Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Mar. 19, 2014 | Jun. 30, 2013 | |
Document and Entity Information [Abstract] | ' | ' | ' |
Entity Registrant Name | 'WIRELESS TELECOM GROUP INC | ' | ' |
Document Type | '10-K | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 24,033,231 | ' |
Entity Public Float | ' | ' | $24,596,787 |
Amendment Flag | 'false | ' | ' |
Entity Central Index Key | '0000878828 | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Filer Category | 'Smaller Reporting Company | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
CURRENT ASSETS: | ' | ' |
Cash and cash equivalents | $16,599,249 | $12,969,513 |
Accounts receivable - net of allowance for doubtful accounts of $135,742 and $57,333 for 2013 and 2012, respectively | 5,357,769 | 5,676,015 |
Inventories | 8,169,276 | 8,289,635 |
Deferred income taxes - current | 1,462,552 | 1,127,553 |
Prepaid expenses and other current assets | 720,229 | 588,726 |
Assets held for sale | ' | 3,179,002 |
TOTAL CURRENT ASSETS | 32,309,075 | 31,830,444 |
PROPERTY, PLANT AND EQUIPMENT - NET | 1,609,427 | 1,266,692 |
OTHER ASSETS: | ' | ' |
Goodwill | 1,351,392 | 1,351,392 |
Deferred income taxes – non-current | 7,454,935 | 6,084,042 |
Other assets | 712,202 | 697,054 |
TOTAL OTHER ASSETS | 9,518,529 | 8,132,488 |
TOTAL ASSETS | 43,437,031 | 41,229,624 |
CURRENT LIABILITIES: | ' | ' |
Accounts payable | 1,459,594 | 1,258,426 |
Accrued expenses and other current liabilities | 1,523,931 | 1,426,788 |
Equipment lease payable – current | 120,103 | ' |
Current portion of mortgage payable | ' | 2,629,215 |
TOTAL CURRENT LIABILITIES | 3,103,628 | 5,314,429 |
LONG TERM LIABILITIES: | ' | ' |
Equipment lease payable | 59,296 | ' |
COMMITMENTS AND CONTINGENCIES | ' | ' |
SHAREHOLDERS’ EQUITY: | ' | ' |
Preferred stock, $.01 par value, 2,000,000 shares authorized, none issued | ' | ' |
Common stock, $.01 par value, 75,000,000 shares authorized, 29,232,557 and 29,012,557 shares issued, 24,033,231 and 23,987,972 shares outstanding, respectively | 292,326 | 290,126 |
Additional paid-in capital | 38,970,783 | 38,226,921 |
Retained earnings | 10,700,020 | 6,857,820 |
Treasury stock, at cost – 5,199,326 and 5,024,585 shares, respectively | -9,689,022 | -9,459,672 |
40,274,107 | 35,915,195 | |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $43,437,031 | $41,229,624 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Allowance for doubtful accounts (in Dollars) | $135,742 | $57,333 |
Preferred stock par value (in Dollars per share) | $0.01 | $0.01 |
Preferred stock, shares authorized | 2,000,000 | 2,000,000 |
Preferred stock, shares issued | ' | ' |
Common stock par value (in Dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized | 75,000,000 | 75,000,000 |
Common stock, shares issued | 29,232,557 | 29,012,557 |
Common stock, shares outstanding | 24,033,231 | 23,987,972 |
Treasury stock, shares | 5,199,326 | 5,024,585 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
NET SALES | $33,825,073 | $29,594,544 |
COST OF SALES | 17,696,723 | 14,817,747 |
GROSS PROFIT | 16,128,350 | 14,776,797 |
OPERATING EXPENSES | ' | ' |
Research and development | 2,645,070 | 2,524,030 |
Sales and marketing | 4,858,239 | 4,603,316 |
General and administrative | 6,429,278 | 4,891,833 |
TOTAL OPERATING EXPENSES | 13,932,587 | 12,019,179 |
OPERATING INCOME | 2,195,763 | 2,757,618 |
OTHER (INCOME) EXPENSE | ' | ' |
Interest expense - net | 114,193 | 201,191 |
Other (income) – net | -484,971 | -224,611 |
TOTAL OTHER (INCOME) EXPENSE | -370,778 | -23,420 |
INCOME FROM OPERATIONS BEFORE (BENEFIT) FROM INCOME TAXES | 2,566,541 | 2,781,038 |
(BENEFIT) FROM INCOME TAXES | -1,275,659 | -389,763 |
NET INCOME | $3,842,200 | $3,170,801 |
INCOME PER COMMON SHARE: | ' | ' |
Basic (in Dollars per share) | $0.16 | $0.13 |
Diluted (in Dollars per share) | $0.16 | $0.13 |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | ' | ' |
Basic (in Shares) | 23,935,486 | 24,258,853 |
Diluted (in Shares) | 24,534,162 | 24,632,755 |
CONSOLIDATED_STATEMENT_OF_CHAN
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (USD $) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Total |
BALANCE at Dec. 31, 2011 | $288,839 | $37,918,844 | $3,687,019 | ($8,681,720) | $33,212,982 |
Net income | ' | ' | 3,170,801 | ' | 3,170,801 |
Shares issued under restricted stock plan | 1,287 | -1,287 | ' | ' | ' |
Stock compensation expense | ' | 309,364 | ' | ' | 309,364 |
Repurchase of treasury stock | ' | ' | ' | -777,952 | -777,952 |
BALANCE at Dec. 31, 2012 | 290,126 | 38,226,921 | 6,857,820 | -9,459,672 | 35,915,195 |
Net income | ' | ' | 3,842,200 | ' | 3,842,200 |
Shares issued under restricted stock plan | 2,200 | -2,200 | ' | ' | ' |
Stock compensation expense | ' | 746,062 | ' | ' | 746,062 |
Repurchase of treasury stock | ' | ' | ' | -229,350 | -229,350 |
