Qualstar (QBAK) 10-K 19 Mar 20 2019 FY Annual report Financial data

Document And Entity Information

Document And Entity Information - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Mar. 09, 2020	Jun. 28, 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 Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Entity Emerging Growth Company	false
Entity Small Business	true
Entity Interactive Data Current	Yes
Entity Common Stock, Shares Outstanding (in shares)		1,925,025
Entity Public Float			$ 5.8
Entity Shell Company	false
Document Type	10-K
Document Period End Date	Dec. 31, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	FY
Amendment Flag	false
Title of 12(b) Security	Common Stock

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 3,863,000	$ 4,781,000
Restricted cash	100,000	100,000
Accounts receivable, net	2,366,000	1,809,000
Inventories, net	2,540,000	2,897,000
Prepaid expenses and other current assets	211,000	180,000
Total current assets	9,080,000	9,767,000
Property and equipment, net	122,000	112,000
Right-of-use	676,000
Other assets	160,000	119,000
Total assets	10,038,000	9,998,000
Current liabilities:
Accounts payable	1,029,000	1,023,000
Accrued payroll and related liabilities	192,000	185,000
Deferred service revenue	702,000	736,000
Lease liabilities, short term	252,000
Other accrued liabilities	368,000	559,000
Total current liabilities	2,543,000	2,503,000
Other long-term liabilities	52,000	40,000
Lease liabilities, long term	453,000
Deferred service revenue, long term	247,000	127,000
Total long-term liabilities	752,000	167,000
Total liabilities	3,295,000	2,670,000
Commitments and contingencies (Note 10)
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; 1,925,025 and 2,030,017 shares issued and outstanding as of December 31, 2019 and 2018, respectively	18,848,000	19,426,000
Accumulated deficit	(12,105,000)	(12,098,000)
Total shareholders’ equity	6,743,000	7,328,000
Total liabilities and shareholders’ equity	$ 10,038,000	$ 9,998,000

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parentheticals) - $ / shares $ / shares in Thousands	Dec. 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)	1,925,025	2,030,017
Common stock, outstanding (in shares)	1,925,025	2,030,017

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Net revenues	$ 13,439	$ 12,229
Cost of goods sold	9,916	7,184
Gross profit	3,523	5,045
Operating expenses:
Engineering	588	502
Sales and marketing	1,397	1,337
General and administrative	1,608	1,716
Total operating expenses	3,593	3,555
Income (loss) from operations	(70)	1,490
Other income	45
Income (loss) before income taxes	(25)	1,490
Provision (benefit) for income taxes	(18)	4
Net income (loss)	(7)	1,486
Comprehensive income (loss)	$ (7)	$ 1,486
Net income (loss) per share:
Basic (in dollars per share)	$ 0	$ 0.73
Diluted (in dollars per share)	$ 0	$ 0.72
Shares used to compute net income (loss) per share:
Basic (in shares)	1,925	2,030
Diluted (in shares)	1,925	2,057

Consolidated Statements of Shar

Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands	Common Stock [Member]	AOCI Attributable to Parent [Member]	Retained Earnings [Member]	Total
Balances (in shares) at Dec. 31, 2017	2,043,000
Balances at Dec. 31, 2017	$ 19,480		$ (13,584)	$ 5,896
Exercise of stock options (in shares)	5,000			5,500
Exercise of stock options	$ 39			$ 39
Stock repurchase (in shares)	(18,000)
Stock repurchase	$ (93)			(93)
Share-based compensation (in shares)
Share-based compensation
Net income (loss)			1,486	1,486
Balances (in shares) at Dec. 31, 2018	2,030,000
Balances at Dec. 31, 2018	$ 19,426		(12,098)	$ 7,328
Exercise of stock options (in shares)
Exercise of stock options
Stock repurchase (in shares)	(130,000)
Stock repurchase	$ (717)			(717)
Share-based compensation (in shares)	25,000
Share-based compensation	$ 139			139
Net income (loss)			(7)	(7)
Balances (in shares) at Dec. 31, 2019	1,925,000
Balances at Dec. 31, 2019	$ 18,848		$ (12,105)	$ 6,743

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Cash flows from operating activities:
Net income (loss)	$ (7)	$ 1,486
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	45	86
Loss on disposal of assets	31
Provision for (recovery of) doubtful accounts, net	(16)	3
Provision for inventory reserve	418	362
Share-based compensation	139
Amortization of right of use	(280)
Changes in assets and liabilities:
Accounts receivable	(541)	(10)
Inventories	(61)	(1,695)
Prepaid expenses and other assets	(73)	(68)
Accounts payable	6	(42)
Accrued payroll and related liabilities	7	12
Deferred service revenue	86	(64)
Lease liabilities	287
Other accrued liabilities	(157)	93
Net cash provided by (used in) operating activities	(116)	163
Cash flows from investing activities:
Purchases of equipment	(85)	(26)
Net cash provided by (used in) investing activities	(85)	(26)
Cash flow from financing activities:
Purchase of common stock	(717)	(93)
Proceeds from the exercise of stock options		39
Net cash provided by (used in) financing activities	(717)	(54)
Net increase (decrease) in cash, restricted cash and cash equivalents	(918)	83
Cash, restricted cash and cash equivalents, beginning of period	4,881	4,798
Cash, restricted cash and cash equivalents, end of period	3,963	4,881
Supplemental disclosure of cash flow information:
Income taxes paid	$ 11	$ 32

