Ultralife (ULBI) 10-Q 27 Oct 16 2016 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Sep. 25, 2016	Oct. 27, 2016
Document Information [Line Items]
Entity Registrant Name	Ultralife Corp
Entity Central Index Key	875,657
Trading Symbol	ulbi
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Entity Common Stock, Shares Outstanding (in shares)		15,235,246
Document Type	10-Q
Document Period End Date	Sep. 25, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3
Amendment Flag	false

Consolidated Balance Sheets (Cu

Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands	Sep. 25, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 6,650	$ 14,393
Restricted cash	82	140
Trade accounts receivable, net of allowance for doubtful accounts of $285 and $300, respectively	12,888	11,430
Inventories, net	24,877	23,814
Prepaid expenses and other current assets	2,600	1,900
Due from insurance company		177
Deferred income taxes	92	92
Total current assets	47,189	51,946
Property, equipment and improvements, net	8,551	9,038
Goodwill	20,263	16,283
Intangible assets, net	7,481	3,946
Security deposits and other non-current assets	73	309
Total assets	83,557	81,522
Current liabilities:
Accounts payable	6,323	6,494
Accrued compensation and related benefits	1,264	2,377
Accrued expenses and other current liabilities	3,690	1,749
Income taxes payable	199	227
Total current liabilities	11,476	10,847
Deferred income taxes	5,500	4,631
Other non-current liabilities	28	28
Total liabilities	17,004	15,506
Commitments and contingencies (Note 11)
Shareholders' equity:
Preferred stock – par value $.10 per share; authorized 1,000,000 shares; none issued
Common stock – par value $.10 per share; authorized 40,000,000 shares; issued – 19,245,357 shares at September 25, 2016 and 19,181,815 shares at December 31, 2015; outstanding – 15,231,662 shares at September 25,2016 and 15,322,155 at December 31, 2015	1,925	1,918
Capital in excess of par value	177,737	177,007
Accumulated deficit	(92,287)	(94,051)
Accumulated other comprehensive loss	(2,221)	(907)
Treasury stock - at cost; 4,013,695 shares at September 25, 2016 and 3,859,660 shares at December 31, 2015	(18,433)	(17,808)
Total Ultralife Corporation equity	66,721	66,159
Non-controlling interest	(168)	(143)
Total shareholders’ equity	66,553	66,016
Total liabilities and shareholders' equity	$ 83,557	$ 81,522

Consolidated Balance Sheets (C3

Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ in Thousands	Sep. 25, 2016	Dec. 31, 2015
Trade accounts receivable, allowance for doubtful accounts	$ 285	$ 300
Preferred stock, par value (in dollars per share)	$ 0.10	$ 0.10
Preferred stock, shares authorized (in shares)	1,000,000	1,000,000
Preferred stock, shares issued (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.10	$ 0.10
Common stock, shares authorized (in shares)	40,000,000	40,000,000
Common stock, shares issued (in shares)	19,245,357	19,181,815
Common stock, shares outstanding (in shares)	15,231,662	15,322,155
Treasury stock, shares (in shares)	4,013,695	3,859,660

Consolidated Statements of Inco

Consolidated Statements of Income and Comprehensive Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 25, 2016	Sep. 27, 2015	Sep. 25, 2016	Sep. 27, 2015
Revenues	$ 19,631	$ 19,044	$ 60,835	$ 57,176
Cost of products sold	13,634	13,144	42,533	39,410
Gross profit	5,997	5,900	18,302	17,766
Operating expenses:
Research and development	1,357	1,224	4,438	3,917
Selling, general and administrative	3,502	3,503	11,745	11,037
Total operating expenses	4,859	4,727	16,183	14,954
Operating income	1,138	1,173	2,119	2,812
Other (expense) income:
Interest and financing expense	(50)	(65)	(213)	(195)
Miscellaneous	20	70	46	39
Income before income tax provision	1,108	1,178	1,952	2,656
Income tax provision	92	130	213	312
Net income	1,016	1,048	1,739	2,344
Net loss (income) attributable to non-controlling interest	3	(1)	25	23
Net income attributable to Ultralife Corporation	1,019	1,047	1,764	2,367
Other comprehensive loss:
Foreign currency translation adjustment	(613)	(349)	(1,314)	(283)
Comprehensive income attributable to Ultralife Corporation	$ 406	$ 698	$ 450	$ 2,084
Net income per share attributable to Ultralife common shareholders – basic (in dollars per share)	$ 0.07	$ 0.07	$ 0.12	$ 0.14
Net income per share attributable to Ultralife common shareholders – diluted (in dollars per share)	$ 0.07	$ 0.07	$ 0.11	$ 0.14
Weighted average shares outstanding – basic (in shares)	15,207	15,633	15,262	16,503
Potential common shares (in shares)	91	107	184	47
Weighted average shares outstanding - diluted (in shares)	15,298	15,740	15,446	16,550

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 25, 2016	Sep. 27, 2015
OPERATING ACTIVITIES:
Net income	$ 1,739,000	$ 2,344,000
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	1,698,000	1,795,000
Amortization of intangible assets	403,000	180,000
Amortization of financing fees	55,000	53,000
Stock-based compensation	555,000	439,000
Loss on long-lived asset disposals		36,000
Deferred income tax expense	165,000	165,000
Changes in operating assets and liabilities:
Accounts receivable	(283,000)	(29,000)
Inventories	755,000	2,621,000
Prepaid expenses and other assets	176,000	(631,000)
Accounts payable and other liabilities	(1,695,000)	455,000
Net cash provided by operating activities	3,568,000	7,428,000
INVESTING ACTIVITIES:
Acquisition of Accutronics, net of cash acquired	(9,857,000)
Cash paid for property, equipment and improvements	(990,000)	(1,310,000)
Change in restricted cash	60,000	12,000
Net cash used in investing activities	(10,787,000)	(1,298,000)
FINANCING ACTIVITIES:
Cash paid to repurchase treasury stock	(607,000)	(9,266,000)
Proceeds from debt borrowings	3,030,000
Payments of debt borrowings	(3,030,000)
Return of security deposit		49,000
Proceeds from stock option exercise	181,000	28,000
Net cash used in financing activities	(426,000)	(9,189,000)
Effect of exchange rate changes on cash and cash equivalents	(98,000)	(67,000)
DECREASE IN CASH AND CASH EQUIVALENTS	(7,743,000)	(3,126,000)
Cash and cash equivalents, beginning of period	14,393,000	17,711,000
Cash and cash equivalents, end of period	$ 6,650,000	$ 14,585,000

Note 1 - Basis of Presentation

Note 1 - Basis of Presentation	9 Months Ended
	Sep. 25, 2016
Notes to Financial Statements
Business Description and Basis of Presentation [Text Block]	1. BASIS OF PRESENTATION The accompanying unaudited Consolidated Financial Statements of Ultralife Corporation (the “Company”) and subsidiaries have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information and with the instructions to Rule 8-03 of Regulation S-X. Accordingly, they do not include all of the information and footnotes for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals and adjustments) considered necessary for a fair presentation of the Consolidated Financial Statements have been included. Results for interim periods should not be considered indicative of results to be expected for a full year. Reference should be made to the Consolidated Financial Statements and related notes thereto contained in our Form 10-K for the year ended December 31, 2015. The December 31, 2015 consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by GAAP. Our monthly closing schedule is a 4/4/5 weekly-based cycle for each fiscal quarter, as opposed to a calendar month-based cycle for each fiscal quarter. While the actual dates for the quarter-ends will change slightly each year, we believe that there are not any material differences when making quarterly comparisons.

