Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Mar. 22, 2019 | Jun. 30, 2018 | |
Document Information [Line Items] | |||
Entity Registrant Name | CVD EQUIPMENT CORP | ||
Entity Central Index Key | 0000766792 | ||
Trading Symbol | cvv | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Common Stock, Shares Outstanding (in shares) | 6,538,388 | ||
Entity Public Float | $ 34,195,157 | ||
Entity Shell Company | false | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2018 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
ASSETS | ||
Cash and cash equivalents | $ 11,439,361 | $ 14,210,909 |
Accounts receivable, net | 4,065,220 | 2,058,617 |
Contract assets | 1,357,797 | 8,397,024 |
Inventories, net | 1,861,873 | 2,965,623 |
Other current assets | 723,204 | 167,425 |
Total Current Assets | 19,447,455 | 27,799,598 |
Property, plant and equipment, net | 30,402,558 | 28,839,457 |
Deferred income taxes | 2,104,414 | 1,609,186 |
Other assets | 64,583 | 67,847 |
Intangible assets, net | 495,552 | 662,162 |
Total Assets | 52,514,562 | 58,978,250 |
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
Accounts payable | 713,194 | 1,174,968 |
Accrued expenses | 1,503,309 | 2,738,373 |
Current maturities of long-term debt | 857,590 | 747,324 |
Contract Liabilities | 536,524 | 466,313 |
Deferred revenue | 459,899 | 291,953 |
Total Current Liabilities | 4,070,516 | 5,418,931 |
Long-term acquisition related contingent payments | 200,000 | |
Long-term debt, net of current portion | 12,051,720 | 12,705,683 |
Total Long-Term Liabilities | 12,051,720 | 12,905,683 |
Total Liabilities | 16,122,236 | 18,324,614 |
Commitments and contingencies | ||
Stockholders’ Equity: | ||
Common stock - $0.01 par value – 20,000,000 shares authorized; issued and outstanding 6,535,888 at December 31, 2018 and 6,458,714 at December 31, 2017 | 65,358 | 64,587 |
Additional paid-in capital | 26,148,256 | 25,209,316 |
Retained earnings | 10,178,712 | 15,379,733 |
Total Stockholders’ Equity | 36,392,326 | 40,653,636 |
Total Liabilities and Stockholders’ Equity | $ 52,514,562 | $ 58,978,250 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Dec. 31, 2018 | Dec. 31, 2017 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Common stock, shares issued (in shares) | 6,535,888 | 6,458,714 |
Common stock, shares outstanding (in shares) | 6,535,888 | 6,458,714 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue | $ 24,334,331 | $ 41,128,639 |
Cost of revenue | 19,156,201 | 23,528,427 |
Gross profit | 5,178,130 | 17,600,212 |
Operating expenses | ||
Research and development | 606,618 | 437,157 |
Selling and shipping | 1,620,089 | 1,404,938 |
General and administrative | 8,205,942 | 8,539,244 |
Total operating expenses | 10,432,649 | 10,381,339 |
Operating (loss) income | (5,254,519) | 7,218,873 |
Other income (expense): | ||
Interest income | 159,953 | 80,518 |
Interest expense | (463,017) | (106,280) |
Other income (expense) | 2,244 | |
Total other expense, net | (303,064) | (23,518) |
(Loss) income before income tax | (5,557,583) | 7,195,355 |
Income tax (benefit) expense | (356,562) | 1,933,944 |
Net (loss) income | $ (5,201,021) | $ 5,261,411 |
Basic (loss) income per common share (in dollars per share) | $ (0.80) | $ 0.83 |
Diluted (loss) income per common share (in dollars per share) | $ (0.80) | $ 0.82 |
Weighted average common shares Outstanding-basic (in shares) | 6,495,597 | 6,375,848 |
Weighted average common shares Outstanding-diluted (in shares) | 6,495,597 | 6,387,464 |
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 (in shares) at Dec. 31, 2016 | 6,346,590 | |||
Balance at Dec. 31, 2016 | $ 63,466 | $ 24,131,474 | $ 10,118,322 | $ 34,313,262 |
Exercise of stock options (in shares) | 36,800 | 34,000 | ||
Exercise of stock options | $ 368 | 145,852 | $ 146,220 | |
Stock-based compensation (in shares) | 75,324 | |||
Stock-based compensation | $ 753 | 931,990 | 932,743 | |
Net (loss) income | 5,261,411 | $ 5,261,411 | ||
Balance (in shares) at Dec. 31, 2017 | 6,458,714 | 6,458,714 | ||
Balance at Dec. 31, 2017 | $ 64,587 | 25,209,316 | 15,379,733 | $ 40,653,636 |
Exercise of stock options (in shares) | 0 | |||
Exercise of stock options | ||||
Stock-based compensation (in shares) | 77,174 | |||
Stock-based compensation | $ 771 | 938,940 | 939,711 | |
Net (loss) income | (5,201,021) | $ (5,201,021) | ||
Balance (in shares) at Dec. 31, 2018 | 6,535,888 | 6,535,888 | ||
Balance at Dec. 31, 2018 | $ 65,358 | $ 26,148,256 | $ 10,178,712 | $ 36,392,326 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | ||
Cash flows from operating activities: | |||
Net (loss) income | $ (5,201,021) | $ 5,261,411 | |
Adjustments to reconcile net (loss) income to net cash used in operating activities | |||
Stock-based compensation | 939,711 | 932,743 | |
Depreciation and amortization | [1] | 1,141,161 | 867,277 |
Deferred income tax benefit | (495,228) | 831,148 | |
Provision for inventory obsolescence | 135,819 | 606,856 | |
Provision for bad debts | 24,000 | 2,000 | |
Increase (decrease) in operating assets | |||
Accounts receivable | (2,030,603) | (1,453,094) | |
Contract assets | 7,039,227 | (5,800,506) | |
Inventories | 967,931 | (260,940) | |
Other current assets | (555,779) | 68,112 | |
Increase (decrease) in operating liabilities | |||
Accounts payable | (461,774) | 431,836 | |
Accrued expenses | (1,235,064) | 795,552 | |
Contract liabilities | 70,211 | (4,796,025) | |
Deferred revenue | 167,946 | 134,133 | |
Total adjustments | 5,707,558 | (7,640,908) | |
Net cash provided (used in) by operating activities | 506,537 | (2,379,497) | |
Cash flows from investing activities: | |||
Capital expenditures | (2,537,652) | (889,298) | |
Purchase of building | (14,000,886) | ||
Purchase of MesoScribe Technologies | (419,813) | ||
Other assets | 3,264 | (10,503) | |
Net cash (used in) investing activities | (2,534,388) | (15,320,500) | |
Cash flows from financing activities | |||
Current maturities of long-term debt | 110,266 | ||
Net proceeds from stock options exercised | 146,220 | ||
Proceeds from mortgage payable | 10,387,500 | ||
Payments of long-term debt | (853,963) | (300,000) | |
Net cash (used in) provided by financing activities | (743,697) | 10,233,720 | |
Net decrease in cash and cash equivalents | (2,771,548) | (7,466,277) | |
Cash and cash equivalents at beginning of year | 14,210,909 | 21,677,186 | |
Cash and cash equivalents at end of year | 11,439,361 | 14,210,909 | |
Supplemental disclosure of cash flow information: | |||
Income taxes paid | 472,542 | 601,800 | |
Interest paid | $ 463,850 | $ 71,263 | |
[1] | Includes amortization expense of $115,800 and $45,645 for the year ending December 31, 2018 and the year ended December 31, 2017, respectively. Such amortization expense relates to other capitalized and intangibles assets. |
Note 1 - Business Description
Note 1 - Business Description | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Business Description and Basis of Presentation [Text Block] | Note 1 CVD Equipment Corporation and its subsidiaries (the “Company”), a New York corporation, was organized and commenced operations in October 1982. one |
Note 2 - Summary of Significant
Note 2 - Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | Note 2 Principles of Consolidation The consolidated financial statements include the accounts of CVD Equipment Corporation and its wholly owned subsidiaries. The Company has five 411519R, 555 555 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 input 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. Revenue Recognition On January 1, 2018, 606, not 606 not not January 1, 2018 606, not Impact to Previously Reported Results (In thousands) Adoption of As Reported ASC 606 As Adjusted Costs and estimated earnings in excess of billings $ 8,397 $ (8,397 ) $ --- Contract assets --- 8,397 8,397 Billings in excess of costs and estimated earnings 466 (466 ) --- Contract liabilities --- 466 466 The Company designs, manufactures and sells custom chemical vapor deposition equipment through contractual agreements. These system sales require the Company to deliver functioning equipment that is generally completed within three eighteen Incurred 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. Contract material costs are included in incurred costs when the project materials have been purchased or moved to work in process as required by the project’s engineering design. Cost based input methods of revenue recognition require the Company to make estimates of costs to complete the projects. In making such estimates, significant judgment is required to evaluate assumptions related to the costs to complete the projects, including materials, labor and other system costs. If the estimated total costs on any contract are greater than the net contract revenues, the Company recognizes the entire estimated loss in the period the loss becomes known and can be reasonably estimated. “Contract assets,” include unbilled amounts typically resulting from sales under contracts when revenue recognition is utilized and revenue recognized exceeds the amount billed to the customer. The amount may not “Contract liabilities,” include advance payments and billings in excess of revenue recognized. Contract liabilities are classified as current based on our contract operating cycle and reported on a contract-by-contract basis, net of revenue recognized, at the end of each reporting period. For outright sales of products, revenue is recognized when control of the promised products or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those products or services (the transaction price). A performance obligation is a promise in a contract to transfer a distinct product or service to a customer and is the unit of account under ASC 606. Inventories Inventories are valued at the lower of cost (determined on the first first Income Taxes On December 22, 2017, 1986, not 35% 21%; December 31, 2017. 