CVD Equipment (CVV) 10-Q 13 May 24 2024 Q1 Quarterly report Financial data

Cover

Cover - shares	3 Months Ended
	Mar. 31, 2024	May 10, 2024
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Mar. 31, 2024
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2024
Current Fiscal Year End Date	--12-31
Entity File Number	1-16525
Entity Registrant Name	CVD EQUIPMENT CORPORATION
Entity Central Index Key	0000766792
Entity Tax Identification Number	11-2621692
Entity Incorporation, State or Country Code	NY
Entity Address, Address Line One	355 South Technology Drive
Entity Address, City or Town	Central Islip
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	11722
City Area Code	(631)
Local Phone Number	981-7081
Title of 12(b) Security	Common Stock
Trading Symbol	CVV
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		6,824,511

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 11,893	$ 14,025
Accounts receivable, net of allowance for credit losses	2,971	1,906
Contract assets	2,689	1,604
Inventories	4,925	4,454
Other current assets	858	852
Total current assets	23,336	22,841
Property, plant and equipment, net	12,089	12,166
Other assets	18	18
Total assets	35,443	35,025
Current liabilities:
Accounts payable	1,798	1,203
Accrued expenses	1,690	1,765
Current maturities of long-term debt	83	81
Deposit from purchaser of MesoScribe assets-Note 11	597	597
Contract liabilities	6,030	4,908
Total current liabilities	10,198	8,554
Long-term debt, net of current portion	247	268
Total liabilities	10,445	8,822
Contingencies – Note 12
Stockholders’ equity:
Common stock - $0.01 par value – 20,000,000 shares authorized; 6,824,511 issued and outstanding at March 31, 2024 and December 31, 2023	68	68
Additional paid-in capital	28,962	28,695
Accumulated deficit	(4,032)	(2,560)
Total stockholders’ equity	24,998	26,203
Total liabilities and stockholders’ equity	$ 35,443	$ 35,025

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Mar. 31, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	20,000,000	20,000,000
Common stock, shares issued	6,824,511	6,824,511
Common stock, shares outstanding	6,824,511	6,824,511

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Income Statement [Abstract]
Revenue	$ 4,922	$ 8,695
Cost of revenue	4,063	6,261
Gross profit	859	2,434
Operating expenses:
Research and development	746	602
Selling	419	419
General and administrative	1,317	1,600
Total operating expenses	2,482	2,621
Operating loss	(1,623)	(187)
Other income (expense):
Interest income	157	120
Interest expense	(6)	(6)
Foreign exchange income		27
Other income		8
Total other income, net	151	149
Loss before income taxes	(1,472)	(38)
Income tax expense		2
Net loss	$ (1,472)	$ (40)
Loss per common share - basic	$ (0.22)	$ (0.01)
Loss per common share - diluted	$ (0.22)	$ (0.01)
Weighted average common shares outstanding:
Basic	6,809,283	6,773,285
Diluted	6,809,283	6,773,285

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) $ in Thousands	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total
Balance at Dec. 31, 2022	$ 67	$ 27,712	$ 1,620	$ 29,399
Balance, shares at Dec. 31, 2022	6,760,938
Net loss			(40)	(40)
Stock-based compensation		135		135
Exercise of stock options and issuance of shares		73		73
Exercise of stock options and issuance of shares, shares	17,500
Balance at Mar. 31, 2023	$ 67	27,920	1,580	29,567
Balance, shares at Mar. 31, 2023	6,778,438
Balance at Dec. 31, 2023	$ 68	28,695	(2,560)	26,203
Balance, shares at Dec. 31, 2023	6,824,511
Net loss			(1,472)	(1,472)
Stock-based compensation		267		267
Balance at Mar. 31, 2024	$ 68	$ 28,962	$ (4,032)	$ 24,998
Balance, shares at Mar. 31, 2024	6,824,511

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Cash flows from operating activities:
Net loss	$ (1,472)	$ (40)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation	267	135
Depreciation and amortization	153	166
Changes in assets and liabilities:
Accounts receivable	(1,065)	1,420
Contract assets	(1,085)	(1,537)
Inventories	(471)	(262)
Other current assets	(28)	119
Accounts payable	611	(25)
Accrued expenses	(75)	(467)
Contract liabilities	1,122	(2,781)
Net cash used in operating activities	(2,043)	(3,272)
Cash flows from investing activities:
Purchases of property and equipment	(70)	(146)
Net cash used in investing activities	(70)	(146)
Cash flows from financing activities:
Repayments of long-term debt	(19)	(19)
Proceeds from exercise of stock options		73
Net cash (used in) provided by financing activities	(19)	54
Net decrease in cash and cash equivalents	(2,132)	(3,364)
Cash and cash equivalents at beginning of period	14,025	14,365
Cash and cash equivalents at end of period	11,893	11,001
Supplemental disclosure of cash flow information:
Income taxes paid		8
Interest paid	$ 6	$ 6

BASIS OF PRESENTATION

BASIS OF PRESENTATION	3 Months Ended
	Mar. 31, 2024
Accounting Policies [Abstract]
BASIS OF PRESENTATION	NOTE 1: BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements for CVD Equipment Corporation and Subsidiaries (collectively “the Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. They do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary in order to make the interim financials not misleading have been included and all such adjustments are of a normal recurring nature. The operating results for the three months ended March 31, 2024 are not necessarily indicative of the results that can be expected for the year ending December 31, 2024. The condensed consolidated balance sheet as of December 31, 2023 has been derived from the audited consolidated financial statements at such date, as filed on Form 10-K with the SEC on March 28, 2024, but does not contain all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. These unaudited condensed consolidated financial statements should be read in conjunction with that report. All material intercompany balances and transactions have been eliminated in consolidation. Reclassifications Certain reclassifications have been made to the prior period condensed consolidated financial statements to conform to the current period presentation. These reclassifications had no effect on net loss. . Liquidity At March 31, 2024, the Company had $ 11.9

