Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2020 | Nov. 04, 2020 | |
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 Interactive Data Current | Yes | |
Entity Common Stock, Shares Outstanding (in shares) | 2,657,530 | |
Entity Shell Company | false | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Title of 12(b) Security | Common Stock, par value $.01 per share |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Net sales | $ 26,362 | $ 30,058 | $ 80,263 | $ 85,515 |
Cost of Goods Sold | 24,716 | 26,423 | 73,171 | 76,594 |
Gross Profit | 1,646 | 3,635 | 7,092 | 8,921 |
Operating Expenses | ||||
Selling Expenses | 594 | 589 | 1,945 | 2,147 |
General and Administrative Expenses | 2,164 | 2,333 | 5,819 | 7,374 |
Gain on Sale of Property and Equipment | (3,821) | (3,821) | ||
Total Operating Expenses | (1,063) | 2,922 | 3,943 | 9,521 |
Income (Loss) From Operations | 2,709 | 713 | 3,149 | (600) |
Other Expense | ||||
Interest Expense | (126) | (256) | (526) | (780) |
Income (Loss) Before Income Taxes | 2,583 | 457 | 2,623 | (1,380) |
Income Tax Expense | 612 | 44 | 638 | 122 |
Net Income (Loss) | $ 1,971 | $ 413 | $ 1,985 | $ (1,502) |
Net Income (Loss) Per Common Share: | ||||
Basic (in dollars per share) (in dollars per share) | $ 0.74 | $ 0.16 | $ 0.75 | $ (0.56) |
Weighted Average Number of Common Shares Outstanding - Basic (in shares) (in shares) | 2,657,530 | 2,657,911 | 2,657,530 | 2,667,754 |
Diluted (in dollars per share) (in dollars per share) | $ 0.73 | $ 0.16 | $ 0.74 | $ (0.56) |
Weighted Average Number of Common Shares Outstanding - Diluted (in shares) (in shares) | 2,703,029 | 2,657,911 | 2,678,698 | 2,667,754 |
Other comprehensive income (loss) | ||||
Foreign currency translation | $ 96 | $ (56) | $ 54 | $ (56) |
Comprehensive income (loss), net of tax | $ 2,067 | $ 357 | $ 2,039 | $ (1,558) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | |
ASSETS | |||
Cash | $ 328 | $ 351 | [1] |
Restricted Cash | 1,366 | 309 | [1] |
Accounts Receivable, less allowances of $493 and $335 | 16,019 | 18,558 | [1] |
Inventories | 14,496 | 14,279 | [1] |
Contract Assets | 7,334 | 7,659 | [1] |
Prepaid Expenses and Other Current Assets | 1,274 | 2,128 | [1] |
Total Current Assets | 40,817 | 43,284 | [1] |
Property and Equipment, Net | 6,631 | 9,581 | [1] |
Operating Lease Assets | 8,924 | 4,827 | [1] |
Goodwill | 2,375 | 2,375 | [1] |
Other Intangible Assets, Net | 1,210 | 1,343 | [1] |
Total Assets | 59,957 | 61,410 | [1] |
Current Liabilities | |||
Current Maturities of Long-Term Debt | 444 | 444 | [1] |
Current Portion of Finance Lease Obligation | 652 | 557 | [1] |
Current Portion of Operating Lease Obligations | 614 | 858 | [1] |
Accounts Payable | 11,213 | 14,014 | [1] |
Accrued Payroll and Commissions | 2,912 | 3,493 | [1] |
Customer Deposits | 631 | 618 | |
Income Tax Payable | 398 | 134 | |
Other Accrued Liabilities | 1,382 | 2,114 | [1] |
Total Current Liabilities | 18,246 | 22,232 | [1] |
Long-Term Liabilities | |||
Long Term Line of Credit | 2,546 | 10,088 | [1] |
Long-Term Debt, Net | 6,730 | 3,179 | [1] |
Long Term Finance Lease Obligation, Net | 1,320 | 1,451 | [1] |
Long-Term Operating Lease Obligation, Net | 8,832 | 4,366 | [1] |
Other Long-Term Liabilities | 157 | 118 | [1] |
Total Long-Term Liabilities | 19,585 | 19,202 | [1] |
Total Liabilities | 37,831 | 41,434 | [1] |
Shareholders' Equity | |||
Preferred Stock, $1 par value; 1,000,000 Shares Authorized: 250,000 Shares Issued and Outstanding | 250 | 250 | [1] |
Common Stock - $0.01 par value; 9,000,000 Shares Authorized: 2,657,530 Shares Issued and Outstanding | 27 | 27 | |
Additional Paid-In Capital | 15,859 | 15,748 | [1] |
Accumulated Other Comprehensive Loss | (203) | (257) | [1] |
Retained Earnings | 6,193 | 4,208 | [1] |
Total Shareholders' Equity | 22,126 | 19,976 | [1] |
Total Liabilities and Shareholders' Equity | $ 59,957 | $ 61,410 | [1] |
[1] | The balance sheet at December 31, 2019 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, 2020 | Dec. 31, 2019 | |
Accounts receivable allowance | $ 493 | $ 335 | [1] |
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 | [1] |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 | [1] |
Preferred stock, shares issued (in shares) | 250,000 | 250,000 | [1] |
Preferred stock, shares outstanding (in shares) | 250,000 | 250,000 | [1] |
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) | 2,657,530 | 2,657,530 | |
Common stock, shares outstanding (in shares) | 2,657,530 | 2,657,530 | |
[1] | The balance sheet at December 31, 2019 has been derived from the audited financial statements at that date |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Cash Flows From Operating Activities | ||
Net Income (Loss) | $ 1,985 | $ (1,502) |
Adjustments to Reconcile Net Income (Loss) to Net Cash | ||
Depreciation and Amortization | 1,703 | 1,648 |
Compensation on Stock-Based & Equity Awards | 151 | 226 |
Deferred Taxes | 1 | |
Change in Accounts Receivable Allowance | 158 | 101 |
