Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Nov. 08, 2019 | |
Document Information [Line Items] | ||
Entity Registrant Name | NORTECH SYSTEMS INC | |
Entity Central Index Key | 0000722313 | |
Trading Symbol | nsys | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Common Stock, Shares Outstanding (in shares) | 2,657,314 | |
Entity Shell Company | false | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Title of 12(b) Security | Common Stock ($0.01 par value) |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Net sales | $ 30,058 | $ 29,558 | $ 85,515 | $ 84,543 |
Cost of Goods Sold | 26,423 | 26,171 | 76,594 | 74,311 |
Gross Profit | 3,635 | 3,387 | 8,921 | 10,232 |
Operating Expenses | ||||
Selling Expenses | 589 | 717 | 2,147 | 2,792 |
General and Administrative Expenses | 2,333 | 2,021 | 7,374 | 6,177 |
Total Operating Expenses | 2,922 | 2,738 | 9,521 | 8,969 |
Income (Loss) From Operations | 713 | 649 | (600) | 1,263 |
Other Expense | ||||
Interest Expense | (256) | (170) | (780) | (551) |
Income (Loss) Before Income Taxes | 457 | 479 | (1,380) | 712 |
Income Tax Expense | 44 | 115 | 122 | 350 |
Net Income (Loss) | $ 413 | $ 364 | $ (1,502) | $ 362 |
Net Income (Loss) Per Common Share: | ||||
Basic (in dollars per share) (in dollars per share) | $ 0.16 | $ 0.14 | $ (0.56) | $ 0.13 |
Weighted Average Number of Common Shares Outstanding - Basic (in shares) (in shares) | 2,657,911 | 2,680,684 | 2,667,754 | 2,698,950 |
Diluted (in dollars per share) (in dollars per share) | $ 0.16 | $ 0.14 | $ (0.56) | $ 0.13 |
Weighted Average Number of Common Shares Outstanding - Diluted (in shares) (in shares) | 2,657,911 | 2,682,901 | 2,667,754 | 2,702,503 |
Other comprehensive income (loss) | ||||
Foreign currency translation | $ (56) | $ (83) | $ (56) | $ (137) |
Comprehensive income (loss), net of tax | $ 357 | $ 281 | $ (1,558) | $ 225 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 | |
ASSETS | |||
Cash | $ 160,000 | $ 480,000 | [1] |
Restricted Cash | 1,794,000 | 467,000 | [1] |
Accounts Receivable, less allowances of $323 and $222 | 20,135,000 | 20,093,000 | [1] |
Inventories | 16,941,000 | 17,004,000 | [1] |
Contract Assets | 7,211,000 | 6,431,000 | [1] |
Prepaid Expenses and Other Current Assets | 2,019,000 | 1,381,000 | [1] |
Total Current Assets | 48,260,000 | 45,856,000 | [1] |
Property and Equipment, Net | 9,710,000 | 10,178,000 | [1] |
Operating Lease Assets | 5,018,000 | ||
Goodwill | 2,375,000 | 2,375,000 | [1] |
Other Intangible Assets, Net | 1,397,000 | 1,523,000 | [1] |
Other Non Current Assets | 19,000 | 28,000 | [1] |
Total Assets | 66,779,000 | 59,960,000 | [1] |
Current Liabilities | |||
Current Maturities of Long-Term Debt | 444,000 | 780,000 | [1] |
Current Portion of Finance Lease Obligation | 476,000 | 337,000 | |
Current Portion of Operating Lease Obligations | 841,000 | [1] | |
Accounts Payable | 18,384,000 | 18,142,000 | [1] |
Accrued Payroll and Commissions | 2,626,000 | 2,747,000 | [1] |
Other Accrued Liabilities | 2,845,000 | 2,886,000 | [1] |
Total Current Liabilities | 25,616,000 | 24,892,000 | [1] |
Long-Term Liabilities | |||
Long Term Line of Credit | 12,430,000 | 9,264,000 | [1] |
Long-Term Debt, Net | 3,295,000 | 3,624,000 | [1] |
Long Term Finance Lease Obligation, Net | 1,168,000 | 951,000 | [1] |
Long-Term Operating Lease Obligation, Net | 4,517,000 | [1] | |
Other Long-Term Liabilities | 118,000 | 139,000 | [1] |
Total Long-Term Liabilities | 21,528,000 | 13,978,000 | [1] |
Total Liabilities | 47,144,000 | 38,870,000 | [1] |
Commitments and Contingencies | |||
Shareholders' Equity | |||
Preferred Stock, $1 par value; 1,000,000 Shares Authorized: 250,000 Shares Issued and Outstanding | 250,000 | 250,000 | [1] |
Common Stock - $0.01 par value; 9,000,000 Shares Authorized: 2,686,328 and 2,739,250 Shares Issued and Outstanding, respectively | 27,000 | 27,000 | [1] |
Additional Paid-In Capital | 15,713,000 | 15,610,000 | [1] |
Accumulated Other Comprehensive Loss | (289,000) | (233,000) | [1] |
Retained Earnings | 3,934,000 | 5,436,000 | [1] |
Total Shareholders' Equity | 19,635,000 | 21,090,000 | [1] |
Total Liabilities and Shareholders' Equity | $ 66,779,000 | $ 59,960,000 | [1] |
[1] | The balance sheet at December 31, 2018 has been derived from the audited financial statements at that date. |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Accounts receivable allowance | $ 323 | $ 222 |
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, shares issued (in shares) | 250,000 | 250,000 |
Preferred stock, shares outstanding (in shares) | 250,000 | 250,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 9,000,000 | 9,000,000 |
Common stock, shares issued (in shares) | 2,686,328 | 2,739,250 |
Common stock, shares outstanding (in shares) | 2,686,328 | 2,739,250 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash Flows From Operating Activities | ||
Net Income (Loss) | $ (1,502) | $ 362 |
Adjustments to Reconcile Net (Loss) Income to Net Cash | ||
Depreciation and Amortization | 1,648 | 1,655 |
Compensation on Stock-Based Awards | 226 | 80 |
Deffered Taxes | 1 | 1 |
Change in Accounts Receivable Allowance | 101 | (5) |
Change in Inventory Reserves | 285 | 118 |
Changes in Current Operating Items | ||
Accounts Receivable | (158) | (1,619) |
Inventories | (237) | (1,959) |
Contract Assets | (780) | (617) |
Prepaid Expenses and Other Current Assets | (641) | (278) |
Accounts Payable | 663 | 4,913 |
Accrued Payroll and Commissions | (120) | (374) |
Other Accrued Liabilities | 281 | 287 |
Net Cash (Used in) Provided by Operating Activities | (233) | 2,564 |
Cash Flows from Investing Activities | ||
Proceeds from Sale of Property and Equipment | 17 | |
Purchase of Intangible Asset | (37) | (3) |
Purchases of Property and Equipment | (785) | (999) |
Net Cash Used in Investing Activities | (822) | (985) |
Cash Flows from Financing Activities | ||
Net Change in Line of Credit | 3,165 | (445) |
Principal Payments on Long-Term Debt | (728) | (819) |
Principal Payments on Finance Leases | (251) | (231) |
Stock option exercises | 7 | |
Share Repurchases | (130) | (229) |
Net Cash Provided By (Used In) Financing Activities | 2,063 | (1,724) |
Effect of Exchange Rate Changes on Cash | (2) | (1) |
Net Change in Cash | 1,006 | (146) |
Cash - Beginning of Period | 948 | 779 |
Cash - Ending of Period | 1,954 | 633 |
Reconciliation of cash and restricted cash reported within the condensed consolidated balance sheets | ||