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 2024
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Revenue Recognition In accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 606 - Revenue from Contracts with Customers (“ASC 606 ” , Over time The Company designs, manufactures and sells custom chemical vapor deposition, thermal process equipment and other equipment through contractual agreements. These system sales require the Company to deliver functioning equipment that is generally completed within two to eighteen months from commencement of order acceptance. For systems sales that meet the criteria to recognize revenue over time, the Company recognizes revenue over time by using an input method based on costs incurred as it depicts the Company’s progress toward satisfaction of the performance obligation. For system sales that do not meet the criteria to recognize revenue over time based on the contract provisions, the Company recognizes revenue based on point in time. Under the over time method, revenue arising from fixed price contracts is recognized as work is performed based on the ratio of costs incurred to date to the total estimated costs at completion of the performance obligations. Incurred costs include all direct material and labor costs and those indirect costs related to contract performance, such as 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, and installed, 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. There were no The timing of revenue recognition, billings and collections results in accounts receivables, unbilled receivables or contract assets and contract liabilities on our consolidated balance sheet. Under typical payment terms for our contracts accounted for over time, amounts are billed as work progresses in accordance with agreed-upon contractual terms, either at periodic intervals or upon achievement of contractual milestones. NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Under ASC 606, payments received from customers in excess of revenue recognized to-date results in a contract liability. These contract liabilities are not considered to represent a significant financing component of the contract because we believe these cash advances and deposits are generally used to meet working capital demands which can be higher in the earlier stages of a contract. Also, advanced payments and deposits provide us with some measure of assurance that the customer will perform on its obligations under the contract. Contract assets include unbilled amounts typically resulting from system sales under contracts and represents revenue recognized that exceeds the amount billed to the customer. Contract liabilities include advance payments and billings in excess of revenue recognized. The Company typically receives down payments upon receipt of order and progress payments as the system is manufactured. Contract assets and contract liabilities are classified as current as these contracts in progress are expected to be substantially completed within the next twelve months. Point in time For non-system sales of products and services, revenue is recognized at the point in time when control of the promised products or services is transferred to the Company’s customers, in an amount that reflects the consideration the Company expects 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, “Revenue from Contracts with Customers.” For any system equipment sales where the equipment would have an alternative use or where the contract provisions of the contract preclude the use of over time revenue recognition, revenue is recognized at the point in time when control of the equipment is transferred to the customer. For the three months ended March 31, 2024 and 2023, all system equipment sales were recorded over time by using an input method. Inventories Inventories (raw materials, work-in-process and finished goods) are valued at the lower of cost (determined on the first-in, first-out method) or net realizable value. Work-in-process and finished goods inventory reflect all accumulated production costs, which are comprised of direct production costs and overhead, and is reduced by amounts recorded in cost of sales as the related revenue is recognized. Indirect costs relating to long-term contracts, which include expenses such as general and administrative, are charged to expense as incurred and are not included in our cost of sales or work-in-process and finished goods inventory. NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Obsolete inventory or inventory in excess of management’s estimated usage requirement is written down to its estimated net realizable value if less than cost. The Company evaluates usage requirements by analyzing historical usage, anticipated demand, alternative uses of materials, and other qualitative factors. Unanticipated changes in demand for the Company’s products may require a write down of inventory, which would be reflected in cost of sales in the period the revision is made. Product Warranty The Company typically provides standard warranty coverage on its systems for one year from the date of final acceptance or fifteen months from the date of shipment by providing labor and parts necessary to repair the systems during the warranty period. The Company records the estimated warranty cost when revenue is recognized on the related system. Warranty cost is included in “Cost of revenue” in the condensed consolidated statements of operations. The estimated warranty cost is based on the Company’s historical cost. The Company updates its warranty estimates based on actual costs incurred Recent Accounting Standards In December 2023, the Financial Accounting Standards Board (“FASB”) issued ASU 2023-09, “ Income Taxes (Topic 740): Improvements to Income Tax Disclosures NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) In November 2023, the FASB issued ASU 2023-07, “ Segment Reporting (Topic 280): Improvements to Reportable Segments The Company believes 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.

CONCENTRATION OF CREDIT RISK

CONCENTRATION OF CREDIT RISK	3 Months Ended
	Mar. 31, 2024
Risks and Uncertainties [Abstract]
CONCENTRATION OF CREDIT RISK	NOTE 3: CONCENTRATION OF CREDIT RISK Cash and cash equivalents The Company had cash and cash equivalents of $ 11.9 14.0 11.1 12.1 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 March 31, 2024 and December 31, 2023 was $ 0.3 1.5 NOTE 3: CONCENTRATION OF CREDIT RISK (continued) Accounts receivable The Company routinely assesses the financial strength of its customers . . Accounts receivable is presented net of an allowance for credit losses of $ 36,000 The allowance is based on prior experience and management’s evaluation of future economic conditions. Measurement of credit losses requires consideration of historical loss experience, including the need to adjust for changing business conditions, and judgments about the probable effects of relevant observable data, including present economic conditions such as delinquency rates and the financial health of specific customers. Future changes to the estimated allowance for doubtful accounts could be material to our results of operations and financial condition. At March 31, 2024, the accounts receivable balance included an amount from one customer that totaled 67.2 As of December 31, 2023, the accounts receivable balance includes amounts from three customers that represented 37.6 13.0 12.8 Sales concentration Revenue from a single customer in any one period can exceed 10% of our total revenues. During the three months ended March 31, 2024, two customers exceeded 10% of revenues, representing 29.6 13.1 28.3 15.9 10.6