Note 1 - Summary of Significant

Note 1 - Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2019
Notes to Financial Statements
Significant Accounting Policies [Text Block]	Note 1 Significant Accounting Policies Business Qualstar Corporation and its Subsidiaries (“Qualstar”, the “Company”, “we”, “us” or “our”) is organized into two N2Power N2Power Qualstar Corporation was incorporated in California in 1984 four N2Power, 2017 2014 two July 4, 2018, September 5, 2018, We sell our products globally through authorized resellers, distributers, and directly to OEMs. N2Power The consolidated financial statements include our accounts and the accounts of our wholly-owned subsidiaries, N2Power, Accounting Principles The consolidated financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Estimates and Assumptions Preparing financial statements in accordance with GAAP 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, warranty costs, share-based compensation forfeiture rates, the tax consequences of events that have been recognized in our consolidated financial statements or tax returns and determining when investment impairments are other-than-temporary. Actual results and outcomes may 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 At December 31, 2019, $949,000 no December 31, 2018, $863,000 no Cash and Cash Equivalents Qualstar classifies as cash equivalents only cash and those investments that are highly liquid, interest-earning investments with original maturities of three Restricted Cash At December 31, 2019 2018, $100,000 Concentration of Credit Risk, Other Concentration Risks and Significant Customers Qualstar sells its products primarily through value added resellers located worldwide. Ongoing credit evaluations of customers’ financial condition are performed by Qualstar, and generally, collateral is not 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. Sales outside North America represented approximately 58.8% twelve December 31, 2019 43.1% twelve December 31, 2018. Revenues from Qualstar’s largest customer totaled approximately 23.5% 12.6% twelve December 31, 2019 2018, December 31, 2019, 23.4% December 31, 2018, 2.0% Suppliers The primary suppliers of our power supplies segment, N2Power, no not Allowance for Doubtful Accounts The allowance for doubtful accounts reflects our best estimate of probable losses inherent in the accounts receivable balance. We determine the allowance based on known troubled accounts, historical experience, and other currently available evidence. Activity in the allowance for doubtful accounts was as follows (in thousands): Description Balance at Beginning of Period Charged to Costs and Expenses Charged to Other Accounts Deductions (1) Balance at End of Period Twelve months ended December 31, 2019 $ 57 $ — $ — $ (17 ) $ 40 Twelve months ended December 31, 2018 $ 54 $ 8 $ — $ (5 ) $ 57 ( 1 Uncollectible accounts written off, net of recoveries. Inventories , net Inventories are stated at the lower of cost or net realizable value. Cost includes materials, labor, and manufacturing overhead related to the purchase and production of inventories. We regularly review inventory quantities on hand, future purchase commitments with our suppliers, and the estimated utility of our inventory. If our review indicates a reduction in utility below carrying value, we reduce our inventory to a new cost basis. Property and Equipment , net Property and equipment are recorded at cost less accumulated depreciation and amortization. Depreciation expense is computed using the straight-line method. Leasehold improvements are amortized over the shorter of the estimated useful life of the asset or the term of the lease. Estimated useful lives are as follows: Machinery and equipment (in years) 5 - 7 Furniture and fixtures (in years) 5 - 7 Leasehold Improvements (in years) 3 - 5 Computer equipment (in years) 3 - 5 Expenditures for normal maintenance and repairs are charged to expense as incurred, and improvements are capitalized. Upon the sale or retirement of property or equipment, the asset cost and related accumulated depreciation are removed from the respective accounts and any gain or loss is included in the results of operations. Long-Lived Assets Qualstar reviews the impairment of long-lived assets whenever events or changes in circumstances indicate the carrying amount of any asset may not No Shipping and Handling Costs Qualstar records all customer charges for outbound shipping and handling to freight revenue. All inbound and outbound shipping and fulfillment costs are classified as costs of goods sold. Warranty Obligations 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): December 31, 201 9 201 8 Beginning balance $ 365 $ 322 Cost of warranty claims (21 ) (15 ) Accruals for product warranties (54 ) 58 Ending balance $ 290 $ 365 Engineering All engineering costs are charged to expense as incurred. These costs consist primarily of engineering salaries, benefits, outside consultant fees, purchased parts and supplies directly involved in the design and development of new products, facilities and other internal costs. Advertising Advertising and promotion expenses include costs associated with direct and indirect marketing, trade shows and public relations. Qualstar expenses all costs of advertising and promotion as incurred. Advertising and promotion expenses for the years ended December 31, 2019 2018 $82,000 $92,000, Fair Value Measurements We determine fair value measurements based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, we follow the following fair value hierarchy that distinguishes between ( 1 2 Level 1: Level 2: Level 3: no Our assessment of the significance of a particular input to the fair value measurement requires judgment and may The following table presents our cash and cash equivalents and restricted cash measured at fair value on a recurring basis at December 31, 2019 2018 December 31, 201 9 Adjusted Cost Unrealized Gains Unrealized Losses Fair Value Cash & Cash Equivalents Level 1: Cash $ 3,863 $ - $ - $ 3,863 $ 3,863 Restricted Cash 100 - - 100 100 Total $ 3,963 $ - $ - $ 3,963 $ 3,963 December 31, 201 8 Adjusted Cost Unrealized Gains Unrealized Losses Fair Value Cash & Cash Equivalents Level 1: Cash $ 4,781 $ - $ - $ 4,781 $ 4,781 Restricted Cash 100 - - 100 100 Total $ 4,881 $ - $ - $ 4,881 $ 4,881 Share-Based Compensation Share-based compensation cost is measured at the grant date based on fair value of the award and is recognized as expense over the applicable vesting period (vesting can be immediate or over a period of four Income Taxes Income taxes are accounted for using the liability method. Under this method, deferred tax liabilities and assets are recognized for the expected future tax consequences of temporary differences between the financial statement and tax bases of assets and liabilities, and for the expected future tax benefit to be derived from tax credits and loss carry forwards. Current income tax expense or benefit represents the amount of income taxes expected to be payable or refundable for the current year. A valuation allowance is established when, in the opinion of management, it is more likely than not not 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 during the period. Diluted net income per share is computed by dividing net income by the weighted average number of diluted common shares, which is inclusive of common stock equivalents from unexercised stock options. Unexercised stock options are considered to be common stock equivalents if, using the treasury stock method, they are determined to be dilutive. Recent Accounting Guidance Recent accounting guidance not In December 2019, 2019 12, Income Taxes January 1, 2021, 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 2 - Balance Sheet Details

Note 2 - Balance Sheet Details	12 Months Ended
	Dec. 31, 2019
Notes to Financial Statements
Supplemental Balance Sheet Disclosures [Text Block]	Note 2 – Balance Sheet Details Inventories , net Inventories consist of the following, in thousands: December 31 , 201 9 December 31, 201 8 Raw materials $ 199 $ 136 Finished goods 2,341 2,761 Inventories, net $ 2,540 $ 2,897 Property and Equipment , net The components of property and equipment are as follows, in thousands: December 31 , 201 9 December 31, 201 8 Leasehold improvements $ 163 $ 114 Furniture and fixtures 268 286 Machinery and equipment 609 844 Total property and equipment 1,040 1,244 Less accumulated depreciation and amortization (918 ) (1,132 ) Property and equipment, net $ 122 $ 112 Depreciation and amortization expense for the year ended December 31, 2019 2018 $45,000 $85,000, Accrued Payroll and Related Liabilities The components of accrued payroll and related liabilities are as follows, in thousands: December 31 , 201 9 December 31, 201 8 Accrued salaries and payroll taxes $ 69 $ 66 Accrued vacation 123 119 Accrued bonuses - - Total accrued payroll and related liabilities $ 192 $ 185 Other Accrued Liabilities The components of other accrued liabilities are as follows, in thousands: December 31 , 201 9 December 31, 201 8 Accrued warranty $ 290 $ 365 Accrued commissions 55 41 Accrued contingent legal fees - 100 Accrued deferred rent - 22 Other accrued liabilities 23 31 Total other accrued liabilities $ 368 $ 559

Note 3 - Income Taxes

Note 3 - Income Taxes	12 Months Ended
	Dec. 31, 2019
Notes to Financial Statements
Income Tax Disclosure [Text Block]	Note 3 – Income Taxes The provision for (benefit from) income taxes is comprised of the following (in thousands): December 31 , 201 9 December 31, 201 8 Current: Federal (Net of a 2018 net operating loss benefit of $288) $ — $ — State (Net of a 2018 and 2019 net operating loss benefit of $35 and $97, respectively) 7 3 Foreign 5 1 Provision for income taxes $ 12 $ 4 Deferred: Federal — — State (30 ) — Deferred income tax $ (30 ) $ — Net income tax expense $ (18 ) $ 4 The following is a reconciliation of the statutory federal income tax rate to Qualstar’s effective income tax rate: Twelve Months Ended December 31, 201 9 201 8 Statutory federal income tax benefit 21.0 % 21.0 % State income taxes, net of federal income tax benefit (7.9 ) 6.6 Foreign income taxes, net of federal income tax benefit (13.2 ) — Deferred tax adjustment – NOL 42.6 — Valuation allowance 8.2 (26.6 ) Other 0.2 (0.6 ) Effective income tax rate 50.9 % 0.4 % The tax effect of temporary differences resulted in deferred income tax assets (liabilities) as follows (in thousands): December 31 , 201 9 December 31, 201 8 Deferred tax assets: Net operating loss carry forwards $ 7,734 $ 7,675 Engineering credit carry forwards 1,920 1,919 Inventory reserves 503 558 Capital loss and other credit carry forwards 6 — Allowance for bad debts and returns 13 16 Stock compensation 330 287 Capitalized inventory costs, stock compensation and other accuals 389 233 Total gross deferred tax assets 10,895 10,688 Less valuation allowance on deferred tax assets (10,686 ) (10,688 ) Net deferred tax assets 209 — Deferred tax liabilities: Depreciation and other — — Right to use property (179 ) — Total deferred tax liabilities (179 ) — Net deferred taxes $ 30 $ — On December 22, 2017, 1 21% January 1, 2018, January 1, 2018, 2017 2017 $12,000, January 1, 2018, 2017 not 2017. As previously indicated, the Company records a valuation allowance against its net deferred income tax assets in accordance with ASC 740 not not December 31, 2019 2018, 2018 2017 2017 2017 2018, 2019, The Company had net operating loss carry-forwards for federal income tax purposes of approximately $30.7 December 31, 2019 $30.4 December 31, 2018. $19.0 December 31, 2019 $19.7 December 31, 2018. $2.7 December 31, 2019 $2.7 December 31, 2018. If not 2026, 2024. not December 31, 2019 2020. no For U.S. purposes, the Company has completed its evaluation, as of December 31, 2017, 382 383, 382 383 December 31, 2017, not 382 383. The following table summarizes the activity related to the Company’s uncertain tax positions (in thousands): December 31 , 201 9 December 31, 201 8 Beginning Balance $ 29 $ 29 Increases related to tax positions taken in current year — — Increases related to tax positions taken in prior year — — Decreases due to lapse of statute of limitations — — Related interest and penalties, net of federal tax benefit — — Balance at December 31 $ 29 $ 29 The deferred tax asset amounts related to NOL and credit carryforwards have been reduced by approximately $527,000 no The Company’s policy is to include interest and penalties on uncertain tax positions in income tax expense, but they are not December 31, 2019. December 31, 2016 December 31, 2015 December 31, 2017, no not December 31, 2019. December 31, 2019, not no

