Document and Entity Information
Document and Entity Information - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 26, 2016 | Jun. 26, 2015 | |
Document And Entity Information | |||
Entity Registrant Name | Ultralife Corporation | ||
Entity Central Index Key | 875,657 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Is Entity a Well-known Seasoned Issuer? | No | ||
Is Entity a Voluntary Filer? | No | ||
Is Entity's Reporting Status Current? | Yes | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $ 42,741 | ||
Entity Common Stock, Shares Outstanding | 15,323,922 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2,015 |
Balance Sheets
Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets | ||
Cash and cash equivalents | $ 14,393 | $ 17,711 |
Restricted cash | 140 | 155 |
Trade accounts receivable, net | 11,430 | 11,295 |
Inventories, net | 23,814 | 26,086 |
Prepaid expenses and other current assets | 1,900 | 1,313 |
Due from insurance company | 177 | 184 |
Deferred income taxes | 92 | 106 |
Total current assets | 51,946 | 56,850 |
Property, equipment and improvements, net | 9,038 | 9,812 |
Goodwill | 16,283 | 16,407 |
Other intangible assets, net | 3,946 | 4,338 |
Security deposits and other non-current assets | 309 | 235 |
Total assets | 81,522 | 87,642 |
Current liabilities: | ||
Accounts payable | 6,494 | 6,996 |
Accrued compensation and related benefits | 2,377 | 1,725 |
Accrued expenses and other current liabilities | 1,749 | 2,421 |
Income taxes payable | 227 | 69 |
Total current liabilities | 10,847 | 11,211 |
Deferred income taxes | 4,631 | 4,462 |
Other non-current liabilities | 28 | 56 |
Total liabilities | 15,506 | 15,729 |
Shareholders' Equity: | ||
Common stock | 1,918 | 1,894 |
Capital in excess of par value | 177,007 | 175,940 |
Accumulated deficit | (94,051) | (96,920) |
Accumulated other comprehensive income | (907) | (467) |
Treasury stock, at cost | (17,808) | (8,420) |
Total Ultralife Equity | 66,159 | 72,027 |
Noncontrolling interest | (143) | (114) |
Total shareholders' equity | 66,016 | 71,913 |
Total liabilities and shareholders' equity | $ 81,522 | $ 87,642 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Trade accounts receivable - allowance for doubtful accouns | $ 300 | $ 340 |
Preferred stock - par value (in dollars per share) | $ 0.1 | $ 0.1 |
Preferred stock - shares authorized | 10,000,000 | 10,000,000 |
Preferred stock - shares issued | 0 | 0 |
Preferred stock - shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.1 | $ 0.1 |
Common stock - shares authorized | 40,000,000 | 40,000,000 |
Common stock - shares issued | 19,181,815 | 18,941,544 |
Common stock - shares outstanding | 15,322,155 | 17,340,813 |
Treasury stock - shares | 3,859,660 | 1,600,731 |
Statements of Operations
Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Income Statement [Abstract] | ||
Revenues | $ 76,427 | $ 66,494 |
Cost of products sold | 53,111 | 47,144 |
Gross profit | 23,316 | 19,350 |
Operating expenses: | ||
Research and defelopment | 5,603 | 5,333 |
Selling, general and administrative | 14,233 | 15,460 |
Intangible asset impairment | 150 | 0 |
Total operating expenses | 19,986 | 20,793 |
Operating income (loss) | 3,330 | (1,443) |
Other (expense) income: | ||
Interest income | 3 | 13 |
Interest and financing expense | (248) | (218) |
Miscellaneous | 65 | (154) |
Income (loss) from continuing operations before income taxes | 3,150 | (1,802) |
Income tax provision | 310 | 268 |
Net income (loss) from continuing operations | 2,840 | (2,070) |
(Loss) from discontinued operations, net of tax | 0 | 61 |
Net income (loss) | 2,840 | (2,131) |
Net loss attributable to noncontrolling interest | 29 | 15 |
Net income (loss) attributable to Ultralife | 2,869 | (2,116) |
Other comprehensive income - Foreign currency translation adjustments | (440) | 147 |
Comprehensive loss attributable to Ultralife | $ 2,429 | $ (1,969) |
Net income (loss) per share attributable to Ultralife common shareholders - basic: (in dollars per share): | ||
Continuing operations | $ .18 | $ (0.12) |
Discontinued operations | 0 | 0 |
Total | .18 | (0.12) |
Net income (loss) per share attributable to Ultralife common shareholders - diluted: (in dollars per share): | ||
Continuing operations | .17 | (.12) |
Discontinued operations | $ 0 | $ 0 |
Weighted average shares outstanding - basic | 16,182,000 | 17,475,000 |
Weighted average shares outstanding - diluted | 16,458,000 | 17,475,000 |
Shareholders Equity
Shareholders Equity - USD ($) $ in Thousands | Total | Common Stock | Common Stock Shares | Additional Paid-In Capital | Other Comprehensive Income / Loss | Retained Earnings / Accumulated Deficit | Treasury Stock | Noncontrolling Interest |
Beginning balance at Dec. 31, 2013 | $ 73,645 | $ 1,885 | $ 18,851,579 | $ 174,935 | $ (614) | $ (94,804) | $ (7,658) | $ (99) |
Shares issued to directors - amount | $ 210 | 6 | 204 | |||||
Shares issued to directors - shares | 56,898 | 56,898 | ||||||
Shares issued on stock option exercise - amount | $ 11 | 0 | 11 | |||||
Shares issued on stock option exercise - shares | 3,067 | 3,067 | ||||||
Stock compensation - options | $ 614 | 614 | ||||||
Stock compensation - restricted stock | 179 | 179 | ||||||
Foreign currency translation adjustments | 147 | 147 | ||||||
Vesting of restricted stock - amount | 0 | 3 | (3) | |||||
Vesting of restricted stock - shares | 30,000 | |||||||
Purchase of stock | (762) | (762) | ||||||
Net income (loss) | (2,131) | (2,116) | (15) | |||||
Ending balance at Dec. 31, 2014 | $ 71,913 | 1,894 | 175,940 | (467) | (96,920) | (8,420) | (114) | |
Ending balance - shares at Dec. 31, 2014 | 18,941,544 | 18,941,544 | ||||||
Shares issued on stock option exercise - amount | $ 538 | 14 | 524 | |||||
Shares issued on stock option exercise - shares | 137,937 | 137,937 | ||||||
Stock compensation - options | $ 489 | 489 | ||||||
Stock compensation - restricted stock | 82 | 82 | ||||||
Foreign currency translation adjustments | (440) | (440) | ||||||
Vesting of restricted stock - amount | $ (18) | 10 | (28) | |||||
Vesting of restricted stock - shares | 102,334 | 102,334 | ||||||
Purchase of stock | $ (9,388) | (9,388) | ||||||
Net income (loss) | 2,840 | 2,869 | (29) | |||||
Ending balance at Dec. 31, 2015 | $ 66,016 | $ 1,918 | $ 177,007 | $ (907) | $ (94,051) | $ (17,808) | $ (143) | |
Ending balance - shares at Dec. 31, 2015 | 19,181,815 | 19,181,815 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Cash Flows [Abstract] | ||
Net loss | $ 2,840 | $ (2,131) |
Loss (gain) from discontinued operations, net of tax | 0 | (61) |
Adjustments to reconcile net loss from continuing operations to net cash provided by operating activities | ||
Depreciation and amortization of financing fees | 2,472 | 2,828 |
Amortization of intangible assets | 235 | 305 |
Intangible asset impairment | 150 | 0 |
Loss on long-lived asset disposals | 114 | 298 |
Foreign exchange loss | 0 | 0 |
Stock-based compensation | 571 | 1,003 |
Changes in deferred income taxes | 183 | 196 |
Provision for allowance for doubtful accounts | (22) | 52 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (217) | 2,878 |
Inventories | 2,101 | (46) |
Prepaid expenses and other assets | (757) | 249 |
Due from insurance company | 0 | 0 |
Income taxes receivable and payable | 158 | (25) |
Accounts payable and other liabilities | 723 | (2,003) |
Net cash provided by operating activities | 8,551 | 3,665 |
INVESTING ACTIVITIES: | ||
Cash paid for property, equipment and improvements | (2,910) | (1,653) |
Change in restricted cash | 0 | 268 |
Net cash used in investing activities | (2,910) | (1,385) |
FINANCING ACTIVITIES: | ||
Cash paid to repurchase treasury stock | (9,388) | (762) |
Proceeds from exercise of stock options | 538 | 11 |
Vesting of restricted stock - tax withholdings | (18) | 0 |
Net cash used in financing activities | (8,868) | (751) |
Effect of exchange rate changes on cash and cash equivalents | (91) | 116 |
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (3,318) | 1,645 |
Cash and cash equivalents, beginning of period | 17,711 | 16,066 |
Cash and cash equivalents, end of period | 14,393 | 17,711 |
Supplemental Cash Flow Information: | ||
Income taxes paid | 52 | 60 |
Construction in Process in accounts payable | 0 | 1,019 |
Interest paid | $ 150 | $ 76 |
Note 1 - Summary of Operations
Note 1 - Summary of Operations and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Note 1 - Summary Of Operations And Significant Accounting Policies | |
Summary of Operations and Significant Accounting Policies | Note 1 - Summary of Operations and Significant Accounting Policies a. We offer products and services ranging from power solutions to communications and electronics systems. Through our engineering and collaborative approach to problem solving, we serve government, defense and commercial customers across the globe. We design, manufacture, install and maintain power and communications systems including: rechargeable and non-rechargeable batteries, charging systems, communications and electronics systems and accessories, and custom engineered systems. We sell our products worldwide through a variety of trade channels, including original equipment manufacturers (“OEMs”), industrial and defense supply distributors, and directly to U.S. and international defense departments. b. The consolidated financial statements are prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) and include the accounts of Ultralife Corporation, our wholly-owned subsidiaries, Ultralife Batteries (UK) Ltd. (“Ultralife UK”), ABLE New Energy Co., Limited, and its wholly-owned subsidiary ABLE New Energy Co., Ltd. (“ABLE” collectively), and our majority-owned subsidiary Ultralife Batteries India Private Limited (“India JV”). Intercompany accounts and transactions have been eliminated in consolidation. Final adjustments relating to the divested operations of RedBlack Communications, Inc. (“RedBlack”) are reported as discontinued operations in the 2014 statement of operations. c. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at year end and the reported amounts of revenues and expenses during the reporting period. Key areas affected by estimates include: (a) carrying value of goodwill and intangible assets; (b) reserves for deferred tax assets, excess and obsolete inventory, warranties, and bad debts; (c) profitability on development contracts, if any; (d) various expense accruals; and (e) stock-based compensation. Our actual results could differ from these estimates. d. Reclassifications Certain items previously reported in specific financial statement captions have been reclassified to conform to the current presentation. e For purposes of the Consolidated Statements of Cash Flows, we consider all demand deposits with financial institutions and financial instruments with original maturities of three months or less to be cash equivalents. For purposes of the Consolidated Balance Sheet, the carrying value approximates fair value because of the short maturity of these instruments. Our cash balances may at times exceed federally insured limits. We have not experienced any losses in these accounts and believe we are not exposed to any significant risk with respect to cash and cash equivalents. f. Changes in our allowance for doubtful accounts during the years ended December 31, 2015 and 2014 were as follows: 2015 2014 Balance at beginning of year $ 340 $ 288 Amounts charged to expense 31 52 Net write-offs (recoveries) (53 ) — Foreign currency translation (18 ) — Total $ 300 $ 340 g. Inventories are stated at the lower of cost or market with cost determined under the first-in, first-out (FIFO) method. We record provisions for excess, obsolete or slow-moving inventory based on changes in customer demand, technology developments or other economic factors. h. Property, Plant and Equipment Property, plant and equipment are stated at cost. Estimated useful lives are as follows: Buildings 10 – 20 years Machinery and Equipment 5 – 10 years Furniture and Fixtures 3 – 10 years Computer Hardware and Software 3 – 5 years Leasehold Improvements Lesser of useful life or lease term Depreciation and amortization are computed using the straight-line method. Betterments, renewals and extraordinary repairs that extend the life of the assets are capitalized. Other repairs and maintenance costs are expensed when incurred. When disposed, the cost and accumulated depreciation applicable to assets retired are removed from the accounts and the gain or loss on disposition is recognized in operating income (expense). i. Long-Lived Assets, Goodwill and Intangibles We regularly assess all of our long-lived assets for impairment when events or circumstances indicate that their carrying amounts may not be recoverable. For property, plant and equipment and amortizable intangible assets, this is accomplished by comparing the expected undiscounted future cash flows of the assets with the respective carrying amount as of the date of assessment. Should aggregate future cash flows be less than the carrying value, a write-down would be required, measured as the difference between the carrying value and the fair value of the asset. Fair value is estimated either through the assistance of an independent valuation or as the present value of expected discounted future cash flows. The discount rate used by us in our evaluation approximates our weighted average cost of capital. If the expected undiscounted future cash flows exceed the respective carrying amount as of the date of assessment, no impairment is recognized. We did not record any impairments of property, plant and equipment or amortizable intangible assets in the years ended December 31, 2015 or 2014. We do not amortize goodwill and intangible assets with indefinite lives, but instead measure these assets for impairment at least annually, or when events indicate that impairment may exist. We amortize intangible assets that have definite lives so that the economic benefits of the intangible assets are being recognized as expense over their weighted-average estimated useful lives. The impairment analysis of goodwill consists first of a review of various qualitative factors of the identified reporting units to determine whether it is more likely than not that the fair value of a reporting unit exceeds its carrying amount, including goodwill. This review includes, but is not limited to, an evaluation of the macroeconomic, industry or market, and cost factors relevant to the reporting unit as well as financial performance and entity or reporting unit events that may affect the value of the reporting unit. If this review leads to the determination that it is more likely than not that the fair value of the reporting unit is greater than its carrying amount, further impairment testing is not required. However, if this review cannot support such a conclusion, or at our discretion, quantitative impairment steps are performed. Similarly, the analysis for indefinite-lived intangible assets consists of review of various qualitative factors to determine if it is more likely than not that the indefinite-lived intangible asset is not impaired. If such a conclusion cannot be supported, or at our discretion, quantitative impairment steps are performed. The quantitative impairment test for goodwill consists of a comparison of the fair value of the reporting unit with the carrying amount of the reporting unit to which it is assigned. If the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is considered not impaired. If the carrying amount of a reporting unit exceeds its fair value, a second step of the goodwill impairment test is performed to measure the amount of impairment loss, if any. The impairment test for intangible assets with indefinite lives consists of a comparison of the fair value of the intangible assets with their carrying amounts. If the carrying value of the intangible assets exceeds the fair value, an impairment loss is recognized in an amount equal to that excess. We determine the fair value of the reporting unit for goodwill impairment testing based on a discounted cash flow model. We determine the fair value of our intangibles assets with indefinite lives (trademarks) through the royalty relief income valuation approach. Due to e recorded a partial impairment of our McDowell Research, Ltd. trademark in the year ended December 31, 2015. This impairment amounted to $150. No impairments of long-lived intangible assets were recorded in the year ended December 31, 2014. Future amortization expense of amortizable intangible assets will be approximately $166, $121, $85, $62 and $49 for the fiscal years ending December 31, 2016 through 2020, respectively, and $52 thereafter. j. Translation of Foreign Currency The financial statements of our foreign subsidiaries are translated into U.S. dollar equivalents, with translation adjustments recorded as a component of accumulated other comprehensive income. Exchange gains and (losses) relate to foreign currency transactions and balances included in net income (loss) for the