REVENUE RECOGNITION

REVENUE RECOGNITION	3 Months Ended
	Mar. 31, 2024
Revenue from Contract with Customer [Abstract]
REVENUE RECOGNITION	NOTE 4: REVENUE RECOGNITION The following table represents a disaggregation of revenue for the three months ended March 31, 2024 and 2023 (in thousands): Schedule of Disaggregation of Revenue Over time Point in time Total Three months ended March 31, 2024 Over time Point in time Total Energy $ - $ 18 $ 18 Aerospace 1,802 332 2,134 Industrial 1,259 483 1,742 Research 861 167 1,028 Total $ 3,922 $ 1,000 $ 4,922 Over time Point in time Total Three months ended March 31, 2023 Over time Point in time Total Energy $ 2,516 $ 14 $ 2,530 Aerospace 264 251 515 Industrial 3,670 213 3,883 Research 1,272 495 1,767 Total $ 7,722 $ 973 $ 8,695 The energy market includes customers involved in the manufacture of silicon carbide wafers and batteries. Aerospace market includes customers that manufacture aircraft engines. Industrial end market consists of various end customers in diverse industries. The research market principally represents customers that are universities and other research institutions. The Company has unrecognized contract revenue of approximately $ 24.8 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 may occur for a variety of reasons, including but not limited to (i) build accelerations or delays, (ii) product cost forecast changes, (iii) cost related change orders or add-ons, or (iv) changes in other information used to estimate costs. Changes in estimates may have a material effect on the Company’s consolidated statements of operations. NOTE 4: REVENUE RECOGNITION (continued) Contract assets and liabilities Contract assets and contract liabilities on input method type contracts in progress are summarized as follows as of March 31, 2024 (in thousands): Schedule of Cost and Estimated Earnings in Excess of Billings Costs incurred on contracts in progress $ 10,024 Estimated earnings 4,582 Costs and estimated earnings on uncompleted contracts $ 14,606 Billings to date (17,649 ) Net cost in excess of billings (3,043 ) Deferred revenue related to non-system contracts and a system contract to be recognized at point in time (298 ) Contract liability in excess of contract assets $ (3,341 ) Included in accompanying condensed consolidated balance sheets under the following captions (in thousands): Contract assets $ 2,689 Contract liabilities $ 6,030 Of the contract liability balances at December 31, 2023 and 2022 of $ 4.6 4.1 1.3 2.9

INVENTORIES, NET

INVENTORIES, NET	3 Months Ended
	Mar. 31, 2024
Inventory Disclosure [Abstract]
INVENTORIES, NET	NOTE 5: INVENTORIES, NET Schedule of Inventories, Net Inventories consist of: March 31, 2024 December 31, 2023 Raw materials $ 2,507 $ 2,351 Work-in-process 1,563 1,248 Finished goods 855 855 Total $ 4,925 $ 4,454

LONG-TERM DEBT

LONG-TERM DEBT	3 Months Ended
	Mar. 31, 2024
Debt Disclosure [Abstract]
LONG-TERM DEBT	NOTE 6: LONG-TERM DEBT In September 2022, the Company entered into a loan agreement to fund the acquisition of machinery. The loan amount of $ 432,000 60 8,352 6

EARNINGS PER SHARE

EARNINGS PER SHARE	3 Months Ended
	Mar. 31, 2024
Earnings Per Share [Abstract]
EARNINGS PER SHARE	NOTE 7: EARNINGS PER SHARE The calculation of basic and diluted weighted average common shares outstanding for the three months ended March 31, 2024 and 2023 is as follows: Schedule of Basic and Diluted Weighted Average Common Shares Outstanding 2024 2023 Three months ended March 31, 2024 2023 Basic weighted average common shares outstanding 6,809,283 6,773,285 Effect of potentially dilutive share-based awards - - Diluted weighted average shares outstanding 6,809,283 6,773,285 At March 31, 2024, stock options to purchase 841,875 395,625 899,500 252,375 For the three months ended March 31, 2024 and 2023, 841,875 899,500

STOCK-BASED COMPENSATION EXPENS

STOCK-BASED COMPENSATION EXPENSE	3 Months Ended
	Mar. 31, 2024
Share-Based Payment Arrangement [Abstract]
STOCK-BASED COMPENSATION EXPENSE	NOTE 8: STOCK-BASED COMPENSATION EXPENSE The Company recorded stock-based compensation for the three months ended March 31, 2024 and 2023, respectively, that were included in the following line items in our condensed consolidated statements of operations (in thousands): Schedule of Stock Based Compensation expense 2024 2023 Three months ended March 31, 2024 2023 Cost of revenue $ 38 $ 19 Research and development 47 20 Selling 27 11 General and administrative 155 85 Total $ 267 $ 135 NOTE 8: STOCK-BASED COMPENSATION EXPENSE (continued) Stock-based compensation expense included $ 50,000 40,000 to the Director Compensation plan. Under this plan, each of the five independent directors is entitled to an Annual Equity Retainer in the amount of $ 40,000 For the three months ended March 31, 2024, the Company granted 5,000 25 four years ten-year 3.30 Schedule of Weighted Average Assumptions Stock price $ 4.75 Exercise price $ 4.75 Dividend yield 0 % Expected volatility 77 % Risk-free interest rate 4.12 % Expected life (in years) 6.00 The following table summarizes stock options awards for the three months ended March 31, 2024: Schedule of Stock Options Awards Weighted Stock Option Average Awards Exercise (in shares) Price Outstanding at January 1, 2024 846,875 $ 8.20 Granted 5,000 4.75 Forfeited (10,000 ) 8.01 Outstanding at March 31, 2024 841,875 8.18 The following table summarizes information about the outstanding and exercisable options at March 31, 2024 by ranges of exercise prices: Schedule of Outstanding and Exercisable Options Ranges of Exercise Prices 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 7.00 462,125 7.6 $ 4.55 $ 144,275 194,750 $ 4.48 $ 68,931 $ 7.01 10.00 20,000 4.1 $ 8.07 $ - 20,000 $ 8.07 $ - $ 10.01 13.00 130,000 3.4 $ 10.62 $ - 122,500 $ 10.55 $ - $ 13.01 16.00 229,750 9.0 $ 14.11 $ - 58,375 $ 14.11 $ - NOTE 8: STOCK-BASED COMPENSATION EXPENSE (continued) As of March 31, 2024, there was $ 2.2 2.0

INCOME TAXES

INCOME TAXES	3 Months Ended
	Mar. 31, 2024
Income Tax Disclosure [Abstract]
INCOME TAXES	NOTE 9: INCOME TAXES As of March 31, 2024 and December 31, 2023, the Company has provided a full valuation allowance against its net deferred tax assets. This was based on management’s assessment, including operating losses in recent years, that it is more likely than not that the net deferred tax assets may not be realized in the future. Management continues to evaluate for potential utilization of the Company’s net deferred tax asset, which has been fully reserved for, on a quarterly basis, reviewing our economic models, including projections of future operating results.

