Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Mar. 12, 2019 | Jun. 30, 2018 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | LGL GROUP INC | ||
Entity Central Index Key | 0000061004 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Public Float | $ 20,791,812 | ||
Entity Common Stock, Shares Outstanding | 4,831,178 | ||
Document Fiscal Year Focus | 2018 | ||
Document Fiscal Period Focus | FY | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Entity Small Business | true | ||
Entity Shell Company | false | ||
Entity Emerging Growth Company | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Current Assets: | ||
Cash and cash equivalents | $ 15,508 | $ 13,250 |
Marketable securities | 3,775 | 3,803 |
Accounts receivable, net of allowances of $40 and $35, respectively | 3,394 | 3,393 |
Inventories, net | 4,466 | 3,875 |
Prepaid expenses and other current assets | 242 | 229 |
Total Current Assets | 27,385 | 24,550 |
Property, Plant and Equipment | ||
Land | 536 | 536 |
Buildings and improvements | 4,029 | 3,973 |
Machinery and equipment | 17,012 | 16,974 |
Gross property, plant and equipment | 21,577 | 21,483 |
Less: accumulated depreciation | (19,491) | (19,304) |
Net property, plant and equipment | 2,086 | 2,179 |
Intangible assets, net | 477 | 552 |
Deferred income taxes, net | 127 | 173 |
Other assets | 101 | |
Total Assets | 30,075 | 27,555 |
Current Liabilities: | ||
Accounts payable | 1,418 | 1,477 |
Accrued compensation and commissions expense | 1,143 | 872 |
Other accrued expenses | 191 | 278 |
Total Current Liabilities | 2,752 | 2,627 |
Commitments and Contingencies (Note J) | ||
Stockholders' Equity | ||
Common stock, $0.01 par value - 10,000,000 shares authorized; 4,912,762 shares issued and 4,831,178 shares outstanding at December 31, 2018, and 4,774,477 shares issued and 4,692,893 shares outstanding at December 31, 2017 | 49 | 47 |
Additional paid-in capital | 41,023 | 40,035 |
Accumulated deficit | (13,169) | (14,609) |
Treasury stock, 81,584 shares held in treasury at cost at December 31, 2018 and 2017 | (580) | (580) |
Accumulated other comprehensive income | 35 | |
Total Stockholders' Equity | 27,323 | 24,928 |
Total Liabilities and Stockholders' Equity | $ 30,075 | $ 27,555 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Current Assets: | ||
Accounts receivable, allowances | $ 40 | $ 35 |
Stockholders' Equity | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Common stock, shares issued (in shares) | 4,912,762 | 4,774,477 |
Common stock, shares outstanding (in shares) | 4,831,178 | 4,692,893 |
Treasury stock, (in shares) | 81,584 | 81,584 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | ||
REVENUES | $ 24,870 | $ 22,402 |
Type of Revenue [Extensible List] | us-gaap:ProductMember | us-gaap:ProductMember |
Costs and expenses: | ||
Manufacturing cost of sales | $ 15,211 | $ 14,661 |
Engineering, selling and administrative | 8,229 | 7,465 |
OPERATING INCOME | 1,430 | 276 |
Other Income (Expense): | ||
Interest income (expense), net | 2 | (11) |
Other income (expense), net | 138 | (46) |
Total Other Income (Expense), net | 140 | (57) |
INCOME BEFORE INCOME TAXES | 1,570 | 219 |
Income tax provision | 165 | 102 |
NET INCOME | $ 1,405 | $ 117 |
Basic per share information: | ||
Weighted average number of shares used in basic earnings per share calculation | 4,748,609 | 2,929,641 |
Basic net income per share | $ 0.30 | $ 0.04 |
Diluted per share information: | ||
Weighted average number of shares used in diluted earnings per share calculation | 4,875,031 | 3,035,104 |
Diluted net income per share | $ 0.29 | $ 0.04 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
NET INCOME | $ 1,405 | $ 117 |
Other comprehensive income: | ||
Unrealized gain on available-for-sale securities, net | 38 | |
Total other comprehensive income | 38 | |
COMPREHENSIVE INCOME | $ 1,405 | $ 155 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholder's Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
Balance at Dec. 31, 2016 | $ 13,891 | $ 27 | $ 29,173 | $ (14,726) | $ (580) | $ (3) |
Balance (in shares) at Dec. 31, 2016 | 2,675,465 | |||||
Net income | 117 | 117 | ||||
Other comprehensive income | 38 | 38 | ||||
Stock-based compensation | 88 | 88 | ||||
Stock-based compensation (in shares) | 10,830 | |||||
Issuance of shares, net of issuance costs | 10,794 | $ 20 | 10,774 | |||
Issuance of shares, net of issuance costs (in shares) | 2,006,598 | |||||
Balance at Dec. 31, 2017 | $ 24,928 | $ 47 | 40,035 | (14,609) | (580) | 35 |
Balance (in shares) at Dec. 31, 2017 | 4,692,893 | 4,692,893 | ||||
Net income | $ 1,405 | 1,405 | ||||
Cumulative effect adjustment from adoption of Accounting Standards Update | ASU 2016-01 [Member] | 35 | $ (35) | ||||
Exercise of stock options | $ 27 | 27 | ||||
Exercise of stock options (in shares) | 9,376 | 9,376 | ||||
Repurchase of shares exercised | (1,200) | |||||
Stock-based compensation | $ 64 | 64 | ||||
Stock-based compensation (in shares) | 6,516 | 6,516 | ||||
Warrant dividend exercise | $ 927 | $ 2 | 925 | |||
Warrant dividend exercise (in shares) | 123,593 | |||||
Issuance costs for rights offering | (28) | (28) | ||||
Balance at Dec. 31, 2018 | $ 27,323 | $ 49 | $ 41,023 | $ (13,169) | $ (580) | |
Balance (in shares) at Dec. 31, 2018 | 4,831,178 | 4,831,178 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
OPERATING ACTIVITIES | ||
Net income | $ 1,405,000 | $ 117,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 417,000 | 567,000 |
Amortization of finite-lived intangible assets | 75,000 | 75,000 |
(Recovery) impairment of note receivable | (4,000) | 102,000 |
Stock-based compensation | 64,000 | 88,000 |
Deferred income tax expense | 46,000 | 41,000 |
Loss (gain) on marketable securities | 28,000 | (21,000) |
Dividend from marketable securities | (6,000) | |
Changes in operating assets and liabilities: | ||
(Increase) decrease in accounts receivable, net | (1,000) | 111,000 |
Increase in inventories, net | (591,000) | (237,000) |
Decrease (increase) in prepaid expenses and other assets | 92,000 | (28,000) |
Increase (decrease) in accounts payable, accrued compensation and commissions expense and other accrued liabilities | 125,000 | (128,000) |
Net cash provided by operating activities | 1,656,000 | 681,000 |
INVESTING ACTIVITIES | ||
Purchase of marketable securities | (1,002,000) | |
Capital expenditures | (324,000) | (131,000) |
Proceeds from sale of land | 96,000 | |
Other | 34,000 | |
Net cash used in investing activities | (324,000) | (1,003,000) |
FINANCING ACTIVITIES | ||
(Costs) proceeds from issuance of common stock, net of issuance costs | (28,000) | 10,794,000 |
Proceeds from warrant exercise | 927,000 | |
Proceeds from stock option exercise | 27,000 | |
Net cash provided by financing activities | 926,000 | 10,794,000 |
(Decrease) increase in cash and cash equivalents | 2,258,000 | 10,472,000 |
Cash and cash equivalents at beginning of year | 13,250,000 | 2,778,000 |
Cash and cash equivalents at end of year | 15,508,000 | 13,250,000 |
Supplemental Disclosure: | ||
Cash paid for interest | 23,000 | 23,000 |
Cash paid for income taxes | $ 69,000 | $ 41,000 |
Accounting And Reporting Polici
Accounting And Reporting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Accounting and Reporting Policies | A. Organization The LGL Group, Inc. (the "Company"), incorporated in 1928 under the laws of the State of Indiana and reincorporated under the laws of the State of Delaware in 2007, is a diversified holding company with subsidiaries engaged in the design, manufacturing and marketing of highly-engineered, high reliability frequency and spectrum control products used to control the frequency or timing of signals in electronic circuits and in the design of high performance Frequency and Time Reference Standards that form the basis for timing and synchronization in various applications. As of December 31, 2018, the subsidiaries of the Company are as follows: Owned By The LGL Group, Inc. M-tron Industries, Inc. 100.0 % Piezo Technology, Inc. 100.0 % Piezo Technology India Private Ltd. 99.9 % M-tron Asia, LLC 100.0 % M-tron Industries, Ltd. 100.0 % GC Opportunities Ltd. 100.0 % M-tron Services, Ltd. 100.0 % Precise Time and Frequency, LLC 100.0 % Lynch Systems, Inc. 100.0 % The Company operates through its two principal subsidiaries, M-tron Industries, Inc. ("MtronPTI"), which includes the operations of Piezo Technology, Inc. ("PTI") and M-tron Asia, LLC ("Mtron"), and Precise Time and Frequency, LLC ("PTF"). The Company has operations in Orlando, Florida, Yankton, South Dakota, Wakefield, Massachusetts and Noida, India. MtronPTI also has sales offices in Sacramento, California, Austin, Texas and Hong Kong. Principles of Consolidation The consolidated financial statements include the accounts of the Company and entities for which it has control. Material intercompany transactions and accounts have been eliminated in consolidation. Uses of Estimates The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles ("GAAP") requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Cash and Cash Equivalents Cash and cash equivalents consist of highly-liquid investments with a maturity of less than three months when purchased. Marketable Securities Marketable equity securities are categorized as available-for-sale securities and are reported at fair value, with the change in fair value being recorded in the consolidated statement of operations. Accounts Receivable Accounts receivable, on a consolidated basis, consists principally of amounts due from both domestic and foreign customers. Credit is extended based on an evaluation of the customer's financial condition and collateral is not required. In relation to export sales, the Company requires letters of credit supporting a significant portion of the sales price prior to production to limit exposure to credit risk. Certain credit sales are made to industries that are subject to cyclical economic changes. The Company maintains allowances for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments. These allowances are maintained at a level that management believes is sufficient to cover potential credit losses. Estimates are based on historical collection experience, current trends, credit policy and the relationship between accounts receivable and revenues. In determining these estimates, the Company examines historical write-offs of its receivables and reviews each customer's account to identify any specific customer collection issues. If the financial condition of its customers were to deteriorate, resulting in an impairment of their ability to make payment, additional allowances might be required. Inventories Inventories are valued at the lower of cost or net realizable value using the FIFO (first-in, first-out) method. The Company maintains a reserve for inventory based on estimated losses that result from inventory that becomes obsolete or for which the Company has excess inventory levels as of period end. In determining these estimates, the Company performs an analysis on current demand and usage for each inventory item over historical time periods. Based on that analysis, the Company reserves a percentage of the inventory amount within each time period based on historical demand and usage patterns of specific items in inventory. Property, Plant and Equipment, Net Property, plant and equipment are recorded at cost less accumulated depreciation and include expenditures for major improvements. Maintenance and repairs are charged to operations as incurred. Depreciation is computed for financial reporting purposes using the straight-line method over the estimated useful lives of the assets, which range from 5 years to 35 years for buildings and improvements, and from 3 to 10 years for other fixed assets. Property, plant and equipment are periodically reviewed for indicators of impairment. If any such indicators were noted, the Company would assess the appropriateness of the assets' carrying value and record any impairment at that time. Depreciation expense from operations was approximately $417,000 