Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | May 01, 2017 | |
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) | 2,042,019 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Assets | ||
Cash and cash equivalents | $ 3,740 | $ 3,691 |
Restricted cash | 100 | 100 |
Accounts receivables, net | 1,946 | 1,583 |
Inventories, net | 1,127 | 1,360 |
Prepaid expenses and other current assets | 189 | 166 |
Total current assets | 7,102 | 6,900 |
Non-current assets: | ||
Property and equipment, net | 244 | 286 |
Other assets | 50 | 77 |
Total assets | 7,396 | 7,263 |
Liabilities and Shareholders’ Equity | ||
Accounts payable | 953 | 888 |
Accrued payroll and related liabilities | 167 | 222 |
Deferred service revenue, short term | 906 | 787 |
Other accrued liabilities | 324 | 359 |
Total current liabilities | 2,350 | 2,256 |
Long term liabilities: | ||
Other long term liabilities | 64 | 63 |
Deferred service revenue | 85 | 105 |
Total long term liabilities | 149 | 168 |
Total liabilities | 2,499 | 2,424 |
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 March 31, 2017 and December 31, 2016 | 19,063 | 19,063 |
Accumulated deficit | (14,166) | (14,224) |
Total shareholders’ equity | 4,897 | 4,839 |
Total liabilities and shareholders’ equity | $ 7,396 | $ 7,263 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares $ / shares in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
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, $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Net revenues | $ 2,439 | $ 2,150 |
Cost of goods sold | 1,549 | 1,501 |
Gross profit | 890 | 649 |
Operating expenses: | ||
Engineering | 186 | 395 |
Sales and marketing | 247 | 300 |
General and administrative | 399 | 369 |
Total operating expenses | 832 | 1,064 |
Income (loss) from operations | 58 | (415) |
Other income | 1 | |
Income (loss) before income taxes | 58 | (414) |
Provision for income taxes | 0 | 0 |
Net income (loss) | $ 58 | $ (414) |
Income (loss) per common share: | ||
Basic and diluted (in dollars per share) | $ 0.03 | $ (0.20) |
Weighted average common shares outstanding: | ||
Basic and diluted (in shares) | 2,042 | 2,042 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 58 | $ (414) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 44 | 47 |
Provision for inventory obsolescence | 73 | |
Share based compensation | 1 | |
Changes in operating assets and liabilities: | ||
Accounts receivable | (363) | 296 |
Inventories | 160 | 226 |
Prepaid expenses and other current assets | 4 | (16) |
Accounts payable | 65 | (100) |
Accrued payroll and related liabilities | (55) | (43) |
Deferred service revenue | 99 | (82) |
Other accrued liabilities | (34) | (105) |
Total adjustments | (7) | 224 |
Net cash provided by (used in) operating activities | 51 | (190) |
Cash flows from investing activities: | ||
Purchases of equipment | (2) | (27) |
Net cash used in investing activities | (2) | (27) |
Net increase (decrease) in cash, restricted cash and cash equivalents | 49 | (217) |
Cash, restricted cash and cash equivalents at beginning of period | 3,791 | 3,963 |
Cash, restricted cash and cash equivalents at end of period | 3,840 | 3,746 |
Supplemental cash flow disclosures: | ||
Income taxes paid | $ 1 | $ 8 |
Note 1 - Summary of Significant