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 not 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 The Company recognizes the tax benefit from an uncertain tax position only if it is more-likely-than- not 50% 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 December 31, 2018 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, Delaware, Michigan, Minnesota, New Hampshire and Wisconsin. The Company is no 2015. Impairment of Long Lived Assets and Intangibles Long-lived assets consist primarily of property, plant, and equipment. Intangibles consist of patents, copyrights and intellectual property, licensing agreements and certifications. Long-lived assets are reviewed for impairment whenever events or circumstances indicate their carrying value may not 360 10 35, no December 31, 2018 2017. Computer Software The Company follows ASC 350 40, no December 31, 2018 $427,000 December 31, 2017, three five $144,500 $36,000 December 31, 2018 2017, 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 20 2018 2017 $115,800 $46,000, Research & Development Research and development costs are expensed as incurred. In 2012 2018, $607,000 2017, $437,000 Accounts Receivable The Company sells products and services to various companies across several industries in the ordinary course of business. The Company performs ongoing credit evaluations to assess the probability of accounts receivable collection based on a number of factors, including past transaction experience, evaluation of their credit history and review of the invoicing terms of the contract to determine the financial strength of its customers. The Company has accounts receivables from certain customers that exceed 10%. December 31, 2018 2017, two 42% three 60%, Accounts receivable is presented net of an allowance for doubtful accounts of $24,000 $2,000 December 31, 2018 2017, may Sales Concentrations Revenue to a single customer in any one 10.0% 38.2% 66.1% 2018 2017. not may may Export sales to customers represented approximately 9.9% 9.6% December 31, 2018 2017, 2018 2017 not Product Warranty The Company records warranty costs as incurred and does not 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 had cash and cash equivalents of $11.4 $14.2 December 31, 2018 2017, three $7.5 $0 December 31, 2018 December 31, 2017, The Company places most of its temporary cash investments with financial institutions, which from time to time may December 31, 2018 December 31, 2017 $6,920,000 $12,198,000 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 treasury bills, certificates of deposit or 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. Business Combination The Company has accounted for its acquisitions of the assets of both Tantaline A/S and MesoScribe Technologies, Inc. using the acquisition method. The Company has allocated the purchase price to the assets acquired based on their estimated fair values at the acquisition dates. Acquisition-Related Contingent Consideration Acquisition-related contingent consideration represents an obligation of the Company to transfer additional assets or equity interests if specified future events occur or conditions are met. This contingency is accounted for at fair value either as a liability or equity depending on the terms of the acquisition agreement. The Company determines the estimated fair value of contingent consideration as of the acquisition date, and subsequently at the end of each reporting period. In doing so, the Company makes significant estimates and assumptions regarding future events or conditions being achieved under the subject contingent agreement as well as the appropriate discount rate to apply. Stock-Based Compensation The Company records stock-based compensation in accordance with the provisions set forth in ASC 718, 718 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 $61,200 $42,000 December 31, 2018 2017, Recently Adopted Accounting Pronouncement In February 2018, 2018 02, Income Statement-Reporting Comprehensive Income (Topic 220 2017 December 15, 2018 In June 2016, 2016 13, Financial Instruments – Credit Losses (Topic 326 December 15, 2019 December 15, 2018 In February 2016 No. 2016 02, 842 2016 02 2016 02 not 12 not 2016 02 December 15, 2018. may An entity that elects to apply the practical expedients will, in effect, continue to account for leases that commence before the effective date in accordance with previous GAAP unless the lease is modified, except that lessees are required to recognize a right-of-use asset and a lease liability for all operating leases at each reporting date based on the present value of the remaining minimum rental payments that were tracked and disclosed under previous GAAP. In addition, FASB has amended Topic 842 842 2016 02. not We believe there is no not may |
Note 3 - Contracts in Progress
Note 3 - Contracts in Progress | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Revenue from Contract with Customer [Text Block] | Note 3 – Contracts in Progress The following table represents a disaggregation of revenue from contracts for the years ended December 31, 2018 December 31, 2017: (In thousands) 2018 2017 Category Aerospace $ 8,115 $ 26,787 Industrial 7,043 6,629 Research 4,114 2,617 Point in time 5,062 5,095 Net revenue $ 24,334 $ 41,128 Judgment is required to evaluate assumptions including the amount of net contract revenues and the total estimated costs to determine our progress towards contract completion and to calculate the corresponding amount of revenue to recognize. Changes in estimates for sales of systems occur for a variety of reasons, including but not may December 31, 2018 December 31, 2017 Also included in the table is the net change in estimate as a percentage of the aggregate revenue for such projects. (In thousands) 2018 2017 Increase in revenue from net changes in transaction prices $ 254 $ 148 Decrease in revenue from net changes in input cost estimates (268 ) (126 ) Net (decrease) increase in revenue from net changes in estimates $ (14 ) $ 22 Number of projects 10 2 Net change in estimate as a percentage of aggregate revenue for associated projects (0.08 %) 0.06 % For the years ended December 31, 2018 December 31, 2017, $14,000 $22,000 Contract Assets and Liabilities Contract assets consist of (i) retainage which represent the earned, but unbilled, portion for which payment is deferred by the customer until certain contractual milestones are met; and (ii) unbilled receivables which represent revenue that has been recognized in advance of billing the customer, which is common for long-term contracts. Contract liabilities consist of customer advances and billings in excess of revenue recognized. For the year ended December 31, 2018, $7 December 31, 2018, $70,000 Contract assets and contract liabilities on input method type contracts in progress are summarized as follows: 2018 2017 Costs incurred on contracts in progress $ 24,913,254 $ 22,079,680 Estimated earnings 26,040,219 16,499,697 50,953,473 38,579,377 Billings to date (50,132,200 ) (30,648,666 ) $ 821,273 $ (7,930,711 ) Included in accompanying balance sheets Under the following captions: Contract assets $ 1,357,797 $ 8,397,024 Contract liabilities $ (536,524 ) $ (466,313 ) |
Note 4 - Inventories
Note 4 - Inventories | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | Note 4 - Inventories Inventories consist of: 2018 2017 Raw materials $ 2,016,488 $ 3,156,016 Work-in-process 205,385 389,630 Finished goods - 26,977 Gross inventories 2,221,873 3,572,623 Less reserve for obsolescence (360,000 ) (607,000 ) Inventories, net $ 1,861,873 $ 2,965,623 |
Note 5 - Property, Plant and Eq
Note 5 - Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2018 | |
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: 2018 2017 Land $ 6,929,000 $ 6,929,000 Buildings 15,920,925 15,917,925 Building improvements 6,603,121 5,805,045 Machinery and equipment 3,385,357 3,246,877 Furniture and fixtures 611,190 563,959 Computer equipment 487,007 587,147 Software 441,376 427,441 Transportation equipment 65,995 65,994 Lab equipment 1,985,179 1,979,180 Construction in Progress 946,960 - Totals at cost $ 37,376,110 $ 35,522,568 Less: Accumulated depreciation and amortization (6,973,552 ) (6,683,111 ) Property, plant and equipment, net $ 30,402,558 $ 28,839,457 Depreciation and amortization expense (1) $ 1,141,161 $ 867,277 ( 1 $115,800 $45,645 December 31, 2018 December 31, 2017, |
Note 6 - Intangible Assets
Note 6 - Intangible Assets | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Intangible Assets Disclosure [Text Block] | Note 6 Intangible assets consisted of the following: 2018 Intangible Assets Weighted Average Amortization Period Cost Accumulated Amortization Carrying Amount Patents, Copyrights and Intellectual Property 14 $ 796,080 $ 300,528 $ 495,552 Licensing Agreement 5 10,000 10,000 0 Certifications 4 58,486 58,486 0 Totals $ 864,566 $ 369,014 $ 495,552 2017 Intangible Assets Weighted Average Amortization Period Cost Accumulated Amortization Carrying Amount Patents, Copyrights and Intellectual Property 18 $ 839,831 $ 177,669 $ 662,162 Licensing Agreement 5 10,000 10,000 0 Certifications 3 58,722 58,722 0 Other 5 21,492 21,492 0 Totals $ 930,045 $ 267,883 $ 662,162 The estimated amortization expense related to intangible assets for each of the five December 31, 2018 Year Ended 2019 $ 121,613 2020 121,613 2021 121,613 2022 36,613 2023 36,613 Thereafter 57,487 Total $ 495,552 |