for 2018 and $567,000 for 2017. Warranties The Company offers a standard one-year warranty. The Company tests its products prior to shipment in order to ensure that they meet each customer's requirements based upon specifications received from each customer at the time its order is received and accepted. The Company's customers may request to return products for various reasons, including, but not limited to, the customers' belief that the products are not performing to specification. The Company's return policy states that it will accept product returns only with prior authorization and if the product does not meet customer specifications, in which case the product would be replaced or repaired. To accommodate the Company's customers, each request for return is reviewed, and if and when it is approved, a return materials authorization ("RMA") is issued to the customer. Each month, the Company records a specific warranty reserve for approved RMAs covering products that have not yet been returned. The Company does not maintain a general warranty reserve because, historically, valid warranty returns resulting from a product not meeting specifications or being non-functional have been de minimis. As of December 31, 2018 and 2017, accrued warranty expense was $28,000 and $10,000, respectively. Intangible Assets Intangible assets are recorded at cost less accumulated amortization. Amortization is computed for financial reporting purposes using the straight-line method over the estimated useful lives of the assets, which range up to 10 years. The intangible assets consist of intellectual property and goodwill. The net carrying value of the amortizable intangible assets was $437,000 and $512,000 as of December 31, 2018 and 2017, respectively. Goodwill, which is not amortizable, was $40,000 as of December 31, 2018 and 2017. The estimated aggregate amortization expense for intangible assets, excluding goodwill, for each of the remaining years of the estimated useful life is as follows (in thousands): 2019 $ 75 2020 75 2021 75 2022 75 2023 75 Thereafter 62 Total $ 437 Revenue Recognition Effective January 1, 2018, the Company adopted Accounting Standards Update (“ASU”) 2014-09, "Revenue from Contracts with Customers," also known as the "New Revenue Standard" (“ASU 2014-09”), on a modified retrospective basis, with no cumulative effect of adoption to any of the financial statement line items. The Company’s revised policy is as follows: The Company recognizes revenue from the sale of its products in accordance with the criteria in Accounting Standards Codification (“ASC”) 606, Revenue From Contracts with Customers, which are: Step 1: Identify the contract(s) with a customer. Step 2: Identify the performance obligations in the contract. Step 3: Determine the transaction price. Step 4: Allocate the transaction price to the performance obligations in the contract. Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation. The Company meets these conditions upon the Company’s satisfaction of the performance obligation, usually at the time of shipment to the customer, because control passes to the customer at that time. Our standard terms for customers are net due within 30 days, with a few exceptions, none regularly exceeding 60 days. The Company provides disaggregated revenue details by segment in Note K – Segment Information, and geographic markets in Note L – Domestic and Foreign Revenues. The Company offers a limited right of return and/or authorized price protection provisions in its agreements with certain electronic component distributors who resell the Company's products to original equipment manufacturers or electronic manufacturing services companies. As a result, the Company estimates and records a reserve for future returns and other charges against revenue at the time of shipment consistent with the terms of sale. The reserve is estimated based on historical experience with each respective distributor. These reserves and charges are immaterial as the Company does not have a history of significant price protection adjustments or returns. The Company provides a standard assurance warranty that does not create a performance obligation. Practical Expedients: - The Company applies the practical expedient for shipping and handling as fulfillment costs. - The Company expenses sales commissions as sales and marketing expenses in the period they are incurred. Shipping Costs Amounts billed to customers related to shipping and handling are classified as revenue, and the Company's shipping and handling costs are included in manufacturing cost of sales. Research and Development Costs Research and development costs are charged to operations as incurred. Such costs were approximately $1,947,000 and $1,827,000 in 2018 and 2017, respectively, and are included within engineering, selling and administrative expenses. Advertising Expense Advertising costs are charged to operations as incurred. Such costs were approximately $24,000 in 2018, compared with $18,000 in 2017, and are included within engineering, selling and administrative expenses. Stock-Based Compensation The Company measures the cost of employee services in exchange for an award of equity instruments based on the grant-date fair value of the award and recognizes the cost over the requisite service period, typically the vesting period. The Company estimates the fair value of stock options on the grant date using the Black-Scholes-Merton option-pricing model. The Black-Scholes-Merton option-pricing model requires subjective assumptions, including future stock price volatility and expected time to exercise, which greatly affect the calculated values. There is no expected dividend rate. Historical Company information was the basis for the expected volatility assumption as the Company believes that the historical volatility over the life of the option is indicative of expected volatility in the future. The risk-free interest rate is based on the U.S. Treasury zero-coupon rates with a remaining term equal to the expected term of the option. The Company records any forfeitures in the period that the shares are forfeited. Restricted stock awards are made at a value equal to the market price of the Company's common stock on the date of the grant. Earnings Per Share The Company computes earnings per share in accordance with ASC 260, Earnings Per Share. For the years ended December 31, 2018 and 2017, there were options to purchase 15,608 shares and 42,676 shares, respectively, of common stock and for the year ended December 31, 2017, there were warrants to purchase 519,241 shares of common stock that were excluded from the diluted earnings per share computation because the impact of the assumed exercise of such stock options or warrants would have been anti-dilutive. Years Ended December 31, 2018 2017 Weighted average shares outstanding - basic 4,748,609 2,929,641 Effect of diluted securities 126,422 105,463 Weighted average shares outstanding - diluted 4,875,031 3,035,104 Income Taxes The Company's deferred income tax assets represent (a) temporary differences between the financial statement carrying amount and the tax basis of existing assets and liabilities that will result in deductible amounts in future years, and (b) the tax effects of net operating loss carry-forwards. In assessing the realizability of deferred tax assets in accordance with the provisions of ASC 740, the Company considers whether it is more likely than not that some portion or all of the deferred tax assets will or will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become realizable. The Company has determined the results of future operations of one of its foreign subsidiaries will generate enough taxable income that it is more likely than not that deferred tax assets of $127,000 generated from net operating losses (“NOL’s”) in a foreign subsidiary, can be utilized in the foreseeable future. The Company has also determined that a full valuation against the remaining net deferred tax assets is required and has recorded a valuation allowance to reduce deferred tax assets to the amount that is more likely than not to be realized. Should a change in circumstances lead to a change in judgment about the ability to realize deferred tax assets in future years, the Company will adjust related valuation allowances in the period that the change in circumstances occurs, along with a corresponding increase or charge to income. The Company recognizes interest and/or penalties, if any, related to income tax matters in income tax expense. Concentration Risk In 2018, the Company's largest customer, an electronics contract manufacturing company in the aerospace and defense markets, accounted for $4,436,000, or 17.8% of the Company's total revenues, compared to $3,744,000, or 16.7%, in 2017. A significant portion of the Company's accounts receivable is concentrated with a relatively small number of customers. As of December 31, 2018, four of the Company's largest customers accounted for approximately $1,043,000, or 30% of accounts receivable. As of December 31, 2017, four of the Company's largest customers accounted for approximately $1,100,000, or 32% of accounts receivable. The Company carefully evaluates the creditworthiness of its customers in deciding to extend credit, and utilizes letters of credit to further limit credit risk for export sales. As a result of these policies, the Company has experienced very low historical bad debt expense and believes the related risk to be minimal. At various times throughout the year and at December 31, 2018, some deposits held at financial institutions were in excess of federally insured limits. The Company has not experienced any losses related to these balances and believes the related risk to be minimal. Segment Information The Company reports segment information in accordance with ASC 280, Segment Information Impairments of Long-Lived Assets Long-lived assets, including intangible assets subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. Long-lived assets are grouped with other assets to the lowest level to which identifiable cash flows are largely independent of the cash flows of other groups of assets and liabilities. Management assesses the recoverability of the carrying cost of the assets based on a review of projected undiscounted cash flows. If an asset is held for sale, management reviews its estimated fair value less cost to sell. Fair value is determined using pertinent market information, including appraisals or broker's estimates, and/or projected discounted cash flows. In the event an impairment loss is identified, it is recognized based on the amount by which the carrying value exceeds the estimated fair value of the long-lived asset. Financial Instruments Cash and cash equivalents, trade accounts receivable, short-term borrowings, trade accounts payable, and accrued expenses are carried at cost, which approximates fair value due to the short-term maturity of these instruments. Foreign Currency Translation The assets and liabilities of international operations are re-measured at the exchange rates in effect at the balance sheet date for monetary assets and liabilities and at historical rates for non-monetary assets and liabilities, with the related re-measurement gains or losses reported within the consolidated statement of operations. The results of international operations are re-measured at the monthly average exchange rates. The Company's foreign subsidiaries and respective operations' functional currency is the U.S. dollar. The Company has determined this based upon the majority of transactions with customers as well as inter-company transactions and parental support being based in U.S. dollars. The Company has recognized a re-measurement loss of $74,000 and a re-measurement gain of $22,000, in 2018 and 2017, respectively, which is included within other income, net in the consolidated statements of operations. Recently Issued Accounting Pronouncements In March 2018, the Financial Accounting Standards Board (“FASB”) issued ASU 2018-05, “Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118,” to provide guidance for companies that may not have completed their accounting for the income tax effects of the Tax Cuts and Jobs Act (the “Tax Act”) in the period of enactment, which is the period that includes December 22, 2017. ASU 2018-05 provides for a provisional one year measurement period for entities to finalize their accounting for certain income tax effects related to the Tax Act. ASU 2018-05 requires disclosure of the reasons for incomplete accounting, additional information or analysis needed, among other relevant information. The Company finalized its provisional amounts during the fourth quarter of fiscal 2018 without recording any adjustment, completing its requirements under ASU 2018-05. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)”. The objective of this update is to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those annual periods and is to be applied utilizing a modified retrospective approach. The Company does not expect the adoption of ASU 2016-02 to have a material impact on its consolidated financial statements. In January 2016, the FASB issued ASU 2016-01, “Financial Instruments – Recognition and Measurement of Financial Assets and Financial Liabilities (Topic 825)”. ASU 2016-01 revises the classification and measurement of investments in certain equity investments and the presentation of certain fair value changes for certain financial liabilities measured at fair value. ASU 2016-01 requires the change in fair value of many equity investments to be recognized in net income. ASU 2016-01 is effective for interim and annual periods beginning after December 15, 2017, with early adoption permitted. The Company adopted this guidance effective January 1, 2018 and made a cumulative effect adjustment to the Company's retained earnings of $35,000. In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers”. ASU 2014-09 is the result of a collaborative effort by the FASB and the International Accounting Standards Board to simplify revenue recognition guidance, remove inconsistencies in the application of revenue recognition, and to improve comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to receive for those goods or services. For a public entity, this update is effective for annual and interim reporting periods beginning after December 15, 2017 with early adoption permitted. This standard can be applied on either a retrospective or modified retrospective approach. Since May, 2014, a number of ASU's have been issued which further refine the original guidance issued under ASU 2014-09 and are effective in conjunction with this original standard. ASU 2014-09 became effective for the Company on January 1, 2018 and was applied on a modified retrospective basis, with no cumulative effect of adoption to any of the financial statement line items. No other new accounting pronouncements issued or effective during the fiscal year have had or are expected to have a material impact on the Company's consolidated financial statements. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | B. The Company reduces the value of its inventories to net realizable value when the net realizable value is believed to be less than the cost of the item. The inventory reserve for obsolescence as of December 31, 2018 and 2017 was $1,266,000 and $1,213,000, respectively. December 31, 2018 2017 (in thousands) Raw materials $ 1,719 $ 1,526 Work in process 1,807 1,337 Finished goods 940 1,012 Total Inventories, net $ 4,466 $ 3,875 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | C. Certain balances held and invested in various mutual funds are managed by a related entity (the "Fund Manager"), which is related through a director who is also a greater than 10% stockholder and currently serves as an executive officer of the Fund Manager. The brokerage and fund transactions in 2018 and 2017 were directed solely at the discretion of the Company’s management. As of December 31, 2018, the balance with the Fund Manager totaled $16,270,000 , including $12,506,000 which is classified within cash and cash equivalents on the accompanying consolidated balance sheet, and $3,764,000 which is classified as marketable securities on the accompanying consolidated balance sheet. Amounts invested generated $203,000 of realized and unrealized investment income during 2018 that is included within other income, net on the accompanying unaudited consolidated statement of operations. As of December 31, 2017, the balance with the Fund Manager totaled $14,842,000, including $11,050,000 which is classified within cash and cash equivalents on the accompanying consolidated balance sheet, and $3,792,000 which is classified as marketable securities on the accompanying consolidated balance sheet. Fund management fees earned by the Fund Manager are anticipated to average less than 0.25% of the asset balances under management on an annual basis. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | D. On August 4, 2011, the Company's stockholders approved the 2011 Incentive Plan. 500,000 shares of common stock were authorized for issuance under the 2011 Incentive Plan. On June 16, 2016, the Company's stockholders approved the Amended and Restated 2011 Incentive Plan which increased the shares of common stock authorized for issuance to 750,000 shares of common stock. The Company believes that such awards better align the interests of its employees with those of its shareholders. Option awards are generally granted with an exercise price either at or 10% above the market price of the Company's stock at the date of grant; those option awards generally have 5-year contractual terms and generally vest over three years. Restricted stock awards are granted at a value equal to the market price of the Company's common stock on the date of grant. The following table summarizes the inputs to the option valuation model for the options granted during the years ended December 31, 2018 and 2017: 2018 2017 Expected volatility 31 % 27% Dividend rate 0% 0% Expected term (in years) 3.55 3.55 Risk-free rate 2.65 % 2.01% The Company bases expected volatility on the weighted average historical stock volatility of the Company's common stock. There is no dividend rate, as dividends are not expected to be paid. The expected term utilizes historical data to estimate the period of time that the options are expected to remain unexercised. The Company bases risk-free rates on the U.S. Treasury zero-coupon rates with a remaining term equal to the expected term of the option. The Company records any forfeitures in the period that the shares are forfeited. The following table summarizes information about stock options outstanding and exercisable at December 31, 2018: Number of Shares Outstanding Weighted Average Exercise Price Weighted Average Grant Date Fair Value Weighted Average Remaining Term (in years) Aggregate Intrinsic Value (in thousands) Option Balances at December 31, 2017 181,385 $ 4.98 $ 1.30 2.4 $ 158 Options Granted 6,067 6.14 1.65 Options Exercised (9,376 ) 3.89 0.94 Options Forfeited (506 ) 4.34 0.87 Options Expired (23,693 ) 7.26 2.33 Option Balances at December 31, 2018 153,877 $ 4.75 $ 1.18 2.0 $ 208 Options Exercisable at December 31, 2018 124,855 $ 4.61 $ 1.19 1.6 $ 186 The weighted-average grant-date fair value of options granted during the years 2018 and 2017 was $1.65 and $1.05, respectively. As of December 31, 2018, there was approximately $31,000 of total unrecognized compensation expense related to unvested share-based compensation arrangements. During the year ended December 31, 2018, the Company issued 6,516 shares with a weighted average grant date fair value of $6.14 per share. These shares were fully vested on the date of issuance. As of December 31, 2018, there were no unvested restricted shares granted under the Amended and Restated 2011 Incentive Plan. The Amended and Restated 2011 Incentive Plan had 428,468 shares remaining available for future issuance at December 31, 2018. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | E. Income Taxes On December 22, 2017, the U.S. enacted the Tax Act. The Tax Act significantly changes U.S. corporate income tax law. Among other changes effective in 2017, the Tax Act requires companies to pay a one-time tax on certain unrepatriated earnings of foreign subsidiaries. The Company calculated the impact of the Tax Act in its income tax provision for the year ended December 31, 2018 in accordance with its understanding of the Tax Act and guidance available as of the date of its filing of its 2018 results. The Company recognized tax expense of $1,662,000 for the year ended December 31, 2017 related to the remeasurement of certain deferred tax assets and liabilities from 34% to 21%. The most material deferred taxes to be remeasured related to inventory reserves, net operating losses (after reduction for the one-time transition tax) and property, plant and equipment. This tax expense from remeasurement of deferred tax assets had no impact on our effective tax rate as it was completely offset by the Company’s valuation allowance. The Company also recognized provisional tax expense of $565,000 for the year ended December 31, 2017 related to the one-time transition tax on the deemed repatriation of foreign earnings. The calculation of the one-time tax is quite complex, requiring determinations of liquid asset balances over three years, determination of foreign earnings and profits (“E&P," a U.S. tax measure) at multiple dates, and multiple other computations. Our provisional calculated tax expense was impacted by cash and other liquid assets taxable at a 15.5% rate and the balance of non-cash E&P taxable at 8%. The one-time transition tax had no impact on our 2017 or 2018 effective tax rate as it was completely offset by the Company’s valuation allowance. Upon gathering all necessary data and interpreting additional guidance from tax authorities to complete the analysis, our provisional amount for 2017 was finalized without adjustment in the fourth quarter of 2018. Income tax provision for the years ended December 31, 2018 and 2017 is as follows: 2018 2017 (in thousands) Current: Federal $ (57 ) $ — State and local 20 18 Foreign 156 43 Total Current 119 61 Deferred: Federal 616 1,637 State and local (86 ) 42 Foreign 46 41 Total before change in valuation allowance 576 1,720 Change in Valuation Allowance (530 ) (1,679 ) Net Deferred 46 41 Income tax provision $ 165 $ 102 A reconciliation of the provision for income taxes and the amount computed by applying the statutory federal income tax rate to income before income taxes is detailed below: 2018 2017 (in thousands) Tax provision at expected statutory rate $ 330 $ 75 State taxes, net of federal benefit 43 81 Permanent differences 122 450 Credits (82 ) (106 ) Foreign tax expense, and other 420 (381 ) Change in rate (138 ) 1,662 Change in valuation allowance (530 ) (1,679 ) Provision for income taxes $ 165 $ 102 Income (loss) before income taxes from domestic operations was $972,000 and ($65,000) in 2018 and 2017, respectively. Income before income taxes from foreign operations was $598,000 and $284,000 in 2018 and 2017, respectively. The Company has a total federal NOL carry-forward of $9,429,000 as of December 31, 2018. This federal NOL carry-forward expires through 2038 if not utilized prior to that date. The Company has total state NOL carry-forwards of $15,906,000 as of December 31, 2018. These state NOL carry-forwards expire through 2038 if not utilized prior to that date. The Company has research and development tax credit carry-forwards of approximately $1,598,000 at December 31, 2018 that can be used to reduce future income tax liabilities and expire principally between 2020 and 2038. The Company has foreign tax credit carry-forwards of approximately $368,000 at December 31, 2018 that are available to reduce future U.S. income tax liabilities subject to certain limitations. These foreign tax credit carry-forwards expire at various times between 2019 and 2020. In assessing the realizability of deferred tax