Note 2 - Acquisition

Note 2 - Acquisition	9 Months Ended
	Sep. 25, 2016
Notes to Financial Statements
Mergers, Acquisitions and Dispositions Disclosures [Text Block]	2. ACQUISITION On January 13, 2016, Ultralife UK Limited (the “Merger Subsidiary”), a U.K. corporation and a wholly-owned subsidiary of Ultralife Corporation (the “Company”), completed the acquisition of all of the outstanding ordinary shares 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 and is classified in the Battery & Energy Products segment. The acquisition of Accutronics advances our strategy of commercial revenue diversification and expands our geographic reach within European OEM’s. With industry experts predicting mid-to-high single digit growth in the global medical batteries market, this strategic investment positions Ultralife well for further penetration of and growing revenue streams from an attractive commercial market. The acquisition was completed pursuant to the terms of the Share Purchase Agreement dated January 13, 2016 by and among the Merger Subsidiary and the Sellers. The Merger Subsidiary paid at the time of closing an aggregate purchase price of £7,575 ($10,976) in cash, and in exchange the Merger Subsidiary received all of the outstanding shares of Accutronics ordinary stock. Monies to fund the purchase price were advanced to the Merger Subsidiary from the Company’s general corporate funds. The purchase price was subject to adjustment based on the difference between actual and estimated amounts of working capital of Accutronics as well as the amount of net cash of Accutronics. The adjustment resulted in a final payment to the Sellers in the amount of £133 on February 24, 2016, bringing the total aggregate purchase price to £7,708 ($11,161). The purchase price allocation was determined in accordance with the accounting treatment of a business combination in Financial Accounting Standards Board (“FASB”) ASC Topic 805, Business Combinations The allocation of purchase price to the assets acquired and liabilities assumed at the date of the acquisition is presented in the table below (in thousands). Management is responsible for determining the fair value of the tangible and intangible assets acquired and liabilities assumed as of the date of acquisition. Management considered a number of factors, including reference to an analysis performed under FASB ASC Topic 805 solely for the purpose of allocating the purchase price to the assets acquired and liabilities assumed. The Company’s estimates are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable. These valuations require the use of management’s assumptions, which would not reflect unanticipated events and circumstances that occur. The originally reported purchase price allocation has been updated based on information obtained about facts and circumstances that existed as of the acquisition date. As a result, adjustments were made which reduced identifiable intangible assets and property, plant and equipment by $402 and $99, respectively, and increased prepaids and other current assets, inventory, deferred income taxes on intangible assets and goodwill by $291, $75, $72 and $63, respectively. Cash $ 1,304 Accounts Receivable 1,344 Inventory 2,167 Prepaids and Other Current Assets 584 Property, Plant & Equipment 269 Identifiable Intangible Assets 4,374 Goodwill 4,446 Accounts Payable (1,009 ) Accrued Expenses (1,136 ) Income Taxes Payable (111 ) Non-Current Liabilities (209 ) Deferred Income Taxes (74 ) Deferred Income Taxes on Intangible Assets (788 ) Total Consideration $ 11,161 The goodwill included in the Company’s purchase price allocation presented above represents the value of Accutronics assembled and trained workforce, the incremental value that Accutronics engineering and technology will bring to the Company and the revenue growth expected to occur over time attributable to increased market penetration from future new products and customers. The goodwill acquired in connection with the acquisition is not deductible for income tax purposes. The identifiable intangible assets included in the Company’s purchase price allocation represent customer contracts and relationships of $2,820, intellectual property of $1,132 and tradename of $421 which are amortized straight-line over a period ranging from 10 to 15 years. During the nine-month period ended September 25, 2016, direct acquisition costs of $251 and increased cost of sales related to purchase accounting adjustments of $96 for inventory acquired were recorded in the Company’s Consolidated Statement of Income and Comprehensive Income. Accutronics contributed revenue of $7,551 and an operating loss of $61 during the nine-month period ended September 25, 2016, reflecting the purchase accounting adjustments and non-recurring costs directly related to the acquisition. Set forth below is the unaudited pro forma results of the Company and Accutronics for the nine-month period ended September 27, 2015 as if the acquisition occurred as of January 1, 2015 along with the reported results for the nine-month period ended September 25, 2016 which includes the consolidation of Accutronics (in thousands, except per share amounts). The unaudited pro forma results include purchase accounting adjustments to reflect the restatement of inventory to estimated fair value and the resulting increase in cost of sales for the sale of the inventory during this nine-month period, direct acquisition costs and the amortization of intangible assets resulting from the purchase price allocation. Nine Months Ended Sept. 27, 2015 Sept. 25, 2016 Revenue $ 67,193 $ 60,835 Operating Income $ 3,206 $ 2,119 Net Income $ 2,589 $ 1,764 Earnings Per Share: Basic $ .16 $ .12 Diluted $ .16 $ .11 The unaudited pro forma results do not reflect the realization of any expected cost savings or other synergies from the acquisition of Accutronics as a result of restructuring activities, other cost savings initiatives or sales synergies following the completion of the business combination. Accordingly, these unaudited pro forma results are presented for informational purposes only and not necessarily indicative of what the actual results of operations of the combined Company would have been if the acquisition had occurred at the beginning of the 2015 period presented, nor are they indicative of future results of operations.

Note 3 - Share Repurchase Progr

Note 3 - Share Repurchase Program	9 Months Ended
	Sep. 25, 2016
Notes to Financial Statements
Stockholders' Equity Note Disclosure [Text Block]	3. 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 and 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 was extended through June 2, 2016, and the maximum number of shares authorized to be repurchased under the program was increased to 3.4 million shares. Share repurchases under this program were made in accordance with SEC Rule 10b-18 using a variety of methods, which included open market purchases and block trades 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 10b5-1 Plans, the timing, manner, price and amount of any repurchases were determined at the Company’s discretion. The Share Repurchase Program expired on June 2, 2016 and did not obligate the Company to repurchase any specific number of shares. During the nine month period ended September 25, 2016, the Company repurchased 149,904 shares under this program for a total cost (excluding fees and commissions) of $603. During the nine month period ended September 27, 2015, the Company repurchased 2,225,437 shares under this program for a total cost (excluding fees and commissions) of $9,162. From the inception of the Share Repurchase Program on May 1, 2014 through its expiration on June 2, 2016, the Company repurchased 2,592,095 shares for an aggregate cost (excluding fees and commissions) of $10,480.

Note 4 - Inventories

Note 4 - Inventories	9 Months Ended
	Sep. 25, 2016
Notes to Financial Statements
Inventory Disclosure [Text Block]	4. INVENTORIES Inventories are stated at the lower of cost or market with cost determined under the first-in, first-out (FIFO) method. The composition of net inventories was: September 2 5 , December 31, 2016 2015 Raw Materials $ 13,297 $ 11,602 Work In Process 1,771 1,560 Finished Goods 9,809 10,652 Total $ 24,877 $ 23,814 The September 25, 2016 inventories include $1,868 for Accutronics, which was acquired in January 2016.