years ended December 31, 2015 and 2014 were $48 and $(235), respectively. k . Revenue Recognition Product Sales – In general, revenues from the sale of products are recognized when products are shipped. When products are shipped with terms that require transfer of title upon delivery at a customer’s location, revenues are recognized on the date of delivery. A provision is made at the time the revenue is recognized for warranty costs expected to be incurred. Customers, including distributors, do not have a general right of return on products shipped. Technology Contracts – We recognize revenue using the proportional effort method based on the relationship of costs incurred to date to the total estimated cost to complete the contract. Elements of cost include direct material, labor and overhead. If a loss on a contract is estimated, the full amount of the loss is recognized immediately. We allocate costs to all technology contracts based upon actual costs incurred including an allocation of certain research and development costs incurred. Deferred Revenue – l. Warranty Reserves We estimate future costs associated with expected product failure rates, material usage and service costs in the development of our warranty obligations. Warranty reserves, included in other current liabilities and other long-term liabilities as applicable on our Consolidated Balance Sheets, are based on historical experience of warranty claims. In the event the actual results of these items differ from the estimates, an adjustment to the warranty obligation would be recorded. m. Shipping and Handling Costs Costs incurred by us related to shipping and handling are included in cost of products sold. Amounts charged to customers pertaining to these costs are reflected as revenue. n. Advertising Expenses Advertising costs are expensed as incurred and are included in selling, general and administrative expenses in the accompanying Consolidated Statements of Operations. Such expenses amounted to $59 and $43 for the years ended December 31, 2015 and 2014, respectively. o. Research and Development Research and development expenditures are charged to operations as incurred. The majority of research and development expenses pertain to salaries and benefits, developmental supplies, depreciation and other contracted services. During 2015 and 2014, we expended $6,112 and $5,648, respectively, on research and development, including $509 and $315, respectively, on customer sponsored research and development activities, which are included in cost of goods sold. We recognized $509 and $317 of revenue relating to these activities during 2015 and 2014, respectively. In 2011, we entered into a collaboration agreement with the New York State Energy Research and Development Authority (“NYSERDA”), to develop and demonstrate a large hybrid grid-connected energy storage system. This agreement was terminated by NYSERDA in the second quarter of 2013, per the terms of the agreement. We had planned to continue this project internally with smaller form batteries which provide greater opportunity and applicability in the markets we serve. However, we decided not to further pursue the development of this project, and recorded a write-off of capitalized costs totaling $161 in 2014 relating to this project. p. Environmental Costs Environmental expenditures that relate to current operations are expensed. Remediation costs that relate to an existing condition caused by past operations are accrued when it is probable that these costs will be incurred and can be reasonably estimated. q. Income Taxes We account for income taxes using the asset and liability method. Under this method, deferred tax assets and liabilities are determined based on differences between financial reporting and tax basis of assets and liabilities and are measured using the enacted tax rates and laws that are expected to be in effect when the differences are expected to reverse. A valuation allowance is required when it is more likely than not that the recorded value of a deferred tax asset will not be realized. As of December 31, 2015, we continued to recognize a valuation allowance in the U.S. and U.K. on our net deferred tax assets to the extent that temporary tax differences and the U.S. and U.K. net operating loss and tax credit carryforwards resulting in the deferred tax asset are not able to be offset by future reversing temporary differences. The assessment of the realizability of the U.S. NOL was based on a number of historical factors including, our history of net operating losses, the volatility of our earnings, our historical operating volatility, our historical inability to accurately forecast earnings for future periods and the continued uncertainty of the general business climate as of the end of 2015. We concluded that these historical factors represent sufficient negative evidence and have concluded that we should record a full valuation allowance against these net deferred tax assets. We also recorded a full valuation allowance on our net deferred tax asset for the year ended December 31, 2014. At December 31, federal tax examination, resulting in a $21.4 million increase in the amount of our reported domestic NOL carryforward. r. Concentration Related to Customers and Suppliers During the years ended December 31, 2015 and 2014, we had one major customer, a large defense primary contractor, which comprised 24% and 18% of our revenues, respectively. There were no other customers that comprised greater than 10% of our total revenues during these years. We had no customers who comprised 10% or more of our trade accounts receivable at December 31, 2015. We had one customer who comprised 16% of our trade accounts receivable at December 31, 2014. Currently, we do not experience significant seasonal trends in our revenues. Since a significant portion of our revenues are based on purchases from U.S. and allied country defense departments, the timing of our sales could be impacted by delays in the government budget process and the decisions to deploy resources to support military purchases of our products. We generally do not distribute our products to a concentrated geographical area nor is there a significant concentration of credit risks arising from individuals or groups of customers engaged in similar activities, or who have similar economic characteristics. While direct and indirect sales to the U.S. Department of Defense have been substantial during 2015 and 2014, we do not consider this customer to be a significant credit risk. We do not normally obtain collateral on trade accounts receivable. Certain materials and components used in our products are available only from a single or a limited number of suppliers. As such, some materials and components could become in short supply resulting in limited availability and/or increased costs. Additionally, we may elect to develop relationships with a single or limited number of suppliers for materials and components that are otherwise generally available. Although we believe that alternative suppliers are available to supply materials and components that could replace materials and components currently used and that, if necessary, we would be able to redesign our products to make use of such alternatives, any interruption in the supply from any supplier that serves as a sole source could delay product shipments and have a material adverse effect on our business, financial condition and results of operations. We have experienced interruptions of product deliveries by sole source suppliers in the past. s. Fair Value Measurements and Disclosures Fair value is defined as the price that would be received for an asset or the exit price that would be paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. Fair value is estimated by applying the following hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement: Level 1: Quoted prices in active markets for identical assets or liabilities. Level 2: Observable inputs, other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or that we corroborate with observable market data for substantially the full term of the related assets or liabilities. Level 3: Unobservable inputs supported by little or no market activity that are significant to the fair value of the assets or liabilities. The fair value of financial instruments approximated their carrying values at December 31, 2015 and 2014. t. Earnings (Loss) Per Share Basic earnings (loss) per share is computed by dividing net income or loss by the weighted average number of common shares outstanding for the period. Diluted earnings per share calculations reflect the assumed exercise and conversion of dilutive employee stock options and unvested restricted stock, if any, applying the treasury stock method. Diluted earnings per share in 2015 include 1,312,282 outstanding in-the-money stock options which add 260,318 shares to the number of shares outstanding, and include 32,800 restricted stock units which add 15,385 shares outstanding. Due to the net loss in 2014, diluted earnings per share was equal to basic earnings per share, as all potential shares were anti-dilutive. Diluted earnings per share calculations exclude the effect of approximately 945,687 and 2,195,222 employee stock options and restricted stock shares in 2015 and 2014, respectively, since such options have an exercise price in excess of the weighted average market price of the Company’s common stock. u. Stock-Based Compensation We have various stock-based employee compensation plans, which are described more fully in Note 10. The compensation cost relating to share-based payment transactions is measured at the grant date, based on the estimated fair value of the award, and is recognized as expense over the employee’s requisite service period (generally the vesting period of the equity award). v. Segment Reporting We have two operating segments – Battery & Energy Products, and Communications Systems. The basis for determining our operating segments is the manner in which financial information is used by us in monitoring our operations. Management operates and organizes itself according to business units that comprise unique products and services across geographic locations. w. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued guidance related to revenue from contracts with customers. Under this guidance, revenue is recognized when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. The updated standard will replace most existing revenue recognition guidance under GAAP when it becomes effective and permits the use of either the retrospective or cumulative effect transition method. The FASB has approved a one year deferral of this standard, and this pronouncement is now effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period and is to be applied using one of two retrospective application methods, with early application permitted for annual reporting periods beginning after December 15, 2016. While we have not completed our impact analysis, we do not expect the adoption to have a material impact on our Consolidated Financial Statements. We do not anticipate early adoption of the standard. In July 2015, the FASB issued Accounting Standards Update No. 2015-11, "Simplifying the Measurement of Inventory," which simplifies the subsequent measurement of inventory by using only the lower of cost and net realizable value. This update does not apply to inventory measured using last-in, first-out method. This guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2016, and must be applied on a retrospective basis with early adoption permitted. The adoption is not expected to have a material impact on our Consolidated Financial Statements. In February 2016, the Financial Accounting Standards Board issued guidance relating to accounting for leases by lessors and lessees. The guidance will require, among other things, that lessees recognize a right-to-use asset and related lease liability for all significant financing and operating leases, and specifies where in the statement of cash flows the related lease payments are to be presented. The guidance is effective for years beginning after December 15, 2018 (calendar year 2019 for us), and early adoption is permitted. The Company has not yet considered the ramifications of this new standard on either our reported financial position or results of operations, but believe they may be significant. We have not yet determined whether we will adopt the standard in advance of its required effective date. |
Note 2 - Dispositions, Relocati
Note 2 - Dispositions, Relocations and Exit Activities | 12 Months Ended |
Dec. 31, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Dispositions, Relocations and Exit Activities | Note 2- Dispositions, Relocations and Exit Activities During 2014, we were informed by local government authorities in Shenzhen, China that the lease for our facility there would not be extended, and we commenced a search for an alternate site to relocate our facility. In July 2014, our subsidiary in China entered into a lease for a replacement facility, also located in Shenzhen. During the fourth quarter of 2014, our subsidiary in China vacated its former facility premises and substantially completed a move and transition to this new facility. The Company received compensation from the local government authorities for leasehold improvements and moving-related costs totaling $815, of which $596 was recognized as a reduction of expenses incurred during 2014, which expenses totaled $841. It is the CompanyÂ’s policy to recognize this compensation as a reduction of expenses as the expenses are recognized. Additional government compensation totaling $219 was recognized as a reduction of expense in 2015. The related expenses incurred in 2015 totaled $221. The relocation payments were complete as of June 2015. During 2014, we elected to terminate our lease for our U.K. office and repair facility which was to have expired in May 2018. The termination of this lease was effective as of January 31, 2015. Also in 2012, we sold 100% of our ownership interest in RedBlack. During 2014, we recognized $61 of expense in discontinued operations arising from customary post-closing working capital adjustments relating to that sale. |
Note 3 - Acquisitions
Note 3 - Acquisitions | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Note 3 - Acquisitions | Note 3 – Acquisition On January 13, 2016, Ultralife UK Limited (the “Merger Subsidiary”), a U.K. corporation and the Company’s wholly-owned subsidiary, completed the acquisition of all of the outstanding stock of Accutronics Limited (“Accutronics”), a U.K. corporation based in Newcastle-under-Lyme, U.K., from Intrinsic Equity Limited, Catapult Growth Fund Limited Partnership, MJF Pension Trustees Limited, Robert Andrew Phillips and Michael Allen (collectively, the “Sellers”). There are no material relationships between the Company or Merger Subsidiary and any of the Sellers, other than pertaining to this acquisition. Accutronics is a leading independent designer and manufacturer of smart batteries and charger systems for high-performance, feature-laden portable and handheld electronic devices. Accutronics will be included in our Battery & Energy Products Segment. We acquired Accutronics to advance our strategy of commercial revenue diversification, to expand our geographical penetration, and to achieve revenue growth from new product development. We expect substantial sales synergies between Accutronics and our existing commercial battery business as we cross-sell our existing products and acquired Accutronics’ products to our respective customer bases. The acquisition was completed pursuant to the terms of a Share Purchase Agreement dated January 13, 2016, by and among the Merger Subsidiary and the Sellers. The Merger Subsidiary paid an aggregate purchase price of £7.708 million (approximately $11.2 million) in cash, including a net working capital/debt adjustment in the amount of £.133 million (approximately $.2 million), and in exchange the Merger Subsidiary received all of the outstanding shares of Accutronics stock. Monies to fund the purchase price were advanced to the Merger Subsidiary from the Company’s general corporate funds. The final allocation of the purchase price to the assets and liabilities acquired has not yet been completed. |
Note 4 - Share Repurchase Progr
Note 4 - Share Repurchase Program | 12 Months Ended |
Dec. 31, 2015 | |
Other Liabilities Disclosure [Abstract] | |
