CVD Equipment (CVV) 10-K 30 Mar 16 2015 FY Annual report Financial data

Document And Entity Information

Document And Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2015	Mar. 04, 2016	Jun. 30, 2015
Entity Registrant Name	CVD EQUIPMENT CORP
Entity Central Index Key	766,792
Trading Symbol	cvv
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Entity Common Stock, Shares Outstanding (in shares)		6,198,135
Entity Public Float			$ 58,212,803
Document Type	10-K
Document Period End Date	Dec. 31, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	FY
Amendment Flag	false

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Current Assets
Cash and cash equivalents	$ 13,073,331	$ 11,966,863
Accounts receivable, net	3,091,251	6,463,050
Costs and estimated earnings in excess of billings on contracts in progress	4,635,018	2,498,662
Inventories, net	2,986,430	4,842,059
Restricted cash	200,000	200,000
Deferred income taxes	398,009	2,887,960
Other current assets	167,056	194,756
Total Current Assets	24,551,095	29,053,350
Property, plant and equipment, net	14,793,923	15,025,283
Construction in progress	33,306	389,276
Deferred income taxes	$ 1,606,830	750,133
Restricted cash-long-term		200,000
Other assets	$ 86,215	82,559
Intangible assets, net	60,335	55,871
Total Assets	42,806,204	45,556,472
Current Liabilities
Accounts payable	308,004	1,682,838
Accrued expenses	3,445,880	3,297,052
Current maturities of long-term debt	$ 580,000	720,000
Billings in excess of costs and estimated earnings on contracts in progress		1,328,508
Deferred revenue	$ 307,683	488,691
Accrued litigation settlement		4,925,000
Total Current Liabilities	$ 4,641,567	12,442,089
Long-term debt, net of current portion	3,265,508	3,845,508
Total Liabilities	$ 7,907,075	$ 16,287,597
Commitments and Contingencies (Note 16)
Stockholders’ Equity:
Common stock - $0.01 par value – 10,000,000 shares authorized: issued and outstanding, 6,198,135 shares at December 31, 2015 and 6,162,027 shares at December 31, 2014	$ 61,981	$ 61,620
Additional paid-in capital	22,895,202	22,144,805
Retained earnings	10,267,446	7,062,450
Total Stockholders’ Equity	33,224,629	29,268,875
Total Liabilities and Stockholders’ Equity	$ 41,131,704	$ 45,556,472

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parentheticals) - $ / shares	Dec. 31, 2015	Dec. 31, 2014
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	10,000,000	10,000,000
Common stock, shares issued (in shares)	6,198,135	6,162,027
Common stock, shares outstanding (in shares)	6,198,135	6,162,027

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Revenue	$ 38,965,387	$ 27,990,463
Cost of revenue	23,819,864	16,465,084
Gross profit	15,145,523	11,525,379
Operating expenses
Research and development	605,264	877,788
Selling and shipping	1,208,174	1,282,101
General and administrative	7,745,092	8,204,514
Litigation settlement	995,000	4,925,000
Total operating expenses	10,553,530	15,289,403
Operating income/(loss)	4,591,993	(3,764,024)
Other income (expense):
Interest income	24,540	33,159
Interest expense	(92,101)	(109,418)
Other income/(expense)	759	130,813
Total other (expense)/income net	(66,802)	54,554
Income/(loss) before income tax expense	4,663,191	(3,709,470)
Income tax expense/(benefit)	1,320,195	(1,235,940)
Net income/(loss)	$ 3,204,996	$ (2,473,530)
Basic income/(loss) per common share (in dollars per share)	$ 0.52	$ (0.40)
Diluted income/(loss) per common share (in dollars per share)	$ 0.51	$ (0.40)
Outstanding-basic (in shares)	6,175,254	6,129,831
Outstanding-diluted (in shares)	6,283,307	6,129,831

Consolidated Statements of Chan

Consolidated Statements of Changes in Stockholders' Equity - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total
Balance at beginning of year (in shares) at Dec. 31, 2013	6,091,707
Balance at beginning of year at Dec. 31, 2013	$ 60,917	$ 21,527,375	$ 9,535,980	$ 31,124,272
Exercise of stock options (in shares)	28,000			28,000
Exercise of stock options	$ 280	101,920		$ 102,200
Stock-based compensation (in shares)	42,320
Stock-based compensation	$ 423	515,510		515,933
Net income (loss)			(2,473,530)	$ (2,473,530)
Balance at end of year (in shares) at Dec. 31, 2014	6,162,027			6,162,027
Balance at end of year at Dec. 31, 2014	$ 61,620	22,144,805	7,062,450	$ 29,268,875
Exercise of stock options (in shares)				0
Stock-based compensation (in shares)	36,108
Stock-based compensation	$ 361	750,397		$ 750,758
Net income (loss)			3,204,996	$ 3,204,996
Balance at end of year (in shares) at Dec. 31, 2015	6,198,135			6,198,135
Balance at end of year at Dec. 31, 2015	$ 61,981	$ 22,895,202	$ 10,267,446	$ 33,224,629

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)		12 Months Ended
		Dec. 31, 2015	Dec. 31, 2014
Cash flows from operating activities:
Net income/(loss)		$ 3,204,996	$ (2,473,530)
Adjustments to reconcile net income/(loss) to net cash used in operating activities
Stock-based compensation		$ 750,758	515,933
(Gain) on sale of other fixed assets			(8,000)
Depreciation and amortization	[1]	$ 826,529	797,928
Deferred income tax benefit		1,633,254	(1,483,789)
Provision for doubtful accounts		(30,826)	(58,007)
(Increase)/decrease in operating assets
Accounts receivable		3,402,625	(3,521,600)
Cost in excess of billings on contracts in progress		(2,136,356)	(920,693)
Inventories, net		1,855,628	(344,709)
Other current assets		27,700	51,484
(Decrease)/increase in operating liabilities
Accounts payable		(1,374,835)	1,214,766
Accrued expenses		148,856	1,490,682
Billings in excess of costs and estimated earnings on contracts in progress		(1,328,508)	1,075,618
Accrued litigation settlement		(4,925,000)	4,925,000
Deferred revenue		(181,008)	284,164
Total adjustments		(1,331,183)	4,018,777
Net cash provided by operating activities		1,873,813	1,545,247
Cash flows from investing activities:
Restricted cash		200,000	400,000
Capital expenditures		$ (248,305)	(617,761)
Proceeds from sale of other fixed assets			8,000
Deposits		$ 960	1,617
Net cash (used in) investing activities		$ (47,345)	(208,144)
Cash flows from financing activities
Net proceeds from stock options exercised			102,200
Payments of long-term debt		$ (720,000)	(720,000)
Net cash (used in) financing activities		(720,000)	(617,800)
Net increase in cash and cash equivalents		1,106,468	719,303
Cash and cash equivalents at beginning of year		11,966,863	11,247,560
Cash and cash equivalents at end of year		13,073,331	$ 11,966,863
Supplemental disclosure of cash flow information:
Income taxes paid		427,078
Interest paid		$ 92,101	$ 109,418
[1]	Includes amortization expense of $24,759 and $20,007 for the years ending December 31, 2015 and 2014, respectively. Such amortization expense relates to other capitalized and intangible assets.

Note 1 - Business Description

Note 1 - Business Description	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Business Description and Basis of Presentation [Text Block]	Note 1 – Business Description CVD Equipment Corporation and its subsidiaries (the “Company”), a New York corporation, was organized and commenced operations in October 1982. Its principal business activities include the manufacturing of chemical vapor deposition equipment, customized gas control systems, the manufacturing of process equipment suitable for the synthesis of a variety of one-dimensional nanostructures and nanomaterials and a line of furnaces, all of which are used primarily to produce semiconductors and other electronic components. The Company engages in business throughout the United States and internationally.