BALANCE at Dec. 31, 2013 | $292,326 | $38,970,783 | $10,700,020 | ($9,689,022) | $40,274,107 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
CASH FLOW FROM OPERATING ACTIVITIES: | ' | ' |
Net income | $3,842,200 | $3,170,801 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation | 344,577 | 351,356 |
Stock compensation expense | 746,062 | 309,364 |
Realized gain on sale of non-marketable security | -161,500 | ' |
Realized gain on sale of building | -188,403 | ' |
Deferred income taxes | -1,705,892 | -765,595 |
Provision for (recovery of) doubtful accounts | 78,409 | -65,202 |
Changes in assets and liabilities: | ' | ' |
Accounts receivable | 239,837 | -940,183 |
Inventories | 120,359 | -712,584 |
Prepaid expenses and other assets | -86,489 | -58,262 |
Accounts payable, accrued expenses and other current liabilities | 267,930 | 889,585 |
Net cash provided by operating activities | 3,497,090 | 2,179,280 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Capital expenditures | -504,400 | -447,900 |
Proceeds from sale of non-marketable securities | 162,500 | ' |
Proceeds from sale of building | 3,393,919 | ' |
Net cash provided by (used for) investing activities | 3,052,019 | -447,900 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Payments of mortgage note | -2,629,215 | -73,697 |
Repayments on equipment lease payable | -60,808 | ' |
Repurchase of treasury stock | -229,350 | -777,952 |
Net cash (used for) financing activities | -2,919,373 | -851,649 |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 3,629,736 | 879,731 |
Cash and cash equivalents, at beginning of year | 12,969,513 | 12,089,782 |
CASH AND CASH EQUIVALENTS, AT END OF YEAR | 16,599,249 | 12,969,513 |
Cash paid during the year for: | ' | ' |
Taxes | 290,194 | 385,396 |
Interest | 115,103 | 201,842 |
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES: | ' | ' |
Capital expenditures | -240,206 | ' |
Equipment lease payable | $240,206 | ' |
DESCRIPTION_OF_COMPANY_AND_SUM
DESCRIPTION OF COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Accounting Policies [Abstract] | ' | ||||||||
Significant Accounting Policies [Text Block] | ' | ||||||||
NOTE 1 | - | DESCRIPTION OF COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: | |||||||
Organization and Basis of Presentation: | |||||||||
Wireless Telecom Group, Inc. and Subsidiaries (the “Company”) develops and manufactures a wide variety of electronic noise sources, testing and measurement instruments and high-power, passive microwave components, which it sells to customers throughout the United States and worldwide through its foreign sales corporation and foreign distributors to commercial and government customers in the electronics industry. The consolidated financial statements include the accounts of Wireless Telecom Group, Inc., which operates one of its product lines under the trade name Noisecom, Inc. (“Noisecom”), and its wholly-owned subsidiaries, Boonton Electronics Corporation (“Boonton”), Microlab/FXR (“Microlab”), WTG Foreign Sales Corporation and NC Mahwah, Inc. All intercompany transactions are eliminated in consolidation. | |||||||||
The Company discloses its operations in two reportable segments, test and measurement and network solutions. The test and measurement segment is comprised primarily of the operations of Boonton and Noisecom. The network solutions segment is comprised primarily of the operations of Microlab. | |||||||||
Use of Estimates: | |||||||||
The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Accordingly, actual results could differ from those estimates. The most significant estimates and assumptions include management’s analysis in support of realization of the Company’s deferred tax asset, accounting for performance-based stock options, inventory reserves and allowance for doubtful accounts. | |||||||||
Concentrations of Credit Risk and Fair Value: | |||||||||
Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and accounts receivable. | |||||||||
The Company maintains significant cash investments primarily with two financial institutions, which at times may exceed federally insured limits. The Company performs periodic evaluations of the relative credit rating of these institutions as part of its investment strategy. | |||||||||
Concentrations of credit risk with respect to accounts receivable is diversified due to the large number of entities comprising our customer base and their dispersion across many different industries and geographies. Credit evaluations are performed on customers requiring credit over a certain amount. Credit risk is mitigated through collateral such as letters of credit, bank guarantees or payment terms like cash in advance. Credit evaluation is performed independent of the Company’s sales team to ensure segregation of duties. | |||||||||