Note 5 - Property, Equipment an

Note 5 - Property, Equipment and Improvements	9 Months Ended
	Sep. 25, 2016
Notes to Financial Statements
Property, Plant and Equipment Disclosure [Text Block]	5. PROPERTY, EQUIPMENT AND IMPROVEMENTS Major classes of property, equipment and improvements consisted of the following: September 2 5 , December 31, 2016 2015 Land $ 123 $ 123 Buildings and Leasehold Improvements 7,785 7,490 Machinery and Equipment 50,044 49,609 Furniture and Fixtures 1,980 1,974 Computer Hardware and Software 5,021 4,585 Construction In Process 619 745 65,572 64,526 Less-Accumulated Depreciation (57,021 ) (55,488 ) Property, Equipment and Improvements, net $ 8,551 $ 9,038 Depreciation expense for property, equipment and improvements was as follows: Three-Month Periods E nded Nine-Month Periods E nded Sept. 2 5 , Sept. 27 , Sept. 2 5 , Sept. 27 , 2016 2015 2016 2015 Depreciation Expense $ 533 $ 617 $ 1,698 $ 1,795

Note 6 - Goodwill, Intangible A

Note 6 - Goodwill, Intangible Assets and Long Term Assets	9 Months Ended
	Sep. 25, 2016
Notes to Financial Statements
Goodwill and Intangible Assets Disclosure [Text Block]	6. GOODWILL, INTANGIBLE ASSETS AND LONG TERM ASSETS a. Goodwill The following table summarizes the goodwill activity by segment for the nine-month periods ended September 25, 2016 and September 27, 2015: Battery & Energy Communi- cations Products Systems Total Balance - December 31, 2014 $ 4,914 $ 11,493 $ 16,407 Effect of Foreign Currency Translation (80 ) - (80 ) Balance – September 27, 2015 4,834 11,493 16,327 Effect of Foreign Currency Translation (44 ) - (44 ) Balance - December 31, 2015 4,790 11,493 16,283 Acquisition of Accutronics 4,446 - 4,446 Effect of Foreign Currency Translation (466 ) - (466 ) Balance – September 25, 2016 $ 8,770 $ 11,493 $ 20,263 b. Intangible Assets The composition of intangible assets was: at September 25 , 2016 Accumulated Cost Amortization Net Trademarks $ 3,413 $ - $ 3,413 Patents and Technology 5,504 4,373 1,131 Customer Relationships 6,516 3,940 2,576 Distributor Relationships 377 365 12 Trade Name 377 28 349 Total Intangible Assets $ 16,187 $ 8,706 $ 7,481 at December 31, 2015 Accumulated Cost 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 Intangible Assets $ 12,234 $ 8,288 $ 3,946 Amortization expense for intangible assets was as follows: Three-Month Periods E nded Nine-Month Periods E nded Sept. 2 5 , Sept. 27 , Sept. 2 5 , Sept. 27 , 2016 2015 2016 2015 Amortization Included In: Research and Development $ 49 $ 32 $ 152 $ 97 Selling, General and Administrative 80 29 251 83 Total Amortization Expense $ 129 $ 61 $ 403 $ 180 The change in the cost value of total intangible assets from December 31, 2015 to September 25, 2016 is a result of the acquisition of Accutronics and the effect of foreign currency translations.

Note 7 - Revolving Credit Agree

Note 7 - Revolving Credit Agreement	9 Months Ended
	Sep. 25, 2016
Notes to Financial Statements
Debt and Capital Leases Disclosures [Text Block]	7. REVOLVING CREDIT AGREEMENT We have financing through a Revolving Credit, Guaranty and Security Agreement (the “Credit Agreement”) and related security agreements with PNC Bank, National Association (“PNC Bank”), which provides a $20,000 secured asset-based revolving credit facility that includes a $1,000 letter of credit sub-facility (the “Credit Facility”). The Credit Agreement provides that the Credit Facility may be increased with PNC Bank’s concurrence to an amount not to exceed $35,000 prior to the last six months of the term and expires on May 24, 2017. Our available borrowing limit under the Credit Facility is based on a borrowing base formula equal to a percentage of accounts receivable, inventory and eligible foreign in-transit inventory. Interest is payable quarterly and accrues on outstanding indebtedness under the Credit Agreement at either a LIBOR-based rate or an alternate base rate, as defined in the Credit Agreement. The applicable interest rate was 4.5% at September 25, 2016. We pay a quarterly fee on the Credit Facility’s unused availability at 0.375% per annum. As of September 25, 2016, we had approximately $10,660 of borrowing capacity under our $20,000 Credit Facility with PNC Bank, and we had no borrowings under the Credit Facility. At September 27, 2015, the Company had no borrowings or outstanding letters of credit under the Credit Facility.

Note 8 - Shareholders' Equity

Note 8 - Shareholders' Equity	9 Months Ended
	Sep. 25, 2016
Notes to Financial Statements
Shareholders' Equity and Share-based Payments [Text Block]	8. SHAREHOLDERS’ EQUITY We recorded non-cash stock compensation expense in each period as follows: Three-Month Periods E nded Nine-Month Periods E nded Sept. 2 5 , Sept. 27 , Sept. 2 5 , Sept. 2 7 , 2016 2015 2016 2015 Stock Options $ 197 $ 112 $ 525 $ 368 Restricted Stock Grants 8 23 30 71 Total $ 205 $ 135 $ 555 $ 439 These are more fully discussed as follows: a. Stock Options We have stock options outstanding from various stock-based employee compensation plans for which we record compensation cost relating to share-based payment transactions in our financial statements. As of September 25, 2016, there was $666 of total unrecognized compensation cost related to outstanding stock options, which is expected to be recognized over a weighted average period of 1.25 years. The following table summarizes stock option activity for the nine-month period ended September 25, 2016: Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value Outstanding at January 1, 2016 2,257,969 $ 6.30 Granted 346,000 4.71 Exercised (47,642 ) 3.81 Forfeited or Expired (64,651 ) 8.02 Outstanding at Sept. 25, 2016 2,491,676 6.08 3.46 $ 246 Vested and Expected to Vest at Sept. 25, 2016 2,347,190 6.17 3.26 $ 226 Exercisable at Sept. 25, 2016 1,392,204 $ 4.90 2.17 $ 168 The following assumptions were used to value stock options granted during the nine months ended September 25, 2016: Risk-Free Interest Rate 0.89 % Volatility Factor 48.08 % Dividends 0.00 % Weighted Average Expected Life (Years) 2.82 The weighted average grant date fair value of options granted during the nine months ended September 25, 2016 was $2.01. FASB’s guidance for share-based payments requires cash flows from excess tax benefits to be classified as a part of cash flows from financing activities. Excess tax benefits are realized tax benefits from tax deductions for exercised stock options in excess of the deferred tax asset attributable to stock compensation costs for such stock options. We did not record any excess tax benefits in the first nine months of 2016 or 2015. Cash received from stock option exercises under our stock-based compensation plans for the three-month periods ended September 25, 2016 and September 27, 2015 was $106 and $19, respectively. Cash received from stock option exercises for the nine-month periods ended September 25, 2016 and September 27, 2015 was $181 and $28, respectively. b. Restricted Stock Awards In September 2014, 49,200 shares of restricted stock were awarded to certain of our employees. These units vest over three years and we estimated their weighted average grant date fair value to be $3.24 per share. In September 2016, 15,900 shares of the awarded restricted stock vested and the Company repurchased 4,131 shares to satisfy the statutory tax withholding on shares vested for certain employees. There is $15 of unrecognized compensation cost related to these restricted shares at September 25, 2016.