Note 2 - Summary of Significant

Note 2 - Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Significant Accounting Policies [Text Block]	Note 2 - Summary of Significant Accounting Policies Principles of Consolidation The consolidated financial statements include the accounts of CVD Equipment Corporation and its wholly owned subsidiaries. In December 1998, a subsidiary, Stainless Design Concepts, Ltd., was formed as a New York Corporation. In April 1999, this subsidiary was merged into CVD Equipment Corporation. The Company has two wholly owned subsidiaries: CVD Materials Corporation, which provides marketing for our Application Laboratory and FAE Holdings 411519R, LLC, a real estate holding company whose sole asset is its interest in the real estate and building housing our corporate headquarters. All significant intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Company’s significant estimates are the accounting for certain items such as revenues on long-term contracts recognized on the percentage-of-completion method, depreciation and amortization, valuation of inventories at the lower of cost or market; allowance for doubtful accounts receivable; valuation allowances for deferred tax assets, impairment considerations of long-lived assets and stock-based compensation and costs associated with product warranties. Revenue Recognition Product and service sales, including those based on time and materials type contracts, are recognized when persuasive evidence of an arrangement exists, product delivery has occurred or services have been rendered, pricing is fixed or determinable, and collection is reasonably assured. Service sales, principally representing repair, maintenance and engineering activities are recognized over the contractual period or as services are rendered. Revenues from fixed price contracts are recognized on the percentage of completion method, measured on the basis of incurred costs to estimated total costs for each contract. This “cost to cost” method is used because management considers it to be the best available measure of progress on these contracts. Contract costs include all direct material and labor costs and those indirect costs related to contract performance, such as indirect labor, supplies, tools, repairs and depreciation costs. Provisions for estimated losses on uncompleted contracts are made in the period in which such losses are determined. Changes in job performance, job conditions, and estimated profitability, and final contract settlements may result in revisions to costs and income and are recognized in the period in which the revisions are determined. The asset “Costs and estimated earnings in excess of billings on contracts in progress” represents gross revenues recognized in excess of amounts billed. The liability “Billing in excess of costs and estimated earnings on contracts in progress” represents gross amounts billed in excess of revenues recognized. Inventories Inventories are valued at the lower of cost (determined on the first-in, first-out method) or market. Income Taxes Deferred tax assets and liabilities are determined based on the estimated future tax effects of temporary differences between the financial statements and tax bases of assets and liabilities, as measured by using the future enacted tax rates. Deferred tax expense (benefit) is the result of changes in the deferred tax assets and liabilities. The Company records a valuation allowance against deferred tax assets when it is more likely than not that future tax benefits will not be utilized based on a lack of sufficient positive evidence. Investment tax credits are accounted for by the flow-through method, reducing income taxes currently payable and the provision for income taxes in the period the assets giving rise to such credits are placed in service. To the extent such credits are not currently utilized on the Company’s tax return, deferred tax assets, subject to considerations about the need for a valuation allowance, are recognized for the carryforward amount. The Company recognizes the tax benefit from an uncertain tax position only if it is more-likely-than-not that the tax position will be sustained on examination by taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. The accounting guidance on accounting for uncertainty in income taxes also addresses derecognition, classification, interest and penalties on income taxes, and accounting in interim periods. The Company does not believe it has any uncertain tax positions through the year ending December 31, 2015 which would have a material impact on the Company’s consolidated financial statements. The Company and its subsidiaries file combined income tax returns in the U.S. Federal and New York State jurisdiction. In addition, the parent company files standalone tax returns in California, Michigan, Minnesota, New Hampshire and Wisconsin. The Company is no longer subject to U.S. federal and state income tax examinations for tax periods before 2012. The Company recognizes interest and penalties accrued related to unrecognized tax benefits, if any, in its income tax provision. The Company had no interest and penalties accrued at December 31, 2015 and 2014. Long Lived Assets Long-lived assets consist primarily of property, plant and equipment. Long-lived assets are reviewed for impairment whenever events or circumstances indicate their carrying value may not be recoverable. When such events or circumstances arise, an estimate of the future undiscounted cash flows produced by the asset, or the appropriate grouping of assets, is compared to the asset’s carrying value to determine if impairment exists pursuant to the requirements of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 360-10-35, “Impairment or Disposal of Long-Lived Assets.” If the asset is determined to be impaired, the impairment loss is measured on the excess of its carrying value over its fair value. Assets to be disposed of are reported at the lower of their carrying value or net realizable value. The Company had no recorded impairment charges in the consolidated statement of operations during each of the years ended December 31, 2015 and 2014. Construction in Progress Construction in progress consists of amounts expended for renovating the facility which was purchased on March 15, 2012. Expenditures for maintenance and repairs are charged to operations as incurred; additions, renewals and betterments are capitalized. Computer Software The Company follows ASC 350-40, “Internal Use Software.” This standard requires certain direct development costs associated with internal-use software to be capitalized including external direct costs of material and services and payroll costs for employees devoting time to the software projects. These costs totaled $21,000 and $25,000 for the years ended December 31, 2015 and 2014, respectively, and are included in Other Assets. All computer software is amortized using the straight-line method over its estimated useful life of three to five years. Amortization expense related to computer software totaled $16,000 and $11,000 for the years ended December 31, 2015 and 2014, respectively. Intangible Assets The cost of intangible assets is being amortized on a straight-line basis over their estimated initial useful lives which ranged from 5 to 20 years. Amortization expense recorded by the Company in 2015 and 2014 totaled $24,000 and $20,000, respectively. Research & Development Research and development costs are expensed as incurred. In 2012 we expanded our laboratory staff and began conducting research and development independentof customer orders. In 2015 we incurred approximately $1,727,000 of research and development expenses of which $570,000 were independent of external customer orders compared to 2014, when we incurred approximately $1,555,000 of research and development expenses of which approximately $878,000 were independent of external customer orders. Accounts Receivable Accounts receivable is presented net of an allowance for doubtful accounts of $19,000 and $24,000 as of December 31, 2015 and 2014, respectively. The allowance is based on historical experience and management’s evaluation of the collectability of accounts receivable. Management believes the allowance is adequate. However, future estimates may fluctuate based on changes in economic and customer conditions. The Company doesn’t require collateral from its customers. Product Warranty The Company records warranty costs as incurred and does not provide for possible future costs. Management estimates such costs are immaterial, based on historical experience. However, it is reasonably possible that this estimate may differ in future periods. Earnings Per Share Basic earnings per common share is computed by dividing the net income by the weighted average number of shares of common stock outstanding during each period. When applicable, diluted earnings per common share is determined using the weighted-average number of common shares outstanding during the period, adjusted for the dilutive effect of common stock equivalents, consisting of shares that might be adjusted upon exercise of common stock options and warrants. Potential common shares issued are calculated using the treasury stock method, which recognizes the use of proceeds that could be obtained upon the exercise of options and warrants in computing diluted earnings per share. It assumes that any proceeds would be used to purchase common stock at the average market price of the common stock during the period. Cash and Cash Equivalents The Company considers all highly liquid financial instruments purchased with an original maturity of three months or less at the date of purchase to be cash equivalents. The Company had cash and cash equivalents of $13.7 million and $12.0 million respectively at December 31, 2015 and 2014. Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash, cash equivalents, and accounts receivable. The Company places its cash equivalents with high credit-quality financial institutions and invests its excess cash primarily in money market instruments. The Company has established guidelines relative to credit ratings and maturities that seek to maintain stability and liquidity. The Company sells products and services to various companies across several industries in the ordinary course of business. The Company routinely assesses the financial strength of its customers and maintains allowances for anticipated losses based upon historical experience. Fair value of Financial Instruments The carrying amounts of financial instruments including cash and cash equivalents, accounts receivable, net, accounts payable and accrued expenses, deferred revenue and customer deposits approximate fair value due to the relatively short-term maturity of these instruments. The carrying value of long-term debt approximates fair value based on prevailing borrowing rates currently available for loans with similar terms and maturities. Stock-Based Compensation The Company records stock-based compensation in accordance with the provisions set forth in ASC 718, “Stock Compensation” using the modified prospective method. ASC 718 requires companies to recognize the cost of employee services received in exchange for awards of equity instruments based upon the grant date fair value of those awards. Shipping and Handling It is the Company’s policy to include freight charges billed to customers in total revenue. The amount included in revenue was $57,000 and $35,000 for the years ended December 31, 2015 and 2014, respectively. Recently Adopt ed Accounting Pronouncement In May 2014, The Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers” (Topic 606), which changes the criteria for recognizing revenue. The standard requires an entity which recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard requires a five-step process for recognizing revenues including identifying the contract with the customer, identifying the performance obligations in the contract, determining the transaction prices, allocating the transaction price to the performance obligations in the contract, and recognizing revenue when (or as) the entity satisfies a performance obligation. Publicly-traded companies were initially required to adopt the ASU for reporting periods beginning after December 15, 2016; however, the FASB, in August 2015, then issued Accounting Standards Update (“ASU”) No. 2015-14 to defer the effective date of ASU 2014-09 for all entities by one year. Currently companies may choose among different transition alternatives. Management is currently evaluating the impact that ASU 2014-09 will have on the Company’s consolidated financial statements and have not yet determined which method of adoption will be selected. In April 2015, the FASB issued ASU No. 2015-03, “Interest-imputation of interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs”, which requires that debt issuance costs be presented in the balance sheet as a direct deduction from the carrying amount of the related debt liability, rather than as a deferred charge asset. ASU No. 2015-03 is effective for the Company beginning January 1, 2016 and is to be applied retroactively. Management is currently evaluating the effect that this ASU will have on the Company’s consolidated financial statements and related disclosures. We believe there is no additional new accounting guidance adopted, but not yet effective that is relevant to the readers of our financial statements. However, there are numerous new proposals under development which, if and when enacted, may have a significant impact on our financial reporting.

Note 3 - Contracts in Progress

Note 3 - Contracts in Progress	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Long-term Contracts or Programs Disclosure [Text Block]	Note 3 – Contracts in Progress Costs and estimated earnings in excess of billings on percentage of completion type contracts in progress are summarized as follows: 2015 2014 Costs incurred on contracts in progress $ 7,695,281 $ 4,250,299 Estimated earnings 7,635,114 4,541,377 15,330,395 8,791,677 Billings to date (10,695,377 ) (7,621,523 ) $ 4,635,018 $ 1,170,154 2015 20 14 Included in accompanying balance sheets Under the following captions: Costs and estimated earnings in excess of billings on contracts in progress $ 4,635,018 $ 2,498,662 Billings in excess of costs and estimated earnings on contracts in progress $ --- $ (1,328,508 )

Note 4 - Inventories

Note 4 - Inventories	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Inventory Disclosure [Text Block]	Note 4 - Inventories Inventories consist of: 2015 2014 Raw materials $ 2,718,328 $ 4,307,913 Work-in-process 174,698 419,731 Finished goods 93,404 114,415 Totals $ 2,986,430 $ 4,842,059

Note 5 - Property, Plant and Eq

Note 5 - Property, Plant and Equipment	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Property, Plant and Equipment Disclosure [Text Block]	Note 5 – Property, Plant and Equipment Major classes of property, plant and equipment consist of the following: 2015 2014 Land $ 2,220,000 $ 2,220,000 Buildings 6,631,039 6,631,039 Building improvements 5,615,823 5,577,248 Machinery and equipment 2,381,964 2,333,129 Furniture and fixtures 721,919 712,549 Computer equipment 701,367 636,819 Transportation equipment 65,994 65,994 Lab equipment 1,972,838 1,564,082 Totals at cost 20,310,944 19,740,860 Less: Accumulated depreciation and amortization (5,517,021 ) (4,715,577 ) $ 14,793,923 $ 15,025,283 Depreciation and amortization expense (1) $ 826,529 $ 797,928 (1) Includes amortization expense of $24,759 and $20,007 for the years ending December 31, 2015 and 2014, respectively. Such amortization expense relates to other capitalized and intangible assets.

Note 6 - Intangible Assets

Note 6 - Intangible Assets	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Intangible Assets Disclosure [Text Block]	Note 6 – Intangible Assets 2015 Intangible Assets Weighted Average Amortization Period Cost Accumulated Amortization Carrying Amount Patents & Copyrights 17 $ 90,327 $ 36,659 $ 53,668 Intellectual Property 15 100,000 93,333 6,667 Licensing Agreement 5 10,000 10,000 0 Certifications 3 58,722 58,722 0 Other 5 21,492 21,492 0 Totals $ 280,451 $ 220,206 $ 60,335 2014 Intangible Assets Weighted Average Amortization Period Cost Accumulated Amortization Carrying Amount Patents & Copyrights 17 $ 77,357 $ 33,153 $ 44,204 Intellectual Property 15 100,000 88,333 11,667 Licensing Agreement 5 10,000 10,000 0 Certifications 3 58,722 58,722 0 Other 5 21,492 21,492 0 Totals $ 267,571 $ 211,700 $ 55,871 The estimated amortization expense related to intangible assets for each of the five succeeding fiscal years and thereafter as of December 31, 2015 is as follows: Year Ended 2016 $ 8,739 2017 5,303 2018 3,636 2019 3,592 2020 3,591 Thereafter 35,474 Total $ 60,335

Note 7 - Financing Arrangements

Note 7 - Financing Arrangements	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Short-term Debt [Text Block]	Note 7 – Financing Arrangements On September 3, 2015, the Company extended our existing revolving credit facility with HSBC Bank, USA, N.A. (“HSBC”), which was due to expire, until September 1, 2018 under the same terms. The original loan agreement with HSBC was entered into on August 5, 2011, and provided the Company with credit up to $9.1 million consisting of a $7 million revolving credit facility and a five (5) year term loan in the initial principal amount of $2.1 million. The balances on the term loan as of December 31, 2015 and December 31, 2014 were $280,000 and $700,000 respectively. Interest on the unpaid $280,000 principal balance on this term loan accrues at either (i) the London Interbank Offered Rate (“LIBOR”) plus 1.75% or (ii) the bank’s prime rate minus 0.50%. The credit agreement also contains certain financial covenants. As of December 31, 2015, we were compliance with the terms of the covenants. Pursuant to the terms of an Accommodation Agreement, we entered into a loan agreement with HSBC in the amount of $6,000,000, the proceeds of which were used to finance apportion of the purchase price of our headquarters. The Loan is secured by a mortgage against our Central Islip facility. The loan is payable in 120 consecutive equal monthly installments of principal of $25,000 plus interest thereon and a a final balloon payment of $3.0 million. Interest accrues on the Loan, at our option, at the variable rate of LIBOR plus 1.75% which was 1.9455% and 1.9108% at December 31, 2015 and 2014 respectively. The balance on the mortgage at December 31, 2015 and December 31, 2014 was $3,565,508 and $3,865,508 respectively.