Note 4 - Share Repurchase Program | Note 4 – Share Repurchase Program On April 28, 2014, the Company’s Board of Directors approved a share repurchase program (the “Share Repurchase Program”) which became effective on May 1, 2014, under which the Company was authorized to repurchase up to 1.8 million shares of its outstanding common stock over a period not to exceed twelve months. The Share Repurchase Program has been extended through June 2, 2016, and the maximum number of shares authorized to be repurchased under the program has been increased to 3.4 million shares. Share repurchases under this program are made in accordance with SEC Rule 10b-18 using a variety of methods, which may include open market purchases, privately negotiated transactions and block trades, or any combination of such methods, in compliance with applicable insider trading and other securities laws and regulations. With the exception of repurchases made during stock trading black-out periods under a 10b5-1 Plan, the timing, manner, price and amount of any repurchases are determined at the Company’s discretion. The Share Repurchase Program may be suspended, terminated or modified by the Company at any time and for any reason. The Share Repurchase Program does not obligate the Company to repurchase any specific number of shares. In 2015, we repurchased a total of 2,258,929 shares of our common stock for an aggregate consideration of $9,388, of which 2,225,437 shares were repurchased under the Share Repurchase Program for an aggregate amount of $9,228 (including fees and commissions). In 2014, we repurchased a total of 227,974 shares of our common stock for an aggregate consideration of $762, of which 216,754 shares were repurchased under the Share Repurchase Program for an aggregate amount of $722 (including fees and commissions). |
Note 5 - Supplemental Balance S
Note 5 - Supplemental Balance Sheet Information | 12 Months Ended |
Dec. 31, 2015 | |
Note 5 - Supplemental Balance Sheet Information | |
Supplemental Balance Sheet Information | Note 5 - Supplemental Balance Sheet Information a. Inventory Inventories are stated at the lower of cost or market with cost determined under the first-in, first-out (FIFO) method. The composition of inventories was: December 31, 2015 2014 Raw materials $ 11,602 $ 15,100 Work in process 1,560 1,489 Finished products 10,652 9,497 Total $ 23,814 $ 26,086 b. Property, Plant and Equipment Major classes of property, plant and equipment consisted of the following: December 31, 2015 2014 Land $ 123 $ 123 Buildings and leasehold improvements 7,490 7,437 Machinery and equipment 49,609 48,054 Furniture and fixtures 1,974 1,811 Computer hardware and software 4,585 4,452 Construction in progress 745 1,351 64,526 63,228 Less – Accumulated depreciation (55,488 ) (53,416 ) Total $ 9,038 $ 9,812 Estimated costs to complete construction in progress as of December 31, 2015 and 2014 were approximately $180 and $586, respectively. Depreciation expense was $2,401 and $2,757 for the years ended December 31, 2015 and 2014, respectively. c. Impairment of Goodwill, Intangible Assets and Long-Lived Assets We elected to forego the qualitative assessment for our three identified reporting units (Battery & Energy Products business, Communications Systems business, and Able (which is a subset of our Battery & Energy Products business), and conducted a quantitative assessment. The fair value for our reporting units subjected to this quantitative test could not be determined using readily available quoted Level 1 inputs or Level 2 inputs that were observable in active markets. Therefore, we used an income approach to estimate the fair value of the reporting units, using Level 3 inputs. To estimate the fair value of the reporting units, we used significant estimates and judgments, including an assessment of our future revenue prospects, particularly government/defense opportunities, as well as our estimates of the probabilities of the opportunities being funded, awarded, and awarded to us. Other key estimates and factors used in the valuation model included revenue growth rates and profit margins based on internal forecasts, as well as industry and market based terminal growth rates, inputs to the weighted-average cost of capital used to discount future cash flows, and earnings multiples. As a result of the goodwill impairment tests performed during 2015 and 2014, we determined that an impairment was not required. Similarly, for our four other indefinite-lived intangible assets (trademarks and trade names), we elected to forego the qualitative assessment and proceeded to perform quantitative assessments. The fair value for our indefinite-lived intangible assets subjected to this quantitative test could not be determined using readily available quoted Level 1 inputs or Level 2 inputs that were observable in active markets. Therefore, we used a royalty relief approach, to estimate the fair value of the indefinite-lived intangible assets, using Level 3 inputs. This method also required us to use significant estimates and judgmental factors. The key estimates and factors used in the valuation model included revenue growth rates, as well as industry and market based terminal growth rates, inputs to the weighted-average cost of capital used to discount future cash flows, and determined royalty rates. As a result of the impairment tests performed during 2015, we determined that an impairment amounting to $150 was required to reduce the carrying value of one Communications Systems business trademark to its estimated fair value. As a result of the impairment tests performed during 2014, we determined that no impairments were required. There is a possibility that our goodwill and other intangible assets, particularly in our Communications Systems business, could be impaired should there be a significant change in our internal forecasts and other assumptions we use in our impairment analysis. During 2015 and 2014, we also evaluated certain fixed assets for impairment utilizing valuation methods that are classified as Level 3 inputs. Based upon the results of this evaluation, no material impairment was indicated. d. Goodwill The following table summarizes the goodwill activity by segment for the years ended December 31, 2015 and 2014: Battery & Energy Products Communi- cations Systems Total Balance – January 1, 2014 $ 4,926 $ 11,493 $ 16,419 Effect of foreign currency translation (12 ) — (12 ) Balance – December 31, 2014 4,914 11,493 16,407 Effect of foreign currency translation (124 ) — (124 ) Balance – December 31, 2015 $ 4,790 $ 11,493 $ 16,283 e. Other Intangible Assets The composition of intangible assets was: December 31, 2015 Cost Accumulated Amortization Net Trademarks $ 3,411 $ — $ 3,411 Patents and technology 4,482 4,217 265 Customer relationships 3,971 3,716 255 Distributor relationships 370 355 15 Total other intangible assets $ 12,234 $ 8,288 $ 3,946 December 31, 2014 Cost Accumulated Amortization Net Trademarks $ 3,567 $ — $ 3,567 Patents and technology 4,509 4,114 395 Customer relationships 4,029 3,679 350 Distributor relationships 391 365 26 Total other intangible assets $ 12,496 $ 8,158 $ 4,338 Amortization of intangible assets was included in the following financial statement captions: Year ended December 31, 2015 2014 Research and development expense $ 130 $ 176 Selling, general and administrative expense 105 129 Total $ 235 $ 305 Except for the impairment charge recorded against a Communications Systems trademark in 2015, the change in the cost value of total intangible assets is a result of the effect of foreign currency exchange rate fluctuations. |
Note 6 - Fair Value of Assets a
Note 6 - Fair Value of Assets and Liabilities | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Note 6 - Fair Value of Assets and Liabilities | Note 6 - Fair Value of Assets and Liabilities Our financial instruments include cash and cash equivalents, trade receivables, accounts payable and accrued liabilities. For these short-term instruments, we have concluded that the historical carrying value is a reasonable estimate of fair value because of the short period of time between the origination of such instruments and their expected realization. During 2015 and 2014, there were no transfers of financial assets between Levels 1, 2 or 3 of fair value measurements. There have been no changes in the methodologies used at December 31, 2015 and December 31, 2014. The table below shows assets measured at fair value on a non-recurring basis. The fair value of goodwill, trademarks and other intangible assets are determined using Level 3 inputs. Assets Measured at Fair Value on a Non-recurring Basis Balance, December 31, 2015 Level 1 Level 2 Level 3 Total Gain / (Loss) Goodwill – Battery & Energy Products Segment $ 4,790 $ — $ — $ 4,790 $ — Goodwill – Communications Systems Segment 11,493 — — 11,493 — Trademark – Battery & Energy Products Segment 711 — — 711 — Trademarks – Communications Systems Segment 2,700 — — 2,700 (150 ) Total $ 19,694 $ — $ — $ 19,694 $ (150 ) The quantitative impairment test for goodwill consists of a comparison of the fair value of the reporting unit with the carrying amount of the reporting unit to which it is assigned. If the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is considered not impaired. If the carrying amount of a reporting unit exceeds its fair value, a second step of the goodwill impairment test is performed to measure the amount of impairment loss, if any. At December 31, 2015, we estimate that the fair value of goodwill exceeds the recorded value by more than 50%. The impairment test for intangible assets with indefinite lives consists of a comparison of the fair value of the intangible assets with their carrying amounts. If the carrying value of the intangible assets exceeds the fair value, an impairment loss is recognized in an amount equal to that excess. We determine the fair value of the reporting unit for goodwill impairment testing based on a discounted cash flow model. We determine the fair value of our intangibles assets with indefinite lives (trademarks) through the royalty relief income valuation approach. For our impairment tests of both goodwill and trademarks, we use key assumptions that include estimates of future customer orders and revenues. The use of such estimates involves inherent uncertainties, and future impairments may be warranted if such future orders and revenues do not materialize. |
Note 7 - Operating Leases
Note 7 - Operating Leases | 12 Months Ended |
Dec. 31, 2015 | |
Note 7 - Operating Leases | |
Operating Leases | Note 7 - Operating Leases We lease various buildings, machinery, land, automobiles and office equipment. Rental expenses for all operating leases were approximately $672 and $775 for the years ended December 31, 2015 and 2014, respectively. Future minimum lease payments under non-cancelable operating leases as of December 31, 2015 are as follows: 2016 2017 2018 2019 2020 $ 571 $ 589 $ 544 $ 415 $ 100 |
Note 8 - Debt
Note 8 - Debt | 12 Months Ended |
Dec. 31, 2015 | |
Note 8 - Debt | |
Note 8 - Debt | Note 8 - Debt Credit Facilities We are party to a Revolving Credit, Guaranty and Security Agreement (the “Credit Agreement”) and related security agreements with PNC Bank, National Association (“PNC”), which provides us a $20 million secured asset-based revolving credit facility that includes a $1 million letter of credit subfacility (the “Credit Facility”). The Credit Agreement provides that the Credit Facility may be increased with the PNC’s concurrence to $35 million prior to the last six months of the term, and expires on May 24, 2017. On April 30, 2014, the Company and PNC entered into an amendment (the “Amendment”) to the Credit Agreement. The Amendment permits the Company to commence the Share Repurchase Program described in Note 4, provided that (a) the Company is not in default under the Credit Agreement, (b) the Company’s undrawn availability under the Credit Agreement is at least $6 million both prior to and immediately following any repurchase, (c) the Company’s undrawn availability under the Credit Agreement plus domestic unrestricted cash is at least $8 million both prior to and immediately following any repurchase, and (d) the Company uses its unrestricted cash for such repurchases and does not request advances against the Credit Agreement for such purposes. On October 28, 2014, the Company and PNC entered into a second amendment to the Credit Agreement which modifies the definition of EBITDA in the Credit Agreement to include non-cash stock- based compensation expense. On April 29, 2015, the Company and PNC entered into a third amendment to the Credit agreement which permitted the Company to extend the Share Repurchase Program to April 30, 2016. On June 15, 2015, the Company and PNC entered into a fourth amendment to the Credit Agreement which permitted the expansion of the Share Repurchase Program described in Note 4 and the extension of this program to June 2, 2016. Finally, on January 13, 2016, Company and PNC entered into a fifth amendment to the Credit Agreement which permitted the Company’s acquisition of Accutronics Ltd. as described in Note 3 above. Our available borrowing limit under the Credit Facility fluctuates from time to time based on a borrowing base formula equal to the sum of up to 85% of eligible accounts receivable plus the least of (a) up to 65% of the eligible inventory and eligible foreign in-transit inventory, (b) up to 85% of the appraised net orderly liquidation value of eligible inventory and eligible foreign in-transit inventory, and (c) $7.5 million, in each case subject to the definitions in the Credit Agreement and reserves required by PNC. Interest is payable quarterly and will accrue on outstanding indebtedness under the Credit Agreement at the alternate base rate, as defined in the Credit Agreement, plus the applicable margin or at the one, two or three month LIBOR rate plus the applicable margin as selected by us from time to time and listed below. Quarterly Average Undrawn Borrowing Availability Applicable Margin for Alternate Base Rate Loans Applicable Margin for LIBOR Rate Loans Greater than $8,000,000 1.00% 2.00% $5,000,000 up to $8,000,000 1.25% 2.25% Less than $5,000,000 1.50% 2.50% We must pay a fee on the Credit Facility’s unused availability of 0.375% per annum and customary letter of credit fees in addition to various collateral monitoring and related fees and expenses. In addition to customary affirmative and negative covenants, we must maintain a fixed charge coverage ratio as defined in the Credit Agreement of 1.15 to 1.00, tested quarterly for the four-quarters then ended. As of December 31, 2015 we were in compliance with all covenants. The Credit Facility is secured by substantially all our assets. Any outstanding advances must be repaid upon expiration of the term of the Credit Facility. Payments must be made during the term to the extent outstanding advances exceed the maximum amount then permitted to be drawn as advances under the Credit Facility and from the proceeds of certain transactions. Upon the occurrence of an event of default, the outstanding obligations may be accelerated and PNC will have other customary remedies. As of December 31, 2015, we had $-0- outstanding under the Credit Facility, an applicable interest rate of 2.43%, approximately $8,927 of borrowing capacity in addition to our unrestricted cash on hand of $14,393, and no outstanding letters of credit related to the Credit Facility. |
Note 9 - Commitments and Contin
Note 9 - Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Note 9 - Commitments And Contingencies | |