Note 9 - Income Taxes

Note 9 - Income Taxes	9 Months Ended
	Sep. 25, 2016
Notes to Financial Statements
Income Tax Disclosure [Text Block]	9. INCOME TAXES We use the asset and liability method in accounting for income taxes. 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. For the three-month periods ended September 25, 2016 and September 27, 2015, we recorded $92 and $130, respectively, in income tax expense. For the nine-month periods ended September 25, 2016 and September 27, 2015, we recorded $213 and $312, respectively, in income tax expense. These are detailed as follows: Three-Month Periods Ended Nine-Month Periods Ended Sept. 25, Sept. 27, Sept. 25, Sept. 27, 2016 2015 2016 2015 Current Income Tax Provision: Foreign $ 12 $ 44 $ (1 ) $ 87 Federal 21 26 38 48 State 4 5 11 12 Deferred Income Tax Provision 55 55 165 165 Total $ 92 $ 130 $ 213 $ 312 The deferred income tax provision is primarily due to the recognition of deferred tax liabilities relating to goodwill and certain intangible assets that cannot be predicted to reverse for book purposes during our loss carryforward periods. The current income tax provision is primarily due to the income reported for our China operation and Accutronics (U.K.) and estimated U.S. federal alternative minimum taxes, while the remaining expense is primarily due to state taxes. Our effective consolidated tax rates for the three and nine-month periods ended September 25, 2016 and September 27, 2015 were: Three-Month Periods Ended Nine-Month Periods Ended Sept. 25, Sept. 27, Sept. 25, Sept. 27, 2016 2015 2016 2015 Income Before Income Taxes (a) $ 1,108 $ 1,178 $ 1,952 $ 2,656 Income Tax Provision (b) 92 130 213 312 Effective Income Tax Rate (b/a) 8.3 % 11.0 % 10.9 % 11.7 % The overall effective tax rate is the result of the combination of income and losses in each of our tax jurisdictions, which is particularly influenced by the fact that we have recorded a full reserve against our deferred tax assets pertaining to cumulative historical losses for our U.S. operations and certain foreign subsidiaries, as management does not believe, at this time, that it is more likely than not that we will realize the benefit of these losses. As of December 31, 2015, we have foreign and domestic net operating loss (“NOL”) and credit carryforwards totaling approximately $86,800 and $1,600, respectively, available to reduce future taxable income. Included in our NOL carryforwards are foreign loss carryforwards of approximately $12,400 that can be carried forward indefinitely. The domestic NOL carryforward of $74,400 expires from 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. 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”) and various state and local tax jurisdictions 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 foreign tax matters for the years 2009 through 2015 remain subject to examination by the respective foreign tax jurisdiction authorities.

Note 10 - Earnings Per Share

Note 10 - Earnings Per Share	9 Months Ended
	Sep. 25, 2016
Notes to Financial Statements
Earnings Per Share [Text Block]	10. EARNINGS PER SHARE Basic earnings per share (“EPS”) is computed by dividing earnings attributable to the Company’s common shareholders by the weighted-average shares outstanding during the period. Diluted EPS includes the dilutive effect of securities, if any, and is calculated using the treasury stock method. For the three-month period ended September 25, 2016, 758,593 stock options and 15,900 restricted stock units were included in the calculation of Diluted EPS as such securities are dilutive. Inclusion of these securities resulted in 91,041 additional shares in the calculation of fully diluted earnings per share. For the comparable three-month period ended September 27, 2015, 1,026,282 stock options and 34,200 restricted stock units were included in the calculation of Diluted EPS resulting in 107,000 additional shares in the calculation of fully diluted earnings per share. For the nine-month periods ended September 25, 2016 and September 27, 2015, 1,139,843 and 431,532 stock options and 15,900 and 34,200 restricted stock units, respectively, were included in the calculation of Diluted EPS as such securities are dilutive. Inclusion of these securities resulted in 184,564 and 47,000 additional shares, respectively, in the calculation of fully diluted earnings per share. There were 1,733,083 and 1,264,422 outstanding stock options for the three-month periods ended September 25, 2016 and September 27, 2015, respectively, that were not included in EPS as the effect would be anti-dilutive. There were 1,351,833 and 1,859,172 outstanding stock options for the nine-month periods ended September 25, 2016 and September 27, 2015, respectively, that were not included in EPS as the effect would be anti-dilutive.

Note 11 - Commitments, Continge

Note 11 - Commitments, Contingencies and Subsequent Event	9 Months Ended
	Sep. 25, 2016
Notes to Financial Statements
Commitments and Contingencies Disclosure [Text Block]	11. COMMITMENTS, CONTINGENCIES AND SUBSEQUENT EVENT a. Purchase Commitments As of September 25, 2016, we have made commitments to purchase approximately $493 of production machinery and equipment. b. 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 first nine months of 2016 and 2015 were as follows: Nine-Month P eriods E nded Sept. 2 5 , 2016 Sept. 27 , 2015 Accrued Warranty Obligations – Beginning $ 192 $ 376 Accruals for Warranties Issued 30 16 Settlements Made and Effect of Foreign Currency Translation (43 ) (34 ) Accrued Warranty Obligations – Ending $ 179 $ 358 c. Contingencies and Legal Matters We are subject to legal proceedings and claims that arise from time to time in the normal course of business. We believe that the final disposition of such matters, other than the matters described below, 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 $42,000 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 12 - Business Segment Info

Note 12 - Business Segment Information	9 Months Ended
	Sep. 25, 2016
Notes to Financial Statements
Segment Reporting Disclosure [Text Block]	12. 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 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, man-portable systems, integrated communication systems for fixed or vehicle applications 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. The components of segment performance were as follows: Three-Month Period Ended September 25, 2016: Battery & Energy Products Communi- cations Systems Corporate Total Revenues $ 14,943 $ 4,688 $ - $ 19,631 Segment Contribution 4,522 1,475 (4,859 ) 1,138 Interest, Financing and Miscellaneous Expense, Net (30 ) (30 ) Tax Provision (92 ) (92 ) Non-Controlling Interest 3 3 Net Income Attributable to Ultralife $ 1,019 Total Assets $ 42,394 $ 32,129 $ 9,034 $ 83,557 Three-Month Period Ended September 27, 2015: Battery & Energy Products Communi- cations Systems Corporate Total Revenues $ 16,390 $ 2,654 $ - $ 19,044 Segment Contribution 4,774 1,126 (4,727 ) 1,173 Interest, Financing and Miscellaneous Expense, Net 5 5 Tax Provision (130 ) (130 ) Non-Controlling Interest (1 ) (1 ) Net Income Attributable to Ultralife $ 1,047 Total Assets $ 35,828 $ 28,191 $ 17,333 $ 81,352 Nine-Month Period Ended September 25, 2016: Battery & Energy Products Communi- cations Systems Corporate Total Revenues $ 47,142 $ 13,693 $ - $ 60,835 Segment Contribution 14,404 3,898 (16,183 ) 2,119 Interest, Financing and Miscellaneous Expense, Net (167 ) (167 ) Tax Provision (213 ) (213 ) Non-Controlling Interest 25 25 Net Income Attributable to Ultralife $ 1,764 Nine -Month Period Ended September 27 , 2015: Battery & Energy Products Communi- cations Systems Corporate Total Revenues $ 48,638 $ 8,538 $ - $ 57,176 Segment Contribution 14,100 3,666 (14,954 ) 2,812 Interest, Financing and Miscellaneous Expense, Net (156 ) (156 ) Tax Provision (312 ) (312 ) Non-Controlling Interest 23 23 Net Income Attributable to Ultralife $ 2,367

