Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | May 06, 2019 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | Inrad Optics, Inc. | |
Entity Central Index Key | 0000719494 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Trading Symbol | INRD | |
Entity Common Stock, Shares Outstanding | 13,632,388 | |
Entity Emerging Growth Company | false | |
Entity Small Business | true |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 1,086,783 | $ 1,185,553 |
Accounts receivable (net of allowance for doubtful accounts of $15,000 in 2019 and 2018) | 1,320,814 | 1,296,487 |
Inventories, net | 2,933,536 | 3,015,883 |
Other current assets | 201,661 | 180,893 |
Total current assets | 5,542,794 | 5,678,816 |
Plant and equipment: | ||
Plant and equipment, at cost | 14,794,078 | 14,696,966 |
Less: Accumulated depreciation and amortization | (14,127,781) | (14,069,880) |
Total plant and equipment | 666,297 | 627,086 |
Precious metals | 562,347 | 562,347 |
Intangible assets, net | 23,697 | 32,156 |
Other assets | 32,020 | 32,020 |
Total Assets | 6,827,155 | 6,932,425 |
Current liabilities: | ||
Current portion of other long term notes | 12,960 | 12,960 |
Accounts payable and accrued liabilities | 909,373 | 835,015 |
Contract liabilities | 603,292 | 772,927 |
Total current liabilities | 1,525,625 | 1,620,902 |
Related party convertible notes payable | 2,500,000 | 2,500,000 |
Other long term Notes, net of current portion | 241,548 | 244,781 |
Total liabilities | 4,267,173 | 4,365,683 |
Commitments | ||
Shareholders' equity: | ||
Common stock: $.01 par value; 60,000,000 authorized shares; 13,636,988 shares issued at March 31, 2019 and 13,636,988 shares issued at December 31, 2018 | 136,371 | 136,371 |
Capital in excess of par value | 19,084,990 | 19,055,615 |
Accumulated deficit | (16,646,429) | (16,610,294) |
Stockholders' Equity before Treasury Stock | 2,574,932 | 2,581,692 |
Less - Common stock in treasury, at cost (4,600 shares) | (14,950) | (14,950) |
Total shareholders' equity | 2,559,982 | 2,566,742 |
Total Liabilities and shareholders' equity | $ 6,827,155 | $ 6,932,425 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS [Parenthetical] - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Allowance for doubtful accounts (in dollars) | $ 15,000 | $ 15,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 60,000,000 | 60,000,000 |
Common stock, shares issued | 13,636,988 | 13,636,988 |
Treasury stock, shares | 4,600 | 4,600 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) | Total | Common Stock [Member] | Capital in excess of par value [Member] | Accumulated Deficit [Member] | Treasury Stock [Member] |
Balance at Dec. 31, 2017 | $ 1,685,447 | $ 135,213 | $ 18,882,086 | $ (17,316,902) | $ (14,950) |
Balance (in share) at Dec. 31, 2017 | 13,521,200 | ||||
401K contribution | 0 | $ 0 | 0 | 0 | 0 |
Common stock issued on exercise of options | 0 | 0 | 0 | 0 | 0 |
Stock-based compensation expense | 13,035 | 0 | 13,035 | 0 | 0 |
Net income (loss) for the year | 264,163 | 0 | 0 | 264,163 | 0 |
Balance at Mar. 31, 2018 | 1,962,645 | $ 135,213 | 18,895,121 | (17,052,739) | (14,950) |
Balance (in shares) at Mar. 31, 2018 | 13,521,200 | ||||
Balance at Dec. 31, 2018 | 2,566,742 | $ 136,371 | 19,055,615 | (16,610,294) | (14,950) |
Balance (in share) at Dec. 31, 2018 | 13,636,988 | ||||
401K contribution | 0 | $ 0 | 0 | 0 | 0 |
Common stock issued on exercise of options | 0 | 0 | 0 | 0 | 0 |
Stock-based compensation expense | 29,375 | 0 | 29,375 | 0 | 0 |
Net income (loss) for the year | (36,135) | 0 | 0 | (36,135) | 0 |
Balance at Mar. 31, 2019 | $ 2,559,982 | $ 136,371 | $ 19,084,990 | $ (16,646,429) | $ (14,950) |
Balance (in shares) at Mar. 31, 2019 | 13,636,988 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Total revenue | $ 2,601,060 | $ 3,302,429 |
Cost and expenses: | ||
Cost of goods sold | 1,956,280 | 2,452,205 |
Selling, general and administrative expenses | 642,254 | 543,999 |
Costs and Expenses, Total | 2,598,534 | 2,996,204 |
Income from operations | 2,526 | 306,225 |
Other expense: | ||
Interest expense—net | (38,661) | (39,774) |
Loss on exchange of precious metals | 0 | (2,288) |
Nonoperating Income (Expense) | (38,661) | (42,062) |
Income (loss) before income taxes | (36,135) | 264,163 |
Income tax (provision) benefit | 0 | 0 |
Net income (loss) | $ (36,135) | $ 264,163 |
Net (loss) income per common share — basic | $ 0 | $ 0.02 |
Net (loss) income per common share — diluted | $ 0 | $ 0.02 |
Weighted average shares outstanding — basic | 13,632,388 | 13,516,600 |
Weighted average shares outstanding — diluted | 13,632,388 | 16,533,296 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (36,135) | $ 264,163 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 66,360 | 73,049 |
Loss on exchange of precious metals | 0 | 2,288 |
Stock based compensation | 29,375 | 13,035 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (24,327) | (497,802) |
Inventories, net | 82,347 | 367,884 |
Other current assets | (20,768) | (29,749) |
Accounts payable and accrued liabilities | 74,358 | (126,474) |
Contract Liabilities | (169,635) | (355,777) |
Total adjustments and changes | 37,710 | (553,546) |
Net cash provided by (used in) operating activities | 1,575 | (289,383) |
Cash flows from investing activities: | ||
Capital expenditures | (97,112) | (13,790) |
Purchase of precious metals | 0 | (875) |
Net cash (used in) investing activities | (97,112) | (14,665) |
Cash flows from financing activities: | ||
Principal payments on notes payable-other | (3,233) | (3,110) |
Net cash (used in) financing activities | (3,233) | (3,110) |
Net (decrease) in cash and cash equivalents | (98,770) | (307,158) |
Cash and cash equivalents at beginning of period | 1,185,553 | 799,953 |
Cash and cash equivalents at end of period | 1,086,783 | 492,795 |
Supplemental Disclosure of Cash Flow Information: | ||
Interest paid | 40,033 | 40,156 |