Note 9 - Commitments and Contingencies | Note 9 - Commitments and Contingencies a. Indemnity Our organizational documents provide that our directors or officers will be reimbursed for all expenses, to the fullest extent permitted by law arising out of their performance. b. Purchase Commitments As of December 31, 2015, we have made commitments to purchase approximately $511 of production machinery and equipment. c. China Our operating facility in China presents risks Any such event could depress our earnings and have other material adverse effects on our business, financial condition and results of operations. d. Employment Contracts We have an employment contract with Michael D. Popielec, our President and Chief Executive Officer, which remains in effect until terminated by either party. This agreement provides for a base salary, as adjusted for increases at the discretion of our Board of Directors, and includes incentive bonuses based upon attainment of specified quantitative and qualitative performance goals. This agreement also provides for severance payments in the event of specified events of termination of employment. In addition, this agreement provides for a lump sum payment in the event of termination of employment in connection with a change in control. As part of our employment commencement process, employees are required to enter into agreements providing for confidentiality of certain information and the assignment of rights to inventions made by them while employed by us. These agreements also contain certain noncompetition and nonsolicitation provisions effective during the employment term and for varying periods thereafter depending on position and location. There can be no assurance that we will be able to enforce these agreements. All of our employees agree to abide by the terms of a Code of Ethics policy that provides for the confidentiality of certain information received during the course of their employment. e. Product Warranties We estimate future costs associated with expected product failure rates, material usage and service costs in the development of our warranty obligations. Warranty reserves are based on historical experience of warranty claims and generally will be estimated as a percentage of sales over the warranty period. In the event the actual results of these items differ from the estimates, an adjustment to the warranty obligation would be recorded. Changes in our product warranty liability during the years ended December 31, 2015 and 2014 were as follows: 2015 2014 Balance, January 1 $ 376 $ 513 Provision (reversal) for warranties issued (90 ) 122 Settlements made (94 ) (259 ) Balance, December 31 $ 192 $ 376 f . Legal Matters – We are subject to legal proceedings and claims that arise in the normal course of business. We believe that the final disposition of such matters will not have a material adverse effect on our financial position, results of operations or cash flows. Dreamliner Litigation In July 2013, an unoccupied Boeing 787 Dreamliner aircraft operated by Ethiopian Airlines was damaged by a fire while parked at London Heathrow Airport. We participated in and provided technical assistance in support of an investigation of this incident conducted by U.K. and U.S. regulatory authorities as well as by the manufacturer of the aircraft, as we are one of many downstream suppliers to that manufacturer. A final report was issued by the Air Accidents Investigative Branch - - UK Civil Aviation regulatory authority, with findings indicating that the fire was primarily caused by circumstances related to the plane’s emergency locator transmitter (“ELT”) manufactured and installed by another company. A component of the ELT is a battery pack which incorporates Ultralife’s industry-standard lithium manganese dioxide non-rechargeable D-cell. Ultralife has had this cell in production since 2001, with millions of units produced and this cell is widely-used for global defense and commercial applications. This battery product has gone through rigorous safety and qualification testing, including United Nations Transport of Dangerous Goods, Manual of Tests and Criteria, and is authorized for use in aerospace applications under Technical Standard Order C142. On May 4, 2015, we were notified of a lawsuit in which we were named, along with other suppliers to the aircraft manufacturer, concerning that 2013 fire. The suit was filed by Ethiopian Airlines Enterprise in the Commercial Court, Queen’s Bench Division of the High Court of Justice, London. The suit seeks as damages USD 42 million plus other unspecified amounts, including those for loss of use and diminution in value of the aircraft. We maintain liability and products liability insurance through reputable providers, and in accordance with our corporate practices, immediately advised and referred this matter to our insurers. We are working with those insurers and their counsel to respond to and actively defend against this action, which is ongoing. At this time, we believe that there is not a reasonable possibility that this incident will result in a material financial exposure to the Company. Arista Power Litigation Since September 2011, we have been pursuing legal action against Arista Power, Inc. (“Arista”) and our former employee, David Modeen, for, among other things, alleged breach of certain agreements, duties and obligations, including misappropriation of our confidential information and trade secrets, tortious interference, and breach of contract. On January 12, 2016, Arista filed for liquidation under Chapter 7 of the bankruptcy laws of the United States, without accurately identifying our ongoing lawsuit against them. Although we have not withdrawn our lawsuit, nor has it been dismissed, the Company does not intend to submit a Proof of Claim in connection with Arista’s bankruptcy filing, or otherwise continue pursuing its claims against Arista. |
Note 10 - Shareholders' Equity
Note 10 - Shareholders' Equity | 12 Months Ended |
Dec. 31, 2015 | |
Note 10 - Shareholders Equity | |
Note 10 - Shareholders' Equity | Note 10 - Shareholders' Equity a. Stock-based Compensation Expense We recorded non-cash stock compensation expense in each period as follows: 2015 2014 Stock options $ 489 $ 614 Restricted stock grants: Employee 82 29 President and CEO — 150 Board of Directors compensation – stock grant — 210 Total $ 571 $ 1,003 These are more fully discussed as follows: b. Stock Options We have various stock-based employee compensation plans, for which compensation cost is recognized in the financial statements. The cost is measured at the grant date, based on the fair value of the award, and is recognized as an expense over the employee’s requisite service period (generally the vesting period of the equity award). Our shareholders have approved various equity-based plans that permit the grant of stock options, restricted stock and other equity-based awards. In addition, our shareholders have approved the grant of stock options outside of these plans. In June 2004, our shareholders adopted the 2004 Long-Term Incentive Plan (“2004 LTIP”) pursuant to which we were authorized to issue up to 750,000 shares of common stock and grant stock options, restricted stock awards, stock appreciation rights and other stock-based awards. Through shareholder approved amendments to the LTIP in 2006, 2008, 2011, and 2013, the total number of shares authorized under the LTIP were increased to 2,900,000. In June 2014, our shareholders approved the 2014 Long-Term Incentive Plan (“2014 LTIP”) Stock options granted under the LTIPs are either Incentive Stock Options (“ISOs”) or Non-Qualified Stock Options (“NQSOs”). Key employees are eligible to receive ISOs and NQSOs; however, directors and consultants are eligible to receive only NQSOs. Most ISOs vest over a three- or five-year period and expire on the sixth or seventh anniversary of the grant date. All NQSOs issued to non-employee directors vest immediately and expire on either the sixth or seventh anniversary of the grant date. Some NQSOs issued to non-employees vest immediately and expire within three years; others have the same vesting characteristics as options given to employees. As of December 31, 2015, there were 1,447,219 stock options outstanding under the 2004 LTIP and 410,750 stock options outstanding under the 2014 LTIP. On December 30, 2010, pursuant to the terms of his employment agreement, we granted our President and Chief Executive Officer, Michael D. Popielec, options to purchase shares of common stock under the 2004 LTIP as follows: (i) 50,000 shares at $6.42, vesting in annual increments of 12,500 shares over a four-year period commencing December 30, 2011; (ii) 250,000 shares at $6.42, vesting in annual increments of 62,500 shares over a four-year period commencing December 30, 2011; (iii) 200,000 shares at $10.00, with vesting to begin on the date the stock reaches a closing price of $10.00 per share for 15 trading days within a 30-day trading period, with such vesting in annual increments of 50,000 shares over the four anniversary dates of that date; and (iv) 200,000 shares at $15.00, with vesting to begin on the date the stock reaches a closing price of $15.00 per share for 15 trading days within a 30-day trading period, with such vesting in annual increments of 50,000 shares over the four anniversary dates of that date. All such options in items (i) and (ii) shall expire on December 30, 2017. All such options in items (iii) and (iv) shall expire as of the later of December 30, 2017 and five years after the initial vesting commences, but in no event later than December 30, 2020. The options set forth in items (ii), (iii) and (iv) were subject to shareholder approval of an amendment to the 2004 LTIP, which approval was obtained on June 7, 2011. On January 3, 2011, pursuant to the terms of his employment agreement, we granted our President and Chief Executive Officer, Michael D. Popielec, an option to purchase 50,000 shares of common stock at $6.58 under the 2004 LTIP. The option vested in annual increments of 12,500 shares over a four-year period commencing December 30, 2011. The option expires on December 30, 2017. As of December 31, 2015, there was $440 of total unrecognized compensation costs related to outstanding stock options, which is expected to be recognized over a weighted average period of 1.7 years. We use the Black-Scholes option-pricing model to estimate fair value of stock-based awards. The following weighted average assumptions were used to value options granted during the years ended December 31, 2015 and 2014: Years Ended December 31, 2015 2014 Risk-free interest rate 0.72 % 1.10 % Volatility factor 48.54 % 50.70 % Dividends 0.00 % 0.00 % Weighted average expected life (years) 4.15 4.15 Forfeiture rate 13.8 % 13.8 % We used a Monte Carlo simulation option-pricing model to estimate the fair value of market performance stock-based awards, of which there were no new awards in the years ended December 31, 2015 or 2014. We calculate expected volatility for stock options by taking an average of historical volatility over the past five years and a computation of implied volatility. The computation of expected term was determined based on historical experience of similar awards, giving consideration to the contractual terms of the stock-based awards and vesting schedules. The interest rate for periods within the contractual life of the award is based on the U.S. Treasury yield in effect at the time of grant. Forfeiture rates are calculated by dividing unvested shares forfeited by beginning shares outstanding. The pre-vesting forfeiture rate is calculated yearly and is determined using a historical twelve-quarter rolling average of the forfeiture rates. The following tables summarize data for the stock options issued by us: Year Ended December 31, 2015 Number of Shares Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Shares under option – January 1 2,056,122 $ 6.66 Options granted 411,250 4.68 Options exercised (137,937 ) 3.90 Options forfeited or expired (71,466 ) 11.86 Shares under option – December 31 2,257,969 $ 6.30 3.57 $ 3,094 Vested and expected to vest - December 31 2,093,294 $ 6.45 3.39 $ 2,731 Options exercisable – December 31 1,255,736 $ 5.22 2.44 $ 1,786 Year Ended December 31, 2014 Number of Shares Weighted Average Exercise Price Per Share Shares under option – January 1 2,131,622 $ 6.99 Options granted 252,500 3.94 Options exercised (3,067 ) 3.67 Options forfeited or expired (324,933 ) 6.77 Shares under option – December 31 2,056,122 $ 6.66 Options exercisable – December 31 1,296,619 $ 5.63 The following table represents additional information about stock options outstanding at December 31, 2015: Option outstanding Options exercisable Range of Exercise Prices Number of Outstanding Options – December 31, 2015 Weighted-Average Remaining Contractual Life Weighted- Average Exercise Price Number of Options Exercisable at December 31, 2015 Weighted- Average Exercise Price $3.22-$3.99 817,064 4.64 $ 3.78 348,581 $ 3.76 $4.00-$4.99 427,500 2.79 $ 4.47 393,750 4.44 $5.00-$9.99 581,833 2.84 $ 6.60 481,833 6.45 $10.00-$15.00 431,572 3.30 $ 12.48 31,572 12.18 $3.22-$15.00 2,257,969 3.57 $ 6.30 1,255,736 $ 5.22 The weighted average fair value of options granted during the years ended December 31, 2015 and 2014 was $2.32 and $1.60, respectively. The total intrinsic value of options (which is the amount by which the stock price exceeded the exercise price of the options on the date of exercise) exercised during the years ended December 31, 2015 and 2014 was $364 and $3, respectively. Cash flows from excess tax benefits are classified as a part of cash flows from financing activities. Excess tax benefits are realized tax benefits from tax deductions for exercised options in excess of the deferred tax asset attributable to stock compensation costs for such options. We recorded excess tax benefits totaling $287 in 2015, and $0 in 2014. Cash received from option exercises under our stock-based compensation plans for the years ended December 31, 2015 and 2014 was $538 and $11, respectively. c. Restricted Stock Awards On January 29, 2013, we granted 120,000 contingent restricted stock units to our President and Chief Executive Officer, Michael D. Popielec, subject to shareholder approval, which was obtained on June 4, 2013. These restricted stock units vest as follows: (i) 30,000 shares of our common stock will vest on the later of January 1, 2014 or the date when our common stock first reaches a closing price of $4.00 per share for 15 trading days in a 30 trading day period; (ii) 30,000 shares of our common stock will vest on the later of January 1, 2014 or the date when our common stock first reaches a closing price of $5.00 per share for 15 trading days in a 30 trading day period; (iii) 30,000 shares of our common stock will vest on the later of January 1, 2015 or the date when our common stock first reaches a closing price of $4.00 per share for 15 trading days in a 30 trading day period; and (iv) 30,000 shares of our common stock will vest on the later of January 1, 2015 or the date when our common stock first reaches a closing price of $5.00 per share for 15 trading days in a 30 trading day period. The restricted stock units described in (i) and (iii) had achieved their closing price condition prior to shareholder approval and were valued at the closing price on the date of grant. The restricted stock units described in (ii) and (iv) had not yet achieved their closing price conditions and were valued utilizing a Monte Carlo simulation to determine fair value and the derived service period. The weighted average assumptions utilized in this simulation included the risk-free interest rate of 0.21%, volatility of 59.08% and no dividend payouts. The weighted average fair value per share was estimated at $3.62 for an aggregate value of $434. Of this amount, $150 was recognized in selling, general and administrative expenses in the years ended December 31, 2014. The restricted stock units described in (ii) and (iv) both vested during 2015. During 2014, we awarded 49,200 restricted stock units under the 2014 LTIP to certain key employees. These units vest over three years and we estimated their weighted average grant date fair value to be $3.24 per share. $82 and $29 of expense was recorded in 2015 and 2014, respectively, relating to these units. At December 31, 2015, there was $49 of unrecognized compensation expense related to restricted stock grants. d. Reserved Shares We have reserved 3,596,719 shares of common stock under the various stock option plans, warrants and restricted stock awards as of December 31, 2015. |
Note 11 - Income Taxes
Note 11 - Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Note 11 - Income Taxes | |