Note 13 - Due From Insurance Co

Note 13 - Due From Insurance Company	9 Months Ended
	Sep. 25, 2016
Notes to Financial Statements
Business Insurance Recoveries [Text Block]	13. DUE FROM INSURANCE COMPANY In June 2011, we experienced a fire that damaged certain inventory and machinery and equipment at our facility in China. The total amount of the loss pertaining to assets and the related expenses was approximately $1,589. We have pursued a claim against our insurance policy, with the majority of our insurance claim related to the recovery of damaged inventory. We had received payments in June 2012 and April 2013 totaling approximately $1,286 as a partial payment on our insurance claim, which resulted in no gain or loss being recognized. Since the filing of the claim and through June 26, 2016, we reflected a receivable from the insurance company of $177, net of our deductible of approximately $126, representing additional proceeds expected to be received. On September 6, 2016, our claim was finalized with the insurance company resulting in a $55 loss included in our third quarter 2016 results.

Note 14 - Recent Accounting Pro

Note 14 - Recent Accounting Pronouncements and Developments	9 Months Ended
	Sep. 25, 2016
Notes to Financial Statements
New Accounting Pronouncements and Changes in Accounting Principles [Text Block]	14. RECENT ACCOUNTING PRONOUNCEMENTS AND DEVELOPMENTS In May 2014, the FASB issued Accounting Standards Update (ASU) 2014-09, “Revenue from Contracts with Customers (Topic 606)”. This ASU amends the existing accounting standards for revenue recognition and is based on the principle that revenue should be recognized to depict the transfer of goods or services to a customer at an amount that reflects the consideration a company expects to receive in exchange for those goods or services. The new revenue standards are effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. The Company is currently evaluating the potential impacts of this new guidance as well as the available transition methods. In March 2016, the FASB issued ASU 2016-09, “Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting”. ASU 2016-09 simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. ASU 2016-09 is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2016. The Company is currently evaluating the potential impacts of this new guidance.

Note 2 - Acquisition (Tables)

Note 2 - Acquisition (Tables)	9 Months Ended
	Sep. 25, 2016
Notes Tables
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]	Cash $ 1,304 Accounts Receivable 1,344 Inventory 2,167 Prepaids and Other Current Assets 584 Property, Plant & Equipment 269 Identifiable Intangible Assets 4,374 Goodwill 4,446 Accounts Payable (1,009 ) Accrued Expenses (1,136 ) Income Taxes Payable (111 ) Non-Current Liabilities (209 ) Deferred Income Taxes (74 ) Deferred Income Taxes on Intangible Assets (788 ) Total Consideration $ 11,161
Business Acquisition, Pro Forma Information [Table Text Block]	Nine Months Ended Sept. 27, 2015 Sept. 25, 2016 Revenue $ 67,193 $ 60,835 Operating Income $ 3,206 $ 2,119 Net Income $ 2,589 $ 1,764 Earnings Per Share: Basic $ .16 $ .12 Diluted $ .16 $ .11

Note 4 - Inventories (Tables)

Note 4 - Inventories (Tables)	9 Months Ended
	Sep. 25, 2016
Notes Tables
Schedule of Inventory, Current [Table Text Block]	September 2 5 , December 31, 2016 2015 Raw Materials $ 13,297 $ 11,602 Work In Process 1,771 1,560 Finished Goods 9,809 10,652 Total $ 24,877 $ 23,814

Note 5 - Property, Equipment 22

Note 5 - Property, Equipment and Improvements (Tables)	9 Months Ended
	Sep. 25, 2016
Notes Tables
Property, Plant and Equipment [Table Text Block]	September 2 5 , December 31, 2016 2015 Land $ 123 $ 123 Buildings and Leasehold Improvements 7,785 7,490 Machinery and Equipment 50,044 49,609 Furniture and Fixtures 1,980 1,974 Computer Hardware and Software 5,021 4,585 Construction In Process 619 745 65,572 64,526 Less-Accumulated Depreciation (57,021 ) (55,488 ) Property, Equipment and Improvements, net $ 8,551 $ 9,038
Property, Plant and Equipment, Depreciation Expense [Table Text Block]	Three-Month Periods E nded Nine-Month Periods E nded Sept. 2 5 , Sept. 27 , Sept. 2 5 , Sept. 27 , 2016 2015 2016 2015 Depreciation Expense $ 533 $ 617 $ 1,698 $ 1,795

Note 6 - Goodwill, Intangible23

Note 6 - Goodwill, Intangible Assets and Long Term Assets (Tables)	9 Months Ended
	Sep. 25, 2016
Notes Tables
Schedule of Goodwill [Table Text Block]	Battery & Energy Communi- cations Products Systems Total Balance - December 31, 2014 $ 4,914 $ 11,493 $ 16,407 Effect of Foreign Currency Translation (80 ) - (80 ) Balance – September 27, 2015 4,834 11,493 16,327 Effect of Foreign Currency Translation (44 ) - (44 ) Balance - December 31, 2015 4,790 11,493 16,283 Acquisition of Accutronics 4,446 - 4,446 Effect of Foreign Currency Translation (466 ) - (466 ) Balance – September 25, 2016 $ 8,770 $ 11,493 $ 20,263
Schedule of Finite-Lived Intangible Assets [Table Text Block]	at September 25 , 2016 Accumulated Cost Amortization Net Trademarks $ 3,413 $ - $ 3,413 Patents and Technology 5,504 4,373 1,131 Customer Relationships 6,516 3,940 2,576 Distributor Relationships 377 365 12 Trade Name 377 28 349 Total Intangible Assets $ 16,187 $ 8,706 $ 7,481 at December 31, 2015 Accumulated Cost 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 Intangible Assets $ 12,234 $ 8,288 $ 3,946
Finite-lived Intangible Assets Amortization Expense [Table Text Block]	Three-Month Periods E nded Nine-Month Periods E nded Sept. 2 5 , Sept. 27 , Sept. 2 5 , Sept. 27 , 2016 2015 2016 2015 Amortization Included In: Research and Development $ 49 $ 32 $ 152 $ 97 Selling, General and Administrative 80 29 251 83 Total Amortization Expense $ 129 $ 61 $ 403 $ 180