Change in Inventory Reserves | 398 | 285 |
Gain on Disposal of Property and Equipment | (3,821) | |
Changes in Current Operating Items | ||
Accounts Receivable | 2,430 | (158) |
Inventories | (567) | (237) |
Contract Assets | 325 | (780) |
Prepaid Expenses and Other Current Assets | 858 | (641) |
Accounts Payable | (2,808) | 663 |
Accrued Payroll and Commissions | (621) | (120) |
Other Accrued Liabilities | (290) | 281 |
Net Cash Used in Operating Activities | (99) | (233) |
Cash Flows from Investing Activities | ||
Proceeds from Sale of Property and Equipment | 6,019 | |
Purchase of Intangible Asset | (25) | (37) |
Purchases of Property and Equipment | (397) | (785) |
Net Cash Provided By (Used In) Investing Activities | 5,597 | (822) |
Cash Flows from Financing Activities | ||
Net Change in Line of Credit | (7,542) | 3,165 |
Proceeds from Long-Term Debt | 6,077 | |
Principal Payments on Long-Term Debt | (2,567) | (728) |
Principal Payments on Finance Leases | (432) | (251) |
Stock option exercises | 7 | |
Share Repurchases | (130) | |
Net Cash (Used In) Provided By Financing Activities | (4,464) | 2,063 |
Effect of Exchange Rate Changes on Cash | (2) | |
Net Change in Cash | 1,034 | 1,006 |
Cash - Beginning of Period | 660 | 948 |
Cash - Ending of Period | 1,694 | 1,954 |
Reconciliation of cash and restricted cash reported within the condensed consolidated balance sheets | ||
Cash | 328 | 160 |
Restricted Cash | 1,366 | 1,794 |
Cash - Ending of Period | 1,694 | 1,954 |
Supplemental Disclosure of Cash Flow Information: | ||
Cash Paid During the Period for Interest | 526 | 739 |
Cash Paid (Refunded) During the Period for Income Taxes | 262 | (83) |
Supplemental Noncash Investing and Financing Activities: | ||
Property and Equipment Purchases in Accounts Payable | 6 | 30 |
Equipment Acquired under Finance Lease | $ 395 | $ 607 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) $ in Thousands | Cumulative Effect, Period of Adoption, Adjustment [Member]Preferred Stock [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]Common Stock [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]Additional Paid-in Capital [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]AOCI Attributable to Parent [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]Retained Earnings [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | AOCI Attributable to Parent [Member] | Retained Earnings [Member] | Total | |
BALANCE at Dec. 31, 2018 | $ 250 | $ 27 | $ 15,610 | $ (233) | $ 5,436 | $ 21,090 | |||||||
Net Income (Loss) | (1,502) | (1,502) | |||||||||||
Foreign currency translation adjustment | (56) | (56) | |||||||||||
Compensation on stock-based awards | 226 | 226 | |||||||||||
Share repurchases | (130) | (130) | |||||||||||
Stock option exercises | 7 | 7 | |||||||||||
BALANCE at Sep. 30, 2019 | 250 | 27 | 15,713 | (289) | 3,934 | 19,635 | |||||||
BALANCE at Jun. 30, 2019 | 250 | 27 | 15,682 | (233) | 3,521 | 19,247 | |||||||
Net Income (Loss) | 413 | ||||||||||||
Foreign currency translation adjustment | (56) | (56) | |||||||||||
Compensation on stock-based awards | 35 | 35 | |||||||||||
Share repurchases | (4) | (4) | |||||||||||
BALANCE at Sep. 30, 2019 | 250 | 27 | 15,713 | (289) | 3,934 | 19,635 | |||||||
BALANCE at Jun. 30, 2019 | 250 | 27 | 15,682 | (233) | 3,521 | 19,247 | |||||||
Net Income (Loss) | 413 | 413 | |||||||||||
BALANCE at Jun. 30, 2020 | 250 | 27 | 15,823 | (299) | 4,222 | 20,023 | |||||||
BALANCE at Dec. 31, 2019 | 250 | 27 | 15,748 | (257) | 4,208 | 19,976 | [1] | ||||||
Net Income (Loss) | 1,985 | 1,985 | |||||||||||
Foreign currency translation adjustment | 54 | 54 | |||||||||||
Compensation on stock-based awards | 111 | 111 | |||||||||||
Share repurchases | |||||||||||||
Stock option exercises | |||||||||||||
BALANCE at Sep. 30, 2020 | 250 | 27 | 15,859 | (203) | 6,193 | 22,126 | |||||||
BALANCE at Jun. 30, 2020 | 250 | 27 | 15,823 | (299) | 4,222 | 20,023 | |||||||
Net Income (Loss) | 1,971 | 1,971 | |||||||||||
Foreign currency translation adjustment | 96 | 96 | |||||||||||
Compensation on stock-based awards | 36 | 36 | |||||||||||
Share repurchases | |||||||||||||
BALANCE at Sep. 30, 2020 | $ 250 | $ 27 | $ 15,859 | $ (203) | $ 6,193 | $ 22,126 | |||||||
[1] | The balance sheet at December 31, 2019 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, 2020 | |