Note 4 - Preferred Stock

Note 4 - Preferred Stock	12 Months Ended
	Dec. 31, 2019
Notes to Financial Statements
Preferred Stock [Text Block]	Note 4 – Preferred Stock Qualstar’s Articles of Incorporation allow for the Board of Directors to issue up to 5,000,000 December 31, 2019 2018, no

Note 5 - Stock Based Compensati

Note 5 - Stock Based Compensation	12 Months Ended
	Dec. 31, 2019
Notes to Financial Statements
Share-based Payment Arrangement [Text Block]	Note 5 –Stock Based Compensation The Company granted to Steven N. Bronson, the Company’s President and Chief Executive Officer, 50,000 2017 April 13, 2019. 25,000 50,000 25,000 December 18, 2019. $139,000 twelve December 31, 2019. No twelve December 31, 2018. No Stock Option Plan The Company has two Qualstar adopted the 2008 “2008 may 2008 2018 no may 3,333 2008 The 2017 “2017 2017 300,000 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. No December 31, 2019 2018. December 31, 2017. Fiscal Year Ended December 31, 2017 Expected lives, in years 5.0 Estimated volatility 36.89% Dividend yield — Risk-free interest rate 1.92% Weighted average fair value on grant date $2.50 The following table summarizes all stock option activity: Options Shares Weighted Average Exercise Price per Share Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value Outstanding at December 31, 2017 188,033 $ 7.38 8.63 — Granted — — — — Exercised (5,500 ) 7.08 — — Forfeited, canceled or expired (4,533 ) 15.23 — — Outstanding at December 31, 2018 178,000 7.19 8.63 — Granted — — — — Exercised — — — — Forfeited, canceled or expired (16,667 ) 7.38 — — Outstanding at December 31, 2019 161,333 $ 7.17 7.49 — Exercisable at December 31, 2019 161,333 $ 7.17 7.49 — At December 31, 2019 2018, no No December 31, 2019 2018. Restricted Stock Units On October 29, 2019, 50,000 2017 April 13, 2019. December 31, 2019 December 31, 2020, 25,000 25,000 December 18, 2019.

Note 6 - Stockholders' Equity

Note 6 - Stockholders' Equity	12 Months Ended
	Dec. 31, 2019
Notes to Financial Statements
Stockholders' Equity Note Disclosure [Text Block]	Note 6 – Stockholders’ Equity On December 5, 2018, $2,400,000 not 409,000. December 31, 2019 2018, 18,102 129,991 148,093 December 5, 2019.

Note 7 - Net Earnings Per Share

Note 7 - Net Earnings Per Share	12 Months Ended
	Dec. 31, 2019
Notes to Financial Statements
Earnings Per Share [Text Block]	Note 7 – 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. December 31, 201 9 December 31, 201 8 In thousands (except per share amounts): Net income (a) $ (7 ) $ 1,486 Weighted average outstanding shares of common stock (b) 1,925 2,030 Dilutive potential common shares from employee stock options - 27 Common stock and common stock equivalents (c) 1,925 2,057 Income per share: Basic net income per share (a)/(b) $ 0.00 $ 0.73 Diluted net income per share (a)/(c) $ 0.00 $ 0.72 For the twelve December 31, 2019 2018, 161,333 4,666

Note 8 - Commitments

Note 8 - Commitments	12 Months Ended
	Dec. 31, 2019
Notes to Financial Statements
Commitments Disclosure [Text Block]	Note 8 – Commitments Lease Agreements The Company has entered into a new lease in Camarillo, California for its corporate headquarters beginning June 1, 2019. 9,910 5 two July 31, 2024. $9,910 3% 12, Qualstar leases a 15,160 three December 15, 2014 three February 28, 2021. $11,000 3% May 22, 2019, July 15, 2019 February 28, 2021 ( $12,886 nine 9% Qualstar also leases approximately 5,400 January 31, 2020, not $11,000 3% March 21, 2016, $12,000 3% Effective April 1, 2016, two 1,359 $2,500 March 31, 2020. not Such leases do not not The rate implicit in each lease is not December 31, 2019 4.33%, 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, December 31, 2019, not We monitor for events or changes in circumstances that require a reassessment of one At December 31, 2019, $252,000 $453,000, $676,000. 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 2020 $ 277 $ (167 ) $ 110 2021 148 (26 ) 122 2022 129 - 129 2023 133 - 133 2024 79 - 79 After - - - Total undiscounted future non-cancelable minimum lease payments 766 (193 ) 573 Less: Imputed interest (61 ) - (61 ) Present value of lease liabilities $ 705 $ (193 ) $ 512 In the Company's financial statements for periods prior to January 1, 2019, 840, December 31, 2019 2018 $164,000 $151,000, Other information related to our operating leases is as follows: Year Ended December 31 , 2019 Weighted average remaining lease term in years 1.52 Weighted average discount rate 4.33 % Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 348 Operating cash flows from finance leases - Financing cash flows from finance leases -