Note 8 - Shareholders' Equity (

Note 8 - Shareholders' Equity (Tables)	9 Months Ended
	Sep. 25, 2016
Notes Tables
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block]	Three-Month Periods E nded Nine-Month Periods E nded Sept. 2 5 , Sept. 27 , Sept. 2 5 , Sept. 2 7 , 2016 2015 2016 2015 Stock Options $ 197 $ 112 $ 525 $ 368 Restricted Stock Grants 8 23 30 71 Total $ 205 $ 135 $ 555 $ 439
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]	Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value Outstanding at January 1, 2016 2,257,969 $ 6.30 Granted 346,000 4.71 Exercised (47,642 ) 3.81 Forfeited or Expired (64,651 ) 8.02 Outstanding at Sept. 25, 2016 2,491,676 6.08 3.46 $ 246 Vested and Expected to Vest at Sept. 25, 2016 2,347,190 6.17 3.26 $ 226 Exercisable at Sept. 25, 2016 1,392,204 $ 4.90 2.17 $ 168
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]	Risk-Free Interest Rate 0.89 % Volatility Factor 48.08 % Dividends 0.00 % Weighted Average Expected Life (Years) 2.82

Note 9 - Income Taxes (Tables)

Note 9 - Income Taxes (Tables)	9 Months Ended
	Sep. 25, 2016
Notes Tables
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]	Three-Month Periods Ended Nine-Month Periods Ended Sept. 25, Sept. 27, Sept. 25, Sept. 27, 2016 2015 2016 2015 Current Income Tax Provision: Foreign $ 12 $ 44 $ (1 ) $ 87 Federal 21 26 38 48 State 4 5 11 12 Deferred Income Tax Provision 55 55 165 165 Total $ 92 $ 130 $ 213 $ 312
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]	Three-Month Periods Ended Nine-Month Periods Ended Sept. 25, Sept. 27, Sept. 25, Sept. 27, 2016 2015 2016 2015 Income Before Income Taxes (a) $ 1,108 $ 1,178 $ 1,952 $ 2,656 Income Tax Provision (b) 92 130 213 312 Effective Income Tax Rate (b/a) 8.3 % 11.0 % 10.9 % 11.7 %

Note 11 - Commitments, Contin26

Note 11 - Commitments, Contingencies and Subsequent Event (Tables)	9 Months Ended
	Sep. 25, 2016
Notes Tables
Schedule of Product Warranty Liability [Table Text Block]	Nine-Month P eriods E nded Sept. 2 5 , 2016 Sept. 27 , 2015 Accrued Warranty Obligations – Beginning $ 192 $ 376 Accruals for Warranties Issued 30 16 Settlements Made and Effect of Foreign Currency Translation (43 ) (34 ) Accrued Warranty Obligations – Ending $ 179 $ 358

Note 12 - Business Segment In27

Note 12 - Business Segment Information (Tables)	9 Months Ended
	Sep. 25, 2016
Notes Tables
Schedule of Segment Reporting Information, by Segment [Table Text Block]	Battery & Energy Products Communi- cations Systems Corporate Total Revenues $ 14,943 $ 4,688 $ - $ 19,631 Segment Contribution 4,522 1,475 (4,859 ) 1,138 Interest, Financing and Miscellaneous Expense, Net (30 ) (30 ) Tax Provision (92 ) (92 ) Non-Controlling Interest 3 3 Net Income Attributable to Ultralife $ 1,019 Total Assets $ 42,394 $ 32,129 $ 9,034 $ 83,557 Battery & Energy Products Communi- cations Systems Corporate Total Revenues $ 16,390 $ 2,654 $ - $ 19,044 Segment Contribution 4,774 1,126 (4,727 ) 1,173 Interest, Financing and Miscellaneous Expense, Net 5 5 Tax Provision (130 ) (130 ) Non-Controlling Interest (1 ) (1 ) Net Income Attributable to Ultralife $ 1,047 Total Assets $ 35,828 $ 28,191 $ 17,333 $ 81,352 Battery & Energy Products Communi- cations Systems Corporate Total Revenues $ 47,142 $ 13,693 $ - $ 60,835 Segment Contribution 14,404 3,898 (16,183 ) 2,119 Interest, Financing and Miscellaneous Expense, Net (167 ) (167 ) Tax Provision (213 ) (213 ) Non-Controlling Interest 25 25 Net Income Attributable to Ultralife $ 1,764 Battery & Energy Products Communi- cations Systems Corporate Total Revenues $ 48,638 $ 8,538 $ - $ 57,176 Segment Contribution 14,100 3,666 (14,954 ) 2,812 Interest, Financing and Miscellaneous Expense, Net (156 ) (156 ) Tax Provision (312 ) (312 ) Non-Controlling Interest 23 23 Net Income Attributable to Ultralife $ 2,367

Note 2 - Acquisition (Details T

Note 2 - Acquisition (Details Textual) - Accutronics Limited [Member] £ in Thousands, $ in Thousands	Feb. 24, 2016USD ($)	Feb. 24, 2016GBP (£)	Jan. 13, 2016USD ($)	Jan. 13, 2016GBP (£)	Sep. 25, 2016USD ($)
Customer Contracts and Relationships [Member]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill	$ 2,820
Intellectual Property [Member]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill	1,132
Trade Names [Member]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill	$ 421
Minimum [Member]
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	10 years	10 years
Maximum [Member]
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	15 years	15 years
Payments to Acquire Businesses, Gross			$ 10,976	£ 7,575
Payments to Acquire Businesses, Net of Cash Acquired Working Capital Adjustment | £		£ 133
Business Combination, Consideration Transferred	$ 11,161	£ 7,708
Business Combination, Adjustment, Intangible Assets	(402)
Business Combination, Adjustment, Property, Plant, and Equipment	(99)
Business Combination, Adjustment, Prepaids and Other Current Assets	291
Business Combination, Adjustment, Inventory	75
Business Combination, Adjustment, Deferred Income Taxes on Intangible Assets	72
Business Combination, Adjustment, Goodwill	$ 63
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill			$ 4,374
Business Combination, Acquisition Related Costs					$ 251
Inventory Adjustments					96
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual					7,551
Business Combination, Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual					$ (61)

Note 2 - Acquisition - Schedule

Note 2 - Acquisition - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands	Sep. 25, 2016	Jan. 13, 2016	Dec. 31, 2015	Sep. 27, 2015	Dec. 31, 2014
Accutronics Limited [Member]
Cash		$ 1,304
Accounts Receivable		1,344
Inventory		2,167
Prepaids and Other Current Assets		584
Property, Plant & Equipment		269
Identifiable Intangible Assets		4,374
Goodwill		4,446
Accounts Payable		(1,009)
Accrued Expenses		(1,136)
Income Taxes Payable		(111)
Non-Current Liabilities		(209)
Deferred Income Taxes		(74)
Deferred Income Taxes on Intangible Assets		(788)
Total Consideration		$ 11,161
Goodwill	$ 20,263		$ 16,283	$ 16,327	$ 16,407