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, 2019. 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% Stock-Based Awards Following is the status of all stock options as of September 30, 2020: Shares Weighted- Average Exercise Price Per Share Weighted- Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding - January 1, 2020 372,200 $ 3.85 Granted 11,300 2.95 Exercised - Cancelled (16,667 ) 3.65 Outstanding - September 30, 2020 366,833 $ 3.83 7.88 $ 317 Exercisable - September 30, 2020 181,640 $ 3.72 7.44 $ 176 In May 2017, 2017 400,000 50,000 March 2020. 11,300 nine September 30, 2020. Total compensation expense was $36 $35 three September 30, 2020 2019, $111 $226 nine September 30, 2020 2019, September 30, 2020, $260 2.39 In November 2010, “2010 2010 not 1,000,000 March 11, 2015. nine September 30, 2019, 137,500 no nine September 30, 2020. $40 three nine September 30, 2020 no three nine September 30, 2019. September 30, 2020 $40. Net Income (Loss) per Common Share For the three nine September 30 ,2020, 45,326 21,110, three nine September 30, 2019, not 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, 2020 September 30, 2020, $500 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 $493 September 30, 2020 $335 December 31, 2019. Inventories Inventories are stated at the lower of cost (average cost method) or net realizable value. Costs include material, labor, and overhead required in the warehousing and production of our products. Inventory reserves are maintained for the estimated value of the inventories that may Inventories are as follows: September 30, December 31, 2020 2019 Raw Materials $ 15,314 $ 15,245 Work in Process 607 479 Finished Goods 459 41 Reserves (1,884 ) (1,486 ) Total $ 14,496 $ 14,279 Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Additions, improvements and major renewals are capitalized, while maintenance and minor repairs are expensed as incurred. When assets are retired or disposed of, the assets and related accumulated depreciation are removed from the accounts and the resulting gain or loss is reflected in operations. Leasehold improvements are depreciated over the shorter of their estimated useful lives or their remaining lease terms. All other property and equipment are depreciated by the straight-line method over their estimated useful lives. In the three September 30, 2020, $6,019 $3,821. 15 5 5, Other Intangible Asse ts Other intangible assets at September 30, 2020 December 31, 2019 September 30, 2020 Gross Carrying Accumulated Net Book Years Amount Amortization Value Customer Relationships 9 $ 1,302 $ 759 $ 543 Intellectual Property 3 100 100 - Trade Names 20 814 214 600 Patents 7 67 - 67 Totals $ 2,283 $ 1,073 $ 1,210 December 31, 2019 Gross Carrying Accumulated Net Book Years Amount Amortization Value Customer Relationships 9 $ 1,302 $ 651 $ 651 Intellectual Property 3 100 95 5 Trade Names 20 814 183 631 Patents 7 56 - 56 Totals $ 2,272 $ 929 $ 1,343 Amortization expense for the three nine September 30, 2020 $47 $145 Estimated future annual amortization expense ( not Year Amount Remainder of 2020 $ 46 2021 186 2022 185 2023 185 2024 113 Thereafter 428 Total $ 1,143 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, 2020 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, 2020 2019, Accounting Pronouncements Issued But Not In June 2016, No. 2016 13, 326 December 15, 2022; |
Note 2 - Concentration of Credi
Note 2 - Concentration of Credit Risk and Major Customers | 9 Months Ended |
Sep. 30, 2020 | |
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 $1,694 September 30, 2020, $244 not Our largest customer has two 10% three nine September 30, 2020 2019. 20% 21% three nine September 30, 2020, 19% 21% three nine September 30, 2019, 3% three nine September 30, 2020, 3% three nine September 30, 2019. 23% 24% three nine September 30, 2020, 22% 24% three nine September 30, 2019, September 30, 2020 December 31, 2019 37% 36% Export sales represented approximately 9% three September 30, 2020 2019. 10% 15% nine September 30, 2020 2019, |
Note 3 - Revenue
Note 3 - Revenue | 9 Months Ended |
Sep. 30, 2020 | |
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 80% 84% three nine September 30, 2020, 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 nine September 30, 2020 Nine Months Ended September 30, 2020 Outstanding at January 1, 2020 $ 7,659 Increase (decrease) attributed to: Transferred to receivables from contract assets recognized (6,104 ) Product transferred over time 5,779 Outstanding at September 30, 2020 $ 7,334 We expect substantially all the remaining performance obligations for the contract assets recorded as of September 30, 2020, 90 180 120 The following tables summarize our net sales by market for the three nine September 30, 2020: Three Months Ended September 30, 2020 Product/ Service Transferred Over Time Product Transferred at Point in Time Noncash Consideration Total Net Sales by Market Medical $ 10,960 $ 1,853 $ 1,405 $ 14,218 Industrial 4,527 791 620 5,938 Aerospace and Defense 5,525 16 665 6,206 Total net sales $ 21,012 $ 2,660 $ 2,690 $ 26,362 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, 2020 Product/ Service Transferred Over Time Product Transferred at Point in Time Noncash Consideration Total Net Sales by Market Medical $ 35,835 $ 4,454 $ 2,464 $ 42,753 Industrial 17,434 3,354 1,213 22,001 Aerospace and Defense 14,160 396 953 15,509 Total net sales $ 67,429 $ 8,204 $ 4,630 $ 80,263 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, 2020 | |