SEGMENT REPORTING

SEGMENT REPORTING	3 Months Ended
	Mar. 31, 2024
Segment Reporting [Abstract]
SEGMENT REPORTING	NOTE 10: SEGMENT REPORTING The Company operates through three CVD Equipment segment manufactures and sells chemical vapor deposition, physical vapor transport and similar equipment. The SDC segment designs and manufactures ultra-high purity gas and chemical delivery control systems. The CVD Materials segment provides material coatings for aerospace, medical, electronic and other applications and is not considered a core business of the Company. The Company’s corporate administration activities are reported in the “Corporate” column. These activities primarily include expenses related to certain corporate officers and support staff, expenses related to the Company’s Board of Directors, stock option expense for options and shares of restricted stock granted to corporate administration employees and board members, certain consulting expenses, investor and shareholder relations activities, and all of the Company’s legal, auditing and professional fees. Elimination entries included in the “Eliminations” column represent intersegment revenues and cost of revenues that are eliminated in consolidation. Intersegment sales for the three months ended March 31, 2024 and 2023 by the SDC segment to the CVD Equipment segment were $ 15,000 129,000 NOTE 10: SEGMENT REPORTING (continued) The following table presents certain information regarding the Company’s segments as of and for the three months ended March 31, 2024 and 2023 (in thousands): Schedule of Segments CVD Equipment SDC CVD Materials Eliminations Corporate Consolidated 2024 CVD Equipment SDC CVD Materials Eliminations Corporate Consolidated Assets $ 31,412 $ 3,882 $ 183 $ (34 ) $ - $ 35,443 Revenue $ 2,947 $ 1,931 $ 59 $ (15 ) $ - $ 4,922 Operating (loss) income (1,405 ) 632 (25 ) - (825 ) (1,623 ) Pretax (loss) income (1,411 ) 632 (25 ) - (668 ) (1,472 ) Depreciation and amortization $ 141 $ 12 $ - $ - $ - $ 153 Purchase of property, plant & equipment $ 76 $ - $ - $ - $ - $ 76 CVD Equipment SDC CVD Eliminations Corporate Consolidated 2023 CVD Equipment SDC CVD Eliminations Corporate Consolidated Assets $ 28,509 $ 4,467 $ 1,783 $ 25 $ - $ 34,784 Revenue $ 5,845 $ 2,312 $ 667 $ (129 ) $ - $ 8,695 Operating (loss) income (95 ) 631 81 - (804 ) (187 ) Pretax (loss) income (93 ) 631 108 - (684 ) (38 ) Depreciation and amortization $ 131 $ 12 $ 23 $ - $ - $ 166 Purchase of property, plant & equipment $ 136 $ 10 $ - $ - $ - $ 146

MESOSCRIBE SUBSIDIARY

MESOSCRIBE SUBSIDIARY	3 Months Ended
	Mar. 31, 2024
Discontinued Operations and Disposal Groups [Abstract]
MESOSCRIBE SUBSIDIARY	NOTE 11: MESOSCRIBE SUBSIDIARY On August 8, 2023, the Company entered into a Purchase and License Agreement (the “Agreement”) with a third-party. Pursuant to the Agreement, the Company will sell certain proprietary assets relating to its plasma spray technology and material deposition system and grant a non-exclusive license to use certain of the Company’s related intellectual property as more fully described in the Agreement, for an aggregate purchase price of $ 0.9 The Company will continue to fulfill remaining orders for MesoScribe products through the end of 2024 at which time it plans to cease the remaining operations of MesoScribe and dispose of any remaining equipment. The Company received payments under the Agreement in the amount of $ 0.6 The revenues and net loss of MesoScribe were $ 59,000 ($25,000) The total assets and total liabilities of the MesoScribe subsidiary were $ 0.2 0.7 0.2 0.7

RISKS AND UNCERTAINTIES

RISKS AND UNCERTAINTIES	3 Months Ended
	Mar. 31, 2024
Risks And Uncertainties
RISKS AND UNCERTAINTIES	NOTE 12: RISKS AND UNCERTAINTIES The Company currently operates in a challenging economic environment as the global economy continues to confront the remaining impacts from the pandemic, geopolitical conflicts, inflationary pressures, and adverse supply chain disruptions. The specific impacts on the Company have included: ● Significant geopolitical developments across Europe and Asia (including the war in Ukraine) have and may continue to restrict the Company’s ability to procure raw materials and components such as nickel and integrated circuits, as well as impact the Company’s ability to sell its products into China, Russia and other Eastern European and Asian regions. ● Supply chain disruptions have led to much longer lead times to acquire raw materials for production and has led to inflationary pressures in both materials and labor. These supply chain disruptions have impacted the Company’s ability to recognize revenue timelier as it delays the Company’s manufacturing processes. While management has initiated actions to mitigate the potential negative impacts to its revenue and profitability, the Company is unable to predict the impact that the above uncertainties may have on its future results of operations and cash flows.