Income taxes paid | $ 0 | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of Inrad Optics, Inc. and its subsidiaries (collectively, the “Company”). All significant intercompany balances and transactions have been eliminated. The condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments of a normal recurring nature considered necessary for a fair presentation have been included. The results of operations of any interim period are not necessarily indicative of the results of operations to be expected for the full fiscal year. For further information, refer to the consolidated financial statements and accompanying footnotes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018. In preparing these unaudited condensed consolidated financial statements, the Company has evaluated events and transactions for potential recognition or disclosure through the date the unaudited condensed consolidated financial statements were issued. Management Estimates These unaudited condensed consolidated financial statements and related disclosures have been prepared in conformity with U.S. GAAP which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses reported in those financial statements. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, and makes adjustments when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could differ significantly from those estimates and assumptions. Significant changes, if any, in those estimates resulting from continuing changes in the economic environment will be reflected in the consolidated financial statements in future periods. Accounts Receivable Accounts receivable are carried at net realizable value, net of write-offs and allowances. The Company establishes an allowance for doubtful accounts based on estimates as to the collectability of accounts receivable. Management specifically analyzes past-due accounts receivable balances and, additionally, considers bad debt history, customer credit-worthiness, current economic trends and changes in customer payment terms when evaluating the adequacy of the allowance for doubtful accounts. Uncollectible accounts receivable are written-off when it is determined that the balance will not be collected. Reserves for uncollectible accounts receivable are recorded as part of selling, general and administrative expenses in the Consolidated Statements of Operations, and were approximately $15,000 at March 31, 2019. Inventories Inventories are stated at the lower of cost (first-in-first-out basis) and net realizable value. The Company records a reserve for slow moving inventory as a charge against earnings for all products identified as surplus, slow-moving or discontinued. Excess work-in-process costs are charged against earnings whenever estimated costs-of-completion exceed unbilled revenues. Inventories are comprised of the following and are shown net of inventory reserves, in thousands: March 30, 2019 December 31, 2018 (Unaudited) Raw materials $ 1,161 $ 1,143 Work in process, including manufactured parts and components 1,419 1,389 Finished goods 354 484 $ 2,934 $ 3,016 Income Taxes The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the Company’s financial statements or tax returns. Deferred tax assets and liabilities are determined based on the difference between the financial statements carrying amounts and the tax basis of assets and liabilities using enacted tax rates in effect in the year in which the differences are expected to reverse. In evaluating the Company’s ability to recover deferred tax assets in future periods, management considers the available positive and negative factors, including the Company’s recent operating results, the existence of cumulative losses and near term forecasts of future taxable income consistent with the plans and estimates that management uses to manage the underlying business. A significant piece of objective negative evidence evaluated was the cumulative loss incurred by the Company over the three years period ended December 31, 2018. Such objective evidence limits the ability to consider other subjective evidence such as our projections for future growth. On the basis of this evaluation as of March 31, 2019, the Company’s management concluded that it is more likely than not that the Company will not be able to realize any portion of the benefit on the net deferred tax balance of $3,478,000 a For the three months ended March 31, 2018, the Company did not record a current provision for income taxes due to the availability of net operating loss carryforwards to offset taxable income for both federal and state tax purposes. For the three months ended March 31, 2019, the Company did not record a current provision for either state tax or federal tax due to the losses incurred for both income tax and financial reporting purposes. Net Income (Loss) per Common Share Basic net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of common shares and common stock equivalents outstanding, calculated on the treasury stock method for options, stock grants and warrants using the average market prices during the period, including potential common shares issuable upon conversion of outstanding convertible notes, except if the effect on the per share amounts is anti-dilutive. For the three months ended March 31, 2019, all common stock equivalents were excluded from the computation of diluted net loss per share because their effect is anti-dilutive. This included 2,500,000 common shares and 1,875,000 common shares from warrants issuable upon conversion of outstanding related party convertible notes, in addition to 1,228,267 common stock options. For the three months ended March 31, 2018, a total of 14,941 stock options, 1,875,000 warrants issuable upon conversion of outstanding convertible notes and 84,375 warrants issuable on conversion of accrued interest on convertible notes were excluded from the computation of diluted net income per common share. A reconciliation of the shares used in the calculation of basic and diluted earnings (loss) per common share is as follows: Three Months Ended March 31, 2019 Three Months Ended March 31, 2018 Income (Loss) (Numerator) Shares (Denominator) Per Share Amount Income (Loss) (Numerator) Shares (Denominator) Per Share Amount Basic Income (Loss) Per Share: Net Income (Loss) $ (36,135 ) 13,632,388 $ 0.00 $ 264,163 13,516,600 $ 0.02 Effect of dilutive securities: Convertible Notes — — 37,500 2,500,000 Accrued Interest on Convertible Notes — — — 112,500 Warrants — — — — Stock Options — — — 404,196 Diluted Income (Loss) Per Share: Net Income (Loss) $ (36,135 ) 13,632,388 $ 0.00 $ 301,663 16,533,296 $ 0.02 Stock-Based Compensation Stock-based compensation expense is estimated at the grant date based on the fair value of the award. The Company estimates the fair value of stock options granted using the Black-Scholes option pricing model. The fair value of restricted stock units granted is based on the closing market price of the Company’s common stock on the date of the grant. The fair value of these awards, adjusted for estimated forfeitures, is amortized over the requisite service period of the award, which is generally the vesting period. Recently Adopted Accounting Standards In May 2014, the FASB issued Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”), which supersedes the revenue recognition requirements in ASC 605, “Revenue Recognition.” ASU 2014-09 is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. It also requires additional disclosure about the nature, amount, timing, and uncertainty of revenue, cash flows arising from customer contracts, including significant judgments and changes in judgments, and assets recognized from costs incurred to obtain or fulfill a contract. ASU 2014-09 is effective for fiscal years beginning after December 15, 2017, including interim periods within that reporting period. The Company adopted the provisions of ASU 2014-09 on January 1, 2018, using the modified retrospective approach. Revenue from the Company’s sales continue to generally be recognized either when products are shipped (i.e. point in time) or under certain long-term government contracts, as the Company transfers control of the product or service to its customers (i.e. over time), which approximates the previously used percentage-of-completion method of accounting. As such, the adoption of ASU 2014-09 had no material impact to the Company’s financial position or results of operations; however, the Company has now presented the disclosures required by this new standard, refer to Note 2. In February 2016, the FASB created Topic 842 and issued ASU 2016-02, Leases. The guidance in this update supersedes Topic 840, Leases. This ASU requires lessees to recognize a right-of-use assets and a lease liability, initially measured at the present value of the lease payments on the balance sheet. For public companies, the amendments will be effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Earlier application is permitted. The Company has adopted ASU 2016-02 on its financial statements and disclosure. The adoption of ASU 2016-02 did not have a material effect on the financial statements. |
REVENUE
REVENUE | 3 Months Ended |
Mar. 31, 2019 | |
Revenues [Abstract] | |
Revenue from Contract with Customer [Text Block] | NOTE 2 – REVENUE The Company’s revenues are comprised of product sales as well as products and services provided under long-term government contracts with its customers. All revenue is recognized when the Company satisfies its performance obligation(s) under the contract (either implicit or explicit) by transferring the promised product or service to its customer either when (or as) its customer obtains control of the product or service. A performance obligation is a promise in a contract to transfer a distinct product or service to a customer. A contract’s transaction price is allocated to each distinct performance obligation. The majority of the Company’s contracts have a single performance obligation, as the promise to transfer products or services is not separately identifiable from other promises in the contract and, therefore, not distinct. For contracts with multiple performance obligations, the Company allocates the contract’s transaction price to each performance obligation using the Company’s best estimate of a standalone selling price for each distinct product or service in the contract, which is generally based on an observable price. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring products or providing services. As such, revenue is recorded net of returns, allowances, customer discounts, and incentives. Sales, value add, and other taxes collected from customers and remitted to governmental authorities are accounted for on a net (excluded from revenues) basis. Shipping and handling costs are included in cost of goods sold. The Company’s performance obligations under long-term government contracts are generally satisfied over time. Revenue from products or services transferred to customers over time accounted for approximately 3.6% and 3.1% of revenue for the three months ended March 31, 2019 and 2018, respectively. Revenue under these long-term government contracts is generally recognized over time using an input measure based upon the proportion of actual costs incurred to estimated total project costs, which is a method used to best depict the Company’s performance to date under the terms of the contract. Accounting for these long-term government contracts involves the use of various techniques to estimate total revenue and costs. The Company estimates profit on these long-term government contracts as the difference between total estimated revenue and expected costs to complete a contract and recognizes that profit over the life of the contract. Contract estimates are based on various assumptions to project the outcome of future events that may span several years. These assumptions include, among other things, labor productivity, costs and availability of materials, and timing of funding by the U.S. government. The nature of these long-term agreements may give rise to several types of variable consideration, such as claims, awards and incentive fees. Historically, these amounts of variable consideration are not considered significant. Additionally, contract estimates may include additional revenue for submitted contract modifications if there exists an