One customer accounted for 11% of the Company’s total consolidated sales for each of the years ended December 31, 2013 and 2012. At December 31, 2013 and 2012, 0 customer represented 10% or more of the Company’s gross accounts receivable balance. | |||||||||
The carrying amounts of cash and cash equivalents, trade receivables, prepaid expenses and other current assets, accounts payable and accrued expenses and other current liabilities approximate fair value due to the short-term nature of these instruments. | |||||||||
At December 31, 2012, the fair value (estimated based upon expected cash outflows discounted at current market rates) and carrying value of the fixed rate mortgage amounted to $2,690,786 and $2,629,215, respectively. | |||||||||
Cash and Cash Equivalents: | |||||||||
The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Cash and cash equivalents consist of operating and money market accounts. | |||||||||
The Company classifies investments as short-term investments if their original or remaining maturities are greater than three months and their remaining maturities are one year or less. As of December 31, 2013, substantially all of the Company’s investments consisted of cash and cash equivalents. | |||||||||
Accounts Receivable and allowance for doubtful accounts: | |||||||||
Trade accounts receivable are recorded at the invoiced amount and do not bear interest. The volatility of the industries the Company serves can cause certain of its customers to experience shortages of cash flows, which can impact their ability to make required payments. The Company maintains allowances for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments. Estimated allowances for doubtful accounts are reviewed periodically taking into account the customer’s recent payment history, the customer’s current financial statements and other information regarding the customer’s credit worthiness. Account balances are charged off against the allowance when it is determined the receivable will not be recovered. | |||||||||
Inventories: | |||||||||
Raw material inventories are stated at the lower of cost (first-in, first-out method) or market. Finished goods and work-in-process are valued at average cost of production, which includes material, labor and manufacturing expenses. Inventory carrying value is net of inventory reserves of $765,413 and $621,996 as of December 31, 2013 and 2012, respectively. | |||||||||
Inventories consist of: | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Raw materials | $ | 5,028,743 | $ | 5,186,555 | |||||
Work-in-process | 470,983 | 390,188 | |||||||
Finished goods | 2,669,550 | 2,712,892 | |||||||
$ | 8,169,276 | $ | 8,289,635 | ||||||
Property, Plant and Equipment: | |||||||||
Property, plant and equipment are reflected at cost, less accumulated depreciation. Depreciation and amortization are provided on a straight-line basis over the following useful lives: | |||||||||
Minimum | Maximum | ||||||||
Machinery and equipment | 5 years | 10 years | |||||||
Furniture and fixtures | 5 years | 10 years | |||||||
Transportation equipment | 3 years | 5 years | |||||||
Leasehold improvements are amortized over the remaining term of the lease and reflect the estimated life of the improvements. Repairs and maintenance are charged to operations as incurred; renewals and betterments are capitalized. | |||||||||
Goodwill: | |||||||||
Goodwill represents the excess of the aggregate purchase price over the fair value of the net assets acquired in a purchase business combination. Goodwill is not amortized but rather is reviewed for impairment at least annually, or more frequently if a triggering event occurs. Management first makes a qualitative assessment of whether it is more likely than not that a reporting unit’s fair value is less than its carrying amount before applying the two-step goodwill impairment test. If, based on the qualitative assessment, the estimated fair value is well in excess of its carrying amount, management will not perform any quantitative assessment. If, however, the conclusion is that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, management then performs a two-step goodwill impairment test. Under the first step, the fair value of the reporting unit is compared with its carrying value, and, if an indication of goodwill impairment exists for the reporting unit, the Company must perform step two of the impairment test (measurement). Under step two, an impairment loss is recognized for any excess of the carrying amount of the reporting unit’s goodwill as determined by allocating the fair value of the reporting unit in a manner similar to a purchase price allocation. The residual fair value after this allocation is the implied fair value of the reporting unit goodwill. If the fair value of the reporting unit exceeds its carrying value, step two does not need to be performed. | |||||||||
