Inrad Optics (INRD) 10-Q 14 May 24 2024 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2024	May 14, 2024
Document and Entity Information
Document Type	10-Q
Document Period End Date	Mar. 31, 2024
Current Fiscal Year End Date	--12-31
Document Transition Report	false
Entity File Number	0-11668
Entity Registrant Name	INRAD OPTICS, INC.
Entity Incorporation, State or Country Code	NJ
Entity Tax Identification Number	22-2003247
Entity Address, Address Line One	181 Legrand Avenue
Entity Address, City or Town	Northvale
Entity Address, State or Province	NJ
Entity Address, Postal Zip Code	07647
City Area Code	201
Local Phone Number	767-1910
No Trading Symbol Flag	true
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		16,767,642
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
Entity Central Index Key	0000719494
Amendment Flag	false
Title of 12(b) Security	None
Security Exchange Name	NONE
Document Quarterly Report	true

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 2,496,476	$ 2,973,384
Accounts receivable, net of allowance for credit losses of $46,000 at March 31, 2024 and December 31, 2023	1,333,777	1,591,996
Inventories, net	3,380,662	3,148,708
Other current assets	830,669	665,262
Total current assets	8,041,584	8,379,350
Plant and equipment:
Plant and equipment, at cost	16,699,043	16,330,559
Less: Accumulated depreciation and amortization	(15,123,302)	(15,034,667)
Total plant and equipment	1,575,741	1,295,892
Precious metals	561,909	561,909
Lease right-of-use, net	367,593	443,532
Deferred tax asset	1,970,000	1,000,000
Other assets	26,993	26,993
Total Assets	12,543,820	11,707,676
Current liabilities:
Current portion of other long term notes	72,311	71,362
Accounts payable and accrued liabilities	760,028	832,149
Contract liabilities	1,057,053	1,067,183
Current portion of lease obligation	313,567	309,618
Related party convertible notes payable	2,500,000	0
Total current liabilities	4,702,959	2,280,312
Related party convertible notes payable	$ 0	$ 2,500,000
Notes Payable, Noncurrent, Related Party, Type [Extensible Enumeration]	us-gaap:RelatedPartyMember	us-gaap:RelatedPartyMember
Other long term notes, net of current portion	$ 226,955	$ 245,379
Lease obligation, net of current portion	54,027	133,915
Total liabilities	4,983,941	5,159,606
Shareholders' equity:
Common stock: $.01 par value; 60,000,000 authorized shares; 14,255,575 shares issued at March 31, 2024, and 14,235,575 shares issued at December 31, 2023	142,557	142,357
Capital in excess of par value	20,169,214	20,135,722
Accumulated deficit	(12,736,942)	(13,715,059)
Stockholders' equity before treasury stock	7,574,829	6,563,020
Less - Common stock in treasury, at cost (4,600 shares)	(14,950)	(14,950)
Total shareholders' equity	7,559,879	6,548,070
Total Liabilities and shareholders' equity	$ 12,543,820	$ 11,707,676

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
CONDENSED CONSOLIDATED BALANCE SHEETS
Allowance for credit losses	$ 46,000	$ 46,000
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	14,255,575	14,235,575
Treasury stock, shares	4,600	4,600

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Total revenue	$ 2,889,799	$ 2,807,161
Cost and expenses:
Cost of goods sold	1,801,539	1,926,891
Selling, general and administrative expenses	1,046,498	750,362
Cost and expenses, Total	2,848,037	2,677,253
Income from operations	41,762	129,908
Other income (expense):
Interest expense-net	(33,645)	(38,381)
Nonoperating Income (Expense)	(33,645)	(38,381)
Income before income taxes	8,117	91,528
Income tax benefit (provision)		0
Net income	$ 978,117	$ 91,528
Net income per common share - basic	$ 0.07	$ 0.01
Net income per common share - diluted	$ 0.06	$ 0.01
Weighted average shares outstanding - basic	14,250,975	14,088,320
Weighted average shares outstanding - diluted	17,189,908	14,759,188

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($)	Common stock	Capital in excess of par value	Accumulated Deficit	Treasury Stock	Total
Beginning balance at Dec. 31, 2022	$ 140,931	$ 19,925,293	$ (16,383,482)	$ (14,950)	$ 3,667,792
Beginning balance (in shares) at Dec. 31, 2022	14,092,920
401K contribution	$ 333	54,388	0	0	54,721
401K contribution (in shares)	33,322
Stock-based compensation expense	$ 0	34,203	0	0	34,203
Stock options exercised	$ 793	30,993	0	0	31,786
Stock options exercised (in shares)	79,333
Net Income (Loss)	$ 0	0	91,528	0	91,528
Ending balance at Mar. 31, 2023	$ 142,057	20,044,877	(16,291,954)	(14,950)	3,880,030
Ending balance (in shares) at Mar. 31, 2023	14,205,575
Beginning balance at Dec. 31, 2023	$ 142,357	20,135,722	(13,715,059)	(14,950)	6,548,070
Beginning balance (in shares) at Dec. 31, 2023	14,235,575
401K contribution	$ 0	0	0	0	0
401K contribution (in shares)	0
Stock-based compensation expense	$ 0	28,292	0	0	28,292
Stock options exercised	$ 200	5,200	0	0	5,400
Stock options exercised (in shares)	20,000
Net Income (Loss)	$ 0	0	978,117	0	978,117
Ending balance at Mar. 31, 2024	$ 142,557	$ 20,169,214	$ (12,736,942)	$ (14,950)	$ 7,559,879
Ending balance (in shares) at Mar. 31, 2024	14,255,575