enforceable right to the modification, the amount can be reasonably estimated and its realization is probable. These estimates are based on historical collection experience, anticipated performance, and the Company’s best judgement at the time. These amounts are generally included in the contract’s transaction price and are allocated over the remaining performance obligations. Changes in judgments on these above estimates could impact the timing and amount of revenue recognized with a resulting impact on the timing and amount of associated income. Under these long-term government contracts, the Company may receive payments from customers based upon contractual billing schedules; accounts receivable are recorded when the right to consideration becomes unconditional. In the event a contract loss becomes known, the entire amount of the estimated loss is recognized in the Consolidated Statements of Operations. The majority of the Company’s revenue is from products and services transferred to customers at a point in time and was approximately 96.4% and 96.9% of revenue for the three months ended March 31, 2019 and 2018, respectively. The Company recognizes revenue at the point in time in which the customer obtains control of the product or service, which is generally when product title passes to the customer upon shipment. In limited cases, title does not transfer and revenue is not recognized until the customer has received the products at its physical location. As part of the adoption of Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers (Topic 606)”, the Company reviewed its sales by market area and reassigned certain customers within the existing markets. The following table summarizes the Company’s sales by market area: Three Months Ended March 31, 2019 2018 Aerospace & Defense $ 1,040,557 $ 1,029,007 Process Control & Metrology 1,120,987 1,557,816 Laser Systems 284,990 366,230 Scientific / R&D 154,526 349,376 Total $ 2,601,060 $ 3,302,429 Net sales by timing to transfers of goods and services is as follows: Three Months Ended March 31, 2019 2018 Transfer at point in time $ 2,507,507 $ 3,198,780 Transfer over time 93,553 103,649 Total net sales $ 2,601,060 $ 3,302,429 The timing of revenue recognition, billings and cash collections results in billed receivables, costs in excess of billings (contract assets), and billings in excess of costs (contract liabilities, previously deferred revenue) on the Consolidated Balance Sheet. Contract liabilities additionally include customer advances or prepayments. Costs in excess of billings and billings in excess of costs associated with long-term government contracts were not significant at March 31, 2019 or 2018. Revenue recognized during the three months ended March 31, 2019 and 2018, that was included in contract liabilities at the beginning of the period was $218,535 and $551,843, respectively. On March 31, 2019, the Company has approximately $5,729,561 of remaining performance obligations, which is also referred to as backlog. Approximately 1% of the March 31, 2019 backlog is related to projects that will extend beyond March 31, 2020. |
EQUITY COMPENSATION PROGRAM AND
EQUITY COMPENSATION PROGRAM AND STOCK BASED COMPENSATION | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | NOTE 3- EQUITY COMPENSATION PROGRAM AND STOCK BASED COMPENSATION a) Stock Option Expense The Company's results of operations for the three months ended March 31, 2019 and 2018, include stock-based compensation expense for stock option grants totaling $ 29,375 and $13,035, respectively. Such amounts have been included in the accompanying Condensed Consolidated Statements of Operations within cost of goods sold in the amount of $ 8,372 ($3,583 for 2018) , and selling, general and administrative expenses in the amount of $ 21,003 ($9,452 for 2018) . As of March 31, 2019 and 2018 , there were $282,442 and $76,451 of unrecognized compensation cost, net of estimated forfeitures, related to non-vested stock options, which are expected to be recognized over a weighted average period of approximately 1.70 years and 1.25 years, respectively. There were 185,000 stock options granted during the three months ended March 31, 2019 and no stock options granted in the three months ended March 31, 2018. The following range of weighted-average assumptions were used to determine the fair value of stock option grants during the three months ended March 31, 2019, and 2018: Three Months Ended March 31, 2019 2018 Expected Dividend yield — % — % Expected Volatility 139 % — % Risk-free interest rate 2.43 % — % Expected term 10 years — b) Stock Option Activity The following table represents stock options granted, exercised and forfeited during the three months ended March 31, 201 9 : Stock Options Number of Options Weighted Average Exercise Price per Option Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value Outstanding at January 1, 2019 1,058,208 $ .64 5.58 $ 337,997 Granted 185,000 .71 Exercised — — Expired/Forfeited (14,941 ) 1.75 Outstanding at March 31, 2019 1,228,267 $ .64 6.53 $ 1,202,577 Exercisable at March 31, 2019 866,598 $ .58 4.78 $ 701,342 The following table represents non-vested stock options granted, vested and forfeited for the three months ended March 31, 2019 . Options Weighted-Average Grant-Date Fair Value ($) Non-vested - January 1, 2019 349,491 .74 Granted 185,000 .71 Vested (172,822 ) .63 Forfeited — — Non-vested – March 31, 2019 361,669 .77 |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 3 Months Ended |
Mar. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | NOTE 4- STOCKHOLDERS’ EQUITY In February 2019, the Company approved a matching contribution to participants in the Inrad Optics 401k Plan (the “Plan”) for the year ended December 31, 2018. In total, cash in the amount of $31,196 and 98,189 common shares of Inrad Optics, Inc will be contributed to the Plan in the second quarter of 2019. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended |
Mar. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | NOTE 5 – RELATED PARTY TRANSACTIONS On April 12, 2018, the maturity dates of a $1,500,000 Subordinated Convertible Promissory Note to Clarex Limited (“Clarex”) and a $1,000,000 Subordinated Convertible Promissory Note to an affiliate of Clarex were each extended to April 1, 2021 from April 1, 2019. The notes bear interest at 6%. Interest accrues yearly and is payable on maturity. Unpaid interest, along with principal, may be converted into securities of the Company as follows: the notes are convertible in the aggregate into 1,500,000 units and 1,000,000 units, respectively, with each unit consisting of one share of common stock and one warrant. Each warrant allows the holder to acquire 0.75 shares of common stock at a price of $1.35 per share. As part of the agreement, the expiration dates of the warrants were extended from April 1, 2022 to April 1, 2024. As of March 31, 2019, the Company had accrued interest in the amount of $75,000 associated with these notes. |
OTHER LONG TERM NOTES
OTHER LONG TERM NOTES | 3 Months Ended |
Mar. 31, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities Disclosure [Text Block] | NOTE 6 – OTHER LONG TERM NOTES Other Long Term Notes consist of the following: March 31, December 31, 2019 2018 (in thousands) U.S. Small Business Administration term note payable in equal monthly installments of $ 1,922 4.0% 255 258 Less current portion (13 ) (13 ) Long-term debt, excluding current portion $ 242 $ 245 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of Inrad Optics, Inc. and its subsidiaries (collectively, the “Company”). All significant intercompany balances and transactions have been eliminated. The condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments of a normal recurring nature considered necessary for a fair presentation have been included. The results of operations of any interim period are not necessarily indicative of the results of operations to be expected for the full fiscal year. For further information, refer to the consolidated financial statements and accompanying footnotes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018. In preparing these unaudited condensed consolidated financial statements, the Company has evaluated events and transactions for potential recognition or disclosure through the date the unaudited condensed consolidated financial statements were issued. |
Use of Estimates, Policy [Policy Text Block] | Management Estimates These unaudited condensed consolidated financial statements and related disclosures have been prepared in conformity with U.S. GAAP which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses reported in those financial statements. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, and makes adjustments when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could differ significantly from those estimates and assumptions. Significant changes, if any, in those estimates resulting from continuing changes in the economic environment will be reflected in the consolidated financial statements in future periods. |
Trade and Other Accounts Receivable, Policy [Policy Text Block] | Accounts Receivable Accounts receivable are carried at net realizable value, net of write-offs and allowances. The Company establishes an allowance for doubtful accounts based on estimates as to the collectability of accounts receivable. Management specifically analyzes past-due accounts receivable balances and, additionally, considers bad debt history, customer credit-worthiness, current economic trends and changes in customer payment terms when evaluating the adequacy of the allowance for doubtful accounts. Uncollectible accounts receivable are written-off when it is determined that the balance will not be collected. Reserves for uncollectible accounts receivable are recorded as part of selling, general and administrative expenses in the Consolidated Statements of Operations, and were approximately $15,000 at March 31, 2019. |
Inventory, Policy [Policy Text Block] | Inventories Inventories are stated at the lower of cost (first-in-first-out basis) and net realizable value. The Company records a reserve for slow moving inventory as a charge against earnings for all products identified as surplus, slow-moving or discontinued. Excess work-in-process costs are charged against earnings whenever estimated costs-of-completion exceed unbilled revenues. Inventories are comprised of the following and are shown net of inventory reserves, in thousands: March 30, 2019 December 31, 2018 (Unaudited) Raw materials $ 1,161 $ 1,143 Work in process, including manufactured parts and components 1,419 1,389 Finished goods 354 484 $ 2,934 $ 3,016 |
Income Tax, Policy [Policy Text Block] | Income Taxes The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the Company’s financial statements or tax returns. Deferred tax assets and liabilities are determined based on the difference between the financial statements carrying amounts and the tax basis of assets and liabilities using enacted tax rates in effect in the year in which the differences are expected to reverse. In evaluating the Company’s ability to recover deferred tax assets in future periods, management considers the available positive and negative factors, including the Company’s recent operating results, the existence of cumulative losses and near term forecasts of future taxable income consistent with the plans and estimates that management uses to manage the underlying business. A significant piece of objective negative evidence evaluated was the cumulative loss incurred by the Company over the three years period ended December 31, 2018. Such objective evidence limits the ability to consider other subjective evidence such as our projections for future growth. On the basis of this evaluation as of March 31, 2019, the Company’s management concluded that it is more likely than not that the Company will not be able to realize any portion of the benefit on the net deferred tax balance of $3,478,000 a For the three months ended March 31, 2018, the Company did not record a current provision for income taxes due to the availability of net operating loss carryforwards to offset taxable income for both federal and state tax purposes. For the three months ended March 31, 2019, the Company did not record a current provision for either state tax or federal tax due to the losses incurred for both income tax and financial reporting purposes. |