The Company’s goodwill balance of $1,351,392 at December 31, 2013 and 2012 relates to one of the Company’s reporting units, Microlab. Management’s qualitative assessment performed in the fourth quarters of 2013 and 2012 did not indicate any impairment of Microlab’s goodwill as its fair value is estimated to be well in excess of its carrying value. | |||||||||
Impairment of long-lived assets: | |||||||||
Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Determination of recoverability is based on an estimate of undiscounted cash flows resulting from the use of the assets and its eventual disposition. Measurement of an impairment loss for long-lived assets that management expects to hold for sale is based on the fair value of the assets. Long-lived assets to be disposed of are reported at the lower of carrying amount or fair value less costs to sell. | |||||||||
Revenue Recognition: | |||||||||
Revenue from product shipments, including shipping and handling fees, is recognized once delivery has occurred provided that persuasive evidence of an arrangement exists, the price is fixed or determinable, and collectability is reasonably assured. Delivery is considered to have occurred when title and risk of loss have transferred to the customer. Sales to international distributors are recognized in the same manner. If title does not pass until the product reaches the customer’s delivery site, then recognition of revenue is deferred until that time. There are 0 formal sales incentives offered to any of the Company’s customers. Volume discounts may be offered from time to time to customers purchasing large quantities on a per transaction basis. There are 0 special post shipment obligations or acceptance provisions that exist with any sales arrangements. | |||||||||
Research and Development Costs: | |||||||||
Research and development costs are charged to operations when incurred. The amounts charged to operations for the years ended December 31, 2013 and 2012 were $2,645,070 and $2,524,030, respectively. | |||||||||
Advertising Costs: | |||||||||
Advertising expenses are charged to operations during the year in which they are incurred and aggregated $302,269 and $326,431 for the years ended December 31, 2013 and 2012, respectively. | |||||||||
Stock-Based Compensation: | |||||||||
The Company follows the provisions of ASC 718, “Share-Based Payment” which requires that compensation expense be recognized, based on the fair value of the stock awards less estimated forfeitures. The fair value of the stock awards is equal to the fair value of the Company’s stock on the date of grant. The fair value of options at the date of grant was estimated using the Black-Scholes option pricing model. When performance-based options are granted, the Company takes into consideration guidance under ASC 718 and SEC Staff Accounting Bulletin No. 107 (SAB 107) when determining assumptions. The expected option life is derived from assumed exercise rates based upon historical exercise patterns and represents the period of time that options granted are expected to be outstanding. The expected volatility is based upon historical volatility of our shares using weekly price observations over an observation period that approximates the expected life of the options. The risk-free rate is based on the U.S. Treasury yield curve rate in effect at the time of grant for periods similar to the expected option life. The estimated forfeiture rate included in the option valuation is based on our past history of forfeitures. Due to the limited amount of forfeitures in the past, the Company’s estimated forfeiture rate has been zero. | |||||||||
Management estimates are necessary in determining compensation expense for stock options with performance-based vesting criteria. Compensation expense for this type of stock-based award is recognized over the period from the date the performance conditions are determined to be probable of occurring through the implicit service period, which is the date the applicable conditions are expected to be met. If the performance conditions are not considered probable of being achieved, 0 expense is recognized until such time as the performance conditions are considered probable of being met, if ever. If the award is forfeited because the performance condition is not satisfied, previously recognized compensation cost is reversed. Management evaluates performance conditions on a quarterly basis. | |||||||||
Income Taxes: | |||||||||
The Company records deferred taxes in accordance with ASC 740, “Accounting for Income Taxes”. This ASC requires recognition of deferred tax assets and liabilities for temporary differences between tax basis of assets and liabilities and the amounts at which they are carried in the financial statements, based upon the enacted rates in effect for the year in which the differences are expected to reverse. The Company establishes a valuation allowance when necessary to reduce deferred tax assets to the amount expected to be realized. The Company periodically assesses the value of its deferred tax asset and determines the necessity for a valuation allowance. | |||||||||