Note 11 - Income Taxes | Note 11 - Income Taxes Our income tax provision consists of: Years Ended December 31, 2015 2014 Current: Federal $ 4 $ — State 15 12 Foreign 111 65 130 77 Deferred: Federal 169 220 State — — Foreign 11 (29 ) 180 191 Total income tax provision $ 310 $ 268 The income tax provision (benefit) related to discontinued operations was immaterial in 2014. The deferred tax provision in both 2015 and 2014 is principally a result of the increase in the net deferred tax liability related to deferred tax s. In 2015, the deferred provision was reduced by a deferred tax benefit amounting to $51 relating to our $150 impairment of a trademark. Deferred income taxes reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amount used for income tax purposes. Significant components of our deferred tax liabilities and assets are as follows: Years Ended December 31, 2015 2014 Deferred tax liabilities: Property, plant and equipment $ — $ — Intangible assets 4,631 4,462 Total deferred tax liabilities 4,631 4,462 Deferred tax assets: Property, plant and equipment 288 88 Net operating loss carryforwards 27,283 20,164 Tax credit carryforwards 1,596 1,455 Intangible assets 3,391 3,841 Accrued expenses, reserves and other 2,127 2,509 Total deferred tax assets 34,685 28,057 Valuation allowance for deferred tax assets (34,593 ) (27,951 ) Net deferred tax assets 92 106 Net deferred tax liabilities $ 4,539 $ 4,356 Net deferred tax liabilities is comprised of the following balance sheet amounts: Years Ended December 31, 2015 2014 Current deferred tax assets $ 92 $ 106 Non-current deferred tax liabilities (4,631 ) (4,462 ) $ (4,539 ) $ (4,356 ) The valuation allowance for deferred tax assets increased $6,642 and $659 in the years ended December 31, 2015 and 2014, respectively. The 2015 increase in the valuation allowance included an increase of $7,296 relating to the release of our unrecognized tax benefit during 2015 (see below). Excluding the effect of the release of the unrecognized tax benefit during 2015, the valuation allowance would have decreased by $654. In 2015 and 2014, in the U.S. and the U.K., we continue to report a valuation allowance for our deferred tax assets that cannot be offset by reversing temporary differences. We continue to conclude that, based on historical factors, it is more likely than not that we will not fully utilize our U.S. and U.K. NOLs that have accumulated over time. The recognition of a valuation allowance on our deferred tax assets results from our evaluation of all available evidence, both positive and negative. The assessment of the realizability of the NOLs is based on a number of factors including, our history of net operating losses, the volatility of our earnings, our historical operating volatility, our historical inability to accurately forecast earnings for future periods and the continued uncertainty of the general business climate as of the end of 2015. We believe that these historical factors represent negative evidence sufficient to conclude that we should record a full valuation allowance against our deferred tax assets. In both 2015 and 2014, we have not recorded a valuation allowance against our foreign deferred tax assets as we believe that it is more likely than not that they will be realized. We continually assess the carrying value of this asset based on relevant accounting standards. As of December 31, 2015, we have foreign and domestic NOLs and credit carryforwards totaling approximately $86,800 and $1,600, respectively, available to reduce future taxable income. Included in our NOL carryforward are foreign loss carryforwards of approximately $12,400 which can be carried forward indefinitely. The domestic NOL carryforward of $74,400 expires beginning in 2019, through 2034. The domestic NOL carryforward includes approximately $3,000 for which a benefit will be recorded in capital in excess of par value when realized. For financial reporting purposes, income (loss) from continuing operations before income taxes is as follows: Years Ended December 31, 2015 2014 United States $ 2,582 $ (1,808 ) Foreign 568 6 $ 3,150 $ (1,802 ) There are no undistributed earnings of our foreign subsidiaries, at December 31, 2015 or 2014. The provision for income taxes differs from the amount of income tax determined by applying the applicable U.S. statutory federal income tax rate to income (loss) from continuing operations before income taxes as follows: Years Ended December 31, 2015 2014 Statutory income tax rate 34.0 % 34.0 % (Increase) decrease in tax provision resulting from: Equity compensation 2.2 (12.9 ) Income tax credits (4.5 ) 4.2 Foreign tax rates (2.2 ) (1.9 ) Release of unrecognized tax benefits (231.6 ) — Valuation allowance 210.9 (36.6 ) Other 1.0 (1.7 ) Effective income tax rate 9.8 % (14.9 %) Accounting for Uncertainty in Income Taxes Our unrecognized tax benefits related to uncertain tax positions at December 31, 2014 related to Federal and various state jurisdictions. The recorded the release of uncertain tax positions in 2015 relating to the conclusion of a federal tax examination, resulting in a $21.4 million increase in the amount of our reported domestic NOL carryforward. Years Ended December 31, 2015 2014 Balance – beginning of year $ 7,296 $ 7,296 Increases related to current year tax positions — — Increases related to prior year tax positions — — Decreases related to prior year tax positions — — Expiration of statute of limitations for assessment of taxes — — Settlements of examinations (7,296 ) — Balance – end of year $ — $ 7,296 The total unrecognized tax benefit balances at December 31, 2014 was comprised of tax benefits that, if recognized, would result in a deferred tax asset and a corresponding increase in our valuation allowance. As a result, because the benefit would be offset by an increase in the valuation allowance, there would be no net effect on our effective tax rate or income tax provision. We recorded the release of this unrecognized tax benefit amount during 2015 upon the conclusion of a of a federal tax examination, resulting in a $21.4 million increase in the amount of our reported domestic NOL carryforward. We are not required to accrue interest and penalties as the unrecognized tax benefits have been recorded as a decrease in our NOL. Interest and penalties would begin to accrue in the period in which the NOLs related to the uncertain tax positions are utilized. We do not expect our unrecognized tax benefits to change significantly over the next twelve months. As a result of our operations, we file income tax returns in various jurisdictions including U.S. federal, U.S. state and foreign jurisdictions. We are routinely subject to examination by taxing authorities in these various jurisdictions. Our U.S. tax matters for the years 2001 through 2015 remain subject to examination by the Internal Revenue Service (“IRS”) due to our NOL carryforwards. Our U.S. tax matters for the years 2001 through 2015 remain subject to examination by various state and local tax jurisdictions due to our NOL carryforwards. Our tax matters for the years 2009 through 2015 remain subject to examination by the respective foreign tax jurisdiction authorities. |
Note 12 - 401(k) Retirement Ben
Note 12 - 401(k) Retirement Benefit Plan | 12 Months Ended |
Dec. 31, 2015 | |
Note 12 - 401k Retirement Benefit Plan | |
Note 12 - 401(k) Retirement Benefit Plan | Note 12 - 401(k) Retirement Benefit Plan We maintain a defined contribution 401(k) plan covering substantially all employees. Employees can contribute a portion of their salary or wages as prescribed under Section 401(k) of the Internal Revenue Code and, subject to certain limitations, we may, at the discretion of our Board of Directors, authorize an employer contribution based on a portion of the employees' contributions. Since January 2010, we have matched 50% on the first 4% contributed by an employee, or a maximum of 2% of the employeeÂ’s income. For 2015 and 2014, we contributed $201 and $164, respectively, to the 401(k) plan. |
Note 13 - Business Segment Info
Note 13 - Business Segment Information | 12 Months Ended |
Dec. 31, 2015 | |
Note 13 - Business Segment Information | |
Note 13 - Business Segment Information | Note 13 - Business Segment Information We report our results in two operating segments: Battery & Energy Products and Communications Systems. The Battery & Energy Products segment includes: lithium 9-volt, cylindrical and various other non-rechargeable batteries, in addition to rechargeable batteries, uninterruptable power supplies, charging systems and accessories. The Communications Systems segment includes: RF amplifiers, power supplies, cable and connector assemblies, amplified speakers, equipment mounts, case equipment, integrated communication system kits and communications and electronics systems design. We believe that reporting performance at the gross profit level is the best indicator of segment performance. As such we report segment performance at the gross profit level and operating expenses as Corporate charges. 2015: Battery & Energy Products Communi- cations Systems Discontinued Operations Corporate Total Revenue $ 65,272 $ 11,155 $ — $ — $ 76,427 Segment contribution 18,698 4,618 — (19,986 ) 3,330 Interest expense, net (245 ) (245 ) Miscellaneous 65 65 Income tax provision (310 ) (310 ) Noncontrolling interest 29 29 Net income attributable to Ultralife $ 2,869 Total assets $ 35,295 $ 28,849 $ 17,378 $ 81,522 Capital expenditures 355 973 562 1,890 Goodwill 4,790 11,493 16,283 Depreciation and amortization 1,625 98 984 2,707 Intangible asset impairment 150 150 Stock-based compensation 46 3 522 571 2014: Battery & Energy Products Communi- cations Systems Discontinued Operations Corporate Total Revenue $ 56,772 $ 9,722 $ — $ — $ 66,494 Segment contribution 15,516 3,834 — (20,793 ) (1,443 ) Interest expense, net (205 ) (205 ) Miscellaneous (154 ) (154 ) Income tax provision (268 ) (268 ) Income (loss) from discontinued operations (61 ) (61 ) Noncontrolling interest 15 15 Net loss attributable to Ultralife $ (2,116 ) Total assets $ 38,415 $ 29,056 $ 20,171 $ 87,642 Capital expenditures 1,400 1,066 206 2,672 Goodwill 4,914 11,493 16,407 Depreciation and amortization 2,089 89 955 3,133 Stock-based compensation 28 4 971 1,003 U.S. and Non-U.S. Revenue Information (in millions) 1 2015: Total Revenue United States Non-United States Battery & Energy Products $ 65.3 $ 37.1 $ 28.2 Communications Systems 11.1 9.6 1.5 Total $ 76.4 $ 46.7 $ 29.7 61 % 39 % 2014: Total Revenue United States Non-United States Battery & Energy Products $ 56.8 $ 30.7 $ 26.1 Communications Systems 9.7 8.7 1.0 Total $ 66.5 $ 39.4 $ 27.1 59 % 41 % 1 Sales classified to U.S. include shipments to U.S.-based prime contractors which in some cases may serve non-U.S. projects Long-lived assets (including goodwill and intangible assets) held outside the U.S., principally in China, were $4,748 and $5,153 at December 31, 2015 and 2014, respectively. Commercial and Government/Defense Revenue Information: 2015: Total Revenue Commercial Government/ Defense Battery & Energy Products $ 65.3 $ 33.7 $ 31.6 Communications Systems 11.1 — 11.1 Total $ 76.4 $ 33.7 $ 42.7 44 % 56 % 2014: Total Revenue Commercial Government/ Defense Battery & Energy Products $ 56.8 $ 30.1 $ 26.7 Communications Systems 9.7 — 9.7 Total $ 66.5 $ 30.1 $ 36.4 45 % 55 % |
Note 14 - Fire at Manufacturing
Note 14 - Fire at Manufacturing Facility | 12 Months Ended |
Dec. 31, 2015 | |
Note 14 - Fire At Manufacturing Facility | |
Note 14 - Fire at Manufacturing Facility | Note 14 - Fire at Manufacturing Facility In June 2011, we experienced a fire that damaged certain inventory and machinery and equipment at our facility in China. The fire occurred after business hours and was fully extinguished quickly with no injuries, and the plant was back in full operation shortly thereafter with no significant disruption in supply or service to customers. We maintain adequate insurance coverage for this operation. The total amount of the loss pertaining to assets and the related expenses was approximately $1,589, including damaged inventory, business interruption and lost profits. Previous payments received against the loss claim total approximately $1,286, and no gain or loss has been recognized upon receipt of these partial payments. As of December 31, 2015, we reflect a receivable from the insurance company relating to this claim of $177, which is net of our deductible of approximately $125, and represents additional proceeds we expect to receive when the insurer finalizes the claim. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements are prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) and include the accounts of Ultralife Corporation, our wholly-owned subsidiaries, Ultralife Batteries (UK) Ltd. (“Ultralife UK”), ABLE New Energy Co., Limited, and its wholly-owned subsidiary ABLE New Energy Co., Ltd. (“ABLE” collectively), and our majority-owned subsidiary Ultralife Batteries India Private Limited (“India JV”). Intercompany accounts and transactions have been eliminated in consolidation. Final adjustments relating to the divested operations of RedBlack Communications, Inc. (“RedBlack”) are reported as discontinued operations in the 2014 statement of operations. |
Use of Estimates | Management's Use of Judgment and Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at year end and the reported amounts of revenues and expenses during the reporting period. Key areas affected by estimates include: (a) carrying value of goodwill and intangible assets; (b) reserves for deferred tax assets, excess and obsolete inventory, warranties, and bad debts; (c) profitability on development contracts, if any; (d) various expense accruals; and (e) stock-based compensation. Our actual results could differ from these estimates. |
Reclassifications | Reclassifications Certain items previously reported in specific financial statement captions have been reclassified to conform to the current presentation. |
Cash and Cash Equivalents | Cash and Cash Equivalents For purposes of the Consolidated Statements of Cash Flows, we consider all demand deposits with financial institutions and financial instruments with original maturities of three months or less to be cash equivalents. For purposes of the Consolidated Balance Sheet, the carrying value approximates fair value because of the short maturity of these instruments. Our cash balances may at times exceed federally insured limits. We have not experienced any losses in these accounts and believe we are not exposed to any significant risk with respect to cash and cash equivalents. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts Changes in our allowance for doubtful accounts during the years ended December 31, 2015 and 2014 were as follows: 2015 2014 Balance at beginning of year $ 340 $ 288 Amounts charged to expense 31 52 Net write-offs (recoveries) (53 ) — Foreign currency translation (18 ) — Total $ 300 $ 340 |
Inventories | Inventories Inventories are stated at the lower of cost or market with cost determined under the first-in, first-out (FIFO) method. We record provisions for excess, obsolete or slow-moving inventory based on changes in customer demand, technology developments or other economic factors. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are stated at cost. Estimated useful lives are as follows: Buildings 10 – 20 years Machinery and Equipment 5 – 10 years Furniture and Fixtures 3 – 10 years Computer Hardware and Software 3 – 5 years Leasehold Improvements Lesser of useful life or lease term Depreciation and amortization are computed using the straight-line method. Betterments, renewals and extraordinary repairs that extend the life of the assets are capitalized. Other repairs and maintenance costs are expensed when incurred. When disposed, the cost and accumulated depreciation applicable to assets retired are removed from the accounts and the gain or loss on disposition is recognized in operating income (expense). |
Long-Lived Assets, Goodwill and Intangibles | Long-Lived Assets, Goodwill and Intangibles We regularly assess all of our long-lived assets for impairment when events or circumstances indicate that their carrying amounts may not be recoverable. For property, plant and equipment and amortizable intangible assets, this is accomplished by comparing the expected undiscounted future cash flows of the assets with the respective carrying amount as of the date of assessment. Should aggregate future cash flows be less than the carrying value, a write-down would be required, measured as the difference between the carrying value and the fair value of the asset. Fair value is estimated either through the assistance of an independent valuation or as the present value of expected discounted future cash flows. The discount rate used by us in our evaluation approximates our weighted average cost of capital. If the expected undiscounted future cash flows exceed the respective carrying amount as of the date of assessment, no impairment is recognized. We did not record any impairments of property, plant and equipment or amortizable intangible assets in the years ended December 31, 2015 or 2014. We do not amortize goodwill and intangible assets with indefinite lives, but instead measure these assets for impairment at least annually, or when events indicate that impairment may exist. We amortize intangible assets that have definite lives so that the economic benefits of the intangible assets are being recognized as expense over their weighted-average estimated useful lives. The impairment analysis of goodwill consists first of a review of various qualitative factors of the identified reporting units to determine whether it is more likely than not that the fair value of a reporting unit exceeds its carrying amount, including goodwill. This review includes, but is not limited to, an evaluation of the macroeconomic, industry or market, and cost factors relevant to the reporting unit as well as financial performance and entity or reporting unit events that may affect the value of the reporting unit. If this review leads to the determination that it is more likely than not that the fair value of the reporting unit is greater than its carrying amount, further impairment testing is not required. However, if this review cannot support such a conclusion, or at our discretion, quantitative impairment steps are performed. Similarly, the analysis for indefinite-lived intangible assets consists of review of various qualitative factors to determine if it is more likely than not that the indefinite-lived intangible asset is not impaired. If such a conclusion cannot be supported, or at our discretion, quantitative impairment steps are performed. The quantitative impairment test for goodwill consists of a comparison of the fair value of the reporting unit with the carrying amount of the reporting unit to which it is assigned. If the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is considered not impaired. If the carrying amount of a reporting unit exceeds its fair value, a second step of the goodwill impairment test is performed to measure the amount of impairment loss, if any. The impairment test for intangible assets with indefinite lives consists of a comparison of the fair value of the intangible assets with their carrying amounts. If the carrying value of the intangible assets exceeds the fair value, an impairment loss is recognized in an amount equal to that excess. We determine the fair value of the reporting unit for goodwill impairment testing based on a discounted cash flow model. We determine the fair value of our intangibles assets with indefinite lives (trademarks) through the royalty relief income valuation approach. Due to e recorded a partial impairment of our McDowell Research, Ltd. trademark in the year ended December 31, 2015. This impairment amounted to $150. No impairments of long-lived intangible assets were recorded in the year ended December 31, 2014. Future amortization expense of amortizable intangible assets will be approximately $166, $121, $85, $62 and $49 for the fiscal years ending December 31, 2016 through 2020, respectively, and $52 thereafter. |