Cash | 160 | 397 |
Restricted Cash | 1,794 | 236 |
Cash - Ending of Period | 1,954 | 633 |
Supplemental Disclosure of Cash Flow Information: | ||
Cash Paid During the Period for Interest | 739 | 507 |
Cash Paid (Refunded) During the Period for Income Taxes | (83) | 167 |
Supplemental Noncash Investing and Financing Activities: | ||
Property and Equipment Purchases in Accounts Payable | 30 | 304 |
Equipment Acquired under Finance Lease | $ 607 | $ 100 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | AOCI Attributable to Parent [Member] | Retained Earnings [Member] | Total | |
BALANCE at Dec. 31, 2017 | $ 250,000 | $ 27,000 | $ 15,760,000 | $ (101,000) | $ 3,889,000 | $ 19,825,000 | |
Net Income (Loss) | 362,000 | 362,000 | |||||
Cumulative Adjustment | 1,381,000 | 1,381,000 | |||||
Foreign currency translation adjustment | (137,000) | (137,000) | |||||
Compensation on stock-based awards | 80,000 | 80,000 | |||||
Share repurchases | (228,000) | (228,000) | |||||
BALANCE at Sep. 30, 2018 | 250,000 | 27,000 | 15,612,000 | (238,000) | 5,632,000 | 21,283,000 | |
BALANCE at Jun. 30, 2018 | 250,000 | 27,000 | 15,619,000 | (155,000) | 5,268,000 | 21,009,000 | |
Net Income (Loss) | 364,000 | 364,000 | |||||
Cumulative Adjustment | |||||||
Foreign currency translation adjustment | (83,000) | (83,000) | |||||
Compensation on stock-based awards | 35,000 | 35,000 | |||||
Share repurchases | (42,000) | (42,000) | |||||
BALANCE at Sep. 30, 2018 | 250,000 | 27,000 | 15,612,000 | (238,000) | 5,632,000 | 21,283,000 | |
BALANCE at Dec. 31, 2018 | 250,000 | 27,000 | 15,610,000 | (233,000) | 5,436,000 | 21,090,000 | [1] |
Net Income (Loss) | (1,502,000) | (1,502,000) | |||||
Foreign currency translation adjustment | (56,000) | (56,000) | |||||
Compensation on stock-based awards | 226,000 | 226,000 | |||||
Share repurchases | (130,000) | (130,000) | |||||
Stock option exercises | 7,000 | 7,000 | |||||
BALANCE at Sep. 30, 2019 | 250,000 | 27,000 | 15,713,000 | (289,000) | 3,934,000 | 19,635,000 | |
BALANCE at Jun. 30, 2019 | 250,000 | 27,000 | 15,682,000 | (233,000) | 3,521,000 | 19,247,000 | |
Net Income (Loss) | 413,000 | 413,000 | |||||
Foreign currency translation adjustment | (56,000) | (56,000) | |||||
Compensation on stock-based awards | 35,000 | 35,000 | |||||
Share repurchases | (4,000) | (4,000) | |||||
BALANCE at Sep. 30, 2019 | $ 250,000 | $ 27,000 | $ 15,713,000 | $ (289,000) | $ 3,934,000 | $ 19,635,000 | |
[1] | The balance sheet at December 31, 2018 has been derived from the audited financial statements at that date. |
Note 1 - Summary of Significant
Note 1 - Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2019 | |
Notes to Financial Statements | |
Basis of Presentation and Significant Accounting Policies [Text Block] | NOTE 1. Basis of Presentation The accompanying unaudited condensed consolidated financial statements for the interim periods have been prepared in accordance with Generally Accepted Accounting Principles in the United States of America (“GAAP”) for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission. Accordingly, they do not not 10 December 31, 2018. not The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. In preparing these condensed consolidated financial statements, we have made our best estimates and judgments of certain amounts included in the condensed consolidated financial statements, giving due consideration to materiality. Changes in the estimates and assumptions used by us could have a significant impact on our financial results, since actual results could differ from those estimates. Principles of Consolidation The condensed consolidated financial statements include the accounts of Nortech Systems Incorporated and its wholly owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. Revenue Recognition Our revenue is comprised of product, engineering services and repair services. All revenue is recognized when the Company satisfies its performance obligation(s) under the contract by transferring the promised product or service to our customer either when (or as) our customer obtains control of the product or service, with the majority of our revenue being recognized over time including goods produced under contract manufacturing agreements and services revenue. 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 our contracts have a single performance obligation. Revenue is recorded net of returns, allowances and customer discounts. Our net sales for services were less than 10% Stoc k-Based Awards Following is the status of all stock options as of September 30, 2019: Shares Weighted- Average Exercise Price Per Share Weighted- Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Outstanding - January 1, 2019 224,750 $ 3.44 Granted 186,200 4.31 Exercised (2,250 ) 3.20 Cancelled (109,700 ) 3.50 Outstanding - September 30, 2019 299,000 $ 3.96 9.13 $ - Exercisable - September 30, 2019 26,867 $ 3.41 8.46 $ - The 2005 not no may 2005 May 2017, 2017 350,000 16,700 186,200 three nine September 30, 2019, Total compensation expense was $35 three September 30, 2019 2018, $110 $80 nine September 30, 2019 2018, September 30, 2019, $403 3.13 In November 2010, “2010 2010 not 1,000,000 March 11, 2015. 2010 three 2010 90 During the nine September 30, 2019, 100,000 first three nine September 30, 2018, no Total compensation expense related to vested outstanding Units based on the estimated appreciation over their remaining terms was $0 three nine September 30, 2019 2018. During the nine September 30, 2019, 25,000 $116 first Net Income (Loss) per Common Share For the three September 30, 2019, not nine September 30, 2019, not three nine September 30, 2018, 2,217 3,553 Share Repurchase Program We had a $250 August 2017. 