assets, the Company considers whether it is more likely than not that some portion or all of the deferred tax assets will or will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become realizable. Based upon the weighting of positive and negative evidence, the Company has determined the results of future operations of one of its foreign subsidiaries will generate enough taxable income that it is more likely than not that deferred tax assets of $127,000 at December 31, 2018, generated from foreign NOLs, can be utilized in the foreseeable future. The Company has also determined that a full valuation against the remaining net deferred tax assets is required and has recorded a valuation allowance to reduce deferred tax assets to the amount that is more likely than not to be realized. Should a change in circumstances lead to a change in judgment about the ability to realize deferred tax assets in future years, the Company will adjust related valuation allowances in the period that the change in circumstances occurs, along with a corresponding increase or charge to income. The Company recognizes interest and/or penalties, if any, related to income tax matters in income tax expense. Deferred income taxes for 2018 and 2017 were provided for the temporary differences between the financial reporting basis and the tax basis of the Company's assets and liabilities. Tax effects of temporary differences and carry-forwards at December 31, 2018 and 2017 were as follows: December 31, 2018 December 31, 2017 Deferred Tax Deferred Tax Asset Liability Asset Liability (in thousands) Inventory reserve $ 301 $ — $ 325 $ — Fixed assets — 90 — 141 Other reserves and accruals 207 — 133 — Stock-based compensation 23 — 18 — Other — 24 — 29 Tax credit carry-forwards 1,966 — 2,284 — Federal tax loss carry-forwards 1,980 — 2,380 — State tax loss carry-forwards 734 — 657 — Foreign tax loss carry-forwards 127 — 173 — Total deferred income taxes 5,338 $ 114 5,970 $ 170 Valuation allowance (5,097 ) (5,627 ) Net deferred tax assets $ 127 $ 173 The Company will recognize any interest and penalties related to unrecognized tax positions in income tax expense. At the date of adoption of ASC 740, the Company did not have a liability for unrecognized tax positions. In addition, the Company did not record any increases or decreases to its liability for unrecognized tax positions during the years ended December 31, 2018 or 2017. Accordingly, the Company has not accrued for any interest and penalties as of December 31, 2018 or 2017. The Company does not anticipate any change in its liability for unrecognized tax positions over the next fiscal year. The Company files income tax returns in the U.S. federal, various state, Hong Kong and India jurisdictions. The statute of limitations for assessment by the Internal Revenue Service ("IRS") and state tax authorities is open for tax years ended December 31, 2015, 2016 and 2017, although carry-forward attributes that were generated prior to tax year 2015, including NOL carry-forwards and tax credits, may still be adjusted upon examination by the IRS or state tax authorities if they either have been or will be used in a future period. The Company is generally subject to examinations by foreign tax authorities from 2013 to the present. |
CNB Loan
CNB Loan | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
CNB Loan | F. On December 31, 2016, MtronPTI renewed its Loan Agreement (the "CNB Loan Agreement") with City National Bank of Florida ("City National"). The CNB Loan Agreement provided for a revolving line of credit in the amount of $3.0 million (the "CNB Revolver"), bearing interest at a variable rate equal to 30-day LIBOR plus 200 basis points to be set on the first day of each month, expiring on September 30, 2018. The CNB Loan Agreement also provided that MtronPTI will pay City National a fee equal to 0.75% per year on the daily unused amount. The Company's obligations under the CNB Loan Agreement were secured only by cash collateral and did not require any other liens. At December 31, 2017, there was no balance outstanding under the CNB Revolver. The CNB Revolver expired September 30, 2018. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2018 | |
Stockholders Equity Note [Abstract] | |
Stockholders' Equity | G. Share Repurchase Program On August 29, 2011, the Board authorized the Company to repurchase up to 100,000 shares of its common stock in accordance with applicable securities laws. This authorization increased the total number of shares authorized and available for repurchase under the Company's existing share repurchase program to 540,000 shares, at such times, amounts and prices as the Company shall deem appropriate. As of December 31, 2018, the Company had repurchased a total of 81,584 shares of common stock at a cost of $580,000, which shares are currently held in treasury. Warrants On August 6, 2013, the Company distributed 12,981,025 warrants to purchase shares of the Company's common stock as a dividend to holders of the Company's common stock on July 29, 2013, the record date for the dividend. Stockholders received five warrants for each share of the Company's common stock owned on the record date. When exercisable, 25 warrants will entitle their holder to purchase one share of the Company's common stock at an exercise price of $7.50 per share (subject to adjustment). On August 6, 2018, on the expiration date, the Company received gross proceeds of $926,948 and issued 123,593 shares as a result of exercises of its warrants. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | H. 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. Fair value guidance identifies three primary valuation techniques: the market approach, the income approach and the cost approach. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts such as cash flows or earnings, to a single present amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that currently would be required to replace the service capacity of an asset. The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The fair value hierarchy gives the highest priority to observable inputs such as quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The maximization of observable inputs and the minimization of the use of unobservable inputs are required. Classification within the fair value hierarchy is based upon the objectivity of the inputs that are significant to the valuation of an asset or liability as of the measurement date. The three levels within the fair value hierarchy are characterized as follows: Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include: quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability; and inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 3 - Unobservable inputs for the asset or liability for which there is little, if any, market activity for the asset or liability at the measurement date. Unobservable inputs reflect the Company's own assumptions about what market participants would use to price the asset or liability. These inputs may include internally developed pricing models, discounted cash flow methodologies, as well as instruments for which the fair value determination requires significant management judgment. Assets To estimate the market value of its cash and cash equivalents and marketable securities, the Company obtains current market pricing from quoted market sources or uses pricing for identical securities. Assets measured at fair value on a recurring basis are summarized below. (in thousands) Level 1 Level 2 Level 3 Total December 31, 2018 Marketable Equity Security $ 11 $ — $ — $ 11 Equity Mutual Fund $ — $ 3,764 $ — $ 3,764 U.S. Treasury Mutual Fund $ 12,506 $ — $ — $ 12,506 (in thousands) Level 1 Level 2 Level 3 Total December 31, 2017 Marketable Equity Security $ 3,803 $ — $ — $ 3,803 U.S. Treasury Mutual Fund $ 11,866 $ — $ — $ 11,866 There were no transfers to or from level 2 to level 3 during the reporting periods. As of December 31, 2018, The Company had investments in two mutual funds. The Equity Mutual Fund noted above is invested in the Gabelli ABC Fund, and the U.S. Treasury Mutual Fund is invested in the Gabelli US Treasury Money Market Fund. The Company reviews goodwill annually and the carrying value of long-lived assets whenever events and circumstances indicate that the carrying amounts of the assets may not be recoverable. If it is determined that the assets are impaired, the carrying value would be reduced to estimated recoverable value. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2018 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefit Plans | I. Employee Benefit Plans The Company offers a defined contribution plan for eligible employees, in which the Company makes discretionary contributions up to 50% of the first 6% of eligible compensation contributed by participants. The Company contributed approximately $118,000 and $116,000 in discretionary contributions during 2018 and 2017, respectively. Participants vest in employer contributions starting after their second year of service at 20% increments, vesting 100% in year six. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | J. In the normal course of business, the Company and its subsidiaries may become defendants in certain product liability, patent infringement, worker claims and other litigation. The Company records a liability when it is probable that a loss has been incurred and the amount is reasonably estimable. The Company is not involved in any legal proceedings other than routine litigation arising in the normal course of business, none of which the Company believes will have a material adverse effect on the Company's business, financial condition or results of operations. Rent Expense Rent expense under operating leases was $393,000 and $285,000 for the years ended December 31, 2018 and 2017, respectively. The Company leases certain property and equipment, including warehousing, and sales and distribution equipment, under operating leases that extend from one to two years. Certain of these leases have renewal options. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | K. The Company has identified two reportable business segments from operations: electronic components, which includes all products manufactured and sold by MtronPTI, and electronic instruments, which includes all products manufactured and sold by PTF. The Company's foreign operations in Hong Kong and India exist under MtronPTI. Operating income (loss) is equal to revenues less cost of sales and operating expenses, excluding investment income, interest expense, and income taxes. Identifiable assets of the segment are those used in its operations and exclude general corporate assets. General corporate assets are principally cash and cash equivalents, short-term investments and certain other investments and receivables. Years Ended December 31, 2018 2017 (in thousands) Revenues from Operations Electronic components $ 23,793 $ 21,516 Electronic instruments 1,077 886 Total consolidated revenues $ 24,870 $ 22,402 Operating Income from Operations Electronic components $ 2,525 $ 1,260 Electronic instruments 49 56 Unallocated corporate expense (1,144 ) (1,040 ) Consolidated total operating income 1,430 276 Interest income (expense), net 2 (11 ) Other income (expense), net 138 (46 ) Total other income (expense) 140 (57 ) Income Before Income Taxes $ 1,570 $ 219 Capital Expenditures Electronic components $ 324 $ 131 Electronic instruments — — General corporate — — Total capital expenditures $ 324 $ 131 Total Assets Electronic components $ 11,877 $ 11,899 Electronic instruments 861 811 General corporate 17,337 14,845 Consolidated total assets $ 30,075 $ 27,555 |
Domestic and Foreign Revenues
Domestic and Foreign Revenues | 12 Months Ended |
Dec. 31, 2018 | |
Revenues [Abstract] | |
Domestic and Foreign Revenues | L. Significant foreign revenues from operations (10% or more of foreign sales) were as follows (in thousands): Years Ended December 31, 2018 2017 (in thousands) Malaysia $ 3,153 $ 3,038 All other foreign countries 3,044 3,275 Total foreign revenues $ 6,197 $ 6,313 Total domestic revenues $ 18,673 $ 16,089 The Company allocates its foreign revenue based on the customer's ship-to location. |