Note 8 - Long-term Debt

Note 8 - Long-term Debt	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Long-term Debt [Text Block]	Note 8 – Long-term Debt Long-term debt as of December 31 consists of the following: 2015 2014 HSBC $2,100,000 5 year term loan payable in monthly installments of $35,000 plus interest on the unpaid principal balance which accrues at a fixed rate of 3.045%. This term loan was secured by $1 million, provided that, so long as no event of default occurred and is then continuing, HSBC would release $200,000 of the collateral on each anniversary of the closing date. As of December 31, 2015, HSBC had released $800,000, to reduce the collateral to $200,000. $ 280,000 $ 700,000 HSBC $6,000,000 Mortgage payable secured by real property Buildings and improvements at 355 South Technology Drive, Central Islip, NY payable in monthly principle installments of $25,000 plus interest. Interest presently accrues at our option, at the variable rate of LIBOR plus 1.75% or HSBC’s prime rate minus 0.50% The loan matures on March 1, 2022. 3,565,508 3,865,508 Totals 3,845,508 4,565,508 Less: Current maturities 580,000 720,000 Long-term debt $ 3,265,508 $ 3,845,508 Future maturities of long-term debt as of December 31, 2015 are as follows: 2016 $ 580,000 2017 300,000 2018 300,000 2019 300,000 2020 300,000 Thereafter 2,065,508 $ 3,845,508

Note 9 - Earnings Per Share

Note 9 - Earnings Per Share	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Earnings Per Share [Text Block]	Note 9 – Earnings per Share The calculation of basic and diluted weighted average common shares outstanding is as follows: 2015 2014 Weighted average common shares outstanding basic earnings per share 6,175,254 6,129,831 Effect of potential common share issuance: Stock options 108,053 --- Weighted average common shares outstanding Diluted earnings per share 6,283,307 6,129,831 Stock options to purchase 259,730 shares of common stock were outstanding and 159,730 were exercisable at December 31, 2015. At December 31, 2015 all outstanding options were included in the diluted earnings per share calculation because the average market price was higher than the exercise price. At December 31, 2014 none of the outstanding options were included in the diluted earnings per share calculation as their effect would have been anti-dilutive.

Note 10 - Income Taxes

Note 10 - Income Taxes	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Income Tax Disclosure [Text Block]	Note 1 0 – Income Taxes At December 31, 2015, the Company had approximately $27,000 in capital loss carryforwards, and $1,134,000 of federal research and development tax credits. If not utilized, the investment tax credits expire from 2016 through 2030 and the research and development tax credits expire from 2030-2035. Based on the available objective evidence, including the Company’s history of taxable income and the character of that income, management believes it is more likely than not that these components of the Company’s deferred tax assets will be fully utilized. The Company has provided for a partial valuation allowance against its total net deferred tax assets at December 31, 2015 and December 31, 2014 of approximately $475,000 attributable to these components. The expense/(benefit) for income taxes includes the following: 2015 2014 Current: Federal $ -- $ 240,591 State 3,070 7,258 Total current tax provision 3,070 247,849 Deferred: Federal 1,317,125 (1,865,134 ) State - 381,345 Total deferred tax provision 1,317,125 (1,483,789 ) Income tax expense/(benefit) $ 1,320,195 $ (1,235,940 ) In March 2014, New York State eliminated the state income tax for qualified manufacturing companies such as CVD. Due to this change in tax law, the Company was required to write off state-level deferred tax assets which would have been used to offset future taxes payable to New York State. The tax effects of temporary differences giving rise to significant portions of the net deferred taxes are as follows: 2015 2014 Allowance for doubtful accounts $ 6,345 $ 16,826 Inventory capitalization 11,540 23,185 Depreciation and amortization 228,610 (371,669 ) Investment tax credits 475,000 475,000 Research & development tax credits 1,134,168 696,865 Compensation costs 730,909 375,080 Vacation accrual 323,860 242,099 Accrued loss on legal settlement -- 1,674,500 Net operating loss carryforward -- 954,580 Capital loss carryforward 26,627 26,627 Gross deferred tax asset 2,479,839 4,113,093 Less valuation allowance (475,000 ) (475,000 ) Net deferred tax asset $ 2,004,839 $ 3,636,093 Net current deferred tax asset 398,009 2,887,960 Net long-term deferred tax asset 1,606,830 750,133 Net deferred tax asset $ 2,004,839 $ 3,638,093 The reconciliation of the federal statutory income tax rate to our effective tax rate is as follows: 2015 2014 Expected provision at federal statutory tax rate (34%) $ 1,538,565 $ (1,261,218 ) State taxes, net of federal benefit 3,070 7,258 Stock-based compensation expense (252,288 ) (307,737 ) Net operating loss carryforward 954,581 (37,327 ) Federal research & development credit (437,303 ) (181,782 ) Other permanent differences (486,430 ) 163,521 Impact of New York State taxation change -- 381,345 Income tax expense/(benefit) $ 1,320,195 $ (1,235,940 )

Note 11 - Stockholders' Equity

Note 11 - Stockholders' Equity	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Shareholders' Equity and Share-based Payments [Text Block]	NOTE 1 1 – Stockholders’ equity 1989 Non-Qualified Stock Option Plan On June 15, 1989, the Company instituted a non-qualified stock option plan (the “Plan”). In connection therewith, 700,000 shares of the Company’s common stock were reserved for issuance pursuant to options granted under the Plan through June 30, 2009. All options granted vested over a four-year period and expire between five to seven years after the date of grant. This 1989 Non-Qualified Stock Option Plan expired in June 2009. 2001 Non-Qualified Stock Option Plan In November 2006, the Company registered a non-qualified stock option plan that the shareholders had approved in July 2001, covering key employees, officers, directors and other persons that may be considered as service providers to the Company. Options were awarded by the Board of Directors or by a committee appointed by the Board. Under the plan, an aggregate of 300,000 shares of Company common stock, $.01 par value, were reserved for issuance or transfer upon the exercise of options which were granted. Unless otherwise provided in the option agreement, options granted under the plan would vest over a four year period commencing one year from the anniversary date of the grant. The stock option plan expired on July 22, 2011. 2007 Share Incentive Plan On December 12, 2007, shareholders approved the Company’s 2007 Share Incentive Plan (“Incentive Plan”), in connection therewith, 750,000 shares of the Company’s common stock are reserved for issuance pursuant to options or restricted stock that may be granted under the Share Incentive Plan through December 12, 2017. In 2014, 42,320 shares of stock were granted and issued to directors and key employees, additionally, options were granted to a key employee for 100,000 shares of the Company’s common stock. In 2015, 36,108 shares of stock were granted and issued to directors and key employees. The purchase price of the common stock under each option plan shall be determined by the Committee, provided, however, that such purchase price shall not be less than the fair market value of the shares on the date such option is granted. The stock options generally expire seven to ten years after the date of grant. The Company recorded stock-based compensation of $750,758 and $515,933 for the years ended December 31, 2015 and 2014, respectively. A summary of the stock option activity related to the 1989 and 2001 Stock Option Plans and the 2007 Share Incentive Plan for the period from January 1, 2014 through December 31, 2015 is as follows: 1989 Non-Qualified Stock Option Plan Beginning Balance Outstanding Granted During Period Exercised During Period Canceled During Period Ending Balance Outstanding Exercisable Year ended December 31, 2014 Number of shares 35,250 -0- -0- 0 35,250 35,250 Weighted average exercise price Per share $ 4.62 -0- -0- -0- $ 4.62 $ 4.62 Year ended December 31, 2015 Number of shares 35,250 -0- -0- -0- 35,250 35,250 Weighted average exercise price Per share $ 4.62 -0- -0- -0- $ 4.62 $ 4.62 2001 Non-Qualified Stock Option Plan Beginning Balance Outstanding Granted During Period Exercised During Period Canceled During Period Ending Balance Outstanding Exercisable Year ended December 31, 2014 Number of shares 152,480 -0- 28,000 -0- 124,480 111,980 Weighted average exercise price Per share $ 4.35 -0- -0- -0- $ 4.57 $ 4.56 Year ended December 31, 2015 Number of shares 124,480 -0- -0- -0- 124,480 111,980 Weighted average exercise price Per share $ 4.35 -0- -0- -0- $ 4.57 $ 4.56 2007 Share Incentive Plan Beginning Balance Outstanding Granted During Period Exercised During Period Canceled During Period Ending Balance Outstanding Exercisable Year ended December 31, 2014 Number of shares -0- 100,000 -0- -0- 100,000 -0- Weighted average exercise price Per share $ 11.17 Year ended December 31, 2015 Number of shares 100,000 -0- -0- -0- 100,000 -0- Weighted average exercise price Per share $ 11.17 The Company has 259,730 of outstanding stock options under the three Plans at December 31, 2015. The following table summarizes information about the outstanding and exercisable options at December 31, 2015. Options Outstanding Options Exercisable Exercise Price Range Number Outstanding Weighted Average Remaining Contractual Weighted Average Exercise Price Intrinsic Value Number Exercisable Weighted Average Exercise Price Intrinsic Value $ 3.00 - 3.99 34,000 2.95 $ 3.65 $ 218,620 34,000 $ 3.65 $ 218,620 $ 4.00 - 4.49 15,930 5.04 $ 4.25 $ 92,872 15,930 $ 4.25 $ 92,872 $ 4.50 - 4.99 100,000 2.78 $ 4.62 $ 546,000 75,000 $ 4.62 $ 546,000 $ 5.00 - 7.99 9,800 6.04 $ 7.90 $ 21,364 9,800 $ 7.90 $ 21,364 $ 8.00 - 12.00 100,000 9.80 $ 11.17 $ 0 0 $ 11.17 $ 0 There were no options exercised during the year ended December 31, 2015. The intrinsic value of the 28,000 options exercised during the year ended December 31, 2014 was $310,520. Restricted Stock Awards The following table summarizes restricted stock awards for the year ended December 31, 2014: Shares of Restricted Stock Weighted Average Grant Date Fair Value Unvested outstanding at January 1, 2014 12,000 $ 10.97 Granted 6,400 $ 14.24 Vested (10,400 ) $ 12.98 Forfeited/Cancelled - Unvested outstanding at December 31, 2014 8,000 $ 10.97 Granted 9,211 $ 13.66 Vested (13,211 ) $ 12.84 Forfeited/Cancelled - Unvested outstanding at December 31, 2015 4,000 $ 10.97 The total fair value of shares of restricted stock awards vested for the years ended December 31, 2015 and 2014 was approximately $170,000 and $135,000 respectively. The fair value of the outstanding restricted stock awards will be recorded as stock compensation expense over the vesting period. As of December 31, 2015 there was $44,000 of unrecognized compensation costs related to restricted stock awards, which is to be recognized over a period of 0.35 years. Restricted Stock Units The following table summarizes restricted stock units for the year ended December 31, 2015: Shares of Restricted Stock Units Weighted Average Grant Date Fair Value Unvested outstanding at January 1, 2014 144,243 $ 11.26 Granted -- Vested (37,925 ) $ 10.09 Forfeited/Cancelled (2,500 ) $ 10.71 Unvested outstanding at December 31, 2014 103,319 $ 11.71 Granted 24,210 $ 14.61 Vested (24,892 ) $ 11.55 Forfeited/Cancelled (8,057 ) $ 10.54 Unvested outstanding at December 31, 2015 94,580 $ 12.55 The total fair value of vested restricted stock units was $288,000 and $383,000 respectively for the years ended December 31, 2015 and 2014. The fair value of the outstanding restricted stock units will be recorded as stock compensation expense over the vesting period. As of December 31, 2015, there was $1,187,000 of total unrecognized compensation costs related to restricted stock units, which is expected to be recognized over a weighted-average period of 1.53 years. During the years ended December 31, 2015 and 2014, the Company recorded into selling and general administrative expense approximately $751,000 and $516,000 for the cost of employee and director services received in exchange for equity instruments based on the grant-date fair value of those instruments in accordance with the provisions of ASC 718.