Note 2 - Acquisition - Unaudite

Note 2 - Acquisition - Unaudited Pro Forma Information (Details) - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 25, 2016	Sep. 27, 2015
Revenue	$ 60,835	$ 67,193
Operating Income	2,119	3,206
Net Income	$ 1,764	$ 2,589
Basic (in dollars per share)	$ 0.12	$ 0.16
Diluted (in dollars per share)	$ 0.11	$ 0.16

Note 3 - Share Repurchase Pro31

Note 3 - Share Repurchase Program (Details Textual) - USD ($) $ in Thousands	9 Months Ended		25 Months Ended
	Sep. 25, 2016	Sep. 27, 2015	Jun. 02, 2016	May 01, 2014
Maximum [Member]
Stock Repurchase Program, Number of Shares Authorized to be Repurchased			3,400,000	1,800,000
Treasury Stock, Shares, Acquired	149,904	2,225,437	2,592,095
Treasury Stock, Value, Acquired, Cost Method	$ 603	$ 9,162	$ 10,480

Note 4 - Inventories (Details T

Note 4 - Inventories (Details Textual) - USD ($) $ in Thousands	Sep. 25, 2016	Dec. 31, 2015
Accutronics Limited [Member]
Inventory, Net	$ 1,868
Inventory, Net	$ 24,877	$ 23,814

Note 4 - Inventories - Composit

Note 4 - Inventories - Composition of Inventories (Details) - USD ($) $ in Thousands	Sep. 25, 2016	Dec. 31, 2015
Raw Materials	$ 13,297	$ 11,602
Work In Process	1,771	1,560
Finished Goods	9,809	10,652
Total	$ 24,877	$ 23,814

Note 5 - Property, Equipment 34

Note 5 - Property, Equipment and Improvements - Major Classes of Property, Equipment and Improvements (Details) - USD ($) $ in Thousands	Sep. 25, 2016	Dec. 31, 2015
Land [Member]
Property, Plant and Equipment, Gross	$ 123	$ 123
Building and Building Improvements [Member]
Property, Plant and Equipment, Gross	7,785	7,490
Machinery and Equipment [Member]
Property, Plant and Equipment, Gross	50,044	49,609
Furniture and Fixtures [Member]
Property, Plant and Equipment, Gross	1,980	1,974
Computer Equipment [Member]
Property, Plant and Equipment, Gross	5,021	4,585
Construction in Progress [Member]
Property, Plant and Equipment, Gross	619	745
Property, Plant and Equipment, Gross	65,572	64,526
Less-Accumulated Depreciation	(57,021)	(55,488)
Property, Equipment and Improvements, net	$ 8,551	$ 9,038

Note 5 - Property, Equipment 35

Note 5 - Property, Equipment and Improvements - Depreciation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 25, 2016	Sep. 27, 2015	Sep. 25, 2016	Sep. 27, 2015
Depreciation Expense	$ 533	$ 617	$ 1,698	$ 1,795

Note 6 - Goodwill, Intangible36

Note 6 - Goodwill, Intangible Assets and Long Term Assets - Goodwill Activity by Segment (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Dec. 31, 2015	Sep. 25, 2016	Sep. 27, 2015
Battery & Energy Products Segment [Member]
Balance	$ 4,834	$ 4,790	$ 4,914
Effect of Foreign Currency Translation	(44)	(466)	(80)
Balance – September 27, 2015	4,790	8,770	4,834
Acquisition of Accutronics		4,446
Communications Systems Segment [Member]
Balance	11,493	11,493	11,493
Effect of Foreign Currency Translation
Balance – September 27, 2015	11,493	11,493	11,493
Acquisition of Accutronics
Balance	16,327	16,283	16,407
Effect of Foreign Currency Translation	(44)	(466)	(80)
Balance – September 27, 2015	$ 16,283	20,263	$ 16,327
Acquisition of Accutronics		$ 4,446

Note 6 - Goodwill, Intangible37

Note 6 - Goodwill, Intangible Assets and Long Term Assets - Composition of Intangible Assets (Details) - USD ($) $ in Thousands	Sep. 25, 2016	Dec. 31, 2015
Trademarks [Member]
Trademarks	$ 3,413	$ 3,411
Patents and Technology [Member]
Cost	5,504	4,482
Accumulated Amortization	4,373	4,217
Net	1,131	265
Customer Relationships [Member]
Cost	6,516	3,971
Accumulated Amortization	3,940	3,716
Net	2,576	255
Distributor Relationships [Member]
Cost	377	370
Accumulated Amortization	365	355
Net	12	15
Trade Names [Member]
Cost	377
Accumulated Amortization	28
Net	349
Cost	16,187	12,234
Accumulated Amortization	8,706	8,288
Net	$ 7,481	$ 3,946

Note 6 - Goodwill, Intangible38

Note 6 - Goodwill, Intangible Assets and Long Term Assets - Amortization expense for Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 25, 2016	Sep. 27, 2015	Sep. 25, 2016	Sep. 27, 2015
Research and Development Expense [Member]
Amortization Expense	$ 49	$ 32	$ 152	$ 97
Selling, General and Administrative Expenses [Member]
Amortization Expense	80	29	251	83
Amortization Expense	$ 129	$ 61	$ 403	$ 180

Note 7 - Revolving Credit Agr39

Note 7 - Revolving Credit Agreement (Details Textual) - PNC Bank [Member] - USD ($)	9 Months Ended
	Sep. 25, 2016	Sep. 27, 2015
Revolving Credit Facility [Member]
Line of Credit Facility, Maximum Borrowing Capacity	$ 20,000,000
Line of Credit Facility Maximum Borrowing Capacity May Be Increased to	$ 35,000,000
Line of Credit Facility, Interest Rate at Period End	4.50%
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage	0.375%
Long-term Line of Credit	$ 0	$ 0
Letter of Credit [Member]
Line of Credit Facility, Maximum Borrowing Capacity	1,000,000
Line of Credit Facility, Remaining Borrowing Capacity	$ 10,660,000
Long-term Line of Credit		$ 0

Note 8 - Shareholders' Equity40

Note 8 - Shareholders' Equity (Details Textual) - USD ($)	1 Months Ended		3 Months Ended		9 Months Ended
	Sep. 25, 2016	Sep. 30, 2014	Sep. 25, 2016	Sep. 27, 2015	Sep. 25, 2016	Sep. 27, 2015
Employee Stock Option [Member]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition					1 year 91 days
Restricted Stock [Member]
Stock Issued During Period, Shares, Restricted Stock Award, Gross		49,200
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period					3 years
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value		$ 3.24
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares	15,900
Stock Repurchased During Period, Shares	4,131
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options	$ 15,000		$ 15,000		$ 15,000
Excess Tax Benefit from Share-based Compensation, Financing Activities					0	$ 0
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options	$ 666,000		666,000		$ 666,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value					$ 2.01
Proceeds from Stock Options Exercised			$ 106,000	$ 19,000	$ 181,000	$ 28,000

Note 8 - Shareholders' Equity -

Note 8 - Shareholders' Equity - Non-cash Stock Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 25, 2016	Sep. 27, 2015	Sep. 25, 2016	Sep. 27, 2015
Stock Options	$ 197	$ 112	$ 525	$ 368
Restricted Stock Grants	8	23	30	71
Total	$ 205	$ 135	$ 555	$ 439