Earnings Per Share, Policy [Policy Text Block] | Net Income (Loss) per Common Share Basic net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of common shares and common stock equivalents outstanding, calculated on the treasury stock method for options, stock grants and warrants using the average market prices during the period, including potential common shares issuable upon conversion of outstanding convertible notes, except if the effect on the per share amounts is anti-dilutive. For the three months ended March 31, 2019, all common stock equivalents were excluded from the computation of diluted net loss per share because their effect is anti-dilutive. This included 2,500,000 common shares and 1,875,000 common shares from warrants issuable upon conversion of outstanding related party convertible notes, in addition to 1,228,267 common stock options. For the three months ended March 31, 2018, a total of 14,941 stock options, 1,875,000 warrants issuable upon conversion of outstanding convertible notes and 84,375 warrants issuable on conversion of accrued interest on convertible notes were excluded from the computation of diluted net income per common share. A reconciliation of the shares used in the calculation of basic and diluted earnings (loss) per common share is as follows: Three Months Ended March 31, 2019 Three Months Ended March 31, 2018 Income (Loss) (Numerator) Shares (Denominator) Per Share Amount Income (Loss) (Numerator) Shares (Denominator) Per Share Amount Basic Income (Loss) Per Share: Net Income (Loss) $ (36,135 ) 13,632,388 $ 0.00 $ 264,163 13,516,600 $ 0.02 Effect of dilutive securities: Convertible Notes — — 37,500 2,500,000 Accrued Interest on Convertible Notes — — — 112,500 Warrants — — — — Stock Options — — — 404,196 Diluted Income (Loss) Per Share: Net Income (Loss) $ (36,135 ) 13,632,388 $ 0.00 $ 301,663 16,533,296 $ 0.02 |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Stock-Based Compensation Stock-based compensation expense is estimated at the grant date based on the fair value of the award. The Company estimates the fair value of stock options granted using the Black-Scholes option pricing model. The fair value of restricted stock units granted is based on the closing market price of the Company’s common stock on the date of the grant. The fair value of these awards, adjusted for estimated forfeitures, is amortized over the requisite service period of the award, which is generally the vesting period. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Adopted Accounting Standards In May 2014, the FASB issued Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”), which supersedes the revenue recognition requirements in ASC 605, “Revenue Recognition.” ASU 2014-09 is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. It also requires additional disclosure about the nature, amount, timing, and uncertainty of revenue, cash flows arising from customer contracts, including significant judgments and changes in judgments, and assets recognized from costs incurred to obtain or fulfill a contract. ASU 2014-09 is effective for fiscal years beginning after December 15, 2017, including interim periods within that reporting period. The Company adopted the provisions of ASU 2014-09 on January 1, 2018, using the modified retrospective approach. Revenue from the Company’s sales continue to generally be recognized either when products are shipped (i.e. point in time) or under certain long-term government contracts, as the Company transfers control of the product or service to its customers (i.e. over time), which approximates the previously used percentage-of-completion method of accounting. As such, the adoption of ASU 2014-09 had no material impact to the Company’s financial position or results of operations; however, the Company has now presented the disclosures required by this new standard, refer to Note 2. In February 2016, the FASB created Topic 842 and issued ASU 2016-02, Leases. The guidance in this update supersedes Topic 840, Leases. This ASU requires lessees to recognize a right-of-use assets and a lease liability, initially measured at the present value of the lease payments on the balance sheet. For public companies, the amendments will be effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Earlier application is permitted. The Company has adopted ASU 2016-02 on its financial statements and disclosure. The adoption of ASU 2016-02 did not have a material effect on the financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | Inventories are comprised of the following and are shown net of inventory reserves, in thousands: March 30, 2019 December 31, 2018 (Unaudited) Raw materials $ 1,161 $ 1,143 Work in process, including manufactured parts and components 1,419 1,389 Finished goods 354 484 $ 2,934 $ 3,016 |
Schedule Of Reconciliation Of Shares Used In Calculation Of Basic And Diluted Earnings Per Common Share [Table Text Block] | A reconciliation of the shares used in the calculation of basic and diluted earnings (loss) per common share is as follows: Three Months Ended March 31, 2019 Three Months Ended March 31, 2018 Income (Loss) (Numerator) Shares (Denominator) Per Share Amount Income (Loss) (Numerator) Shares (Denominator) Per Share Amount Basic Income (Loss) Per Share: Net Income (Loss) $ (36,135 ) 13,632,388 $ 0.00 $ 264,163 13,516,600 $ 0.02 Effect of dilutive securities: Convertible Notes — — 37,500 2,500,000 Accrued Interest on Convertible Notes — — — 112,500 Warrants — — — — Stock Options — — — 404,196 Diluted Income (Loss) Per Share: Net Income (Loss) $ (36,135 ) 13,632,388 $ 0.00 $ 301,663 16,533,296 $ 0.02 |
REVENUE (Tables)
REVENUE (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Revenues [Abstract] | |