Note 9 - Segment Information

Note 9 - Segment Information	12 Months Ended
	Dec. 31, 2019
Notes to Financial Statements
Segment Reporting Disclosure [Text Block]	Note 9 – Segment Information Based on the provisions of ASC 280, two Twelve Months Ended December 31, 201 9 201 8 Revenue Power Supplies $ 5,079 $ 5,927 Data Storage: Product 4,194 3,111 Service 4,166 3,191 Total Data Storage $ 8,360 $ 6,302 Total Revenue $ 13,439 $ 12,229 Twelve Months Ended December 31, 201 9 201 8 Income (loss) before Taxes Power Supplies $ (866 ) $ (153 ) Data Storage 841 1,643 Total Income (Loss) Before Income Taxes $ (25 ) $ 1,490 December 31 , 201 9 December 31, 201 8 Total Assets Power Supplies Cash and cash equivalents $ 527 $ 381 Accounts receivable, net 840 1,048 Inventories, net 872 1,576 Property and equipment 11 47 Other assets 107 102 2,357 3,154 Data Storage Cash and cash equivalents 3,336 4,400 Restricted cash 100 100 Accounts receivable, net 1,526 761 Inventories, net 1,668 1,321 Property and equipment 111 65 Right of use 676 - Other assets 264 197 7,681 6,844 Total Assets $ 10,038 $ 9,998 In its operation of the business, management reviews certain financial information, including segmented internal profit and loss statements prepared on a basis consistent with GAAP. Our two two twelve December 31, 2019. twelve December 31, 2019 2018. N2Power, The types of products and services provided by each segment are summarized below: Power Supplies Data Storage Geographic Information Information regarding revenues attributable to Qualstar’s primary geographic operating regions is as follows, in thousands: Twelve Months Ended December 31, 201 9 201 8 Total Revenue: North America $ 7,900 $ 6,957 Europe 1,696 1,849 Asia Pacific 3,787 3,276 Other 56 147 $ 13,439 $ 12,229 Power Supply Revenue: North America 3,507 3,356 Europe 1,118 1,220 Asia Pacific 454 1,351 Other — — $ 5,079 $ 5,927 Data Storage Revenue: North America 4,393 3,601 Europe 578 629 Asia Pacific 3,333 1,925 Other 56 147 $ 8,360 $ 6,302 The geographic classification of revenues is based upon the location to which the product is shipped. Qualstar does not

Note 10 - Legal Proceedings

Note 10 - Legal Proceedings	12 Months Ended
	Dec. 31, 2019
Notes to Financial Statements
Legal Matters and Contingencies [Text Block]	Note 1 0 – Legal Proceedings Qualstar 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 may No December 31, 2019. December 31, 2018, $100,000

Note 11 - Benefit Plans

Note 11 - Benefit Plans	12 Months Ended
	Dec. 31, 2019
Notes to Financial Statements
Compensation and Employee Benefit Plans [Text Block]	Note 1 1 – Benefit Plans Qualstar has a voluntary deferred compensation plan (the “Plan”) qualifying for treatment under Internal Revenue Code Section 401 three may 100% not may 25% first 6% August 2009.

Note 12 - Related Party Transac

Note 12 - Related Party Transactions	12 Months Ended
	Dec. 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 Camarillo facility and, previously 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 twelve December 31, 2019 2018, $39,000 $17,000, $5,000 $2,000 December 31, 2019 December 31, 2018, The Company reimburses Interlink for expenses paid on the Company’s behalf. On December 1, 2017, $40,000 $264,000 $213,000 twelve December 31, 2019 2018, $25,000 $3,000, December 31, 2019 December 31, 2018, 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 $1,000 twelve December 31, 2019 2018, No December 31, 2019 2018.

Note 13 - Subsequent Events

Note 13 - Subsequent Events	12 Months Ended
	Dec. 31, 2019
Notes to Financial Statements
Subsequent Events [Text Block]	Note 1 3 – Subsequent Events Our first 2020 19.

Significant Accounting Policies

Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2019
Accounting Policies [Abstract]
Basis of Accounting, Policy [Policy Text Block]	Accounting Principles The consolidated financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”).
Use of Estimates, Policy [Policy Text Block]	Estimates and Assumptions Preparing financial statements in accordance with GAAP 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, warranty costs, share-based compensation forfeiture rates, the tax consequences of events that have been recognized in our consolidated financial statements or tax returns and determining when investment impairments are other-than-temporary. Actual results and outcomes may
Revenue from Contract with Customer [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 At December 31, 2019, $949,000 no December 31, 2018, $863,000 no
Cash and Cash Equivalents, Unrestricted Cash and Cash Equivalents, Policy [Policy Text Block]	Cash and Cash Equivalents Qualstar classifies as cash equivalents only cash and those investments that are highly liquid, interest-earning investments with original maturities of three
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block]	Restricted Cash At December 31, 2019 2018, $100,000
Concentration Risk, Credit Risk, Policy [Policy Text Block]	Concentration of Credit Risk, Other Concentration Risks and Significant Customers Qualstar sells its products primarily through value added resellers located worldwide. Ongoing credit evaluations of customers’ financial condition are performed by Qualstar, and generally, collateral is not 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. Sales outside North America represented approximately 58.8% twelve December 31, 2019 43.1% twelve December 31, 2018. Revenues from Qualstar’s largest customer totaled approximately 23.5% 12.6% twelve December 31, 2019 2018, December 31, 2019, 23.4% December 31, 2018, 2.0%
Suppliers, Policy [Policy Text Block]	Suppliers The primary suppliers of our power supplies segment, N2Power, no not
Receivable [Policy Text Block]	Allowance for Doubtful Accounts The allowance for doubtful accounts reflects our best estimate of probable losses inherent in the accounts receivable balance. We determine the allowance based on known troubled accounts, historical experience, and other currently available evidence. Activity in the allowance for doubtful accounts was as follows (in thousands): Description Balance at Beginning of Period Charged to Costs and Expenses Charged to Other Accounts Deductions (1) Balance at End of Period Twelve months ended December 31, 2019 $ 57 $ — $ — $ (17 ) $ 40 Twelve months ended December 31, 2018 $ 54 $ 8 $ — $ (5 ) $ 57 ( 1 Uncollectible accounts written off, net of recoveries.
Inventory, Policy [Policy Text Block]	Inventories , net Inventories are stated at the lower of cost or net realizable value. Cost includes materials, labor, and manufacturing overhead related to the purchase and production of inventories. We regularly review inventory quantities on hand, future purchase commitments with our suppliers, and the estimated utility of our inventory. If our review indicates a reduction in utility below carrying value, we reduce our inventory to a new cost basis.
Property, Plant and Equipment, Policy [Policy Text Block]	Property and Equipment , net Property and equipment are recorded at cost less accumulated depreciation and amortization. Depreciation expense is computed using the straight-line method. Leasehold improvements are amortized over the shorter of the estimated useful life of the asset or the term of the lease. Estimated useful lives are as follows: Machinery and equipment (in years) 5 - 7 Furniture and fixtures (in years) 5 - 7 Leasehold Improvements (in years) 3 - 5 Computer equipment (in years) 3 - 5 Expenditures for normal maintenance and repairs are charged to expense as incurred, and improvements are capitalized. Upon the sale or retirement of property or equipment, the asset cost and related accumulated depreciation are removed from the respective accounts and any gain or loss is included in the results of operations.
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block]	Long-Lived Assets Qualstar reviews the impairment of long-lived assets whenever events or changes in circumstances indicate the carrying amount of any asset may not No
Cost of Goods and Service [Policy Text Block]	Shipping and Handling Costs Qualstar records all customer charges for outbound shipping and handling to freight revenue. All inbound and outbound shipping and fulfillment costs are classified as costs of goods sold.
Standard Product Warranty, Policy [Policy Text Block]	Warranty Obligations 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): December 31, 201 9 201 8 Beginning balance $ 365 $ 322 Cost of warranty claims (21 ) (15 ) Accruals for product warranties (54 ) 58 Ending balance $ 290 $ 365
Research, Development, and Computer Software, Policy [Policy Text Block]	Engineering All engineering costs are charged to expense as incurred. These costs consist primarily of engineering salaries, benefits, outside consultant fees, purchased parts and supplies directly involved in the design and development of new products, facilities and other internal costs.
Advertising Cost [Policy Text Block]	Advertising Advertising and promotion expenses include costs associated with direct and indirect marketing, trade shows and public relations. Qualstar expenses all costs of advertising and promotion as incurred. Advertising and promotion expenses for the years ended December 31, 2019 2018 $82,000 $92,000,
Fair Value of Financial Instruments, Policy [Policy Text Block]	Fair Value Measurements We determine fair value measurements based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, we follow the following fair value hierarchy that distinguishes between ( 1 2 Level 1: Level 2: Level 3: no Our assessment of the significance of a particular input to the fair value measurement requires judgment and may The following table presents our cash and cash equivalents and restricted cash measured at fair value on a recurring basis at December 31, 2019 2018 December 31, 201 9 Adjusted Cost Unrealized Gains Unrealized Losses Fair Value Cash & Cash Equivalents Level 1: Cash $ 3,863 $ - $ - $ 3,863 $ 3,863 Restricted Cash 100 - - 100 100 Total $ 3,963 $ - $ - $ 3,963 $ 3,963 December 31, 201 8 Adjusted Cost Unrealized Gains Unrealized Losses Fair Value Cash & Cash Equivalents Level 1: Cash $ 4,781 $ - $ - $ 4,781 $ 4,781 Restricted Cash 100 - - 100 100 Total $ 4,881 $ - $ - $ 4,881 $ 4,881
Share-based Payment Arrangement [Policy Text Block]	Share-Based Compensation Share-based compensation cost is measured at the grant date based on fair value of the award and is recognized as expense over the applicable vesting period (vesting can be immediate or over a period of four
Income Tax, Policy [Policy Text Block]	Income Taxes Income taxes are accounted for using the liability method. Under this method, deferred tax liabilities and assets are recognized for the expected future tax consequences of temporary differences between the financial statement and tax bases of assets and liabilities, and for the expected future tax benefit to be derived from tax credits and loss carry forwards. Current income tax expense or benefit represents the amount of income taxes expected to be payable or refundable for the current year. A valuation allowance is established when, in the opinion of management, it is more likely than not not
Earnings Per Share, Policy [Policy Text Block]	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 during the period. Diluted net income per share is computed by dividing net income by the weighted average number of diluted common shares, which is inclusive of common stock equivalents from unexercised stock options. Unexercised stock options are considered to be common stock equivalents if, using the treasury stock method, they are determined to be dilutive.
New Accounting Pronouncements, Policy [Policy Text Block]	Recent Accounting Guidance Recent accounting guidance not In December 2019, 2019 12, Income Taxes January 1, 2021, 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 1 - Summary of Significa_2