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Cash flows from operating activities:
Net income	$ 978,117	$ 91,528
Adjustments to reconcile net income to net cash provided (used in) by operating activities
Depreciation and amortization	88,635	74,353
401K common stock contribution - non cash item		54,721
Stock based compensation	28,292	34,203
Income tax benefit		0	$ 1,000,000
Change in inventory reserve	10,666	149,667
Changes in operating assets and liabilities:
Accounts receivable	258,219	(78,464)
Inventories	(242,620)	(327,036)
Other current and non - current assets	(89,468)	222,306
Other current and non - current liabilities	(75,940)	3,677
Accounts payable and accrued liabilities	(72,121)	(74,882)
Contract liabilities	(10,130)	13,983
Total adjustments and changes	(1,074,467)	72,528
Net cash provided by operating activities	(96,350)	164,056
Cash flows from investing activities:
Capital expenditures	(368,484)	(187,961)
Net cash (used in) investing activities	(368,484)	(187,961)
Cash flows from financing activities:
Proceeds from issuance of common stock	5,400	31,786
Principal payments on notes payable-other, net	(17,474)	(16,533)
Net cash provided by financing activities	(12,074)	15,253
Net (decrease) in cash and cash equivalents	(476,908)	(8,652)
Cash and cash equivalents at beginning of period	2,973,384	2,003,485	2,003,485
Cash and cash equivalents at end of period	2,496,476	1,994,833	$ 2,973,384
Supplemental disclosure of cash flow information:
Interest paid	41,500	42,454
Income taxes paid	$ 0	$ 0

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 2024
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	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 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, 2023. 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 Beginning in 2023, the Company adopted Accounting Standards Update (ASU) No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU 2016-13 requires entities to use a forward-looking approach based on expected losses to estimate credit losses on certain types of financial instruments, including trade receivables. The Company extends credit to its customers that satisfy pre-defined credit criteria. Accounts receivable are recorded net of an allowance for credit losses. The Company estimates the allowance for credit losses based on an analysis of the aging of accounts receivable, an assessment of collectability, including any known or anticipated bankruptcies, customer-specific circumstances, and an evaluation of current economic conditions. Actual write-off of receivables may differ from estimates due to changes in customer and economic circumstances. For the period ended March 31, 2024, there were no changes to the estimate for credit losses. Inventories Inventories are stated at the lower of cost (first-in, first-out method) or net-realizable value. Cost of manufactured goods includes material, labor and overhead. 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 of $2,144,000 and $2,134,000, at March 31, 2024 and December 31, 2023, respectively: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ December 31, ​ 2024 2023 ​ (Unaudited) ​ ​ ​ ​ (in thousands) Raw materials ​ $ 719 ​ $ 718 Work in process, including manufactured parts and components ​ 2,138 ​ 1,915 Finished goods ​ 524 ​ 516 ​ ​ $ 3,381 ​ $ 3,149 ​ Income Taxes In evaluating the Company’s ability to recover deferred tax assets in future periods, management considers the available positive and negative factors. The Company periodically evaluates the realizability of its net deferred tax assets based on all available evidence, both positive and negative, including the Company’s recent operating results, the existence of cumulative income or losses and near-term forecasts of future taxable income that is consistent with the plans and estimates management is using to manage the underlying business. During 2023, the Company reached a cumulative income position over the previous three years. The cumulative three-year income is considered objective, verifiable, and positive evidence and thus received significant weighting. Additional positive evidence considered by the Company in its assessment included recent utilization of tax attribute carryforwards and future forecasts of continued profitability. The realizability of the Company’s net deferred tax assets is dependent on its ability to generate sufficient future taxable income during periods prior to the expiration of tax attributes to fully utilize these assets. Therefore, during the fourth quarter of 2023, based on all available positive and negative evidence, the Company determined that it was appropriate to release a portion of the valuation allowance on the Company’s U.S. federal and state deferred tax assets. The Company recognized a $1.0 million discrete tax benefit during the year ended December 31, 2023, as a result of the valuation allowance release. In the three months ended March 31, 2024, the Company determined that sufficient evidence existed to release the remaining portion of its deferred tax valuation allowance on the Company’s U.S. federal and state deferred tax assets. The Company recognized a $970,000 discrete tax benefit during the three months ended March 31, 2024 as a result of the valuation allowance release. For the three months ended March 31, 2024, and 2023, 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 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, 2024, a total of 2,500,000 common shares issuable upon conversion of outstanding convertible notes have been included in the diluted computation of net income per share. 1,875,000 common shares underlying warrants issuable upon conversion of outstanding related party convertible notes have been excluded from the diluted computation of net income per share because their effect is anti-dilutive.A total of 438,933 common stock equivalents related to outstanding options have been included in the computation of diluted earnings per share because their effect is dilutive. For the three months ended March 31, 2023, 2,500,000 common shares and 1,875,000 common shares from warrants issuable upon conversion of outstanding related party convertible notes were excluded from the computation of basic and diluted net income per common share because their effect is anti-dilutive. In addition, 161,000 common stock options were excluded from the computation of basic and diluted net income per common share because their effect is anti – dilutive. A reconciliation of the shares used in the calculation of basic and diluted earnings (loss) per common share is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Three Months Ended ​ ​ March 31, 2024 ​ March 31, 2023 ​ ​ Income(Loss) ​ Shares ​ Per Share ​ Income(Loss) ​ Shares ​ Per Share ​ (Numerator) (Denominator) Amount (Numerator) (Denominator) Amount Basic Income Per Share: ​ ​ ​ ​ Net Income ​ $ 978,117 14,250,975 ​ $ 0.07 ​ $ 91,528 14,088,320 ​ $ 0.01 Effect of dilutive securities: ​ ​ ​ ​ Convertible Notes ​ — 2,500,000 ​ — ​ — — ​ — Accrued Interest on Convertible Notes ​ 37,500 — ​ — ​ — — ​ — Warrants ​ — — ​ — ​ — — ​ — Stock Options ​ — 438,933 ​ — ​ — 670,868 ​ — Diluted Income Per Share: ​ $ 1,015,617 17,189,908 ​ $ 0.06 ​ $ 91,528 14,759,188 ​ $ 0.01 ​ 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. Recent Accounting Standards In December 2023, the FASB issued new guidance designed to improve corporate income tax disclosure requirements, primarily through increased disaggregation disclosures within the effective tax rate reconciliation as well as enhanced disclosures on corporate income taxes paid. The guidance is effective for all fiscal years beginning after December 15, 2024. The new standard can be adopted on a prospective basis with an option to be adopted retrospectively and early adoption is permitted. The Company is not early adopting the standard. We are currently evaluating this guidance to determine its impact on our condensed consolidated financial statements. In November, 2023, the FASB issued Accounting Standards Update (“ASU”) No. 2023 - 07, “Segment Reporting (Topic 280) Improvements to Reportable Segment Disclosures” which expands annual and interim disclosure requirements for reportable segments, primarily through enhanced disclosures about significant expenses. The updated standard is effective for annual periods beginning in fiscal 2024 and interim periods beginning in the first quarter of fiscal 2025. Early adoption is permitted. The Company is currently evaluating this guidance to determine to determine its impact on our consolidated financial statements. In August 2020, the FASB issued ASU 2020-06, Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. This ASU update is intended to simplify the complexity associated with applying generally accepted accounting principles (GAAP) for certain financial instruments with characteristics of liabilities and equity. This guidance was effective for the Company for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Accordingly, the Company adopted the provisions of this guidance on January 1, 2024. The adoption did not have a material impact on the Company’s consolidated financial statements.

