Qualstar (QBAK) 10-Q 11 Aug 16 2016 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Aug. 02, 2016
Document Information [Line Items]
Entity Registrant Name	QUALSTAR CORP
Entity Central Index Key	758,938
Trading Symbol	qbak
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Entity Common Stock, Shares Outstanding (in shares)		2,042,020
Document Type	10-Q
Document Period End Date	Jun. 30, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q2
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 3,504	$ 3,963
Accounts receivables net	1,668	1,630
Inventories, net	1,877	2,444
Prepaid expenses and other current assets	132	219
Total current assets	7,181	8,256
Non-current assets:
Property and equipment, net	365	446
Other assets	56	25
Total assets	7,602	8,727
Current liabilities:
Accounts payable	646	756
Accrued payroll and related liabilities	222	332
Deferred service revenue, short term	866	994
Other accrued liabilities	409	467
Total current liabilities	2,143	2,549
Long term liabilities:
Other long term liabilities	63	27
Deferred service revenue	97	104
Total long term liabilities	160	131
Total liabilities	2,303	2,680
Shareholders’ equity:
Preferred stock, no par value; 5,000 shares authorized; no shares issued
Common stock, no par value; 50,000 shares authorized, 2,042 shares issued and outstanding as of June 30, 2016 and December 31, 2015	19,063	19,061
Accumulated deficit	(13,764)	(13,014)
Total shareholders’ equity	5,299	6,047
Total liabilities and shareholders’ equity	$ 7,602	$ 8,727

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares	Jun. 30, 2016	Dec. 31, 2015
Preferred stock, par value (in dollars per share)	$ 0	$ 0
Preferred stock, shares authorized (in shares)	5,000,000	5,000,000
Preferred stock, shares issued (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0	$ 0
Common stock, shares authorized (in shares)	50,000,000	50,000,000
Common stock, shares issued (in shares)	2,042,000	2,042,000
Common stock, shares outstanding (in shares)	2,042,000	2,042,000

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Net revenues	$ 2,370,000	$ 3,249,000	$ 4,520,000	$ 6,054,000
Cost of goods sold	1,596,000	2,120,000	3,097,000	4,008,000
Gross profit	774,000	1,129,000	1,423,000	2,046,000
Operating expenses:
Engineering	223,000	352,000	618,000	666,000
Sales and marketing	357,000	529,000	657,000	981,000
General and administrative	519,000	502,000	888,000	1,110,000
Total operating expenses	1,099,000	1,383,000	2,163,000	2,757,000
Loss from operations	(325,000)	(254,000)	(740,000)	(711,000)
Other income	(11,000)		(10,000)	(30,000)
Loss before income taxes	(336,000)	(254,000)	(750,000)	(741,000)
Provision for income taxes	0	0
Net loss	$ (336,000)	$ (254,000)	$ (750,000)	$ (741,000)
Loss per common share:
Basic and diluted (in dollars per share)	$ (0.16)	$ (0.12)	$ (0.37)	$ (0.36)
Weighted average common shares outstanding:
Basic and diluted (in shares)	2,042	2,042	2,042	2,042

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Cash flows from operating activities:
Net loss	$ (750)	$ (741)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	93	116
Loss on disposal of assets	15	52
Provision for inventory obsolescence	339	440
Provision for (recovery of) bad debts and returns	(23)	(58)
Share based compensation	2	40
Loss on sale of marketable securities		3
Changes in operating assets and liabilities:
Accounts receivable	(15)	362
Inventories	228	(319)
Prepaid expenses and other current assets	56	213
Accounts payable	(110)	(349)
Accrued payroll and related liabilities	(110)	48
Deferred service revenue	(135)	(156)
Other accrued liabilities	(22)	(116)
Total adjustments	318	276
Net cash used in operating activities	(432)	(465)
Cash flows from investing activities:
Proceeds from sale of assets		62
Purchases of equipment	(27)	(143)
Net cash used in investing activities	(27)	(81)
Net decrease in cash and cash equivalents	(459)	(546)
Cash and cash equivalents at beginning of period	3,963	5,242
Cash and cash equivalents at end of period	3,504	4,696
Supplemental cash flow disclosures:
Income taxes paid	$ 8