Note 1 - Summary of Significant Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2019
Notes Tables
Summary of Valuation Allowance [Table Text Block]	Description Balance at Beginning of Period Charged to Costs and Expenses Charged to Other Accounts Deductions (1) Balance at End of Period Twelve months ended December 31, 2019 $ 57 $ — $ — $ (17 ) $ 40 Twelve months ended December 31, 2018 $ 54 $ 8 $ — $ (5 ) $ 57
Estimated Lives of Property, Plant and Equipment [Table Text Block]	Machinery and equipment (in years) 5 - 7 Furniture and fixtures (in years) 5 - 7 Leasehold Improvements (in years) 3 - 5 Computer equipment (in years) 3 - 5
Schedule of Product Warranty Liability [Table Text Block]	December 31, 201 9 201 8 Beginning balance $ 365 $ 322 Cost of warranty claims (21 ) (15 ) Accruals for product warranties (54 ) 58 Ending balance $ 290 $ 365
Fair Value, Assets Measured on Recurring Basis [Table Text Block]	December 31, 201 9 Adjusted Cost Unrealized Gains Unrealized Losses Fair Value Cash & Cash Equivalents Level 1: Cash $ 3,863 $ - $ - $ 3,863 $ 3,863 Restricted Cash 100 - - 100 100 Total $ 3,963 $ - $ - $ 3,963 $ 3,963 December 31, 201 8 Adjusted Cost Unrealized Gains Unrealized Losses Fair Value Cash & Cash Equivalents Level 1: Cash $ 4,781 $ - $ - $ 4,781 $ 4,781 Restricted Cash 100 - - 100 100 Total $ 4,881 $ - $ - $ 4,881 $ 4,881

Note 2 - Balance Sheet Details

Note 2 - Balance Sheet Details (Tables)	12 Months Ended
	Dec. 31, 2019
Notes Tables
Schedule of Inventory, Current [Table Text Block]	December 31 , 201 9 December 31, 201 8 Raw materials $ 199 $ 136 Finished goods 2,341 2,761 Inventories, net $ 2,540 $ 2,897
Property, Plant and Equipment [Table Text Block]	December 31 , 201 9 December 31, 201 8 Leasehold improvements $ 163 $ 114 Furniture and fixtures 268 286 Machinery and equipment 609 844 Total property and equipment 1,040 1,244 Less accumulated depreciation and amortization (918 ) (1,132 ) Property and equipment, net $ 122 $ 112
Schedule of Accrued Liabilities [Table Text Block]	December 31 , 201 9 December 31, 201 8 Accrued salaries and payroll taxes $ 69 $ 66 Accrued vacation 123 119 Accrued bonuses - - Total accrued payroll and related liabilities $ 192 $ 185
Schedule of Other Accrued Liabilities [Table Text Block]	December 31 , 201 9 December 31, 201 8 Accrued warranty $ 290 $ 365 Accrued commissions 55 41 Accrued contingent legal fees - 100 Accrued deferred rent - 22 Other accrued liabilities 23 31 Total other accrued liabilities $ 368 $ 559

Note 3 - Income Taxes (Tables)

Note 3 - Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2019
Notes Tables
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]	December 31 , 201 9 December 31, 201 8 Current: Federal (Net of a 2018 net operating loss benefit of $288) $ — $ — State (Net of a 2018 and 2019 net operating loss benefit of $35 and $97, respectively) 7 3 Foreign 5 1 Provision for income taxes $ 12 $ 4 Deferred: Federal — — State (30 ) — Deferred income tax $ (30 ) $ — Net income tax expense $ (18 ) $ 4
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]	Twelve Months Ended December 31, 201 9 201 8 Statutory federal income tax benefit 21.0 % 21.0 % State income taxes, net of federal income tax benefit (7.9 ) 6.6 Foreign income taxes, net of federal income tax benefit (13.2 ) — Deferred tax adjustment – NOL 42.6 — Valuation allowance 8.2 (26.6 ) Other 0.2 (0.6 ) Effective income tax rate 50.9 % 0.4 %
Schedule of Deferred Tax Assets and Liabilities [Table Text Block]	December 31 , 201 9 December 31, 201 8 Deferred tax assets: Net operating loss carry forwards $ 7,734 $ 7,675 Engineering credit carry forwards 1,920 1,919 Inventory reserves 503 558 Capital loss and other credit carry forwards 6 — Allowance for bad debts and returns 13 16 Stock compensation 330 287 Capitalized inventory costs, stock compensation and other accuals 389 233 Total gross deferred tax assets 10,895 10,688 Less valuation allowance on deferred tax assets (10,686 ) (10,688 ) Net deferred tax assets 209 — Deferred tax liabilities: Depreciation and other — — Right to use property (179 ) — Total deferred tax liabilities (179 ) — Net deferred taxes $ 30 $ —
Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block]	December 31 , 201 9 December 31, 201 8 Beginning Balance $ 29 $ 29 Increases related to tax positions taken in current year — — Increases related to tax positions taken in prior year — — Decreases due to lapse of statute of limitations — — Related interest and penalties, net of federal tax benefit — — Balance at December 31 $ 29 $ 29