CONCENTRATION OF CASH

CONCENTRATION OF CASH	3 Months Ended
	Mar. 31, 2024
CONCENTRATION OF CASH
CONCENTRATION OF CASH	NOTE 2 – CONCENTRATION OF CASH In May 2023, the Company entered into an Insured Cash Sweep (“ICS”) agreement with Valley National Bank, where funds are placed at destination institutions through the service of the Promontory Interfinancial Network, LLC. Such funds placed into the deposit account will not exceed the Federal Deposit Insurance Corporation (“FDIC”) standard maximum deposit insurance amount, currently $250,000, at any one destination institution thereby eliminating credit risk on cash balances over $250,000. The Company was subject to credit risk due to the concentration of cash balances that exceeded the federally insured limits by approximately $2.25 million at March 31, 2024, and $2.72 million at December 31, 2023, on cash balances of $2.5 million and $3.0 million at March 31,2024, and December 31, 2023, respectively.

REVENUE

REVENUE	3 Months Ended
	Mar. 31, 2024
REVENUE
REVENUE	NOTE 3 – 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 majority of the Company’s revenue is from products and services transferred to customers at a point in time and was 100% of revenue for each of the three months ended March 31, 2024 and 2023, respectively. The Company recognizes revenue at the point in time at which the customer obtains control of the product or service, which is generally when the product title passes to the customer upon shipment. In limited cases,the title does not transfer, and revenue is not recognized until the customer has received the products at its physical location. The following table summarizes the Company’s sales by market area: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ March 31, ​ 2024 2023 Aerospace & Defense ​ $ 549,362 ​ $ 444,451 Process Control & Metrology ​ ​ 2,070,703 ​ ​ 2,274,396 Scientific / R&D ​ ​ 269,734 ​ ​ 88,314 Total ​ $ 2,889,799 ​ $ 2,807,161 ​ 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 also include customer advances or prepayments. On March 31, 2024, the Company had approximately $14.0 million of performance obligations, which is also referred to as backlog. Approximately 7.5% of the March 31, 2024, backlog is related to projects that will extend beyond March 31, 2025.

EQUITY COMPENSATION PROGRAM AND

EQUITY COMPENSATION PROGRAM AND STOCK-BASED COMPENSATION	3 Months Ended
	Mar. 31, 2024
EQUITY COMPENSATION PROGRAM AND STOCK-BASED COMPENSATION
EQUITY COMPENSATION PROGRAM AND STOCK-BASED COMPENSATION	NOTE 4- EQUITY COMPENSATION PROGRAM AND STOCK-BASED COMPENSATION a) Stock Option Expense The Company’s results of operations for the three months ended March 31, 2024 and 2023, include stock-based compensation expense for stock option grants totaling $28,292 and $34,203, respectively. The following table shows the amounts for stock-based compensation included in cost of sales and selling, general and administrative expense for the three months ended March 31, 2024 and 2023: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ March 31, ​ 2024 2023 Cost of sales ​ $ 3,851 ​ $ 3,243 Selling, general and administrative ​ ​ 24,441 ​ ​ 30,960 Total stock-based compensation expense ​ $ 28,292 ​ $ 34,203 ​ As of March 31, 2024, and 2023, there were $93,000 and $208,000 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 1.20 years and 1.26 years respectively. There were no stock options granted during the three months ended March 31, 2024, and 20,000 stock options granted during the three months ended March 31, 2023. 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, 2023: ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ ​ March 31, ​ ​ ​ 2023 Expected Dividend yield — % Expected Volatility 92 % Risk-free interest rate 0.86 % 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, 2024: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted Weighted ​ ​ ​ ​ ​ ​ Average ​ Average ​ ​ ​ ​ ​ ​ ​ Exercise ​ Remaining ​ Aggregate ​ ​ Number of ​ Price per ​ Contractual ​ Intrinsic Stock Options Options Option Term (years) Value Outstanding January 1, 2024 1,112,667 ​ $ 0.75 6.88 ​ $ 1,214,875 Granted — ​ — ​ ​ ​ Exercised (20,000) ​ 0.27 ​ ​ ​ Expired/Forfeited — ​ — ​ ​ ​ Outstanding March 31, 2024 1,092,667 ​ $ 0.75 6.91 ​ $ 829,290 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Exercisable at March 31, 2024 1,015,991 ​ $ 0.72 ​ 6.57 ​ $ 786,748 ​ The following table represents non-vested stock options granted, vested, and forfeited for the three months ended March 31, 2024: ​ ​ ​ ​ ​ ​ ​ ​ Weighted-average ​ ​ Grant-date Fair Value ​ Options ($) Non-Vested - January 1, 2024 206,675 ​ 0.89 Granted — — Vested (130,001) 0.87 Forfeited — — Non-Vested - March 31, 2024 76,674 1.16 ​