Accounting And Reporting Poli_2
Accounting And Reporting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Organization | Organization The LGL Group, Inc. (the "Company"), incorporated in 1928 under the laws of the State of Indiana and reincorporated under the laws of the State of Delaware in 2007, is a diversified holding company with subsidiaries engaged in the design, manufacturing and marketing of highly-engineered, high reliability frequency and spectrum control products used to control the frequency or timing of signals in electronic circuits and in the design of high performance Frequency and Time Reference Standards that form the basis for timing and synchronization in various applications. As of December 31, 2018, the subsidiaries of the Company are as follows: Owned By The LGL Group, Inc. M-tron Industries, Inc. 100.0 % Piezo Technology, Inc. 100.0 % Piezo Technology India Private Ltd. 99.9 % M-tron Asia, LLC 100.0 % M-tron Industries, Ltd. 100.0 % GC Opportunities Ltd. 100.0 % M-tron Services, Ltd. 100.0 % Precise Time and Frequency, LLC 100.0 % Lynch Systems, Inc. 100.0 % The Company operates through its two principal subsidiaries, M-tron Industries, Inc. ("MtronPTI"), which includes the operations of Piezo Technology, Inc. ("PTI") and M-tron Asia, LLC ("Mtron"), and Precise Time and Frequency, LLC ("PTF"). The Company has operations in Orlando, Florida, Yankton, South Dakota, Wakefield, Massachusetts and Noida, India. MtronPTI also has sales offices in Sacramento, California, Austin, Texas and Hong Kong. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Company and entities for which it has control. Material intercompany transactions and accounts have been eliminated in consolidation. |
Uses of Estimates | Uses of Estimates The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles ("GAAP") requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consist of highly-liquid investments with a maturity of less than three months when purchased. |
Marketable Securities | Marketable Securities Marketable equity securities are categorized as available-for-sale securities and are reported at fair value, with the change in fair value being recorded in the consolidated statement of operations. |
Accounts Receivable | Accounts Receivable Accounts receivable, on a consolidated basis, consists principally of amounts due from both domestic and foreign customers. Credit is extended based on an evaluation of the customer's financial condition and collateral is not required. In relation to export sales, the Company requires letters of credit supporting a significant portion of the sales price prior to production to limit exposure to credit risk. Certain credit sales are made to industries that are subject to cyclical economic changes. The Company maintains allowances for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments. These allowances are maintained at a level that management believes is sufficient to cover potential credit losses. Estimates are based on historical collection experience, current trends, credit policy and the relationship between accounts receivable and revenues. In determining these estimates, the Company examines historical write-offs of its receivables and reviews each customer's account to identify any specific customer collection issues. If the financial condition of its customers were to deteriorate, resulting in an impairment of their ability to make payment, additional allowances might be required. |
Inventories | Inventories Inventories are valued at the lower of cost or net realizable value using the FIFO (first-in, first-out) method. The Company maintains a reserve for inventory based on estimated losses that result from inventory that becomes obsolete or for which the Company has excess inventory levels as of period end. In determining these estimates, the Company performs an analysis on current demand and usage for each inventory item over historical time periods. Based on that analysis, the Company reserves a percentage of the inventory amount within each time period based on historical demand and usage patterns of specific items in inventory. |
Property, Plant and Equipment, Net | Property, Plant and Equipment, Net Property, plant and equipment are recorded at cost less accumulated depreciation and include expenditures for major improvements. Maintenance and repairs are charged to operations as incurred. Depreciation is computed for financial reporting purposes using the straight-line method over the estimated useful lives of the assets, which range from 5 years to 35 years for buildings and improvements, and from 3 to 10 years for other fixed assets. Property, plant and equipment are periodically reviewed for indicators of impairment. If any such indicators were noted, the Company would assess the appropriateness of the assets' carrying value and record any impairment at that time. Depreciation expense from operations was approximately $417,000 for 2018 and $567,000 for 2017. |
Warranties | Warranties The Company offers a standard one-year warranty. The Company tests its products prior to shipment in order to ensure that they meet each customer's requirements based upon specifications received from each customer at the time its order is received and accepted. The Company's customers may request to return products for various reasons, including, but not limited to, the customers' belief that the products are not performing to specification. The Company's return policy states that it will accept product returns only with prior authorization and if the product does not meet customer specifications, in which case the product would be replaced or repaired. To accommodate the Company's customers, each request for return is reviewed, and if and when it is approved, a return materials authorization ("RMA") is issued to the customer. Each month, the Company records a specific warranty reserve for approved RMAs covering products that have not yet been returned. The Company does not maintain a general warranty reserve because, historically, valid warranty returns resulting from a product not meeting specifications or being non-functional have been de minimis. As of December 31, 2018 and 2017, accrued warranty expense was $28,000 and $10,000, respectively. |
Intangible Assets | Intangible Assets Intangible assets are recorded at cost less accumulated amortization. Amortization is computed for financial reporting purposes using the straight-line method over the estimated useful lives of the assets, which range up to 10 years. The intangible assets consist of intellectual property and goodwill. The net carrying value of the amortizable intangible assets was $437,000 and $512,000 as of December 31, 2018 and 2017, respectively. Goodwill, which is not amortizable, was $40,000 as of December 31, 2018 and 2017. The estimated aggregate amortization expense for intangible assets, excluding goodwill, for each of the remaining years of the estimated useful life is as follows (in thousands): 2019 $ 75 2020 75 2021 75 2022 75 2023 75 Thereafter 62 Total $ 437 |
Revenue Recognition | Revenue Recognition Effective January 1, 2018, the Company adopted Accounting Standards Update (“ASU”) 2014-09, "Revenue from Contracts with Customers," also known as the "New Revenue Standard" (“ASU 2014-09”), on a modified retrospective basis, with no cumulative effect of adoption to any of the financial statement line items. The Company’s revised policy is as follows: The Company recognizes revenue from the sale of its products in accordance with the criteria in Accounting Standards Codification (“ASC”) 606, Revenue From Contracts with Customers, which are: Step 1: Identify the contract(s) with a customer. Step 2: Identify the performance obligations in the contract. Step 3: Determine the transaction price. Step 4: Allocate the transaction price to the performance obligations in the contract. Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation. The Company meets these conditions upon the Company’s satisfaction of the performance obligation, usually at the time of shipment to the customer, because control passes to the customer at that time. Our standard terms for customers are net due within 30 days, with a few exceptions, none regularly exceeding 60 days. The Company provides disaggregated revenue details by segment in Note K – Segment Information, and geographic markets in Note L – Domestic and Foreign Revenues. The Company offers a limited right of return and/or authorized price protection provisions in its agreements with certain electronic component distributors who resell the Company's products to original equipment manufacturers or electronic manufacturing services companies. As a result, the Company estimates and records a reserve for future returns and other charges against revenue at the time of shipment consistent with the terms of sale. The reserve is estimated based on historical experience with each respective distributor. These reserves and charges are immaterial as the Company does not have a history of significant price protection adjustments or returns. The Company provides a standard assurance warranty that does not create a performance obligation. Practical Expedients: - The Company applies the practical expedient for shipping and handling as fulfillment costs. - The Company expenses sales commissions as sales and marketing expenses in the period they are incurred. |
Shipping Costs | Shipping Costs Amounts billed to customers related to shipping and handling are classified as revenue, and the Company's shipping and handling costs are included in manufacturing cost of sales. |
Research and Development Costs | Research and Development Costs Research and development costs are charged to operations as incurred. Such costs were approximately $1,947,000 and $1,827,000 in 2018 and 2017, respectively, and are included within engineering, selling and administrative expenses. |
Advertising Expense | Advertising Expense Advertising costs are charged to operations as incurred. Such costs were approximately $24,000 in 2018, compared with $18,000 in 2017, and are included within engineering, selling and administrative expenses. |
Stock-Based Compensation | Stock-Based Compensation The Company measures the cost of employee services in exchange for an award of equity instruments based on the grant-date fair value of the award and recognizes the cost over the requisite service period, typically the vesting period. The Company estimates the fair value of stock options on the grant date using the Black-Scholes-Merton option-pricing model. The Black-Scholes-Merton option-pricing model requires subjective assumptions, including future stock price volatility and expected time to exercise, which greatly affect the calculated values. There is no expected dividend rate. Historical Company information was the basis for the expected volatility assumption as the Company believes that the historical volatility over the life of the option is indicative of expected volatility in the future. The risk-free interest rate is based on the U.S. Treasury zero-coupon rates with a remaining term equal to the expected term of the option. The Company records any forfeitures in the period that the shares are forfeited. Restricted stock awards are made at a value equal to the market price of the Company's common stock on the date of the grant. |
Earnings Per Share | Earnings Per Share The Company computes earnings per share in accordance with ASC 260, Earnings Per Share. For the years ended December 31, 2018 and 2017, there were options to purchase 15,608 shares and 42,676 shares, respectively, of common stock and for the year ended December 31, 2017, there were warrants to purchase 519,241 shares of common stock that were excluded from the diluted earnings per share computation because the impact of the assumed exercise of such stock options or warrants would have been anti-dilutive. Years Ended December 31, 2018 2017 Weighted average shares outstanding - basic 4,748,609 2,929,641 Effect of diluted securities 126,422 105,463 Weighted average shares outstanding - diluted 4,875,031 3,035,104 |