Translation of Foreign Currency | Translation of Foreign Currency The financial statements of our foreign subsidiaries are translated into U.S. dollar equivalents, with translation adjustments recorded as a component of accumulated other comprehensive income. Exchange gains and (losses) relate to foreign currency transactions and balances included in net income (loss) for the years ended December 31, 2015 and 2014 were $48 and $(235), respectively. |
Revenue Recognition | Revenue Recognition Product Sales – In general, revenues from the sale of products are recognized when products are shipped. When products are shipped with terms that require transfer of title upon delivery at a customer’s location, revenues are recognized on the date of delivery. A provision is made at the time the revenue is recognized for warranty costs expected to be incurred. Customers, including distributors, do not have a general right of return on products shipped. Technology Contracts – We recognize revenue using the proportional effort method based on the relationship of costs incurred to date to the total estimated cost to complete the contract. Elements of cost include direct material, labor and overhead. If a loss on a contract is estimated, the full amount of the loss is recognized immediately. We allocate costs to all technology contracts based upon actual costs incurred including an allocation of certain research and development costs incurred. Deferred Revenue – |
Warranty Reserves | Warranty Reserves We estimate future costs associated with expected product failure rates, material usage and service costs in the development of our warranty obligations. Warranty reserves, included in other current liabilities and other long-term liabilities as applicable on our Consolidated Balance Sheets, are based on historical experience of warranty claims. In the event the actual results of these items differ from the estimates, an adjustment to the warranty obligation would be recorded. |
Shipping and Handling Costs | Shipping and Handling Costs Costs incurred by us related to shipping and handling are included in cost of products sold. Amounts charged to customers pertaining to these costs are reflected as revenue. |
Advertising Expenses | Advertising Expenses Advertising costs are expensed as incurred and are included in selling, general and administrative expenses in the accompanying Consolidated Statements of Operations. Such expenses amounted to $59 and $43 for the years ended December 31, 2015 and 2014, respectively. |
Research and Development | Research and Development Research and development expenditures are charged to operations as incurred. The majority of research and development expenses pertain to salaries and benefits, developmental supplies, depreciation and other contracted services. During 2015 and 2014, we expended $6,112 and $5,648, respectively, on research and development, including $509 and $315, respectively, on customer sponsored research and development activities, which are included in cost of goods sold. We recognized $509 and $317 of revenue relating to these activities during 2015 and 2014, respectively. In 2011, we entered into a collaboration agreement with the New York State Energy Research and Development Authority (“NYSERDA”), to develop and demonstrate a large hybrid grid-connected energy storage system. This agreement was terminated by NYSERDA in the second quarter of 2013, per the terms of the agreement. We had planned to continue this project internally with smaller form batteries which provide greater opportunity and applicability in the markets we serve. However, we decided not to further pursue the development of this project, and recorded a write-off of capitalized costs totaling $161 in 2014 relating to this project. |
Environmental Costs | Environmental Costs Environmental expenditures that relate to current operations are expensed. Remediation costs that relate to an existing condition caused by past operations are accrued when it is probable that these costs will be incurred and can be reasonably estimated. |
Income Taxes | Income Taxes We account for income taxes using the asset and liability method. Under this method, deferred tax assets and liabilities are determined based on differences between financial reporting and tax basis of assets and liabilities and are measured using the enacted tax rates and laws that are expected to be in effect when the differences are expected to reverse. A valuation allowance is required when it is more likely than not that the recorded value of a deferred tax asset will not be realized. As of December 31, 2015, we continued to recognize a valuation allowance in the U.S. and U.K. on our net deferred tax assets to the extent that temporary tax differences and the U.S. and U.K. net operating loss and tax credit carryforwards resulting in the deferred tax asset are not able to be offset by future reversing temporary differences. The assessment of the realizability of the U.S. NOL was based on a number of historical factors including, our history of net operating losses, the volatility of our earnings, our historical operating volatility, our historical inability to accurately forecast earnings for future periods and the continued uncertainty of the general business climate as of the end of 2015. We concluded that these historical factors represent sufficient negative evidence and have concluded that we should record a full valuation allowance against these net deferred tax assets. We also recorded a full valuation allowance on our net deferred tax asset for the year ended December 31, 2014. At December 31, federal tax examination, resulting in a $21.4 million increase in the amount of our reported domestic NOL carryforward. |
Concentration Related to Customers and Suppliers | Concentration Related to Customers and Suppliers During the years ended December 31, 2015 and 2014, we had one major customer, a large defense primary contractor, which comprised 24% and 18% of our revenues, respectively. There were no other customers that comprised greater than 10% of our total revenues during these years. We had no customers who comprised 10% or more of our trade accounts receivable at December 31, 2015. We had one customer who comprised 16% of our trade accounts receivable at December 31, 2014. Currently, we do not experience significant seasonal trends in our revenues. Since a significant portion of our revenues are based on purchases from U.S. and allied country defense departments, the timing of our sales could be impacted by delays in the government budget process and the decisions to deploy resources to support military purchases of our products. We generally do not distribute our products to a concentrated geographical area nor is there a significant concentration of credit risks arising from individuals or groups of customers engaged in similar activities, or who have similar economic characteristics. While direct and indirect sales to the U.S. Department of Defense have been substantial during 2015 and 2014, we do not consider this customer to be a significant credit risk. We do not normally obtain collateral on trade accounts receivable. Certain materials and components used in our products are available only from a single or a limited number of suppliers. As such, some materials and components could become in short supply resulting in limited availability and/or increased costs. Additionally, we may elect to develop relationships with a single or limited number of suppliers for materials and components that are otherwise generally available. Although we believe that alternative suppliers are available to supply materials and components that could replace materials and components currently used and that, if necessary, we would be able to redesign our products to make use of such alternatives, any interruption in the supply from any supplier that serves as a sole source could delay product shipments and have a material adverse effect on our business, financial condition and results of operations. We have experienced interruptions of product deliveries by sole source suppliers in the past. |
Fair Value Measurements and Disclosures | Fair Value Measurements and Disclosures Fair value is defined as the price that would be received for an asset or the exit price that would be paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. Fair value is estimated by applying the following hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement: Level 1: Quoted prices in active markets for identical assets or liabilities. Level 2: Observable inputs, other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or that we corroborate with observable market data for substantially the full term of the related assets or liabilities. Level 3: Unobservable inputs supported by little or no market activity that are significant to the fair value of the assets or liabilities. The fair value of financial instruments approximated their carrying values at December 31, 2015 and 2014. |
Earnings (Loss) Per Share | Earnings (Loss) Per Share Basic earnings (loss) per share is computed by dividing net income or loss by the weighted average number of common shares outstanding for the period. Diluted earnings per share calculations reflect the assumed exercise and conversion of dilutive employee stock options and unvested restricted stock, if any, applying the treasury stock method. Diluted earnings per share in 2015 include 1,312,282 outstanding in-the-money stock options which add 260,318 shares to the number of shares outstanding, and include 32,800 restricted stock units which add 15,385 shares outstanding. Due to the net loss in 2014, diluted earnings per share was equal to basic earnings per share, as all potential shares were anti-dilutive. Diluted earnings per share calculations exclude the effect of approximately 945,687 and 2,195,222 employee stock options and restricted stock shares in 2015 and 2014, respectively, since such options have an exercise price in excess of the weighted average market price of the CompanyÂ’s common stock. |
Stock-Based Compensation | Stock-Based Compensation We have various stock-based employee compensation plans, which are described more fully in Note 10. The compensation cost relating to share-based payment transactions is measured at the grant date, based on the estimated fair value of the award, and is recognized as expense over the employeeÂ’s requisite service period (generally the vesting period of the equity award). |
Segment Reporting | Segment Reporting We have two operating segments – Battery & Energy Products, and Communications Systems. The basis for determining our operating segments is the manner in which financial information is used by us in monitoring our operations. Management operates and organizes itself according to business units that comprise unique products and services across geographic locations. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued guidance related to revenue from contracts with customers. Under this guidance, revenue is recognized when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. The updated standard will replace most existing revenue recognition guidance under GAAP when it becomes effective and permits the use of either the retrospective or cumulative effect transition method. The FASB has approved a one year deferral of this standard, and this pronouncement is now effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period and is to be applied using one of two retrospective application methods, with early application permitted for annual reporting periods beginning after December 15, 2016. While we have not completed our impact analysis, we do not expect the adoption to have a material impact on our Consolidated Financial Statements. We do not anticipate early adoption of the standard. In July 2015, the FASB issued Accounting Standards Update No. 2015-11, "Simplifying the Measurement of Inventory," which simplifies the subsequent measurement of inventory by using only the lower of cost and net realizable value. This update does not apply to inventory measured using last-in, first-out method. This guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2016, and must be applied on a retrospective basis with early adoption permitted. The adoption is not expected to have a material impact on our Consolidated Financial Statements. In February 2016, the Financial Accounting Standards Board issued guidance relating to accounting for leases by lessors and lessees. The guidance will require, among other things, that lessees recognize a right-to-use asset and related lease liability for all significant financing and operating leases, and specifies where in the statement of cash flows the related lease payments are to be presented. The guidance is effective for years beginning after December 15, 2018 (calendar year 2019 for us), and early adoption is permitted. The Company has not yet considered the ramifications of this new standard on either our reported financial position or results of operations, but believe they may be significant. We have not yet determined whether we will adopt the standard in advance of its required effective date. |
Note 1 - Summary of Operation22
Note 1 - Summary of Operations and Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Note 1 - Summary Of Operations And Significant Accounting Policies | |
Changes in Allowance for Doubtful Accounts | 2015 2014 Balance at beginning of year $ 340 $ 288 Amounts charged to expense 31 52 Net write-offs (recoveries) (53 ) — Foreign currency translation (18 ) — Total $ 300 $ 340 |
Note 5 - Supplemental Balance23
Note 5 - Supplemental Balance Sheet Information (Tables) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Note 5 - Supplemental Balance Sheet Information | ||
Inventory | December 31, 2015 2014 Raw materials $ 11,602 $ 15,100 Work in process 1,560 1,489 Finished products 10,652 9,497 Total $ 23,814 $ 26,086 | |
Major classes of property, plant and equipment | December 31, 2015 2014 Land $ 123 $ 123 Buildings and leasehold improvements 7,490 7,437 Machinery and equipment 49,609 48,054 Furniture and fixtures 1,974 1,811 Computer hardware and software 4,585 4,452 Construction in progress 745 1,351 64,526 63,228 Less – Accumulated depreciation (55,488 ) (53,416 ) Total $ 9,038 $ 9,812 | |
Goodwill activity by segment | Battery & Energy Products Communi- cations Systems Total Balance – January 1, 2014 $ 4,926 $ 11,493 $ 16,419 Effect of foreign currency translation (12 ) — (12 ) Balance – December 31, 2014 4,914 11,493 16,407 Effect of foreign currency translation (124 ) — (124 ) Balance – December 31, 2015 $ 4,790 $ 11,493 $ 16,283 | |
Composition of intangible assets | December 31, 2015 Cost Accumulated Amortization Net Trademarks $ 3,411 $ — $ 3,411 Patents and technology 4,482 4,217 265 Customer relationships 3,971 3,716 255 Distributor relationships 370 355 15 Total other intangible assets $ 12,234 $ 8,288 $ 3,946 | December 31, 2014 Cost Accumulated Amortization Net Trademarks $ 3,567 $ — $ 3,567 Patents and technology 4,509 4,114 395 Customer relationships 4,029 3,679 350 Distributor relationships 391 365 26 Total other intangible assets $ 12,496 $ 8,158 $ 4,338 |
Amortization of intangible assets | Year ended December 31, 2015 2014 Research and development expense $ 130 $ 176 Selling, general and administrative expense 105 129 Total $ 235 $ 305 |
Note 6 - Fair Value of Assets24
Note 6 - Fair Value of Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Note 1 - Summary Of Operations And Significant Accounting Policies | |
Assets Measured at Fair Value on a Non-recurring Basis | Assets Measured at Fair Value on a Non-recurring Basis Balance, December 31, 2015 Level 1 Level 2 Level 3 Total Gain / (Loss) Goodwill – Battery & Energy Products Segment $ 4,790 $ — $ — $ 4,790 $ — Goodwill – Communications Systems Segment 11,493 — — 11,493 — Trademark – Battery & Energy Products Segment 711 — — 711 — Trademarks – Communications Systems Segment 2,700 — — 2,700 (150 ) Total $ 19,694 $ — $ — $ 19,694 $ (150 ) |