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY	3 Months Ended
	Mar. 31, 2024
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY	NOTE 5 - STOCKHOLDERS’ EQUITY The Company approved a matching contribution to participants in the Inrad Optics 401k Plan (the “Plan”) for the year ended December 31, 2023, in February 2024. The Company contributed cash of $141,000 to the Plan in February 2024.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	3 Months Ended
	Mar. 31, 2024
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS	NOTE 6 – RELATED PARTY TRANSACTIONS On October 12, 2023, 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 January 15, 2025, from August 15, 2024. 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. The warrants expire on August 15, 2027. The Clarex Notes have been reclassified to current liabilities because the maturity dates are less than one year from March 31, 2024. See also Note 9 - Subsequent Events.

OTHER LONG-TERM NOTES

OTHER LONG-TERM NOTES	3 Months Ended
	Mar. 31, 2024
OTHER LONG-TERM NOTES
OTHER LONG-TERM NOTES	NOTE 7 – OTHER LONG-TERM NOTES Other Long-Term Notes consist of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ December 31, ​ 2024 2023 ​ ​ (Unaudited) ​ ​ ​ ​ ​ (in thousands) 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 July 2029 ​ $ 136 ​ $ 140 Long-term equipment financing in equal installments of $5,236 and bearing an interest rate of 6.1% and expiring in January 2027 (1) ​ ​ 163 ​ ​ 176 Less current portion ​ (72) ​ (71) Long-term debt, excluding current portion ​ $ 227 ​ $ 245 (1) The Company purchased certain equipment in the three months ended March 31, 2022, financing approximately $270,000 at a fixed annual interest rate of 6.1% for five years payable in equal monthly installments.

LEASE AMENDMENT

LEASE AMENDMENT	3 Months Ended
	Mar. 31, 2024
LEASE AMENDMENT
LEASE AMENDMENT	NOTE 8 – LEASE AMENDMENT The Company entered into an amendment and extension of its building lease on July 25, 2022, retroactive to June 1, 2022. Under the guidance of ASU 2016-02, Leases (Topic 842), the Company must determine if such an arrangement contains a lease and whether that lease meets the classification criteria of a finance or operating lease at the inception of the arrangement. The Company determined that this lease is an operating lease and presented as a right-of-use lease asset, short-term lease liability, and long-term lease liability on the consolidated balance sheet. These assets and liabilities are recognized at the commencement date based on the present value of remaining lease payments over the lease term using the Company’s incremental borrowing rate. Lease expense is recognized on a straight-line basis over the lease term and is included in cost of sales and general and administrative expenses on the consolidated statement of operations. An initial right-of-use asset of approximately $0.9 million was recognized as a non-cash asset addition with the signing of the July 29, 2022, lease amendment. Cash paid for amounts included in the present value of the operating lease liability was $0.2 million for each of the three months ended March 31, 2024 and 2023, and is included in operating cash flows. Operating lease costs were $0.1 million during each of the three months ended March 31, 2024 and 2023, respectively. ​

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	3 Months Ended
	Mar. 31, 2024
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS	NOTE 9 – SUBSEQUENT EVENTS Merger Agreement ​ On April 8, 2024, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Luxium Solutions, LLC, a Delaware limited liability company (“Parent”), and Indigo Merger Sub, Inc., a Delaware corporation and a direct, wholly-owned subsidiary of Parent (“Merger Sub”), providing for the acquisition of the Company by Parent. Pursuant to the terms of the Merger Agreement, Merger Sub will, at the closing of the transactions contemplated by the Merger Agreement, merge with and into the Company, with the Company surviving the merger as a wholly-owned subsidiary of Parent (the “Merger”). ​ Pursuant to the Merger Agreement, each share of common stock of the Company, par value $0.01 per share (a “Share”), other than Cancelled Sharesas (as defined in the Merger Agreement) issued and outstanding immediately prior to the effective time of the Merger shall be automatically converted into the right to receive $1.10 in cash, without interest, payable to the holder thereof upon surrender of such Shares in the manner provided in the Merger Agreement. ​ The consummation of the Merger is not subject to any financing condition. ​ The Merger Agreement contains customary representations and warranties of the Company, Parent and Merger Sub. The Merger Agreement also contains customary covenants and agreements, including with respect to the operation of the business of the Company between signing and closing, public disclosures and other matters. ​ The consummation of the transactions contemplated by the Merger Agreement is subject to the fulfillment or waiver (if permitted by law) of certain customary closing conditions, including, without limitation, (i) the absence of any law, injunction or order enacted, entered, promulgated, or enforced by any governmental entity which prohibits, enjoins or makes illegal the consummation of the Merger and the transactions contemplated by the Merger Agreement, (ii) obtaining the affirmative vote of a majority of the votes cast by the holders of the outstanding Shares entitled to vote in favor of the approval and adoption of the Merger Agreement, (iii) the conversion of the Convertible Notes (as defined below) and cancellation of all Noteholder Warrants (as defined below), in each case as contemplated by the Conversion Agreement (as defined below), (iv) the customary bring-down of representations, warranties and covenants by the Company and Parent, and (v) the absence of any Material Adverse Effect (as defined in the Merger Agreement) since the signing date. ​ Voting Agreement ​ In connection with the Company, Parent and Merger Sub entering into the Merger Agreement, each of the current executive officers and directors of the Company (solely in their capacity as stockholders of the Company) and each of the Noteholders (together, the “ Supporting Stockholders Voting Agreement ​ Conversion and Cancellation Agreement ​ In connection with the Merger Agreement, on April 8, 2024, the Company entered into a Conversion and Cancellation Agreement (the “Conversion Agreement”) with Parent, Clarex Limited (“Clarex”) and Welland Limited (“Welland” and together with Clarex, the “Noteholders”). Pursuant to the Conversion Agreement, Clarex agreed to convert the entire principal amount of its $1,500,000 Subordinated Convertible Promissory Note and Welland agreed to convert the entire principal amount of its $1,000,000 Subordinated Convertible Promissory Note at least five business days prior to the record date for the Company stockholder meeting to approve and adopt the Merger Agreement. On May 2, 2024, the Clarex Convertible Note converted pursuant to its terms into 1,500,000 shares of common stock and warrants to purchase 1,125,000 shares (the “Clarex Warrants”) at an exercise price of $1.35 per share, and the Welland Convertible Note converted pursuant to its terms into 1,000,000 shares of common stock and warrants to purchase 750,000 shares (the “Welland Warrants” and together with the Clarex Warrants, the “Noteholder Warrants”) at an exercise price of $1.35 per share. Pursuant to the Conversion Agreement, all interest then outstanding under the Convertible Notes on the date of conversion, or $50,833, was paid to the Noteholders in cash. Pursuant to the Conversion Agreement, the Noteholder Warrants shall be canceled and terminated effective immediately prior to the closing of the Merger; provided however, such cancellation and termination shall not be effective unless the closing of the Merger occurs.