Note 5 - Stock Based Compensa_2

Note 5 - Stock Based Compensation (Tables)	12 Months Ended
	Dec. 31, 2019
Notes Tables
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]	Fiscal Year Ended December 31, 2017 Expected lives, in years 5.0 Estimated volatility 36.89% Dividend yield — Risk-free interest rate 1.92% Weighted average fair value on grant date $2.50
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, 2017 188,033 $ 7.38 8.63 — Granted — — — — Exercised (5,500 ) 7.08 — — Forfeited, canceled or expired (4,533 ) 15.23 — — Outstanding at December 31, 2018 178,000 7.19 8.63 — Granted — — — — Exercised — — — — Forfeited, canceled or expired (16,667 ) 7.38 — — Outstanding at December 31, 2019 161,333 $ 7.17 7.49 — Exercisable at December 31, 2019 161,333 $ 7.17 7.49 —

Note 7 - Net Earnings Per Sha_2

Note 7 - Net Earnings Per Share (Tables)	12 Months Ended
	Dec. 31, 2019
Notes Tables
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	December 31, 201 9 December 31, 201 8 In thousands (except per share amounts): Net income (a) $ (7 ) $ 1,486 Weighted average outstanding shares of common stock (b) 1,925 2,030 Dilutive potential common shares from employee stock options - 27 Common stock and common stock equivalents (c) 1,925 2,057 Income per share: Basic net income per share (a)/(b) $ 0.00 $ 0.73 Diluted net income per share (a)/(c) $ 0.00 $ 0.72

Note 8 - Commitments (Tables)

Note 8 - Commitments (Tables)	12 Months Ended
	Dec. 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 2020 $ 277 $ (167 ) $ 110 2021 148 (26 ) 122 2022 129 - 129 2023 133 - 133 2024 79 - 79 After - - - Total undiscounted future non-cancelable minimum lease payments 766 (193 ) 573 Less: Imputed interest (61 ) - (61 ) Present value of lease liabilities $ 705 $ (193 ) $ 512
Lessee, Operating Lease, Other Information [Table Text Block]	Year Ended December 31 , 2019 Weighted average remaining lease term in years 1.52 Weighted average discount rate 4.33 % Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 348 Operating cash flows from finance leases - Financing cash flows from finance leases -

Note 9 - Segment Information (T

Note 9 - Segment Information (Tables)	12 Months Ended
	Dec. 31, 2019
Notes Tables
Reconciliation of Revenue from Segments to Consolidated [Table Text Block]	Twelve Months Ended December 31, 201 9 201 8 Revenue Power Supplies $ 5,079 $ 5,927 Data Storage: Product 4,194 3,111 Service 4,166 3,191 Total Data Storage $ 8,360 $ 6,302 Total Revenue $ 13,439 $ 12,229
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block]	Twelve Months Ended December 31, 201 9 201 8 Income (loss) before Taxes Power Supplies $ (866 ) $ (153 ) Data Storage 841 1,643 Total Income (Loss) Before Income Taxes $ (25 ) $ 1,490
Reconciliation of Assets from Segment to Consolidated [Table Text Block]	December 31 , 201 9 December 31, 201 8 Total Assets Power Supplies Cash and cash equivalents $ 527 $ 381 Accounts receivable, net 840 1,048 Inventories, net 872 1,576 Property and equipment 11 47 Other assets 107 102 2,357 3,154 Data Storage Cash and cash equivalents 3,336 4,400 Restricted cash 100 100 Accounts receivable, net 1,526 761 Inventories, net 1,668 1,321 Property and equipment 111 65 Right of use 676 - Other assets 264 197 7,681 6,844 Total Assets $ 10,038 $ 9,998
Schedule of Segment Reporting Information, by Segment [Table Text Block]	Twelve Months Ended December 31, 201 9 201 8 Total Revenue: North America $ 7,900 $ 6,957 Europe 1,696 1,849 Asia Pacific 3,787 3,276 Other 56 147 $ 13,439 $ 12,229 Power Supply Revenue: North America 3,507 3,356 Europe 1,118 1,220 Asia Pacific 454 1,351 Other — — $ 5,079 $ 5,927 Data Storage Revenue: North America 4,393 3,601 Europe 578 629 Asia Pacific 3,333 1,925 Other 56 147 $ 8,360 $ 6,302

Note 1 - Summary of Significa_3

Note 1 - Summary of Significant Accounting Policies (Details Textual)	12 Months Ended
	Dec. 31, 2019USD ($)	Dec. 31, 2018USD ($)
Number of Operating Segments	2
Number of Subsidiaries	4
Contract with Customer, Liability, Total	$ 949,000	$ 863,000
Deferred Profit	0	0
Restricted Cash and Cash Equivalents, Current, Total	100,000	100,000
Impairment of Long-Lived Assets Held-for-use	$ 0	0
Power Supplies and Repair Warranty, Term	3 years
Advertising Expense	$ 82,000	$ 92,000
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	4 years
XLS and RLS Libraries [Member]
Advance Replacement Warranty Period	3 years
Q-Series Libraries [Member]
Advance Replacement Warranty Period	2 years
North America [Member] | XLS Libraries [member]
Warranty, Onsite Service Period	1 year
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | Largest Customer [Member]
Concentration Risk, Percentage	23.50%	12.60%
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | Outside North America [Member]
Concentration Risk, Percentage	58.80%	43.10%
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Largest Customer [Member]
Concentration Risk, Percentage	23.40%	2.00%

Note 1 - Significant Accounting

Note 1 - Significant Accounting Policies - Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Balance at Beginning of Period	$ 57	$ 54
Charged to Costs and Expenses		8
Charged to Other Accounts
Deductions	(17)	(5)
Balance at End of Period	$ 40	$ 57

Note 1 - Significant Accounti_2

Note 1 - Significant Accounting Policies - Estimated Useful Lives of Property and Equipment (Details)	12 Months Ended
	Dec. 31, 2019
Machinery and Equipment [Member] | Minimum [Member]
Property, plant and equipment, useful life (Year)	5 years
Machinery and Equipment [Member] | Maximum [Member]
Property, plant and equipment, useful life (Year)	7 years
Furniture and Fixtures [Member] | Minimum [Member]
Property, plant and equipment, useful life (Year)	5 years
Furniture and Fixtures [Member] | Maximum [Member]
Property, plant and equipment, useful life (Year)	7 years
Leasehold Improvements [Member] | Minimum [Member]
Property, plant and equipment, useful life (Year)	3 years
Leasehold Improvements [Member] | Maximum [Member]
Property, plant and equipment, useful life (Year)	5 years
Computer Equipment [Member] | Minimum [Member]
Property, plant and equipment, useful life (Year)	3 years
Computer Equipment [Member] | Maximum [Member]
Property, plant and equipment, useful life (Year)	5 years

Note 1 - Significant Accounti_3

Note 1 - Significant Accounting Policies - Product Warranty Liability (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Beginning balance	$ 365	$ 322
Cost of warranty claims	(21)	(15)
Accruals for product warranties	(54)	58
Ending balance	$ 290	$ 365

Note 1 - Significant Accounti_4

Note 1 - Significant Accounting Policies - Assets and Liabilities at Fair Value on a Recurring Basis (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Restricted Cash	$ 100,000	$ 100,000
Total	3,963,000	4,881,000	$ 4,798,000
Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member]
Cash	3,863,000	4,781,000
Unrealized Gains
Unrealized Losses
Restricted Cash	100,000	100,000
Total	$ 3,963,000	$ 4,881,000

Note 2 - Balance Sheet Detail_2

Note 2 - Balance Sheet Details (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Depreciation, Total	$ 45,000	$ 85,000

Note 2 - Balance Sheet Detail_3

Note 2 - Balance Sheet Details - Inventory (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Raw materials	$ 199	$ 136
Finished goods	2,341	2,761
Inventories, net	$ 2,540	$ 2,897