Note 12 - Defined Contribution

Note 12 - Defined Contribution Plan	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Pension and Other Postretirement Benefits Disclosure [Text Block]	NOTE 1 2 – Defined Contribution Plan On August 1, 1998, the Company adopted a 401(k) Plan for the benefit of all eligible employees. All employees as of the effective date of the 401(k) Plan became eligible. An employee who became employed after August 1, 1998 would become a participant after three months of continuous service. Participants may elect to contribute from their compensation any amount up to the maximum deferral allowed by the Internal Revenue Code. Employer contributions are optional. During the years ended December 31, 2015 and 2014, the Company incurred administrative costs totaling $3,080 and $2,800, respectively. No discretionary employer contribution has been made for 2015 and 2014.

Note 13 - Significant Risks and

Note 13 - Significant Risks and Uncertainties	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Concentration Risk Disclosure [Text Block]	Note 1 3 – Significant Risks and Uncertainties Cash and Cash Equivalents The Company places most of its temporary cash investments with financial institutions, which from time to time may exceed the Federal Deposit Insurance Corporation limit. The amount at risk at December 31, 2015 and at December 31, 2014 was $11,966,000 and $10,216,000 respectively. Sales Concentrations Revenue to a single customer in any one year can exceed 10.0% of our total sales. One customer represented 49.6% and 50.2% respectively, of our annual revenues in fiscal years 2015 and 2014. Another customer represented 13.7% of our revenue in 2015. The loss of current key customers would have to be replaced by others, and our inability to do so may have a material adverse effect on our business and financial condition. Export sales to unaffiliated customers represented approximately 9.0% and 20.2% of sales for the years ended December 31, 2015 and 2014, respectively. Export sales in both 2015 and 2014 were primarily to customers in Europe and Asia. All contracts are denominated in U.S. dollars. The Company does not enter into any foreign exchange contracts.

Note 14 - Segment Reporting

Note 14 - Segment Reporting	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Segment Reporting Disclosure [Text Block]	Note 1 4 – Segment Reporting The Company adopted ASC 280, “Segment Reporting.” The Company operates through (2) segments, CVD and SDC. The CVD division is utilized for silicon, silicon germanium, silicon carbide and gallium arsenide processes. SDC is the Company’s ultra-high purity manufacturing division in Saugerties, New York. The accounting policies of CVD and SDC are the same as those described in the summary of significant accounting policies (see Note 2). The Company evaluates performance based on several factors, of which the primary financial measure is earnings before taxes. The following table presents certain information regarding the Company’s segments as of December 31, 2015 and for the year then ended: CVD SDC Eliminations Consolidated Assets $ 41,204,471 $ 3,619,304 $ (2,017,571 ) $ 42,806,204 Revenue $ 35,473,057 $ 5,674,258 $ (2,181,928 ) $ 38,965,387 Interest Expense 85,765 6,336 92,101 Depreciation and Amortization 764,467 62,062 826,529 Capital expenditures 212,140 36,165 248,305 Pretax earnings 3.616,280 1,046,911 4,663,191 The following table presents certain information regarding the Company’s segments as of December 31, 2014 and for the year then ended: CVD SDC Eliminations Consolidated Assets $ 44,953,847 $ 4,733,926 $ (4,131,301 ) $ 45,556,472 Revenue $ 23,831,036 $ 5,580,212 $ (1,420,785 ) $ 27,990,463 Interest Expense 100,829 8,589 109,418 Depreciation and Amortization 728,995 68,933 797,928 Capital expenditures 571,240 46,521 617,761 Pretax (loss)/earnings (4,877,892 ) 1,168,422 (3,709,470 )

Note 15 - Commitments and Conti

Note 15 - Commitments and Contingencies	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Commitments and Contingencies Disclosure [Text Block]	Note 15 - Commitments and Contingencies Legal Proceedings Effective as of January 29, 2015, the Company entered into a Settlement Agreement with Taiwan Glass International Corporation ("Taiwan Glass") and Capital One, National Association ("Capital One") regarding the previously disclosed action in the United States District Court for the Southern District of New York. Pursuant to the terms of the Settlement Agreement, the Company paid Taiwan Glass the sum of $4,925,000, (inclusive of interest) and all claims and counterclaims asserted in the Action were settled and dismissed with prejudice. On September 4, 2015, the Company entered into a Settlement Agreement and Mutual General Release with Development Specialists, Inc., solely in its capacity as Assignee for the benefit of creditors of CM Manufacturing, Inc. f/k/a/ Stion Corporation ("DSI") regarding both the Arbitration proceeding which had been previously filed against it by DSI and the companion Delaware Court of Chancery Court action which had been filed by CVD. Pursuant to the Settlement Agreement, CVD paid the sum of $995,000 to DSI, and each party released all claims of any nature which it had against the other. The parties also executed and filed stipulations of dismissal with prejudice, of both the Arbitration and the Chancery Action.

