Qualstar (QBAK) 10-Q 7 May 19 2019 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Mar. 31, 2019	May 02, 2019
Document Information [Line Items]
Entity Registrant Name	QUALSTAR CORP
Entity Central Index Key	0000758938
Trading Symbol	qbak
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Current Reporting Status	Yes
Entity Emerging Growth Company	false
Entity Small Business	true
Entity Common Stock, Shares Outstanding (in shares)		1,959,021
Document Type	10-Q
Document Period End Date	Mar. 31, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q1
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 4,665,000	$ 4,781,000
Restricted cash	100,000	100,000
Accounts receivables, net	1,745,000	1,809,000
Inventories, net	2,775,000	2,897,000
Prepaid expenses and other current assets	188,000	180,000
Total current assets	9,473,000	9,767,000
Non-current assets:
Property and equipment, net	99,000	112,000
Right-of-use	363,000
Other assets	132,000	119,000
Total non-current assets	594,000	231,000
Total assets	10,067,000	9,998,000
Current liabilities:
Accounts payable	943,000	1,023,000
Accrued payroll and related liabilities	175,000	185,000
Deferred service revenue, short-term	740,000	736,000
Lease liabilities, current	229,000
Other accrued liabilities	524,000	559,000
Total current liabilities	2,611,000	2,503,000
Long-term liabilities:
Other long-term liabilities	40,000	40,000
Lease liabilities, long term	152,000
Deferred service revenue	124,000	127,000
Total long-term liabilities	316,000	167,000
Total liabilities	2,927,000	2,670,000
Shareholders’ equity:
Preferred stock, no par value; 5,000,000 shares authorized; no shares issued	0	0
Common stock, no par value; 50,000,000 shares authorized, shares issued and outstanding 1,971,283 at March 31, 2019 and 2,030,017 shares at December 31, 2018	19,097,000	19,426,000
Accumulated deficit	(11,957,000)	(12,098,000)
Total shareholders’ equity	7,140,000	7,328,000
Total liabilities and shareholders’ equity	$ 10,067,000	$ 9,998,000

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares $ / shares in Thousands	Mar. 31, 2019	Dec. 31, 2018
Preferred stock, no par value (in dollars per share)	$ 0	$ 0
Preferred stock, authorized (in shares)	5,000,000	5,000,000
Preferred stock, issued (in shares)	0	0
Common stock, no par value (in dollars per share)	$ 0	$ 0
Common stock, authorized (in shares)	50,000,000	50,000,000
Common stock, issued (in shares)	1,971,283	2,030,017
Common stock, outstanding (in shares)	1,971,283	2,030,017

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Net revenues	$ 2,856	$ 2,935
Cost of goods sold	1,936	1,507
Gross profit	920	1,428
Operating expenses:
Engineering	123	121
Sales and marketing	308	295
General and administrative	353	422
Total operating expenses	784	838
Income from operations	136	590
Other income	5
Income before income taxes	141	590
Provision for income taxes	0	0
Net Income	$ 141	$ 590
Earnings per share:
Basic (in dollars per share)	$ 0.07	$ 0.29
Diluted (in dollars per share)	$ 0.07	$ 0.28
Shares used in per share calculation:
Basic (in shares)	1,971	2,048
Diluted (in shares)	1,971	2,101

Consolidated Statements of Shar

Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands	Common Stock [Member]	AOCI Attributable to Parent [Member]	Retained Earnings [Member]	Total
Balances (in shares) at Dec. 31, 2017	2,043
Balances at Dec. 31, 2017	$ 19,480		$ (13,584)	$ 5,896
Exercise of stock options (in shares)	5
Exercise of stock options	$ 34			34
Net income			590	590
Balances (in shares) at Mar. 31, 2018	2,048
Balances at Mar. 31, 2018	$ 19,514		(12,994)	6,520
Balances (in shares) at Dec. 31, 2018	2,030
Balances at Dec. 31, 2018	$ 19,426		(12,098)	$ 7,328
Exercise of stock options (in shares)
Net income			141	$ 141
Stock repurchase (in shares)	(59)
Stock repurchase	$ (329)			(329)
Balances (in shares) at Mar. 31, 2019	1,971
Balances at Mar. 31, 2019	$ 19,097		$ (11,957)	$ 7,140

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Cash flows from operating activities:
Net income	$ 141	$ 590
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	13	30
Provision for inventory obsolescence	36	87
Amortization of right of use	33
Changes in operating assets and liabilities:
Accounts receivable	64	(177)
Inventories	86	(134)
Prepaid expenses and other current assets	(21)	(8)
Accounts payable	(80)	(262)
Accrued payroll and related liabilities	(10)	(6)
Deferred service revenue	1	394
Lease liabilities	(36)
Other accrued liabilities	(14)	(15)
Total adjustments	72	(91)
Net cash provided by operating activities	213	499
Cash flows from financing activities:
Proceeds from the exercise of stock options		34
Purchase of common stock	(329)
Net cash provided by (used in) financing activities	(329)	34
Net increase (decrease) in cash, restricted cash and cash equivalents	(116)	533
Cash, restricted cash and cash equivalents at beginning of period	4,881	4,798
Cash, restricted cash and cash equivalents at end of period	4,765	5,331
Supplemental cash flow disclosures:
Income taxes paid