Note 7 - Operating Leases (Tabl
Note 7 - Operating Leases (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Note 7 - Operating Leases | |
Future minimum lease payments - operating leases | 2016 2017 2018 2019 2020 $ 571 $ 589 $ 544 $ 415 $ 100 |
Note 9 - Commitment and Conting
Note 9 - Commitment and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Note 9 - Commitment And Contingencies Tables | |
Changes in product warranty liability | 2015 2014 Balance, January 1 $ 376 $ 513 Provision (reversal) for warranties issued (90 ) 122 Settlements made (94 ) (259 ) Balance, December 31 $ 192 $ 376 |
Note 10 - Shareholders' Equity
Note 10 - Shareholders' Equity (Tables) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Note 10 - Shareholders Equity | ||
Components of stock-based compensation expense | 2015 2014 Stock options $ 489 $ 614 Restricted stock grants: Employee 82 29 President and CEO — 150 Board of Directors compensation – stock grant — 210 Total $ 571 $ 1,003 | |
Option assumptions | Years Ended December 31, 2015 2014 Risk-free interest rate 0.72 % 1.10 % Volatility factor 48.54 % 50.70 % Dividends 0.00 % 0.00 % Weighted average expected life (years) 4.15 4.15 Forfeiture rate 13.8 % 13.8 % | |
Stock option activity | The following tables summarize data for the stock options issued by us: Year Ended December 31, 2015 Number of Shares Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Shares under option – January 1 2,056,122 $ 6.66 Options granted 411,250 4.68 Options exercised (137,937 ) 3.90 Options forfeited or expired (71,466 ) 11.86 Shares under option – December 31 2,257,969 $ 6.30 3.57 $ 3,094 Vested and expected to vest - December 31 2,093,294 $ 6.45 3.39 $ 2,731 Options exercisable – December 31 1,255,736 $ 5.22 2.44 $ 1,786 | Year Ended December 31, 2014 Number of Shares Weighted Average Exercise Price Per Share Shares under option – January 1 2,131,622 $ 6.99 Options granted 252,500 3.94 Options exercised (3,067 ) 3.67 Options forfeited or expired (324,933 ) 6.77 Shares under option – December 31 2,056,122 $ 6.66 Options exercisable – December 31 1,296,619 $ 5.63 |
Options - range of exercise prices | Option outstanding Options exercisable Range of Exercise Prices Number of Outstanding Options – December 31, 2015 Weighted-Average Remaining Contractual Life Weighted- Average Exercise Price Number of Options Exercisable at December 31, 2015 Weighted- Average Exercise Price $3.22-$3.99 817,064 4.64 $ 3.78 348,581 $ 3.76 $4.00-$4.99 427,500 2.79 $ 4.47 393,750 4.44 $5.00-$9.99 581,833 2.84 $ 6.60 481,833 6.45 $10.00-$15.00 431,572 3.30 $ 12.48 31,572 12.18 $3.22-$15.00 2,257,969 3.57 $ 6.30 1,255,736 $ 5.22 |
Note 11 - Income Taxes (Tables)
Note 11 - Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Note 11 - Income Taxes | |
Income tax provision | Years Ended December 31, 2015 2014 Current: Federal $ 4 $ — State 15 12 Foreign 111 65 130 77 Deferred: Federal 169 220 State — — Foreign 11 (29 ) 180 191 Total income tax provision $ 310 $ 268 |
Deferred income taxes | Years Ended December 31, 2015 2014 Deferred tax liabilities: Property, plant and equipment $ — $ — Intangible assets 4,631 4,462 Total deferred tax liabilities 4,631 4,462 Deferred tax assets: Property, plant and equipment 288 88 Net operating loss carryforwards 27,283 20,164 Tax credit carryforwards 1,596 1,455 Intangible assets 3,391 3,841 Accrued expenses, reserves and other 2,127 2,509 Total deferred tax assets 34,685 28,057 Valuation allowance for deferred tax assets (34,593 ) (27,951 ) Net deferred tax assets 92 106 Net deferred tax liabilities $ 4,539 $ 4,356 |
Net deferred tax liabilities | Years Ended December 31, 2015 2014 Current deferred tax assets $ 92 $ 106 Non-current deferred tax liabilities (4,631 ) (4,462 ) $ (4,539 ) $ (4,356 ) |
Income (loss) from continuing operations | Years Ended December 31, 2015 2014 United States $ 2,582 $ (1,808 ) Foreign 568 6 $ 3,150 $ (1,802 ) |
Income tax rate reconciliation | Years Ended December 31, 2015 2014 Statutory income tax rate 34.0 % 34.0 % (Increase) decrease in tax provision resulting from: Equity compensation 2.2 (12.9 ) Income tax credits (4.5 ) 4.2 Foreign tax rates (2.2 ) (1.9 ) Release of unrecognized tax benefits (231.6 ) — Valuation allowance 210.9 (36.6 ) Other 1.0 (1.7 ) Effective income tax rate 9.8 % (14.9 %) |
Uncertainty in income taxes | Years Ended December 31, 2015 2014 Balance – beginning of year $ 7,296 $ 7,296 Increases related to current year tax positions — — Increases related to prior year tax positions — — Decreases related to prior year tax positions — — Expiration of statute of limitations for assessment of taxes — — Settlements of examinations (7,296 ) — Balance – end of year $ — $ 7,296 |
Note 13 - Business Segment In29
Note 13 - Business Segment Information (Tables) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Note 13 - Business Segment Information | ||
Business segment information | Battery & Energy Products Communi- cations Systems Discontinued Operations Corporate Total Revenue $ 65,272 $ 11,155 $ — $ — $ 76,427 Segment contribution 18,698 4,618 — (19,986 ) 3,330 Interest expense, net (245 ) (245 ) Miscellaneous 65 65 Income tax provision (310 ) (310 ) Noncontrolling interest 29 29 Net income attributable to Ultralife $ 2,869 Total assets $ 35,295 $ 28,849 $ 17,378 $ 81,522 Capital expenditures 355 973 562 1,890 Goodwill 4,790 11,493 16,283 Depreciation and amortization 1,625 98 984 2,707 Intangible asset impairment 150 150 Stock-based compensation 46 3 522 571 | Battery & Energy Products Communi- cations Systems Discontinued Operations Corporate Total Revenue $ 56,772 $ 9,722 $ — $ — $ 66,494 Segment contribution 15,516 3,834 — (20,793 ) (1,443 ) Interest expense, net (205 ) (205 ) Miscellaneous (154 ) (154 ) Income tax provision (268 ) (268 ) Income (loss) from discontinued operations (61 ) (61 ) Noncontrolling interest 15 15 Net loss attributable to Ultralife $ (2,116 ) Total assets $ 38,415 $ 29,056 $ 20,171 $ 87,642 Capital expenditures 1,400 1,066 206 2,672 Goodwill 4,914 11,493 16,407 Depreciation and amortization 2,089 89 955 3,133 Stock-based compensation 28 4 971 1,003 |
Domestic and international revenue by segment | Battery & Energy Products Communi- cations Systems Discontinued Operations Corporate Total Revenue $ 56,772 $ 9,722 $ — $ — $ 66,494 Segment contribution 15,516 3,834 — (20,793 ) (1,443 ) Interest expense, net (205 ) (205 ) Miscellaneous (154 ) (154 ) Income tax provision (268 ) (268 ) Income (loss) from discontinued operations (61 ) (61 ) Noncontrolling interest 15 15 Net loss attributable to Ultralife $ (2,116 ) Total assets $ 38,415 $ 29,056 $ 20,171 $ 87,642 Capital expenditures 1,400 1,066 206 2,672 Goodwill 4,914 11,493 16,407 Depreciation and amortization 2,089 89 955 3,133 Stock-based compensation 28 4 971 1,003 U.S. and Non-U.S. Revenue Information (in millions) 1 2015: Total Revenue United States Non-United States Battery & Energy Products $ 65.3 $ 37.1 $ 28.2 Communications Systems 11.1 9.6 1.5 Total $ 76.4 $ 46.7 $ 29.7 61 % 39 % | 2014: Total Revenue United States Non-United States Battery & Energy Products $ 56.8 $ 30.7 $ 26.1 Communications Systems 9.7 8.7 1.0 Total $ 66.5 $ 39.4 $ 27.1 59 % 41 % |
Sector revenue by segment | 2015: Total Revenue Commercial Government/ Defense Battery & Energy Products $ 65.3 $ 33.7 $ 31.6 Communications Systems 11.1 — 11.1 Total $ 76.4 $ 33.7 $ 42.7 44 % 56 % | 2014: Total Revenue Commercial Government/ Defense Battery & Energy Products $ 56.8 $ 30.1 $ 26.7 Communications Systems 9.7 — 9.7 Total $ 66.5 $ 30.1 $ 36.4 45 % 55 % |
Note 1 - Summary of Operation30
Note 1 - Summary of Operations and Significant Accounting Policies - Allowance for Doubtful Accounts Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Note 1 - Summary Of Operations And Significant Accounting Policies - Allowance For Doubtful Accounts Activity Details | ||
Balance at beginning of year | $ 340 | $ 288 |
Amounts charged to expense | 31 | 52 |
Net write-offs (recoveries) | (53) | 0 |
Foreign currency translation | (18) | 0 |
Balance at ending of year | $ 300 | $ 340 |
Note 1 - Summary of Operation31
Note 1 - Summary of Operations and Significant Accounting Policies (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Buildings [Member] | Minimum [Member] | |
Estimated Useful Life | 10 years |
Buildings [Member] | Maximum [Member] | |
Estimated Useful Life | 20 years |
Machinery And Equipment [Member] | Minimum [Member] | |
Estimated Useful Life | 5 years |
Machinery And Equipment [Member] | Maximum [Member] | |
Estimated Useful Life | 10 years |
Furniture And Fixtures [Member] | Minimum [Member] | |
Estimated Useful Life | 3 years |
Furniture And Fixtures [Member] | Maximum [Member] | |
Estimated Useful Life | 10 years |
Computer Hardware And Software [Member] | Minimum [Member] | |
Estimated Useful Life | 3 years |
Computer Hardware And Software [Member] | Maximum [Member] | |
Estimated Useful Life | 5 years |
Note 1 - Summary of Operation32
Note 1 - Summary of Operations and Significant Accounting Policies (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Note 1 - Summary Of Operations And Significant Accounting Policies Details Narrative | ||
Impairments of long-lived assets | $ 0 | $ 0 |
Impairments of indefinite lived intangible assets | 150 | 0 |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 166 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 121 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 85 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 62 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 49 | |
Foreign Currency Transaction Gain (Loss), Realized | 48 | 235 |
Advertising Expense | 59 | 43 |
Total research and development spending | 6,112 | 5,648 |
Customer sponsored R&D included in cost of goods sold | 509 | 315 |
Revenue recognized relating to customer sponsored R&D | 509 | 317 |
Write-off of capitalized costs - NYSERDA project | $ 0 | $ 161 |
Significant customer disclosure - revenue from large defense contractor | 18.00% | 24.00% |
Significant customers - trade accounts receivable - largest | 0.00% | 16.00% |
Employee stock options excluded from calculation of diluted earnings per share | 945,687 | 2,195,222 |
Stock options included in calculation of diluted earnings per share | 1,312,282 | 0 |
Number of shares added to earnings per share calculation by stock option | 260,318 | 0 |
Restricted stock units included in calculation of diluted earnings per share | 32,800 | 0 |
Number of shares added to earnings per share calculation by restricted stock units | 15,385 | 0 |
Note 2 - Dispositions, Reloca33
Note 2 - Dispositions, Relocations and Exit Activities - New Lease (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Note 2 - Dispositions Relocations And Exit Activities - New Lease Details | ||
Government reimbursement received - China factory move | $ 815 | |
Government reimbursement recognized - China factory move | $ 219 | 596 |
Expenses recognized - China factory move | $ 221 | $ 841 |
Note 3 - Acquisitions (Details)
Note 3 - Acquisitions (Details) $ in Thousands | Jan. 13, 2016USD ($) |
Note 2 - Dispositions Relocations And Exit Activities - New Lease Details | |
Aggregate purchase price paid for Acquisition - USD | $ 11,200 |
Net working capital adjustment - USD | $ 200 |
Note 4 - Share Repurchase Pro35
Note 4 - Share Repurchase Program (Details) - USD ($) $ in Thousands | 12 Months Ended | 25 Months Ended | ||
Dec. 31, 2015 | May. 01, 2015 | Dec. 31, 2014 | Jun. 02, 2016 | |
Stockholders' Equity Note [Abstract] | ||||
Stock repurchase plan - shares authorized to be repurchased | 1,800,000 | 3,400,000 | ||
Total shares repurchased | 2,258,929 | 227,974 | ||
Cost of shares repurchased | $ 9,388 | $ 762 | ||
Shares repurchased under share repurchase plan | 2,225,437 | 216,754 | ||
Shares repurchased under share repurchase plan - value | $ 9,228 | $ 722 |
Note 5 - Supplemental Balance36
Note 5 - Supplemental Balance Sheet Information - Components of Inventory (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Note 5 - Supplemental Balance Sheet Information - Components Of Inventory Details | ||
Raw materials | $ 11,602 | $ 15,100 |
Work in process | 1,560 | 1,489 |
Finished products | 10,652 | 9,497 |
Total | $ 23,814 | $ 26,086 |
Note 5 - Supplemental Balance37
Note 5 - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Note 5 - Supplemental Balance Sheet Information | ||
Land | $ 123 | $ 123 |
Buildings and leasehold improvements | 7,490 | 7,437 |
Machinery and equipment | 49,609 | 48,054 |
Furniture and fixtures | 1,974 | 1,811 |
Computer hardware and software | 4,585 | 4,452 |
Construction in progress | 745 | 1,351 |
Total | 64,526 | 63,228 |
Less-Accumulated depreciation | (55,488) | (53,416) |
Total | $ 9,038 | $ 9,812 |
Note 5 - Supplemental Balance38
Note 5 - Supplemental Balance Sheet Information - Amortization of Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Amortization expense | $ 235 | $ 305 |
Research and Development Expense | ||
Amortization expense | 130 | 176 |
SellingGeneralAndAdministrativeExpenses | ||
Amortization expense | $ 105 | $ 129 |
Note 5 - Supplemental Balance39
Note 5 - Supplemental Balance Sheet Information - Goodwill Activity by Segment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill - beginning | $ 16,407 | $ 16,419 |
Effect of foreign currency translation | (124) | (12) |
Goodwill - ending | 16,283 | 16,407 |
Battery [Member] | ||
Goodwill - beginning | 4,914 | 4,926 |
Effect of foreign currency translation | (124) | (142) |
Goodwill - ending | 4,790 | 4,914 |
Communications Systems | ||
Goodwill - beginning | 11,493 | 11,493 |
Effect of foreign currency translation | 0 | 0 |
Goodwill - ending | $ 11,493 | $ 11,493 |
Note 5 - Supplemental Balance40
Note 5 - Supplemental Balance Sheet Information - Composition of Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Cost | $ 12,234 | $ 12,496 |
Accumulated Amortization | 8,288 | 8,158 |
Net | 3,946 | 4,338 |
Trademarks | ||
Cost | 3,411 | 3,567 |
Accumulated Amortization | 0 | 0 |
Net | 3,411 | 3,567 |
Patents and Technology | ||
Cost | 4,482 | 4,509 |
Accumulated Amortization | 4,217 | 4,114 |
Net | 265 | 395 |
Customer Relationships | ||
Cost | 3,971 | 4,029 |
Accumulated Amortization | 3,716 | 3,679 |
Net | 255 | 350 |
Distributor Relationships | ||
Cost | 370 | 391 |
Accumulated Amortization | 355 | 365 |
Net | $ 15 | $ 26 |
Note 5 - Supplemental Balance41
Note 5 - Supplemental Balance Sheet Information (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Note 5 - Supplemental Balance Sheet Information Details Narrative | ||
Depreciation expense | $ 2,401 | $ 2,757 |
Note 6 - Fair Value of Assets42
Note 6 - Fair Value of Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Goodwill | $ 16,283 | $ 16,407 | $ 16,419 |
Fair Value, Inputs, Level 1 [Member] | Battery And Energy Products | |||
Goodwill | 0 | ||
Trademark | 0 | ||
Fair Value, Inputs, Level 1 [Member] | Communications Systems | |||
Goodwill | 0 | ||
Trademark | 0 | ||
Fair Value, Inputs, Level 2 [Member] | Battery And Energy Products | |||
Goodwill | 0 | ||
Trademark | 0 | ||
Fair Value, Inputs, Level 2 [Member] | Communications Systems | |||
Goodwill | 0 | ||
Trademark | 0 | ||
Fair Value, Inputs, Level 3 [Member] | Battery And Energy Products | |||
Goodwill | 4,790 | ||
Trademark | 711 | ||
Fair Value, Inputs, Level 3 [Member] | Communications Systems | |||
Goodwill | 11,493 | ||
Trademark | $ 2,700 |
Note 7 - Operating Leases - Fut
Note 7 - Operating Leases - Future Minimum Lease Payments (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Note 7 - Operating Leases - Future Minimum Lease Payments Details | |
2,016 | $ 571 |
2,017 | 589 |
2,018 | 544 |
2,019 | 415 |
2,020 | $ 100 |
Note 7 - Operating Leases - Ren
Note 7 - Operating Leases - Rent Expense (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Note 7 - Operating Leases - Rent Expense Details Narrative | ||
Rent expense | $ 672 | $ 775 |
Note 8 - Debt - Interest Rate M
Note 8 - Debt - Interest Rate Margins (Details) | Dec. 31, 2015 |
Greater than $8 million | Alternate Base Rate Loans | |
Interest Rate Margin on Outstanding Borrowings | 1.00% |
Greater than $8 million | LIBOR Rate Loans | |
Interest Rate Margin on Outstanding Borrowings | 2.00% |
$5-$8million | Alternate Base Rate Loans | |
Interest Rate Margin on Outstanding Borrowings | 1.25% |
$5-$8million | LIBOR Rate Loans | |
Interest Rate Margin on Outstanding Borrowings | 2.25% |
Less than $5 million | Alternate Base Rate Loans | |
Interest Rate Margin on Outstanding Borrowings | 1.50% |
Less than $5 million | LIBOR Rate Loans | |
Interest Rate Margin on Outstanding Borrowings | 2.50% |
Note 8 - Debt (Details Narrativ
Note 8 - Debt (Details Narrative) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
May. 24, 2017 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Note 8 - Debt Details Narrative | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 20,000 | |||
Letter of credit facility | $ 1,000 | |||
Potential Credit Facility Increase (in Dollars) | $ 35,000 | |||