Note 1 - Summary of Significant

Note 1 - Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2016
Notes to Financial Statements
Significant Accounting Policies [Text Block]	NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation In the opinion of management, the accompanying unaudited condensed consolidated financial statements, including balance sheets and related interim statements of operations and cash flows, include all adjustments, consisting primarily of normal recurring items, which are necessary for their fair presentation in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Preparing condensed consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses. Examples include estimates of loss contingencies, product life cycles and inventory obsolescence, bad debts, sales returns, share-based compensation, forfeiture rates, the potential outcome of future tax consequences of events that have been recognized in our financial statements or tax returns, and determining when investment impairments are other-than-temporary. Actual results and outcomes may differ from management’s estimates and assumptions. The condensed consolidated financial statements include our accounts and the accounts of our wholly-owned subsidiary in Singapore. All significant intercompany accounts and transactions have been eliminated in consolidation. Interim results are not necessarily indicative of results for a full year. The information included in this Form 10-Q should be read in conjunction with information included in the Qualstar Corporation Annual Report on Form 10-KT for the transition year ended December 31, 2015, filed with the U.S. Securities and Exchange Commission (“SEC”) on March 30, 2016. Revenue Recognition We recognize revenue in accordance with Accounting Standards Codification (“ASC”) 605, “Revenue Recognition,” when there is persuasive evidence that an arrangement exists, title and risk of loss have passed, delivery has occurred or the services have been rendered, the sales price is fixed or determinable and collection of the related receivable is reasonably assured. Title and risk of loss generally pass to our customers upon shipment. In limited circumstances where either title or risk of loss pass upon destination or acceptance or when collection is not reasonably assured, we defer revenue recognition until such events occur. Service contracts are sold by Qualstar to customers for a period of time to provide product support after the warranty expires. The service contracts allow customers to call Qualstar for technical support, replace defective parts and to have onsite service provided by Qualstar’s third party contract service provider. The Company records revenues for contract services at the amount of the service contract, but such amount is deferred at the beginning of the service term and amortized ratably over the life of the contract. Deferred service revenue is shown separately in the condensed consolidated balance sheets as current and long term. At June 30, 2016, we had deferred service revenue of approximately $963,000. At December 31, 2015, we had deferred service revenue of approximately $1,098,000. Fair Value of Financial Instruments We measure fair value on all financial assets and liabilities and nonfinancial assets and liabilities that are recognized or disclosed at fair value in the condensed consolidated financial statements on a recurring basis (at least quarterly). See “Note 5 – Fair Value Measurements.” Allowance for Doubtful Accounts We estimate our allowance for doubtful accounts based on an assessment of the collectability of specific accounts and the overall condition of accounts receivable. In evaluating the adequacy of the allowance for doubtful accounts, specific trade receivables, historical bad debts, customer credits, customer credit-worthiness and changes in customers’ payment terms and patterns are analyzed. If the financial condition of our customers were to deteriorate, resulting in an impairment of their ability to make additional payments, then additional allowances may be needed. Likewise, if it is determined that more of our receivables may be realized in the future than previously estimated, we would adjust the allowance to increase income in the period of this determination. Inventory Valuation We record inventories at the lower of cost (first-in, first-out basis) or market value. We assess the value of our inventories periodically based upon numerous factors including expected product or material demand, current market conditions, technological obsolescence, current cost and net realizable value. If necessary, we write down our inventory for estimated obsolescence, potential shrinkage, or unmarketable inventory equal to the difference between the cost of inventory and the estimated market value based upon assumptions about future demand and market conditions. If technology changes more rapidly than expected, or market conditions become less favorable than those projected by management, additional inventory write-downs may be required. Warranty Obligations We provide for the estimated cost of product warranties at the time the related revenue is recognized. We engage in extensive product quality programs and processes, including active monitoring and evaluation of product failure rates, material usage and estimation of service delivery costs incurred in correcting a product failure. However, should actual product failure rates, material usage, or service delivery costs differ from our estimates, then revisions to the estimated warranty liability would be required. Historically, our warranty costs have not been significant. Legal and Other Contingencies The outcomes of legal proceedings and claims brought against us are subject to significant uncertainty. An estimated loss from a loss contingency such as a legal proceeding or claim is accrued by a charge to income if it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. When legal costs that the entity expects to incur in defending itself in connection with a loss contingency accrual are expected to be material, the loss should factor in all costs and, if the legal costs are reasonably estimable, they should be accrued in accordance with ASC 450, regardless of whether a liability can be estimated for the contingency itself. Disclosure of a contingency is required if there is at least a reasonable possibility that a loss has been incurred. Changes in these factors could materially impact our condensed consolidated financial statements. Reclassifications Certain prior period amounts have been reclassified to conform to the current period presentation, with no changes to previously reported stockholders equity or net loss. Share-Based Compensation Share-based compensation is accounted for in accordance with ASC 718, “Compensation – Stock Compensation.” The Black-Scholes option-pricing model is used to determine fair value of the award at the date of grant and recognize compensation expense over the vesting period. The inputs for the model require the use of judgment, estimates and assumptions regarding the expected volatility of the stock, the expected term the average employee will hold the option prior to the date of exercise, expected future dividends, and the amount of share-based awards that are expected to be forfeited. Changes in these inputs and assumptions could occur and actual results could differ from these estimates, and our results of operations could be impacted. Accounting for Income Taxes We estimate our tax liabilities based on current tax laws in the statutory jurisdictions in which we operate in accordance with ASC 740, “Income Taxes.” These estimates include judgments about deferred tax assets and liabilities resulting from temporary differences between assets and liabilities recognized for financial reporting purposes and such amounts recognized for tax purposes, as well as about the realization of deferred tax assets. We may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained upon examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. ASC 740 also provides guidance on derecognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, and income tax disclosures. We maintain a valuation allowance to reduce our deferred tax assets due to the uncertainty surrounding the timing of realizing the benefits of net deferred tax assets in future years. We have considered future taxable income and ongoing prudent and feasible tax planning strategies in assessing the need for such a valuation allowance. In the event we were to determine that we would be able to realize all or part of our net deferred tax asset in the future, the valuation allowance would be decreased accordingly. We may periodically undergo examinations by the federal and state regulatory authorities and the Internal Revenue Service. We may be assessed additional taxes and/or penalties contingent on the outcome of these examinations. Our previous examinations have not resulted in any unfavorable or significant assessments.

Note 2 - Recent Accounting Pron

Note 2 - Recent Accounting Pronouncements	6 Months Ended
	Jun. 30, 2016
Notes to Financial Statements
New Accounting Pronouncements and Changes in Accounting Principles [Text Block]	NOTE 2 – RECENT ACCOUNTING PRONOUNCEMENTS Recently adopted accounting guidance In January 2015, the FASB issued ASU 2015-01 to eliminate the concept of extraordinary and unusual items, simplifying the income statement presentation. The standard was effective for fiscal and interim periods within those fiscal years, beginning after December 15, 2015 . Adoption of this new guidance did not impact our condensed consolidated financial statements. In February 2015, the FASB issued ASU 2015-02 to change the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. The standard was effective for fiscal and interim periods within those fiscal years, beginning after December 15, 2015. Adoption of this new guidance did not impact our condensed consolidated financial statements. In April 2015, the FASB issued ASU 2015-03 to reduce complexity in the balance sheet presentation of debt issuance costs, discounts and premiums. The standard was effective for fiscal and interim periods within those fiscal years, beginning after December 15, 2015. Adoption of this new guidance did not impact our condensed consolidated financial statements . In June 2015, the FASB issued ASU 2015-10 to cover a wide range of topics in the codification and are generally categorized as follows: amendments related to differences between original guidance and the codification; guidance clarification and reference corrections; and minor improvements. The standard was effective for fiscal and interim periods within those fiscal years, beginning after December 15, 2015 . Adoption of this new guidance did not impact our condensed consolidated financial statements . Recent accounting guidance not yet adopted In May 2014, the FASB issued ASU 2014-09 to clarify the principles for recognizing revenue and to develop a common revenue standard for U.S. GAAP and IFRS that will remove inconsistencies and weaknesses in revenue requirements, provide a more robust framework for addressing revenue issues, improve comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets, provide more useful information to users of financial statements through improved disclosure requirements, and simplify the preparation of financial statements by reducing the number of requirements to which an entity must refer. In August 2015, the FASB issued ASU 2015-14 as an update of ASU 2014-09. The purpose is to allow more time to implement the guidance in Update 2014-09. This Update defers the effective date of Update 2014-09 to annual reporting periods beginning after December 15, 2017. The Company is still evaluating the impact on the condensed consolidated financial statements. In June 2014, the FASB issued ASU 2014-12 to resolve the diverse accounting treatment of share-based payment awards that require specific performance targets to be achieved in order for employees to become eligible to vest in the awards. The new guidance will be effective for us beginning after December 15, 2017, and is not expected to impact our condensed consolidated financial statements. In August 2014, the FASB issued ASU 2014-15. This standard sets forth management’s responsibility to evaluate, each reporting period, whether there is substantial doubt about our ability to continue as a going concern, and if so, to provide related footnote disclosures. The standard is effective for annual reporting periods ending after December 15, 2016 and interim periods within annual periods beginning after December 15, 2016. We are currently evaluating this new standard and after adoption, we will incorporate this guidance in our assessment of going concern. This new standard is not expected to impact our condensed consolidated financial statements. In July 2015, the FASB issued ASU 2015-11 to simplify the measurement of inventory. The objective is to identify, evaluate, and improve areas of GAAP for which cost and complexity can be reduced while maintaining or improving the usefulness of the information provided to users of financial statements. The standard is effective for fiscal years beginning after December 15, 2016 , and is not expected to impact our condensed consolidated financial statements . In February 2016, the FASB issued ASU 2016-02 to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. For related party leases, the basis will be the legally enforceable terms and conditions of the arrangement. This standard is effective for fiscal years beginning after December 15, 2018. The Company is evaluating the impact it may have on its condensed consolidated financial statements.