Significant Accounting Policies

Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2015
Accounting Policies [Abstract]
Consolidation, Policy [Policy Text Block]	Principles of Consolidation The consolidated financial statements include the accounts of CVD Equipment Corporation and its wholly owned subsidiaries. In December 1998, a subsidiary, Stainless Design Concepts, Ltd., was formed as a New York Corporation. In April 1999, this subsidiary was merged into CVD Equipment Corporation. The Company has two wholly owned subsidiaries: CVD Materials Corporation, which provides marketing for our Application Laboratory and FAE Holdings 411519R, LLC, a real estate holding company whose sole asset is its interest in the real estate and building housing our corporate headquarters. All significant intercompany accounts and transactions have been eliminated in consolidation.
Use of Estimates, Policy [Policy Text Block]	Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Company’s significant estimates are the accounting for certain items such as revenues on long-term contracts recognized on the percentage-of-completion method, depreciation and amortization, valuation of inventories at the lower of cost or market; allowance for doubtful accounts receivable; valuation allowances for deferred tax assets, impairment considerations of long-lived assets and stock-based compensation and costs associated with product warranties.
Revenue Recognition, Percentage-of-Completion Method [Policy Text Block]	Revenue Recognition Product and service sales, including those based on time and materials type contracts, are recognized when persuasive evidence of an arrangement exists, product delivery has occurred or services have been rendered, pricing is fixed or determinable, and collection is reasonably assured. Service sales, principally representing repair, maintenance and engineering activities are recognized over the contractual period or as services are rendered. Revenues from fixed price contracts are recognized on the percentage of completion method, measured on the basis of incurred costs to estimated total costs for each contract. This “cost to cost” method is used because management considers it to be the best available measure of progress on these contracts. Contract costs include all direct material and labor costs and those indirect costs related to contract performance, such as indirect labor, supplies, tools, repairs and depreciation costs. Provisions for estimated losses on uncompleted contracts are made in the period in which such losses are determined. Changes in job performance, job conditions, and estimated profitability, and final contract settlements may result in revisions to costs and income and are recognized in the period in which the revisions are determined. The asset “Costs and estimated earnings in excess of billings on contracts in progress” represents gross revenues recognized in excess of amounts billed. The liability “Billing in excess of costs and estimated earnings on contracts in progress” represents gross amounts billed in excess of revenues recognized.
Inventory, Policy [Policy Text Block]	Inventories Inventories are valued at the lower of cost (determined on the first-in, first-out method) or market.
Income Tax, Policy [Policy Text Block]	Income Taxes Deferred tax assets and liabilities are determined based on the estimated future tax effects of temporary differences between the financial statements and tax bases of assets and liabilities, as measured by using the future enacted tax rates. Deferred tax expense (benefit) is the result of changes in the deferred tax assets and liabilities. The Company records a valuation allowance against deferred tax assets when it is more likely than not that future tax benefits will not be utilized based on a lack of sufficient positive evidence. Investment tax credits are accounted for by the flow-through method, reducing income taxes currently payable and the provision for income taxes in the period the assets giving rise to such credits are placed in service. To the extent such credits are not currently utilized on the Company’s tax return, deferred tax assets, subject to considerations about the need for a valuation allowance, are recognized for the carryforward amount. The Company recognizes the tax benefit from an uncertain tax position only if it is more-likely-than-not that the tax position will be sustained on examination by taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. The accounting guidance on accounting for uncertainty in income taxes also addresses derecognition, classification, interest and penalties on income taxes, and accounting in interim periods. The Company does not believe it has any uncertain tax positions through the year ending December 31, 2015 which would have a material impact on the Company’s consolidated financial statements. The Company and its subsidiaries file combined income tax returns in the U.S. Federal and New York State jurisdiction. In addition, the parent company files standalone tax returns in California, Michigan, Minnesota, New Hampshire and Wisconsin. The Company is no longer subject to U.S. federal and state income tax examinations for tax periods before 2012. The Company recognizes interest and penalties accrued related to unrecognized tax benefits, if any, in its income tax provision. The Company had no interest and penalties accrued at December 31, 2015 and 2014.
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block]	Long Lived Assets Long-lived assets consist primarily of property, plant and equipment. Long-lived assets are reviewed for impairment whenever events or circumstances indicate their carrying value may not be recoverable. When such events or circumstances arise, an estimate of the future undiscounted cash flows produced by the asset, or the appropriate grouping of assets, is compared to the asset’s carrying value to determine if impairment exists pursuant to the requirements of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 360-10-35, “Impairment or Disposal of Long-Lived Assets.” If the asset is determined to be impaired, the impairment loss is measured on the excess of its carrying value over its fair value. Assets to be disposed of are reported at the lower of their carrying value or net realizable value. The Company had no recorded impairment charges in the consolidated statement of operations during each of the years ended December 31, 2015 and 2014.
Property, Plant and Equipment, Policy [Policy Text Block]	Construction in Progress Construction in progress consists of amounts expended for renovating the facility which was purchased on March 15, 2012. Expenditures for maintenance and repairs are charged to operations as incurred; additions, renewals and betterments are capitalized.
Internal Use Software, Policy [Policy Text Block]	Computer Software The Company follows ASC 350-40, “Internal Use Software.” This standard requires certain direct development costs associated with internal-use software to be capitalized including external direct costs of material and services and payroll costs for employees devoting time to the software projects. These costs totaled $21,000 and $25,000 for the years ended December 31, 2015 and 2014, respectively, and are included in Other Assets. All computer software is amortized using the straight-line method over its estimated useful life of three to five years. Amortization expense related to computer software totaled $16,000 and $11,000 for the years ended December 31, 2015 and 2014, respectively.
Intangible Assets, Finite-Lived, Policy [Policy Text Block]	Intangible Assets The cost of intangible assets is being amortized on a straight-line basis over their estimated initial useful lives which ranged from 5 to 20 years. Amortization expense recorded by the Company in 2015 and 2014 totaled $24,000 and $20,000, respectively.
Research, Development, and Computer Software, Policy [Policy Text Block]	Research & Development Research and development costs are expensed as incurred. In 2012 we expanded our laboratory staff and began conducting research and development independentof customer orders. In 2015 we incurred approximately $1,727,000 of research and development expenses of which $570,000 were independent of external customer orders compared to 2014, when we incurred approximately $1,555,000 of research and development expenses of which approximately $878,000 were independent of external customer orders.
Receivables, Policy [Policy Text Block]	Accounts Receivable Accounts receivable is presented net of an allowance for doubtful accounts of $19,000 and $24,000 as of December 31, 2015 and 2014, respectively. The allowance is based on historical experience and management’s evaluation of the collectability of accounts receivable. Management believes the allowance is adequate. However, future estimates may fluctuate based on changes in economic and customer conditions. The Company doesn’t require collateral from its customers.
Standard Product Warranty, Policy [Policy Text Block]	Product Warranty The Company records warranty costs as incurred and does not provide for possible future costs. Management estimates such costs are immaterial, based on historical experience. However, it is reasonably possible that this estimate may differ in future periods.
Earnings Per Share, Policy [Policy Text Block]	Earnings Per Share Basic earnings per common share is computed by dividing the net income by the weighted average number of shares of common stock outstanding during each period. When applicable, diluted earnings per common share is determined using the weighted-average number of common shares outstanding during the period, adjusted for the dilutive effect of common stock equivalents, consisting of shares that might be adjusted upon exercise of common stock options and warrants. Potential common shares issued are calculated using the treasury stock method, which recognizes the use of proceeds that could be obtained upon the exercise of options and warrants in computing diluted earnings per share. It assumes that any proceeds would be used to purchase common stock at the average market price of the common stock during the period.
Cash and Cash Equivalents, Policy [Policy Text Block]	Cash and Cash Equivalents The Company considers all highly liquid financial instruments purchased with an original maturity of three months or less at the date of purchase to be cash equivalents. The Company had cash and cash equivalents of $13.7 million and $12.0 million respectively at December 31, 2015 and 2014.
Concentration Risk, Credit Risk, Policy [Policy Text Block]	Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash, cash equivalents, and accounts receivable. The Company places its cash equivalents with high credit-quality financial institutions and invests its excess cash primarily in money market instruments. The Company has established guidelines relative to credit ratings and maturities that seek to maintain stability and liquidity. The Company sells products and services to various companies across several industries in the ordinary course of business. The Company routinely assesses the financial strength of its customers and maintains allowances for anticipated losses based upon historical experience.
Fair Value of Financial Instruments, Policy [Policy Text Block]	Fair value of Financial Instruments The carrying amounts of financial instruments including cash and cash equivalents, accounts receivable, net, accounts payable and accrued expenses, deferred revenue and customer deposits approximate fair value due to the relatively short-term maturity of these instruments. The carrying value of long-term debt approximates fair value based on prevailing borrowing rates currently available for loans with similar terms and maturities.
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block]	Stock-Based Compensation The Company records stock-based compensation in accordance with the provisions set forth in ASC 718, “Stock Compensation” using the modified prospective method. ASC 718 requires companies to recognize the cost of employee services received in exchange for awards of equity instruments based upon the grant date fair value of those awards.
Shipping and Handling Cost, Policy [Policy Text Block]	Shipping and Handling It is the Company’s policy to include freight charges billed to customers in total revenue. The amount included in revenue was $57,000 and $35,000 for the years ended December 31, 2015 and 2014, respectively.
New Accounting Pronouncements, Policy [Policy Text Block]	Recently Adopt ed Accounting Pronouncement In May 2014, The Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers” (Topic 606), which changes the criteria for recognizing revenue. The standard requires an entity which recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard requires a five-step process for recognizing revenues including identifying the contract with the customer, identifying the performance obligations in the contract, determining the transaction prices, allocating the transaction price to the performance obligations in the contract, and recognizing revenue when (or as) the entity satisfies a performance obligation. Publicly-traded companies were initially required to adopt the ASU for reporting periods beginning after December 15, 2016; however, the FASB, in August 2015, then issued Accounting Standards Update (“ASU”) No. 2015-14 to defer the effective date of ASU 2014-09 for all entities by one year. Currently companies may choose among different transition alternatives. Management is currently evaluating the impact that ASU 2014-09 will have on the Company’s consolidated financial statements and have not yet determined which method of adoption will be selected. In April 2015, the FASB issued ASU No. 2015-03, “Interest-imputation of interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs”, which requires that debt issuance costs be presented in the balance sheet as a direct deduction from the carrying amount of the related debt liability, rather than as a deferred charge asset. ASU No. 2015-03 is effective for the Company beginning January 1, 2016 and is to be applied retroactively. Management is currently evaluating the effect that this ASU will have on the Company’s consolidated financial statements and related disclosures. We believe there is no additional new accounting guidance adopted, but not yet effective that is relevant to the readers of our financial statements. However, there are numerous new proposals under development which, if and when enacted, may have a significant impact on our financial reporting.

Note 3 - Contracts in Progress

Note 3 - Contracts in Progress (Tables)	12 Months Ended
	Dec. 31, 2015
Notes Tables
Schedule Of Cost And Estimated Earnings In Excess Of Billings [Table Text Block]	2015 2014 Costs incurred on contracts in progress $ 7,695,281 $ 4,250,299 Estimated earnings 7,635,114 4,541,377 15,330,395 8,791,677 Billings to date (10,695,377 ) (7,621,523 ) $ 4,635,018 $ 1,170,154 2015 20 14 Included in accompanying balance sheets Under the following captions: Costs and estimated earnings in excess of billings on contracts in progress $ 4,635,018 $ 2,498,662 Billings in excess of costs and estimated earnings on contracts in progress $ --- $ (1,328,508 )

Note 4 - Inventories (Tables)

Note 4 - Inventories (Tables)	12 Months Ended
	Dec. 31, 2015
Notes Tables
Schedule of Inventory, Current [Table Text Block]	2015 2014 Raw materials $ 2,718,328 $ 4,307,913 Work-in-process 174,698 419,731 Finished goods 93,404 114,415 Totals $ 2,986,430 $ 4,842,059

Note 5 - Property, Plant and 25

Note 5 - Property, Plant and Equipment (Tables)	12 Months Ended
	Dec. 31, 2015
Notes Tables
Property, Plant and Equipment [Table Text Block]	2015 2014 Land $ 2,220,000 $ 2,220,000 Buildings 6,631,039 6,631,039 Building improvements 5,615,823 5,577,248 Machinery and equipment 2,381,964 2,333,129 Furniture and fixtures 721,919 712,549 Computer equipment 701,367 636,819 Transportation equipment 65,994 65,994 Lab equipment 1,972,838 1,564,082 Totals at cost 20,310,944 19,740,860 Less: Accumulated depreciation and amortization (5,517,021 ) (4,715,577 ) $ 14,793,923 $ 15,025,283 Depreciation and amortization expense (1) $ 826,529 $ 797,928

Note 6 - Intangible Assets (Tab

Note 6 - Intangible Assets (Tables)	12 Months Ended
	Dec. 31, 2015
Notes Tables
Schedule of Finite-Lived Intangible Assets [Table Text Block]	Intangible Assets Weighted Average Amortization Period Cost Accumulated Amortization Carrying Amount Patents & Copyrights 17 $ 90,327 $ 36,659 $ 53,668 Intellectual Property 15 100,000 93,333 6,667 Licensing Agreement 5 10,000 10,000 0 Certifications 3 58,722 58,722 0 Other 5 21,492 21,492 0 Totals $ 280,451 $ 220,206 $ 60,335 Intangible Assets Weighted Average Amortization Period Cost Accumulated Amortization Carrying Amount Patents & Copyrights 17 $ 77,357 $ 33,153 $ 44,204 Intellectual Property 15 100,000 88,333 11,667 Licensing Agreement 5 10,000 10,000 0 Certifications 3 58,722 58,722 0 Other 5 21,492 21,492 0 Totals $ 267,571 $ 211,700 $ 55,871
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]	Year Ended 2016 $ 8,739 2017 5,303 2018 3,636 2019 3,592 2020 3,591 Thereafter 35,474 Total $ 60,335