Note 7 - Financing Arrangements
Note 7 - Financing Arrangements | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Short-term Debt [Text Block] | Note 7 – Financing Arrangements The Company had a revolving credit facility with HSBC Bank, USA, N.A. (“HSBC”) providing up to $7 September 1, 2018. The Company has a loan agreement with HSBC which is secured by a mortgage against our Central Islip facility. The loan is payable in 120 $25,000 March 2022. December 31, 2018 December 31, 2017 $2.7 $3.0 1.75% 0.5%. On November 30, 2017, 555 $13,850,000 555 $10,387,500, 555 November 30, 2017 ( November 30, 2017, The Loan is payable in 60 $62,481 3.9148%. December 1, 2022. November 30, 2017 ( At December 31, 2018, not one March 26, 2019 April 1, 2020. |
Note 8 - Long-term Debt
Note 8 - Long-term Debt | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Long-term Debt [Text Block] | Note 8 Long-term debt as of December 31 consists of the following: 2018 2017 HSBC $10,387,500 Mortgage payable secured by real property Buildings and improvements at 555 N Research Drive, Central Islip, NY payable in monthly principle installments of $62,481 including Interest at a rate of 3.9148% maturing on December 1, 2022. $ 10,043,802 $ 10,387,500 MesoScribe Technologies, Inc. $300,000 acquisition related contingent payment 200,000 300,000 HSBC $6,000,000 Mortgage payable secured by building 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. 2,665,508 2,965,507 Total long-term debt $ 12,909,310 $ 13,653,007 Less: Current maturities (857,590 ) (747,324 ) Long-term debt $ 12,051,720 $ 12,905,683 Future maturities of long-term debt as of December 31, 2018 2019 $ 857,590 2020 674,593 2021 690,813 2022 10,686,314 2023 - Thereafter - Total long-term debt $ 12,909,310 |
Note 9 - Earnings Per Share
Note 9 - Earnings Per Share | 12 Months Ended |
Dec. 31, 2018 | |
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: 2018 2017 Weighted average common shares outstanding basic earnings per share 6,495,597 6,375,848 Effect of potential common share issuance: Stock options - 11,616 Weighted average common shares outstanding Diluted earnings per share 6,495,597 6,387,464 At December 31, 2018, 407,930 257,930 387,930 207,930 December 31, 2017. December 31, 2017, 22,930 |
Note 10 - Income Taxes
Note 10 - Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | Note 1 0 – Income Taxes The Tax Cuts and Jobs Act was enacted on December 22, 2017. 35% 21%. In accordance with the accounting standard ASC 740 As a result of the reduction of the corporate income tax rate to 21%, $689,000. December 31, 2018, $414,000 not 2032 2037. not The expense/(benefit) for income taxes includes the following: 2018 2017 Current: Federal $ 58,304 $ 1,091,216 State 80,367 11,580 Total current tax provision 138,671 1,102,796 Deferred: Federal (495,233 ) 831,148 State --- --- Total deferred tax provision (495,233 ) 831,148 Income tax (benefit)/expense $ (356,562 ) $ 1,933,944 The tax effects of temporary differences giving rise to significant portions of the net deferred taxes are as follows: 2018 2017 Deferred income tax assets: Allowance for doubtful accounts $ 5,060 $ 773 Inventory capitalization 6,197 6,813 Depreciation and amortization - 70,272 Research & development tax credits 413,680 496,930 Compensation costs 1,035,983 838,643 Vacation accrual 167,644 179,309 Interest expense carryforward 66,149 --- Net operating loss carryforward 832,565 --- Capital loss carryforward 16,446 16,446 Total deferred tax asset 2,543,724 1,609,186 Deferred incomes tax liability: Property and equipment - tax over book depreciation (439,310 ) --- Less valuation allowance --- --- Net long-term deferred tax asset $ 2,104,414 $ 1,609,186 The reconciliation of the federal statutory income tax rate to our effective tax rate is as follows: 2018 2017 Expected provision at federal statutory tax rate (21% and 34%, respectively) $ (1,167,092 ) $ 2,446,421 Foreign tax loss 99,215 293,589 Adjustment to 2017 tax return 58,304 - State taxes, net of federal benefit 80,367 11,580 Stock-based compensation expense 185,675 (161,429 ) Net operating loss carryforward - 7,280 Federal research & development credit (83,245 ) (781,760 ) Other permanent differences 470,214 118,263 Income tax expense/(benefit) $ (356,562 ) $ 1,933,944 The Company’s foreign subsidiary, CVD Tantaline ApS incurred a loss of approximately $463,000, $102,000 December 31, 2018, 22% December 31, 2017 $865,000 $190,000. |
Note 11 - Stockholders' Equity
Note 11 - Stockholders' Equity | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Shareholders' Equity and Share-based Payments [Text Block] | N ote 1 1 2001 In November 2006, July 2001, may 300,000 $.01 four one July 22, 2011. 2007 On December 12, 2007, 2007 750,000 may December 12, 2017. 2017, 75,324 three 140,000 December, 2017. 2016 On December 9, 2016, 2016 “2016 750,000 may 2016 December 9, 2026. 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 seven ten $940,000 $933,000 December 31, 2018 2017, A summary of the stock option activity related to the 2001 2007 2016 January 1, 2017 December 31, 2018 2001 Beginning Granted Exercised Canceled Ending Balance During During During Balance Outstanding Period Period Period Outstanding Exercisable Year ended December 31, 2017 Number of shares 59,730 - 36,800 - 22,930 22,930 Weighted average exercise price per share $ 4.51 - $ 3.97 - $ 5.36 $ 5.36 Year ended December 31, 2018 - Number of shares 22,930 - - - 22,930 22,930 Weighted average exercise price per share $ 5.36 - - - $ 5.36 $ 5.36 2007 Beginning Granted Exercised Canceled Ending Balance During During During Balance Outstanding Period Period Period Outstanding Exercisable Year ended December 31, 2017 Number of shares 225,000 140,000 - - 365,000 185,000 Weighted average exercise price per share $ 9.43 $ 10.82 - - $ 12.35 $ 13.76 Year ended December 31, 2018 Number of shares 365,000 - - - 365,000 235,000 Weighted average exercise price per share $ 12.35 - - - $ 12.35 $ 13.15 2016 Beginning Granted Exercised Canceled Ending Balance During During During Balance Outstanding Period Period Period Outstanding Exercisable Year ended December 31, 2017 Number of shares - - - - - - Weighted average exercise price per share - - - - - - Year ended December 31, 2018 Number of shares - 20,000 - - 20,000 - Weighted average exercise price per share - $ 8.07 - - $ 8.07 - The Company has 407,930 three December 31, 2018. The following table summarizes information about the outstanding and exercisable options at December 31, 2018. Options Outstanding Options Exercisable Weighted Weighted Weighted Average Average Average Exercise Number Remaining Exercise Intrinsic Number Exercise Intrinsic Price Range Outstanding Contractual Price Value Exercisable Price Value $4.00 - 7.00 15,930 1 $4.25 $0 15,930 $4.25 $0 $7.01 - 10.00 27,000 2 $8.03 $0 7,000 $7.90 $0 $10.01 - 12.00 240,000 7.3 $10.88 $0 110,000 $11.05 $0 $12.01 - 15.00 125,000 3.5 $15.00 $0 125,000 $15.00 $0 No December 31, 2018. 34,000 December 31, 2017 $256,000. Restricted Stock Awards The following table summarizes restricted stock awards for the years ended December 31, 2018 2017: Weighted Average Grant Shares of Date Fair Restricted Stock Value Unvested outstanding at December 31, 2016 0 $ 0 Granted 9,300 $ 9.70 Vested (9,300 ) $ 9.70 Forfeited/Cancelled Unvested outstanding at December 31, 2017 0 $ 0 Granted 11,000 $ 10.53 Vested (11,000 ) $ 10.53 Forfeited/Cancelled Unvested outstanding at December 31, 2018 0 $ 0 The total fair value of shares of restricted stock awards vested for the years ended December 31, 2018 2017 $116,000 $90,000 Restricted Stock Units The following table summarizes restricted stock units for the years ended December 31, 2018 December 31, 2017: Weighted Shares of Average Grant Restricted Date Fair Stock Units Value Unvested outstanding at December 31, 2016 114,090 $ 10.47 Granted 23,680 $ 9.29 Vested (63,775 ) $ 9.94 Forfeited/Cancelled (125 ) $ 14.61 Unvested outstanding at December 31, 2017 73,870 $ 10.05 Granted 39,260 $ 8.75 Vested (67,067 ) $ 9.26 Forfeited/Cancelled 0 0 Unvested outstanding at December 31, 2018 46,063 $ 8.25 The total fair value of vested restricted stock units was $621,000 $637,000 December 31, 2018 2017. The fair value of the outstanding restricted stock units will be recorded as stock compensation expense over the vesting period. As of December 31, 2018, $335,000 1.49 During the years ended December 31, 2018 2017, $940,000 $933,000 718. |
Note 12 - Defined Contribution
Note 12 - Defined Contribution Plan | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | N ote 1 2 The Company maintains a 401 401 three Participants may December 31, 2018 2017, $8,425 $13,325, No 2018 2017. |
Note 13 - Segment Reporting
Note 13 - Segment Reporting | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | Note 1 3 – Segment Reporting The Company adopted ASC 280, three 2 The following table presents certain information regarding the Company’s segments as of December 31, 2018 December 31, 2017 2018 (In thousands) CVD SDC Materials Corporate Eliminations * Consolidated Assets $ 40,467 $ 4,870 $ 7,187 $ (9 ) $ 52,515 Revenue $ 17,860 $ 5,503 $ 1,993 $ (1,022 ) $ 24,334 Operating (loss)/income (1,754 ) 958 (1,295 ) (3,164 ) (5,255 ) Pretax (loss)/income (1,691 ) 987 (1,690 ) (3,164 ) (5,558 ) 2017 (In thousands) CVD SDC Materials Corporate Eliminations * Consolidated Assets $ 42,152 $ 5,850 $ 9,368 $ 1,609 $ (1 ) $ 58,978 Revenue $ 34,965 $ 7,427 $ 733 $ (1,996 ) $ 41,129 Operating (loss)/income 9,232 2,008 (1,406 ) (2,615 ) 7,219 Pretax (loss)/income 9,243 2,011 (1,444 ) (2,615 ) 7,195 *All elimination entries represent intersegment transactions eliminated in consolidation for external reporting. |