Note 3 - Significant Customers,

Note 3 - Significant Customers, Concentration of Credit Risk, and Geographic Information	6 Months Ended
	Jun. 30, 2016
Notes to Financial Statements
Concentration Risk Disclosure [Text Block]	NOTE 3 – SIGNIFICANT CUSTOMERS, CONCENTRATION OF CREDIT RISK, AND GEOGRAPHIC INFORMATION We are exposed to interest rate risks. Our investment income is sensitive to changes in the general level of U.S. interest rates. We have no outstanding debt nor do we utilize auction rate securities or derivative financial instruments in our investment portfolio. Cash and other investments may be in excess of FDIC insurance limits. Our financial results could be affected by changes in foreign currency exchange rates or weak economic conditions in foreign markets. As all sales are currently made in U.S. dollars, a strengthening of the dollar could make our products less competitive in foreign markets. Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 (unaudited) (unaudited) (unaudited) (unaudited) Revenue – geographic activity (in thousands): $ % $ % $ % $ % North America $ 1,207 50.9 % $ 1,369 42.1 % $ 2,458 54.4 % $ 2,595 42.9 % Europe 473 20.0 % 622 19.2 % 961 21.3 % 1,106 18.3 % Asia Pacific 636 26.8 % 1,082 33.3 % 1,038 23.0 % 2,018 33.3 % Other 54 2.3 % 176 5.4 % 63 1.3 % 335 5.5 % $ 2,370 100.0 % $ 3,249 100.0 % $ 4,520 100.0 % $ 6,054 100.0 % Two customers accounted for 10.4% and 10.0% of the Company’s net revenue for the three month period ended June 30, 2016. These customer accounts receivable balances totaled 21.3% and 7.5%, respectively, of net accounts receivable as of June 30, 2016. One customer accounted for 10.3% of the Company’s net revenue for the three month period ended June 30, 2015. The customer’s accounts receivable balances totaled 10.0% of net accounts receivable as of June 30, 2015. One customer accounted for 12.4% of the Company’s net revenue for the six month period ended June 30, 2016. The customer’s accounts receivable balance totaled 7.5%, of net accounts receivable as of June 30, 2016. Two customers accounted for 11.8% and 11.5% of the Company’s net revenue for the six month period ended June 30, 2015. The customer’s accounts receivable balances totaled 10.0% and 16.7%, respectively, of net accounts receivable as of June 30, 2015.

Note 4 - Net Loss Per Share

Note 4 - Net Loss Per Share	6 Months Ended
	Jun. 30, 2016
Notes to Financial Statements
Earnings Per Share [Text Block]	NOTE 4 – NET LOSS PER SHARE Basic net loss per share has been computed by dividing net loss by the weighted average number of common shares outstanding. Diluted net loss per share has been computed by dividing net loss by the weighted average common shares outstanding plus dilutive securities or other contracts to issue common stock as if these securities were exercised or converted to common stock. The following table sets forth the computation of basic and diluted net loss per share for the periods indicated, in thousands, except per share amounts. All share and per share amounts in the table below have been adjusted to reflect the 1-for-6 reverse split of our issued and outstanding common stock on June 14, 2016, retroactively: Three Months Ended June 30, Six Months Ended December 31, 2016 2015 2016 2015 In thousands (except per share amounts): Net loss (a) $ (336 ) $ (254 ) $ (750 ) $ (741 ) Weighted average outstanding shares of common stock (b) 2,042 2,042 2,042 2,042 Dilutive potential common shares from employee stock options — — — — Common stock and common stock equivalents (c) 2,042 2,042 2,042 2,042 Loss per share: Basic net loss per share (a)/(b) $ (0.16 ) $ (0.12 ) $ (0.37 ) $ (0.36 ) Diluted net loss per share (a)/(c) $ (0.16 ) $ (0.12 ) $ (0.37 ) $ (0.36 )

Note 5 - Fair Value Measurement

Note 5 - Fair Value Measurements	6 Months Ended
	Jun. 30, 2016
Notes to Financial Statements
Fair Value Disclosures [Text Block]	NOTE 5 – FAIR VALUE MEASUREMENTS Our financial assets and liabilities are measured and recorded at fair value on a recurring basis. Our money market funds are included in cash and cash equivalents in our condensed consolidated balance sheets and are valued using quoted market prices at the respective balance sheet dates (in thousands): Level 1: June 30, 2016 December 31 , 201 5 (unaudited) Cash $ 666 $ 928 Money Market Funds 2,838 3,035 Total cash and cash equivalents $ 3,504 $ 3,963

Note 6 - Balance Sheet Details

Note 6 - Balance Sheet Details	6 Months Ended
	Jun. 30, 2016
Notes to Financial Statements
Supplemental Balance Sheet Disclosures [Text Block]	NOTE 6 - BALANCE SHEET DETAILS The following tables provide details of selected balance sheet accounts (in thousands): Inventories Inventories are stated at the lower of cost (first-in, first-out basis) or market. Inventories are comprised as follows (in thousands): June 30, 2016 December 31, 2015 (unaudited) Raw materials $ 336 $ 263 Finished goods 1,541 2,181 Net inventory balance $ 1,877 $ 2,444 Other Accrued Liabilities The components of other liabilities are as follows (in thousands): June 30, 2016 December 31 , 201 5 (unaudited) Accrued commissions $ 29 $ 37 Accrued audit fees - 149 Deferred rent 40 42 Accrued warranty 224 187 Accrued legal 75 - Other accrued liabilities 41 52 Total other accrued liabilities $ 409 $ 467

Note 7 - Contingencies

Note 7 - Contingencies	6 Months Ended
	Jun. 30, 2016
Notes to Financial Statements
Contingencies Disclosure [Text Block]	NOTE 7 –CONTINGENCIES Accrued Warranty We provide for the estimated costs of hardware warranties at the time the related revenue is recognized. We estimate the costs based on historical and projected product failure rates, historical and projected repair costs, and knowledge of specific product failures (if any). The specific hardware warranty terms and conditions for tape libraries generally include parts and labor over a three-year period. The warranty for power supplies is generally three years. We regularly re-evaluate our estimates to assess the adequacy of the recorded warranty liabilities and adjust the amounts as necessary. Activity in the liability for product warranty, which is included in other accrued liabilities in the condensed consolidated balance sheets for the periods presented, is as follows (in thousands): Six Months Ended June 30, 2016 Six Months Ended December 31, 2015 (unaudited) Beginning balance $ 187 $ 154 Cost of warranty claims (89 ) (113 ) Accruals for product warranties 126 146 Ending balance $ 224 $ 187