Note 1 - Summary of Significant

Note 1 - Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2019
Notes to Financial Statements
Significant Accounting Policies [Text Block]	NOTE 1 Basis of Presentation The accompanying condensed consolidated balance sheet as of December 31, 2018, 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 Qualstar has established two July 4, 2018, September 5, 2018, We design our products at our facilities in California and Singapore. We sell our products globally through authorized resellers and directly to OEMs. N2Power The Company's significant accounting policies are disclosed in Note 1 10 December 31, 2018, March 7, 2019 ( no three March 31, 2019, Principles of Consolidation The condensed consolidated financial statements include our accounts and the accounts of each of our wholly owned subsidiaries that were in existence during the periods presented: Qualstar Corporation Singapore Private Limited, N2Power, Interim results are not 10 Revenue Recognition The Company recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration which we expect to receive in exchange for those goods or services. To determine revenue recognition for arrangements that the Company determines are within the scope of ASC 606, five five 606, 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, we defer revenue recognition until such events occur. We derive revenues from two may A variety of technical services can be contracted by our customers for a designated period of time. 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, 2019 $864,000. December 31, 2018, $863,000. 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, March 31, 2019 $97,000. December 31, 2018, $100,000. Fair Value of Financial Instruments The carrying amounts of the Company's financial instruments, which include cash equivalents, accounts receivable, accounts payable, related party, and other long-term liabilities, approximate their fair values. 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 not 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 not No Leases Effective January 1, 2019, 842, Leases In calculating the right of use asset and lease liability, the Company elects to combine lease and non-lease components. The Company excludes short-term leases having initial terms of 12 The Company continues to account for leases in the prior period financial statements under ASC Topic 840. Operating Segments The Company operates in two two

Note 2 - Recent Accounting Pron

Note 2 - Recent Accounting Pronouncements	3 Months Ended
	Mar. 31, 2019
Notes to Financial Statements
New Accounting Pronouncements and Changes in Accounting Principles [Text Block]	NOTE 2 Recent accounting guidance adopted FASB issued ASU 2016 02, 2018 09, 2018 10, 2018 11, 2019 01 11’s January 1, 2019, 2016 02, 2018 09, 2018 10, 2018 11 2019 0. not In June 2018, 2018 07 718, December 15, 2018. January 1, 2019, 2018 07 not In February 2018, 2018 02 December 22, 2017. December 15, 2018. January 1, 2019, 2018 02 not

Note 3 - Balance Sheet Details

Note 3 - Balance Sheet Details	3 Months Ended
	Mar. 31, 2019
Notes to Financial Statements
Supplemental Balance Sheet Disclosures [Text Block]	NOTE 3 - 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 , 201 9 December 31, 201 8 (unaudited) Raw materials $ 112 $ 136 Finished goods 2,663 2,761 Net inventory balance $ 2,775 $ 2,897 Property and equipment, net The components of property and equipment are as follows (in thousands): March 31 , 201 9 December 31, 201 8 (unaudited) Leasehold improvements $ 114 $ 114 Furniture and fixtures 286 286 Machinery and equipment 844 844 1,244 1,244 Less accumulated depreciation and amortization (1,145 ) (1,132 ) Property and equipment, net $ 99 $ 112 Depreciation and amortization expense for the three March 31, 2019 2018 $13,000 $30,000 Other Accrued Liabilities The components of other liabilities are as follows (in thousands): March 31, 2019 December 31 , 201 8 (unaudited) Accrued warranty $ 364 $ 365 Accrued outside commissions 50 41 Accrued contingent legal fees 97 100 Deferred rent - 22 Other accrued liabilities 13 31 Total other accrued liabilities $ 524 $ 559

Note 4 - Contingencies

Note 4 - Contingencies	3 Months Ended
	Mar. 31, 2019
Notes to Financial Statements
Contingencies Disclosure [Text Block]	NOTE 4 –CONTINGENCIES Accrued Warranty We provide a three two one may may We provide a three A provision for costs related to warranty expense is recorded when revenue is recognized, which is estimated based on historical warranty costs incurred. Activity in the liability for product warranty (included in other accrued liabilities) for the periods presented is as follows (in thousands): Three months Ended March 31, 2019 Year Ended December 31, 201 8 (unaudited) Beginning balance $ 365 $ 322 Cost of warranty claims (9 ) (15 ) Accruals for product warranties 8 58 Ending balance $ 364 $ 365