Note 2 - Balance Sheet Detail_4

Note 2 - Balance Sheet Details - Property and Equipment, Net (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Property and equipment, gross	$ 1,040	$ 1,244
Less accumulated depreciation and amortization	(918)	(1,132)
Property and equipment, net	122	112
Leasehold Improvements [Member]
Property and equipment, gross	163	114
Furniture and Fixtures [Member]
Property and equipment, gross	268	286
Machinery and Equipment [Member]
Property and equipment, gross	$ 609	$ 844

Note 2 - Balance Sheet Detail_5

Note 2 - Balance Sheet Details - Accrued Payroll and Related Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Accrued salaries and payroll taxes	$ 69	$ 66
Accrued vacation	123	119
Accrued bonuses
Total accrued payroll and related liabilities	$ 192	$ 185

Note 2 - Balance Sheet Detail_6

Note 2 - Balance Sheet Details - Other Accrued Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Accrued warranty	$ 290	$ 365
Accrued commissions	55	41
Accrued professional fees		100
Accrued deferred rent		22
Other accrued liabilities	23	31
Total other accrued liabilities	$ 368	$ 559

Note 3 - Income Taxes (Details

Note 3 - Income Taxes (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	21.00%	21.00%
Alternative Minimum Tax			$ 12,000
Tax Credit Carryforward, Amount	$ 2,700,000	$ 2,700,000
Unrecognized Tax Benefits, Period Increase (Decrease), Total	527,000
Domestic Tax Authority [Member] | Internal Revenue Service (IRS) [Member]
Operating Loss Carryforwards, Total	30,700,000	30,400,000
State and Local Jurisdiction [Member]
Operating Loss Carryforwards, Total	$ 19,000,000	$ 19,700,000

Note 3 - Income Taxes - Provisi

Note 3 - Income Taxes - Provision for (Benefit from) Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Current:
Federal (Net of a 2018 net operating loss benefit of $288)
State (Net of a 2018 and 2019 net operating loss benefit of $35 and $97, respectively)	7	3
Foreign	5	1
Provision for income taxes	12	4
Deferred:
Federal
State	30
Deferred income tax	(30)
Net income tax expense	$ (18)	$ 4

Note 3 - Income Taxes - Provi_2

Note 3 - Income Taxes - Provision for (Benefit from) Income Taxes (Details) (Parentheticals) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Domestic Tax Authority [Member] | Internal Revenue Service (IRS) [Member]
Net operating loss benefit	$ 0	$ 288
State and Local Jurisdiction [Member]
Net operating loss benefit	$ 35	$ 97

Note 3 - Income Taxes - Reconci

Note 3 - Income Taxes - Reconciliation of the Statutory Federal Income Tax Rate to Qualstar's Effective Rate (Details)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Statutory federal income tax benefit	21.00%	21.00%
State income taxes, net of federal income tax benefit	(7.90%)	6.60%
Foreign income taxes, net of federal income tax benefit	(13.20%)
Deferred tax adjustment – NOL	42.60%
Valuation allowance	8.20%	(26.60%)
Other	0.20%	(0.60%)
Effective income tax rate	50.90%	0.40%

Note 3 - Income Taxes - Deferre

Note 3 - Income Taxes - Deferred Income Tax Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Deferred tax assets:
Net operating loss carry forwards	$ 7,734	$ 7,675
Engineering credit carry forwards	1,920	1,919
Inventory reserves	503	558
Capital loss and other credit carry forwards	6
Allowance for bad debts and returns	13	16
Stock compensation	330	287
Capitalized inventory costs, stock compensation and other accuals	389	233
Total gross deferred tax assets	10,895	10,688
Less valuation allowance on deferred tax assets	(10,686)	(10,688)
Net deferred tax assets	209
Deferred tax liabilities:
Depreciation and other
Right to use property	(179)
Total deferred tax liabilities	(179)
Net deferred taxes	$ 30

Note 3 - Income Taxes - Uncerta

Note 3 - Income Taxes - Uncertain Tax Positions (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Beginning Balance	$ 29	$ 29
Increases related to tax positions taken in current year
Increases related to tax positions taken in prior year
Decreases due to lapse of statute of limitations
Related interest and penalties, net of federal tax benefit
Ending Balance	$ 29	$ 29

Note 4 - Preferred Stock (Detai

Note 4 - Preferred Stock (Details Textual) - shares	Dec. 31, 2019	Dec. 31, 2018
Preferred Stock, Shares Authorized	5,000,000	5,000,000
Preferred Stock, Shares Outstanding, Ending Balance	0	0

Note 5 - Stock Based Compensa_3

Note 5 - Stock Based Compensation (Details Textual) - USD ($)	Dec. 18, 2019	Oct. 29, 2019	Apr. 13, 2019	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Share-based Payment Arrangement, Expense				$ 139,000	$ 0
Share-based Payment Arrangement, Expense, Tax Benefit				$ 0	$ 0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance				161,333	178,000	188,033
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross				0	0
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total				$ 0	$ 0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares					0
Plan 2017 [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized				300,000
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				3,333
Chief Executive Officer [Member] | Restricted Stock Units (RSUs) [Member] | Plan 2017 [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period		50,000	50,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period	25,000
Chief Executive Officer [Member] | Restricted Stock Units (RSUs) [Member] | Plan 2017 [Member] | Share-based Payment Arrangement, Tranche One [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period	25,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number, Ending Balance		25,000
Chief Executive Officer [Member] | Restricted Stock Units (RSUs) [Member] | Plan 2017 [Member] | Share-based Payment Arrangement, Tranche Two [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number, Ending Balance		25,000

Note 5 - Stock Based Compensa_4

Note 5 - Stock Based Compensation - Fair Value Assumptions (Details)	12 Months Ended
	Dec. 31, 2017$ / shares
Expected lives (Year)	5 years
Estimated volatility	36.89%
Dividend yield
Risk-free interest rate	1.92%
Weighted average fair value on grant date (in dollars per share)	$ 2.50

Note 5 - Stock Based Compensa_5

Note 5 - Stock Based Compensation - Stock Option Activity (Details) - $ / shares	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Outstanding, shares (in shares)	178,000	188,033
Weighted-average exercise price per share, outstanding (in dollars per share)	$ 7.19	$ 7.38
Weighted-average remaining contractual term, outstanding (Year)	7 years 178 days	8 years 229 days	8 years 229 days
Granted, shares (in shares)	0	0
Weighted-average exercise price per share, granted (in dollars per share)
Exercised, shares (in shares)		(5,500)
Weighted-average exercise price per share, exercised (in dollars per share)		$ 7.08
Forfeited, canceled or expired, shares (in shares)	(16,667)	(4,533)
Weighted-average exercise price per share, forfeited, canceled or expired (in dollars per share)	$ 7.38	$ 15.23
Outstanding, shares (in shares)	161,333	178,000	188,033
Weighted-average exercise price per share, outstanding (in dollars per share)	$ 7.17	$ 7.19	$ 7.38
Exercisable, shares (in shares)	161,333
Weighted-average exercise price per share, exercisable (in dollars per share)	$ 7.17
Weighted-average remaining contractual term, exercisable (Year)	7 years 178 days

Note 6 - Stockholders' Equity (

Note 6 - Stockholders' Equity (Details Textual) - Stock Repurchase Program [Member] - USD ($)	12 Months Ended		13 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 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	18,102	129,991	148,093

Note 7 - Net Earnings Per Sha_3

Note 7 - Net Earnings Per Share (Details Textual) - shares	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Share-based Payment Arrangement, Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	161,333	4,666