The Company had historically analyzed its deferred tax asset on a quarterly basis and adjusted the deferred tax valuation allowance based on its rolling five-year projection of estimated taxable income, taking into consideration any limitations that may exist on its use of its net operating loss carryforwards. During the fourth quarter of 2013, the Company evaluated the realizability of its deferred tax asset and the need for a valuation allowance based upon the Company’s history of generating taxable income, analysis of expected future taxable income, as well as other factors deemed appropriate. As a result, management determined that the entire deferred tax asset is expected to be realized and accordingly has not provided a valuation allowance to its deferred tax asset on its domestic net operating losses. | |||||||||
Under ASC 740, the Company must recognize and disclose the tax benefit from an uncertain position only if it is more-likely-than-not the tax position will be sustained on examination by the taxing authority, based on the technical merits of the position. The tax benefits recognized and disclosed in the financial statements attributable to such position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon the ultimate resolution of the position. | |||||||||
The Company has analyzed its filing positions in all of the federal and state jurisdictions where it is required to file income tax returns. As of December 31, 2013 and 2012, the Company has identified its federal tax return and its state tax return in New Jersey as “major” tax jurisdictions, as defined, in which it is required to file income tax returns. Based on the evaluations noted above, the Company has concluded that there are 0 significant uncertain tax positions requiring recognition or disclosure in its consolidated financial statements. | |||||||||
Based on a review of tax positions for all open years and contingencies as set out in the Company’s notes to the consolidated financial statements, 0 reserves for uncertain income tax positions have been recorded pursuant to ASC 740 during the years ended December 31, 2013 and 2012, and the Company does not anticipate that it is reasonably possible that any material increase or decrease in its unrecognized tax benefits will occur within twelve months. | |||||||||
Income Per Common Share: | |||||||||
Basic income per share is calculated by dividing income available to common shareholders by the weighted average number of shares of common stock outstanding during the period. Diluted income per share is calculated by dividing income available to common shareholders by the weighted average number of common shares outstanding for the period and, when dilutive, potential shares from stock options and warrants to purchase common stock, using the treasury stock method. In accordance with ASC 260, “Earnings Per Share”, the following table reconciles basic shares outstanding to fully diluted shares outstanding. | |||||||||
Years Ended December 31, | |||||||||
2013 | 2012 | ||||||||
Weighted average number of common shares outstanding — Basic | 23,935,486 | 24,258,853 | |||||||
Potentially dilutive stock options | 598,676 | 373,902 | |||||||
Weighted average number of common and equivalent shares outstanding-Diluted | 24,534,162 | 24,632,755 | |||||||
Common stock options are included in the diluted income (loss) per share calculation only when option exercise prices are lower than the average market price of the common shares for the period presented. The weighted average number of common stock options not included in diluted income (loss) per share, because the effects are anti-dilutive, was 2,481,748 and 1,904,792 for 2013 and 2012, respectively. | |||||||||
Subsequent events: | |||||||||
The Company has evaluated subsequent events and, except as described in Note 10, the Company has determined that there were no subsequent events or transactions requiring recognition or disclosure in the consolidated financial statements. | |||||||||
Recent Accounting Pronouncements Affecting the Company: | |||||||||
In February 2013, the FASB issued ASU No. 2013-02, “Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income.” Under ASU 2013-02, an entity is required to provide information about the amounts reclassified out of Accumulated Other Comprehensive Income (“AOCI”) by component. In addition, an entity is required to present, either on the face of the financial statements or in the notes, significant amounts reclassified out of AOCI by the respective line items of net income, but only if the amount reclassified is required to be reclassified in its entirety in the same reporting period. For amounts that are not required to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures that provide additional details about those amounts. ASU 2013-02 does not change the current requirements for reporting net income or other comprehensive income in the financial statements. ASU 2013-02 was effective for the Company beginning January 1, 2013. The adoption of this ASU did not have a material impact on its consolidated financial statements. | |||||||||