Note 14 - Purchases of Assets
Note 14 - Purchases of Assets | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Business Combination Disclosure [Text Block] | Note 1 4 – Purchases of assets On October 31, 2017, Pursuant to the Asset Purchase Agreement, the purchase price for the assets acquired in the Acquisition was $800,000, $500,000 $300,000 may two twelve $200,000 twelve not $100,000 The Company accounted for this acquisition using the acquisition method. The Company allocated the purchase price to the acquired assets based on their estimated fair values at the acquisition date as summarized in the following table. Inventory $ 25,000 Machinery and equipment 350,000 Intellectual property 425,000 Net tangible assets acquired $ 800,000 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
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. The Company has five 411519R, 555 555 |
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 input 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. |
Revenue from Contract with Customer [Policy Text Block] | Revenue Recognition On January 1, 2018, 606, not 606 not not January 1, 2018 606, not Impact to Previously Reported Results (In thousands) Adoption of As Reported ASC 606 As Adjusted Costs and estimated earnings in excess of billings $ 8,397 $ (8,397 ) $ --- Contract assets --- 8,397 8,397 Billings in excess of costs and estimated earnings 466 (466 ) --- Contract liabilities --- 466 466 The Company designs, manufactures and sells custom chemical vapor deposition equipment through contractual agreements. These system sales require the Company to deliver functioning equipment that is generally completed within three eighteen Incurred 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. Contract material costs are included in incurred costs when the project materials have been purchased or moved to work in process as required by the project’s engineering design. Cost based input methods of revenue recognition require the Company to make estimates of costs to complete the projects. In making such estimates, significant judgment is required to evaluate assumptions related to the costs to complete the projects, including materials, labor and other system costs. If the estimated total costs on any contract are greater than the net contract revenues, the Company recognizes the entire estimated loss in the period the loss becomes known and can be reasonably estimated. “Contract assets,” include unbilled amounts typically resulting from sales under contracts when revenue recognition is utilized and revenue recognized exceeds the amount billed to the customer. The amount may not “Contract liabilities,” include advance payments and billings in excess of revenue recognized. Contract liabilities are classified as current based on our contract operating cycle and reported on a contract-by-contract basis, net of revenue recognized, at the end of each reporting period. For outright sales of products, revenue is recognized when control of the promised products or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those products or services (the transaction price). A performance obligation is a promise in a contract to transfer a distinct product or service to a customer and is the unit of account under ASC 606. |
Inventory, Policy [Policy Text Block] | Inventories Inventories are valued at the lower of cost (determined on the first first |
Income Tax, Policy [Policy Text Block] | Income Taxes On December 22, 2017, 1986, not 35% 21%; December 31, 2017. 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 not 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 The Company recognizes the tax benefit from an uncertain tax position only if it is more-likely-than- not 50% 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 December 31, 2018 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, Delaware, Michigan, Minnesota, New Hampshire and Wisconsin. The Company is no 2015. |
Impairment or Disposal of Long-Lived Assets, Including Intangible Assets, Policy [Policy Text Block] | Impairment of Long Lived Assets and Intangibles Long-lived assets consist primarily of property, plant, and equipment. Intangibles consist of patents, copyrights and intellectual property, licensing agreements and certifications. Long-lived assets are reviewed for impairment whenever events or circumstances indicate their carrying value may not 360 10 35, no December 31, 2018 2017. |
Internal Use Software, Policy [Policy Text Block] | Computer Software The Company follows ASC 350 40, no December 31, 2018 $427,000 December 31, 2017, three five $144,500 $36,000 December 31, 2018 2017, |
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 20 2018 2017 $115,800 $46,000, |
Research and Development Expense, Policy [Policy Text Block] | Research & Development Research and development costs are expensed as incurred. In 2012 2018, $607,000 2017, $437,000 |
Receivables, Policy [Policy Text Block] | Accounts Receivable The Company sells products and services to various companies across several industries in the ordinary course of business. The Company performs ongoing credit evaluations to assess the probability of accounts receivable collection based on a number of factors, including past transaction experience, evaluation of their credit history and review of the invoicing terms of the contract to determine the financial strength of its customers. The Company has accounts receivables from certain customers that exceed 10%. December 31, 2018 2017, two 42% three 60% Accounts receivable is presented net of an allowance for doubtful accounts of $24,000 $2,000 December 31, 2018 2017, may |
Sales Concentrations, Policy [Policy Text Block] | Sales Concentrations Revenue to a single customer in any one 10.0% 38.2% 66.1% 2018 2017. not may may Export sales to customers represented approximately 9.9% 9.6% December 31, 2018 2017, 2018 2017 not |
Standard Product Warranty, Policy [Policy Text Block] | Product Warranty The Company records warranty costs as incurred and does not |
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 had cash and cash equivalents of $11.4 $14.2 December 31, 2018 2017, three $7.5 $0 December 31, 2018 December 31, 2017, The Company places most of its temporary cash investments with financial institutions, which from time to time may December 31, 2018 December 31, 2017 $6,920,000 $12,198,000 |
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 treasury bills, certificates of deposit or 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. |
Business Combinations Policy [Policy Text Block] | Business Combination The Company has accounted for its acquisitions of the assets of both Tantaline A/S and MesoScribe Technologies, Inc. using the acquisition method. The Company has allocated the purchase price to the assets acquired based on their estimated fair values at the acquisition dates. Acquisition-Related Contingent Consideration Acquisition-related contingent consideration represents an obligation of the Company to transfer additional assets or equity interests if specified future events occur or conditions are met. This contingency is accounted for at fair value either as a liability or equity depending on the terms of the acquisition agreement. The Company determines the estimated fair value of contingent consideration as of the acquisition date, and subsequently at the end of each reporting period. In doing so, the Company makes significant estimates and assumptions regarding future events or conditions being achieved under the subject contingent agreement as well as the appropriate discount rate to apply. |
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, 718 |
Shipping and Handling, 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 $61,200 $42,000 December 31, 2018 2017, |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Adopted Accounting Pronouncement In February 2018, 2018 02, Income Statement-Reporting Comprehensive Income (Topic 220 2017 December 15, 2018 In June 2016, 2016 13, Financial Instruments – Credit Losses (Topic 326 December 15, 2019 December 15, 2018 In February 2016 No. 2016 02, 842 2016 02 2016 02 not 12 not 2016 02 December 15, 2018. may An entity that elects to apply the practical expedients will, in effect, continue to account for leases that commence before the effective date in accordance with previous GAAP unless the lease is modified, except that lessees are required to recognize a right-of-use asset and a lease liability for all operating leases at each reporting date based on the present value of the remaining minimum rental payments that were tracked and disclosed under previous GAAP. In addition, FASB has amended Topic 842 842 2016 02. not We believe there is no not may |
Note 2 - Summary of Significa_2
Note 2 - Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Notes Tables | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | (In thousands) Adoption of As Reported ASC 606 As Adjusted Costs and estimated earnings in excess of billings $ 8,397 $ (8,397 ) $ --- Contract assets --- 8,397 8,397 Billings in excess of costs and estimated earnings 466 (466 ) --- Contract liabilities --- 466 466 |