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Mar. 31, 2024
Accounting Policies [Abstract]
Revenue Recognition	Revenue Recognition In accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 606 - Revenue from Contracts with Customers (“ASC 606 ” , Over time The Company designs, manufactures and sells custom chemical vapor deposition, thermal process equipment and other equipment through contractual agreements. These system sales require the Company to deliver functioning equipment that is generally completed within two to eighteen months from commencement of order acceptance. For systems sales that meet the criteria to recognize revenue over time, the Company recognizes revenue over time by using an input method based on costs incurred as it depicts the Company’s progress toward satisfaction of the performance obligation. For system sales that do not meet the criteria to recognize revenue over time based on the contract provisions, the Company recognizes revenue based on point in time. Under the over time method, revenue arising from fixed price contracts is recognized as work is performed based on the ratio of costs incurred to date to the total estimated costs at completion of the performance obligations. Incurred costs include all direct material and labor costs and those indirect costs related to contract performance, such as 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, and installed, 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. There were no The timing of revenue recognition, billings and collections results in accounts receivables, unbilled receivables or contract assets and contract liabilities on our consolidated balance sheet. Under typical payment terms for our contracts accounted for over time, amounts are billed as work progresses in accordance with agreed-upon contractual terms, either at periodic intervals or upon achievement of contractual milestones. NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Under ASC 606, payments received from customers in excess of revenue recognized to-date results in a contract liability. These contract liabilities are not considered to represent a significant financing component of the contract because we believe these cash advances and deposits are generally used to meet working capital demands which can be higher in the earlier stages of a contract. Also, advanced payments and deposits provide us with some measure of assurance that the customer will perform on its obligations under the contract. Contract assets include unbilled amounts typically resulting from system sales under contracts and represents revenue recognized that exceeds the amount billed to the customer. Contract liabilities include advance payments and billings in excess of revenue recognized. The Company typically receives down payments upon receipt of order and progress payments as the system is manufactured. Contract assets and contract liabilities are classified as current as these contracts in progress are expected to be substantially completed within the next twelve months. Point in time For non-system sales of products and services, revenue is recognized at the point in time when control of the promised products or services is transferred to the Company’s customers, in an amount that reflects the consideration the Company expects 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, “Revenue from Contracts with Customers.” For any system equipment sales where the equipment would have an alternative use or where the contract provisions of the contract preclude the use of over time revenue recognition, revenue is recognized at the point in time when control of the equipment is transferred to the customer. For the three months ended March 31, 2024 and 2023, all system equipment sales were recorded over time by using an input method.
Inventories	Inventories Inventories (raw materials, work-in-process and finished goods) are valued at the lower of cost (determined on the first-in, first-out method) or net realizable value. Work-in-process and finished goods inventory reflect all accumulated production costs, which are comprised of direct production costs and overhead, and is reduced by amounts recorded in cost of sales as the related revenue is recognized. Indirect costs relating to long-term contracts, which include expenses such as general and administrative, are charged to expense as incurred and are not included in our cost of sales or work-in-process and finished goods inventory. NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Obsolete inventory or inventory in excess of management’s estimated usage requirement is written down to its estimated net realizable value if less than cost. The Company evaluates usage requirements by analyzing historical usage, anticipated demand, alternative uses of materials, and other qualitative factors. Unanticipated changes in demand for the Company’s products may require a write down of inventory, which would be reflected in cost of sales in the period the revision is made.
Product Warranty	Product Warranty The Company typically provides standard warranty coverage on its systems for one year from the date of final acceptance or fifteen months from the date of shipment by providing labor and parts necessary to repair the systems during the warranty period. The Company records the estimated warranty cost when revenue is recognized on the related system. Warranty cost is included in “Cost of revenue” in the condensed consolidated statements of operations. The estimated warranty cost is based on the Company’s historical cost. The Company updates its warranty estimates based on actual costs incurred
Recent Accounting Standards	Recent Accounting Standards In December 2023, the Financial Accounting Standards Board (“FASB”) issued ASU 2023-09, “ Income Taxes (Topic 740): Improvements to Income Tax Disclosures NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) In November 2023, the FASB issued ASU 2023-07, “ Segment Reporting (Topic 280): Improvements to Reportable Segments The Company believes 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.

REVENUE RECOGNITION (Tables)

REVENUE RECOGNITION (Tables)	3 Months Ended
	Mar. 31, 2024
Revenue from Contract with Customer [Abstract]
Schedule of Disaggregation of Revenue	The following table represents a disaggregation of revenue for the three months ended March 31, 2024 and 2023 (in thousands): Schedule of Disaggregation of Revenue Over time Point in time Total Three months ended March 31, 2024 Over time Point in time Total Energy $ - $ 18 $ 18 Aerospace 1,802 332 2,134 Industrial 1,259 483 1,742 Research 861 167 1,028 Total $ 3,922 $ 1,000 $ 4,922 Over time Point in time Total Three months ended March 31, 2023 Over time Point in time Total Energy $ 2,516 $ 14 $ 2,530 Aerospace 264 251 515 Industrial 3,670 213 3,883 Research 1,272 495 1,767 Total $ 7,722 $ 973 $ 8,695
Schedule of Cost and Estimated Earnings in Excess of Billings	Contract assets and contract liabilities on input method type contracts in progress are summarized as follows as of March 31, 2024 (in thousands): Schedule of Cost and Estimated Earnings in Excess of Billings Costs incurred on contracts in progress $ 10,024 Estimated earnings 4,582 Costs and estimated earnings on uncompleted contracts $ 14,606 Billings to date (17,649 ) Net cost in excess of billings (3,043 ) Deferred revenue related to non-system contracts and a system contract to be recognized at point in time (298 ) Contract liability in excess of contract assets $ (3,341 ) Included in accompanying condensed consolidated balance sheets under the following captions (in thousands): Contract assets $ 2,689 Contract liabilities $ 6,030

INVENTORIES, NET (Tables)

INVENTORIES, NET (Tables)	3 Months Ended
	Mar. 31, 2024
Inventory Disclosure [Abstract]
Schedule of Inventories, Net	Schedule of Inventories, Net Inventories consist of: March 31, 2024 December 31, 2023 Raw materials $ 2,507 $ 2,351 Work-in-process 1,563 1,248 Finished goods 855 855 Total $ 4,925 $ 4,454