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Mar. 31, 2024
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation	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 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, 2023. 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	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 Beginning in 2023, the Company adopted Accounting Standards Update (ASU) No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU 2016-13 requires entities to use a forward-looking approach based on expected losses to estimate credit losses on certain types of financial instruments, including trade receivables. The Company extends credit to its customers that satisfy pre-defined credit criteria. Accounts receivable are recorded net of an allowance for credit losses. The Company estimates the allowance for credit losses based on an analysis of the aging of accounts receivable, an assessment of collectability, including any known or anticipated bankruptcies, customer-specific circumstances, and an evaluation of current economic conditions. Actual write-off of receivables may differ from estimates due to changes in customer and economic circumstances. For the period ended March 31, 2024, there were no changes to the estimate for credit losses.
Inventories	Inventories Inventories are stated at the lower of cost (first-in, first-out method) or net-realizable value. Cost of manufactured goods includes material, labor and overhead. 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 of $2,144,000 and $2,134,000, at March 31, 2024 and December 31, 2023, respectively: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ December 31, ​ 2024 2023 ​ (Unaudited) ​ ​ ​ ​ (in thousands) Raw materials ​ $ 719 ​ $ 718 Work in process, including manufactured parts and components ​ 2,138 ​ 1,915 Finished goods ​ 524 ​ 516 ​ ​ $ 3,381 ​ $ 3,149
Income taxes	Income Taxes In evaluating the Company’s ability to recover deferred tax assets in future periods, management considers the available positive and negative factors. The Company periodically evaluates the realizability of its net deferred tax assets based on all available evidence, both positive and negative, including the Company’s recent operating results, the existence of cumulative income or losses and near-term forecasts of future taxable income that is consistent with the plans and estimates management is using to manage the underlying business. During 2023, the Company reached a cumulative income position over the previous three years. The cumulative three-year income is considered objective, verifiable, and positive evidence and thus received significant weighting. Additional positive evidence considered by the Company in its assessment included recent utilization of tax attribute carryforwards and future forecasts of continued profitability. The realizability of the Company’s net deferred tax assets is dependent on its ability to generate sufficient future taxable income during periods prior to the expiration of tax attributes to fully utilize these assets. Therefore, during the fourth quarter of 2023, based on all available positive and negative evidence, the Company determined that it was appropriate to release a portion of the valuation allowance on the Company’s U.S. federal and state deferred tax assets. The Company recognized a $1.0 million discrete tax benefit during the year ended December 31, 2023, as a result of the valuation allowance release. In the three months ended March 31, 2024, the Company determined that sufficient evidence existed to release the remaining portion of its deferred tax valuation allowance on the Company’s U.S. federal and state deferred tax assets. The Company recognized a $970,000 discrete tax benefit during the three months ended March 31, 2024 as a result of the valuation allowance release. For the three months ended March 31, 2024, and 2023, 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 income tax and financial reporting purposes.
Net Income (Loss) per Common Share	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, 2024, a total of 2,500,000 common shares issuable upon conversion of outstanding convertible notes have been included in the diluted computation of net income per share. 1,875,000 common shares underlying warrants issuable upon conversion of outstanding related party convertible notes have been excluded from the diluted computation of net income per share because their effect is anti-dilutive.A total of 438,933 common stock equivalents related to outstanding options have been included in the computation of diluted earnings per share because their effect is dilutive. For the three months ended March 31, 2023, 2,500,000 common shares and 1,875,000 common shares from warrants issuable upon conversion of outstanding related party convertible notes were excluded from the computation of basic and diluted net income per common share because their effect is anti-dilutive. In addition, 161,000 common stock options were excluded from the computation of basic and diluted net income per common share because their effect is anti – dilutive. A reconciliation of the shares used in the calculation of basic and diluted earnings (loss) per common share is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Three Months Ended ​ ​ March 31, 2024 ​ March 31, 2023 ​ ​ Income(Loss) ​ Shares ​ Per Share ​ Income(Loss) ​ Shares ​ Per Share ​ (Numerator) (Denominator) Amount (Numerator) (Denominator) Amount Basic Income Per Share: ​ ​ ​ ​ Net Income ​ $ 978,117 14,250,975 ​ $ 0.07 ​ $ 91,528 14,088,320 ​ $ 0.01 Effect of dilutive securities: ​ ​ ​ ​ Convertible Notes ​ — 2,500,000 ​ — ​ — — ​ — Accrued Interest on Convertible Notes ​ 37,500 — ​ — ​ — — ​ — Warrants ​ — — ​ — ​ — — ​ — Stock Options ​ — 438,933 ​ — ​ — 670,868 ​ — Diluted Income Per Share: ​ $ 1,015,617 17,189,908 ​ $ 0.06 ​ $ 91,528 14,759,188 ​ $ 0.01 ​
Stock-based compensation	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.
Recent Accounting Standards	Recent Accounting Standards In December 2023, the FASB issued new guidance designed to improve corporate income tax disclosure requirements, primarily through increased disaggregation disclosures within the effective tax rate reconciliation as well as enhanced disclosures on corporate income taxes paid. The guidance is effective for all fiscal years beginning after December 15, 2024. The new standard can be adopted on a prospective basis with an option to be adopted retrospectively and early adoption is permitted. The Company is not early adopting the standard. We are currently evaluating this guidance to determine its impact on our condensed consolidated financial statements. In November, 2023, the FASB issued Accounting Standards Update (“ASU”) No. 2023 - 07, “Segment Reporting (Topic 280) Improvements to Reportable Segment Disclosures” which expands annual and interim disclosure requirements for reportable segments, primarily through enhanced disclosures about significant expenses. The updated standard is effective for annual periods beginning in fiscal 2024 and interim periods beginning in the first quarter of fiscal 2025. Early adoption is permitted. The Company is currently evaluating this guidance to determine to determine its impact on our consolidated financial statements. In August 2020, the FASB issued ASU 2020-06, Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. This ASU update is intended to simplify the complexity associated with applying generally accepted accounting principles (GAAP) for certain financial instruments with characteristics of liabilities and equity. This guidance was effective for the Company for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Accordingly, the Company adopted the provisions of this guidance on January 1, 2024. The adoption did not have a material impact on the Company’s consolidated financial statements.