Note 1 - Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2017 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | NOTE 1 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 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 10 December 31, 2016, March 16, 2017. Revenue Recognition We recognize revenue in accordance with Accounting Standards Codification (“ASC”) 605, 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 Deferred service revenue is shown separately in the condensed consolidated balance sheets as current and long term. At March 31, 2017, $991,000. December 31, 2016, $892,000. 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 may Inventory Valuation We record inventories at the lower of cost (first first may 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, 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 income (loss) . 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). Share-Based Compensation Share-based compensation is accounted for in accordance with ASC 718, 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, may 50% 740 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 may |
Note 2 - Recent Accounting Pron
Note 2 - Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2017 | |
Notes to Financial Statements | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | NOTE 2 Recent accounting guidance not yet adopted In May 2014, 2014 09 August 2015, 2015 14 2014 09. 2014 09. 2014 09 December 15, 2017. In February 2016, 2016 02 December 15, 2018. may In August 2016, 2016 15 December 15, 2017, In October 2016, 2016 16 December 15, 2017, In January 2017, 2017 01 December 15, 2017, |
Note 3 - Significant Customers,
Note 3 - Significant Customers, Concentration of Credit Risk, and Geographic Information | 3 Months Ended |
Mar. 31, 2017 | |
Notes to Financial Statements | |
Concentration Risk Disclosure [Text Block] | NOTE 3 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 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 March 31 , 2017 2016 (unaudited) (unaudited) Revenue – geographic activity (in thousands): $ % $ % North America $ 1,544 63.3 % $ 1,251 58.2 % Europe 470 19.3 % 488 22.7 % Asia Pacific 403 16.5 % 402 18.7 % Other 22 0.9 % 9 0.4 % $ 2,439 100.0 % $ 2,150 100.0 % Two 20.1% 14.0% three March 31, 2017. 20.6% 12.6% March 31, 2017. Two customers accounted for 15.0% 9.4% three March 31, 2016. 11.4% 5.0%, December 31, 2016. |
Note 4 - Net Earnings Per Share
Note 4 - Net Earnings Per Share | 3 Months Ended |
Mar. 31, 2017 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | NOTE 4 NET EARNINGS PER SHARE Basic net earnings per share has been computed by dividing net income or loss by the weighted average number of common shares outstanding. Diluted net earnings per share has been computed by dividing net earnings 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 income or 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 6 June 14, 2016, Three Months Ended March 31, 2017 2016 (unaudited) (unaudited) In thousands (except per share amounts): Net income (loss) $ 58 $ (414 ) Weighted average outstanding shares of common stock 2,042 2,042 Dilutive potential common shares from employee stock options - - Common stock and common stock equivalents 2,042 2,042 Loss per share: Basic net income (loss) per share $ 0.03 $ (0.20 ) Diluted net income (loss) per share $ 0.03 $ (0.20 ) |
Note 5 - Balance Sheet Details
Note 5 - Balance Sheet Details | 3 Months Ended |
Mar. 31, 2017 | |
Notes to Financial Statements | |
Supplemental Balance Sheet Disclosures [Text Block] | NOTE 5 - 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 first March 31, 2017 December 31, 2016 (unaudited) Raw materials $ 88 $ 45 Finished goods 1,039 1,315 Net inventory balance $ 1,127 $ 1,360 Property and equipment, net The components of property and equipment are as follows (in thousands): March 31, 2017 December 31, 2016 (unaudited) Leasehold improvements $ 114 $ 114 Furniture and fixtures 316 314 Machinery and equipment 1,039 1,039 1,469 1,467 Less accumulated depreciation and amortization (1,225 ) (1,181 ) Property and equipment, net $ 244 $ 286 Depreciation and amortization expense for the three March 31, 2017 2016, $44 ,000 $47,000 Other Accrued Liabilities The components of other liabilities are as follows (in thousands): March 31, 2017 December 31 , 201 6 (unaudited) Accrued warranty $ 227 $ 236 Accrued outside commissions 35 28 Accrued contingent legal fees 21 25 Deferred rent 34 37 Other accrued liabilities 7 33 Total other accrued liabilities $ 324 $ 359 |