Note 8 - Long-term Debt (Tables

Note 8 - Long-term Debt (Tables)	12 Months Ended
	Dec. 31, 2015
Notes Tables
Schedule of Long-term Debt Instruments [Table Text Block]	2015 2014 HSBC $2,100,000 5 year term loan payable in monthly installments of $35,000 plus interest on the unpaid principal balance which accrues at a fixed rate of 3.045%. This term loan was secured by $1 million, provided that, so long as no event of default occurred and is then continuing, HSBC would release $200,000 of the collateral on each anniversary of the closing date. As of December 31, 2015, HSBC had released $800,000, to reduce the collateral to $200,000. $ 280,000 $ 700,000 HSBC $6,000,000 Mortgage payable secured by real property Buildings and improvements at 355 South Technology Drive, Central Islip, NY payable in monthly principle installments of $25,000 plus interest. Interest presently accrues at our option, at the variable rate of LIBOR plus 1.75% or HSBC’s prime rate minus 0.50% The loan matures on March 1, 2022. 3,565,508 3,865,508 Totals 3,845,508 4,565,508 Less: Current maturities 580,000 720,000 Long-term debt $ 3,265,508 $ 3,845,508
Schedule of Maturities of Long-term Debt [Table Text Block]	2016 $ 580,000 2017 300,000 2018 300,000 2019 300,000 2020 300,000 Thereafter 2,065,508 $ 3,845,508

Note 9 - Earnings Per Share (Ta

Note 9 - Earnings Per Share (Tables)	12 Months Ended
	Dec. 31, 2015
Notes Tables
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	2015 2014 Weighted average common shares outstanding basic earnings per share 6,175,254 6,129,831 Effect of potential common share issuance: Stock options 108,053 --- Weighted average common shares outstanding Diluted earnings per share 6,283,307 6,129,831

Note 10 - Income Taxes (Tables)

Note 10 - Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2015
Notes Tables
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]	2015 2014 Current: Federal $ -- $ 240,591 State 3,070 7,258 Total current tax provision 3,070 247,849 Deferred: Federal 1,317,125 (1,865,134 ) State - 381,345 Total deferred tax provision 1,317,125 (1,483,789 ) Income tax expense/(benefit) $ 1,320,195 $ (1,235,940 )
Schedule of Deferred Tax Assets and Liabilities [Table Text Block]	2015 2014 Allowance for doubtful accounts $ 6,345 $ 16,826 Inventory capitalization 11,540 23,185 Depreciation and amortization 228,610 (371,669 ) Investment tax credits 475,000 475,000 Research & development tax credits 1,134,168 696,865 Compensation costs 730,909 375,080 Vacation accrual 323,860 242,099 Accrued loss on legal settlement -- 1,674,500 Net operating loss carryforward -- 954,580 Capital loss carryforward 26,627 26,627 Gross deferred tax asset 2,479,839 4,113,093 Less valuation allowance (475,000 ) (475,000 ) Net deferred tax asset $ 2,004,839 $ 3,636,093 Net current deferred tax asset 398,009 2,887,960 Net long-term deferred tax asset 1,606,830 750,133 Net deferred tax asset $ 2,004,839 $ 3,638,093
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]	2015 2014 Expected provision at federal statutory tax rate (34%) $ 1,538,565 $ (1,261,218 ) State taxes, net of federal benefit 3,070 7,258 Stock-based compensation expense (252,288 ) (307,737 ) Net operating loss carryforward 954,581 (37,327 ) Federal research & development credit (437,303 ) (181,782 ) Other permanent differences (486,430 ) 163,521 Impact of New York State taxation change -- 381,345 Income tax expense/(benefit) $ 1,320,195 $ (1,235,940 )

Note 11 - Stockholders' Equity

Note 11 - Stockholders' Equity (Tables)	12 Months Ended
	Dec. 31, 2015
Notes Tables
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]	Beginning Balance Outstanding Granted During Period Exercised During Period Canceled During Period Ending Balance Outstanding Exercisable Year ended December 31, 2014 Number of shares 35,250 -0- -0- 0 35,250 35,250 Weighted average exercise price Per share $ 4.62 -0- -0- -0- $ 4.62 $ 4.62 Year ended December 31, 2015 Number of shares 35,250 -0- -0- -0- 35,250 35,250 Weighted average exercise price Per share $ 4.62 -0- -0- -0- $ 4.62 $ 4.62 Beginning Balance Outstanding Granted During Period Exercised During Period Canceled During Period Ending Balance Outstanding Exercisable Year ended December 31, 2014 Number of shares 152,480 -0- 28,000 -0- 124,480 111,980 Weighted average exercise price Per share $ 4.35 -0- -0- -0- $ 4.57 $ 4.56 Year ended December 31, 2015 Number of shares 124,480 -0- -0- -0- 124,480 111,980 Weighted average exercise price Per share $ 4.35 -0- -0- -0- $ 4.57 $ 4.56 Beginning Balance Outstanding Granted During Period Exercised During Period Canceled During Period Ending Balance Outstanding Exercisable Year ended December 31, 2014 Number of shares -0- 100,000 -0- -0- 100,000 -0- Weighted average exercise price Per share $ 11.17 Year ended December 31, 2015 Number of shares 100,000 -0- -0- -0- 100,000 -0- Weighted average exercise price Per share $ 11.17
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block]	Options Outstanding Options Exercisable Exercise Price Range Number Outstanding Weighted Average Remaining Contractual Weighted Average Exercise Price Intrinsic Value Number Exercisable Weighted Average Exercise Price Intrinsic Value $ 3.00 - 3.99 34,000 2.95 $ 3.65 $ 218,620 34,000 $ 3.65 $ 218,620 $ 4.00 - 4.49 15,930 5.04 $ 4.25 $ 92,872 15,930 $ 4.25 $ 92,872 $ 4.50 - 4.99 100,000 2.78 $ 4.62 $ 546,000 75,000 $ 4.62 $ 546,000 $ 5.00 - 7.99 9,800 6.04 $ 7.90 $ 21,364 9,800 $ 7.90 $ 21,364 $ 8.00 - 12.00 100,000 9.80 $ 11.17 $ 0 0 $ 11.17 $ 0
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block]	Shares of Restricted Stock Weighted Average Grant Date Fair Value Unvested outstanding at January 1, 2014 12,000 $ 10.97 Granted 6,400 $ 14.24 Vested (10,400 ) $ 12.98 Forfeited/Cancelled - Unvested outstanding at December 31, 2014 8,000 $ 10.97 Granted 9,211 $ 13.66 Vested (13,211 ) $ 12.84 Forfeited/Cancelled - Unvested outstanding at December 31, 2015 4,000 $ 10.97 Shares of Restricted Stock Units Weighted Average Grant Date Fair Value Unvested outstanding at January 1, 2014 144,243 $ 11.26 Granted -- Vested (37,925 ) $ 10.09 Forfeited/Cancelled (2,500 ) $ 10.71 Unvested outstanding at December 31, 2014 103,319 $ 11.71 Granted 24,210 $ 14.61 Vested (24,892 ) $ 11.55 Forfeited/Cancelled (8,057 ) $ 10.54 Unvested outstanding at December 31, 2015 94,580 $ 12.55

Note 14 - Segment Reporting (Ta

Note 14 - Segment Reporting (Tables)	12 Months Ended
	Dec. 31, 2015
Notes Tables
Schedule of Segment Reporting Information, by Segment [Table Text Block]	CVD SDC Eliminations Consolidated Assets $ 41,204,471 $ 3,619,304 $ (2,017,571 ) $ 42,806,204 Revenue $ 35,473,057 $ 5,674,258 $ (2,181,928 ) $ 38,965,387 Interest Expense 85,765 6,336 92,101 Depreciation and Amortization 764,467 62,062 826,529 Capital expenditures 212,140 36,165 248,305 Pretax earnings 3.616,280 1,046,911 4,663,191 CVD SDC Eliminations Consolidated Assets $ 44,953,847 $ 4,733,926 $ (4,131,301 ) $ 45,556,472 Revenue $ 23,831,036 $ 5,580,212 $ (1,420,785 ) $ 27,990,463 Interest Expense 100,829 8,589 109,418 Depreciation and Amortization 728,995 68,933 797,928 Capital expenditures 571,240 46,521 617,761 Pretax (loss)/earnings (4,877,892 ) 1,168,422 (3,709,470 )

Note 2 - Summary of Significa32

Note 2 - Summary of Significant Accounting Policies (Details Textual)	12 Months Ended
	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)	Dec. 31, 2013USD ($)
Computer Software, Intangible Asset [Member] | Minimum [Member]
Finite-Lived Intangible Asset, Useful Life	3 years
Computer Software, Intangible Asset [Member] | Maximum [Member]
Finite-Lived Intangible Asset, Useful Life	5 years
Minimum [Member]
Finite-Lived Intangible Asset, Useful Life	5 years
Maximum [Member]
Finite-Lived Intangible Asset, Useful Life	20 years
Including External Customer Orders [Member]
Research and Development Expense	$ 1,727,000	$ 1,555,000
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued	0	0
Asset Impairment Charges	$ 0	0
Number of Wholly Owned Subsidiaries	2
Capitalized Computer Software, Net	$ 21,000	25,000
Capitalized Computer Software, Amortization	16,000	11,000
Amortization of Intangible Assets	24,000	20,000
Research and Development Expense	605,264	877,788
Allowance for Doubtful Accounts Receivable, Current	19,000	24,000
Cash and Cash Equivalents, at Carrying Value	13,073,331	11,966,863	$ 11,247,560
Shipping, Handling and Transportation Costs	$ 57,000	$ 35,000

Note 3 - Costs, Estimated Earni

Note 3 - Costs, Estimated Earnings, and Billings on Uncompleted Contracts (Details) - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Costs incurred on contracts in progress	$ 7,695,281	$ 4,250,299
Estimated earnings	7,635,114	4,541,377
Total	15,330,395	8,791,677
Billings to date	(10,695,377)	(7,621,523)
Cost in excess of billing, net	4,635,018	1,170,154
Included in accompanying balance sheets
Costs and estimated earnings in excess of billings on contracts in progress	$ 4,635,018	2,498,662
Billings in excess of costs and estimated earnings on contracts in progress		$ (1,328,508)

Note 4 - Inventories (Details)

Note 4 - Inventories (Details) - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Raw materials	$ 2,718,328	$ 4,307,913
Work-in-process	174,698	419,731
Finished goods	93,404	114,415
Totals	$ 2,986,430	$ 4,842,059

Note 5 - Property, Plant and 35

Note 5 - Property, Plant and Equipment (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Amortization	$ 24,759	$ 20,007

Note 5 - Major Classes of Prope

Note 5 - Major Classes of Property, Plant and Equipment (Details) - USD ($)		12 Months Ended
		Dec. 31, 2015	Dec. 31, 2014
Land [Member]
Property, plant and equipment, gross		$ 2,220,000	$ 2,220,000
Building [Member]
Property, plant and equipment, gross		6,631,039	6,631,039
Building Improvements [Member]
Property, plant and equipment, gross		5,615,823	5,577,248
Machinery and Equipment [Member]
Property, plant and equipment, gross		2,381,964	2,333,129
Furniture and Fixtures [Member]
Property, plant and equipment, gross		721,919	712,549
Computer Equipment [Member]
Property, plant and equipment, gross		701,367	636,819
Transportation Equipment [Member]
Property, plant and equipment, gross		65,994	65,994
Lab Equipment [Member]
Property, plant and equipment, gross		1,972,838	1,564,082
Property, plant and equipment, gross		20,310,944	19,740,860
Less: Accumulated depreciation and amortization		(5,517,021)	(4,715,577)
Property, plant, and equipment, net		14,793,923	15,025,283
Depreciation and amortization	[1]	$ 826,529	$ 797,928
[1]	Includes amortization expense of $24,759 and $20,007 for the years ending December 31, 2015 and 2014, respectively. Such amortization expense relates to other capitalized and intangible assets.