Management does not believe there are any other recently issued, but not yet effective accounting pronouncements, if adopted, that would have a material effect on the accompanying consolidated financial statements. | |||||||||
Reclassifications: | |||||||||
Certain information from the prior year’s presentation has been reclassified to conform to the current year’s reporting presentation. |
PROPERTY_PLANT_AND_EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Property, Plant and Equipment Disclosure [Text Block] | ' | ||||||||
NOTE 2 | - | PROPERTY, PLANT AND EQUIPMENT: | |||||||
Property, plant and equipment, consists of the following: | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Machinery and equipment | $ | 4,656,346 | $ | 4,031,389 | |||||
Furniture and fixtures | 110,444 | 108,431 | |||||||
Transportation equipment | 157,677 | 141,190 | |||||||
Leasehold improvements | 984,105 | 1,095,617 | |||||||
5,908,572 | 5,376,627 | ||||||||
Less: accumulated depreciation | 4,299,145 | 4,109,935 | |||||||
$ | 1,609,427 | $ | 1,266,692 | ||||||
Depreciation expense of $344,577 and $351,356 was recorded for the years ended December 31, 2013 and 2012, respectively. |
OTHER_ASSETS
OTHER ASSETS | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Disclosure Text Block Supplement [Abstract] | ' | ||||||||
Other Assets Disclosure [Text Block] | ' | ||||||||
NOTE 3 | - | OTHER ASSETS: | |||||||
Other assets consist of the following: | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Product demo assets | $ | 653,436 | $ | 643,399 | |||||
Security deposit | 50,000 | 50,000 | |||||||
Miscellaneous | 8,766 | 3,655 | |||||||
Total | $ | 712,202 | $ | 697,054 | |||||
ACCRUED_EXPENSES_AND_OTHER_CUR
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Disclosure Text Block Supplement [Abstract] | ' | ||||||||
Accounts Payable, Accrued Liabilities, and Other Liabilities Disclosure, Current [Text Block] | ' | ||||||||
NOTE 4 | - | ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES: | |||||||
Accrued expenses and other current liabilities consist of the following: | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Payroll and related benefits | $ | 960,559 | $ | 803,134 | |||||
Commissions | 152,427 | 80,942 | |||||||
Goods received not invoiced | 117,907 | 151,618 | |||||||
Professional fees | 100,242 | 119,283 | |||||||
Sales and use tax | 105,378 | 76,434 | |||||||
Warranty reserve | — | 75,000 | |||||||
Accrued disposition costs | 14,142 | 63,186 | |||||||
Other | 73,276 | 57,191 | |||||||
Total | $ | 1,523,931 | $ | 1,426,788 | |||||
SALE_OF_BUILDING
SALE OF BUILDING | 12 Months Ended | ||
Dec. 31, 2013 | |||
Sale Of Building [Abstract] | ' | ||
Sale Of Building [Text Block] | ' | ||
NOTE 5 | - | SALE OF BUILDING: | |
On August 1, 2013, the Company closed on the sale of a property previously owned by the Company and located in Mahwah, New Jersey (the “Mahwah Building”) and repaid the existing mortgage loan payable on the building with the proceeds of the sale. As part of the terms of the sale, the Company was required to place $350,000 in escrow until certain conditions are met, as determined by the State of New Jersey. The Company expects the escrow amount to be released subsequent to the filing of its 2013 tax returns in mid-2014. The terms of the mortgage loan relating to the Mahwah Building required monthly payments of $23,750 applied to both principal and interest at the annual rate of 7.45%. As a result of the sale and the repayment of the mortgage loan, the Company recognized a gain of $188,403 and is no longer obligated to make any loan payments. At December 31, 2012, the Mahwah Building is included in Assets Held for Sale in the accompanying consolidated balance sheets at a carrying value of $3,179,002. | |||
Included in the Company’s consolidated statement of operations, recorded as non-operating income, are certain income and expenses directly related to the Mahwah Building. The Company’s results of operations included rental income of $225,161 and $385,992 for the years ended December 31, 2013 and 2012, respectively. For the years ended December 31 2013 and 2012, the Company’s results of operations included mortgage interest expense of $115,103 and $201,842 and building depreciation expenses of $0 and $66,698, respectively. |