Note 6 - Contingencies
Note 6 - Contingencies | 3 Months Ended |
Mar. 31, 2017 | |
Notes to Financial Statements | |
Contingencies Disclosure [Text Block] | NOTE 6 –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 three 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): Three Months Ended March 31, 2017 Year Ended December 31, 201 6 (unaudited) Beginning balance $ 236 $ 187 Cost of warranty claims (15 ) (157 ) Accruals for product warranties 6 206 Ending balance $ 227 $ 236 |
Note 7 - Commitments
Note 7 - Commitments | 3 Months Ended |
Mar. 31, 2017 | |
Notes to Financial Statements | |
Commitments Disclosure [Text Block] | NOTE 7 –CO MMITMENTS Lease Agreements Qualstar’s lease agreement for its 15,160 February 28, 2018. $10,000 3% Qualstar subleases a portion of the warehouse space to Interlink Electronics, Inc. (Interlink) and is reimbursed for the space and other related expenses on a monthly basis. As described in Note 14, Qualstar also leases approximately 5,400 January 31, 2020. $10,000 3% March 21, 2016, tenant $11,000 3% Effective April 1, 2016, two 1,359 $2,200 , which expires on September 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 Remainder of 2017 $ 216 $ (105 ) $ 111 2018 161 (143 ) 18 2019 134 (147 ) (13 ) 2020 11 (12 ) (1 ) Total Commitment $ 522 $ (407 ) $ 115 Net rent expense for the three March 31, 2017 2016 $36,000 $64,000, |
Note 8 - Stock Incentive Plans
Note 8 - Stock Incentive Plans and Share-based Compensation | 3 Months Ended |
Mar. 31, 2017 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | NOTE 8 – STOCK INCENTIVE PLANS AND S HARE- BASED COMPENSATION No three March 31, 2017 three March 31, 2016, $1,000 No March 31, 2017, . Stock Options The Company did not three March 31, 2017 three March 31, 2016. |
Note 9 - Stockholders' Equity
Note 9 - Stockholders' Equity | 3 Months Ended |
Mar. 31, 2017 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | NOTE 9 STOCKHOLDERS’ EQUITY On June 14, 2016, 2016 one six June 14, 2016. The reverse split decreased the number of outstanding shares of common stock from 12,253,117 2,042,020. 50,000,000 5,000,000. 1 6 |
Note 10 - Legal Proceedings
Note 10 - Legal Proceedings | 3 Months Ended |
Mar. 31, 2017 | |
Notes to Financial Statements | |
Legal Matters and Contingencies [Text Block] | NOTE 1 0 – LEGAL PROCEEDINGS The Company is 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 March 31, 2017, $44,000 . |
Note 11 - Income Taxes
Note 11 - Income Taxes | 3 Months Ended |
Mar. 31, 2017 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | NOTE 11 – INCOME TAXES We did not three March 31, 2017 March 31, 2016. |
Note 12 - Segment Information
Note 12 - Segment Information | 3 Months Ended |
Mar. 31, 2017 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | NOTE 1 2 – 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 two three March 31, 2017 2016. three March 31, 2017 2016. Power Supplies Storage 30 one” Segment revenue, income (loss) before taxes and total assets were as follows (in thousands): Three Months Ended March 31 , 2017 2016 Revenue (unaudited) (unaudited) Power Supplies $ 1,691 $ 1,349 Storage: Product 421 328 Service 327 473 Total storage $ 748 $ 801 Revenue $ 2,439 $ 2,150 Three Months Ended March 31 , 2017 2016 Income (loss) before Taxes (unaudited) (unaudited) Power Supplies $ 27 $ (125 ) Storage 31 (289 ) Income (loss) before taxes $ 58 $ (414 ) March 31, 2017 December 31 , 2016 (unaudited) Total Assets Cash and cash equivalents $ 3,740 $ 3,691 Restricted cash 100 100 Other assets: Power Supplies Accounts receivable, net 1,373 1,158 Inventories, net 349 444 Property and equipment, net 38 35 Other assets 29 39 1,789 1,676 Storage Accounts receivable, net 573 425 Inventories, net 778 916 Property and equipment, net 206 251 Other assets 210 204 1,767 1,796 Total Assets $ 7,396 $ 7,263 |