Note 6 - Intangible Assets (Det

Note 6 - Intangible Assets (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Patents and Copyrights [Member]
Finite-Lived Intangible Asset, Useful Life	17 years	17 years
Finite-lived intangible assets, gross	$ 90,327	$ 77,357
Finite-lived intangible assets, accumulated amortization	36,659	33,153
Finite-lived intangible assets, net	$ 53,668	$ 44,204
Intellectual Property [Member]
Finite-Lived Intangible Asset, Useful Life	15 years	15 years
Finite-lived intangible assets, gross	$ 100,000	$ 100,000
Finite-lived intangible assets, accumulated amortization	93,333	88,333
Finite-lived intangible assets, net	$ 6,667	$ 11,667
Licensing Agreements [Member]
Finite-Lived Intangible Asset, Useful Life	5 years	5 years
Finite-lived intangible assets, gross	$ 10,000	$ 10,000
Finite-lived intangible assets, accumulated amortization	10,000	10,000
Finite-lived intangible assets, net	$ 0	$ 0
Certifications [Member]
Finite-Lived Intangible Asset, Useful Life	3 years	3 years
Finite-lived intangible assets, gross	$ 58,722	$ 58,722
Finite-lived intangible assets, accumulated amortization	58,722	58,722
Finite-lived intangible assets, net	$ 0	$ 0
Other Intangible Assets [Member]
Finite-Lived Intangible Asset, Useful Life	5 years	5 years
Finite-lived intangible assets, gross	$ 21,492	$ 21,492
Finite-lived intangible assets, accumulated amortization	21,492	21,492
Finite-lived intangible assets, net	0	0
Finite-lived intangible assets, gross	280,451	267,571
Finite-lived intangible assets, accumulated amortization	220,206	211,700
Finite-lived intangible assets, net	$ 60,335	$ 55,871

Note 6 - Estimated Amortization

Note 6 - Estimated Amortization Expense Related to Intangible Assets (Details)	Dec. 31, 2015USD ($)
2,016	$ 8,739
2,017	5,303
2,018	3,636
2,019	3,592
2,020	3,591
Thereafter	35,474
Total	$ 60,335

Note 7 - Financing Arrangemen39

Note 7 - Financing Arrangements (Details Textual)	Mar. 31, 2012USD ($)	Aug. 05, 2011USD ($)	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)
HSBC Bank [Member] | Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument, Basis Spread on Variable Rate		1.75%
HSBC Bank [Member] | Revolving Credit Facility [Member] | Prime Rate [Member]
Debt Instrument, Basis Spread on Variable Rate		0.50%
HSBC Bank [Member] | Revolving Credit Facility [Member]
Line of Credit Facility, Maximum Borrowing Capacity		$ 7,000,000
HSBC Bank [Member] | Five Year Term Loan [Member]
Debt Instrument, Term		5 years
Debt Instrument, Face Amount		$ 2,100,000
Loans Payable to Bank			$ 280,000	$ 700,000
HSBC Bank [Member] | HSBC Bank Mortgage Loan [Member] | London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument, Basis Spread on Variable Rate	1.75%
HSBC Bank [Member] | HSBC Bank Mortgage Loan [Member]
Debt Instrument, Face Amount	$ 6,000,000
Debt Instrument, Number of Payments	120
Debt Instrument, Periodic Payment	$ 25,000
Debt Instrument, Periodic Payment Terms, Balloon Payment to be Paid	$ 3,000,000
Debt Instrument, Interest Rate, Stated Percentage			1.9455%	1.9108%
Long-term Debt			$ 3,565,508	$ 3,865,508
HSBC Bank [Member]
Line of Credit Facility, Maximum Borrowing Capacity		$ 9,100,000
Long-term Debt			$ 3,845,508	$ 4,565,508

Note 8 - Long-term Debt (Detail

Note 8 - Long-term Debt (Details) - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Five Year Term Loan [Member]
Secured debt	$ 280,000	$ 700,000
HSBC Bank Mortgage Loan [Member]
Secured debt	3,565,508	3,865,508
Long-term debt	3,845,508	4,565,508
Less: Current maturities	580,000	720,000
Long-term debt	$ 3,265,508	$ 3,845,508

Note 8 - Long-term Debt (Deta41

Note 8 - Long-term Debt (Details) (Parentheticals) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Five Year Term Loan [Member]
Debt Instrument, Face Amount	$ 2,100,000	$ 2,100,000
Debt Instrument, Term	5 years	5 years
Debt Instrument, Periodic Payment	$ 35,000	$ 35,000
Debt Instrument, Interest Rate, Stated Percentage	3.045%	3.045%
Collateral	$ 200,000	$ 400,000
Collateral release amount per year	200,000	200,000
Collateral released	800,000	600,000
Initial Collateral	$ 1,000,000	$ 1,000,000
HSBC Bank Mortgage Loan [Member] | London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument, Basis Spread on Variable Rate	1.75%	1.75%
HSBC Bank Mortgage Loan [Member] | Prime Rate [Member]
Debt Instrument, Basis Spread on Variable Rate	0.50%	0.50%
HSBC Bank Mortgage Loan [Member]
Debt Instrument, Face Amount	$ 6,000,000	$ 6,000,000
Debt Instrument, Periodic Payment	$ 25,000	$ 25,000

Note 8 - Future Maturities of L

Note 8 - Future Maturities of Long-term Debt (Details)	Dec. 31, 2015USD ($)
2,016	$ 580,000
2,017	300,000
2,018	300,000
2,019	300,000
2,020	300,000
Thereafter	2,065,508
Long-term debt	$ 3,845,508

Note 9 - Earnings Per Share (De

Note 9 - Earnings Per Share (Details Textual) - shares	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements	108,053	0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number	259,730
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number	159,730

Note 9 - Calculation of Basic a

Note 9 - Calculation of Basic and Diluted Weighted Average Common Shares (Details) - shares	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Weighted average common shares outstanding basic earnings per share (in shares)	6,175,254	6,129,831
Effect of potential common share issuance:
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements	108,053	0
Weighted average common shares outstanding
Diluted earnings per share (in shares)	6,283,307	6,129,831

Note 10 - Income Taxes (Details

Note 10 - Income Taxes (Details Textual) - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Capital Loss Carryforward [Member]
Tax Credit Carryforward, Amount	$ 27,000
Research Tax Credit Carryforward [Member]
Tax Credit Carryforward, Amount	1,134,000
Deferred Tax Assets, Valuation Allowance	$ 475,000	$ 475,000

Note 10 - Components of Income

Note 10 - Components of Income Taxes (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Current:
Federal		$ 240,591
State	$ 3,070	7,258
Total current tax provision	3,070	247,849
Deferred:
Federal	$ 1,317,125	(1,865,134)
State		381,345
Total deferred tax provision	$ 1,633,254	(1,483,789)
Income tax expense/(benefit)	$ 1,320,195	$ (1,235,940)

Note 10 - Deferred Tax Assets a

Note 10 - Deferred Tax Assets and Liabilities (Details) - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Allowance for doubtful accounts	$ 6,345	$ 16,826
Inventory capitalization	11,540	23,185
Depreciation and amortization	228,610
Depreciation and amortization		(371,669)
Investment tax credits	475,000	475,000
Research & development tax credits	1,134,168	696,865
Compensation costs	730,909	375,080
Vacation accrual	$ 323,860	242,099
Accrued loss on legal settlement		1,674,500
Net operating loss carryforward		954,580
Capital loss carryforward	$ 26,627	26,627
Gross deferred tax asset	2,479,839	4,113,093
Less valuation allowance	(475,000)	(475,000)
Net deferred tax asset	2,004,839	3,636,093
Net current deferred tax asset	398,009	2,887,960
Deferred income taxes	1,606,830	750,133
Net deferred tax asset	$ 2,004,839	$ 3,638,093

Note 10 - Effective Income Tax

Note 10 - Effective Income Tax Rate Reconcilliation (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Expected provision at federal statutory tax rate (34%)	$ 1,538,565	$ (1,261,218)
State taxes, net of federal benefit	3,070	7,258
Stock-based compensation expense	(252,288)	(307,737)
Net operating loss carryforward	954,581	(37,327)
Federal research & development credit	(437,303)	(181,782)
Other permanent differences	$ (486,430)	163,521
Impact of New York State taxation change		381,345
Income tax expense/(benefit)	$ 1,320,195	$ (1,235,940)

Note 11 - Stockholders' Equit49

Note 11 - Stockholders' Equity (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 12, 2007	Nov. 30, 2006	Jun. 15, 1989
The 1989 Non-qualified Stock Option Plan [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period	5 years
The 1989 Non-qualified Stock Option Plan [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period	7 years
The 1989 Non-qualified Stock Option Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period	0	0
Common Stock, Capital Shares Reserved for Future Issuance						700,000
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	4 years
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	0	0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number	35,250	35,250	35,250
The 2001 Non-qualified Stock Option Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period	0	28,000
Common Stock, Capital Shares Reserved for Future Issuance					300,000
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	4 years
Common Stock, Par or Stated Value Per Share					$ 0.01
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	0	0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number	124,480	124,480	152,480
The 2007 Share Incentive Plan [Member] | Directors and Key Employees [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	36,108	42,320
The 2007 Share Incentive Plan [Member] | Key Employee [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross		100,000
The 2007 Share Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period	0	0
Common Stock, Capital Shares Reserved for Future Issuance				750,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	0	100,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number	100,000	100,000	0
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period	7 years
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period	10 years
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value	$ 170,000	$ 135,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized	$ 44,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition	127 days
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value	$ 288,000	383,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized	$ 1,187,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition	1 year 193 days
Selling, General and Administrative Expenses [Member]
Allocated Share-based Compensation Expense	$ 751,000	$ 516,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period	0	28,000
Common Stock, Par or Stated Value Per Share	$ 0.01	$ 0.01
Allocated Share-based Compensation Expense	$ 750,758	$ 515,933
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number	259,730
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value		$ 310,520