Note 8 - Commitments

Note 8 - Commitments	6 Months Ended
	Jun. 30, 2016
Notes to Financial Statements
Commitments Disclosure [Text Block]	NOTE 8 –CO MMITMENTS Lease Agreements Qualstar’s lease agreement for its 15,160 square foot facility located in Simi Valley, California, expires on February 28, 2018. Rent on this facility is $10,000 per month with a step-up of 3% annually. On July 1, 2015, Qualstar Corporation entered into a one year sublease agreement with Interlink Electronics, Inc. (Interlink). The sublease agreement is for 608 square feet of space in the Qualstar building located at 130 West Cochran Street, Unit C; Simi Valley, 93065. Qualstar will receive rent of $1,000 per month which is equal to the base rent per square foot in the master lease, plus additional rent for common area services, utilities and other shared expenses. The space will be used for engineering and light manufacturing. As described in Note 14, Interlink is a related party. Qualstar also leases approximately 5,400 square feet of office space in Westlake Village, California. Our lease on this facility expires on January 31, 2020. Rent on this facility is $10,000 per month, with a step-up of 3% annually. On March 21, 2016, we signed a sublease agreement for the Westlake Village facility. The tenant will pay Qualstar $11,000 per month with a step-up of 3% annually. Effective April 1, 2016, a two year lease was signed for 1,359 square feet for $2,200 per month in Singapore , which expires on June 30, 2018. The Company provides for rent expense on a straight-line basis over the lease terms. Future minimum lease payments under these leases are as follows, in thousands, (unaudited): Years Ending December 31, Minimum Lease Payment Sublease Revenue Net Minimum Lease Payment 2016 $ 272 $ (91 ) $ 181 2017 288 (139 ) 149 2018 161 (143 ) 18 2019 134 (147 ) (13 ) 2020 11 (12 ) (1 ) Total Commitment $ 866 $ (532 ) $ 334 Net rent expense for the six months ended June 30, 2016 and 2015 was $112,000 and $180,000, respectively.

Note 9 - Stock Incentive Plans

Note 9 - Stock Incentive Plans and Share-based Compensation	6 Months Ended
	Jun. 30, 2016
Notes to Financial Statements
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]	NOTE 9 – STOCK INCENTIVE PLANS AND S HARE- BASED COMPENSATION The Company recorded share-based compensation associated with outstanding stock options during the three and six months ended June 30, 2016 of approximately $1,000 and $2,000, respectively. For the three and six months ended June 30, 2015 the Company recorded share-based compensation associated with outstanding stock options and restricted stock options of $20,000 and $40,000, respectively. No income tax benefit was recognized in the condensed consolidated statements of operations for share-based arrangements in any period presented. At June 30, 2016, there was not any unrecognized compensation cost related to share-based compensation . Effective on June 1, 2016, the Board of Directors approved the employment agreement for Steven N. Bronson, CEO, which cancelled the stock option grant dated October 8, 2014 of 100,000 shares. Stock Options The Company did not grant any stock options during the three months ended June 30, 2016 and 2015. Restricted Stock The fair value of our restricted stock is the intrinsic value as of the grant date. There were no restricted stock awards granted in the three months ended June 30, 2016 and 2015. The unvested restricted stock of 100,000 shares granted to the former President of the Company, on April 1, 2014, were forfeited upon the termination of his employment on December 31, 2015.

Note 10 - Stockholders' Equity

Note 10 - Stockholders' Equity	6 Months Ended
	Jun. 30, 2016
Notes to Financial Statements
Stockholders' Equity Note Disclosure [Text Block]	NOTE 10 - STOCKHOLDERS’ EQUITY On June 14, 2016, upon receiving approval from the majority of the Company’s shareholders at the 2016 Annual Meeting, the Company filed with the Secretary of State of the State of California a Certificate of Amendment of Restated Articles of Incorporation to implement a one-for-six reverse stock split (the “Reverse Split”) of all outstanding shares of common stock, effective as of the close of business on June 14, 2016. Upon the effectiveness of the Reverse Split,each six shares of common stock issued and outstanding immediately prior to the effective time automatically were combined, reclassified and converted into one fully paid and nonassessable share of common stock, subject to the treatment of fractional share interests, determined at the beneficial owner level. Shareholders who otherwise would have been entitled to receive fractional shares as a result of the reverse split instead received a cash payment in lieu thereof equal to the fraction to which such shareholder otherwise would have been entitled multiplied by $2.52, which represents the last sale price of the common stock as reported on The Nasdaq Capital Market (as adjusted to reflect the reverse split) on June 13, 2016, the last trading day preceding the effective date of the reverse split. In addition, the aggregate number of equity-based awards that remain available to be granted under the Company’s equity incentive plans and other benefit plans will be reduced proportionately to reflect the reverse split, and all outstanding options, warrants, notes, debentures and other securities convertible into Common Stock will be adjusted as a result of the reverse split, as required by the terms of these securities. The reverse split decreased the number of outstanding shares of common stock from 12,253,117 to approximately 2,042,020. The Company’s authorized number of shares of common stock remains 50,000,000 and the authorized number of shares of preferred stock of the Company remains 5,000,000.

Note 11 - Legal Proceedings

Note 11 - Legal Proceedings	6 Months Ended
	Jun. 30, 2016
Notes to Financial Statements
Legal Matters and Contingencies [Text Block]	NOTE 1 1 – LEGAL PROCEEDINGS The Company is also subject to a variety of claims and legal proceedings that arise from time to time in the ordinary course of our business. Although management currently believes that resolving claims against us, individually or in the aggregate, will not have a material adverse impact on our condensed consolidated financial statements, these matters are subject to inherent uncertainties and management’s view of these matters may change in the future. We accrue loss contingencies in connection with our commitments and contingencies, including litigation, when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated. As of June 30 , 2016 we had accrued aggregate current liabilities of $89,000 in probable fees and costs related to these legal matters.

Note 12 - Income Taxes

Note 12 - Income Taxes	6 Months Ended
	Jun. 30, 2016
Notes to Financial Statements
Income Tax Disclosure [Text Block]	NOTE 12 – INCOME TAXES We did not record a provision or benefit for income taxes for the three months ended June 30, 2016 and 2015. The Company has recorded a full valuation allowance against its net deferred tax assets based on the Company’s assessment regarding the realizability of these net deferred tax assets in future periods.