Note 13 - Related Party Transac
Note 13 - Related Party Transactions | 3 Months Ended |
Mar. 31, 2017 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | NOTE 13 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 reimburses Qualstar for leased space at the Simi Valley facility and for other administrative expenses paid by or on behalf of the Company. The total amount charged to Interlink for the three March 31, 2017 2016 $2,000 $2,000, . Interlink owed Qualstar $1,000 $1,000 March 31, 2017 December 31, 2016, The Company reimburses Interlink for expenses paid on the Company’s behalf. Interlink occasionally pays travel and other expenses incurred by Qualstar. The Company reimbursed Interlink $6,000 $11,000 three March 31, 2017 2016, not March 31, 2017. December 31, 2016, $2,000. |
Note 14 - Subsequent Events
Note 14 - Subsequent Events | 3 Months Ended |
Mar. 31, 2017 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | NOTE 1 4 – SUBSEQUENT EVENTS None noted. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
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 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 10 December 31, 2016, March 16, 2017. |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition We recognize revenue in accordance with Accounting Standards Codification (“ASC”) 605, 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 Deferred service revenue is shown separately in the condensed consolidated balance sheets as current and long term. At March 31, 2017, $991,000. December 31, 2016, $892,000. |
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 may |
Inventory, Policy [Policy Text Block] | Inventory Valuation We record inventories at the lower of cost (first first may |
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, |
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 income (loss) . |
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). |
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, |
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, may 50% 740 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 may |
Note 3 - Significant Customer21
Note 3 - Significant Customers, Concentration of Credit Risk, and Geographic Information (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Notes Tables | |
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block] | Three Months Ended March 31 , 2017 2016 (unaudited) (unaudited) Revenue – geographic activity (in thousands): $ % $ % North America $ 1,544 63.3 % $ 1,251 58.2 % Europe 470 19.3 % 488 22.7 % Asia Pacific 403 16.5 % 402 18.7 % Other 22 0.9 % 9 0.4 % $ 2,439 100.0 % $ 2,150 100.0 % |
Note 4 - Net Earnings Per Sha22
Note 4 - Net Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended March 31, 2017 2016 (unaudited) (unaudited) In thousands (except per share amounts): Net income (loss) $ 58 $ (414 ) Weighted average outstanding shares of common stock 2,042 2,042 Dilutive potential common shares from employee stock options - - Common stock and common stock equivalents 2,042 2,042 Loss per share: Basic net income (loss) per share $ 0.03 $ (0.20 ) Diluted net income (loss) per share $ 0.03 $ (0.20 ) |
Note 5 - Balance Sheet Details
Note 5 - Balance Sheet Details (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | March 31, 2017 December 31, 2016 (unaudited) Raw materials $ 88 $ 45 Finished goods 1,039 1,315 Net inventory balance $ 1,127 $ 1,360 |
Property, Plant and Equipment [Table Text Block] | March 31, 2017 December 31, 2016 (unaudited) Leasehold improvements $ 114 $ 114 Furniture and fixtures 316 314 Machinery and equipment 1,039 1,039 1,469 1,467 Less accumulated depreciation and amortization (1,225 ) (1,181 ) Property and equipment, net $ 244 $ 286 |