Note 5 - Net Earnings Per Share

Note 5 - Net Earnings Per Share	3 Months Ended
	Mar. 31, 2019
Notes to Financial Statements
Earnings Per Share [Text Block]	NOTE 5 – NET EARNINGS PER SHARE Basic net earnings per share has been computed by dividing net income 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 per share for the periods indicated, in thousands, except per share amounts. Three Months Ended March 31, 2019 2018 (unaudited) (unaudited) Net Income (a) $ 141 $ 590 Weighted average outstanding shares of common stock (b) 1,971 2,048 Dilutive potential common shares from employee stock options - 53 Common stock and common stock equivalents (c) 1,971 2,101 Income per share: Basic net income per share (a)/(b) $ 0.07 $ 0.29 Diluted net income per share (a)/(c) $ 0.07 $ 0.28 For the three March 31, 2019 2018, 178,000 4,666

Note 6 - Stockholders' Equity

Note 6 - Stockholders' Equity	3 Months Ended
	Mar. 31, 2019
Notes to Financial Statements
Stockholders' Equity Note Disclosure [Text Block]	N OTE 6 On December 5, 2018, $2,400,000 not 409,000. 58,734 three March 31, 2019 76,836 December 5, 2019.

Note 7 - Stock Incentive Plans

Note 7 - Stock Incentive Plans and Share-based Compensation	3 Months Ended
	Mar. 31, 2019
Notes to Financial Statements
Share-based Payment Arrangement [Text Block]	NOTE 7 – STOCK INCENTIVE PLANS AND S HARE- BASED COMPENSATION Share-Based Compensation The Company did not three March 31, 2019 2018. No March 31, 2019, not Stock Option Plan The Company has two Qualstar adopted the 2008 “2008 2008 no may 20,000 2008 The 2017 “2017 June 13, 2017. 2017 2017 200,000 With respect to options, the fair value of each option award is estimated on the date of grant using the Black-Scholes option valuation model that uses various assumptions, such as volatility, expected term and risk-free interest rate. Expected volatilities are based on the historical volatility of the Company’s stock. The Company uses historical data to estimate option exercise and employee termination in determining forfeiture rates. The expected term of options granted is estimated based on the vesting term of the award, historical employee exercise behavior, expected volatility of the Company’s stock and an employee’s average length of service. The risk-free interest rate used in this model correlates to a U.S. constant rate Treasury security with a contractual life that approximates the expected term of the option award. The following table summarizes stock option activity: Options Shares Weighted Average Exercise Price per Share Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value Outstanding at December 31, 2018 178,000 $ 7.19 8.63 — Granted — — — — Exercised — — — — Forfeited, canceled or expired — — — — Outstanding at March 31, 2019 178,000 7.19 7.51 — Exercisable at March 31, 2019 178,000 $ 7.19 7.51 $ —

Note 8 - Income Taxes

Note 8 - Income Taxes	3 Months Ended
	Mar. 31, 2019
Notes to Financial Statements
Income Tax Disclosure [Text Block]	NOTE 8 – INCOME TAXES We did not three March 31, 2019 2018,

Note 9 - Significant Customers,

Note 9 - Significant Customers, Concentration of Credit Risk, and Geographic Information	3 Months Ended
	Mar. 31, 2019
Notes to Financial Statements
Concentration Risk Disclosure [Text Block]	NOTE 9 We have no 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 , 201 9 201 8 Revenue – geographic activity (in thousands): (unaudited) (unaudited) North America $ 1,919 67.2 % $ 1,577 53.8 % Europe 580 20.3 % 312 10.6 % Asia Pacific 334 11.7 % 1,022 34.8 % Other 23 0.8 % 24 0.8 % $ 2,856 100.0 % $ 2,935 100.0 % Two customers accounted for 12.7% 10.1% three March 31, 2019. March 31, 2019, two 19.0% 2.3% two December 31, 2018. 23.5% 11.0% three March 31, 2018.

Note 10 - Commitments

Note 10 - Commitments	3 Months Ended
	Mar. 31, 2019
Notes to Financial Statements
Commitments Disclosure [Text Block]	NOTE 10 – CO MMITMENTS Lease Agreements The Company has entered into a new lease in Camarillo, California for its headquarters beginning June 1, 2019. 9,910 5 two July 31, 2024. $9,910 3% Qualstar leases a 15,160 three December 15, 2014 three February 28, 2021. $11,000 3% 14, Qualstar also leases approximately 5,400 January 31, 2020. $11,000 3% March 21, 2016, $12,000 3% Effective April 1, 2016, two 1,359 $2,500 March 31, 2020. Such leases do not not The rate implicit in each lease is not three March 31, 2019 6.75%, may Right of use assets for operating leases are periodically reduced by impairment losses. We use the long-lived assets impairment guidance in ASC Subtopic 360 10, March 31, 2019, not We monitor for events or changes in circumstances that require a reassessment of one At March 31, 2019, $229,000 $152,000, $363,000. 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 2019 $ 274 (113 ) $ 161 2020 276 (12 ) 264 2021 147 - 147 2022 128 - 128 2023 131 - 131 After 78 - 78 Total undiscounted future non-cancelable minimum lease payments 1,034 (125 ) 909 Less: Imputed interest (127 ) - (127 ) Present value of lease liabilities $ 907 $ (125 ) $ 782 In the Company's financial statements for periods prior to January 1, 2019, 840, three March 31, 2018 $38,000. Other information related to our operating leases is as follows: Three Months Ended March 31, 2019 Weighted average remaining lease term in years 2.19 Weighted average discount rate 6.75 % Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 74 Operating cash flows from finance leases - Financing cash flows from finance leases -