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	3 Months Ended
	Mar. 31, 2024
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Schedule of inventory reserves	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ December 31, ​ 2024 2023 ​ (Unaudited) ​ ​ ​ ​ (in thousands) Raw materials ​ $ 719 ​ $ 718 Work in process, including manufactured parts and components ​ 2,138 ​ 1,915 Finished goods ​ 524 ​ 516 ​ ​ $ 3,381 ​ $ 3,149
Schedule of reconciliation of shares used in calculation of basic and diluted earnings (loss) per common share	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Three Months Ended ​ ​ March 31, 2024 ​ March 31, 2023 ​ ​ Income(Loss) ​ Shares ​ Per Share ​ Income(Loss) ​ Shares ​ Per Share ​ (Numerator) (Denominator) Amount (Numerator) (Denominator) Amount Basic Income Per Share: ​ ​ ​ ​ Net Income ​ $ 978,117 14,250,975 ​ $ 0.07 ​ $ 91,528 14,088,320 ​ $ 0.01 Effect of dilutive securities: ​ ​ ​ ​ Convertible Notes ​ — 2,500,000 ​ — ​ — — ​ — Accrued Interest on Convertible Notes ​ 37,500 — ​ — ​ — — ​ — Warrants ​ — — ​ — ​ — — ​ — Stock Options ​ — 438,933 ​ — ​ — 670,868 ​ — Diluted Income Per Share: ​ $ 1,015,617 17,189,908 ​ $ 0.06 ​ $ 91,528 14,759,188 ​ $ 0.01 ​

REVENUE (Tables)

REVENUE (Tables)	3 Months Ended
	Mar. 31, 2024
REVENUE
Schedule of company's sales by market area	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ March 31, ​ 2024 2023 Aerospace & Defense ​ $ 549,362 ​ $ 444,451 Process Control & Metrology ​ ​ 2,070,703 ​ ​ 2,274,396 Scientific / R&D ​ ​ 269,734 ​ ​ 88,314 Total ​ $ 2,889,799 ​ $ 2,807,161

EQUITY COMPENSATION PROGRAM A_2

EQUITY COMPENSATION PROGRAM AND STOCK-BASED COMPENSATION (Tables)	3 Months Ended
	Mar. 31, 2024
EQUITY COMPENSATION PROGRAM AND STOCK-BASED COMPENSATION
Schedule of stock-based compensation included in cost of sales and selling, general and administrative expense	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ March 31, ​ 2024 2023 Cost of sales ​ $ 3,851 ​ $ 3,243 Selling, general and administrative ​ ​ 24,441 ​ ​ 30,960 Total stock-based compensation expense ​ $ 28,292 ​ $ 34,203
Schedule of fair value of stock option grants	​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ ​ March 31, ​ ​ ​ 2023 Expected Dividend yield — % Expected Volatility 92 % Risk-free interest rate 0.86 % Expected term 10 years ​
Schedule of company's outstanding stock options	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted Weighted ​ ​ ​ ​ ​ ​ Average ​ Average ​ ​ ​ ​ ​ ​ ​ Exercise ​ Remaining ​ Aggregate ​ ​ Number of ​ Price per ​ Contractual ​ Intrinsic Stock Options Options Option Term (years) Value Outstanding January 1, 2024 1,112,667 ​ $ 0.75 6.88 ​ $ 1,214,875 Granted — ​ — ​ ​ ​ Exercised (20,000) ​ 0.27 ​ ​ ​ Expired/Forfeited — ​ — ​ ​ ​ Outstanding March 31, 2024 1,092,667 ​ $ 0.75 6.91 ​ $ 829,290 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Exercisable at March 31, 2024 1,015,991 ​ $ 0.72 ​ 6.57 ​ $ 786,748
Schedule of non-vested stock options granted, vested, and forfeited	​ ​ ​ ​ ​ ​ ​ ​ Weighted-average ​ ​ Grant-date Fair Value ​ Options ($) Non-Vested - January 1, 2024 206,675 ​ 0.89 Granted — — Vested (130,001) 0.87 Forfeited — — Non-Vested - March 31, 2024 76,674 1.16 ​