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 3.7% 5.4% September 30, 2020 2019, $2,546 $10,088 September 30, 2020 December 31, 2019, 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. At September 30, 2020, $8,640, The Bank of America Credit Agreement provides for, among other things, a Fixed Charge Coverage Ratio of not 1.0 1.0, three December 31, 2019, six March 31, 2020, nine June 30, 2020 twelve September 30, 2020 September 30, 2020. On April 15, 2020, $6,077 April 22, 2020. 2 1% 10 24 60 Long-term debt at September 30, 2020 December 30, 2019 September 30, December 31, 2020 2019 Real estate term notes bearing interest at one-month LIBOR + 2.25% (3.0% and 4.1% as of September 30, 2020 and December 31, 2019, respectively) maturing June 15, 2022 with monthly payments of approximately $41 plus interest secured by substantially all assets. $ 1,188 $ 3,755 Promissory Note 6,077 - 7,265 3,755 Debt issuance Costs (91 ) (132 ) Total long-term debt 7,174 3,623 Current maturities of long-term debt (444 ) (444 ) Long-term debt - net of current maturities $ 6,730 $ 3,179 |
Note 5 - Leases
Note 5 - Leases | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Lease Disclosure [Text Block] | NOTE 5. 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, 2020, not not Supplemental balance sheet information related to leases was as follows: Balance Sheet Location September 30, 2020 Assets Operating lease assets Operating lease assets $ 8,924 Finance lease assets Property, Plant and Equipment 2,493 Total leased assets $ 11,417 Liabilities Current Current operating lease liabilities Current Portion of Operating Lease Obligations $ 614 Current finance lease liabilities Current Portion of Finance Lease Obligations 652 Noncurrent Long-term operating lease liabilities Long Term Operating Lease Liabilities, Net 8,832 Long term finance lease liabilities Long Term Finance Lease Obligations, Net 1,320 Total lease liabilities $ 11,418 Supplemental cash flow information related to leases was as follows: Nine Months Ended September 30, 2020 Operating leases Cash paid for amounts included in the measurement of lease liabilities $ 686 Right-of-use assets obtained in exchange for lease obligations $ 4,685 Maturities of lease liabilities were as follows: Operating Leases Finance Leases Total Remaining 2020 $ 351 $ 207 $ 558 2021 1,264 738 2,002 2022 1,279 575 1,854 2023 1,302 333 1,635 2024 1,374 277 1,651 Thereafter 9,489 20 9,509 Total lease payments $ 15,059 $ 2,150 $ 17,209 Less: Interest (5,613 ) (178 ) (5,791 ) Present value of lease liabilities $ 9,446 $ 1,972 $ 11,418 The lease term and discount rate at September 30, 2020 Weighted-average remaining lease term (years) Operating leases 11.1 Finance leases 3.3 Weighted-average discount rate Operating leases 7.4 % Finance leases 5.2 % |
Note 6 - Income Taxes
Note 6 - Income Taxes | 9 Months Ended |
Sep. 30, 2020 | |
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, 2020 24% three nine September 30, 2019 10% 9% |
Note 7 - Related Party Transact
Note 7 - Related Party Transactions | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | NOTE 7. During three nine September 30, 2020, 90% $0 $35 three September 30, 2020 2019, $28 $87 nine September 30, 2020 2019, |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
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, 2019. 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] | Stock-Based Awards Following is the status of all stock options as of September 30, 2020: Shares Weighted- Average Exercise Price Per Share Weighted- Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding - January 1, 2020 372,200 $ 3.85 Granted 11,300 2.95 Exercised - Cancelled (16,667 ) 3.65 Outstanding - September 30, 2020 366,833 $ 3.83 7.88 $ 317 Exercisable - September 30, 2020 181,640 $ 3.72 7.44 $ 176 In May 2017, 2017 400,000 50,000 March 2020. 11,300 nine September 30, 2020. Total compensation expense was $36 $35 three September 30, 2020 2019, $111 $226 nine September 30, 2020 2019, September 30, 2020, $260 2.39 In November 2010, “2010 2010 not 1,000,000 March 11, 2015. nine September 30, 2019, 137,500 no nine September 30, 2020. $40 three nine September 30, 2020 no three nine September 30, 2019. September 30, 2020 $40. |
Earnings Per Share, Policy [Policy Text Block] | Net Income (Loss) per Common Share For the three nine September 30 ,2020, 45,326 21,110, three nine September 30, 2019, not |
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, 2020 September 30, 2020, $500 |
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 $493 September 30, 2020 $335 December 31, 2019. |
Inventory, Policy [Policy Text Block] | Inventories Inventories are stated at the lower of cost (average cost method) or net realizable value. Costs include material, labor, and overhead required in the warehousing and production of our products. Inventory reserves are maintained for the estimated value of the inventories that may Inventories are as follows: September 30, December 31, 2020 2019 Raw Materials $ 15,314 $ 15,245 Work in Process 607 479 Finished Goods 459 41 Reserves (1,884 ) (1,486 ) Total $ 14,496 $ 14,279 |