Note 11 - Segment Information

Note 11 - Segment Information	3 Months Ended
	Mar. 31, 2019
Notes to Financial Statements
Segment Reporting Disclosure [Text Block]	NOTE 1 1 – 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, 2019 2018. two three March 31, 2019 2018. Power Supplies Storage Segment revenue, income before taxes and total assets were as follows (in thousands): Three Months Ended March 31 , 2019 2018 (unaudited) (unaudited) Revenue Power Supplies $ 1,370 $ 1,315 Storage: Product 783 516 Service 703 1,104 Total storage $ 1,486 $ 1,620 Revenue $ 2,856 $ 2,935 Three Months Ended March 31, 2019 2018 (unaudited) (unaudited) Income (loss) before Taxes Power Supplies $ (10 ) $ (56 ) Storage 151 646 Income before taxes $ 141 $ 590 March 31, 2019 December 31, 2018 Total Assets ( ) Power Supplies Cash and cash equivalents $ 644 $ 381 Accounts receivable, net 874 1,048 Inventories, net 1,449 1,576 Property and equipment, net 43 47 Other assets 133 102 Total power supply assets 3,143 3,154 Storage Cash and cash equivalents $ 4,021 $ 4,400 Restricted cash 100 100 Accounts receivable, net 871 761 Inventories, net 1,326 1,321 Prepaid expenses and other current assets 391 168 Property and equipment, net 56 65 Other assets 159 29 Total storage assets 6,924 6,844 Total Assets $ 10,067 $ 9,998

Note 12 - Related Party Transac

Note 12 - Related Party Transactions	3 Months Ended
	Mar. 31, 2019
Notes to Financial Statements
Related Party Transactions Disclosure [Text Block]	NOTE 1 2 – 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”) and BKF Capital Group, Inc. (“BKF”). 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, 2019 2018 $6,000 $4,000, $2,000 $2,000 March 31, 2019 December 31, 2018, The Company reimburses Interlink for expenses paid on the Company’s behalf. Interlink occasionally pays travel, consulting and other expenses incurred by Qualstar. The Company reimbursed Interlink $57,000 $57,000 three March 31, 2019 2018, $17,000 March 31, 2019. December 31, 2018, $2,000. The Company reimburses BKF for expenses paid on the Company’s behalf. BKF occasionally pays consulting expenses incurred by Qualstar. The Company reimbursed BKF $2,000 three March 31, 2018. not March 31, 2019 $2,000 December 31, 2018.

Note 13 - Subsequent Events

Note 13 - Subsequent Events	3 Months Ended
	Mar. 31, 2019
Notes to Financial Statements
Subsequent Events [Text Block]	NOTE 1 3 – SUBSEQUENT EVENTS On April 13, 2019, Employment Agreement January 1, 2019 December 31, 2020, Pursuant to the Employment Agreement, Mr. Bronson will receive an annual base salary of $200,000 50% Compensation Committee ninety 90 50,000 Restricted Stock Units 2017 December 31, 2019 December 31, 2020, 25,000 Mr. Bronson may no ninety 90 Separation Date Final Pay If Mr. Bronson’s employment is terminated due to his death or Disability (as such term is defined in the Employment Agreement), Mr. Bronson or his beneficiaries will be entitled to receive the Final Pay and all equity, including the Restricted Stock Units, issued to Mr. Bronson by us but not We may may 12 not Severance Benefits In the event of a Change in Control (as such term is defined in the Employment Agreement) of the company that results in the termination of Mr. Bronson’s employment for Good Reason or without Cause within 180 The Employment Agreement also contains certain non-disclosure covenants that apply during his employment and thereafter.

Significant Accounting Policies

Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2019
Accounting Policies [Abstract]
Basis of Accounting, Policy [Policy Text Block]	Basis of Presentation The accompanying condensed consolidated balance sheet as of December 31, 2018, 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 Qualstar has established two July 4, 2018, September 5, 2018, We design our products at our facilities in California and Singapore. We sell our products globally through authorized resellers and directly to OEMs. N2Power The Company's significant accounting policies are disclosed in Note 1 10 December 31, 2018, March 7, 2019 ( no three March 31, 2019,
Consolidation, Policy [Policy Text Block]	Principles of Consolidation The condensed consolidated financial statements include our accounts and the accounts of each of our wholly owned subsidiaries that were in existence during the periods presented: Qualstar Corporation Singapore Private Limited, N2Power, Interim results are not 10
Revenue [Policy Text Block]	Revenue Recognition The Company recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration which we expect to receive in exchange for those goods or services. To determine revenue recognition for arrangements that the Company determines are within the scope of ASC 606, five five 606, 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, we defer revenue recognition until such events occur. We derive revenues from two may A variety of technical services can be contracted by our customers for a designated period of time. 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, 2019 $864,000. December 31, 2018, $863,000.
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, March 31, 2019 $97,000. December 31, 2018, $100,000.
Fair Value of Financial Instruments, Policy [Policy Text Block]	Fair Value of Financial Instruments The carrying amounts of the Company's financial instruments, which include cash equivalents, accounts receivable, accounts payable, related party, and other long-term liabilities, approximate their fair values.
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 not 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 not No
Lessee, Leases [Policy Text Block]	Leases Effective January 1, 2019, 842, Leases In calculating the right of use asset and lease liability, the Company elects to combine lease and non-lease components. The Company excludes short-term leases having initial terms of 12 The Company continues to account for leases in the prior period financial statements under ASC Topic 840.
Segment Reporting, Policy [Policy Text Block]	Operating Segments The Company operates in two two