Note 13 - Segment Information

Note 13 - Segment Information	6 Months Ended
	Jun. 30, 2016
Notes to Financial Statements
Segment Reporting Disclosure [Text Block]	NOTE 1 3 – SEGMENT INFORMATION In its operation of the business, management reviews certain financial information, including segmented internal profit and loss statements prepared on a basis consistent with U.S. GAAP. Our two segments are Power Supplies and Data Storage. The two segments discussed in this analysis are presented in the way we internally manage and monitor performance for the three months ended June 30, 2016 and 2015. Allocations for internal resources were made for the three months ended June 30, 2016 and 2015. The power supplies segment tracks certain assets separately, and all others are recorded in the storage segment for internal reporting presentations. The types of products and services provided by each segment are summarized below: Power Supplies Storage Segment revenue, loss before taxes and total assets were as follows (in thousands): Three Months Ended June 30 , Six Months Ended June 30 , 2016 2015 2016 2015 Revenue Power Supplies $ 1,255 $ 1,797 $ 2,604 $ 3,379 Storage: Product 653 935 981 1,653 Service 462 517 935 1,022 Total storage $ 1,115 $ 1,452 $ 1,916 $ 2,675 Revenue $ 2,370 $ 3,249 $ 4,520 $ 6,054 Three Months Ended June 30 , Six Months Ended June 30 , 2016 2015 2016 2015 Loss before Taxes Power Supplies $ (333 ) $ (121 ) $ (458 ) $ (309 ) Storage (3 ) (133 ) (292 ) (432 ) Loss before taxes $ (336 ) $ (254 ) $ (750 ) $ (741 ) June 30, 2016 December 31 , 2015 Total Assets (unaudited) Cash and cash equivalents $ 3,504 $ 3,963 Other assets: Power Supplies 1,582 2,092 Storage 2,516 2,672 Total other assets $ 4,098 $ 4,764 Total assets $ 7,602 $ 8,727

Note 14 - Related Party Transac

Note 14 - Related Party Transactions	6 Months Ended
	Jun. 30, 2016
Notes to Financial Statements
Related Party Transactions Disclosure [Text Block]	NOTE 14 – RELATED PARTY TRANSACTIONS Steven N. Bronson is the Company’s CEO and is also the President and CEO and a majority shareholder of Interlink Electronics, Inc. (“Interlink”). Interlink purchases certain administrative and marketing services from Qualstar. The total amount charged to Interlink for the three months ended June 30, 2016 and 2015 was $9,000 and $20,000, respectively . The total amount charged to Interlink for the six months ended June 30, 2016 and 2015 was $20,000 and $30,000, respectively . Interlink owed Qualstar $3,000 and $6,000 at June 30, 2016 and December 31, 2015, respectively. The Company reimburses Interlink for expenses paid on the Company’s behalf. Interlink occasionally pays travel, insurance and other expenses incurred by Qualstar. The Company reimbursed Interlink $5,000 and $1,000 for the three months ended June 30, 2016 and 2015, respectively. The Company reimbursed Interlink $7,000 and $11,000 for the six months ended June 30, 2016 and 2015, respectively. Qualstar owed Interlink $1,000 and $0 at June 30, 2016 and December 31, 2015, respectively. On July 1, 2015, Qualstar Corporation entered into a one year sublease agreement with Interlink Electronics, Inc. The sublease agreement is for 608 square feet of space in the Qualstar building located at 130 West Cochran Street, Unit C; Simi Valley, California 93065. Qualstar will receive rent of $1,000 per month which is equal to the base rent per square foot in the master lease, plus additional rent for common area services, utilities and other shared expenses. The space will be used for engineering and light manufacturing. The Company entered into a license agreement, dated May 1, 2014 (the “License Agreement”) with BKF Capital Group, Inc. (“BKF”). Pursuant to the License Agreement, commencing on May 1, 2014, BKF shall have a license to occupy and use one furnished office, telephone and other services, located at Qualstar’s executive offices . Pursuant to the License Agreement, BKF shall pay to Qualstar a license fee $1,200 per month. For the three months ended June 30, 2015, BFK paid $2,400 to Qualstar as license fees. The License Agreement was no longer effective after the Company’s move to the new facilities in February 2015. Steven N. Bronson, the Company’s President and CEO, is also the Chairman, CEO and majority shareholder of BKF.

Note 15 - Subsequent Events

Note 15 - Subsequent Events	6 Months Ended
	Jun. 30, 2016
Notes to Financial Statements
Subsequent Events [Text Block]	NOTE 1 5 – SUBSEQUENT EVENTS None noted.