Income Taxes | Income Taxes The Company's deferred income tax assets represent (a) temporary differences between the financial statement carrying amount and the tax basis of existing assets and liabilities that will result in deductible amounts in future years, and (b) the tax effects of net operating loss carry-forwards. In assessing the realizability of deferred tax assets in accordance with the provisions of ASC 740, the Company considers whether it is more likely than not that some portion or all of the deferred tax assets will or will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become realizable. The Company has determined the results of future operations of one of its foreign subsidiaries will generate enough taxable income that it is more likely than not that deferred tax assets of $127,000 generated from net operating losses (“NOL’s”) in a foreign subsidiary, can be utilized in the foreseeable future. The Company has also determined that a full valuation against the remaining net deferred tax assets is required and has recorded a valuation allowance to reduce deferred tax assets to the amount that is more likely than not to be realized. Should a change in circumstances lead to a change in judgment about the ability to realize deferred tax assets in future years, the Company will adjust related valuation allowances in the period that the change in circumstances occurs, along with a corresponding increase or charge to income. The Company recognizes interest and/or penalties, if any, related to income tax matters in income tax expense. |
Concentration Risk | Concentration Risk In 2018, the Company's largest customer, an electronics contract manufacturing company in the aerospace and defense markets, accounted for $4,436,000, or 17.8% of the Company's total revenues, compared to $3,744,000, or 16.7%, in 2017. A significant portion of the Company's accounts receivable is concentrated with a relatively small number of customers. As of December 31, 2018, four of the Company's largest customers accounted for approximately $1,043,000, or 30% of accounts receivable. As of December 31, 2017, four of the Company's largest customers accounted for approximately $1,100,000, or 32% of accounts receivable. The Company carefully evaluates the creditworthiness of its customers in deciding to extend credit, and utilizes letters of credit to further limit credit risk for export sales. As a result of these policies, the Company has experienced very low historical bad debt expense and believes the related risk to be minimal. At various times throughout the year and at December 31, 2018, some deposits held at financial institutions were in excess of federally insured limits. The Company has not experienced any losses related to these balances and believes the related risk to be minimal. |
Segment Information | Segment Information The Company reports segment information in accordance with ASC 280, Segment Information |
Impairments of Long-Lived Assets | Impairments of Long-Lived Assets Long-lived assets, including intangible assets subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. Long-lived assets are grouped with other assets to the lowest level to which identifiable cash flows are largely independent of the cash flows of other groups of assets and liabilities. Management assesses the recoverability of the carrying cost of the assets based on a review of projected undiscounted cash flows. If an asset is held for sale, management reviews its estimated fair value less cost to sell. Fair value is determined using pertinent market information, including appraisals or broker's estimates, and/or projected discounted cash flows. In the event an impairment loss is identified, it is recognized based on the amount by which the carrying value exceeds the estimated fair value of the long-lived asset. |
Financial Instruments | Financial Instruments Cash and cash equivalents, trade accounts receivable, short-term borrowings, trade accounts payable, and accrued expenses are carried at cost, which approximates fair value due to the short-term maturity of these instruments. |
Foreign Currency Translation | Foreign Currency Translation The assets and liabilities of international operations are re-measured at the exchange rates in effect at the balance sheet date for monetary assets and liabilities and at historical rates for non-monetary assets and liabilities, with the related re-measurement gains or losses reported within the consolidated statement of operations. The results of international operations are re-measured at the monthly average exchange rates. The Company's foreign subsidiaries and respective operations' functional currency is the U.S. dollar. The Company has determined this based upon the majority of transactions with customers as well as inter-company transactions and parental support being based in U.S. dollars. The Company has recognized a re-measurement loss of $74,000 and a re-measurement gain of $22,000, in 2018 and 2017, respectively, which is included within other income, net in the consolidated statements of operations. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In March 2018, the Financial Accounting Standards Board (“FASB”) issued ASU 2018-05, “Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118,” to provide guidance for companies that may not have completed their accounting for the income tax effects of the Tax Cuts and Jobs Act (the “Tax Act”) in the period of enactment, which is the period that includes December 22, 2017. ASU 2018-05 provides for a provisional one year measurement period for entities to finalize their accounting for certain income tax effects related to the Tax Act. ASU 2018-05 requires disclosure of the reasons for incomplete accounting, additional information or analysis needed, among other relevant information. The Company finalized its provisional amounts during the fourth quarter of fiscal 2018 without recording any adjustment, completing its requirements under ASU 2018-05. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)”. The objective of this update is to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those annual periods and is to be applied utilizing a modified retrospective approach. The Company does not expect the adoption of ASU 2016-02 to have a material impact on its consolidated financial statements. In January 2016, the FASB issued ASU 2016-01, “Financial Instruments – Recognition and Measurement of Financial Assets and Financial Liabilities (Topic 825)”. ASU 2016-01 revises the classification and measurement of investments in certain equity investments and the presentation of certain fair value changes for certain financial liabilities measured at fair value. ASU 2016-01 requires the change in fair value of many equity investments to be recognized in net income. ASU 2016-01 is effective for interim and annual periods beginning after December 15, 2017, with early adoption permitted. The Company adopted this guidance effective January 1, 2018 and made a cumulative effect adjustment to the Company's retained earnings of $35,000. In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers”. ASU 2014-09 is the result of a collaborative effort by the FASB and the International Accounting Standards Board to simplify revenue recognition guidance, remove inconsistencies in the application of revenue recognition, and to improve comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to receive for those goods or services. For a public entity, this update is effective for annual and interim reporting periods beginning after December 15, 2017 with early adoption permitted. This standard can be applied on either a retrospective or modified retrospective approach. Since May, 2014, a number of ASU's have been issued which further refine the original guidance issued under ASU 2014-09 and are effective in conjunction with this original standard. ASU 2014-09 became effective for the Company on January 1, 2018 and was applied on a modified retrospective basis, with no cumulative effect of adoption to any of the financial statement line items. No other new accounting pronouncements issued or effective during the fiscal year have had or are expected to have a material impact on the Company's consolidated financial statements. |
Accounting And Reporting Poli_3
Accounting And Reporting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Subsidiaries of the Company | As of December 31, 2018, the subsidiaries of the Company are as follows: Owned By The LGL Group, Inc. M-tron Industries, Inc. 100.0 % Piezo Technology, Inc. 100.0 % Piezo Technology India Private Ltd. 99.9 % M-tron Asia, LLC 100.0 % M-tron Industries, Ltd. 100.0 % GC Opportunities Ltd. 100.0 % M-tron Services, Ltd. 100.0 % Precise Time and Frequency, LLC 100.0 % Lynch Systems, Inc. 100.0 % |
Future Amortization Expense of Finite-Lived Intangible Assets | The estimated aggregate amortization expense for intangible assets, excluding goodwill, for each of the remaining years of the estimated useful life is as follows (in thousands): 2019 $ 75 2020 75 2021 75 2022 75 2023 75 Thereafter 62 Total $ 437 |
Reconciliation of Basic to Diluted Weighted Average Shares Outstanding | Years Ended December 31, 2018 2017 Weighted average shares outstanding - basic 4,748,609 2,929,641 Effect of diluted securities 126,422 105,463 Weighted average shares outstanding - diluted 4,875,031 3,035,104 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | December 31, 2018 2017 (in thousands) Raw materials $ 1,719 $ 1,526 Work in process 1,807 1,337 Finished goods 940 1,012 Total Inventories, net $ 4,466 $ 3,875 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Inputs to Option Valuation Model for Options Granted | The following table summarizes the inputs to the option valuation model for the options granted during the years ended December 31, 2018 and 2017: 2018 2017 Expected volatility 31 % 27% Dividend rate 0% 0% Expected term (in years) 3.55 3.55 Risk-free rate 2.65 % 2.01% |
Information About Stock Options Outstanding and Exercisable | The following table summarizes information about stock options outstanding and exercisable at December 31, 2018: Number of Shares Outstanding Weighted Average Exercise Price Weighted Average Grant Date Fair Value Weighted Average Remaining Term (in years) Aggregate Intrinsic Value (in thousands) Option Balances at December 31, 2017 181,385 $ 4.98 $ 1.30 2.4 $ 158 Options Granted 6,067 6.14 1.65 Options Exercised (9,376 ) 3.89 0.94 Options Forfeited (506 ) 4.34 0.87 Options Expired (23,693 ) 7.26 2.33 Option Balances at December 31, 2018 153,877 $ 4.75 $ 1.18 2.0 $ 208 Options Exercisable at December 31, 2018 124,855 $ 4.61 $ 1.19 1.6 $ 186 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Provision for Income Taxes | Income tax provision for the years ended December 31, 2018 and 2017 is as follows: 2018 2017 (in thousands) Current: Federal $ (57 ) $ — State and local 20 18 Foreign 156 43 Total Current 119 61 Deferred: Federal 616 1,637 State and local (86 ) 42 Foreign 46 41 Total before change in valuation allowance 576 1,720 Change in Valuation Allowance (530 ) (1,679 ) Net Deferred 46 41 Income tax provision $ 165 $ 102 |
Reconciliation of Provision for Income Taxes | A reconciliation of the provision for income taxes and the amount computed by applying the statutory federal income tax rate to income before income taxes is detailed below: 2018 2017 (in thousands) Tax provision at expected statutory rate $ 330 $ 75 State taxes, net of federal benefit 43 81 Permanent differences 122 450 Credits (82 ) (106 ) Foreign tax expense, and other 420 (381 ) Change in rate (138 ) 1,662 Change in valuation allowance (530 ) (1,679 ) Provision for income taxes $ 165 $ 102 |