Note 3 - Balance Sheet Details

Note 3 - Balance Sheet Details (Tables)	3 Months Ended
	Mar. 31, 2019
Notes Tables
Schedule of Inventory, Current [Table Text Block]	March 31 , 201 9 December 31, 201 8 (unaudited) Raw materials $ 112 $ 136 Finished goods 2,663 2,761 Net inventory balance $ 2,775 $ 2,897
Property, Plant and Equipment [Table Text Block]	March 31 , 201 9 December 31, 201 8 (unaudited) Leasehold improvements $ 114 $ 114 Furniture and fixtures 286 286 Machinery and equipment 844 844 1,244 1,244 Less accumulated depreciation and amortization (1,145 ) (1,132 ) Property and equipment, net $ 99 $ 112
Schedule of Other Accrued Liabilities [Table Text Block]	March 31, 2019 December 31 , 201 8 (unaudited) Accrued warranty $ 364 $ 365 Accrued outside commissions 50 41 Accrued contingent legal fees 97 100 Deferred rent - 22 Other accrued liabilities 13 31 Total other accrued liabilities $ 524 $ 559

Note 4 - Contingencies (Tables)

Note 4 - Contingencies (Tables)	3 Months Ended
	Mar. 31, 2019
Notes Tables
Schedule of Product Warranty Liability [Table Text Block]	Three months Ended March 31, 2019 Year Ended December 31, 201 8 (unaudited) Beginning balance $ 365 $ 322 Cost of warranty claims (9 ) (15 ) Accruals for product warranties 8 58 Ending balance $ 364 $ 365

Note 5 - Net Earnings Per Sha_2

Note 5 - Net Earnings Per Share (Tables)	3 Months Ended
	Mar. 31, 2019
Notes Tables
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	Three Months Ended March 31, 2019 2018 (unaudited) (unaudited) Net Income (a) $ 141 $ 590 Weighted average outstanding shares of common stock (b) 1,971 2,048 Dilutive potential common shares from employee stock options - 53 Common stock and common stock equivalents (c) 1,971 2,101 Income per share: Basic net income per share (a)/(b) $ 0.07 $ 0.29 Diluted net income per share (a)/(c) $ 0.07 $ 0.28

Note 7 - Stock Incentive Plan_2

Note 7 - Stock Incentive Plans and Share-based Compensation (Tables)	3 Months Ended
	Mar. 31, 2019
Notes Tables
Share-based Payment Arrangement, Option, Activity [Table Text Block]	Options Shares Weighted Average Exercise Price per Share Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value Outstanding at December 31, 2018 178,000 $ 7.19 8.63 — Granted — — — — Exercised — — — — Forfeited, canceled or expired — — — — Outstanding at March 31, 2019 178,000 7.19 7.51 — Exercisable at March 31, 2019 178,000 $ 7.19 7.51 $ —

Note 9 - Significant Customer_2

Note 9 - Significant Customers, Concentration of Credit Risk, and Geographic Information (Tables)	3 Months Ended
	Mar. 31, 2019
Notes Tables
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block]	Three Months Ended March 31 , 201 9 201 8 Revenue – geographic activity (in thousands): (unaudited) (unaudited) North America $ 1,919 67.2 % $ 1,577 53.8 % Europe 580 20.3 % 312 10.6 % Asia Pacific 334 11.7 % 1,022 34.8 % Other 23 0.8 % 24 0.8 % $ 2,856 100.0 % $ 2,935 100.0 %

Note 10 - Commitments (Tables)

Note 10 - Commitments (Tables)	3 Months Ended
	Mar. 31, 2019
Notes Tables
Lessee, Operating Lease, Liability, Maturity [Table Text Block]	Years Ending December 31, Minimum Lease Payment Sublease Revenue Net Minimum Lease Payment Remainder of 2019 $ 274 (113 ) $ 161 2020 276 (12 ) 264 2021 147 - 147 2022 128 - 128 2023 131 - 131 After 78 - 78 Total undiscounted future non-cancelable minimum lease payments 1,034 (125 ) 909 Less: Imputed interest (127 ) - (127 ) Present value of lease liabilities $ 907 $ (125 ) $ 782
Lessee, Operating Lease, Other Information [Table Text Block]	Three Months Ended March 31, 2019 Weighted average remaining lease term in years 2.19 Weighted average discount rate 6.75 % Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 74 Operating cash flows from finance leases - Financing cash flows from finance leases -