Note 3 - Contracts in Progress
Note 3 - Contracts in Progress (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | (In thousands) 2018 2017 Category Aerospace $ 8,115 $ 26,787 Industrial 7,043 6,629 Research 4,114 2,617 Point in time 5,062 5,095 Net revenue $ 24,334 $ 41,128 |
Contract with Customer, Asset and Liability [Table Text Block] | (In thousands) 2018 2017 Increase in revenue from net changes in transaction prices $ 254 $ 148 Decrease in revenue from net changes in input cost estimates (268 ) (126 ) Net (decrease) increase in revenue from net changes in estimates $ (14 ) $ 22 Number of projects 10 2 Net change in estimate as a percentage of aggregate revenue for associated projects (0.08 %) 0.06 % |
Schedule Of Cost And Estimated Earnings In Excess Of Billings [Table Text Block] | 2018 2017 Costs incurred on contracts in progress $ 24,913,254 $ 22,079,680 Estimated earnings 26,040,219 16,499,697 50,953,473 38,579,377 Billings to date (50,132,200 ) (30,648,666 ) $ 821,273 $ (7,930,711 ) Included in accompanying balance sheets Under the following captions: Contract assets $ 1,357,797 $ 8,397,024 Contract liabilities $ (536,524 ) $ (466,313 ) |
Note 4 - Inventories (Tables)
Note 4 - Inventories (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | Inventories consist of: 2018 2017 Raw materials $ 2,016,488 $ 3,156,016 Work-in-process 205,385 389,630 Finished goods - 26,977 Gross inventories 2,221,873 3,572,623 Less reserve for obsolescence (360,000 ) (607,000 ) Inventories, net $ 1,861,873 $ 2,965,623 |
Note 5 - Property, Plant and _2
Note 5 - Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | 2018 2017 Land $ 6,929,000 $ 6,929,000 Buildings 15,920,925 15,917,925 Building improvements 6,603,121 5,805,045 Machinery and equipment 3,385,357 3,246,877 Furniture and fixtures 611,190 563,959 Computer equipment 487,007 587,147 Software 441,376 427,441 Transportation equipment 65,995 65,994 Lab equipment 1,985,179 1,979,180 Construction in Progress 946,960 - Totals at cost $ 37,376,110 $ 35,522,568 Less: Accumulated depreciation and amortization (6,973,552 ) (6,683,111 ) Property, plant and equipment, net $ 30,402,558 $ 28,839,457 Depreciation and amortization expense (1) $ 1,141,161 $ 867,277 |
Note 6 - Intangible Assets (Tab
Note 6 - Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Notes Tables | |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | 2018 Intangible Assets Weighted Average Amortization Period Cost Accumulated Amortization Carrying Amount Patents, Copyrights and Intellectual Property 14 $ 796,080 $ 300,528 $ 495,552 Licensing Agreement 5 10,000 10,000 0 Certifications 4 58,486 58,486 0 Totals $ 864,566 $ 369,014 $ 495,552 2017 Intangible Assets Weighted Average Amortization Period Cost Accumulated Amortization Carrying Amount Patents, Copyrights and Intellectual Property 18 $ 839,831 $ 177,669 $ 662,162 Licensing Agreement 5 10,000 10,000 0 Certifications 3 58,722 58,722 0 Other 5 21,492 21,492 0 Totals $ 930,045 $ 267,883 $ 662,162 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Year Ended 2019 $ 121,613 2020 121,613 2021 121,613 2022 36,613 2023 36,613 Thereafter 57,487 Total $ 495,552 |
Note 8 - Long-term Debt (Tables
Note 8 - Long-term Debt (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Notes Tables | |
Schedule of Long-term Debt Instruments [Table Text Block] | Long-term debt as of December 31 consists of the following: 2018 2017 HSBC $10,387,500 Mortgage payable secured by real property Buildings and improvements at 555 N Research Drive, Central Islip, NY payable in monthly principle installments of $62,481 including Interest at a rate of 3.9148% maturing on December 1, 2022. $ 10,043,802 $ 10,387,500 MesoScribe Technologies, Inc. $300,000 acquisition related contingent payment 200,000 300,000 HSBC $6,000,000 Mortgage payable secured by building 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. 2,665,508 2,965,507 Total long-term debt $ 12,909,310 $ 13,653,007 Less: Current maturities (857,590 ) (747,324 ) Long-term debt $ 12,051,720 $ 12,905,683 |
Schedule of Maturities of Long-term Debt [Table Text Block] | 2019 $ 857,590 2020 674,593 2021 690,813 2022 10,686,314 2023 - Thereafter - Total long-term debt $ 12,909,310 |
Note 9 - Earnings Per Share (Ta
Note 9 - Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | 2018 2017 Weighted average common shares outstanding basic earnings per share 6,495,597 6,375,848 Effect of potential common share issuance: Stock options - 11,616 Weighted average common shares outstanding Diluted earnings per share 6,495,597 6,387,464 |
Note 10 - Income Taxes (Tables)
Note 10 - Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Notes Tables | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | 2018 2017 Current: Federal $ 58,304 $ 1,091,216 State 80,367 11,580 Total current tax provision 138,671 1,102,796 Deferred: Federal (495,233 ) 831,148 State --- --- Total deferred tax provision (495,233 ) 831,148 Income tax (benefit)/expense $ (356,562 ) $ 1,933,944 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | 2018 2017 Deferred income tax assets: Allowance for doubtful accounts $ 5,060 $ 773 Inventory capitalization 6,197 6,813 Depreciation and amortization - 70,272 Research & development tax credits 413,680 496,930 Compensation costs 1,035,983 838,643 Vacation accrual 167,644 179,309 Interest expense carryforward 66,149 --- Net operating loss carryforward 832,565 --- Capital loss carryforward 16,446 16,446 Total deferred tax asset 2,543,724 1,609,186 Deferred incomes tax liability: Property and equipment - tax over book depreciation (439,310 ) --- Less valuation allowance --- --- Net long-term deferred tax asset $ 2,104,414 $ 1,609,186 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | 2018 2017 Expected provision at federal statutory tax rate (21% and 34%, respectively) $ (1,167,092 ) $ 2,446,421 Foreign tax loss 99,215 293,589 Adjustment to 2017 tax return 58,304 - State taxes, net of federal benefit 80,367 11,580 Stock-based compensation expense 185,675 (161,429 ) Net operating loss carryforward - 7,280 Federal research & development credit (83,245 ) (781,760 ) Other permanent differences 470,214 118,263 Income tax expense/(benefit) $ (356,562 ) $ 1,933,944 |
Note 11 - Stockholders' Equity
Note 11 - Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Notes Tables | |
Share-based Compensation, Stock Options, Activity [Table Text Block] | Beginning Granted Exercised Canceled Ending Balance During During During Balance Outstanding Period Period Period Outstanding Exercisable Year ended December 31, 2017 Number of shares 59,730 - 36,800 - 22,930 22,930 Weighted average exercise price per share $ 4.51 - $ 3.97 - $ 5.36 $ 5.36 Year ended December 31, 2018 - Number of shares 22,930 - - - 22,930 22,930 Weighted average exercise price per share $ 5.36 - - - $ 5.36 $ 5.36 Beginning Granted Exercised Canceled Ending Balance During During During Balance Outstanding Period Period Period Outstanding Exercisable Year ended December 31, 2017 Number of shares 225,000 140,000 - - 365,000 185,000 Weighted average exercise price per share $ 9.43 $ 10.82 - - $ 12.35 $ 13.76 Year ended December 31, 2018 Number of shares 365,000 - - - 365,000 235,000 Weighted average exercise price per share $ 12.35 - - - $ 12.35 $ 13.15 Beginning Granted Exercised Canceled Ending Balance During During During Balance Outstanding Period Period Period Outstanding Exercisable Year ended December 31, 2017 Number of shares - - - - - - Weighted average exercise price per share - - - - - - Year ended December 31, 2018 Number of shares - 20,000 - - 20,000 - Weighted average exercise price per share - $ 8.07 - - $ 8.07 - |
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block] | Options Outstanding Options Exercisable Weighted Weighted Weighted Average Average Average Exercise Number Remaining Exercise Intrinsic Number Exercise Intrinsic Price Range Outstanding Contractual Price Value Exercisable Price Value $4.00 - 7.00 15,930 1 $4.25 $0 15,930 $4.25 $0 $7.01 - 10.00 27,000 2 $8.03 $0 7,000 $7.90 $0 $10.01 - 12.00 240,000 7.3 $10.88 $0 110,000 $11.05 $0 $12.01 - 15.00 125,000 3.5 $15.00 $0 125,000 $15.00 $0 |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block] | Weighted Average Grant Shares of Date Fair Restricted Stock Value Unvested outstanding at December 31, 2016 0 $ 0 Granted 9,300 $ 9.70 Vested (9,300 ) $ 9.70 Forfeited/Cancelled Unvested outstanding at December 31, 2017 0 $ 0 Granted 11,000 $ 10.53 Vested (11,000 ) $ 10.53 Forfeited/Cancelled Unvested outstanding at December 31, 2018 0 $ 0 Weighted Shares of Average Grant Restricted Date Fair Stock Units Value Unvested outstanding at December 31, 2016 114,090 $ 10.47 Granted 23,680 $ 9.29 Vested (63,775 ) $ 9.94 Forfeited/Cancelled (125 ) $ 14.61 Unvested outstanding at December 31, 2017 73,870 $ 10.05 Granted 39,260 $ 8.75 Vested (67,067 ) $ 9.26 Forfeited/Cancelled 0 0 Unvested outstanding at December 31, 2018 46,063 $ 8.25 |
Note 13 - Segment Reporting (Ta
Note 13 - Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | 2018 (In thousands) CVD SDC Materials Corporate Eliminations * Consolidated Assets $ 40,467 $ 4,870 $ 7,187 $ (9 ) $ 52,515 Revenue $ 17,860 $ 5,503 $ 1,993 $ (1,022 ) $ 24,334 Operating (loss)/income (1,754 ) 958 (1,295 ) (3,164 ) (5,255 ) Pretax (loss)/income (1,691 ) 987 (1,690 ) (3,164 ) (5,558 ) 2017 (In thousands) CVD SDC Materials Corporate Eliminations * Consolidated Assets $ 42,152 $ 5,850 $ 9,368 $ 1,609 $ (1 ) $ 58,978 Revenue $ 34,965 $ 7,427 $ 733 $ (1,996 ) $ 41,129 Operating (loss)/income 9,232 2,008 (1,406 ) (2,615 ) 7,219 Pretax (loss)/income 9,243 2,011 (1,444 ) (2,615 ) 7,195 |