Disaggregation of Revenue [Table Text Block] | The following table summarizes the Company’s sales by market area: Three Months Ended March 31, 2019 2018 Aerospace & Defense $ 1,040,557 $ 1,029,007 Process Control & Metrology 1,120,987 1,557,816 Laser Systems 284,990 366,230 Scientific / R&D 154,526 349,376 Total $ 2,601,060 $ 3,302,429 Net sales by timing to transfers of goods and services is as follows: Three Months Ended March 31, 2019 2018 Transfer at point in time $ 2,507,507 $ 3,198,780 Transfer over time 93,553 103,649 Total net sales $ 2,601,060 $ 3,302,429 |
EQUITY COMPENSATION PROGRAM A_2
EQUITY COMPENSATION PROGRAM AND STOCK BASED COMPENSATION (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | The following range of weighted-average assumptions were used to determine the fair value of stock option grants during the three months ended March 31, 2019, and 2018: Three Months Ended March 31, 2019 2018 Expected Dividend yield — % — % Expected Volatility 139 % — % Risk-free interest rate 2.43 % — % Expected term 10 years — |
Share-based Compensation, Stock Options, Activity [Table Text Block] | Stock Options Number of Options Weighted Average Exercise Price per Option Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value Outstanding at January 1, 2019 1,058,208 $ .64 5.58 $ 337,997 Granted 185,000 .71 Exercised — — Expired/Forfeited (14,941 ) 1.75 Outstanding at March 31, 2019 1,228,267 $ .64 6.53 $ 1,202,577 Exercisable at March 31, 2019 866,598 $ .58 4.78 $ 701,342 |
Share Based Compensation Arrangement By Share Based Payment Award Options Non Vested [Table Text Block] | The following table represents non-vested stock options granted, vested and forfeited for the three months ended March 31, 2019 . Options Weighted-Average Grant-Date Fair Value ($) Non-vested - January 1, 2019 349,491 .74 Granted 185,000 .71 Vested (172,822 ) .63 Forfeited — — Non-vested – March 31, 2019 361,669 .77 |
OTHER LONG TERM NOTES (Tables)
OTHER LONG TERM NOTES (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Debt [Table Text Block] | Other Long Term Notes consist of the following: March 31, December 31, 2019 2018 (in thousands) U.S. Small Business Administration term note payable in equal monthly installments of $ 1,922 4.0% 255 258 Less current portion (13 ) (13 ) Long-term debt, excluding current portion $ 242 $ 245 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Inventory [Line Items] | ||
Raw materials | $ 1,161,000 | $ 1,143,000 |
Work in process, including manufactured parts and components | 1,419,000 | 1,389,000 |
Finished goods | 354,000 | 484,000 |
Inventories, net | $ 2,933,536 | $ 3,015,883 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income(Loss) (Numerator) | ||
Net Income (Loss) | $ (36,135) | $ 264,163 |
Dilutive Securities, Effect on Basic Earnings Per Share, Dilutive Convertible Securities | 0 | 37,500 |
Dilutive Securities, Effect on Basic Earnings Per Share, Dilutive Accrued Interest On Convertible Notes | 0 | 0 |
Dilutive Securities, Effect on Basic Earnings Per Share, Dilutive Warrants | 0 | 0 |
Dilutive Securities, Effect on Basic Earnings Per Share, Options and Restrictive Stock Units | 0 | 0 |
Diluted Income (Loss) Per Share: | ||
Net Income (Loss) | $ (36,135) | $ 301,663 |
Shares (Denominator) | ||
Weighted Average Number of Shares Outstanding, Basic | 13,632,388 | 13,516,600 |
Incremental Common Shares Attributable to Dilutive Effect of Conversion of Debt Securities | 0 | 2,500,000 |
Incremental Common Shares Attributable to Dilutive Effect of Accrued Interest On Convertible Notes | 0 | 112,500 |
Incremental Common Shares Attributable to Dilutive Effect of Call Options and Warrants | 0 | 0 |
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 0 | 404,196 |
Diluted Income (Loss) Per Share: | ||
Weighted Average Number of Shares Outstanding, Diluted | 13,632,388 | 16,533,296 |
Basic Income (Loss) Per Share: | ||
Earnings Per Share, Basic | $ 0 | $ 0.02 |
Diluted Income (Loss) Per Share: | ||
Earnings Per Share, Diluted | $ 0 | $ 0.02 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Textuals) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Nature Of Business And Operations And Summary Of Significant Accounting Policies And Estimates [Line Items] | ||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 34.00% | ||
Deferred Tax Assets, Valuation Allowance | $ 3,478,000 | |||
Increase Decrease In Deferred Tax Assets | $ 1,765,000 | |||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | $ 1,765,000 | |||
Selling Expense [Member] | ||||
Nature Of Business And Operations And Summary Of Significant Accounting Policies And Estimates [Line Items] | ||||
Provision for Doubtful Accounts | $ 15,000 | |||
Warrant [Member] | ||||
Nature Of Business And Operations And Summary Of Significant Accounting Policies And Estimates [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 1,875,000 | 1,875,000 | ||
Warrant [Member] | Accrued Interest On Convertible Notes Payable [Member] | ||||
Nature Of Business And Operations And Summary Of Significant Accounting Policies And Estimates [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 84,375 | |||
Equity Option [Member] | ||||
Nature Of Business And Operations And Summary Of Significant Accounting Policies And Estimates [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 1,228,267 | 14,941 | ||
Common Stock [Member] | ||||
Nature Of Business And Operations And Summary Of Significant Accounting Policies And Estimates [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 2,500,000 |
REVENUE (Details)
REVENUE (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 2,601,060 | $ 3,302,429 |
Transferred at Point in Time [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 2,507,507 | 3,198,780 |
Transferred over Time [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 93,553 | 103,649 |
Aerospace & Defense [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 1,040,557 | 1,029,007 |
Process Control & Metrology [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 1,120,987 | 1,557,816 |
Laser Systems [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 284,990 | 366,230 |
Scientific / R&D [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 154,526 | $ 349,376 |