Property, Plant and Equipment, Policy [Policy Text Block] | Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Additions, improvements and major renewals are capitalized, while maintenance and minor repairs are expensed as incurred. When assets are retired or disposed of, the assets and related accumulated depreciation are removed from the accounts and the resulting gain or loss is reflected in operations. Leasehold improvements are depreciated over the shorter of their estimated useful lives or their remaining lease terms. All other property and equipment are depreciated by the straight-line method over their estimated useful lives. In the three September 30, 2020, $6,019 $3,821. 15 5 5, |
Goodwill and Intangible Assets, Intangible Assets, Policy [Policy Text Block] | Other Intangible Asse ts Other intangible assets at September 30, 2020 December 31, 2019 September 30, 2020 Gross Carrying Accumulated Net Book Years Amount Amortization Value Customer Relationships 9 $ 1,302 $ 759 $ 543 Intellectual Property 3 100 100 - Trade Names 20 814 214 600 Patents 7 67 - 67 Totals $ 2,283 $ 1,073 $ 1,210 December 31, 2019 Gross Carrying Accumulated Net Book Years Amount Amortization Value Customer Relationships 9 $ 1,302 $ 651 $ 651 Intellectual Property 3 100 95 5 Trade Names 20 814 183 631 Patents 7 56 - 56 Totals $ 2,272 $ 929 $ 1,343 Amortization expense for the three nine September 30, 2020 $47 $145 Estimated future annual amortization expense ( not Year Amount Remainder of 2020 $ 46 2021 186 2022 185 2023 185 2024 113 Thereafter 428 Total $ 1,143 |
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, 2020 |
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, 2020 2019, |
New Accounting Pronouncements, Policy [Policy Text Block] | Accounting Pronouncements Issued But Not In June 2016, No. 2016 13, 326 December 15, 2022; |
Note 1 - Summary of Significa_2
Note 1 - Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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 Outstanding - January 1, 2020 372,200 $ 3.85 Granted 11,300 2.95 Exercised - Cancelled (16,667 ) 3.65 Outstanding - September 30, 2020 366,833 $ 3.83 7.88 $ 317 Exercisable - September 30, 2020 181,640 $ 3.72 7.44 $ 176 |
Schedule of Inventory, Current [Table Text Block] | September 30, December 31, 2020 2019 Raw Materials $ 15,314 $ 15,245 Work in Process 607 479 Finished Goods 459 41 Reserves (1,884 ) (1,486 ) Total $ 14,496 $ 14,279 |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | September 30, 2020 Gross Carrying Accumulated Net Book Years Amount Amortization Value Customer Relationships 9 $ 1,302 $ 759 $ 543 Intellectual Property 3 100 100 - Trade Names 20 814 214 600 Patents 7 67 - 67 Totals $ 2,283 $ 1,073 $ 1,210 December 31, 2019 Gross Carrying Accumulated Net Book Years Amount Amortization Value Customer Relationships 9 $ 1,302 $ 651 $ 651 Intellectual Property 3 100 95 5 Trade Names 20 814 183 631 Patents 7 56 - 56 Totals $ 2,272 $ 929 $ 1,343 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Year Amount Remainder of 2020 $ 46 2021 186 2022 185 2023 185 2024 113 Thereafter 428 Total $ 1,143 |
Note 3 - Revenue (Tables)
Note 3 - Revenue (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Notes Tables | |
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Table Text Block] | Nine Months Ended September 30, 2020 Outstanding at January 1, 2020 $ 7,659 Increase (decrease) attributed to: Transferred to receivables from contract assets recognized (6,104 ) Product transferred over time 5,779 Outstanding at September 30, 2020 $ 7,334 |
Disaggregation of Revenue [Table Text Block] | Three Months Ended September 30, 2020 Product/ Service Transferred Over Time Product Transferred at Point in Time Noncash Consideration Total Net Sales by Market Medical $ 10,960 $ 1,853 $ 1,405 $ 14,218 Industrial 4,527 791 620 5,938 Aerospace and Defense 5,525 16 665 6,206 Total net sales $ 21,012 $ 2,660 $ 2,690 $ 26,362 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, 2020 Product/ Service Transferred Over Time Product Transferred at Point in Time Noncash Consideration Total Net Sales by Market Medical $ 35,835 $ 4,454 $ 2,464 $ 42,753 Industrial 17,434 3,354 1,213 22,001 Aerospace and Defense 14,160 396 953 15,509 Total net sales $ 67,429 $ 8,204 $ 4,630 $ 80,263 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, 2020 | |
Notes Tables | |
Schedule of Long-term Debt Instruments [Table Text Block] | September 30, December 31, 2020 2019 Real estate term notes bearing interest at one-month LIBOR + 2.25% (3.0% and 4.1% as of September 30, 2020 and December 31, 2019, respectively) maturing June 15, 2022 with monthly payments of approximately $41 plus interest secured by substantially all assets. $ 1,188 $ 3,755 Promissory Note 6,077 - 7,265 3,755 Debt issuance Costs (91 ) (132 ) Total long-term debt 7,174 3,623 Current maturities of long-term debt (444 ) (444 ) Long-term debt - net of current maturities $ 6,730 $ 3,179 |
Note 5 - Leases (Tables)