Note 14 - Purchases of Assets (
Note 14 - Purchases of Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Notes Tables | |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | Inventory $ 25,000 Machinery and equipment 350,000 Intellectual property 425,000 Net tangible assets acquired $ 800,000 |
Note 2 - Summary of Significa_3
Note 2 - Summary of Significant Accounting Policies (Details Textual) | 12 Months Ended | ||
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Number of Wholly Owned Subsidiaries | 5 | ||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 35.00% | |
Asset Impairment Charges, Total | $ 0 | $ 0 | |
Capitalized Computer Software, Net, Ending Balance | 0 | 427,000 | |
Capitalized Computer Software, Amortization | 144,500 | 36,000 | |
Amortization of Intangible Assets, Total | 115,800 | 46,000 | |
Research and Development Expense, Total | 606,618 | 437,157 | |
Allowance for Doubtful Accounts Receivable, Current, Ending Balance | 24,000 | 2,000 | |
Cash and Cash Equivalents, at Carrying Value, Ending Balance | 11,439,361 | 14,210,909 | $ 21,677,186 |
Cash Equivalents, at Carrying Value, Total | 7,500,000 | 0 | |
Cash, Uninsured Amount | 6,920,000 | 12,198,000 | |
Cargo and Freight [Member] | |||
Revenue from Contract with Customer, Excluding Assessed Tax, Total | $ 61,200 | $ 42,000 | |
Customer Concentration Risk [Member] | Export Sales [Member] | |||
Concentration Risk, Percentage | 9.90% | 9.60% | |
Two Customers [Member] | Customer Concentration Risk [Member] | Accounts Receivable [Member] | |||
Concentration Risk, Percentage | 42.00% | 42.00% | |
Three Customers [Member] | Customer Concentration Risk [Member] | Accounts Receivable [Member] | |||
Concentration Risk, Percentage | 60.00% | 60.00% | |
One Customer [Member] | Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | |||
Concentration Risk, Percentage | 38.20% | 66.10% | |
Minimum [Member] | |||
Finite-Lived Intangible Asset, Useful Life | 5 years | ||
Maximum [Member] | |||
Finite-Lived Intangible Asset, Useful Life | 20 years | ||
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 |
Note 2 - Summary of Significa_4
Note 2 - Summary of Significant Accounting Policies - Impact on Previously Reported Results (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Costs and estimated earnings in excess of billings | ||
Contract assets | $ 1,357,797 | 8,397,024 |
Billings in excess of costs and estimated earnings | ||
Contract liabilities | $ 536,524 | 466,313 |
Previously Reported [Member] | ||
Costs and estimated earnings in excess of billings | 8,397,000 | |
Contract assets | ||
Billings in excess of costs and estimated earnings | 466,000 | |
Contract liabilities | ||
Restatement Adjustment [Member] | Accounting Standards Update 2014-09 [Member] | ||
Costs and estimated earnings in excess of billings | (8,397,000) | |
Contract assets | 8,397,000 | |
Billings in excess of costs and estimated earnings | (466,000) | |
Contract liabilities | $ 466,000 |
Note 3 - Contracts in Progres_2
Note 3 - Contracts in Progress (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Contract with Customer, Cumulative Catch-up Adjustment to Revenue, Change in Estimate of Transaction Price and Input Costs | $ (14,000) | $ 22,000 |
Increase (Decrease) in Contract with Customer, Asset | (7,039,227) | 5,800,506 |
Increase (Decrease) in Contract with Customer, Liability | $ 70,211 | $ (4,796,025) |
Note 3 - Contracts in Progres_3
Note 3 - Contracts in Progress - Disaggregation of Revenue (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Net Revenue | $ 24,334,331 | $ 41,128,639 |
Transferred at Point in Time [Member] | ||
Net Revenue | 5,062,000 | 5,095,000 |
Aerospace [Member] | ||
Net Revenue | 8,115,000 | 26,787,000 |
Industrial [Member] | ||
Net Revenue | 7,043,000 | 6,629,000 |
Research [Member] | ||
Net Revenue | $ 4,114,000 | $ 2,617,000 |
Note 3 - Contracts in Progres_4
Note 3 - Contracts in Progress - Changes in Estimates (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Increase in revenue from net changes in transaction prices | $ 254,000 | $ 148,000 |
Decrease in revenue from net changes in input cost estimates | (268,000) | (126,000) |
Net (decrease) increase in revenue from net changes in estimates | $ (14,000) | $ 22,000 |
Number of projects | 10 | 2 |
Net change in estimate as a percentage of aggregate revenue for associated projects | (0.08%) | 0.06% |
Note 3 - Contracts in Progres_5
Note 3 - Contracts in Progress - Costs, Estimated Earnings, and Billings on Uncompleted Contracts (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Costs incurred on contracts in progress | $ 24,913,254 | $ 22,079,680 |
Estimated earnings | 26,040,219 | 16,499,697 |
50,953,473 | 38,579,377 | |
Billings to date | (50,132,200) | (30,648,666) |
821,273 | (7,930,711) | |
Included in accompanying balance sheets | ||
Contract assets | 1,357,797 | 8,397,024 |
Contract liabilities | $ (536,524) | $ (466,313) |
Note 4 - Inventories - Componen
Note 4 - Inventories - Components of Inventories (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Raw materials | $ 2,016,488 | $ 3,156,016 |
Work-in-process | 205,385 | 389,630 |
Finished goods | 26,977 | |
Gross inventories | 2,221,873 | 3,572,623 |
Less reserve for obsolescence | (360,000) | (607,000) |
Inventories, net | $ 1,861,873 | $ 2,965,623 |
Note 5 - Property, Plant and _3
Note 5 - Property, Plant and Equipment (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Amortization, Total | $ 115,800 | $ 45,645 |
Note 5 - Property, Plant and _4
Note 5 - Property, Plant and Equipment - Major Classes of Property, Plant and Equipment (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | ||
Property, plant and equipment, gross | $ 37,376,110 | $ 35,522,568 | |
Less: Accumulated depreciation and amortization | (6,973,552) | (6,683,111) | |
Property, plant and equipment, net | 30,402,558 | 28,839,457 | |
Depreciation and amortization | [1] | 1,141,161 | 867,277 |
Land [Member] | |||
Property, plant and equipment, gross | 6,929,000 | 6,929,000 | |
Building [Member] | |||
Property, plant and equipment, gross | 15,920,925 | 15,917,925 | |
Building Improvements [Member] | |||
Property, plant and equipment, gross | 6,603,121 | 5,805,045 | |
Machinery and Equipment [Member] | |||
Property, plant and equipment, gross | 3,385,357 | 3,246,877 | |
Furniture and Fixtures [Member] | |||
Property, plant and equipment, gross | 611,190 | 563,959 | |
Computer Equipment [Member] | |||
Property, plant and equipment, gross | 487,007 | 587,147 | |
Software Development [Member] | |||
Property, plant and equipment, gross | 441,376 | 427,441 | |
Transportation Equipment [Member] | |||
Property, plant and equipment, gross | 65,995 | 65,994 | |
Lab Equipment [Member] | |||
Property, plant and equipment, gross | 1,985,179 | 1,979,180 | |
Construction in Progress [Member] | |||
Property, plant and equipment, gross | $ 946,960 | ||
[1] | Includes amortization expense of $115,800 and $45,645 for the year ending December 31, 2018 and the year ended December 31, 2017, respectively. Such amortization expense relates to other capitalized and intangibles assets. |
Note 6 - Intangible Assets - Su
Note 6 - Intangible Assets - Summary of Intangible Assets (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Finite-lived intangible assets, gross | $ 864,566 | $ 930,045 |
Finite-lived intangible assets, accumulated amortization | 369,014 | 267,883 |
Intangible assets, net | $ 495,552 | $ 662,162 |
Patents, Copyrights and Intellectual Property [Member] | ||
Weighted Average Amortization Period (Year) | 14 years | 18 years |
Finite-lived intangible assets, gross | $ 796,080 | $ 839,831 |
Finite-lived intangible assets, accumulated amortization | 300,528 | 177,669 |
Intangible assets, net | $ 495,552 | $ 662,162 |
Licensing Agreements [Member] | ||
Weighted Average Amortization Period (Year) | 5 years | 5 years |
Finite-lived intangible assets, gross | $ 10,000 | $ 10,000 |
Finite-lived intangible assets, accumulated amortization | 10,000 | 10,000 |
Intangible assets, net | $ 0 | $ 0 |
Certifications [Member] | ||
Weighted Average Amortization Period (Year) | 4 years | 3 years |
Finite-lived intangible assets, gross | $ 58,486 | $ 58,722 |
Finite-lived intangible assets, accumulated amortization | 58,486 | 58,722 |
Intangible assets, net | $ 0 | $ 0 |
Other Intangible Assets [Member] | ||
Weighted Average Amortization Period (Year) | 5 years | |
Finite-lived intangible assets, gross | $ 21,492 | |
Finite-lived intangible assets, accumulated amortization | 21,492 | |
Intangible assets, net | $ 0 |
Note 6 - Intangible Assets - Es
Note 6 - Intangible Assets - Estimated Amortization Expense Related to Intangible Assets (Details) | Dec. 31, 2018USD ($) |
2019 | $ 121,613 |
2020 | 121,613 |
2021 | 121,613 |
2022 | 36,613 |
2023 | 36,613 |
Thereafter | 57,487 |
Total | $ 495,552 |
Note 7 - Financing Arrangemen_2
Note 7 - Financing Arrangements (Details Textual) | Nov. 30, 2017USD ($) | Mar. 31, 2012USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 01, 2018USD ($) |
Long-term Debt, Total | $ 12,909,310 | ||||
Creative Bath Products, Inc [Member] | |||||
Purchase Commitment, Amount | $ 13,850,000 | ||||
Loan [Member] | |||||
Debt Instrument, Periodic Payment, Total | 62,481 | $ 62,481 | |||
Debt Instrument, Face Amount | $ 10,387,500 | $ 10,387,500 | |||