Schedule of Other Accrued Liabilities [Table Text Block] | March 31, 2017 December 31 , 201 6 (unaudited) Accrued warranty $ 227 $ 236 Accrued outside commissions 35 28 Accrued contingent legal fees 21 25 Deferred rent 34 37 Other accrued liabilities 7 33 Total other accrued liabilities $ 324 $ 359 |
Note 6 - Contingencies (Tables)
Note 6 - Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Notes Tables | |
Schedule of Product Warranty Liability [Table Text Block] | Three Months Ended March 31, 2017 Year Ended December 31, 201 6 (unaudited) Beginning balance $ 236 $ 187 Cost of warranty claims (15 ) (157 ) Accruals for product warranties 6 206 Ending balance $ 227 $ 236 |
Note 7 - Commitments (Tables)
Note 7 - Commitments (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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 Remainder of 2017 $ 216 $ (105 ) $ 111 2018 161 (143 ) 18 2019 134 (147 ) (13 ) 2020 11 (12 ) (1 ) Total Commitment $ 522 $ (407 ) $ 115 |
Note 12 - Segment Information (
Note 12 - Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Notes Tables | |
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | Three Months Ended March 31 , 2017 2016 Revenue (unaudited) (unaudited) Power Supplies $ 1,691 $ 1,349 Storage: Product 421 328 Service 327 473 Total storage $ 748 $ 801 Revenue $ 2,439 $ 2,150 |
Reconciliation of Assets from Segment to Consolidated [Table Text Block] | March 31, 2017 December 31 , 2016 (unaudited) Total Assets Cash and cash equivalents $ 3,740 $ 3,691 Restricted cash 100 100 Other assets: Power Supplies Accounts receivable, net 1,373 1,158 Inventories, net 349 444 Property and equipment, net 38 35 Other assets 29 39 1,789 1,676 Storage Accounts receivable, net 573 425 Inventories, net 778 916 Property and equipment, net 206 251 Other assets 210 204 1,767 1,796 Total Assets $ 7,396 $ 7,263 |
(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 March 31 , 2017 2016 Income (loss) before Taxes (unaudited) (unaudited) Power Supplies $ 27 $ (125 ) Storage 31 (289 ) Income (loss) before taxes $ 58 $ (414 ) |
Note 1 - Summary of Significa27
Note 1 - Summary of Significant Accounting Policies (Details Textual) - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 |
Deferred Revenue | $ 991,000 | $ 892,000 |
Note 3 - Significant Customer28
Note 3 - Significant Customers, Concentration of Credit Risk, and Geographic Information (Details Textual) - Customer Concentration Risk [Member] | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Sales Revenue, Net [Member] | ||
Number of Major Customers Concentration Risk | 2 | 2 |
Sales Revenue, Net [Member] | Customer 1 [Member] | ||
Concentration Risk, Percentage | 20.10% | 15.00% |
Sales Revenue, Net [Member] | Customer 2 [Member] | ||
Concentration Risk, Percentage | 14.00% | 9.40% |
Accounts Receivable [Member] | ||
Number of Major Customers Concentration Risk | 2 | 2 |
Accounts Receivable [Member] | Customer 1 [Member] | ||
Concentration Risk, Percentage | 20.60% | 11.40% |
Accounts Receivable [Member] | Customer 2 [Member] | ||
Concentration Risk, Percentage | 12.60% | 5.00% |
Note 3 - Significant Customer29
Note 3 - Significant Customers, Concentration of Credit Risk, and Geographic Information - Geographic Activity, Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Net revenues | $ 2,439 | $ 2,150 |
Geographic Concentration Risk [Member] | Sales Revenue, Services, Net [Member] | ||
Percentage of total revenues | 100.00% | 100.00% |
North America [Member] | ||
Net revenues | $ 1,544 | $ 1,251 |
North America [Member] | Geographic Concentration Risk [Member] | Sales Revenue, Services, Net [Member] | ||
Percentage of total revenues | 63.30% | 58.20% |
Europe [Member] | ||
Net revenues | $ 470 | $ 488 |
Europe [Member] | Geographic Concentration Risk [Member] | Sales Revenue, Services, Net [Member] | ||