SHAREHOLDERS_EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||
Stockholders' Equity Note [Abstract] | ' | ||||||||||||||||||
Stockholders' Equity Note Disclosure [Text Block] | ' | ||||||||||||||||||
NOTE 6 | - | SHAREHOLDERS’ EQUITY: | |||||||||||||||||
Incentive Compensation Plan: | |||||||||||||||||||
On June 13, 2012, our shareholders approved the Company’s 2012 Incentive Compensation Plan (the “2012 Plan”). The 2012 Plan replaced the Company’s Amended and Restated 2000 Stock Option Plan, as amended (the “Prior Plan”), under which 0 additional grants will be made. Under the 2012 Plan, the total number of shares of the Company’s common stock reserved and available for issuance under the 2012 Plan at any time is 2,000,000 shares, plus any shares subject to awards that have been issued under the Prior Plan that expire, are cancelled, or are terminated after June 13, 2012 without having been exercised in full and would have become available for subsequent grants under the Prior Plan. As of December 31, 2013, there were 746,304 shares available for issuance under the 2012 Plan. The 2012 Plan provides for the grant of Restricted Stock Awards, Non-Qualified Stock Options and Incentive Stock Options in compliance with the Internal Revenue Code of 1986, as amended, to employees, officers, directors, consultants and advisors of the Company who are expected to contribute to the Company’s future growth and success. | |||||||||||||||||||
All service-based options granted have ten year terms and, from the date of grant, vest annually and become fully exercisable after a maximum of five years. Performance-based options granted have ten year terms and vest and become fully exercisable when determinable performance targets are achieved. Performance targets are agreed to, and approved by, the Company’s board of directors. | |||||||||||||||||||
Under the Company’s 2012 Plan, options may be granted to purchase shares of the Company’s common stock exercisable at prices generally equal to or above the fair market value on the date of the grant. | |||||||||||||||||||
Restricted common stock awards: | |||||||||||||||||||
On August 19, 2013, the Board of Directors approved the grant of performance-based restricted stock awards to certain employees of the Company, including its officers. On August 19, 2013, the Company entered into restricted stock agreements pursuant to which certain employees of the Company were awarded, collectively, up to 100,000 shares of the Company’s common stock at $1.77 per share, which represents the closing price of the Company’s common stock on the date of grant. | |||||||||||||||||||
Under the terms of the restricted stock agreements, the awards will fully vest and become exercisable on the date on which the Board shall have determined that specific revenue and earnings performance targets have been met, provided the employee remains in the employ of the Company at such time; provided, however, upon a Change in Control (as defined in the restricted stock agreements and the 2012 Plan), the restricted stock shall automatically vest as permitted by the 2012 Plan. As of December 31, 2013, the Company has not incurred expense relating to these performance-based stock awards as it is improbable that the performance targets will be achieved. | |||||||||||||||||||
On June 12, 2013, certain members of the Company’s Board of Directors were each granted 20,000 shares of restricted common stock, 120,000 shares in total, at $1.51 per share, which represents the closing price of the Company’s common stock on the date of grant. These shares will vest on the date of the Company’s next annual meeting of shareholder’s to be held in June 2014, provided that the director’s service continues through the vesting date. | |||||||||||||||||||
The following tables summarize the restricted common stock awards granted to certain directors, officers and employees of the Company during the years ended December 31, 2013 and 2012 under the 2012 Plan: | |||||||||||||||||||
Year ended December 31, 2013 | Number of Shares | Price per | |||||||||||||||||
Individuals | Granted | Granted Share | Vesting Date | ||||||||||||||||
Chief Executive Officer | 42,000 | $ | 1.77 | Performance based | |||||||||||||||
Chief Financial Officer | 11,000 | $ | 1.77 | Performance based | |||||||||||||||
V.P. of Sales and Marketing | 26,000 | $ | 1.77 | Performance based | |||||||||||||||
Various Other Employees | 21,000 | $ | 1.77 | Performance based | |||||||||||||||
Board of Directors | 120,000 | $ | 1.51 | Next Annual Meeting | (June 2014) | ||||||||||||||
220,000 | |||||||||||||||||||
Year ended December 31, 2012 | Number of | Price per | |||||||||||||||||
Shares | |||||||||||||||||||
Individuals | Granted | Granted Share | Vesting Date | ||||||||||||||||
Chief Executive Officer | 50,000 | $ | 1.15 | 13-Jun-12 | (vested upon grant) | ||||||||||||||