Significant Accounting Policies

Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2016
Accounting Policies [Abstract]
Basis of Accounting, Policy [Policy Text Block]	Basis of Presentation In the opinion of management, the accompanying unaudited condensed consolidated financial statements, including balance sheets and related interim statements of operations and cash flows, include all adjustments, consisting primarily of normal recurring items, which are necessary for their fair presentation in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Preparing condensed consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses. Examples include estimates of loss contingencies, product life cycles and inventory obsolescence, bad debts, sales returns, share-based compensation, forfeiture rates, the potential outcome of future tax consequences of events that have been recognized in our financial statements or tax returns, and determining when investment impairments are other-than-temporary. Actual results and outcomes may differ from management’s estimates and assumptions. The condensed consolidated financial statements include our accounts and the accounts of our wholly-owned subsidiary in Singapore. All significant intercompany accounts and transactions have been eliminated in consolidation. Interim results are not necessarily indicative of results for a full year. The information included in this Form 10-Q should be read in conjunction with information included in the Qualstar Corporation Annual Report on Form 10-KT for the transition year ended December 31, 2015, filed with the U.S. Securities and Exchange Commission (“SEC”) on March 30, 2016.
Revenue Recognition, Policy [Policy Text Block]	Revenue Recognition We recognize revenue in accordance with Accounting Standards Codification (“ASC”) 605, “Revenue Recognition,” when there is persuasive evidence that an arrangement exists, title and risk of loss have passed, delivery has occurred or the services have been rendered, the sales price is fixed or determinable and collection of the related receivable is reasonably assured. Title and risk of loss generally pass to our customers upon shipment. In limited circumstances where either title or risk of loss pass upon destination or acceptance or when collection is not reasonably assured, we defer revenue recognition until such events occur. Service contracts are sold by Qualstar to customers for a period of time to provide product support after the warranty expires. The service contracts allow customers to call Qualstar for technical support, replace defective parts and to have onsite service provided by Qualstar’s third party contract service provider. The Company records revenues for contract services at the amount of the service contract, but such amount is deferred at the beginning of the service term and amortized ratably over the life of the contract. Deferred service revenue is shown separately in the condensed consolidated balance sheets as current and long term. At June 30, 2016, we had deferred service revenue of approximately $963,000. At December 31, 2015, we had deferred service revenue of approximately $1,098,000.
Fair Value of Financial Instruments, Policy [Policy Text Block]	Fair Value of Financial Instruments We measure fair value on all financial assets and liabilities and nonfinancial assets and liabilities that are recognized or disclosed at fair value in the condensed consolidated financial statements on a recurring basis (at least quarterly). See “Note 5 – Fair Value Measurements.”
Receivables, Policy [Policy Text Block]	Allowance for Doubtful Accounts We estimate our allowance for doubtful accounts based on an assessment of the collectability of specific accounts and the overall condition of accounts receivable. In evaluating the adequacy of the allowance for doubtful accounts, specific trade receivables, historical bad debts, customer credits, customer credit-worthiness and changes in customers’ payment terms and patterns are analyzed. If the financial condition of our customers were to deteriorate, resulting in an impairment of their ability to make additional payments, then additional allowances may be needed. Likewise, if it is determined that more of our receivables may be realized in the future than previously estimated, we would adjust the allowance to increase income in the period of this determination.
Inventory, Policy [Policy Text Block]	Inventory Valuation We record inventories at the lower of cost (first-in, first-out basis) or market value. We assess the value of our inventories periodically based upon numerous factors including expected product or material demand, current market conditions, technological obsolescence, current cost and net realizable value. If necessary, we write down our inventory for estimated obsolescence, potential shrinkage, or unmarketable inventory equal to the difference between the cost of inventory and the estimated market value based upon assumptions about future demand and market conditions. If technology changes more rapidly than expected, or market conditions become less favorable than those projected by management, additional inventory write-downs may be required.
Standard Product Warranty, Policy [Policy Text Block]	Warranty Obligations We provide for the estimated cost of product warranties at the time the related revenue is recognized. We engage in extensive product quality programs and processes, including active monitoring and evaluation of product failure rates, material usage and estimation of service delivery costs incurred in correcting a product failure. However, should actual product failure rates, material usage, or service delivery costs differ from our estimates, then revisions to the estimated warranty liability would be required. Historically, our warranty costs have not been significant.
Legal Costs, Policy [Policy Text Block]	Legal and Other Contingencies The outcomes of legal proceedings and claims brought against us are subject to significant uncertainty. An estimated loss from a loss contingency such as a legal proceeding or claim is accrued by a charge to income if it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. When legal costs that the entity expects to incur in defending itself in connection with a loss contingency accrual are expected to be material, the loss should factor in all costs and, if the legal costs are reasonably estimable, they should be accrued in accordance with ASC 450, regardless of whether a liability can be estimated for the contingency itself. Disclosure of a contingency is required if there is at least a reasonable possibility that a loss has been incurred. Changes in these factors could materially impact our condensed consolidated financial statements.
Reclassification, Policy [Policy Text Block]	Reclassifications Certain prior period amounts have been reclassified to conform to the current period presentation, with no changes to previously reported stockholders equity or net loss.
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block]	Share-Based Compensation Share-based compensation is accounted for in accordance with ASC 718, “Compensation – Stock Compensation.” The Black-Scholes option-pricing model is used to determine fair value of the award at the date of grant and recognize compensation expense over the vesting period. The inputs for the model require the use of judgment, estimates and assumptions regarding the expected volatility of the stock, the expected term the average employee will hold the option prior to the date of exercise, expected future dividends, and the amount of share-based awards that are expected to be forfeited. Changes in these inputs and assumptions could occur and actual results could differ from these estimates, and our results of operations could be impacted.
Income Tax, Policy [Policy Text Block]	Accounting for Income Taxes We estimate our tax liabilities based on current tax laws in the statutory jurisdictions in which we operate in accordance with ASC 740, “Income Taxes.” These estimates include judgments about deferred tax assets and liabilities resulting from temporary differences between assets and liabilities recognized for financial reporting purposes and such amounts recognized for tax purposes, as well as about the realization of deferred tax assets. We may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained upon examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. ASC 740 also provides guidance on derecognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, and income tax disclosures. We maintain a valuation allowance to reduce our deferred tax assets due to the uncertainty surrounding the timing of realizing the benefits of net deferred tax assets in future years. We have considered future taxable income and ongoing prudent and feasible tax planning strategies in assessing the need for such a valuation allowance. In the event we were to determine that we would be able to realize all or part of our net deferred tax asset in the future, the valuation allowance would be decreased accordingly. We may periodically undergo examinations by the federal and state regulatory authorities and the Internal Revenue Service. We may be assessed additional taxes and/or penalties contingent on the outcome of these examinations. Our previous examinations have not resulted in any unfavorable or significant assessments.

Note 3 - Significant Customer22

Note 3 - Significant Customers, Concentration of Credit Risk, and Geographic Information (Tables)	6 Months Ended
	Jun. 30, 2016
Notes Tables
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block]	Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 (unaudited) (unaudited) (unaudited) (unaudited) Revenue – geographic activity (in thousands): $ % $ % $ % $ % North America $ 1,207 50.9 % $ 1,369 42.1 % $ 2,458 54.4 % $ 2,595 42.9 % Europe 473 20.0 % 622 19.2 % 961 21.3 % 1,106 18.3 % Asia Pacific 636 26.8 % 1,082 33.3 % 1,038 23.0 % 2,018 33.3 % Other 54 2.3 % 176 5.4 % 63 1.3 % 335 5.5 % $ 2,370 100.0 % $ 3,249 100.0 % $ 4,520 100.0 % $ 6,054 100.0 %

Note 4 - Net Loss Per Share (Ta

Note 4 - Net Loss Per Share (Tables)	6 Months Ended
	Jun. 30, 2016
Notes Tables
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	Three Months Ended June 30, Six Months Ended December 31, 2016 2015 2016 2015 In thousands (except per share amounts): Net loss (a) $ (336 ) $ (254 ) $ (750 ) $ (741 ) Weighted average outstanding shares of common stock (b) 2,042 2,042 2,042 2,042 Dilutive potential common shares from employee stock options — — — — Common stock and common stock equivalents (c) 2,042 2,042 2,042 2,042 Loss per share: Basic net loss per share (a)/(b) $ (0.16 ) $ (0.12 ) $ (0.37 ) $ (0.36 ) Diluted net loss per share (a)/(c) $ (0.16 ) $ (0.12 ) $ (0.37 ) $ (0.36 )

Note 5 - Fair Value Measureme24

Note 5 - Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2016
Notes Tables
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]	Level 1: June 30, 2016 December 31 , 201 5 (unaudited) Cash $ 666 $ 928 Money Market Funds 2,838 3,035 Total cash and cash equivalents $ 3,504 $ 3,963

Note 6 - Balance Sheet Details

Note 6 - Balance Sheet Details (Tables)	6 Months Ended
	Jun. 30, 2016
Notes Tables
Schedule of Inventory, Current [Table Text Block]	June 30, 2016 December 31, 2015 (unaudited) Raw materials $ 336 $ 263 Finished goods 1,541 2,181 Net inventory balance $ 1,877 $ 2,444
Schedule of Other Accrued Liabilities [Table Text Block]	June 30, 2016 December 31 , 201 5 (unaudited) Accrued commissions $ 29 $ 37 Accrued audit fees - 149 Deferred rent 40 42 Accrued warranty 224 187 Accrued legal 75 - Other accrued liabilities 41 52 Total other accrued liabilities $ 409 $ 467

Note 7 - Contingencies (Tables)

Note 7 - Contingencies (Tables)	6 Months Ended
	Jun. 30, 2016
Notes Tables
Schedule of Product Warranty Liability [Table Text Block]	Six Months Ended June 30, 2016 Six Months Ended December 31, 2015 (unaudited) Beginning balance $ 187 $ 154 Cost of warranty claims (89 ) (113 ) Accruals for product warranties 126 146 Ending balance $ 224 $ 187