1,245 32,985 $4 $130 three nine September 30, 2019, September 30, 2019, no Restricted Cash Cash and cash equivalents classified as restricted cash on our condensed consolidated balance sheets are restricted as to withdrawal or use under the terms of certain contractual agreements. The September 30, 2019 September 30, 2019, no Accounts Receivable and Allowance for Doubtful Accounts Credit is extended based upon an evaluation of the customer’s financial condition and, while collateral is not three nine September 30, 2019 $323 September 30, 2019 $222 December 31, 2018. Inventories Inventories are stated at the lower of cost ( first first may Inventories are as follows: September 30, December 31, 2019 2018 Raw Materials $ 17,036 $ 16,769 Work in Process 1,105 1,015 Finished Goods 198 332 Reserves (1,398 ) (1,112 ) Total $ 16,941 $ 17,004 Other Intangible Assets Other intangible assets at September 30, 2019 December 31, 2018 September 30, 2019 Gross Carrying Accumulated Net Book Years Amount Amortization Value Customer Relationships 9 $ 1,302 $ 615 $ 687 Intellectual Property 3 100 86 14 Trade Names 20 814 173 641 Patents 7 55 - 55 Totals $ 2,271 $ 874 $ 1,397 December 31, 2018 Gross Carrying Accumulated Net Book Years Amount Amortization Value Customer Relationships 9 $ 1,302 $ 506 $ 796 Intellectual Property 3 100 61 39 Trade Names 20 814 143 671 Patents 7 17 - 17 Totals $ 2,233 $ 710 $ 1,523 Amortization expense for the three nine September 30, 2019 $55 $164, Estimated future annual amortization expense ( not Year Amount Remainder of 2019 $ 55 2020 191 2021 185 2022 185 2023 185 Thereafter 541 Total $ 1,342 Impairment of Goodwill and Other Intangible Assets In accordance with ASC 350, Goodwill and Other Intangible Assets not may October 1 st No nine September 30, 2019 Impairment Analysis We evaluate long-lived assets, primarily property and equipment and intangible assets, as well as the related depreciation periods, whenever current events or changes in circumstances indicate that the carrying amount of an asset or asset group may not not No three nine September 30, 2019 2018, Recently Adopted Accounting Standards On January 1, 2019, No. 2016 02, 842 not not one not The impact of adopting the new lease standard was the recognition of $5,731 no |
Note 2 - Concentration of Credi
Note 2 - Concentration of Credit Risk and Major Customers | 9 Months Ended |
Sep. 30, 2019 | |
Notes to Financial Statements | |
Concentration Risk Disclosure [Text Block] | NOTE 2. Financial instruments that potentially subject us to concentrations of credit risk consist principally of cash and accounts receivable. With regard to cash, we maintain our excess cash balances in checking accounts at primarily two one one may $160 September 30, 2019, $105 not Our largest customer has two 10% three nine September 30, 2019 2018. 19% 21% three nine September 30, 2019, 20% three nine September 30, 2018. 3% three nine September 30, 2019, 1% three nine September 30, 2018. 22% 24% three nine September 30, 2019, 21% three nine September 30, 2018. September 30, 2019 December 31, 2018 28% 16% Export sales represented approximately 9% 20% three September 30, 2019 2018, 15% 19% nine September 30, 2019 2018, |
Note 3 - Revenue
Note 3 - Revenue | 9 Months Ended |
Sep. 30, 2019 | |
Notes to Financial Statements | |
Revenue from Contract with Customer [Text Block] | NOTE 3. Revenue recognition Our revenue is comprised of product, engineering services and repair services. All revenue is recognized when the Company satisfies its performance obligation(s) under the contract by transferring the promised product or service to our customer either when (or as) our customer obtains control of the product or service, with the majority of our revenue being recognized over time including goods produced under contract manufacturing agreements and services revenue. 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 our contracts have a single performance obligation, as the promise to transfer products or services is not not Revenue is measured as the amount of consideration we expect to receive in exchange for transferring products or providing services. As such, revenue is recorded net of returns, allowances and customer discounts. 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 our revenue is derived from the transfer of goods produced under contract manufacturing agreements which have no not 91% three nine September 30, 2019. Accounting for contract manufacturing agreements involves the use of various techniques to estimate total revenue and costs. We estimate profit on these agreements as the difference between total estimated revenue and expected costs to complete the performance obligation within the terms of the agreement and recognize the respective profit as the goods are produced. The estimates to determine the profit earned on the performance obligation are based on anticipated selling prices and historical cost of goods sold and represent our best judgement at the time. Changes in judgements on these above estimates could impact the timing and amount of revenue recognized with a resulting impact on the timing and amount of associated profit. On occasion our customers provide materials to be used in the manufacturing process and the fair value of the materials is included in revenue as noncash consideration at the point in time when the manufacturing process commences along with the same corresponding amount recorded as cost of goods sold. The inclusion of noncash consideration has no Contract Assets Contract assets, recorded as such in the Condensed Consolidated Balance Sheets, consist of unbilled amounts related to revenue recognized over time. Significant changes in the contract assets balance during the three nine September 30, 2019 Nine Months Ended September 30, 2019 Outstanding at January 1, 2019 $ 6,431 Increase (decrease) attributed to: Transferred to receivables from contract assets recognized (4,923 ) Product transferred over time 5,703 Outstanding at September 30, 2019 $ 7,211 We expect substantially all the remaining performance obligations for the contract assets recorded as of September 30, 2019, 90 180 120 The following tables summarize our net sales by market for the three nine September 30, 2019 ( Three Months Ended September 30, 2019 Product/ Service Transferred Over Time Product Transferred at Point in Time Noncash Consideration Total Net Sales by Market Medical $ 14,399 $ 1,661 $ 983 $ 17,043 Industrial 7,279 822 522 8,623 Aerospace and Defense 3,978 133 281 4,392 Total net sales $ 25,656 $ 2,616 $ 1,786 $ 30,058 Nine Months Ended September 30, 2019 Product/ Service Transferred Over Time Product Transferred at Point in Time Noncash Consideration Total Net Sales by Market Medical $ 42,039 $ 1,914 $ 2,053 $ 46,006 Industrial 22,847 2,297 1,146 26,290 Aerospace and Defense 12,236 375 608 13,219 Total net sales $ 77,122 $ 4,586 $ 3,807 $ 85,515 |
Note 4 - Financing Arrangements
Note 4 - Financing Arrangements | 9 Months Ended |