Note 5 - Leases (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Notes Tables | |
Schedule of Supplemental Balance Sheet Information Related to Leases [Table Text Block] | Balance Sheet Location September 30, 2020 Assets Operating lease assets Operating lease assets $ 8,924 Finance lease assets Property, Plant and Equipment 2,493 Total leased assets $ 11,417 Liabilities Current Current operating lease liabilities Current Portion of Operating Lease Obligations $ 614 Current finance lease liabilities Current Portion of Finance Lease Obligations 652 Noncurrent Long-term operating lease liabilities Long Term Operating Lease Liabilities, Net 8,832 Long term finance lease liabilities Long Term Finance Lease Obligations, Net 1,320 Total lease liabilities $ 11,418 |
Lease, Cost [Table Text Block] | Nine Months Ended September 30, 2020 Operating leases Cash paid for amounts included in the measurement of lease liabilities $ 686 Right-of-use assets obtained in exchange for lease obligations $ 4,685 Weighted-average remaining lease term (years) Operating leases 11.1 Finance leases 3.3 Weighted-average discount rate Operating leases 7.4 % Finance leases 5.2 % |
Schedule of Lease Liability Maturity [Table Text Block] | Operating Leases Finance Leases Total Remaining 2020 $ 351 $ 207 $ 558 2021 1,264 738 2,002 2022 1,279 575 1,854 2023 1,302 333 1,635 2024 1,374 277 1,651 Thereafter 9,489 20 9,509 Total lease payments $ 15,059 $ 2,150 $ 17,209 Less: Interest (5,613 ) (178 ) (5,791 ) Present value of lease liabilities $ 9,446 $ 1,972 $ 11,418 |
Note 1 - Summary of Significa_3
Note 1 - Summary of Significant Accounting Policies (Details Textual) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||
Mar. 31, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | [1] | May 31, 2017 | Nov. 30, 2010 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in shares) | 11,300 | ||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 45,326 | 21,110 | |||||||
Letters of Credit Outstanding, Amount | $ 500 | $ 500 | |||||||
Accounts Receivable, Allowance for Credit Loss, Current | 493 | 493 | $ 335 | ||||||
Proceeds from Sale of Property, Plant, and Equipment, Total | 6,019 | 6,019 | |||||||
Gain (Loss) on Disposition of Property Plant Equipment, Excluding Oil and Gas Property and Timber Property | 3,821 | 3,821 | |||||||
Amortization of Intangible Assets, Total | 47 | 145 | |||||||
Impairment of Long-Lived Assets to be Disposed of | $ 0 | 0 | $ 0 | 0 | |||||
Minnesota Facilities [Member] | |||||||||
Lessee, Operating Lease, Term of Contract (Year) | 15 years | 15 years | |||||||
Lessee, Operating Lease, Renewal Term (Year) | 5 years | 5 years | |||||||
Share-based Payment Arrangement, Option [Member] | |||||||||
Share-based Payment Arrangement, Expense | $ 36 | 35 | $ 111 | 226 | |||||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | 260 | $ 260 | |||||||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year) | 2 years 142 days | ||||||||
Stock Appreciation Rights (SARs) [Member] | |||||||||
Share-based Payment Arrangement, Expense | 40 | $ 0 | $ 40 | $ 0 | |||||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $ 40 | $ 40 | |||||||
Stock Incentive Plan 2017 [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in shares) | 400,000 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized (in shares) | 50,000 | ||||||||
Equity Appreciation Rights Plan 2010 [Member] | Stock Appreciation Rights (SARs) [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in shares) | 1,000,000 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 0 | 137,500 | |||||||
[1] | The balance sheet at December 31, 2019 has been derived from the audited financial statements at that date |
Note 1 - Summary of Significa_4
Note 1 - Summary of Significant Accounting Policies - Stock Option Activity (Details) $ / shares in Units, $ in Thousands | 9 Months Ended |
Sep. 30, 2020USD ($)$ / sharesshares | |
Outstanding (in shares) | shares | 372,200 |
Outstanding, weighted average exercise price per share (in dollars per share) | $ / shares | $ 3.85 |
Granted (in shares) | shares | 11,300 |
Granted, weighted average exercise price per share (in dollars per share) | $ / shares | $ 2.95 |
Cancelled (in shares) | shares | (16,667) |
Cancelled, weighted average exercise price per share (in dollars per share) | $ / shares | $ 3.65 |
Outstanding (in shares) | shares | 366,833 |
Outstanding, weighted average exercise price per share (in dollars per share) | $ / shares | $ 3.83 |
Outstanding, weighted average remaining contractual term (Year) | 7 years 321 days |
Outstanding, aggregate intrinsic value | $ | $ 317 |
Exercisable (in shares) | shares | 181,640 |
Exercisable, weighted average exercise price per share (in dollars per share) | $ / shares | $ 3.72 |
Exercisable, weighted average remaining contractual term (Year) | 7 years 160 days |
Exercisable, aggregate intrinsic value | $ | $ 176 |
Note 1 - Summary of Significa_5
Note 1 - Summary of Significant Accounting Policies - Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | |
Raw Materials | $ 15,314 | $ 15,245 | |
Work in Process | 607 | 479 | |
Finished Goods | 459 | 41 | |
Reserves | (1,884) | (1,486) | |
Total | $ 14,496 | $ 14,279 | [1] |
[1] | The balance sheet at December 31, 2019 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, 2020 | Dec. 31, 2019 | ||
Gross carrying amount | $ 2,283 | $ 2,272 | |
Accumulated amortization | 1,073 | 929 | |
Net book value | $ 1,210 | $ 1,343 | [1] |
Customer Relationships [Member] | |||
Remaining lives (Year) | 9 years | 9 years | |
Gross carrying amount | $ 1,302 | $ 1,302 | |
Accumulated amortization | 759 | 651 | |
Net book value | $ 543 | $ 651 | |
Intellectual Property [Member] | |||
Remaining lives (Year) | 3 years | 3 years | |
Gross carrying amount | $ 100 | $ 100 | |
Accumulated amortization | 100 | 95 | |
Net book value | $ 5 | ||
Trade Names [Member] | |||
Remaining lives (Year) | 20 years | 20 years | |
Gross carrying amount | $ 814 | $ 814 | |
Accumulated amortization | 214 | 183 | |
Net book value | $ 600 | $ 631 | |
Patents [Member] | |||
Remaining lives (Year) | 7 years | 7 years | |
Gross carrying amount | $ 67 | $ 56 | |
Accumulated amortization | |||
Net book value | $ 67 | $ 56 | |
[1] | The balance sheet at December 31, 2019 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) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | [1] |
Total | $ 1,210 | $ 1,343 | |
Finite-lived Intangible Assets, Excluding Projects in Process [Member] | |||
Remainder of 2020 | 46 | ||
2021 | 186 | ||
2022 | 185 | ||
2023 | 185 | ||
2024 | 113 | ||
Thereafter | 428 | ||
Total | $ 1,143 | ||
[1] | The balance sheet at December 31, 2019 has been derived from the audited financial statements at that date |
Note 2 - Concentration of Cre_2
Note 2 - Concentration of Credit Risk and Major Customers (Details Textual) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2020USD ($) | Sep. 30, 2019 | Jun. 30, 2019 | Sep. 30, 2020USD ($) | Sep. 30, 2019 | Dec. 31, 2019 | |
Excess Cash Balances, Number of High Credit Quality Financial Institutions | 2 | |||||
Cash, Ending Balance | $ 1,694 | $ 1,694 | ||||
Concentration Risk, Number of Divisions | 2 | 2 | ||||
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | Division One of Largest Customer [Member] | ||||||
Concentration Risk, Percentage | 20.00% | 19.00% | 21.00% | 21.00% | ||
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | Division Two of Largest Customer [Member] | ||||||
Concentration Risk, Percentage | 3.00% | 3.00% | 3.00% | 3.00% | ||
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | Largest Customer [Member] | ||||||
Concentration Risk, Percentage | 23.00% | 22.00% | 24.00% | 24.00% | ||
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Largest Customer [Member] | ||||||
Concentration Risk, Percentage | 37.00% | 36.00% | ||||
Geographic Concentration Risk [Member] | Revenue Benchmark [Member] | Largest Customer [Member] | ||||||
Concentration Risk, Percentage | 9.00% | 9.00% | 10.00% | 15.00% | ||
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 | $ 244 | $ 244 |
Note 3 - Revenue 1 (Details Tex
Note 3 - Revenue 1 (Details Textual) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2020 | Sep. 30, 2020 | |
Percentage of Revenue Transferred to Customers | 80.00% | 84.00% |
Revenue Remaining Performance Obligation, Customers Upon Shipment With Payment Terms (Day) | 120 days |
Note 3 - Revenue 2 (Details Tex
Note 3 - Revenue 2 (Details Textual) | Sep. 30, 2020 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period (Day) | 180 days |
Note 3 - Revenue - Contract Ass
Note 3 - Revenue - Contract Assets (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Outstanding at January 1, 2020 | $ 7,659 |
Transferred to receivables from contract assets recognized | (6,104) |
Product transferred over time | 5,779 |
Outstanding at September 30, 2020 | $ 7,334 |
Note 3 - Revenue - Disaggregati
Note 3 - Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Net sales | $ 26,362 | $ 30,058 | $ 80,263 | $ 85,515 |
Medical [Member] | ||||
Net sales | 14,218 | 17,043 | 42,753 | 46,006 |
Industrial [Member] | ||||
Net sales | 5,938 | 8,623 | 22,001 | 26,290 |
Aerospace and Defense [Member] | ||||
Net sales | 6,206 | 4,392 | 15,509 | 13,219 |
Transferred over Time [Member] | ||||
Net sales | 21,012 | 25,656 | 67,429 | 77,122 |
Transferred over Time [Member] | Medical [Member] | ||||
Net sales | 10,960 | 14,399 | 35,835 | 42,039 |
Transferred over Time [Member] | Industrial [Member] | ||||
Net sales | 4,527 | 7,279 | 17,434 | 22,847 |
Transferred over Time [Member] | Aerospace and Defense [Member] | ||||
Net sales | 5,525 | 3,978 | 14,160 | 12,236 |
Transferred at Point in Time [Member] | ||||
Net sales | 2,660 | 2,616 | 8,204 | 4,586 |
Transferred at Point in Time [Member] | Medical [Member] | ||||
Net sales | 1,853 | 1,661 | 4,454 | 1,914 |
Transferred at Point in Time [Member] | Industrial [Member] | ||||
Net sales | 791 | 822 | 3,354 | 2,297 |