Note 8 - Commitments (Tables)

Note 8 - Commitments (Tables)	6 Months Ended
	Jun. 30, 2016
Notes Tables
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]	Years Ending December 31, Minimum Lease Payment Sublease Revenue Net Minimum Lease Payment 2016 $ 272 $ (91 ) $ 181 2017 288 (139 ) 149 2018 161 (143 ) 18 2019 134 (147 ) (13 ) 2020 11 (12 ) (1 ) Total Commitment $ 866 $ (532 ) $ 334

Note 13 - Segment Information (

Note 13 - Segment Information (Tables)	6 Months Ended
	Jun. 30, 2016
(Loss) Income before Taxes by Segment [Member]
Notes Tables
Reconciliation of Other Significant Reconciling Items from Segments to Consolidated [Table Text Block]	Three Months Ended June 30 , Six Months Ended June 30 , 2016 2015 2016 2015 Loss before Taxes Power Supplies $ (333 ) $ (121 ) $ (458 ) $ (309 ) Storage (3 ) (133 ) (292 ) (432 ) Loss before taxes $ (336 ) $ (254 ) $ (750 ) $ (741 )
Reconciliation of Revenue from Segments to Consolidated [Table Text Block]	Three Months Ended June 30 , Six Months Ended June 30 , 2016 2015 2016 2015 Revenue Power Supplies $ 1,255 $ 1,797 $ 2,604 $ 3,379 Storage: Product 653 935 981 1,653 Service 462 517 935 1,022 Total storage $ 1,115 $ 1,452 $ 1,916 $ 2,675 Revenue $ 2,370 $ 3,249 $ 4,520 $ 6,054
Reconciliation of Assets from Segment to Consolidated [Table Text Block]	June 30, 2016 December 31 , 2015 Total Assets (unaudited) Cash and cash equivalents $ 3,504 $ 3,963 Other assets: Power Supplies 1,582 2,092 Storage 2,516 2,672 Total other assets $ 4,098 $ 4,764 Total assets $ 7,602 $ 8,727

Note 1 - Summary of Significa29

Note 1 - Summary of Significant Accounting Policies (Details Textual) - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Deferred Revenue	$ 963,000	$ 1,098,000

Note 3 - Significant Customer30

Note 3 - Significant Customers, Concentration of Credit Risk, and Geographic Information (Details Textual) - Customer Concentration Risk [Member]	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Sales Revenue, Net [Member] | Customer 1 [Member]
Concentration Risk, Percentage	10.40%	10.30%	12.40%	11.80%
Sales Revenue, Net [Member] | Customer 2 [Member]
Concentration Risk, Percentage	10.00%			11.50%
Sales Revenue, Net [Member]
Number of Major Customers Concentration Risk	2	1	1	2
Accounts Receivable [Member] | Customer 1 [Member]
Concentration Risk, Percentage	21.30%	10.00%	7.50%	10.00%
Accounts Receivable [Member] | Customer 2 [Member]
Concentration Risk, Percentage	7.50%			16.70%

Note 3 - Geographic Activity, R

Note 3 - Geographic Activity, Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
North America [Member] | Geographic Concentration Risk [Member] | Sales Revenue, Services, Net [Member]
Concentration Risk, Percentage	50.90%	42.10%	54.40%	42.90%
North America [Member]
Net revenues	$ 1,207	$ 1,369	$ 2,458	$ 2,595
Europe [Member] | Geographic Concentration Risk [Member] | Sales Revenue, Services, Net [Member]
Concentration Risk, Percentage	20.00%	19.20%	21.30%	18.30%
Europe [Member]
Net revenues	$ 473	$ 622	$ 961	$ 1,106
Asia Pacific [Member] | Geographic Concentration Risk [Member] | Sales Revenue, Services, Net [Member]
Concentration Risk, Percentage	26.80%	33.30%	23.00%	33.30%
Asia Pacific [Member]
Net revenues	$ 636	$ 1,082	$ 1,038	$ 2,018
Other Geographic Areas [Member] | Geographic Concentration Risk [Member] | Sales Revenue, Services, Net [Member]
Concentration Risk, Percentage	2.30%	5.40%	1.30%	5.50%
Other Geographic Areas [Member]
Net revenues	$ 54	$ 176	$ 63	$ 335
Geographic Concentration Risk [Member] | Sales Revenue, Services, Net [Member]
Concentration Risk, Percentage	100.00%	100.00%	100.00%	100.00%
Net revenues	$ 2,370	$ 3,249	$ 4,520	$ 6,054

Note 4 - Net Loss Per Share (De

Note 4 - Net Loss Per Share (Details Textual)	Jun. 14, 2016
Reverse Stock Split [Member]
Stockholders' Equity Note, Stock Split, Conversion Ratio	6

Note 4 - Computation of Basic a

Note 4 - Computation of Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Net loss (a)	$ (336)	$ (254)	$ (750)	$ (741)
Weighted average outstanding shares of common stock (b) (in shares)	2,042	2,042	2,042	2,042
Dilutive potential common shares from employee stock options (in shares)
Common stock and common stock equivalents (c) (in shares)	2,042	2,042	2,042	2,042
Basic net loss per share (a)/(b) (in dollars per share)	$ (0.16)	$ (0.12)	$ (0.37)	$ (0.36)
Diluted net loss per share (a)/(c) (in dollars per share)	$ (0.16)	$ (0.12)	$ (0.37)	$ (0.36)

Note 5 - Financial Assets and L

Note 5 - Financial Assets and Liabilities Measured and Recorded at Fair Value On a Recurring Basis (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015	Jun. 30, 2015	Dec. 31, 2014
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Cash [Member]
Cash and cash equivalents	$ 666	$ 928
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Money Market Funds [Member]
Cash and cash equivalents	2,838	3,035
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Cash and cash equivalents	3,504	3,963
Cash and cash equivalents	$ 3,504	$ 3,963	$ 4,696	$ 5,242

Note 6 - Inventories (Details)

Note 6 - Inventories (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Raw materials	$ 336	$ 263
Finished goods	1,541	2,181
Net inventory balance	$ 1,877	$ 2,444

Note 6 - Other Accrued Liabilit

Note 6 - Other Accrued Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Accrued Audit Fees [Member]
Accrued audit fees		$ 149
Accrued Contingent Legal Fees [Member]
Accrued audit fees	75
Other Accrued Liabilities [Member]
Other accrued liabilities	41	52
Accrued commissions	29	37
Deferred rent	40	42
Accrued warranty	224	187
Other accrued liabilities	$ 409	$ 467

Note 7 - Contingencies (Details

Note 7 - Contingencies (Details Textual)	6 Months Ended
	Jun. 30, 2016
Product Warranty Accrual, Tape Libraries Parts and Labor, Term	3 years
Product Warranty Accrual, Power Supplies, Term	3 years