Note 11 - Segment Information (

Note 11 - Segment Information (Tables)	3 Months Ended
	Mar. 31, 2019
Notes Tables
Reconciliation of Revenue from Segments to Consolidated [Table Text Block]	Three Months Ended March 31 , 2019 2018 (unaudited) (unaudited) Revenue Power Supplies $ 1,370 $ 1,315 Storage: Product 783 516 Service 703 1,104 Total storage $ 1,486 $ 1,620 Revenue $ 2,856 $ 2,935
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block]	Three Months Ended March 31, 2019 2018 (unaudited) (unaudited) Income (loss) before Taxes Power Supplies $ (10 ) $ (56 ) Storage 151 646 Income before taxes $ 141 $ 590
Reconciliation of Assets from Segment to Consolidated [Table Text Block]	March 31, 2019 December 31, 2018 Total Assets ( ) Power Supplies Cash and cash equivalents $ 644 $ 381 Accounts receivable, net 874 1,048 Inventories, net 1,449 1,576 Property and equipment, net 43 47 Other assets 133 102 Total power supply assets 3,143 3,154 Storage Cash and cash equivalents $ 4,021 $ 4,400 Restricted cash 100 100 Accounts receivable, net 871 761 Inventories, net 1,326 1,321 Prepaid expenses and other current assets 391 168 Property and equipment, net 56 65 Other assets 159 29 Total storage assets 6,924 6,844 Total Assets $ 10,067 $ 9,998

Note 1 - Summary of Significa_2

Note 1 - Summary of Significant Accounting Policies (Details Textual)	3 Months Ended
	Mar. 31, 2019USD ($)	Dec. 31, 2018USD ($)
Contract with Customer, Liability, Total	$ 864,000	$ 863,000
Loss Contingency, Accrual, Current	$ 97,000	$ 100,000
Number of Operating Segments	2

Note 3 - Balance Sheet Detail_2

Note 3 - Balance Sheet Details (Details Textual) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Depreciation, Total	$ 13,000	$ 30,000

Note 3 - Balance Sheet Detail_3

Note 3 - Balance Sheet Details - Inventory (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Raw materials	$ 112	$ 136
Finished goods	2,663	2,761
Net inventory balance	$ 2,775	$ 2,897

Note 3 - Balance Sheet Detail_4

Note 3 - Balance Sheet Details - Property and Equipment, Net (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Property and equipment, gross	$ 1,244	$ 1,244
Less accumulated depreciation and amortization	(1,145)	(1,132)
Property and equipment, net	99	112
Leasehold Improvements [Member]
Property and equipment, gross	114	114
Furniture and Fixtures [Member]
Property and equipment, gross	286	286
Machinery and Equipment [Member]
Property and equipment, gross	$ 844	$ 844

Note 3 - Balance Sheet Detail_5

Note 3 - Balance Sheet Details - Other Accrued Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Accrued warranty	$ 364	$ 365
Accrued outside commissions	50	41
Accrued professional fees	97	100
Deferred rent		22
Other accrued liabilities	13	31
Total other accrued liabilities	$ 524	$ 559

Note 4 - Contingencies (Details

Note 4 - Contingencies (Details Textual)	3 Months Ended
	Mar. 31, 2019
Product Warranty Accrual, Power Supplies, Term	3 years
XLS and RLS Libraries [Member]
Advance Replacement Warranty Period	3 years
Q-Series Libraries [Member]
Advance Replacement Warranty Period	2 years

Note 4 - Contingencies - Produc

Note 4 - Contingencies - Product Warranty Liability (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Beginning balance	$ 365	$ 322
Cost of warranty claims	(9)	(15)
Accruals for product warranties	8	58
Ending balance	$ 364	$ 365

Note 5 - Net Earnings Per Sha_3

Note 5 - Net Earnings Per Share (Details Textual) - shares	3 Months Ended	12 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Share-based Payment Arrangement, Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	178,000	4,666

Note 5 - Net Earnings Per Sha_4

Note 5 - Net Earnings Per Share - Computation of Basic and Diluted Net Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Net income	$ 141	$ 590
Weighted average outstanding shares of common stock (b) (in shares)	1,971	2,048
Dilutive potential common shares from employee stock options (in shares)		53
Diluted (in shares)	1,971	2,101
Basic net income per share (a)/(b) (in dollars per share)	$ 0.07	$ 0.29
Diluted net income per share (a)/(c) (in dollars per share)	$ 0.07	$ 0.28

Note 6 - Stockholders' Equity (

Note 6 - Stockholders' Equity (Details Textual) - Stock Repurchase Program [Member] - USD ($)	3 Months Ended	4 Months Ended
	Mar. 31, 2019	Mar. 31, 2019	Dec. 05, 2018
Stock Repurchase Program, Authorized Amount			$ 2,400,000
Stock Repurchase Program, Number of Shares Authorized to be Repurchased			409,000
Stock Repurchased During Period, Shares	58,734	76,836