Sep. 30, 2019 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | NOTE 4. We have a credit agreement with Bank of America which was entered into on June 15, 2017 December 29, 2017 $16,000 June 15, 2022. $5,000 June 15, 2022. Under the Bank of America credit agreement, both the line of credit and real estate term notes are subject to variations in the LIBOR rate. Our line of credit bears interest at a weighted-average interest rate of 5.4% 4.3% September 30, 2019 2018, $12,430 $9,264 September 30, 2019 December 31, 2018, no The line of credit and real estate term notes with Bank of America contain certain covenants which, among other things, require us to adhere to regular reporting requirements, abide by annual shareholder dividend limitations, maintain certain financial performance, and limit the amount of annual capital expenditures. The availability under our line is subject to borrowing base requirements, and advances are at the discretion of the lender. The line of credit is secured by substantially all of our assets. The Bank of America credit agreement as amended provides for, among other things, a fixed charge coverage ratio of not 1.0 1.0 four four December 31, 2018. September 30, 2019, not third November 8, 2019. The availability under the line is subject to borrowing base requirements, and advances are at the discretion of the lender. At September 30, 2019, $3,523, As part of the July 1, 2015 two $1,000 $1,300, first 2019. In the second 2019, 6,000,000 April 3, 2021. 6% no September 30, 2019. Long-term debt at September 30, 2019 December 30, 2018 September 30, December 31, 2019 2018 Real estate term notes bearing interest at one-month LIBOR + 2.25% (4.4% and 4.8% as of September 30, 2019 and December 31, 2018, respectively) maturing June 15, 2022 with monthly payments of approximately $41 plus interest secured by substantially all assets. $ 3,880 $ 4,253 Devicix Acquistion Note 1 payable to DeLange Holdings bears interest rate of 4.0% per annum, maturing July 1, 2019 - 156 Devicix Acquistion Note 2 payable to DeLange Holdings bears interest rate of 4.0% per annum, maturing July 1, 2019 - 203 3,880 4,612 Discount on Devicix Notes Payable - (23 ) Debt issuance Costs (141 ) (185 ) Total long-term debt 3,739 4,404 Current maturities of long-term debt (444 ) (780 ) Long-term debt - net of current maturities $ 3,295 $ 3,624 |
Note 5 - Leases
Note 5 - Leases | 9 Months Ended |
Sep. 30, 2019 | |
Notes to Financial Statements | |
Lease Disclosure [Text Block] | NOTE 5. LEASES We have operating leases for certain manufacturing sites, office space, and equipment. Most leases include the option to renew, with renewal terms that can extend the lease term from one five not September 30, 2019, not not The components of lease expense were as follows: Three Months Ended September 30, Nine Months Ended September 30, Lease Cost 2019 2019 Operating lease cost $ 253 $ 785 Finance lease interest cost 21 54 Finance lease amortization expense 65 196 Total lease cost $ 339 $ 1,035 Supplemental balance sheet information related to leases was as follows: Balance Sheet Location September 30 , 2019 Assets Operating lease assets Operating lease assets $ 5,018 Finance lease assets Property, Plant and Equipment 1,834 Total leased assets 6,852 Liabilities Current Current operating lease liabilities Current Portion of Operating Lease Obligations 841 Current finance lease liabilities Current Portion of Finance Lease Obligations 476 Noncurrent Long-term operating lease liabilities Long Term Operating Lease Liabilities, Net 4,517 Long term finance lease liabilities Long Term Finance Lease Obligations, Net 1,168 Total lease liabilities $ 7,002 Supplemental cash flow information related to leases was as follows: Nine Months Ended September 30 , 2019 Operating leases Cash paid for amounts included in the measurement of lease liabilities $ 555 Right-of-use assets obtained in exchange for lease obligations $ — Maturities of lease liabilities were as follows: Operating Leases Finance Leases Total Remaining 2019 $ 191 $ 133 $ 324 2020 858 534 1,392 2021 722 534 1,256 2022 726 359 1,085 2023 738 138 876 Thereafter 3,381 102 3,483 Total lease payments $ 6,616 $ 1,800 $ 8,416 Less: Interest (1,258 ) (156 ) (1,414 ) Present value of lease liabilities $ 5,358 $ 1,644 $ 7,002 The lease term and discount rate at June 30, 2019 Weighted-average remaining lease term (years) Operating leases 7.6 Finance leases 3.4 Weighted-average discount rate Operating leases 4.8 % Finance leases 5.4 % Rent expense for our operating leases the three nine September 30, 2018 840, Leases $297 $951, The future minimum lease commitments as of December 31, 2018, 840 Operating Leases 2019 $ 1,024 2020 858 2021 722 2022 726 2023 738 Thereafter 3,380 Total minimum obligations $ 7,448 |
Note 6 - Income Taxes
Note 6 - Income Taxes | 9 Months Ended |
Sep. 30, 2019 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | NOTE 6. On a quarterly basis, we estimate what our effective tax rate will be for the full fiscal year and record a quarterly income tax provision based on the anticipated rate. As the year progresses, we refine our estimate based on the facts and circumstances, including discrete events, by each tax jurisdiction. Our effective tax rate for the three nine September 30, 2019 10% 9% three nine September 30, 2018 24% 49%, |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation The accompanying unaudited condensed consolidated financial statements for the interim periods have been prepared in accordance with Generally Accepted Accounting Principles in the United States of America (“GAAP”) for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission. Accordingly, they do not not 10 December 31, 2018. not The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. In preparing these condensed consolidated financial statements, we have made our best estimates and judgments of certain amounts included in the condensed consolidated financial statements, giving due consideration to materiality. Changes in the estimates and assumptions used by us could have a significant impact on our financial results, since actual results could differ from those estimates. |
Consolidation, Policy [Policy Text Block] | Principles of Consolidation The condensed consolidated financial statements include the accounts of Nortech Systems Incorporated and its wholly owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. |