REVENUE (Details Textual)
REVENUE (Details Textual) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Contract with Customer, Liability, Change in Timeframe, Performance Obligation Satisfied, Revenue Recognized | $ 218,535 | $ 551,843 |
Revenue, Remaining Performance Obligation | $ 5,729,561 | |
Revenue, Remaining Performance Obligation, Percentage | 1.00% | |
Transferred over Time [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Percentage of Revenue from Products or Services | 3.60% | 3.10% |
Transferred at Point in Time [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Percentage of Revenue from Products or Services | 96.40% | 96.90% |
EQUITY COMPENSATION PROGRAM A_3
EQUITY COMPENSATION PROGRAM AND STOCK BASED COMPENSATION (Details) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected Dividend yield | 0.00% | 0.00% |
Expected Volatility | 139.00% | 0.00% |
Risk-free interest rate | 2.43% | 0.00% |
Expected term | 10 years |
EQUITY COMPENSATION PROGRAM A_4
EQUITY COMPENSATION PROGRAM AND STOCK BASED COMPENSATION (Details 1) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options, Granted | 185,000 | |
Employee Stock Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options, Outstanding at January 1, 2019 | 1,058,208 | |
Options, Granted | 185,000 | |
Options, Exercised | 0 | |
Option, Expired/Forfeited | (14,941) | |
Options, Outstanding at March 31, 2019 | 1,228,267 | 1,058,208 |
Options, Exercisable at March 31, 2019 | 866,598 | |
Weighted Average Exercise Price Per Options Outstanding at January 1, 2019(in dollars per share) | $ 0.64 | |
Weighted Average Exercise Price per Option, Granted | 0.71 | |
Weighted Average Exercise Price per Option, Exercised | 0 | |
Weighted Average Exercise Price per Option, Expired/Forfeited | 1.75 | |
Weighted Average Exercise Price Options, Outstanding at March 31 , 2019 (in dollars per share) | 0.64 | $ 0.64 |
Weighted Average Exercise Price per Option, Exercisable at March 31, 2019 | $ 0.58 | |
Weighted Average Remaining Contractual Term, Options Outstanding | 6 years 6 months 10 days | 5 years 6 months 29 days |
Weighted Average Remaining Contractual Term, Exercisable at March 31, 2019 | 4 years 9 months 10 days | |
Aggregate Intrinsic Value, Options Outstanding (in dollars) | $ 1,202,577 | $ 337,997 |
Aggregate Intrinsic Value, Options Exercisable at March 31, 2019 | $ 701,342 |
EQUITY COMPENSATION PROGRAM A_5
EQUITY COMPENSATION PROGRAM AND STOCK BASED COMPENSATION (Details 2) | 3 Months Ended |
Mar. 31, 2019$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options - Non-vested - January 1, 2019 | shares | 349,491 |
Options - Granted | shares | 185,000 |
Options - Vested | shares | (172,822) |
Options - Forfeited | shares | 0 |
Options - Non-vested - March 31, 2019 | shares | 361,669 |
Weighted-Average Grant-Date Fair Value - Non-vested at January 1, 2019 (in dollars per share) | $ / shares | $ 0.74 |
Weighted-Average Grant-Date Fair Value - Granted (in dollars per share) | $ / shares | 0.71 |
Weighted-Average Grant-Date Fair Value - Vested (in dollars per share) | $ / shares | 0.63 |
Weighted-Average Grant-Date Fair Value - Forfeited (in dollars per share) | $ / shares | 0 |
Weighted-Average Grant-Date Fair Value - Non-vested at March 31, 2019 (in dollars per share) | $ / shares | $ 0.77 |
EQUITY COMPENSATION PROGRAM A_6
EQUITY COMPENSATION PROGRAM AND STOCK BASED COMPENSATION (Details Textual) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | 185,000 | |
Employee Stock Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | $ 282,442 | $ 76,451 |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition (in years) | 1 year 8 months 12 days | 1 year 3 months |
Allocated Share-based Compensation Expense | $ 29,375 | $ 13,035 |
Employee Stock Option [Member] | Cost of Sales [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Allocated Share-based Compensation Expense | 8,372 | 3,583 |
Employee Stock Option [Member] | Selling, General and Administrative Expenses [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Allocated Share-based Compensation Expense | $ 21,003 | $ 9,452 |
STOCKHOLDERS' EQUITY (Details T
STOCKHOLDERS' EQUITY (Details Textual) | 3 Months Ended |
Mar. 31, 2019USD ($)shares | |
Class of Stock [Line Items] | |
Stock Issued During Period, Value, Employee Benefit Plan | $ | $ 31,196 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | shares | 98,189 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Textual) | Apr. 12, 2018USD ($)$ / sharesshares | Mar. 31, 2019USD ($) |
Related Party Transaction [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.00% | |
Interest Payable | $ 75,000 | |
Clarex [Member] | ||
Related Party Transaction [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 6.00% | |
Warrants To Purchase Common Stock Number Of Shares Per Warrant | shares | 0.75 | |
Investment Warrants, Exercise Price | $ / shares | $ 1.35 | |
Convertible Subordinated Debt [Member] | Clarex [Member] | ||
Related Party Transaction [Line Items] | ||
Convertible Subordinated Debt | $ 1,500,000 | |
Debt Instrument, Convertible, Number of Equity Instruments | 1,500,000 | |
Convertible Subordinated Debt [Member] | Affiliate Of Clarex [Member] | ||
Related Party Transaction [Line Items] | ||
Convertible Subordinated Debt | $ 1,000,000 | |
Debt Instrument, Maturity Date | Apr. 1, 2022 | |
Debt Instrument, Convertible, Number of Equity Instruments | 1,000,000 |
OTHER LONG TERM NOTES (Details)
OTHER LONG TERM NOTES (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
U.S. Small Business Administration term note payable in equal monthly installments of $1,922 and bearing an interest rate of 4.0% and expiring in April 2032. | $ 255,000 | $ 258,000 |
Less current portion | (12,960) | (12,960) |
Long-term debt, excluding current portion | $ 241,548 | $ 244,781 |
OTHER LONG TERM NOTES (Details
OTHER LONG TERM NOTES (Details Textual) | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Debt Instrument [Line Items] | |
Debt Instrument, Periodic Payment | $ 1,922 |
Debt Instrument, Interest Rate, Stated Percentage | 4.00% |