Percentage of total revenues | 19.30% | 22.70% |
Asia Pacific [Member] | ||
Net revenues | $ 403 | $ 402 |
Asia Pacific [Member] | Geographic Concentration Risk [Member] | Sales Revenue, Services, Net [Member] | ||
Percentage of total revenues | 16.50% | 18.70% |
Other Geographic Areas [Member] | ||
Net revenues | $ 22 | $ 9 |
Other Geographic Areas [Member] | Geographic Concentration Risk [Member] | Sales Revenue, Services, Net [Member] | ||
Percentage of total revenues | 0.90% | 0.40% |
Note 4 - Net Earnings Per Sha30
Note 4 - Net Earnings Per Share (Details Textual) | Jun. 14, 2016 |
Reverse Stock Split [Member] | |
Stockholders' Equity Note, Stock Split, Conversion Ratio | 6 |
Note 4 - Net Earnings Per Sha31
Note 4 - Net Earnings Per Share - Computation of Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Net income (loss) | $ 58 | $ (414) |
Weighted average outstanding shares of common stock (in shares) | 2,042 | 2,042 |
Dilutive potential common shares from employee stock options (in shares) | ||
Common stock and common stock equivalents (in shares) | 2,042 | 2,042 |
Basic net income (loss) per share (in dollars per share) | $ 0.03 | $ (0.20) |
Diluted net income (loss) per share (in dollars per share) | $ 0.03 | $ (0.20) |
Note 5 - Balance Sheet Detail32
Note 5 - Balance Sheet Details (Details Textual) - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Depreciation | $ 44,000 | $ 47,000 |
Note 5 - Balance Sheet Detail33
Note 5 - Balance Sheet Details - Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Raw materials | $ 88 | $ 45 |
Finished goods | 1,039 | 1,315 |
Net inventory balance | $ 1,127 | $ 1,360 |
Note 5 - Balance Sheet Detail34
Note 5 - Balance Sheet Details - Components of Property and Equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Property, plant and equipment, gross | $ 1,469 | $ 1,467 |
Less accumulated depreciation and amortization | (1,225) | (1,181) |
Property and equipment, net | 244 | 286 |
Leasehold Improvements [Member] | ||
Property, plant and equipment, gross | 114 | 114 |
Furniture and Fixtures [Member] | ||
Property, plant and equipment, gross | 316 | 314 |
Machinery and Equipment [Member] | ||
Property, plant and equipment, gross | $ 1,039 | $ 1,039 |
Note 5 - Balance Sheet Detail35
Note 5 - Balance Sheet Details - Other Accrued Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Accrued warranty | $ 227 | $ 236 |
Deferred rent | 34 | 37 |
Other accrued liabilities | 324 | 359 |
Accrued Service Contracts [Member] | ||
Accrued liabilities | 35 | 28 |
Accrued Contingent Legal Fees [Member] | ||
Accrued liabilities | 21 | 25 |
Other Accrued Liabilities [Member] | ||
Other accrued liabilities | $ 7 | $ 33 |
Note 6 - Contingencies (Details
Note 6 - Contingencies (Details Textual) | 3 Months Ended |
Mar. 31, 2017 | |
Product Warranty Accrual, Tape Libraries Parts and Labor, Term | 3 years |
Product Warranty Accrual, Power Supplies, Term | 3 years |
Note 6 - Contingencies - Produc
Note 6 - Contingencies - Product Warranty Liability (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Beginning balance | $ 236 | $ 187 |
Cost of warranty claims | (15) | (157) |
Accruals for product warranties | 6 | 206 |
Ending balance | $ 227 | $ 236 |
Note 7 - Commitments (Details T
Note 7 - Commitments (Details Textual) | Apr. 01, 2016USD ($)ft² | Mar. 31, 2017USD ($)ft² | Mar. 31, 2016USD ($) |
Operating Leases, Rent Expense, Net | $ 36,000 | $ 64,000 | |
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, Operating Lease, Term of Contract | 2 years |
Note 7 - Commitments - Future M
Note 7 - Commitments - Future Minimum Lease Payments (Details) $ in Thousands | Mar. 31, 2017USD ($) |
2017, Minimum Lease Payment | $ 216 |
2017, Sublease Revenue | (105) |
2017, Net Minimum Lease Payment | 111 |
2018, Minimum Lease Payment | 161 |
2018, Sublease Revenue | (143) |
2018, Net Minimum Lease Payment | 18 |