Note 7 - Net Earnings Per Sha_4

Note 7 - Net Earnings Per Share - Computation of Basic and Diluted Net Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Net income (loss)	$ (7)	$ 1,486
Weighted average outstanding shares of common stock (b) (in shares)	1,925	2,030
Dilutive potential common shares from employee stock options (in shares)		27
Common stock and common stock equivalents (c) (in shares)	1,925	2,057
Basic net income per share (a)/(b) (in dollars per share)	$ 0	$ 0.73
Diluted net income per share (a)/(c) (in dollars per share)	$ 0	$ 0.72

Note 8 - Commitments (Details T

Note 8 - Commitments (Details Textual)	Jun. 01, 2019USD ($)ft²	May 22, 2019USD ($)	Apr. 01, 2016USD ($)ft²	Dec. 15, 2014USD ($)ft²	Dec. 31, 2019USD ($)ft²	Dec. 31, 2018USD ($)
Operating Lease, Weighted Average Discount Rate, Percent					4.33%
Operating Lease, Impairment Loss					$ 0
Operating Lease, Liability, Current					252,000
Operating Lease, Liability, Noncurrent					453,000
Operating Lease, Right-of-Use Asset					676,000
Operating Leases, Rent Expense, Net, Total					$ 164,000	$ 151,000
Lease for Headquarters [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		$ 12,886		$ 11,000
Monthly Rent Step-up Percentage				3.00%
Lessee, Operating Lease, Renewal Term				3 years
Stillwater Agency, Inc. [Member]
Operating Leases, Sublease, Percentage of Total Operating Expenses and Taxes Expense for Subleased Office Building		9.00%
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 8 - Commitments - Future M

Note 8 - Commitments - Future Minimum Lease Payments (Details) $ in Thousands	Dec. 31, 2019USD ($)
2020, Minimum Lease Payment	$ 277
2020, Sublease Revenue	(167)
2020, Net Minimum Lease Payment	110
2021, Minimum Lease Payment	148
2021, Sublease Revenue	(26)
2021, Net Minimum Lease Payment	122
2022, Minimum Lease Payment	129
2022, Sublease Revenue
2022, Net Minimum Lease Payment	129
2023, Minimum Lease Payment	133
2023, Sublease Revenue
2023, Net Minimum Lease Payment	133
2024, Minimum Lease Payment	79
2024, Sublease Revenue
2024, Net Minimum Lease Payment	79
After, Minimum Lease Payment
After, Sublease Revenue
After, Net Minimum Lease Payment
Total undiscounted future non-cancelable minimum lease payments	766
Total undiscounted future non-cancelable minimum lease payments	(193)
Total undiscounted future non-cancelable minimum lease payments	573
Less: Imputed interest, Minimum Lease Payment	(61)
Less: Imputed interest, Sublease Revenue
Less: Imputed interest, Net Minimum Lease Payment	(61)
Present value of lease liabilities, Minimum Lease Payment	705
Present value of lease liabilities, Sublease Revenue	(193)
Present value of lease liabilities, Net Minimum Lease Payment	$ 512

Note 8 - Commitments - Other In

Note 8 - Commitments - Other Information Related to Operating Leases (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2019USD ($)
Weighted average remaining lease term in years (Year)	1 year 189 days
Weighted average discount rate	4.33%
Operating cash flows from operating leases	$ 348
Operating cash flows from finance leases
Financing cash flows from finance leases

Note 9 - Segment Information (D

Note 9 - Segment Information (Details Textual)	12 Months Ended
	Dec. 31, 2019
Number of Operating Segments	2

Note 9 - Segment Information -

Note 9 - Segment Information - Segment Revenue (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Revenue	$ 13,439	$ 12,229
Power Supplies [Member]
Revenue	5,079	5,927
Data Storage [Member]
Revenue	8,360	6,302
Data Storage [Member] | Product [Member]
Revenue	4,194	3,111
Data Storage [Member] | Service [Member]
Revenue	$ 4,166	$ 3,191

Note 9 - Segment Information _2

Note 9 - Segment Information - Segment Income (Loss) Before Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Income (loss) before taxes	$ (25)	$ 1,490
Power Supplies [Member]
Income (loss) before taxes	(866)	(153)
Data Storage [Member]
Income (loss) before taxes	$ 841	$ 1,643

Note 9 - Segment Information _3

Note 9 - Segment Information - Segment Total Assets (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Cash and cash equivalents	$ 3,863,000	$ 4,781,000
Accounts receivable, net	2,366,000	1,809,000
Inventories, net	2,540,000	2,897,000
Property and equipment	122,000	112,000
Other assets	160,000	119,000
	10,038,000	9,998,000
Restricted cash	100,000	100,000
Right of use	676,000
Power Supplies [Member]
Cash and cash equivalents	527,000	381,000
Accounts receivable, net	840,000	1,048,000
Inventories, net	872,000	1,576,000
Property and equipment	11,000	47,000
Other assets	107,000	102,000
	2,357,000	3,154,000
Data Storage [Member]
Cash and cash equivalents	3,336,000	4,400,000
Accounts receivable, net	1,526,000	761,000
Inventories, net	1,668,000	1,321,000
Property and equipment	111,000	65,000
Other assets	264,000	197,000
	7,681,000	6,844,000
Restricted cash	100,000	100,000
Right of use	$ 676,000

Note 9 - Segment Information _4

Note 9 - Segment Information - Revenue by Primary Geographic Operating Region (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Revenue	$ 13,439	$ 12,229
Power Supplies [Member]
Revenue	5,079	5,927
Data Storage [Member]
Revenue	8,360	6,302
North America [Member]
Revenue	7,900	6,957
North America [Member] | Power Supplies [Member]
Revenue	3,507	3,356
North America [Member] | Data Storage [Member]
Revenue	4,393	3,601
Europe [Member]
Revenue	1,696	1,849
Europe [Member] | Power Supplies [Member]
Revenue	1,118	1,220
Europe [Member] | Data Storage [Member]
Revenue	578	629
Asia Pacific [Member]
Revenue	3,787	3,276
Asia Pacific [Member] | Power Supplies [Member]
Revenue	454	1,351
Asia Pacific [Member] | Data Storage [Member]
Revenue	3,333	1,925
Other Geographic Areas [Member]
Revenue	56	147
Other Geographic Areas [Member] | Power Supplies [Member]
Revenue
Other Geographic Areas [Member] | Data Storage [Member]
Revenue	$ 56	$ 147

Note 10 - Legal Proceedings (De

Note 10 - Legal Proceedings (Details Textual) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Loss Contingency, Accrual, Current	$ 0	$ 100,000

Note 11 - Benefit Plans (Detail

Note 11 - Benefit Plans (Details Textual)	12 Months Ended
	Dec. 31, 2019
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent	100.00%
Defined Contribution Plan, Employer Matching Contribution, Percent of Match	25.00%
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay	6.00%

Note 12 - Related Party Trans_2

Note 12 - Related Party Transactions (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Interlink Electronics, Inc. [Member]
Due to Related Parties, Total	$ 25,000	$ 3,000
Interlink Electronics, Inc. [Member] | Administrative Services Provided to Related Party [Member]
Related Party Transaction, Amounts of Transaction	39,000	17,000
Due from Related Parties, Total	5,000	2,000
Related Party Transaction, Payment Per Month	40,000
Interlink Electronics, Inc. [Member] | Reimbursement of Expenses Paid by Company [Member]
Related Party Transaction, Amounts of Transaction	264,000	213,000
BKF Capital Group, Inc. [Member]
Related Party Transaction, Amounts of Transaction	2,000	1,000
Due to Related Parties, Total	$ 0	$ 0