Note 11 - Stock Option Plan (De

Note 11 - Stock Option Plan (Details) - $ / shares	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
The 1989 Non-qualified Stock Option Plan [Member]
Beginning balance, number outstanding (in shares)	35,250	35,250
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	0	0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period	0	0
Canceled during period (in shares)	0	0
Ending balance, number outstanding (in shares)	35,250	35,250
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number	35,250	35,250
Beginning balance, number outstanding, weighted average exercise price (in dollars per share)	$ 4.62	$ 4.62
Granted during period, weighted average exercise price (in dollars per share)	0	0
Exercised during period, weighted average exercise price (in dollars per share)	0	0
Canceled during period, weighted average exercise price (in dollars per share)	0	0
Ending balance, number outstanding, weighted average exercise price (in dollars per share)	4.62	4.62
Beginning balance, number exercisable, weighted average exercise price (in dollars per share)	$ 4.62	$ 4.62
The 2001 Non-qualified Stock Option Plan [Member]
Beginning balance, number outstanding (in shares)	124,480	152,480
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	0	0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period	0	28,000
Canceled during period (in shares)	0	0
Ending balance, number outstanding (in shares)	124,480	124,480
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number	111,980	111,980
Beginning balance, number outstanding, weighted average exercise price (in dollars per share)	$ 4.57	$ 4.35
Granted during period, weighted average exercise price (in dollars per share)	0	0
Exercised during period, weighted average exercise price (in dollars per share)	0	0
Canceled during period, weighted average exercise price (in dollars per share)	0	0
Ending balance, number outstanding, weighted average exercise price (in dollars per share)	4.57	4.57
Beginning balance, number exercisable, weighted average exercise price (in dollars per share)	$ 4.56	$ 4.56
The 2007 Share Incentive Plan [Member]
Beginning balance, number outstanding (in shares)	100,000	0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	0	100,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period	0	0
Canceled during period (in shares)	0	0
Ending balance, number outstanding (in shares)	100,000	100,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number	0	0
Beginning balance, number outstanding, weighted average exercise price (in dollars per share)		$ 11.17
Granted during period, weighted average exercise price (in dollars per share)
Exercised during period, weighted average exercise price (in dollars per share)
Canceled during period, weighted average exercise price (in dollars per share)
Ending balance, number outstanding, weighted average exercise price (in dollars per share)	$ 11.17
Beginning balance, number exercisable, weighted average exercise price (in dollars per share)
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period	0	28,000
Ending balance, number outstanding (in shares)	259,730
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number	159,730

Note 11 - Outstanding and Exerc

Note 11 - Outstanding and Exercisable Options (Details)	12 Months Ended
	Dec. 31, 2015USD ($)$ / sharesshares
Exercise Price Range 1 [Member]
Exercise price range, lower limit (in dollars per share)	$ 3
Exercise price range, upper limit (in dollars per share)	$ 3.99
Number of options outstanding (in shares) | shares	34,000
Number of options outstanding, weighted average remaining contractual term	2 years 346 days
Number of options outstanding, weighted average exercise price (in dollars per share)	$ 3.65
Number of options outstanding, intrinsic value | $	$ 218,620
Number of options exercisable (in shares) | shares	34,000
Number of options exercisable, weighted average exercise price (in dollars per share)	$ 3.65
Number of options exercisable, intrinsic value | $	$ 218,620
Exercise Price Range 2 [Member]
Exercise price range, lower limit (in dollars per share)	$ 4
Exercise price range, upper limit (in dollars per share)	$ 4.49
Number of options outstanding (in shares) | shares	15,930
Number of options outstanding, weighted average remaining contractual term	5 years 14 days
Number of options outstanding, weighted average exercise price (in dollars per share)	$ 4.25
Number of options outstanding, intrinsic value | $	$ 92,872
Number of options exercisable (in shares) | shares	15,930
Number of options exercisable, weighted average exercise price (in dollars per share)	$ 4.25
Number of options exercisable, intrinsic value | $	$ 92,872
Exercise Price Range 3 [Member]
Exercise price range, lower limit (in dollars per share)	$ 4.50
Exercise price range, upper limit (in dollars per share)	$ 4.99
Number of options outstanding (in shares) | shares	100,000
Number of options outstanding, weighted average remaining contractual term	2 years 284 days
Number of options outstanding, weighted average exercise price (in dollars per share)	$ 4.62
Number of options outstanding, intrinsic value | $	$ 546,000
Number of options exercisable (in shares) | shares	75,000
Number of options exercisable, weighted average exercise price (in dollars per share)	$ 4.62
Number of options exercisable, intrinsic value | $	$ 546,000
Exercise Price Range 4 [Member]
Exercise price range, lower limit (in dollars per share)	$ 5
Exercise price range, upper limit (in dollars per share)	$ 7.99
Number of options outstanding (in shares) | shares	9,800
Number of options outstanding, weighted average remaining contractual term	6 years 14 days
Number of options outstanding, weighted average exercise price (in dollars per share)	$ 7.90
Number of options outstanding, intrinsic value | $	$ 21,364
Number of options exercisable (in shares) | shares	9,800
Number of options exercisable, weighted average exercise price (in dollars per share)	$ 7.90
Number of options exercisable, intrinsic value | $	$ 21,364
Exercise Price Range 5 [Member]
Exercise price range, lower limit (in dollars per share)	$ 8
Exercise price range, upper limit (in dollars per share)	$ 12
Number of options outstanding (in shares) | shares	100,000
Number of options outstanding, weighted average remaining contractual term	9 years 292 days
Number of options outstanding, weighted average exercise price (in dollars per share)	$ 11.17
Number of options outstanding, intrinsic value | $	$ 0
Number of options exercisable (in shares) | shares	0
Number of options exercisable, weighted average exercise price (in dollars per share)	$ 11.17
Number of options exercisable, intrinsic value | $	$ 0

Note 11 - Restricted Stock and

Note 11 - Restricted Stock and Restricted Stock Units Activity (Details) - $ / shares	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Restricted Stock [Member]
Unvested outstanding at beginning of period (in shares)	8,000	12,000
Unvested outstanding at beginning of period, weighted average grant date fair value (in dollars per share)	$ 10.97	$ 10.97
Granted (in shares)	9,211	6,400
Granted, weighted average grant date fair value (in dollars per share)	$ 13.66	$ 14.24
Vested (in shares)	(13,211)	(10,400)
Vested, weighted average grant date fair value (in dollars per share)	$ 12.84	$ 12.98
Forfeited/Cancelled (in shares)
Forfeited/Cancelled, weighted average grant date fair value (in dollars per share)
Unvested outstanding at end of period (in shares)	4,000	8,000
Unvested outstanding at end of period, weighted average grant date fair value (in dollars per share)	$ 10.97	$ 10.97
Restricted Stock Units (RSUs) [Member]
Unvested outstanding at beginning of period (in shares)	103,319	144,243
Unvested outstanding at beginning of period, weighted average grant date fair value (in dollars per share)	$ 11.71	$ 11.26
Granted (in shares)	24,210
Granted, weighted average grant date fair value (in dollars per share)	$ 14.61
Vested (in shares)	(24,892)	(37,925)
Vested, weighted average grant date fair value (in dollars per share)	$ 11.55	$ 10.09
Forfeited/Cancelled (in shares)	(8,057)	(2,500)
Forfeited/Cancelled, weighted average grant date fair value (in dollars per share)	$ 10.54	$ 10.71
Unvested outstanding at end of period (in shares)	94,580	103,319
Unvested outstanding at end of period, weighted average grant date fair value (in dollars per share)	$ 12.55	$ 11.71

Note 12 - Defined Contributio53

Note 12 - Defined Contribution Plan (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Defined Contribution Plan, Employer Discretionary Contribution Amount	$ 0	$ 0
Defined Contribution Plan, Administrative Expenses	$ 3,080	$ 2,800

Note 13 - Significant Risks a54

Note 13 - Significant Risks and Uncertainties (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | Customer A [Member]
Concentration Risk, Percentage	49.60%	50.20%
Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | Customer B [Member]
Concentration Risk, Percentage	13.70%
Cash, Uninsured Amount	$ 11,966,000	$ 10,216,000
Number Of Major Customers	1	1
Export Sales To Unaffiliated Customers As Percentage Of Total Sales	9.00%	20.20%

Note 14 - Segment Reporting (De

Note 14 - Segment Reporting (Details Textual)	12 Months Ended
	Dec. 31, 2015
Number of Operating Segments	2

Note 14 - Segment Information (

Note 14 - Segment Information (Details) - USD ($)		12 Months Ended
		Dec. 31, 2015	Dec. 31, 2014
CVD [Member] | Operating Segments [Member]
Assets		$ 41,204,471	$ 44,953,847
Revenue		35,473,057	23,831,036
Interest Expense		85,765	100,829
Depreciation and amortization		764,467	728,995
Capital expenditures		212,140	571,240
Pretax earnings		3.61628	(4,877,892)
SDC [Member] | Operating Segments [Member]
Assets		3,619,304	4,733,926
Revenue		5,674,258	5,580,212
Interest Expense		6,336	8,589
Depreciation and amortization		62,062	68,933
Capital expenditures		36,165	46,521
Pretax earnings		1,046,911	1,168,422
Intersegment Eliminations [Member]
Assets		(2,017,571)	(4,131,301)
Revenue		(2,181,928)	(1,420,785)
Assets		42,806,204	45,556,472
Revenue		38,965,387	27,990,463
Interest Expense		92,101	109,418
Depreciation and amortization	[1]	826,529	797,928
Capital expenditures		248,305	617,761
Pretax earnings		$ 4,663,191	$ (3,709,470)
[1]	Includes amortization expense of $24,759 and $20,007 for the years ending December 31, 2015 and 2014, respectively. Such amortization expense relates to other capitalized and intangible assets.

Note 15 - Commitments and Con57

Note 15 - Commitments and Contingencies (Details Textual) - USD ($)	Sep. 04, 2015	Jan. 29, 2015
Settled Litigation [Member]
Litigation Settlement, Amount	$ 995,000
Payments for Legal Settlements		$ 4,925,000