OTHER LONG-TERM NOTES (Tables)

OTHER LONG-TERM NOTES (Tables)	3 Months Ended
	Mar. 31, 2024
OTHER LONG-TERM NOTES
Schedule of other long-term notes	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ December 31, ​ 2024 2023 ​ ​ (Unaudited) ​ ​ ​ ​ ​ (in thousands) 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 July 2029 ​ $ 136 ​ $ 140 Long-term equipment financing in equal installments of $5,236 and bearing an interest rate of 6.1% and expiring in January 2027 (1) ​ ​ 163 ​ ​ 176 Less current portion ​ (72) ​ (71) Long-term debt, excluding current portion ​ $ 227 ​ $ 245 (1) The Company purchased certain equipment in the three months ended March 31, 2022, financing approximately $270,000 at a fixed annual interest rate of 6.1% for five years payable in equal monthly installments.

SUMMARY OF SIGNIFICANT ACCOUN_4

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Inventories (Details) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Raw materials	$ 719,000	$ 718,000
Work in process, including manufactured parts and components	2,138,000	1,915,000
Finished goods	524,000	516,000
Inventories, net	$ 3,380,662	$ 3,148,708

SUMMARY OF SIGNIFICANT ACCOUN_5

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Basic and diluted earnings (loss) per common share (Details) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Income(Loss) (Numerator)
Net income	$ 978,117	$ 91,528
Convertible notes	0	0
Accrued interest on convertible notes	37,500	0
Warrants	0	0
Stock options	0	0
Diluted income per share
Net income	$ 1,015,617	$ 91,528
Shares (Denominator)
Net income	14,250,975	14,088,320
Convertible notes	2,500,000	0
Accrued interest on convertible notes	0	0
Warrants	0	0
Stock options	438,933	670,868
Diluted income per share
Diluted income per share	17,189,908	14,759,188
Earnings per share diluted
Net income per common share - basic	$ 0.07	$ 0.01
Earnings per share diluted, conversion notes	0	0
Earnings per Share diluted, accrued interest on convertible notes	0	0
Earnings per share diluted, warrants	0	0
Earnings per share diluted, stock options	0	0
Diluted income (loss) per share
Diluted income per share	$ 0.06	$ 0.01

SUMMARY OF SIGNIFICANT ACCOUN_6

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Details) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Estimate for credit losses	$ 0
Allowance for credit losses	46,000		$ 46,000
Inventory reserves	$ 2,144,000		2,134,000
Income tax benefit		$ 0	$ 1,000,000
Employee Stock Option
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Antidilutive securities excluded from computation of earnings per share, amount	438,933	161,000
Warrant
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Antidilutive securities excluded from computation of earnings per share, amount	1,875,000	1,875,000
Common stock
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Antidilutive securities excluded from computation of earnings per share, amount	2,500,000	2,500,000

CONCENTRATION OF CASH (Details)

CONCENTRATION OF CASH (Details) - USD ($)	Mar. 31, 2024	Dec. 31, 2023	May 31, 2023
CONCENTRATION OF CASH
Cash balances	$ 2,496,476	$ 2,973,384
Credit risk
CONCENTRATION OF CASH
Cash balances	$ 2,250,000	$ 2,720,000	$ 250,000

REVENUE - Company's sales by ma

REVENUE - Company's sales by market area (Details) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
REVENUE
Revenue	$ 2,889,799	$ 2,807,161
Aerospace & Defense
REVENUE
Revenue	549,362	444,451
Process Control & Metrology
REVENUE
Revenue	2,070,703	2,274,396
Scientific / R&D
REVENUE
Revenue	$ 269,734	$ 88,314

REVENUE - Additional Informatio

REVENUE - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
REVENUE
Remaining performance obligations	$ 14
Percentage of remaining performance obligation	7.50%
Transfer at point in time
REVENUE
Percentage of revenue from products or services	100%	100%

EQUITY COMPENSATION PROGRAM A_3

EQUITY COMPENSATION PROGRAM AND STOCK-BASED COMPENSATION (Details) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Equity Compensation Program and Stock-based Compensation
Options, granted	0	20,000
Employee Stock Option
Equity Compensation Program and Stock-based Compensation
Allocated share-based compensation expense	$ 28,292	$ 34,203
Employee service share-based compensation, unrecognized compensation costs, net of estimated forfeitures	$ 93,000	$ 208,000
Employee service share-based compensation, expected to be recognized over a weighted average period (in years)	1 year 2 months 12 days	1 year 3 months 3 days
Employee Stock Option | Cost of goods sold
Equity Compensation Program and Stock-based Compensation
Allocated share-based compensation expense	$ 3,851	$ 3,243
Employee Stock Option | Selling, general and administrative expenses
Equity Compensation Program and Stock-based Compensation
Allocated share-based compensation expense	$ 24,441	$ 30,960

EQUITY COMPENSATION PROGRAM A_4

EQUITY COMPENSATION PROGRAM AND STOCK-BASED COMPENSATION - Weighted-average assumptions (Details)	3 Months Ended
	Mar. 31, 2023
EQUITY COMPENSATION PROGRAM AND STOCK-BASED COMPENSATION
Expected dividend yield	0%
Expected volatility	92%
Risk-free interest rate	0.86%
Expected term	10 years