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	3 Months Ended
	Mar. 31, 2024
Earnings Per Share [Abstract]
Schedule of Basic and Diluted Weighted Average Common Shares Outstanding	The calculation of basic and diluted weighted average common shares outstanding for the three months ended March 31, 2024 and 2023 is as follows: Schedule of Basic and Diluted Weighted Average Common Shares Outstanding 2024 2023 Three months ended March 31, 2024 2023 Basic weighted average common shares outstanding 6,809,283 6,773,285 Effect of potentially dilutive share-based awards - - Diluted weighted average shares outstanding 6,809,283 6,773,285

STOCK-BASED COMPENSATION EXPE_2

STOCK-BASED COMPENSATION EXPENSE (Tables)	3 Months Ended
	Mar. 31, 2024
Share-Based Payment Arrangement [Abstract]
Schedule of Stock Based Compensation expense	Schedule of Stock Based Compensation expense 2024 2023 Three months ended March 31, 2024 2023 Cost of revenue $ 38 $ 19 Research and development 47 20 Selling 27 11 General and administrative 155 85 Total $ 267 $ 135
Schedule of Weighted Average Assumptions	Schedule of Weighted Average Assumptions Stock price $ 4.75 Exercise price $ 4.75 Dividend yield 0 % Expected volatility 77 % Risk-free interest rate 4.12 % Expected life (in years) 6.00
Schedule of Stock Options Awards	The following table summarizes stock options awards for the three months ended March 31, 2024: Schedule of Stock Options Awards Weighted Stock Option Average Awards Exercise (in shares) Price Outstanding at January 1, 2024 846,875 $ 8.20 Granted 5,000 4.75 Forfeited (10,000 ) 8.01 Outstanding at March 31, 2024 841,875 8.18
Schedule of Outstanding and Exercisable Options Ranges of Exercise Prices	The following table summarizes information about the outstanding and exercisable options at March 31, 2024 by ranges of exercise prices: Schedule of Outstanding and Exercisable Options Ranges of Exercise Prices 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 7.00 462,125 7.6 $ 4.55 $ 144,275 194,750 $ 4.48 $ 68,931 $ 7.01 10.00 20,000 4.1 $ 8.07 $ - 20,000 $ 8.07 $ - $ 10.01 13.00 130,000 3.4 $ 10.62 $ - 122,500 $ 10.55 $ - $ 13.01 16.00 229,750 9.0 $ 14.11 $ - 58,375 $ 14.11 $ -

SEGMENT REPORTING (Tables)

SEGMENT REPORTING (Tables)	3 Months Ended
	Mar. 31, 2024
Segment Reporting [Abstract]
Schedule of Segments	The following table presents certain information regarding the Company’s segments as of and for the three months ended March 31, 2024 and 2023 (in thousands): Schedule of Segments CVD Equipment SDC CVD Materials Eliminations Corporate Consolidated 2024 CVD Equipment SDC CVD Materials Eliminations Corporate Consolidated Assets $ 31,412 $ 3,882 $ 183 $ (34 ) $ - $ 35,443 Revenue $ 2,947 $ 1,931 $ 59 $ (15 ) $ - $ 4,922 Operating (loss) income (1,405 ) 632 (25 ) - (825 ) (1,623 ) Pretax (loss) income (1,411 ) 632 (25 ) - (668 ) (1,472 ) Depreciation and amortization $ 141 $ 12 $ - $ - $ - $ 153 Purchase of property, plant & equipment $ 76 $ - $ - $ - $ - $ 76 CVD Equipment SDC CVD Eliminations Corporate Consolidated 2023 CVD Equipment SDC CVD Eliminations Corporate Consolidated Assets $ 28,509 $ 4,467 $ 1,783 $ 25 $ - $ 34,784 Revenue $ 5,845 $ 2,312 $ 667 $ (129 ) $ - $ 8,695 Operating (loss) income (95 ) 631 81 - (804 ) (187 ) Pretax (loss) income (93 ) 631 108 - (684 ) (38 ) Depreciation and amortization $ 131 $ 12 $ 23 $ - $ - $ 166 Purchase of property, plant & equipment $ 136 $ 10 $ - $ - $ - $ 146

BASIS OF PRESENTATION (Details

BASIS OF PRESENTATION (Details Narrative) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Accounting Policies [Abstract]
Cash and cash equivalents	$ 11,893	$ 14,025

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Accounting Policies [Abstract]
Contract assets, impairment loss	$ 0	$ 0
Standard product warranty description	The Company typically provides standard warranty coverage on its systems for one year from the date of final acceptance or fifteen months from the date of shipment by providing labor and parts necessary to repair the systems during the warranty period. The Company records the estimated warranty cost when revenue is recognized on the related system. Warranty cost is included in “Cost of revenue” in the condensed consolidated statements of operations. The estimated warranty cost is based on the Company’s historical cost. The Company updates its warranty estimates based on actual costs incurred

CONCENTRATION OF CREDIT RISK (D

CONCENTRATION OF CREDIT RISK (Details Narrative) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Concentration Risk [Line Items]
Cash and cash equivalents	$ 11,893,000		$ 14,025,000
Uninsured amount	300,000		1,500,000
Allowance for doubtful accounts	$ 36,000		$ 36,000
Accounts Receivable [Member] | One Customer [Member] | Customer Concentration Risk [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	67.20%		37.60%
Accounts Receivable [Member] | Two Customers [Member] | Customer Concentration Risk [Member]
Concentration Risk [Line Items]
Concentration risk, percentage			13%
Accounts Receivable [Member] | Three Customers [Member] | Customer Concentration Risk [Member]
Concentration Risk [Line Items]
Concentration risk, percentage			12.80%
Revenue Benchmark [Member] | One Customer [Member] | Customer Concentration Risk [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	29.60%	28.30%
Revenue Benchmark [Member] | Two Customers [Member] | Customer Concentration Risk [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	13.10%	15.90%
Revenue Benchmark [Member] | Three Customers [Member] | Customer Concentration Risk [Member]
Concentration Risk [Line Items]
Concentration risk, percentage		10.60%
US Treasury Bill Securities [Member]
Concentration Risk [Line Items]
Cash equivalents	$ 11,100,000		$ 12,100,000