Debt Instrument, Interest Rate, Stated Percentage | 3.9148% | 3.9148% | |||
HSBC Bank Mortgage Loan [Member] | HSBC Bank [Member] | |||||
Debt Instrument, Number of Payments | 120 | ||||
Debt Instrument, Periodic Payment, Total | $ 25,000 | ||||
Long-term Debt, Total | $ 2,700,000 | $ 3,000,000 | |||
HSBC Bank Mortgage Loan [Member] | HSBC Bank [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | ||||
HSBC Bank Mortgage Loan [Member] | HSBC Bank [Member] | Prime Rate [Member] | |||||
Debt Instrument, Basis Spread on Variable Rate | (0.50%) | ||||
HSBC Bank [Member] | Loan [Member] | |||||
Debt Instrument, Number of Payments | 60 | ||||
Debt Instrument, Periodic Payment, Total | $ 62,481 | ||||
Debt Instrument, Face Amount | $ 10,387,500 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 3.9148% | ||||
HSBC Bank [Member] | Revolving Credit Facility [Member] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 7,000,000 |
Note 8 - Long-term Debt - Summa
Note 8 - Long-term Debt - Summary of Long-term Debt (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Total long-term debt | $ 12,909,310 | $ 13,653,007 |
Less: Current maturities | (857,590) | (747,324) |
Long-term debt | 12,051,720 | 12,905,683 |
MesoScribe Technologies, Inc [Member] | ||
Contingent Liability | 200,000 | 300,000 |
Loan [Member] | ||
Secured debt | 10,043,802 | 10,387,500 |
Secured debt | 10,043,802 | 10,387,500 |
HSBC Bank Mortgage Loan [Member] | ||
Secured debt | 2,665,508 | 2,965,507 |
Secured debt | $ 2,665,508 | $ 2,965,507 |
Note 8 - Long-term Debt - Sum_2
Note 8 - Long-term Debt - Summary of Long-term Debt (Details) (Parentheticals) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
MesoScribe Technologies, Inc [Member] | ||
Acquisition related contingent payment | $ 300,000 | $ 300,000 |
Loan [Member] | ||
Debt instrument, face amount | 10,387,500 | 10,387,500 |
Monthly installments | $ 62,481 | $ 62,481 |
Interest rate | 3.9148% | 3.9148% |
HSBC Bank Mortgage Loan [Member] | ||
Debt instrument, face amount | $ 6,000,000 | $ 6,000,000 |
Monthly installments | $ 25,000 | $ 25,000 |
HSBC Bank Mortgage Loan [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Variable rate | 1.75% | 1.75% |
HSBC Bank Mortgage Loan [Member] | Prime Rate [Member] | ||
Variable rate | 0.50% | 0.50% |
Note 8 - Long-term Debt - Futur
Note 8 - Long-term Debt - Future Maturities of Long-term Debt (Details) | Dec. 31, 2018USD ($) |
2019 | $ 857,590 |
2020 | 674,593 |
2021 | 690,813 |
2022 | 10,686,314 |
2023 | |
Thereafter | |
Total long-term debt | $ 12,909,310 |
Note 9 - Earnings Per Share (De
Note 9 - Earnings Per Share (Details Textual) - shares | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance | 387,930 | 407,930 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 207,930 | 257,930 |
Employee Stock Option [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 22,930 |
Note 9 - Earnings Per Share - C
Note 9 - Earnings Per Share - Calculation of Basic and Diluted Weighted Average Common Shares (Details) - shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Weighted average common shares outstanding basic earnings per share (in shares) | 6,495,597 | 6,375,848 |
Effect of potential common share issuance: | ||
Stock options (in shares) | 11,616 | |
Weighted average common shares outstanding | ||
Diluted earnings per share (in shares) | 6,495,597 | 6,387,464 |
Note 10 - Income Taxes (Details
Note 10 - Income Taxes (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 35.00% |
Increase (Decrease) in Deferred Tax Assets | $ 689,000 | |
Net Income (Loss) Attributable to Parent, Total | (5,201,021) | $ 5,261,411 |
Deferred Tax Assets, Gross, Total | 2,543,724 | 1,609,186 |
CVD Tantaline ApS [Member] | DENMARK | ||
Net Income (Loss) Attributable to Parent, Total | 463,000 | 865,000 |
Deferred Tax Assets, Gross, Total | $ 102,000 | $ 190,000 |
CVD Tantaline ApS [Member] | DENMARK | Foreign Tax Authority [Member] | The Danish Ministry of Taxation [Member] | ||
Effective Income Tax Rate Reconciliation, at Foreign Statutory Income Tax Rate, Percent | 22.00% | |
Research Tax Credit Carryforward [Member] | ||
Tax Credit Carryforward, Amount | $ 414,000 |
Note 10 - Income Taxes - Compon
Note 10 - Income Taxes - Components of Income Taxes (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Federal | $ 58,304 | $ 1,091,216 |
State | 80,367 | 11,580 |
Total current tax provision | 138,671 | 1,102,796 |
Deferred: | ||
Federal | (495,233) | 831,148 |
State | ||
Total deferred tax provision | (495,228) | 831,148 |
Income tax expense/(benefit) | $ (356,562) | $ 1,933,944 |
Note 10 - Income Taxes - Deferr
Note 10 - Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred income tax assets: | ||
Allowance for doubtful accounts | $ 5,060 | $ 773 |
Inventory capitalization | 6,197 | 6,813 |
Depreciation and amortization | 70,272 | |
Research & development tax credits | 413,680 | 496,930 |
Compensation costs | 1,035,983 | 838,643 |
Vacation accrual | 167,644 | 179,309 |
Interest expense carryforward | 66,149 | |
Net operating loss carryforward | 832,565 | |
Capital loss carryforward | 16,446 | 16,446 |
Total deferred tax asset | 2,543,724 | 1,609,186 |
Deferred incomes tax liability: | ||
Property and equipment - tax over book depreciation | (439,310) | |
Less valuation allowance | ||
Deferred income taxes | $ 2,104,414 | $ 1,609,186 |
Note 10 - Income Taxes - Effect
Note 10 - Income Taxes - Effective Income Tax Rate Reconciliation (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Expected provision at federal statutory tax rate (21% and 34%, respectively) | $ (1,167,092) | $ 2,446,421 |
Foreign tax loss | 99,215 | 293,589 |
Adjustment to 2017 tax return | 58,304 | |
State taxes, net of federal benefit | 80,367 | 11,580 |
Stock-based compensation expense | 185,675 | (161,429) |
Net operating loss carryforward | 7,280 | |
Federal research & development credit | (83,245) | (781,760) |
Other permanent differences | 470,214 | 118,263 |
Income tax expense/(benefit) | $ (356,562) | $ 1,933,944 |
Note 11 - Stockholders' Equit_2
Note 11 - Stockholders' Equity (Details Textual) - USD ($) | Dec. 09, 2016 | Nov. 30, 2006 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 12, 2007 |
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 | ||||
Allocated Share-based Compensation Expense, Total | $ 940,000 | $ 933,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance | 407,930 | 387,930 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 0 | 34,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 256,000 | |||||
Selling, General and Administrative Expenses [Member] | ||||||
Allocated Share-based Compensation Expense, Total | $ 940,000 | 933,000 | ||||
Restricted Stock [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | 116,000 | 90,000 | ||||
Restricted Stock Units (RSUs) [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | 621,000 | $ 637,000 | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Total | $ 335,000 | |||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 178 days | |||||
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 | |||||
The 2001 Non-qualified Stock Option Plan [Member] | ||||||
Common Stock, Capital Shares Reserved for Future Issuance | 300,000 | |||||
Common Stock, Par or Stated Value Per Share | $ 0.01 | |||||
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 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance | 22,930 | 22,930 | 59,730 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 36,800 | |||||
The 2007 Share Incentive Plan [Member] | ||||||
Common Stock, Capital Shares Reserved for Future Issuance | 750,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 140,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance | 365,000 | 365,000 | 225,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | ||||||
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 | 75,324 | |||||
The 2007 Share Incentive Plan [Member] | Three Key Employees [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 140,000 | |||||
The 2016 Share Incentive Plan [Member] | ||||||
Common Stock, Capital Shares Reserved for Future Issuance | 750,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 20,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period | 0 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance | 20,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period |
Note 11 - Stockholders' Equit_3
Note 11 - Stockholders' Equity - Stock Option Plan (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Beginning balance, number outstanding (in shares) | 387,930 | |
Exercise of stock options (in shares) | 0 | 34,000 |
Ending balance, number outstanding (in shares) | 407,930 | 387,930 |
Number of shares exercisable (in shares) | 257,930 | 207,930 |
The 2001 Non-qualified Stock Option Plan [Member] | ||
Beginning balance, number outstanding (in shares) | 22,930 | 59,730 |
Granted during period (in shares) | ||
Exercise of stock options (in shares) | 36,800 | |
Canceled during period (in shares) | ||
Ending balance, number outstanding (in shares) | 22,930 | 22,930 |
Number of shares exercisable (in shares) | 22,930 | 22,930 |
Beginning balance, weighted average exercise price (in dollars per share) | $ 5.36 | $ 4.51 |
Granted during period, weighted average exercise price (in dollars per share) | ||
Exercised during period, weighted average exercise price (in dollars per share) | 3.97 | |
Canceled during period, weighted average exercise price (in dollars per share) | ||
Ending balance, weighted average exercise price (in dollars per share) | 5.36 | 5.36 |