Tax Effects of Temporary Differences and Carry-Forwards | Deferred income taxes for 2018 and 2017 were provided for the temporary differences between the financial reporting basis and the tax basis of the Company's assets and liabilities. Tax effects of temporary differences and carry-forwards at December 31, 2018 and 2017 were as follows: December 31, 2018 December 31, 2017 Deferred Tax Deferred Tax Asset Liability Asset Liability (in thousands) Inventory reserve $ 301 $ — $ 325 $ — Fixed assets — 90 — 141 Other reserves and accruals 207 — 133 — Stock-based compensation 23 — 18 — Other — 24 — 29 Tax credit carry-forwards 1,966 — 2,284 — Federal tax loss carry-forwards 1,980 — 2,380 — State tax loss carry-forwards 734 — 657 — Foreign tax loss carry-forwards 127 — 173 — Total deferred income taxes 5,338 $ 114 5,970 $ 170 Valuation allowance (5,097 ) (5,627 ) Net deferred tax assets $ 127 $ 173 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Assets Measured at Fair Value on Recurring Basis | Assets measured at fair value on a recurring basis are summarized below. (in thousands) Level 1 Level 2 Level 3 Total December 31, 2018 Marketable Equity Security $ 11 $ — $ — $ 11 Equity Mutual Fund $ — $ 3,764 $ — $ 3,764 U.S. Treasury Mutual Fund $ 12,506 $ — $ — $ 12,506 (in thousands) Level 1 Level 2 Level 3 Total December 31, 2017 Marketable Equity Security $ 3,803 $ — $ — $ 3,803 U.S. Treasury Mutual Fund $ 11,866 $ — $ — $ 11,866 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Reportable Business Segment | Years Ended December 31, 2018 2017 (in thousands) Revenues from Operations Electronic components $ 23,793 $ 21,516 Electronic instruments 1,077 886 Total consolidated revenues $ 24,870 $ 22,402 Operating Income from Operations Electronic components $ 2,525 $ 1,260 Electronic instruments 49 56 Unallocated corporate expense (1,144 ) (1,040 ) Consolidated total operating income 1,430 276 Interest income (expense), net 2 (11 ) Other income (expense), net 138 (46 ) Total other income (expense) 140 (57 ) Income Before Income Taxes $ 1,570 $ 219 Capital Expenditures Electronic components $ 324 $ 131 Electronic instruments — — General corporate — — Total capital expenditures $ 324 $ 131 Total Assets Electronic components $ 11,877 $ 11,899 Electronic instruments 861 811 General corporate 17,337 14,845 Consolidated total assets $ 30,075 $ 27,555 |
Domestic and Foreign Revenues (
Domestic and Foreign Revenues (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Revenues [Abstract] | |
Significant Foreign Revenues from Operations | Significant foreign revenues from operations (10% or more of foreign sales) were as follows (in thousands): Years Ended December 31, 2018 2017 (in thousands) Malaysia $ 3,153 $ 3,038 All other foreign countries 3,044 3,275 Total foreign revenues $ 6,197 $ 6,313 Total domestic revenues $ 18,673 $ 16,089 The Company allocates its foreign revenue based on the customer's ship-to location. |
Accounting And Reporting Poli_4
Accounting And Reporting Policies - Subsidiaries of the Company (Details) | 12 Months Ended |
Dec. 31, 2018 | |
M-tron Industries, Inc. [Member] | |
Accounting And Reporting Policies [Line Items] | |
Owned by The LGL Group, Inc. | 100.00% |
Piezo Technology, Inc. [Member] | |
Accounting And Reporting Policies [Line Items] | |
Owned by The LGL Group, Inc. | 100.00% |
Piezo Technology India Private Ltd. [Member] | |
Accounting And Reporting Policies [Line Items] | |
Owned by The LGL Group, Inc. | 99.90% |
M-tron Asia LLC [Member] | |
Accounting And Reporting Policies [Line Items] | |
Owned by The LGL Group, Inc. | 100.00% |
M-tron Industries, Ltd. [Member] | |
Accounting And Reporting Policies [Line Items] | |
Owned by The LGL Group, Inc. | 100.00% |
GC Opportunities Ltd. [Member] | |
Accounting And Reporting Policies [Line Items] | |
Owned by The LGL Group, Inc. | 100.00% |
M-tron Services Ltd [Member] | |
Accounting And Reporting Policies [Line Items] | |
Owned by The LGL Group, Inc. | 100.00% |
Precise Time and Frequenc, LLC [Member] | |
Accounting And Reporting Policies [Line Items] | |
Owned by The LGL Group, Inc. | 100.00% |
Lynch Systems, Inc. [Member] | |
Accounting And Reporting Policies [Line Items] | |
Owned by The LGL Group, Inc. | 100.00% |
Accounting And Reporting Poli_5
Accounting And Reporting Policies - Additional Information (Details) | Jan. 01, 2018USD ($) | Dec. 31, 2018USD ($)CustomerSegmentshares | Dec. 31, 2017USD ($)Customershares |
Accounting And Reporting Policies [Line Items] | |||
Depreciation expense | $ 417,000 | $ 567,000 | |
Term of warranty | 1 year | ||
Accrued Warranty Expense | $ 28,000 | 10,000 | |
Intangible assets carrying value | 437,000 | 512,000 | |
Goodwill | 40,000 | 40,000 | |
Research and development costs | 1,947,000 | 1,827,000 | |
Advertising costs | 24,000 | 18,000 | |
Deferred tax assets | 127,000 | 173,000 | |
Revenue concentration greater than 10% | $ 24,870,000 | 22,402,000 | |
Number of identified reportable segments | Segment | 2 | ||
Re-measurement gain (loss) | $ (74,000) | 22,000 | |
Revenues [Member] | Customer Concentration Risk [Member] | |||
Accounting And Reporting Policies [Line Items] | |||
Revenue concentration greater than 10% | $ 4,436,000 | $ 3,744,000 | |
Concentration risk, percentage | 17.80% | 16.70% | |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | |||
Accounting And Reporting Policies [Line Items] | |||
Concentration risk, percentage | 30.00% | 32.00% | |
Accounts receivable | $ 1,043,000 | $ 1,100,000 | |
Number of large customers | Customer | 4 | 4 | |
Foreign NOLs [Member] | |||
Accounting And Reporting Policies [Line Items] | |||
Deferred tax assets | $ 127,000 | ||
Options [Member] | |||
Accounting And Reporting Policies [Line Items] | |||
Securities excluded from the diluted earnings per share computation (in shares) | shares | 15,608 | 42,676 | |
Warrant [Member] | |||
Accounting And Reporting Policies [Line Items] | |||
Securities excluded from the diluted earnings per share computation (in shares) | shares | 519,241 | ||
ASU 2014-09 [Member] | |||
Accounting And Reporting Policies [Line Items] | |||
Cumulative effect of adoption | $ 0 | ||
Revenue, performance obligation, description of timing | The Company meets these conditions upon the Company’s satisfaction of the performance obligation, usually at the time of shipment to the customer, because control passes to the customer at that time. Our standard terms for customers are net due within 30 days, with a few exceptions, none regularly exceeding 60 days. | ||
ASU 2016-01 [Member] | |||
Accounting And Reporting Policies [Line Items] | |||
Cumulative effect adjustment from adoption of Accounting Standards Update | $ 35,000 | ||
Minimum [Member] | ASU 2014-09 [Member] | |||
Accounting And Reporting Policies [Line Items] | |||
Customer due days | 30 days | ||
Maximum [Member] | |||
Accounting And Reporting Policies [Line Items] | |||
Estimated useful life of intangible assets | 10 years | ||
Maximum [Member] | ASU 2014-09 [Member] | |||
Accounting And Reporting Policies [Line Items] | |||
Customer due days | 60 days | ||
Buildings and Improvements [Member] | Minimum [Member] | |||
Accounting And Reporting Policies [Line Items] | |||
Property, Plant and Equipment, Useful Life | 5 years | ||
Buildings and Improvements [Member] | Maximum [Member] | |||
Accounting And Reporting Policies [Line Items] | |||
Property, Plant and Equipment, Useful Life | 35 years | ||
Other Fixed Assets [Member] | Minimum [Member] | |||
Accounting And Reporting Policies [Line Items] | |||
Property, Plant and Equipment, Useful Life | 3 years | ||
Other Fixed Assets [Member] | Maximum [Member] | |||
Accounting And Reporting Policies [Line Items] | |||
Property, Plant and Equipment, Useful Life | 10 years |
Accounting And Reporting Poli_6
Accounting And Reporting Policies - Future Amortization Expense of Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
2019 | $ 75 | |
2020 | 75 | |
2021 | 75 | |
2022 | 75 | |
2023 | 75 | |
Thereafter | 62 | |
Total | $ 437 | $ 512 |
Accounting And Reporting Poli_7
Accounting And Reporting Policies - Reconciliation of Basic to Diluted Weighted Average Shares Outstanding (Details) - shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | ||
Weighted average shares outstanding - basic | 4,748,609 | 2,929,641 |
Effect of diluted securities | 126,422 | 105,463 |
Weighted average shares outstanding - diluted | 4,875,031 | 3,035,104 |
Inventories - Additional Inform
Inventories - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Inventory reserve for obsolescence | $ 1,266 | $ 1,213 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Classification of Inventories [Abstract] | ||
Raw materials | $ 1,719 | $ 1,526 |
Work in process | 1,807 | 1,337 |
Finished goods | 940 | 1,012 |
Total Inventories, net | $ 4,466 | $ 3,875 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Related Party Transaction [Line Items] | ||
Balance with Fund Manager | $ 16,270 | $ 14,842 |
Investment income generated from mutual funds | $ (28) | $ 21 |
Minimum [Member] | ||
Related Party Transaction [Line Items] | ||
Percentage of stockholders controlling a related party | 10.00% | 10.00% |
Maximum [Member] | ||
Related Party Transaction [Line Items] | ||
Fund management fee percent | 0.25% | |
Other Income [Member] | ||
Related Party Transaction [Line Items] | ||
Investment income generated from mutual funds | $ 203 | |
Cash and Cash Equivalents [Member] | ||
Related Party Transaction [Line Items] | ||
Balance with Fund Manager | 12,506 | $ 11,050 |
Marketable Securities [Member] | ||
Related Party Transaction [Line Items] | ||
Balance with Fund Manager | $ 3,764 | $ 3,792 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Jun. 16, 2016 | Aug. 04, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Dividend rate | 0.00% | 0.00% | ||
Options Granted | $ 1.65 | |||
Shares issued with weighted average grant date fair value | 6,516 | |||
Weighted average grant date fair value of fully vested shares | $ 6.14 | |||
Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Exercise price of options either at or above market price | 10.00% | |||
Term of award | 5 years | |||
Vesting period of award | 3 years | |||
Options Granted | $ 1.65 | $ 1.05 | ||
Unrecognized compensation expense | $ 31,000 | |||
2011 Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized for issuance (in shares) | 750,000 | 500,000 | ||
Number of shares remaining available for future issuance (in shares) | 428,468 | |||
2011 Incentive Plan [Member] | Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unvested restricted shares granted | 0 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Inputs to Option Valuation Model for Options Granted (Details) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Inputs to Option Valuation Model for Options Granted [Abstract] | ||
Expected volatility | 31.00% | 27.00% |
Dividend rate | 0.00% | 0.00% |
Expected term (in years) | 3 years 6 months 18 days | 3 years 6 months 18 days |
Risk-free rate | 2.65% | 2.01% |
Stock-Based Compensation - Info
Stock-Based Compensation - Information About Stock Options Outstanding and Exercisable (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Number of Shares Outstanding [Roll Forward] | ||
Option Balances, beginning of period (in shares) | 181,385 | |
Options Granted (in shares) | 6,067 | |
Options Exercised (in shares) | (9,376) | |
Options Forfeited (in shares) | (506) | |
Options Expired (in shares) | (23,693) | |
Option Balances, end of period (in shares) | 153,877 | 181,385 |
Options Exercisable end of period (in shares) | 124,855 | |
Options, Weighted Average Exercise Price [Roll Forward] | ||
Option Balances, beginning of period (in dollars per share) | $ 4.98 | |
Options Granted (in dollars per share) | 6.14 | |
Options Exercised (in dollars per share) | 3.89 | |
Options Forfeited (in dollars per share) | 4.34 | |
Options Expired (in dollars per share) | 7.26 | |
Option Balances, end of period (in dollars per share) | 4.75 | $ 4.98 |
Options Exercisable, end of period (in dollars per share) | 4.61 | |
Weighted Average Grant Date Fair Value [Roll Forward] | ||
Option Balances, beginning of period | 1.30 | |