Note 7 - Product Warranty Liabi

Note 7 - Product Warranty Liability (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Beginning balance	$ 187	$ 154
Cost of warranty claims	(89)	(113)
Accruals for product warranties	126	146
Ending balance	$ 224	$ 187

Note 8 - Commitments (Details T

Note 8 - Commitments (Details Textual)	Apr. 01, 2016USD ($)ft²	Mar. 21, 2016USD ($)	Jul. 01, 2015USD ($)ft²	Jun. 30, 2016USD ($)ft²	Jun. 30, 2015USD ($)
Simi Valley California [Member]
Area of Real Estate Property | ft²				15,160
Operating Lease Monthly Rent				$ 10,000
Monthly Rent Step-up Percentage				3.00%
Westlake Village, California [Member]
Area of Real Estate Property | ft²				5,400
Operating Lease Monthly Rent				$ 10,000
Monthly Rent Step-up Percentage				3.00%
Operating Leases, Monthly Sublease Rent		$ 11,000
Operating Leases, Sublease, Monthly Rent Step-up Percentage		3.00%
Singapore [Member]
Area of Real Estate Property | ft²	1,359
Operating Lease Monthly Rent	$ 2,200
Lessee Leasing Arrangements, Operating Leases, Term of Contract	2 years
Interlink Electronics, Inc. [Member] | Sublease Agreement With Related Party [Member] | Qualstar Facility in Simi Valley [Member]
Area of Real Estate Property | ft²			608
Sublease Agreement, Term			1 year
Monthly Sublease Revenue			$ 1,000
Operating Leases, Rent Expense, Net				$ 112,000	$ 180,000

Note 8 - Future Minimum Lease P

Note 8 - Future Minimum Lease Payments (Details) $ in Thousands	Jun. 30, 2016USD ($)
2,016	$ 272
2,016	(91)
2,016	181
2,017	288
2,017	(139)
2,017	149
2,018	161
2,018	(143)
2,018	18
2,019	134
2,019	(147)
2,019	(13)
2,020	11
2,020	(12)
2,020	(1)
Total Commitment	866
Total Commitment	(532)
Total Commitment	$ 334

Note 9 - Stock Incentive Plan41

Note 9 - Stock Incentive Plans and Share-based Compensation (Details Textual) - USD ($)	Jun. 01, 2016	Apr. 01, 2014	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Restricted Stock [Member] | Executive Vice President [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period		100,000
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period					0	0
Chief Executive Officer [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period	100,000
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense					$ 0	$ 0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross					0	0
Allocated Share-based Compensation Expense			$ 1,000	$ 20,000	$ 2,000	$ 40,000

Note 10 - Stockholders' Equity

Note 10 - Stockholders' Equity (Details Textual)	Jun. 14, 2016$ / sharesshares	Jun. 30, 2016shares	Jun. 13, 2016shares	Dec. 31, 2015shares
Reverse Stock Split [Member]
Stockholders' Equity Note, Stock Split, Conversion Ratio	6
Share Price Before Reverse Stock Split | $ / shares	$ 2.52
Common Stock, Shares, Outstanding	2,042,020	2,042,000	12,253,117	2,042,000
Preferred Stock, Shares Authorized	5,000,000	5,000,000		5,000,000
Common Stock, Shares Authorized	50,000,000	50,000,000		50,000,000

Note 11 - Legal Proceedings (De

Note 11 - Legal Proceedings (Details Textual)	Jun. 30, 2016USD ($)
Loss Contingency, Accrual, Current	$ 89,000

Note 12 - Income Taxes (Details

Note 12 - Income Taxes (Details Textual) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Income Tax Expense (Benefit)	$ 0	$ 0

Note 13 - Segment Information45

Note 13 - Segment Information (Details Textual)	6 Months Ended
	Jun. 30, 2016
Number of Operating Segments	2

Note 13 - Segment Revenue (Deta

Note 13 - Segment Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Power Supplies [Member]
Revenue
Power Supplies	$ 1,255	$ 1,797	$ 2,604	$ 3,379
Storage:
Power Supplies	1,255	1,797	2,604	3,379
Tape Libraries [Member] | Product [Member]
Revenue
Power Supplies	653	935	981	1,653
Storage:
Power Supplies	653	935	981	1,653
Tape Libraries [Member] | Service [Member]
Revenue
Power Supplies	462	517	935	1,022
Storage:
Power Supplies	462	517	935	1,022
Tape Libraries [Member]
Revenue
Power Supplies	1,115	1,452	1,916	2,675
Storage:
Power Supplies	1,115	1,452	1,916	2,675
Power Supplies	2,370	3,249	4,520	6,054
Power Supplies	$ 2,370	$ 3,249	$ 4,520	$ 6,054

Note 13 - Income (Loss) Before

Note 13 - Income (Loss) Before Taxes by Segment (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Power Supplies [Member]
Loss before taxes	$ (333)	$ (121)	$ (458)	$ (309)
Data Storage [Member]
Loss before taxes	(3)	(133)	(292)	(432)
Loss before taxes	$ (336)	$ (254)	$ (750)	$ (741)

Note 13 - Total Assets by Segme

Note 13 - Total Assets by Segment (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015	Jun. 30, 2015	Dec. 31, 2014
Power Supplies [Member]
Power Supplies and Data Storage	$ 1,582	$ 2,092
Data Storage [Member]
Power Supplies and Data Storage	2,516	2,672
Cash and cash equivalents	3,504	3,963	$ 4,696	$ 5,242
Power Supplies and Data Storage	4,098	4,764
Total assets	$ 7,602	$ 8,727

Note 14 - Related Party Trans49

Note 14 - Related Party Transactions (Details Textual)	Jul. 01, 2015USD ($)ft²	Jun. 30, 2016USD ($)	Jun. 30, 2015USD ($)	Jun. 30, 2016USD ($)	Jun. 30, 2015USD ($)	Dec. 31, 2015USD ($)	May 01, 2014USD ($)
Interlink Electronics, Inc. [Member] | Administrative Services Provided to Related Party [Member]
Revenue from Related Parties		$ 9,000	$ 20,000	$ 20,000	$ 30,000
Interlink Electronics, Inc. [Member] | Reimbursement of Expenses Paid By Related Party [Member]
Related Party Transaction, Amounts of Transaction		5,000	1,000	7,000	$ 11,000
Due to Related Parties		1,000		1,000		$ 0
Interlink Electronics, Inc. [Member] | Sublease Agreement With Related Party [Member] | Qualstar Facility in Simi Valley [Member]
Sublease Agreement, Term	1 year
Area of Real Estate Property | ft²	608
Monthly Sublease Revenue	$ 1,000
Interlink Electronics, Inc. [Member]
Due from Related Parties		$ 3,000		$ 3,000		$ 6,000
BKF Capital Group [Member] | License Agreement [Member]
Monthly License Fee Receivable							$ 1,200
Proceeds from License Fees Received			$ 2,400