Revenue [Policy Text Block] | Revenue Recognition Our revenue is comprised of product, engineering services and repair services. All revenue is recognized when the Company satisfies its performance obligation(s) under the contract by transferring the promised product or service to our customer either when (or as) our customer obtains control of the product or service, with the majority of our revenue being recognized over time including goods produced under contract manufacturing agreements and services revenue. 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 our contracts have a single performance obligation. Revenue is recorded net of returns, allowances and customer discounts. Our net sales for services were less than 10% |
Share-based Payment Arrangement [Policy Text Block] | Stoc k-Based Awards Following is the status of all stock options as of September 30, 2019: Shares Weighted- Average Exercise Price Per Share Weighted- Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Outstanding - January 1, 2019 224,750 $ 3.44 Granted 186,200 4.31 Exercised (2,250 ) 3.20 Cancelled (109,700 ) 3.50 Outstanding - September 30, 2019 299,000 $ 3.96 9.13 $ - Exercisable - September 30, 2019 26,867 $ 3.41 8.46 $ - The 2005 not no may 2005 May 2017, 2017 350,000 16,700 186,200 three nine September 30, 2019, Total compensation expense was $35 three September 30, 2019 2018, $110 $80 nine September 30, 2019 2018, September 30, 2019, $403 3.13 In November 2010, “2010 2010 not 1,000,000 March 11, 2015. 2010 three 2010 90 During the nine September 30, 2019, 100,000 first three nine September 30, 2018, no Total compensation expense related to vested outstanding Units based on the estimated appreciation over their remaining terms was $0 three nine September 30, 2019 2018. During the nine September 30, 2019, 25,000 $116 first |
Earnings Per Share, Policy [Policy Text Block] | Net Income (Loss) per Common Share For the three September 30, 2019, not nine September 30, 2019, not three nine September 30, 2018, 2,217 3,553 |
Share Repurchase Program [Policy Text Block] | Share Repurchase Program We had a $250 August 2017. 1,245 32,985 $4 $130 three nine September 30, 2019, September 30, 2019, no |
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block] | Restricted Cash Cash and cash equivalents classified as restricted cash on our condensed consolidated balance sheets are restricted as to withdrawal or use under the terms of certain contractual agreements. The September 30, 2019 September 30, 2019, no |
Accounts Receivable [Policy Text Block] | Accounts Receivable and Allowance for Doubtful Accounts Credit is extended based upon an evaluation of the customer’s financial condition and, while collateral is not three nine September 30, 2019 $323 September 30, 2019 $222 December 31, 2018. |
Inventory, Policy [Policy Text Block] | Inventories Inventories are stated at the lower of cost ( first first may Inventories are as follows: September 30, December 31, 2019 2018 Raw Materials $ 17,036 $ 16,769 Work in Process 1,105 1,015 Finished Goods 198 332 Reserves (1,398 ) (1,112 ) Total $ 16,941 $ 17,004 |
Goodwill and Intangible Assets, Intangible Assets, Policy [Policy Text Block] | Other Intangible Assets Other intangible assets at September 30, 2019 December 31, 2018 September 30, 2019 Gross Carrying Accumulated Net Book Years Amount Amortization Value Customer Relationships 9 $ 1,302 $ 615 $ 687 Intellectual Property 3 100 86 14 Trade Names 20 814 173 641 Patents 7 55 - 55 Totals $ 2,271 $ 874 $ 1,397 December 31, 2018 Gross Carrying Accumulated Net Book Years Amount Amortization Value Customer Relationships 9 $ 1,302 $ 506 $ 796 Intellectual Property 3 100 61 39 Trade Names 20 814 143 671 Patents 7 17 - 17 Totals $ 2,233 $ 710 $ 1,523 Amortization expense for the three nine September 30, 2019 $55 $164, Estimated future annual amortization expense ( not Year Amount Remainder of 2019 $ 55 2020 191 2021 185 2022 185 2023 185 Thereafter 541 Total $ 1,342 |
Impairment or Disposal of Long-Lived Assets, Including Intangible Assets, Policy [Policy Text Block] | Impairment of Goodwill and Other Intangible Assets In accordance with ASC 350, Goodwill and Other Intangible Assets not may October 1 st No nine September 30, 2019 |
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | Impairment Analysis We evaluate long-lived assets, primarily property and equipment and intangible assets, as well as the related depreciation periods, whenever current events or changes in circumstances indicate that the carrying amount of an asset or asset group may not not No three nine September 30, 2019 2018, |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Adopted Accounting Standards On January 1, 2019, No. 2016 02, 842 not not one not The impact of adopting the new lease standard was the recognition of $5,731 no |
Note 1 - Summary of Significa_2
Note 1 - Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Notes Tables | |
Share-based Payment Arrangement, Option, Activity [Table Text Block] | Shares Weighted- Average Exercise Price Per Share Weighted- Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Outstanding - January 1, 2019 224,750 $ 3.44 Granted 186,200 4.31 Exercised (2,250 ) 3.20 Cancelled (109,700 ) 3.50 Outstanding - September 30, 2019 299,000 $ 3.96 9.13 $ - Exercisable - September 30, 2019 26,867 $ 3.41 8.46 $ - |
Schedule of Inventory, Current [Table Text Block] | September 30, December 31, 2019 2018 Raw Materials $ 17,036 $ 16,769 Work in Process 1,105 1,015 Finished Goods 198 332 Reserves (1,398 ) (1,112 ) Total $ 16,941 $ 17,004 |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | September 30, 2019 Gross Carrying Accumulated Net Book Years Amount Amortization Value Customer Relationships 9 $ 1,302 $ 615 $ 687 Intellectual Property 3 100 86 14 Trade Names 20 814 173 641 Patents 7 55 - 55 Totals $ 2,271 $ 874 $ 1,397 December 31, 2018 Gross Carrying Accumulated Net Book Years Amount Amortization Value Customer Relationships 9 $ 1,302 $ 506 $ 796 Intellectual Property 3 100 61 39 Trade Names 20 814 143 671 Patents 7 17 - 17 Totals $ 2,233 $ 710 $ 1,523 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Year Amount Remainder of 2019 $ 55 2020 191 2021 185 2022 185 2023 185 Thereafter 541 Total $ 1,342 |
Note 3 - Revenue (Tables)
Note 3 - Revenue (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Notes Tables | |
Contract with Customer, Asset and Liability [Table Text Block] | Nine Months Ended September 30, 2019 Outstanding at January 1, 2019 $ 6,431 Increase (decrease) attributed to: Transferred to receivables from contract assets recognized (4,923 ) Product transferred over time 5,703 Outstanding at September 30, 2019 $ 7,211 |