Note 7 - Stock Incentive Plan_3

Note 7 - Stock Incentive Plans and Share-based Compensation (Details Textual) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Share-based Payment Arrangement, Expense	$ 0	$ 0
Share-based Payment Arrangement, Expense, Tax Benefit	0	$ 0
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total	$ 0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance	178,000		178,000
Plan 2008 [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance	20,000
Plan 2017 [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	200,000

Note 7 - Stock Incentive Plan_4

Note 7 - Stock Incentive Plans and Share-based Compensation - Stock Option Activity (Details) - $ / shares	3 Months Ended	12 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Outstanding, shares (in shares)	178,000
Weighted-average exercise price per share, outstanding (in dollars per share)	$ 7.19
Weighted-average remaining contractual term, outstanding (Year)	7 years 186 days	8 years 229 days
Granted, shares (in shares)
Exercised, shares (in shares)
Forfeited, canceled or expired, shares (in shares)
Outstanding, shares (in shares)	178,000	178,000
Weighted-average exercise price per share, outstanding (in dollars per share)	$ 7.19	$ 7.19
Exercisable, shares (in shares)	178,000
Weighted-average exercise price per share, exercisable (in dollars per share)	$ 7.19
Weighted-average remaining contractual term, exercisable (Year)	7 years 186 days

Note 8 - Income Taxes (Details

Note 8 - Income Taxes (Details Textual) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Income Tax Expense (Benefit), Total	$ 0	$ 0

Note 9 - Significant Customer_3

Note 9 - Significant Customers, Concentration of Credit Risk, and Geographic Information (Details Textual) - Customer Concentration Risk [Member]	3 Months Ended		12 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Revenue Benchmark [Member]
Number of Major Customers Concentration Risk	2	2
Revenue Benchmark [Member] | Customer 1 [Member]
Concentration Risk, Percentage	12.70%	23.50%
Revenue Benchmark [Member] | Customer 2 [Member]
Concentration Risk, Percentage	10.10%	11.00%
Accounts Receivable [Member]
Concentration Risk, Percentage	19.00%		2.30%
Number of Major Customers Concentration Risk	2		2

Note 9 - Significant Customer_4

Note 9 - Significant Customers, Concentration of Credit Risk, and Geographic Information - Geographic Activity, Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Net revenues	$ 2,856	$ 2,935
Geographic Concentration Risk [Member] | Revenue Benchmark [Member]
Net revenues	$ 2,856	$ 2,935
Percentage of net revenues	100.00%	100.00%
North America [Member] | Geographic Concentration Risk [Member] | Revenue Benchmark [Member]
Net revenues	$ 1,919	$ 1,577
Percentage of net revenues	67.20%	53.80%
Europe [Member] | Geographic Concentration Risk [Member] | Revenue Benchmark [Member]
Net revenues	$ 580	$ 312
Percentage of net revenues	20.30%	10.60%
Asia Pacific [Member] | Geographic Concentration Risk [Member] | Revenue Benchmark [Member]
Net revenues	$ 334	$ 1,022
Percentage of net revenues	11.70%	34.80%
Other Geographic Areas [Member] | Geographic Concentration Risk [Member] | Revenue Benchmark [Member]
Net revenues	$ 23	$ 24
Percentage of net revenues	0.80%	0.80%

Note 10 - Commitments (Details

Note 10 - Commitments (Details Textual)	Jun. 01, 2019USD ($)ft²	Apr. 01, 2016USD ($)ft²	Dec. 15, 2014USD ($)ft²	Mar. 31, 2019USD ($)ft²	Mar. 31, 2018USD ($)	Dec. 31, 2018USD ($)
Operating Lease, Weighted Average Discount Rate, Percent				6.75%
Operating Lease, Impairment Loss				$ 0
Operating Lease, Liability, Current				229,000
Operating Lease, Liability, Noncurrent				152,000
Operating Lease, Right-of-Use Asset				$ 363,000
Operating Leases, Rent Expense, Net, Total					$ 38,000
Lease for Headquarters [Member] | Forecast [Member]
Area of Real Estate Property | ft²	9,910
Lessee, Operating Lease, Term of Contract	5 years 60 days
Operating Lease Monthly Rent	$ 9,910
Monthly Rent Step-up Percentage	3.00%
Simi Valley California [Member]
Area of Real Estate Property | ft²			15,160
Lessee, Operating Lease, Term of Contract			3 years
Operating Lease Monthly Rent			$ 11,000
Monthly Rent Step-up Percentage			3.00%
Lessee, Operating Lease, Renewal Term			3 years
Westlake Village, California [Member]
Area of Real Estate Property | ft²				5,400
Operating Lease Monthly Rent				$ 11,000
Monthly Rent Step-up Percentage				3.00%
Operating Leases, Monthly Sublease Rent				$ 12,000
Operating Leases, Sublease, Monthly Rent Step-up Percentage				3.00%
Lease in Singapore [Member]
Area of Real Estate Property | ft²		1,359
Lessee, Operating Lease, Term of Contract		2 years
Operating Lease Monthly Rent		$ 2,500