EQUITY COMPENSATION PROGRAM A_5

EQUITY COMPENSATION PROGRAM AND STOCK-BASED COMPENSATION- Stock Option Activity (Details) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Equity Compensation Program and Stock-based Compensation
Options, granted	0	20,000
Employee Stock Option
Equity Compensation Program and Stock-based Compensation
Options Outstanding at Beginning	1,112,667
Options, granted	0
Options, Exercised	(20,000)
Option, Expired/Forfeited	0
Options Outstanding at ending	1,092,667		1,112,667
Options, Exercisable at Ending	1,015,991
Weighted Average Exercise Price Per Options Outstanding at Beginning (in dollars per share)	$ 0.75
Weighted Average Exercise Price per Option, Granted	0
Weighted Average Exercise Price per Option, Exercised	0.27
Weighted Average Exercise Price per Option, Expired/Forfeited	0
Weighted Average Exercise Price Options Outstanding at Ending (in dollars per share)	0.75		$ 0.75
Weighted Average Exercise Price per Option, Exercisable at ending	$ 0.72
Weighted Average Remaining Contractual Term, Options Outstanding at Beginning	6 years 10 months 28 days		6 years 10 months 17 days
Weighted Average Remaining Contractual Term, Options Outstanding at Ending	6 years 10 months 28 days		6 years 10 months 17 days
Weighted Average Remaining Contractual Term, Exercisable at Ending	6 years 6 months 25 days
Aggregate Intrinsic Value, Options Outstanding at Beginning (in dollars)	$ 1,214,875
Aggregate Intrinsic Value, Options Outstanding at Ending (in dollars)	829,290		$ 1,214,875
Aggregate Intrinsic Value, Options Exercisable at Ending	$ 786,748

EQUITY COMPENSATION PROGRAM A_6

EQUITY COMPENSATION PROGRAM AND STOCK-BASED COMPENSATION- Non-vested stock option activity (Details)	3 Months Ended
	Mar. 31, 2024 $ / shares shares
EQUITY COMPENSATION PROGRAM AND STOCK-BASED COMPENSATION
Options - Non-vested | shares	206,675
Granted | shares	0
Vested | shares	(130,001)
Forfeited | shares	0
Options - Non-vested | shares	76,674
Weighted-average Grant-date Fair Value - Non-vested at beginning balance (in dollars per share) | $ / shares	$ 0.89
Granted (in dollars per share) | $ / shares	0
Vested (in dollars per share) | $ / shares	0.87
Forfeited (in dollars per share) | $ / shares	0
Weighted-average Grant-date Fair Value - Non-vested at ending balance (in dollars per share) | $ / shares	$ 1.16

STOCKHOLDERS' EQUITY (Details)

STOCKHOLDERS' EQUITY (Details)	1 Months Ended
	Feb. 29, 2024 USD ($)
STOCKHOLDERS' EQUITY
Cash contributions	$ 141,000

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details) - Subordinated convertible note	Oct. 12, 2023 USD ($) item $ / shares shares
Common stock
Related Party Transactions
Number of shares of common stock to be purchased by each warrant	0.75
Debt instrument, convertible, number of equity instruments	0.75
Common stock at a price | $ / shares	$ 1.35
Number of shares/warrants comprised in a unit (in shares)	1
Warrant
Related Party Transactions
Number of shares/warrants comprised in a unit (in shares)	1
Clarex
Related Party Transactions
Convertible subordinated debt | $	$ 1,500,000
Debt instrument, convertible, number of equity instruments | item	1,500,000
Affiliate of Clarex
Related Party Transactions
Convertible subordinated debt | $	$ 1,000,000
Debt instrument, interest rate, stated percentage	6%
Debt instrument, convertible, number of equity instruments | item	1,000,000

OTHER LONG-TERM NOTES (Details)

OTHER LONG-TERM NOTES (Details) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Other Long-Term Notes
Less current portion	$ (72,311)	$ (71,362)
Long-term debt, excluding current portion	227,000	245,000
U.S. small business administration note payable
Other Long-Term Notes
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 July 2029.	136,000	140,000
Long-term equipment financing
Other Long-Term Notes
Long-term equipment financing in equal installments of $5,236 and bearing an interest rate of 6.1% and expiring in January 2027	$ 163,000	$ 176,000

OTHER LONG-TERM NOTES - Additio

OTHER LONG-TERM NOTES - Additional information (Details) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
U.S. small business administration note payable
Other Long-Term Notes
Monthly installment payment	$ 1,922,000
Fixed interest rate	4%
Long-term equipment financing
Other Long-Term Notes
Equal installment	$ 5,236,000
Fixed interest rate	6.10%	6.10%
Debt, face amount		$ 270,000
Debt term		5 years

LEASE AMENDMENT (Details)

LEASE AMENDMENT (Details) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023	Jul. 29, 2022
LEASE AMENDMENT
Operating lease, right-of-use asset	$ 367,593		$ 443,532	$ 900,000
Operating lease payments	200,000	$ 200,000
Operating lease costs	$ 100,000	$ 100,000

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details) - USD ($)	May 02, 2024	Apr. 08, 2024	Mar. 31, 2024	Dec. 31, 2023
Subsequent Event [Line Items]
Common stock, par value (in dollars per share)			$ 0.01	$ 0.01
Principal amount			$ 2,500,000	$ 0
Subsequent Event [Member]
Subsequent Event [Line Items]
Common stock, par value (in dollars per share)		$ 0.01
Shares issued and outstanding converted into the right to receive		$ 1.10
Interest outstanding under convertible notes		$ 50,833
Subsequent Event [Member] | Clarex Warrants
Subsequent Event [Line Items]
Warrant to purchase	1,125,000
Exercise price	$ 1.35
Subsequent Event [Member] | Welland Warrants
Subsequent Event [Line Items]
Warrant to purchase	750,000
Exercise price	$ 1.35
Subsequent Event [Member] | Clarex
Subsequent Event [Line Items]
Principal amount		1,500,000
Convertible note of common stock	1,500,000
Subsequent Event [Member] | Welland
Subsequent Event [Line Items]
Principal amount		$ 1,000,000
Convertible note of common stock	1,000,000

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ 978,117	$ 91,528

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Mar. 31, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false