Transferred at Point in Time [Member] | Aerospace and Defense [Member] | ||||
Net sales | 16 | 133 | 396 | 375 |
Noncash Consideration [Member] | ||||
Net sales | 2,690 | 1,786 | 4,630 | 3,807 |
Noncash Consideration [Member] | Medical [Member] | ||||
Net sales | 1,405 | 983 | 2,464 | 2,053 |
Noncash Consideration [Member] | Industrial [Member] | ||||
Net sales | 620 | 522 | 1,213 | 1,146 |
Noncash Consideration [Member] | Aerospace and Defense [Member] | ||||
Net sales | $ 665 | $ 281 | $ 953 | $ 608 |
Note 4 - Financing Arrangemen_3
Note 4 - Financing Arrangements (Details Textual) $ in Thousands | Apr. 15, 2020USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($) | Jun. 15, 2017USD ($) |
Proceeds from Issuance of Long-term Debt, Total | $ 6,077 | ||||
Paycheck Protection Program CARES Act [Member] | |||||
Proceeds from Issuance of Long-term Debt, Total | $ 6,077 | ||||
Bank of America [Member] | Credit Agreement [Member] | |||||
Long-term Line of Credit, Total | 2,546 | $ 10,088 | |||
Line of Credit Facility, Remaining Borrowing Capacity | $ 8,640 | ||||
Line of Credit, Minimum Fixed Charge Coverage Ratio During the Period | 1 | ||||
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 | 3.70% | 5.40% |
Note 4 - Financing Arrangemen_4
Note 4 - Financing Arrangements - Long-term Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | |
Long-term debt gross | $ 7,265 | $ 3,755 | |
Debt issuance Costs | (91) | (132) | |
Total long-term debt | 7,174 | 3,623 | |
Current maturities of long-term debt | (444) | (444) | [1] |
Long-term debt - net of current maturities | 6,730 | 3,179 | |
Paycheck Protection Program CARES Act [Member] | |||
Long-term debt gross | 6,077 | ||
Real Estate Term Note [Member] | |||
Long-term debt gross | $ 1,188 | $ 3,755 | |
[1] | The balance sheet at December 31, 2019 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) - Real Estate Term Note [Member] - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Interest rate | 3.00% | 4.10% |
Monthly payments | $ 41 | $ 41 |
London Interbank Offered Rate (LIBOR) [Member] | ||
Variable rate basis | 2.25% | 2.25% |
Note 5 - Leases (Details Textua
Note 5 - Leases (Details Textual) | Sep. 30, 2020 |
Minimum [Member] | |
Lessee, Operating Lease, Renewal Term (Year) | 1 year |
Maximum [Member] | |
Lessee, Operating Lease, Renewal Term (Year) | 5 years |
Note 5 - Leases - Supplemental
Note 5 - Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | [1] |
Operating lease assets | $ 8,924 | $ 4,827 | |
Finance lease assets | 2,493 | ||
Total leased assets | 11,417 | ||
Current operating lease liabilities | 614 | 858 | |
Current finance lease liabilities | 652 | 557 | |
Long-term operating lease liabilities | 8,832 | 4,366 | |
Long term finance lease liabilities | 1,320 | $ 1,451 | |
Total lease liabilities | $ 11,418 | ||
[1] | The balance sheet at December 31, 2019 has been derived from the audited financial statements at that date |
Note 5 - Leases - Lease Cost (D
Note 5 - Leases - Lease Cost (Details) $ in Thousands | 3 Months Ended |
Sep. 30, 2020USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities | $ 686 |
Right-of-use assets obtained in exchange for lease obligations | $ 4,685 |
Operating leases (Year) | 11 years 36 days |
Finance leases (Year) | 3 years 109 days |
Operating leases | 7.40% |
Finance leases | 5.20% |
Note 5 - Leases - Maturity of L
Note 5 - Leases - Maturity of Lease Liabilities (Details) $ in Thousands | Sep. 30, 2020USD ($) |
Operating leases, Remaining 2020 | $ 351 |
Finance leases, Remaining 2020 | 207 |
Total, Remaining 2020 | 558 |
Operating leases, 2021 | 1,264 |
Finance leases, 2021 | 738 |
Total, 2021 | 2,002 |
Operating leases, 2022 | 1,279 |
Finance leases, 2022 | 575 |
Total, 2022 | 1,854 |
Operating leases, 2023 | 1,302 |
Finance leases, 2023 | 333 |
Total, 2023 | 1,635 |
Operating leases, 2024 | 1,374 |
Finance leases, 2024 | 277 |
Total, 2024 | 1,651 |
Operating leases, Thereafter | 9,489 |
Finance leases, Thereafter | 20 |
Total, Thereafter | 9,509 |
Operating leases, total lease payments | 15,059 |
Finance leases, total lease payments | 2,150 |
Total, total lease payments | 17,209 |
Operating leases, less: Interest | (5,613) |
Finance leases, less: Interest | (178) |
Total, less: Interest | (5,791) |
Operating leases, present value of lease liabilities | 9,446 |
Finance leases, present value of lease liabilities | 1,972 |
Total, present value of lease liabilities | $ 11,418 |
Note 6 - Income Taxes (Details
Note 6 - Income Taxes (Details Textual) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Effective Income Tax Rate Reconciliation, Percent, Total | 24.00% | 10.00% | 24.00% | (9.00%) |
Note 7 - Related Party Transa_2
Note 7 - Related Party Transactions (Details Textual) - Subsidiary of Common Parent [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Nature of Common Ownership or Management Control Relationships | 90% | 90% | ||
Related Party Transaction, Expenses from Transactions with Related Party | $ 0 | $ 35 | $ 28 | $ 87 |