-based Compensation Expense | $18 | $33 |
2004 Stock Incentive Plan Of Evans Sutherland Computer Corporation | ' | ' |
Plan Description | 'In 2004, shareholders approved the adoption of the 2004 Stock Incentive Plan of Evans & Sutherland Computer Corporation (“2004 Plan”), which expires in 2014. The 2004 Plan is a stock incentive plan that provides for the grant of options and restricted stock awards to employees and for the grant of options to non-employee directors. Under the 2004 Plan non-employee directors may receive an annual option grant for no more than 10,000 shares. New non-employee directors may receive an option grant for no more than 10,000 shares upon their appointment or election. In addition, with the adoption of this plan no additional options can be issued under any of the prior stock-based plans. The 2004 Plan establishes a minimum exercise price for options of 110% of fair market value on the date of grant. | ' |
Shares authorized for future grant | 1,539,113 | ' |
Note_10_Stock_Option_Plan_Sche2
Note 10 - Stock Option Plan: Schedule of Stock Option Plan Activity (Details) (USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Details | ' | ' |
Outstanding at beginning of year | 1,169 | 1,151 |
Outstanding at beginning of year, weighted average exercise price | $3.19 | $3.74 |
Granted | 151 | 111 |
Granted, weighted average exercise price | $0.03 | $0.21 |
Exercised | ' | ' |
Exercised, weighted average exercise price | ' | ' |
Cancelled | -85 | -93 |
Cancelled, weighted average exercise price | $5.81 | $6.47 |
Outstanding at end of the period | 1,235 | 1,169 |
Outstanding at beginning of year, weighted average exercise price | $2.62 | $3.19 |
Exercisable at end of the year | 977 | 991 |
Exercisable at end of the period, weighted average exercise price | $3.26 | $3.68 |
Note_10_Stock_Option_Plan_Sche3
Note 10 - Stock Option Plan: Schedule of Stock Options Valuation Assumptions (Details) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Details | ' | ' |
Fair Value Assumptions, Method Used | 'Black-Scholes option-pricing model | ' |
Expected life (in years) | '3 years 6 months | '4 years |
Risk-free interest rate | 0.39% | 0.36% |
Expected Volatility | 377.00% | 396.00% |
Note_11_Preferred_Stock_Detail
Note 11 - Preferred Stock (Details) | Dec. 31, 2013 | Dec. 31, 2012 |
Preferred Stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred Stock, shares outstanding | 0 | 0 |
Preferred Class A | ' | ' |
Preferred Stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred Stock, shares outstanding | 0 | 0 |
Preferred Class B | ' | ' |
Preferred Stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred Stock, shares outstanding | 0 | 0 |
Note_12_Geographic_Information2
Note 12 - Geographic Information: Schedule of Sales By Geographic Location (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Sales | $29,583 | $24,908 |
UNITED STATES | ' | ' |
Sales | 14,198 | 13,721 |
International | ' | ' |
Sales | $15,385 | $11,187 |
Note_13_Significant_Customers_
Note 13 - Significant Customers (Details) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Customer Concentration Risk | ' | ' |
Concentration Risk, Percentage | 0.00% | 0.00% |
Accounts Receivable | Customer A | ' | ' |
Concentration Risk, Percentage | 11.00% | 13.00% |
Accounts Receivable | Customer B | ' | ' |
Concentration Risk, Percentage | 30.00% | ' |
Costs and Estimated Earnings in Excess of Billings | Customer A | ' | ' |
Concentration Risk, Percentage | 16.00% | ' |
Costs and Estimated Earnings in Excess of Billings | Customer C | ' | ' |
Concentration Risk, Percentage | 16.00% | ' |
Costs and Estimated Earnings in Excess of Billings | Customer D | ' | ' |
Concentration Risk, Percentage | 14.00% | ' |
Costs and Estimated Earnings in Excess of Billings | Customer E | ' | ' |
Concentration Risk, Percentage | 10.00% | ' |
Costs and Estimated Earnings in Excess of Billings | Customer F | ' | ' |
Concentration Risk, Percentage | ' | 21.00% |
Costs and Estimated Earnings in Excess of Billings | Customer G | ' | ' |
Concentration Risk, Percentage | ' | 11.00% |
Costs and Estimated Earnings in Excess of Billings | Customer H | ' | ' |
Concentration Risk, Percentage | ' | 10.00% |