Options Granted | 1.65 | |
Options Exercised | 0.94 | |
Options Forfeited | 0.87 | |
Options Expired | 2.33 | |
Option Balances, end of period | 1.18 | $ 1.30 |
Options Exercisable, end of period | $ 1.19 | |
Options, Additional Disclosures [Abstract] | ||
Aggregate intrinsic value, outstanding, beginning of period | $ 158 | |
Aggregate intrinsic value, granted | 0 | |
Aggregate intrinsic value, exercised | 0 | |
Aggregate intrinsic value, forfeited | 0 | |
Aggregate intrinsic value, expired | 0 | |
Aggregate intrinsic value, outstanding, end of period | 208 | $ 158 |
Aggregate intrinsic value, exercisable, end of period | $ 186 | |
Weighted average years remaining, outstanding | 2 years | 2 years 4 months 24 days |
Weighted average years remaining, exercisable, end of period | 1 year 7 months 6 days |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax [Line Items] | ||
Recognized tax expense on remeasurement of certain deferred tax assets and liabiliites | $ 1,662,000 | |
U.S. corporate income tax | 21.00% | 34.00% |
Recognized provisional tax expense on transition tax for repatriation of foreign earnings | $ 565,000 | |
Computation of one-time tax based on liquid asset period | 3 years | |
Tax expense impacted by cash and other liquid assets | 15.50% | |
Tax expense impacted by non-cash E&P | 8.00% | |
Income (loss) before income taxes from domestic operations | $ 972,000 | $ (65,000) |
Profit before income taxes from foreign operations | 598,000 | 284,000 |
Net deferred tax assets | 127,000 | $ 173,000 |
Research and Development Credit Carryforwards [Member] | ||
Income Tax [Line Items] | ||
Tax credit carryforward amount | $ 1,598,000 | |
Research and Development Credit Carryforwards [Member] | Minimum [Member] | ||
Income Tax [Line Items] | ||
Expiration year | 2020 | |
Research and Development Credit Carryforwards [Member] | Maximum [Member] | ||
Income Tax [Line Items] | ||
Expiration year | 2038 | |
Foreign Tax Credit Carryforward [Member] | ||
Income Tax [Line Items] | ||
Tax credit carryforward amount | $ 368,000 | |
Foreign Tax Credit Carryforward [Member] | Minimum [Member] | ||
Income Tax [Line Items] | ||
Expiration year | 2019 | |
Foreign Tax Credit Carryforward [Member] | Maximum [Member] | ||
Income Tax [Line Items] | ||
Expiration year | 2020 | |
Federal [Member] | ||
Income Tax [Line Items] | ||
Net operating loss carryforwards | $ 9,429,000 | |
Expiration year | 2038 | |
State [Member] | ||
Income Tax [Line Items] | ||
Net operating loss carryforwards | $ 15,906,000 | |
Expiration year | 2038 |
Income Taxes - Provision for In
Income Taxes - Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Current: | ||
Federal | $ (57) | $ 0 |
State and local | 20 | 18 |
Foreign | 156 | 43 |
Total Current | 119 | 61 |
Deferred: | ||
Federal | 616 | 1,637 |
State and local | (86) | 42 |
Foreign | 46 | 41 |
Total before change in valuation allowance | 576 | 1,720 |
Change in Valuation Allowance | (530) | (1,679) |
Net Deferred | 46 | 41 |
Income tax provision | $ 165 | $ 102 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of Provision (Benefit) for Income Taxes [Abstract] | ||
Tax provision at expected statutory rate | $ 330 | $ 75 |
State taxes, net of federal benefit | 43 | 81 |
Permanent differences | 122 | 450 |
Credits | (82) | (106) |
Foreign tax expense, and other | 420 | (381) |
Change in rate | (138) | 1,662 |
Change in Valuation Allowance | (530) | (1,679) |
Income tax provision | $ 165 | $ 102 |
Income Taxes - Tax Effects of T
Income Taxes - Tax Effects of Temporary Differences and Carry-Forwards (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred Tax Assets [Abstract] | ||
Inventory reserve | $ 301,000 | $ 325,000 |
Fixed assets | 0 | 0 |
Other reserves and accruals | 207,000 | 133,000 |
Stock-based compensation | 23,000 | 18,000 |
Other | 0 | 0 |
Tax credit carry-forwards | 1,966,000 | 2,284,000 |
Federal tax loss carry-forwards | 1,980,000 | 2,380,000 |
State tax loss carry-forwards | 734,000 | 657,000 |
Foreign tax loss carry-forwards | 127,000 | 173,000 |
Total deferred income taxes | 5,338,000 | 5,970,000 |
Valuation allowance | (5,097,000) | (5,627,000) |
Net deferred tax assets | 127,000 | 173,000 |
Deferred Tax Liabilities [Abstract] | ||
Inventory reserve | 0 | 0 |
Fixed assets | 90,000 | 141,000 |
Other reserves and accruals | 0 | 0 |
Stock-based compensation | 0 | 0 |
Other | 24,000 | 29,000 |
Total deferred income tax liabilities | $ 114,000 | $ 170,000 |
CNB Loan - Additional Informati
CNB Loan - Additional Information (Details) - CNB Revolver [Member] - USD ($) | Dec. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | |||
Line of credit | $ 3,000,000 | ||
Debt instrument maturity date | Sep. 30, 2018 | ||
Percentage of commitment fee on unused capacity | 0.75% | ||
Line of credit facility amount outstanding | $ 0 | ||
30-day LIBOR [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 2.00% |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - USD ($) | Aug. 06, 2018 | Aug. 06, 2013 | Dec. 31, 2018 | Dec. 31, 2017 | Aug. 29, 2011 |
Stockholders Equity Note [Abstract] | |||||
Number of shares authorized and available for repurchase (in shares) | 540,000 | 100,000 | |||
Treasury stock, shares (in shares) | 81,584 | ||||
Value of repurchased common stock | $ 580,000 | $ 580,000 | |||
Total warrants distributed (in shares) | 12,981,025 | ||||
Dividend declaration date | Aug. 6, 2013 | ||||
Dividend date of record | Jul. 29, 2013 | ||||
Number of warrants received for each share of common stock (in shares) | 5 | ||||
Number of warrants that entitle holder to purchase one share of common stock (in shares) | 25 | ||||
Number of common shares callable by warrants (in shares) | 1 | ||||
Warrant exercise price (in dollars per share) | $ 7.50 | ||||
Gross proceeds from warrant exercises | $ 926,948 | $ 927,000 | |||
Issuance of shares on exercise of warrants | 123,593 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets Measured at Fair Value on Recurring Basis (Details) - Recurring [Member] - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Marketable Equity Security [Member] | ||
Fair Value Assets Measured On Recurring Basis [Line Items] | ||
Fair value assets | $ 11 | $ 3,803 |
Equity Mutual Fund [Member] | ||
Fair Value Assets Measured On Recurring Basis [Line Items] | ||
Fair value assets | 3,764 | |
U.S. Treasury Mutual Fund [Member] | ||
Fair Value Assets Measured On Recurring Basis [Line Items] | ||
Fair value assets | 12,506 | 11,866 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Marketable Equity Security [Member] | ||
Fair Value Assets Measured On Recurring Basis [Line Items] | ||
Fair value assets | 11 | 3,803 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Equity Mutual Fund [Member] | ||
Fair Value Assets Measured On Recurring Basis [Line Items] | ||
Fair value assets | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | U.S. Treasury Mutual Fund [Member] | ||
Fair Value Assets Measured On Recurring Basis [Line Items] | ||
Fair value assets | 12,506 | 11,866 |
Significant Other Observable Inputs (Level 2) [Member] | Marketable Equity Security [Member] | ||
Fair Value Assets Measured On Recurring Basis [Line Items] | ||
Fair value assets | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | Equity Mutual Fund [Member] | ||
Fair Value Assets Measured On Recurring Basis [Line Items] | ||
Fair value assets | 3,764 | |
Significant Other Observable Inputs (Level 2) [Member] | U.S. Treasury Mutual Fund [Member] | ||
Fair Value Assets Measured On Recurring Basis [Line Items] | ||
Fair value assets | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Marketable Equity Security [Member] | ||
Fair Value Assets Measured On Recurring Basis [Line Items] | ||
Fair value assets | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Equity Mutual Fund [Member] | ||
Fair Value Assets Measured On Recurring Basis [Line Items] | ||
Fair value assets | 0 | |
Significant Unobservable Inputs (Level 3) [Member] | U.S. Treasury Mutual Fund [Member] | ||
Fair Value Assets Measured On Recurring Basis [Line Items] | ||
Fair value assets | $ 0 | $ 0 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) $ in Thousands | Dec. 31, 2018USD ($)MutualFund | Dec. 31, 2017USD ($) |
Fair Value Assets Measured On Recurring Basis [Line Items] | ||
Number of mutual fund investment | MutualFund | 2 | |
Non-Recurring [Member] | ||
Fair Value Assets Measured On Recurring Basis [Line Items] | ||
Liabilities, fair value disclosure, non-recurring | $ | $ 0 | $ 0 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Compensation And Retirement Disclosure [Abstract] | ||
Employer matching contribution, percentage | 50.00% | |
Employer matching contribution of employees' contribution, percentage | 6.00% | |
Employer matching contribution amount | $ 118,000 | $ 116,000 |
Annual vesting percentage of employer contributions | 20.00% | |
Vesting period of employer matching contributions | 6 years | |
Vesting percentage of employer contributions by year six | 100.00% |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Operating Leased Assets [Line Items] | ||
Rent expense under operating leases | $ 393,000 | $ 285,000 |
Minimum [Member] | ||
Operating Leased Assets [Line Items] | ||
Term of operating leases | 1 year | |
Maximum [Member] | ||
Operating Leased Assets [Line Items] | ||
Term of operating leases | 2 years |
Segment Information - Additiona
Segment Information - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2018Segment | |
Segment Reporting [Abstract] | |
Number of reportable business segments | 2 |
Segment Information - Schedule
Segment Information - Schedule of Reportable Business Segment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues from Operations | ||
Revenues from operations | $ 24,870 | $ 22,402 |
Operating Income from Operations | ||
Consolidated total operating income | 1,430 | 276 |
Interest income (expense), net | 2 | (11) |
Other income (expense), net | 138 | (46) |
Total other income (expense) | 140 | (57) |
Income Before Income Taxes | 1,570 | 219 |
Capital Expenditures | ||
Total capital expenditures | 324 | 131 |
Total Assets | ||
Total assets | 30,075 | 27,555 |
Unallocated corporate expense [Member] | ||
Operating Income from Operations | ||
Consolidated total operating income | (1,144) | (1,040) |
Total Assets | ||
Total assets | 17,337 | 14,845 |
Electronic components [Member] | ||
Revenues from Operations | ||
Revenues from operations | 23,793 | 21,516 |
Electronic components [Member] | Reportable Segment [Member] | ||
Operating Income from Operations | ||
Consolidated total operating income | 2,525 | 1,260 |
Capital Expenditures | ||
Total capital expenditures | 324 | 131 |
Total Assets | ||
Total assets | 11,877 | 11,899 |
Electronic instruments [Member] | ||
Revenues from Operations | ||
Revenues from operations | 1,077 | 886 |
Electronic instruments [Member] | Reportable Segment [Member] | ||
Operating Income from Operations | ||
Consolidated total operating income | 49 | 56 |
Total Assets | ||
Total assets | $ 861 | $ 811 |
Domestic and Foreign Revenues -
Domestic and Foreign Revenues - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Foreign [Member] | Sales Revenue, Segment [Member] | Customer Concentration Risk [Member] | |
Entity Wide Revenue Major Customer [Line Items] | |
Portion of foreign sales | 10.00% |
Domestic and Foreign Revenues_2
Domestic and Foreign Revenues - Significant Foreign Revenues from Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Entity Wide Revenue Major Customer [Line Items] | ||
Revenues from operations | $ 24,870 | $ 22,402 |
Malaysia [Member] | ||
Entity Wide Revenue Major Customer [Line Items] | ||
Revenues from operations | 3,153 | 3,038 |
All other foreign countries [Member] | ||
Entity Wide Revenue Major Customer [Line Items] | ||
Revenues from operations | 3,044 | 3,275 |
Foreign [Member] | ||
Entity Wide Revenue Major Customer [Line Items] | ||
Revenues from operations | 6,197 | 6,313 |
Domestic [Member] | ||
Entity Wide Revenue Major Customer [Line Items] | ||
Revenues from operations | $ 18,673 | $ 16,089 |