Number exercisable, weighted average exercise price (in dollars per share) | $ 5.36 | $ 5.36 |
The 2007 Share Incentive Plan [Member] | ||
Beginning balance, number outstanding (in shares) | 365,000 | 225,000 |
Granted during period (in shares) | 140,000 | |
Exercise of stock options (in shares) | ||
Canceled during period (in shares) | ||
Ending balance, number outstanding (in shares) | 365,000 | 365,000 |
Number of shares exercisable (in shares) | 235,000 | 185,000 |
Beginning balance, weighted average exercise price (in dollars per share) | $ 12.35 | $ 9.43 |
Granted during period, weighted average exercise price (in dollars per share) | 10.82 | |
Exercised during period, weighted average exercise price (in dollars per share) | ||
Canceled during period, weighted average exercise price (in dollars per share) | ||
Ending balance, weighted average exercise price (in dollars per share) | 12.35 | 12.35 |
Number exercisable, weighted average exercise price (in dollars per share) | $ 13.15 | $ 13.76 |
The 2016 Share Incentive Plan [Member] | ||
Beginning balance, number outstanding (in shares) | ||
Granted during period (in shares) | 20,000 | |
Exercise of stock options (in shares) | ||
Canceled during period (in shares) | ||
Ending balance, number outstanding (in shares) | 20,000 | |
Number of shares exercisable (in shares) | ||
Beginning balance, weighted average exercise price (in dollars per share) | ||
Granted during period, weighted average exercise price (in dollars per share) | 8.07 | |
Exercised during period, weighted average exercise price (in dollars per share) | ||
Canceled during period, weighted average exercise price (in dollars per share) | ||
Ending balance, weighted average exercise price (in dollars per share) | 8.07 | |
Number exercisable, weighted average exercise price (in dollars per share) |
Note 11 - Stockholders' Equit_4
Note 11 - Stockholders' Equity - Outstanding and Exercisable Options (Details) $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($)$ / sharesshares | |
Exercise Price Range 1 [Member] | |
Exercise price range, lower limit (in dollars per share) | |
Exercise price range, upper limit (in dollars per share) | $ 7 |
Number of options outstanding (in shares) | shares | 15,930 |
Number of options outstanding, weighted average remaining contractual term (Year) | 1 year |
Number of options outstanding, weighted average exercise price (in dollars per share) | $ 4.25 |
Number of options outstanding, intrinsic value | $ | $ 0 |
Number of options exercisable (in shares) | shares | 15,930 |
Number exercisable, weighted average exercise price (in dollars per share) | $ 4.25 |
Number of options exercisable, intrinsic value | $ | $ 0 |
Exercise Price Range 2 [Member] | |
Exercise price range, lower limit (in dollars per share) | |
Exercise price range, upper limit (in dollars per share) | $ 10 |
Number of options outstanding (in shares) | shares | 27,000 |
Number of options outstanding, weighted average remaining contractual term (Year) | 2 years |
Number of options outstanding, weighted average exercise price (in dollars per share) | $ 8.03 |
Number of options outstanding, intrinsic value | $ | $ 0 |
Number of options exercisable (in shares) | shares | 7,000 |
Number exercisable, weighted average exercise price (in dollars per share) | $ 7.90 |
Number of options exercisable, intrinsic value | $ | $ 0 |
Exercise Price Range 3 [Member] | |
Exercise price range, lower limit (in dollars per share) | |
Exercise price range, upper limit (in dollars per share) | $ 12 |
Number of options outstanding (in shares) | shares | 240,000 |
Number of options outstanding, weighted average remaining contractual term (Year) | 7 years 109 days |
Number of options outstanding, weighted average exercise price (in dollars per share) | $ 10.88 |
Number of options outstanding, intrinsic value | $ | $ 0 |
Number of options exercisable (in shares) | shares | 110,000 |
Number exercisable, weighted average exercise price (in dollars per share) | $ 11.05 |
Number of options exercisable, intrinsic value | $ | $ 0 |
Exercise Price Range 4 [Member] | |
Exercise price range, lower limit (in dollars per share) | |
Exercise price range, upper limit (in dollars per share) | $ 15 |
Number of options outstanding (in shares) | shares | 125,000 |
Number of options outstanding, weighted average remaining contractual term (Year) | 3 years 182 days |
Number of options outstanding, weighted average exercise price (in dollars per share) | $ 15 |
Number of options outstanding, intrinsic value | $ | $ 0 |
Number of options exercisable (in shares) | shares | 125,000 |
Number exercisable, weighted average exercise price (in dollars per share) | $ 15 |
Number of options exercisable, intrinsic value | $ | $ 0 |
Note 11 - Stockholders' Equit_5
Note 11 - Stockholders' Equity - Restricted Stock and Restricted Stock Units Activity (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Restricted Stock [Member] | ||
Unvested outstanding at beginning of period (in shares) | 0 | 0 |
Unvested outstanding at beginning of period, weighted average grant date fair value (in dollars per share) | $ 0 | $ 0 |
Granted (in shares) | 11,000 | 9,300 |
Granted, weighted average grant date fair value (in dollars per share) | $ 10.53 | $ 9.70 |
Vested (in shares) | (11,000) | (9,300) |
Vested, weighted average grant date fair value (in dollars per share) | $ 10.53 | $ 9.70 |
Forfeited/Cancelled (in shares) | ||
Forfeited/Cancelled (in dollars per share) | ||
Forfeited/Cancelled (in shares) | ||
Unvested outstanding at end of period (in shares) | 0 | 0 |
Unvested outstanding at beginning of period, weighted average grant date fair value (in dollars per share) | $ 0 | $ 0 |
Restricted Stock Units (RSUs) [Member] | ||
Unvested outstanding at beginning of period (in shares) | 73,870 | 114,090 |
Unvested outstanding at beginning of period, weighted average grant date fair value (in dollars per share) | $ 10.05 | $ 10.47 |
Granted (in shares) | 39,260 | 23,680 |
Granted, weighted average grant date fair value (in dollars per share) | $ 8.75 | $ 9.29 |
Vested (in shares) | (67,067) | (63,775) |
Vested, weighted average grant date fair value (in dollars per share) | $ 9.26 | $ 9.94 |
Forfeited/Cancelled (in shares) | 0 | 125 |
Forfeited/Cancelled (in dollars per share) | $ 0 | $ 14.61 |
Forfeited/Cancelled (in shares) | 0 | (125) |
Unvested outstanding at end of period (in shares) | 46,063 | 73,870 |
Unvested outstanding at beginning of period, weighted average grant date fair value (in dollars per share) | $ 8.25 | $ 10.05 |
Note 12 - Defined Contributio_2
Note 12 - Defined Contribution Plan (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Contribution Plan, Administrative Expense | $ 8,425 | $ 13,325 |
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 0 | $ 0 |
Note 13 - Segment Reporting (De
Note 13 - Segment Reporting (Details Textual) | 12 Months Ended |
Dec. 31, 2018 | |
Number of Operating Segments | 3 |
Note 13 - Segment Reporting - S
Note 13 - Segment Reporting - Segment Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | ||
Assets | $ 52,514,562 | $ 58,978,250 | |
Revenue | 24,334,331 | 41,128,639 | |
Operating (loss)/income | (5,254,519) | 7,218,873 | |
Pretax (loss)/income | (5,557,583) | 7,195,355 | |
Corporate, Non-Segment [Member] | |||
Assets | 1,609,000 | ||
Revenue | |||
Operating (loss)/income | (3,164,000) | (2,615,000) | |
Pretax (loss)/income | (3,164,000) | (2,615,000) | |
Intersegment Eliminations [Member] | |||
Assets | [1] | (9,000) | (1,000) |
Revenue | [1] | (1,022,000) | (1,996,000) |
Operating (loss)/income | [1] | ||
Pretax (loss)/income | [1] | ||
CVD [Member] | Operating Segments [Member] | |||
Assets | 40,467,000 | 42,152,000 | |
Revenue | 17,860,000 | 34,965,000 | |
Operating (loss)/income | (1,754,000) | 9,232,000 | |
Pretax (loss)/income | (1,691,000) | 9,243,000 | |
SDC [Member] | Operating Segments [Member] | |||
Assets | 4,870,000 | 5,850,000 | |
Revenue | 5,503,000 | 7,427,000 | |
Operating (loss)/income | 958,000 | 2,008,000 | |
Pretax (loss)/income | 987,000 | 2,011,000 | |
Materials [Member] | Operating Segments [Member] | |||
Assets | 7,187,000 | 9,368,000 | |
Revenue | 1,993,000 | 733,000 | |
Operating (loss)/income | (1,295,000) | (1,406,000) | |
Pretax (loss)/income | $ (1,690,000) | $ (1,444,000) | |
[1] | All elimination entries represent intersegment transactions eliminated in consolidation for external financial reporting. |
Note 14 - Purchases of Assets_2
Note 14 - Purchases of Assets (Details Textual) - USD ($) | Oct. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 |
Payments to Acquire Businesses, Gross | $ 419,813 | ||
Tantaline A/S of Nordborg [Member] | Asset Purchase Agreement [Member] | |||
Business Combination, Consideration Transferred, Total | $ 800,000 | ||
Payments to Acquire Businesses, Gross | 500,000 | ||
MesoScribe Technologies, Inc [Member] | |||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | 300,000 | $ 300,000 | |
MesoScribe Technologies, Inc [Member] | Asset Purchase Agreement [Member] | |||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | 300,000 | ||
Business Combination, Contingent Consideration, Liability, Current | $ 200,000 | ||
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | $ (100,000) |
Note 14 - Purchases of Assets -
Note 14 - Purchases of Assets - Acquisitions (Details) - MesoScribe Technologies, Inc [Member] | Dec. 31, 2018USD ($) |
Inventory | $ 25,000 |
Machinery and equipment | 350,000 |
Intellectual property | 425,000 |
Net tangible assets acquired | $ 800,000 |