2019, Minimum Lease Payment | 134 |
2019, Sublease Revenue | (147) |
2019, Net Minimum Lease Payment | (13) |
2020, Minimum Lease Payment | 11 |
2020, Sublease Revenue | (12) |
2020, Net Minimum Lease Payment | (1) |
Total Commitment, Minimum Lease Payment | 522 |
Total Commitment, Sublease Revenue | (407) |
Total Commitment, Net Minimum Lease Payment | $ 115 |
Note 8 - Stock Incentive Plan40
Note 8 - Stock Incentive Plans and Share-based Compensation (Details Textual) - USD ($) shares in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Allocated Share-based Compensation Expense | $ 0 | $ 1,000 |
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | 0 | $ 0 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | 0 |
Note 9 - Stockholders' Equity (
Note 9 - Stockholders' Equity (Details Textual) | Jun. 14, 2016shares | Mar. 31, 2017shares | Dec. 31, 2016shares | Jun. 13, 2016shares |
Common Stock, Shares, Outstanding | 2,042,020 | 2,042,000 | 2,042,000 | 12,253,117 |
Common Stock, Shares Authorized | 50,000,000 | 50,000,000 | ||
Preferred Stock, Shares Authorized | 5,000,000 | 5,000,000 | ||
Reverse Stock Split [Member] | ||||
Stockholders' Equity Note, Stock Split, Conversion Ratio | 6 |
Note 10 - Legal Proceedings (De
Note 10 - Legal Proceedings (Details Textual) | Mar. 31, 2017USD ($) |
Loss Contingency, Accrual, Current | $ 44,000 |
Note 11 - Income Taxes (Details
Note 11 - Income Taxes (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Income Tax Expense (Benefit) | $ 0 | $ 0 |
Note 12 - Segment Information44
Note 12 - Segment Information (Details Textual) | 3 Months Ended |
Mar. 31, 2017 | |
Number of Operating Segments | 2 |
Note 12 - Segment Information -
Note 12 - Segment Information - Segment Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Revenue | $ 2,439 | $ 2,150 |
Storage: | ||
Revenue | 2,439 | 2,150 |
Power Supplies [Member] | ||
Revenue | 1,691 | 1,349 |
Storage: | ||
Revenue | 1,691 | 1,349 |
Data Storage [Member] | ||
Revenue | 748 | 801 |
Storage: | ||
Revenue | 748 | 801 |
Data Storage [Member] | Product [Member] | ||
Revenue | 421 | 328 |
Storage: | ||
Revenue | 421 | 328 |
Data Storage [Member] | Service [Member] | ||
Revenue | 327 | 473 |
Storage: | ||
Revenue | $ 327 | $ 473 |
Note 12 - Segment Information46
Note 12 - Segment Information - Income (Loss) Before Taxes by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Income (loss) before taxes | $ 58 | $ (414) |
Power Supplies [Member] | ||
Income (loss) before taxes | 27 | (125) |
Data Storage [Member] | ||
Income (loss) before taxes | $ 31 | $ (289) |
Note 12 - Segment Information47
Note 12 - Segment Information - Total Assets by Segment (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Cash and cash equivalents | $ 3,740 | $ 3,691 |
Restricted cash | 100 | 100 |
Inventories, net | 1,127 | 1,360 |
Property and equipment, net | 244 | 286 |
Total assets | 7,396 | 7,263 |
Power Supplies [Member] | ||
Accounts receivable, net | 1,373 | 1,158 |
Inventories, net | 349 | 444 |
Property and equipment, net | 38 | 35 |
Other assets | 29 | 39 |
Total assets | 1,789 | 1,676 |
Data Storage [Member] | ||
Accounts receivable, net | 573 | 425 |
Inventories, net | 778 | 916 |
Property and equipment, net | 206 | 251 |
Other assets | 210 | 204 |
Total assets | $ 1,767 | $ 1,796 |
Note 13 - Related Party Trans48
Note 13 - Related Party Transactions (Details Textual) - Interlink Electronics, Inc. [Member] - USD ($) | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Due from Related Parties | $ 1,000 | $ 1,000 | |
Due to Related Parties | 0 | $ 2,000 | |
Administrative Services Provided to Related Party [Member] | |||
Related Party Transaction, Amounts of Transaction | 2,000 | $ 2,000 | |
Reimbursement of Expenses Paid By Related Party [Member] | |||
Related Party Transaction, Amounts of Transaction | $ 6,000 | $ 11,000 |