Line Of Credit, Maximum Borrowing Capacity, Percentage Of Eligible Accounts Receivable | 85.00% | |||
Line Of Credit, Maximum Borrowing Capacity, Percentage Of Eligible Accounts Line Of Credit, Maximum Borrowing Capacity, Percentage Of Book Value Of Eligible Inventory | 65.00% | |||
Line Of Credit, Maximum Borrowing Capacity, Percentage Of Appraised Net Orderly Liquidation Value Of Eligible Inventory | 85.00% | |||
Line Of Credit, Minimum Additional Borrowing Capacity Allowed In addition to Accounts Receivable | $ 7,500 | |||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.375% | |||
Line of Credit Facility, Amount Outstanding (in Dollars) | $ 0 | |||
Line of Credit Facility, Interest Rate at Period End | 2.43% | |||
Line of Credit Facility, Remaining Borrowing Capacity (in Dollars) | $ 8,927 | |||
Cash and Cash Equivalents, at Carrying Value (in Dollars) | $ 14,393 | $ 17,711 | $ 16,066 | |
Minimum fixed charge coverage ratio | 115.00% |
Note 9 - Commitments and Cont47
Note 9 - Commitments and Contingencies - Warranties (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Note 9 - Commitments And Contingencies - Warranties Details | ||
Balance, January 1 | $ 376 | $ 513 |
Warranties issued | (90) | 122 |
Settlements made | (94) | (259) |
Balance, December 31 | $ 192 | $ 376 |
Note 10 - Shareholders' Equit48
Note 10 - Shareholders' Equity - Stock Option Assumptions (Details) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Note 10 - Shareholders Equity - Stock Option Assumptions Details | ||
Risk-free interest rate | 0.72% | 1.10% |
Volatility factor | 48.54% | 50.70% |
Dividends | 0.00% | 0.00% |
Weighted average expected life (years) | 4 years 54 days | 4 years 54 days |
Forfeiture rate | 13.80% | 13.80% |
Note 10 - Shareholders' Equit49
Note 10 - Shareholders' Equity - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | Jan. 03, 2011 | Mar. 07, 2008 | Dec. 31, 2015 | Dec. 31, 2014 |
Note 10 - Shareholders Equity - Stock Option Activity Details | ||||
Shares under option - beginning | 2,056,122 | 2,131,622 | ||
Options granted | 411,250 | 252,500 | ||
Options exercised | (137,937) | (3,067) | ||
Options forfeited or expired | (71,466) | (324,933) | ||
Shares under option - ending | 2,257,969 | 2,056,122 | ||
Shares under option - exercisable - ending | 1,255,736 | 1,296,619 | ||
Shares under option vested and expected to vest - ending | 2,093,294 | 1,957,633 | ||
Weighted average exercise price per share of options outstanding - beginning | $ 6.66 | $ 6.99 | ||
Weighted average exercise price per share of options granted | 50,000 | 50,000 | 4.68 | 3.94 |
Weighted average exercise price per share of options exercised | $ 3.9 | $ 3.67 | ||
Weighted average exercise price per share of options forfeited or expired | 11.86 | 6.77 | ||
Weighted average exercise price per share of options outstanding - ending | 6.30 | 6.66 | ||
Weighted average exercise price per share of options exercisable - ending | 5.22 | 5.63 | ||
Weighted average exercise price per share of options vested and expected to vest - ending | $ 6.45 | $ 5.33 | ||
Weighted average remaining contractual term of options outstanding - ending | 3 years 208 days | 3 years 292 days | ||
Weighted average remaining contractual term of options exercisable - ending | 2 years 161 days | 3 years 256 days | ||
Weighted average remaining contractual term of options vested and expected to vest - ending | 3 years 142 days | 3 years 7 days | ||
Shares under option - ending - aggregate intrinsic value | $ 3,094 | $ 0 | ||
Shares exercisable - ending - aggregate intrinsic value | 1,786 | 0 | ||
Shares vested and expected to vest - aggregate intrinsic value | $ 2,731 | $ 0 |
Note 10 - Shareholders' Equit50
Note 10 - Shareholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | Jan. 03, 2011 | Mar. 07, 2008 | Jan. 29, 2013 | Dec. 30, 2011 | Dec. 30, 2010 | Dec. 31, 2015 | Dec. 31, 2014 | Jan. 29, 2014 | Jun. 02, 2014 | Jun. 30, 2004 |
Note 7 - Shareholders' Equity (Details) [Line Items] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 1,750,000 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized for Grants other than Options | 800,000 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 50,000 | 50,000 | 4.68 | 3.94 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number (2004 LTIP) | 1,447,219 | |||||||||
Share Price (in Dollars per share) | $ 6.58 | $ 12.74 | ||||||||
Share Based Payment Award, Options, Annual Incremental Vesting | 12,500 | |||||||||
Share Based Payment Award, Options, Term | 5 years | |||||||||
Share-based Compensation (in Dollars) | $ 571 | $ 1,003 | ||||||||
Share-based compensation relating to options | 614 | |||||||||
Share-based compensation relating to restricted stock units - CEO | 150 | |||||||||
Share-based compensation relating to restricted stock units - others | $ 29 | |||||||||
Grant date fair value of restricted stock units awarded | $ 3.24 | |||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized (in Dollars) | $ 440 | $ 381 | ||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 256 days | 1 year 146 days | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value (in Dollars per share) | $ 2.32 | $ 1.6 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value (in Dollars) | $ 364 | $ 3 | ||||||||
Proceeds from Stock Options Exercised (in Dollars) | 538 | 11 | ||||||||
Excess tax benefits from option exercises | 287 | 0 | ||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized (in Dollars) | $ 49 | $ 130 | ||||||||
Shares of common stock reserved for issuance under all plans | 3,596,719 | |||||||||
Long Term Incentive Plan [Member] | ||||||||||
Note 7 - Shareholders' Equity (Details) [Line Items] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 750,000 | |||||||||
Contingent Restricted Stock Units [Member] | President And Chief Executive Officer [Member] | ||||||||||
Note 7 - Shareholders' Equity (Details) [Line Items] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 120,000 | |||||||||
Option Grant 2 [Member] | ||||||||||
Note 7 - Shareholders' Equity (Details) [Line Items] | ||||||||||
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 | 250,000 | |||||||||
Share Price (in Dollars per share) | $ 6.42 | $ 5 | ||||||||
Share Based Payment Award, Options, Annual Incremental Vesting | 62,500 | 30,000 | ||||||||
Number of days in period minimum share price requirement | 15 days | |||||||||
Number Of Days In Period, Minimum Share Price Requirement, Term | 30 days | |||||||||
Option Grant 4 [Member] | ||||||||||
Note 7 - Shareholders' Equity (Details) [Line Items] | ||||||||||
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 | 200,000 | |||||||||
Share Price (in Dollars per share) | $ 5 | $ 15 | ||||||||
Share Based Payment Award, Options, Annual Incremental Vesting | 30,000 | 50,000 | ||||||||
Minimum Share Price Requirement (in Dollars per share) | $ 15 | |||||||||
Number of days in period minimum share price requirement | 15 days | 15 days | ||||||||
Number Of Days In Period, Minimum Share Price Requirement, Term | 30 days | 30 days | ||||||||
Option Grant 3 [Member] | ||||||||||
Note 7 - Shareholders' Equity (Details) [Line Items] | ||||||||||
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 | 200,000 | |||||||||
Share Price (in Dollars per share) | $ 4 | $ 10 | ||||||||
Share Based Payment Award, Options, Annual Incremental Vesting | 30,000 | 50,000 | ||||||||
Minimum Share Price Requirement (in Dollars per share) | $ 10 | |||||||||
Number of days in period minimum share price requirement | 15 days | 15 days | ||||||||
Number Of Days In Period, Minimum Share Price Requirement, Term | 30 days | 30 days | ||||||||
Option Grant 1 [Member] | ||||||||||
Note 7 - Shareholders' Equity (Details) [Line Items] | ||||||||||
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 | 50,000 | |||||||||
Share Price (in Dollars per share) | $ 4 | $ 6.42 | ||||||||
Share Based Payment Award, Options, Annual Incremental Vesting | 30,000 | 12,500 | ||||||||
Number of days in period minimum share price requirement | 15 days | |||||||||
Number Of Days In Period, Minimum Share Price Requirement, Term | 30 days |
Note 10 - Shareholders' Equit51
Note 10 - Shareholders' Equity - Options Range of Exercise Prices (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Number of options outstanding | 2,257,969 | 2,056,122 | 2,131,622 |
Weighted Average Remaining Contractual Life | 3 years 208 days | ||
Weighted average exercise price | $ 6.30 | $ 6.66 | $ 6.99 |
Number of options exercisable | 1,255,736 | 1,296,619 | |
Weighed average exercise price - exercisable | $ 5.22 | $ 5.63 | |
$3.22-$3.99 | |||
Number of options outstanding | 817,064 | ||
Weighted Average Remaining Contractual Life | 4 years 234 days | ||
Weighted average exercise price | $ 3.78 | ||
Number of options exercisable | 348,581 | ||
Weighed average exercise price - exercisable | $ 3.76 | ||
$4.00-$4.99 | |||
Number of options outstanding | 427,500 | ||
Weighted Average Remaining Contractual Life | 2 years 288 days | ||
Weighted average exercise price | $ 4.47 | ||
Number of options exercisable | 393,750 | ||
Weighed average exercise price - exercisable | $ 4.4 | ||
$5.00-$9.99 | |||
Number of options outstanding | 581,833 | ||
Weighted Average Remaining Contractual Life | 2 years 307 days | ||
Weighted average exercise price | $ 6.6 | ||
Number of options exercisable | 481,833 | ||
Weighed average exercise price - exercisable | $ 6.45 | ||
$10-$15 | |||
Number of options outstanding | 431,572 | ||
Weighted Average Remaining Contractual Life | 3 years 110 days | ||
Weighted average exercise price | $ 12.48 | ||
Number of options exercisable | 31,572 | ||
Weighed average exercise price - exercisable | $ 12.18 |
Note 11 - Income Taxes - Provis
Note 11 - Income Taxes - Provison (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Note 11 - Income Taxes - Provison Details | ||
Current federal tax provision | $ 4 | $ 0 |
Current state tax provision | 15 | 12 |
Current foreign tax provision | 111 | 65 |
Total current tax provision | 130 | 77 |
Deferred federal tax provision | 169 | 220 |
Deferred state tax provision | 0 | 0 |
Deferred foreign tax provision (benefit) | 11 | (29) |
Total deferred tax provision (benefit) | 180 | 191 |
Total income tax provision | $ 310 | $ 268 |
Note 11 - Income Taxes - Deferr
Note 11 - Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax liabilities: | ||
Property, Plant and Equipment | $ 0 | $ 0 |
Intangible Assets | 4,631 | 4,462 |
Total deferred tax liabilities | 4,631 | 4,462 |
Deferred tax assets: | ||
Property, Plant and Equipment | 288 | 88 |
Net operating loss carryforwards | 27,283 | 20,164 |
Tax credit carryforwards | 1,596 | 1,455 |
Intangible assets | 3,391 | 3,841 |
Accrued expenses, reserves and other | 2,127 | 2,509 |
Total deferred tax assets | 34,685 | 28,057 |
Valuation allowance | (34,593) | (27,951) |
Net deferred tax assets | 92 | 106 |
Net deferred tax liabilities | $ 4,539 | $ 4,356 |
Note 11 - Income Taxes - Net de
Note 11 - Income Taxes - Net deferred tax liabilities comprised of the following balance sheet accounts (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Note 11 - Income Taxes - Net Deferred Tax Liabilities Comprised Of Following Balance Sheet Accounts Details | ||
Current deferred tax assets | $ 92 | $ 106 |
Current deferred tax liabilities | 0 | 0 |
Non-current deferred tax liabilities | (4,631) | (4,462) |
Net deferred tax liabilities | $ (4,539) | $ (4,356) |
Note 11 - Income Taxes - United
Note 11 - Income Taxes - United States and Foreign income loss from continuing operations before income taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Note 11 - Income Taxes - United States And Foreign Income Loss From Continuing Operations Before Income Taxes Details | ||
United States | $ 2,582 | $ (1,808) |
Foreign | 568 | 6 |
Income (loss) from continuing operations before income taxes | $ 3,150 | $ (1,802) |
Note 11 - Income Taxes - Effeci
Note 11 - Income Taxes - Effecitve Rate Reconciliation (Details) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Note 11 - Income Taxes - Effecitve Rate Reconciliation Details | ||
Statutory income tax rate | 34.00% | 34.00% |
(Increase) decrease in tax provision resulting from: | ||
Equity compensation | 2.20% | (12.90%) |
Income tax credits | (4.50%) | 4.20% |
Foreign tax rates | (2.20%) | (1.90%) |
Release of unrecognized tax benefits | (231.60%) | 0.00% |
Valuation allowance | 210.90% | (36.60%) |
Other | 1.00% | (1.70%) |
Effective income tax rates | 9.80% | (14.90%) |
Note 11 - Income Taxes - Unreco
Note 11 - Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Note 11 - Income Taxes - Unrecognized Tax Benefits Details | ||
Balance - beginning of year | $ 7,296 | $ 7,296 |
Settlements of examinations | (7,296) | 0 |
Balance - end of year | $ 0 | $ 7,296 |
Note 11 - Income Taxes (Details
Note 11 - Income Taxes (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Note 11 - Income Taxes Details Narrative | ||
Increase in valuation allowance for deferred tax assets | $ 6,642 | $ 659 |
Increase in valuation allowance due to settlement of uncertain tax position | 7,296 | |
Decrease in valuation allowance excluding effect of settlement of uncertain tax position | (654) | |
Net operating loss carryforward | 86,800 | 65,900 |
Net operating loss carryforward - domestic | 74,400 | 53,500 |
Net operating loss carryforward - foreign | 12,400 | 12,400 |
Tax credit carryforwards | 1,600 | 1,400 |
Net operating loss carryforward for which a benefit will be recorded in capital when realized | 3,000 | 2,900 |
Impairment of trademark | 150 | $ 0 |
Tax benefit associated with impairment of trademark | (51) | |
Increase in net operating loss carryforward due to settlement of uncertain tax position | $ 21,400 |
Note 12 - 401k Retirement Benef
Note 12 - 401k Retirement Benefit Plan (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Note 12 - 401k Retirement Benefit Plan Details Narrative | ||
Defined Contribution Plan, Employer Matching Contribution, As A Percentage Of Employee's Contribution | 50.00% | 50.00% |
Defined Contribution Plan, Maximum Employee Contribution Percentage Subject To Employer Matching Contribution | 4.00% | 4.00% |
Percentage of employees' gross pay for which the employer contributes a matching contribution to a defined contribution plan. | 2.00% | 2.00% |
Employer discretionary contribution | $ 201 | $ 164 |
Note 13 - Business Segment In60
Note 13 - Business Segment Information - Segment Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenue | $ 76,427 | $ 66,494 | |
Segment contribution | 3,330 | (1,443) | |
Interest expense, net | (205) | ||
Miscellaneous | (65) | 154 | |
Income tax provision | (310) | (268) | |
Income (loss) from discontinued operations | 0 | (61) | |
Noncontrolling interest | (29) | (15) | |
Net income (loss) attributable to Ultralife | 2,869 | (2,116) | |
Total assets | 81,522 | 87,642 | |
Goodwill | 16,283 | 16,407 | $ 16,419 |
Stock-based compensation | 571 | 1,003 | |
Corporate | |||
Revenue | 0 | 0 | |
Segment contribution | (19,986) | (20,793) | |
Interest expense, net | (245) | (205) | |
Miscellaneous | 65 | 154 | |
Income tax provision | 310 | 268 | |
Noncontrolling interest | 29 | 15 | |
Total assets | 17,378 | 20,171 | |
Capital expenditures | 562 | 206 | |
Depreciation and amortization | 984 | 955 | |
Stock-based compensation | 522 | 971 | |
DiscontinuedOperations | |||
Revenue | 0 | 0 | |
Segment contribution | 0 | 0 | |
Income (loss) from discontinued operations | 0 | (61) | |
Battery [Member] | |||
Revenue | 65,272 | 56,772 | |
Segment contribution | 18,698 | 15,516 | |
Total assets | 35,295 | 38,415 | |
Capital expenditures | 355 | 1,400 | |
Goodwill | 4,790 | 4,914 | |
Depreciation and amortization | 1,625 | 2,089 | |
Stock-based compensation | 46 | 28 | |
Communications Systems | |||
Revenue | 11,155 | 9,722 | |
Segment contribution | 4,618 | 3,834 | |
Total assets | 28,849 | 29,056 | |
Capital expenditures | 973 | 1,066 | |
Goodwill | 11,493 | 11,493 | |
Depreciation and amortization | 98 | 89 | |
Stock-based compensation | $ 3 | $ 4 |
Note 13 - Business Segment In61
Note 13 - Business Segment Information (Details narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Foreign | ||
Long-lived assets held outside the U.S. | $ 4,748 | $ 5,153 |
Battery & Energy Products Revenue | 28,200 | 26,100 |
Communications Systems Revenue | 1,500 | 1,000 |
United States | ||
Battery & Energy Products Revenue | 37,100 | 30,700 |
Communications Systems Revenue | $ 9,600 | $ 8,700 |
Note 14 - Fire at Manufacturi62
Note 14 - Fire at Manufacturing Facility (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |
Apr. 30, 2013 | Jun. 30, 2011 | Dec. 31, 2015 | |
Extraordinary and Unusual Items [Abstract] | |||
Business Interruption Loss, Gross | $ 1,589 | ||
Proceeds from Insurance Settlement, Operating Activities | $ 1,286 | ||
Gain on Business Interruption Insurance Recovery | $ 0 | ||
Insurance Settlements Receivable | $ 177 | ||
Business Interruption, Insurance Deductible | $ 125 |