Note 8 - Shareholders' Equity42

Note 8 - Shareholders' Equity - Stock Option Activity (Details) $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 25, 2016USD ($)$ / sharesshares
Options outstanding (in shares) | shares	2,257,969
Options outstanding - weighted average exercise price (in dollars per share) | $ / shares	$ 6.30
Options granted (in shares) | shares	346,000
Options granted - weighted average exercise price (in dollars per share) | $ / shares	$ 4.71
Options exercised (in shares) | shares	(47,642)
Options exercised - weighted average exercise price (in dollars per share) | $ / shares	$ 3.81
Options forfeited or expired (in shares) | shares	(64,651)
Options forfeited or expired - weighted average exercise price (in dollars per share) | $ / shares	$ 8.02
Options outstanding (in shares) | shares	2,491,676
Options outstanding - weighted average exercise price (in dollars per share) | $ / shares	$ 6.08
Options outstanding - weighted average remaining contractual term	3 years 167 days
Options outstanding - aggregate intrinsic value | $	$ 246
Options vested and expected to vest (in shares) | shares	2,347,190
Options vested and expected to vest - weighted average exercise price (in dollars per share) | $ / shares	$ 6.17
Options vested and expected to vest - weighted average remaining contractual term	3 years 94 days
Options vested and expected to vest - aggregate intrinsic value | $	$ 226
Options exercisable (in shares) | shares	1,392,204
Options exercisable - weighted average exercise price (in dollars per share) | $ / shares	$ 4.90
Options exercisable - weighted average remaining contractual term	2 years 62 days
Options exercisable - aggregate intrinsic value | $	$ 168

Note 8 - Shareholders' Equity43

Note 8 - Shareholders' Equity - Stock Option Assumptions (Details)	9 Months Ended
	Sep. 25, 2016
Risk-Free Interest Rate	0.89%
Volatility Factor	48.08%
Dividends	0.00%
Weighted Average Expected Life (Years)	2 years 299 days

Note 9 - Income Taxes (Details

Note 9 - Income Taxes (Details Textual) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 25, 2016	Sep. 27, 2015	Sep. 25, 2016	Sep. 27, 2015	Dec. 31, 2015
Foreign Tax Authority [Member]
Operating Loss Carryforwards					$ 12,400
Domestic Tax Authority [Member]
Operating Loss Carryforwards					74,400
Income Tax Expense (Benefit)	$ 92	$ 130	$ 213	$ 312
Operating Loss Carryforwards					86,800
Tax Credit Carryforward, Amount					1,600
Operating Loss Carryforwards Amount Recorded in Equity Upon Realization					$ 3,000

Note 9 - Income Taxes - Income

Note 9 - Income Taxes - Income Tax Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 25, 2016	Sep. 27, 2015	Sep. 25, 2016	Sep. 27, 2015
Foreign	$ 12	$ 44	$ (1)	$ 87
Federal	21	26	38	48
State	4	5	11	12
Deferred Income Tax Provision	55	55	165	165
Total	$ 92	$ 130	$ 213	$ 312

Note 9 - Income Taxes - Effecti

Note 9 - Income Taxes - Effective Consolidated Tax Rate (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 25, 2016	Sep. 27, 2015	Sep. 25, 2016	Sep. 27, 2015
Income Before Income Taxes (a)	$ 1,108	$ 1,178	$ 1,952	$ 2,656
Income Tax Expense (Benefit)	$ 92	$ 130	$ 213	$ 312
Effective Income Tax Rate (b/a)	8.30%	11.00%	10.90%	11.70%

Note 10 - Earnings Per Share (D

Note 10 - Earnings Per Share (Details Textual) - shares	3 Months Ended		9 Months Ended
	Sep. 25, 2016	Sep. 27, 2015	Sep. 25, 2016	Sep. 27, 2015
Dilutive Securities Included in Computation of Earnings Per Share Amount	758,593	1,026,282	1,139,843	431,532
Dilutive Securities Included in Computation of Earnings Per Share Amount Restricted Stock	15,900	34,200	15,900	34,200
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements	91,041	107,000	184,564	47,000
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	1,733,083	1,264,422	1,351,833	1,859,172

Note 11 - Commitments, Contin48

Note 11 - Commitments, Contingencies and Subsequent Event (Details Textual) - USD ($) $ in Thousands	May 04, 2015	Sep. 25, 2016
Capital Addition Purchase Commitments [Member]
Long-term Purchase Commitment, Amount		$ 493
Loss Contingency, Damages Sought, Value	$ 42,000

Note 11 - Commitments, Contin49

Note 11 - Commitments, Contingencies and Subsequent Event - Changes in Produce Warranty Liability (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 25, 2016	Sep. 27, 2015
Accrued Warranty Obligations, Beginning	$ 192	$ 376
Accruals for Warranties Issued	30	16
Settlements Made and Effect of Foreign Currency Translation	(43)	(34)
Accrued Warranty Obligations, Ending	$ 179	$ 358

Note 12 - Business Segment In50

Note 12 - Business Segment Information (Details Textual)	9 Months Ended
	Sep. 25, 2016
Number of Operating Segments	2

Note 12 - Business Segment In51

Note 12 - Business Segment Information - Segment Activity (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 25, 2016	Sep. 27, 2015	Sep. 25, 2016	Sep. 27, 2015	Dec. 31, 2015
Battery & Energy Products Segment [Member]
Revenues	$ 14,943	$ 16,390	$ 47,142	$ 48,638
Segment Contribution	4,522	4,774	14,404	14,100
Total Assets	42,394	35,828	42,394	35,828
Communications Systems Segment [Member]
Revenues	4,688	2,654	13,693	8,538
Segment Contribution	1,475	1,126	3,898	3,666
Total Assets	32,129	28,191	32,129	28,191
Corporate Segment [Member]
Revenues
Segment Contribution	(4,859)	(4,727)	(16,183)	(14,954)
Interest, Financing and Miscellaneous Expense, Net	(30)	5	(167)	(156)
Tax Provision	(92)	(130)	(213)	(312)
Non-Controlling Interest	3	(1)	25	23
Total Assets	9,034	17,333	9,034	17,333
Revenues	19,631	19,044	60,835	57,176
Segment Contribution	1,138	1,173	2,119	2,812
Interest, Financing and Miscellaneous Expense, Net	(30)	5	(167)	(156)
Tax Provision	(92)	(130)	(213)	(312)
Non-Controlling Interest	3	(1)	25	23
Net Income Attributable to Ultralife	1,019	1,047	1,764	2,367
Total Assets	$ 83,557	$ 81,352	$ 83,557	$ 81,352	$ 81,522

Note 13 - Due From Insurance 52

Note 13 - Due From Insurance Company (Details Textual) - USD ($)	Sep. 06, 2016	Jun. 30, 2011	Apr. 30, 2013	Jun. 26, 2016
Business Interruption Loss, Gross		$ 1,589,000
Proceeds from Insurance Settlement, Operating Activities			$ 1,286,000
Gain on Business Interruption Insurance Recovery			$ 0
Insurance Settlements Receivable				$ 177,000
Business Interruption, Insurance Deductible				$ 126,000
Gain (Loss) Related to Litigation Settlement	$ (55,000)