Disaggregation of Revenue [Table Text Block] | Three Months Ended September 30, 2019 Product/ Service Transferred Over Time Product Transferred at Point in Time Noncash Consideration Total Net Sales by Market Medical $ 14,399 $ 1,661 $ 983 $ 17,043 Industrial 7,279 822 522 8,623 Aerospace and Defense 3,978 133 281 4,392 Total net sales $ 25,656 $ 2,616 $ 1,786 $ 30,058 Nine Months Ended September 30, 2019 Product/ Service Transferred Over Time Product Transferred at Point in Time Noncash Consideration Total Net Sales by Market Medical $ 42,039 $ 1,914 $ 2,053 $ 46,006 Industrial 22,847 2,297 1,146 26,290 Aerospace and Defense 12,236 375 608 13,219 Total net sales $ 77,122 $ 4,586 $ 3,807 $ 85,515 |
Note 4 - Financing Arrangemen_2
Note 4 - Financing Arrangements (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Notes Tables | |
Schedule of Long-term Debt Instruments [Table Text Block] | September 30, December 31, 2019 2018 Real estate term notes bearing interest at one-month LIBOR + 2.25% (4.4% and 4.8% as of September 30, 2019 and December 31, 2018, respectively) maturing June 15, 2022 with monthly payments of approximately $41 plus interest secured by substantially all assets. $ 3,880 $ 4,253 Devicix Acquistion Note 1 payable to DeLange Holdings bears interest rate of 4.0% per annum, maturing July 1, 2019 - 156 Devicix Acquistion Note 2 payable to DeLange Holdings bears interest rate of 4.0% per annum, maturing July 1, 2019 - 203 3,880 4,612 Discount on Devicix Notes Payable - (23 ) Debt issuance Costs (141 ) (185 ) Total long-term debt 3,739 4,404 Current maturities of long-term debt (444 ) (780 ) Long-term debt - net of current maturities $ 3,295 $ 3,624 |
Note 5 - Leases (Tables)
Note 5 - Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Notes Tables | |
Lease, Cost [Table Text Block] | Three Months Ended September 30, Nine Months Ended September 30, Lease Cost 2019 2019 Operating lease cost $ 253 $ 785 Finance lease interest cost 21 54 Finance lease amortization expense 65 196 Total lease cost $ 339 $ 1,035 Nine Months Ended September 30 , 2019 Operating leases Cash paid for amounts included in the measurement of lease liabilities $ 555 Right-of-use assets obtained in exchange for lease obligations $ — Weighted-average remaining lease term (years) Operating leases 7.6 Finance leases 3.4 Weighted-average discount rate Operating leases 4.8 % Finance leases 5.4 % |
Schedule of Supplemental Balance Sheet Information Related to Leases [Table Text Block] | Balance Sheet Location September 30 , 2019 Assets Operating lease assets Operating lease assets $ 5,018 Finance lease assets Property, Plant and Equipment 1,834 Total leased assets 6,852 Liabilities Current Current operating lease liabilities Current Portion of Operating Lease Obligations 841 Current finance lease liabilities Current Portion of Finance Lease Obligations 476 Noncurrent Long-term operating lease liabilities Long Term Operating Lease Liabilities, Net 4,517 Long term finance lease liabilities Long Term Finance Lease Obligations, Net 1,168 Total lease liabilities $ 7,002 |
Schedule of Lease Liability Maturity [Table Text Block] | Operating Leases Finance Leases Total Remaining 2019 $ 191 $ 133 $ 324 2020 858 534 1,392 2021 722 534 1,256 2022 726 359 1,085 2023 738 138 876 Thereafter 3,381 102 3,483 Total lease payments $ 6,616 $ 1,800 $ 8,416 Less: Interest (1,258 ) (156 ) (1,414 ) Present value of lease liabilities $ 5,358 $ 1,644 $ 7,002 |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Operating Leases 2019 $ 1,024 2020 858 2021 722 2022 726 2023 738 Thereafter 3,380 Total minimum obligations $ 7,448 |
Note 1 - Summary of Significa_3
Note 1 - Summary of Significant Accounting Policies (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Jan. 01, 2019 | Dec. 31, 2018 | May 31, 2017 | Nov. 30, 2010 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 16,700 | 186,200 | |||||||
Incremental Common Shares Attributable to Share-based Payment Arrangements, Total | 2,217 | 3,553 | |||||||
Stock Repurchase Program, Authorized Amount | $ 250,000 | $ 250,000 | |||||||
Stock Repurchased During Period, Shares | 1,245 | 32,985 | |||||||
Stock Repurchased During Period, Value | $ 4,000 | $ 42,000 | $ 130,000 | $ 228,000 | |||||
Letters of Credit Outstanding, Amount | 0 | 0 | |||||||
Accounts Receivable, Allowance for Credit Loss, Current | 323,000 | 323,000 | $ 222,000 | ||||||
Amortization of Intangible Assets, Total | 55,000 | 164,000 | |||||||
Impairment of Long-Lived Assets to be Disposed of | 0 | 0 | 0 | 0 | |||||
Operating Lease, Right-of-Use Asset | 5,018,000 | 5,018,000 | $ 5,731,000 | ||||||
Operating Lease, Liability, Total | 5,358,000 | 5,358,000 | $ 5,731,000 | ||||||
Share-based Payment Arrangement, Option [Member] | |||||||||
Share-based Payment Arrangement, Expense | 35,000 | 35,000 | 110,000 | 80,000 | |||||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | 403,000 | $ 403,000 | |||||||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 3 years 47 days | ||||||||
Stock Appreciation Rights (SARs) [Member] | |||||||||
Share-based Payment Arrangement, Expense | $ 0 | $ 0 | $ 0 | $ 0 | |||||
Restricted Stock [Member] | |||||||||
Share-based Payment Arrangement, Expense | $ 116,000 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 25,000 | ||||||||
Stock Incentive Plan 2017 [Member] | Share-based Payment Arrangement, Option [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 350,000 | ||||||||
Equity Appreciation Rights Plan 2010 [Member] | Stock Appreciation Rights (SARs) [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 1,000,000 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted | 0 | 100,000 | 0 |
Note 1 - Summary of Significa_4
Note 1 - Summary of Significant Accounting Policies - Stock Option Activity (Details) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019USD ($)$ / sharesshares | Sep. 30, 2019USD ($)$ / sharesshares | |
Outstanding (in shares) | shares | 224,750 | |
Outstanding, weighted average exercise price per share (in dollars per share) | $ / shares | $ 3.44 | |
Granted (in shares) | shares | 16,700 | 186,200 |
Granted, weighted average exercise price per share (in dollars per share) | $ / shares | $ 4.31 | |
Exercised (in shares) | shares | (2,250) | |
Exercised, weighted average exercise price per share (in dollars per share) | $ / shares | $ 3.20 | |
Cancelled (in shares) | shares | (109,700) | |