Note 10 - Commitments - Future

Note 10 - Commitments - Future Minimum Lease Payments (Details) $ in Thousands	Mar. 31, 2019USD ($)
Remainder of 2019, Minimum Lease Payment	$ 274
2020, Minimum Lease Payment	276
2021, Minimum Lease Payment	147
2022, Minimum Lease Payment	128
2023, Minimum Lease Payment	131
After, Minimum Lease Payment	78
Total undiscounted future non-cancelable minimum lease payments	1,034
Less: Imputed interest, Minimum Lease Payment	(127)
Present value of lease liabilities, Minimum Lease Payment	907
Remainder of 2019, Sublease Revenue	(113)
2020, Sublease Revenue	(12)
2021, Sublease Revenue
2022, Sublease Revenue
2023, Sublease Revenue
After, Sublease Revenue
Total undiscounted future non-cancelable minimum lease payments	(125)
Less: Imputed interest, Sublease Revenue
Present value of lease liabilities, Sublease Revenue	(125)
Remainder of 2019, Net Minimum Lease Payment	161
2020, Net Minimum Lease Payment	264
2021, Net Minimum Lease Payment	147
2022, Net Minimum Lease Payment	128
2023, Net Minimum Lease Payment	131
After, Net Minimum Lease Payment	78
Total undiscounted future non-cancelable minimum lease payments	909
Less: Imputed interest, Net Minimum Lease Payment	(127)
Present value of lease liabilities, Net Minimum Lease Payment	$ 782

Note 10 - Commitments - Other I

Note 10 - Commitments - Other Information Related to Operating Leases (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2019USD ($)
Weighted average remaining lease term in years (Year)	2 years 69 days
Weighted average discount rate	6.75%
Operating cash flows from operating leases	$ 74
Operating cash flows from finance leases
Financing cash flows from finance leases

Note 11 - Segment Information_2

Note 11 - Segment Information (Details Textual)	3 Months Ended
	Mar. 31, 2019
Number of Operating Segments	2

Note 11 - Segment Information -

Note 11 - Segment Information - Segment Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Revenue	$ 2,856	$ 2,935
Power Supplies [Member]
Revenue	1,370	1,315
Data Storage [Member]
Revenue	1,486	1,620
Data Storage [Member] | Product [Member]
Revenue	783	516
Data Storage [Member] | Service [Member]
Revenue	$ 703	$ 1,104

Note 11 - Segment Information_3

Note 11 - Segment Information - Segment Income (Loss) Before Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Income (loss) before taxes	$ 141	$ 590
Power Supplies [Member]
Income (loss) before taxes	(10)	(56)
Data Storage [Member]
Income (loss) before taxes	$ 151	$ 646

Note 11 - Segment Information_4

Note 11 - Segment Information - Segment Total Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Cash and cash equivalents	$ 4,665	$ 4,781
Accounts receivable, net	1,745	1,809
Inventories, net	2,775	2,897
Property and equipment, net	99	112
Other assets	132	119
Total Assets	10,067	9,998
Restricted cash	100	100
Prepaid expenses and other current assets	188	180
Power Supplies [Member]
Cash and cash equivalents	644	381
Accounts receivable, net	874	1,048
Inventories, net	1,449	1,576
Property and equipment, net	43	47
Other assets	133	102
Total Assets	3,143	3,154
Data Storage [Member]
Cash and cash equivalents	4,021	4,400
Accounts receivable, net	871	761
Inventories, net	1,326	1,321
Property and equipment, net	56	65
Other assets	159	29
Total Assets	6,924	6,844
Restricted cash	100	100
Prepaid expenses and other current assets	$ 391	$ 168

Note 12 - Related Party Trans_2

Note 12 - Related Party Transactions (Details Textual) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Interlink Electronics, Inc. [Member]
Due to Related Parties, Total	$ 17,000		$ 2,000
Interlink Electronics, Inc. [Member] | Administrative Services Provided to Related Party [Member]
Related Party Transaction, Amounts of Transaction	6,000	$ 4,000
Due from Related Parties, Total	2,000		2,000
Interlink Electronics, Inc. [Member] | Reimbursement of Expenses Paid by Company [Member]
Related Party Transaction, Amounts of Transaction	57,000	57,000
BKF Capital Group, Inc. [Member]
Related Party Transaction, Amounts of Transaction		$ 2,000
Due to Related Parties, Total	$ 0		$ 2,000

Note 13 - Subsequent Events (De

Note 13 - Subsequent Events (Details Textual) - Chief Executive Officer [Member] - Subsequent Event [Member]	Apr. 13, 2019USD ($)shares
Annual Base Salary | $	$ 200,000
Compensation Agreement, Percent of Base Salary Eligible for Bonus	50.00%
Restricted Stock Units (RSUs) [Member]
Compensation Agreement, Number of Shares Authorized	50,000
Restricted Stock Units (RSUs) [Member] | Share-based Payment Arrangement, Tranche One [Member]
Compensation Agreement, Number of Shares Authorized	25,000
Restricted Stock Units (RSUs) [Member] | Share-based Payment Arrangement, Tranche Two [Member]
Compensation Agreement, Number of Shares Authorized	25,000