Schedule of Disaggregation of R

Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Disaggregation of Revenue [Line Items]
Total	$ 4,922	$ 8,695
Energy [Member]
Disaggregation of Revenue [Line Items]
Total	18	2,530
Aerospace [Member]
Disaggregation of Revenue [Line Items]
Total	2,134	515
Industrial [Member]
Disaggregation of Revenue [Line Items]
Total	1,742	3,883
Research [Member]
Disaggregation of Revenue [Line Items]
Total	1,028	1,767
Transferred over Time [Member]
Disaggregation of Revenue [Line Items]
Total	3,922	7,722
Transferred over Time [Member] | Energy [Member]
Disaggregation of Revenue [Line Items]
Total		2,516
Transferred over Time [Member] | Aerospace [Member]
Disaggregation of Revenue [Line Items]
Total	1,802	264
Transferred over Time [Member] | Industrial [Member]
Disaggregation of Revenue [Line Items]
Total	1,259	3,670
Transferred over Time [Member] | Research [Member]
Disaggregation of Revenue [Line Items]
Total	861	1,272
Transferred at Point in Time [Member]
Disaggregation of Revenue [Line Items]
Total	1,000	973
Transferred at Point in Time [Member] | Energy [Member]
Disaggregation of Revenue [Line Items]
Total	18	14
Transferred at Point in Time [Member] | Aerospace [Member]
Disaggregation of Revenue [Line Items]
Total	332	251
Transferred at Point in Time [Member] | Industrial [Member]
Disaggregation of Revenue [Line Items]
Total	483	213
Transferred at Point in Time [Member] | Research [Member]
Disaggregation of Revenue [Line Items]
Total	$ 167	$ 495

Schedule of Cost and Estimated

Schedule of Cost and Estimated Earnings in Excess of Billings (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Revenue from Contract with Customer [Abstract]
Costs incurred on contracts in progress	$ 10,024
Estimated earnings	4,582
Costs and estimated earnings on uncompleted contracts	14,606
Billings to date	(17,649)
Net cost in excess of billings	(3,043)
Deferred revenue related to non-system contracts and a system contract to be recognized at point in time	(298)
Contract liability in excess of contract assets	(3,341)
Contract assets	2,689	$ 1,604
Contract liabilities	$ 6,030	$ 4,908

REVENUE RECOGNITION (Details Na

REVENUE RECOGNITION (Details Narrative) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023	Dec. 31, 2022
Revenue from Contract with Customer [Abstract]
Unrecognized contract revenue	$ 24.8
Contract liability	$ 1.3	$ 2.9	$ 4.6	$ 4.1

Schedule of Inventories, Net (D

Schedule of Inventories, Net (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Inventory Disclosure [Abstract]
Raw materials	$ 2,507	$ 2,351
Work-in-process	1,563	1,248
Finished goods	855	855
Total	$ 4,925	$ 4,454

LONG-TERM DEBT (Details Narrati

LONG-TERM DEBT (Details Narrative) - Loan Agreement to Fund Machinery Acquisition [Member]	1 Months Ended
	Sep. 30, 2022 USD ($)
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Loan principal amount	$ 432,000
Loan payment term	60
Loan, monthly installment amount	$ 8,352
Loan interest rate	6%

Schedule of Basic and Diluted W

Schedule of Basic and Diluted Weighted Average Common Shares Outstanding (Details) - shares	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Earnings Per Share [Abstract]
Basic weighted average common shares outstanding	6,809,283	6,773,285
Effect of potentially dilutive share-based awards
Diluted weighted average shares outstanding	6,809,283	6,773,285

EARNINGS PER SHARE (Details Nar

EARNINGS PER SHARE (Details Narrative) - shares	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Earnings Per Share [Abstract]
Stock option outstanding	841,875	899,500	846,875
Stock option exercisable	395,625	252,375
Antidilutive sharesfrom computation of diluted earnings per share	841,875	899,500

Schedule of Stock Based Compens

Schedule of Stock Based Compensation expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total	$ 267	$ 135
Cost of Revenue [Member]
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total	38	19
Research and Development Expense [Member]
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total	47	20
Selling Expense [Member]
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total	27	11
General and Administrative Expense [Member]
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total	$ 155	$ 85

Schedule of Weighted Average As

Schedule of Weighted Average Assumptions (Details)	3 Months Ended
	Mar. 31, 2024 $ / shares
Share-Based Payment Arrangement [Abstract]
Stock price	$ 4.75
Exercise price	$ 4.75
Dividend yield	0%
Expected volatility	77%
Risk-free interest rate	4.12%
Expected life (in years)	6 years

Schedule of Stock Options Award

Schedule of Stock Options Awards (Details)	3 Months Ended
	Mar. 31, 2024 $ / shares shares
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding [Roll Forward]
Stock option awards outstanding, beginning balance | shares	846,875
Stock option awards, granted | shares	5,000
Stock option awards, forfeited | shares	(10,000)
Stock option awards outstanding, ending balance | shares	841,875
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]
Weighted average exercise price outstanding, beginning balance | $ / shares	$ 8.20
Weighted average exercise price, granted | $ / shares	4.75
Weighted average exercise price, forfeited | $ / shares	8.01
Weighted average exercise price outstanding, ending balance | $ / shares	$ 8.18