Cancelled, weighted average exercise price per share (in dollars per share) | $ / shares | $ 3.50 | |
Outstanding (in shares) | shares | 299,000 | 299,000 |
Outstanding, weighted average exercise price per share (in dollars per share) | $ / shares | $ 3.96 | $ 3.96 |
Outstanding, weighted average remaining contractual term (Year) | 9 years 47 days | |
Outstanding, aggregate intrinsic value | $ | ||
Exercisable (in shares) | shares | 26,867 | 26,867 |
Exercisable, weighted average exercise price per share (in dollars per share) | $ / shares | $ 3.41 | $ 3.41 |
Exercisable, weighted average remaining contractual term (Year) | 8 years 167 days | |
Exercisable, aggregate intrinsic value | $ |
Note 1 - Summary of Significa_5
Note 1 - Summary of Significant Accounting Policies - Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | |
Raw Materials | $ 17,036 | $ 16,769 | |
Work in Process | 1,105 | 1,015 | |
Finished Goods | 198 | 332 | |
Reserves | (1,398) | (1,112) | |
Total | $ 16,941 | $ 17,004 | [1] |
[1] | The balance sheet at December 31, 2018 has been derived from the audited financial statements at that date. |
Note 1 - Summary of Significa_6
Note 1 - Summary of Significant Accounting Policies - Other Intangible Assets (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | ||
Gross carrying amount | $ 2,271 | $ 2,233 | |
Accumulated amortization | 874 | 710 | |
Other Intangible Assets, Net | $ 1,397 | $ 1,523 | [1] |
Customer Relationships [Member] | |||
Remaining lives (Year) | 9 years | 9 years | |
Gross carrying amount | $ 1,302 | $ 1,302 | |
Accumulated amortization | 615 | 506 | |
Other Intangible Assets, Net | $ 687 | $ 796 | |
Intellectual Property [Member] | |||
Remaining lives (Year) | 3 years | 3 years | |
Gross carrying amount | $ 100 | $ 100 | |
Accumulated amortization | 86 | 61 | |
Other Intangible Assets, Net | $ 14 | $ 39 | |
Trade Names [Member] | |||
Remaining lives (Year) | 20 years | 20 years | |
Gross carrying amount | $ 814 | $ 814 | |
Accumulated amortization | 173 | 143 | |
Other Intangible Assets, Net | $ 641 | $ 671 | |
Patents [Member] | |||
Remaining lives (Year) | 7 years | 7 years | |
Gross carrying amount | $ 55 | $ 17 | |
Accumulated amortization | |||
Other Intangible Assets, Net | $ 55 | $ 17 | |
[1] | The balance sheet at December 31, 2018 has been derived from the audited financial statements at that date. |
Note 1 - Summary of Significa_7
Note 1 - Summary of Significant Accounting Policies - Estimated Future Annual Amortization Expense (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Remainder of 2019 | $ 55 |
2020 | 191 |
2021 | 185 |
2022 | 185 |
2023 | 185 |
Thereafter | 541 |
Total | $ 1,342 |
Note 2 - Concentration of Cre_2
Note 2 - Concentration of Credit Risk and Major Customers (Details Textual) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019USD ($) | Sep. 30, 2018 | Sep. 30, 2019USD ($) | Sep. 30, 2018 | Dec. 31, 2018 | |
Excess Cash Balances, Number of High Credit Quality Financial Institutions | 2 | ||||
Cash, Ending Balance | $ 160 | $ 160 | |||
Concentration Risk, Number of Divisions | 2 | 2 | 2 | 2 | |
Geographic Concentration Risk [Member] | Revenue Benchmark [Member] | Division One of Largest Customer [Member] | |||||
Concentration Risk, Percentage | 19.00% | 20.00% | 21.00% | 20.00% | |
Geographic Concentration Risk [Member] | Revenue Benchmark [Member] | Largest Customer [Member] | |||||
Concentration Risk, Percentage | 9.00% | 20.00% | 15.00% | 19.00% | |
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | Division Two of Largest Customer [Member] | |||||
Concentration Risk, Percentage | 3.00% | 1.00% | 3.00% | 1.00% | |
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | Largest Customer [Member] | |||||
Concentration Risk, Percentage | 22.00% | 21.00% | 24.00% | 21.00% | |
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Largest Customer [Member] | |||||
Concentration Risk, Percentage | 28.00% | 16.00% | |||
UNITED STATES | |||||
Excess Cash Balances, Number of High Credit Quality Financial Institutions | 1 | ||||
CHINA | |||||
Excess Cash Balances, Number of High Credit Quality Financial Institutions | 1 | ||||
Cash, Ending Balance | $ 105 | $ 105 |
Note 3 - Revenue 1 (Details Tex
Note 3 - Revenue 1 (Details Textual) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Percentage of Revenue Transferred to Customers | 91.00% | 91.00% |
Revenue Remaining Performance Obligation, Customers Upon Shipment With Payment Terms | 120 days |
Note 3 - Revenue 2 (Details Tex
Note 3 - Revenue 2 (Details Textual) | Sep. 30, 2019 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 180 days |
Note 3 - Revenue - Contract Ass
Note 3 - Revenue - Contract Assets (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019USD ($) | ||
Outstanding at January 1, 2019 | $ 6,431 | [1] |
Transferred to receivables from contract assets recognized | (4,923) | |
Product transferred over time | 5,703 | |
Outstanding at September 30, 2019 | $ 7,211 | |
[1] | The balance sheet at December 31, 2018 has been derived from the audited financial statements at that date. |
Note 3 - Revenue - Disaggregati
Note 3 - Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Net sales | $ 30,058 | $ 29,558 | $ 85,515 | $ 84,543 |
Medical [Member] | ||||
Net sales | 17,043 | 46,006 | ||
Industrial [Member] | ||||
Net sales | 8,623 | 26,290 | ||
Aerospace and Defense [Member] | ||||
Net sales | 4,392 | 13,219 | ||
Transferred over Time [Member] | ||||
Net sales | 25,656 | 77,122 | ||
Transferred over Time [Member] | Medical [Member] | ||||
Net sales | 14,399 | 42,039 | ||
Transferred over Time [Member] | Industrial [Member] | ||||
Net sales | 7,279 | 22,847 | ||
Transferred over Time [Member] | Aerospace and Defense [Member] | ||||
Net sales | 3,978 | 12,236 | ||
Transferred at Point in Time [Member] | ||||
Net sales | 2,616 | 4,586 | ||
Transferred at Point in Time [Member] | Medical [Member] | ||||
Net sales | 1,661 | 1,914 | ||
Transferred at Point in Time [Member] | Industrial [Member] | ||||
Net sales | 822 | 2,297 | ||
Transferred at Point in Time [Member] | Aerospace and Defense [Member] | ||||
Net sales | 133 | 375 | ||
Noncash Consideration [Member] | ||||
Net sales | 1,786 | 3,807 | ||
Noncash Consideration [Member] | Medical [Member] | ||||
Net sales | 983 | 2,053 | ||
Noncash Consideration [Member] | Industrial [Member] | ||||
Net sales | 522 | 1,146 | ||
Noncash Consideration [Member] | Aerospace and Defense [Member] | ||||
Net sales | $ 281 | $ 608 |
Note 4 - Financing Arrangemen_3
Note 4 - Financing Arrangements (Details Textual) $ in Thousands, ¥ in Billions | Dec. 29, 2017USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018 | Jun. 30, 2019CNY (¥) | Dec. 31, 2018USD ($) | Jul. 01, 2015USD ($) |
Real Estate Term Note [Member] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.40% | 4.80% | ||||
First Unsecured Subordinated Promissory Notes Payable [Member] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.00% | |||||
Second Unsecured Subordinated Promissory Notes Payable [Member] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.00% | |||||
Promissory Note [Member] | First Unsecured Subordinated Promissory Notes Payable [Member] | ||||||
Debt Instrument, Face Amount | $ 1,000 | |||||
Promissory Note [Member] | Second Unsecured Subordinated Promissory Notes Payable [Member] | ||||||
Debt Instrument, Face Amount | $ 1,300 | |||||
Bank of America [Member] | Credit Agreement [Member] | ||||||
Long-term Line of Credit, Total | $ 12,430 | $ 9,264 | ||||
Line of Credit, Minimum Fixed Charge Coverage Ratio During the Period | 1 | |||||
Line of Credit Facility, Remaining Borrowing Capacity | $ 3,523 | |||||
Bank of America [Member] | Credit Agreement [Member] | Real Estate Term Note [Member] | ||||||
Debt Instrument, Face Amount | $ 5,000 | |||||
Bank of America [Member] | Credit Agreement [Member] | Line of Credit [Member] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 16,000 | |||||
Debt Instrument, Interest Rate During Period | 5.40% | 4.30% | ||||
China Construction Bank [Member] | Line of Credit [Member] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | ¥ | ¥ 6 | |||||
Long-term Line of Credit, Total | $ 0 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 6.00% |
Note 4 - Financing Arrangemen_4
Note 4 - Financing Arrangements - Long-term Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | |
Long-term debt gross | $ 3,880 | $ 4,612 | |
Discount on Devicix Notes Payable | (23) | ||
Debt issuance Costs | (141) | (185) | |
Total long-term debt | 3,739 | 4,404 | |
Current maturities of long-term debt | (444) | (780) | [1] |
Long-term debt - net of current maturities | 3,295 | 3,624 | |
Real Estate Term Note [Member] | |||
Long-term debt gross | 3,880 | 4,253 | |
First Unsecured Subordinated Promissory Notes Payable [Member] | |||
Long-term debt gross | 156 | ||
Second Unsecured Subordinated Promissory Notes Payable [Member] | |||
Long-term debt gross | $ 203 | ||
[1] | The balance sheet at December 31, 2018 has been derived from the audited financial statements at that date. |
Note 4 - Financing Arrangemen_5
Note 4 - Financing Arrangements - Long-term Debt (Details) (Parentheticals) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Real Estate Term Note [Member] | ||
Variable rate basis | 2.25% | 2.25% |
Interest rate | 4.40% | 4.80% |
Monthly payments | $ 41 | $ 41 |
First Unsecured Subordinated Promissory Notes Payable [Member] | ||
Interest rate | 4.00% | |
Second Unsecured Subordinated Promissory Notes Payable [Member] | ||
Interest rate | 4.00% |
Note 5 - Leases (Details Textua
Note 5 - Leases (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2018 | Sep. 30, 2019 | |
Operating Lease, Expense | $ 297 | $ 951 | |
Minimum [Member] | |||
Lessee, Operating Lease, Renewal Term | 1 year | ||
Maximum [Member] | |||
Lessee, Operating Lease, Renewal Term | 5 years |
Note 5 - Leases - Lease Cost (D
Note 5 - Leases - Lease Cost (Details) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019USD ($) | Sep. 30, 2019USD ($) | |
Operating lease cost | $ 253 | $ 785 |
Finance lease interest cost | 21 | 54 |
Finance lease amortization expense | 65 | 196 |
Total lease cost | $ 339 | 1,035 |
Cash paid for amounts included in the measurement of lease liabilities | $ 555 | |
Operating leases (Year) | 7 years 219 days | 7 years 219 days |
Finance leases (Year) | 3 years 146 days | 3 years 146 days |
Operating leases | 4.80% | 4.80% |
Finance leases | 5.40% | 5.40% |
Note 5 - Leases - Supplemental
Note 5 - Leases - Supplemental Balance Sheet Information (Details) - USD ($) | Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | |
Operating lease assets | $ 5,018,000 | $ 5,731,000 | ||
Finance lease assets | 1,834,000 | |||
Total leased assets | 6,852,000 | |||
Current operating lease liabilities | 841,000 | [1] | ||
Current finance lease liabilities | 476,000 | 337,000 | ||
Long-term operating lease liabilities | 4,517,000 | [1] | ||
Long term finance lease liabilities | 1,168,000 | $ 951,000 | [1] | |
Total lease liabilities | $ 7,002,000 | |||
[1] | The balance sheet at December 31, 2018 has been derived from the audited financial statements at that date. |
Note 5 - Leases - Maturity of L
Note 5 - Leases - Maturity of Lease Liabilities (Details) - USD ($) | Sep. 30, 2019 | Jan. 01, 2019 |
Operating leases, remaining 2019 | $ 191,000 | |
Finance leases, remaining 2019 | 133,000 | |
Total, remaining 2019 | 324,000 | |
Operating leases, 2020 | 858,000 | |
Finance leases, 2020 | 534,000 | |
Total, 2020 | 1,392,000 | |
Operating leases, 2021 | 722,000 | |
Finance leases, 2021 | 534,000 | |
Total, 2021 | 1,256,000 | |
Operating leases, 2022 | 726,000 | |
Finance leases, 2022 | 359,000 | |
Total, 2022 | 1,085,000 | |
Operating leases, 2023 | 738,000 | |
Finance leases, 2023 | 138,000 | |
Total, 2023 | 876,000 | |
Operating leases, thereafter | 3,381,000 | |
Finance leases, thereafter | 102,000 | |
Total, thereafter | 3,483,000 | |
Operating leases, total lease payments | 6,616,000 | |
Finance leases, total lease payments | 1,800,000 | |
Total, total lease payments | 8,416,000 | |
Operating leases, less: Interest | (1,258,000) | |
Finance leases, less: Interest | (156,000) | |
Total, less: Interest | (1,414,000) | |
Operating leases, present value of lease liabilities | 5,358,000 | $ 5,731,000 |
Finance leases, present value of lease liabilities | 1,644,000 | |
Total, present value of lease liabilities | $ 7,002,000 |
Note 5 - Leases - Future Minimu
Note 5 - Leases - Future Minimum Lease Commitments (Details) $ in Thousands | Dec. 31, 2018USD ($) |
2019 | $ 1,024 |
2020 | 858 |
2021 | 722 |
2022 | 726 |
2023 | 738 |
Thereafter | 3,380 |
Total minimum obligations | $ 7,448 |
Note 6 - Income Taxes (Details
Note 6 - Income Taxes (Details Textual) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Effective Income Tax Rate Reconciliation, Percent, Total | 10.00% | 24.00% | (9.00%) | 49.00% |