Schedule of Outstanding and Exe

Schedule of Outstanding and Exercisable Options Ranges of Exercise Prices (Details) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2024 USD ($) $ / shares shares
Exercise Price Range One [Member]
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items]
Exercise price range, lower limit	$ 4
Exercise price range, upper limit	$ 7
Number of options outstanding | shares	462,125
Number of options outstanding, weighted average remaining contractual term	7 years 7 months 6 days
Number of options outstanding, weighted average exercise price	$ 4.55
Number of options outstanding, intrinsic value | $	$ 144,275
Number of options exercisable | shares	194,750
Number of options exercisable, weighted average exercise price	$ 4.48
Number of options exercisable, intrinsic value | $	$ 68,931
Exercise Price Range Two [Member]
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items]
Exercise price range, lower limit	$ 7.01
Exercise price range, upper limit	$ 10
Number of options outstanding | shares	20,000
Number of options outstanding, weighted average remaining contractual term	4 years 1 month 6 days
Number of options outstanding, weighted average exercise price	$ 8.07
Number of options outstanding, intrinsic value | $
Number of options exercisable | shares	20,000
Number of options exercisable, weighted average exercise price	$ 8.07
Number of options exercisable, intrinsic value | $
Exercise Price Range Three [Member]
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items]
Exercise price range, lower limit	$ 10.01
Exercise price range, upper limit	$ 13
Number of options outstanding | shares	130,000
Number of options outstanding, weighted average remaining contractual term	3 years 4 months 24 days
Number of options outstanding, weighted average exercise price	$ 10.62
Number of options outstanding, intrinsic value | $
Number of options exercisable | shares	122,500
Number of options exercisable, weighted average exercise price	$ 10.55
Number of options exercisable, intrinsic value | $
Exercise Price Range Four [Member]
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items]
Exercise price range, lower limit	$ 13.01
Exercise price range, upper limit	$ 16
Number of options outstanding | shares	229,750
Number of options outstanding, weighted average remaining contractual term	9 years
Number of options outstanding, weighted average exercise price	$ 14.11
Number of options outstanding, intrinsic value | $
Number of options exercisable | shares	58,375
Number of options exercisable, weighted average exercise price	$ 14.11
Number of options exercisable, intrinsic value | $

STOCK-BASED COMPENSATION EXPE_3

STOCK-BASED COMPENSATION EXPENSE (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock based compensation expenses	$ 267,000	$ 135,000
Stock option granted	5,000
Weighted average fair value of stock options granted	$ 4.75
Five Directors [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Annual equity retainer amount	$ 40,000
Restricted Stock [Member] | Director [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock based compensation expenses	$ 50,000	$ 40,000
Share-Based Payment Arrangement, Option [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock option granted	5,000
Stock option vesting percentage	25%
Vesting period	4 years
Expiration period	10 years
Weighted average fair value of stock options granted	$ 3.30
Unrecognized compensation costs	$ 2,200,000
Unrecognized compensation costs, recoginition period	2 years

Schedule of Segments (Details)

Schedule of Segments (Details) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Segment Reporting Information [Line Items]
Assets	$ 35,443,000	$ 34,784,000	$ 35,025,000
Revenue	4,922,000	8,695,000
Operating (loss) income	(1,623,000)	(187,000)
Pretax (loss) income	(1,472,000)	(38,000)
Depreciation and amortization	153,000	166,000
Purchase of property, plant & equipment	76,000	146,000
Operating Segments [Member] | CVD Equipment [Member]
Segment Reporting Information [Line Items]
Assets	31,412,000	28,509,000
Revenue	2,947,000	5,845,000
Operating (loss) income	(1,405,000)	(95,000)
Pretax (loss) income	(1,411,000)	(93,000)
Depreciation and amortization	141,000	131,000
Purchase of property, plant & equipment	76,000	136,000
Operating Segments [Member] | SDC [Member]
Segment Reporting Information [Line Items]
Assets	3,882,000	4,467,000
Revenue	1,931,000	2,312,000
Operating (loss) income	632,000	631,000
Pretax (loss) income	632,000	631,000
Depreciation and amortization	12,000	12,000
Purchase of property, plant & equipment		10,000
Operating Segments [Member] | CVD Materials [Member]
Segment Reporting Information [Line Items]
Assets	183,000	1,783,000
Revenue	59,000	667,000
Operating (loss) income	(25,000)	81,000
Pretax (loss) income	(25,000)	108,000
Depreciation and amortization		23,000
Purchase of property, plant & equipment
Intersegment Eliminations [Member]
Segment Reporting Information [Line Items]
Assets	(34,000)	25,000
Revenue	(15,000)	(129,000)
Operating (loss) income
Pretax (loss) income
Depreciation and amortization
Purchase of property, plant & equipment
Segment Reporting, Reconciling Item, Corporate Nonsegment [Member]
Segment Reporting Information [Line Items]
Assets
Revenue
Operating (loss) income	(825,000)	(804,000)
Pretax (loss) income	(668,000)	(684,000)
Depreciation and amortization
Purchase of property, plant & equipment

SEGMENT REPORTING (Details Narr

SEGMENT REPORTING (Details Narrative)	3 Months Ended
	Mar. 31, 2024 USD ($) Segment	Mar. 31, 2023 USD ($)
Segment Reporting Information [Line Items]
Number of operating segments | Segment	3
Revenue from contract with customer, including assessed tax	$ 4,922,000	$ 8,695,000
Intersegment Eliminations [Member]
Segment Reporting Information [Line Items]
Revenue from contract with customer, including assessed tax	$ (15,000)	$ (129,000)

MESOSCRIBE SUBSIDIARY (Details

MESOSCRIBE SUBSIDIARY (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023	Aug. 08, 2023
Deposits from purchaser of equipment	$ 597,000		$ 597,000
Revenues	4,922,000	$ 8,695,000
Net loss	(1,472,000)	(40,000)
Assets	35,443,000	$ 34,784,000	35,025,000
Liabilities	10,445,000		8,822,000
Meso Scribe Technologies Inc [Member]
Aggregate purchase price				$ 900,000
Deposits from purchaser of equipment	600,000
Revenues	59,000
Net loss	(25,000)
Assets	200,000		200,000
Liabilities	$ 700,000		$ 700,000