26,957 | $ | 1.15 | 20-Mar-13 | ||||||||||||||||
V.P. of Sales and Marketing | 21,739 | $ | 1.15 | 20-Mar-13 | |||||||||||||||
Board of Directors | 80,000 | $ | 1.15 | 13-Jun-12 | (vested upon grant) | ||||||||||||||
80,000 | $ | 1.15 | 13-Jun-13 | ||||||||||||||||
258,696 | |||||||||||||||||||
During the year ended December 31, 2013, the Company repurchased 13,479 shares of restricted common stock from its Chief Executive Officer and 10,870 shares of restricted common stock from its V.P. of Sales and Marketing for $36,279, or $1.49 per share which represented the trading price at the date of repurchase. During the year ended December 31, 2012, the Company repurchased 23,334 shares of restricted common stock from its Chief Executive Officer for $26,834, or $1.15 per share which represented the trading price at the date of repurchase. In accordance with the terms of the 2012 Plan, the Compensation Committee of the Board of Directors authorized the Company to repurchase, upon vesting of the restricted stock, that certain number of shares necessary to allow such grantees to satisfy their personal tax liability associated with the vesting of such shares. | |||||||||||||||||||
A summary of the status of the Company’s non-vested restricted common stock, as granted under the Company’s approved stock compensation plan, as of December 31, 2013 and 2012, and changes during the years ended December 31, 2013 and 2012 are presented below: | |||||||||||||||||||
Non-vested Shares | Number of Shares | Weighted Average | |||||||||||||||||
Grant Date | |||||||||||||||||||
Fair Value | |||||||||||||||||||
Non-vested at January 1, 2012 | 90,000 | $ | 0.95 | ||||||||||||||||
Forfeited | (90,000 | ) | $ | 0.95 | |||||||||||||||
Granted | 258,696 | $ | 1.15 | ||||||||||||||||
Vested | (130,000 | ) | $ | 1.15 | |||||||||||||||
Non-vested at December 31, 2012 | 128,696 | $ | 1.15 | ||||||||||||||||
Forfeited | — | — | |||||||||||||||||
Granted | 220,000 | $ | 1.63 | ||||||||||||||||
Vested | (128,696 | ) | $ | 1.15 | |||||||||||||||
Non-vested at December 31, 2013 | 220,000 | $ | 1.63 | ||||||||||||||||
For the years ended December 31, 2013 and 2012, the Company recorded compensation expense related to restricted common stock in the amount of $155,268 and $112,432, respectively. | |||||||||||||||||||
As of December 31, 2013, the unearned compensation related to Company granted restricted common stock is $267,600 of which $90,600 will be amortized on a straight-line basis through the date of the Company’s next annual meeting to be held in June 2014, the vesting date. The remaining balance of $177,000 will begin to be amortized when it is determined that certain vesting conditions are probable of being achieved. | |||||||||||||||||||
Performance-based stock option awards: | |||||||||||||||||||
On August 19, 2013, the Board of Directors approved the grant of performance-based stock options to certain employees of the Company, including its officers. Accordingly, the Company entered into stock option agreements pursuant to which certain employees of the Company were awarded options to purchase, collectively, up to 950,000 shares of the Company’s common stock at an exercise price of $1.77 per share, which represents the closing price of the Company’s common stock on the date of grant. | |||||||||||||||||||
Under the terms of the stock option agreements the options will fully vest and become exercisable on the date on which the Board shall have determined that specific revenue and earnings performance targets have been met, provided the employee remains in the employ of the Company at such time; provided, however, upon a Change in Control (as defined in the stock option agreements and the 2012 Plan), the options shall automatically accelerate and become fully exercisable as permitted by the 2012 Plan. As of December 31, 2013, the Company has not incurred expense relating to these performance-based stock options as it is improbable that the performance targets will be achieved. | |||||||||||||||||||
A summary of performance-based stock option activity, and related information for the years ended December 31 2013 and 2012 follows: | |||||||||||||||||||
Options | Weighted Average | ||||||||||||||||||
Exercise Price | |||||||||||||||||||
Non-vested, January 1, 2012 | 1,340,000 | $ | 0.92 | ||||||||||||||||
Granted | — | — | |||||||||||||||||
Exercised | — | — | |||||||||||||||||
Forfeited | — | — | |||||||||||||||||
Canceled/Expired | (40,000 | ) | $ | 0.78 | |||||||||||||||
Non-vested, December 31, 2012 | 1,300,000 | $ | 0.93 | ||||||||||||||||
Granted | 950,000 | $ | 1.77 | ||||||||||||||||
Vested | (1,300,000 | ) | $ | 0.93 | |||||||||||||||
Exercised | — | — | |||||||||||||||||
Forfeited | — | — | |||||||||||||||||
Canceled/Expired | — | — | |||||||||||||||||
Non-vested, December 31, 2013 | 950,000 | $ | 1.77 | ||||||||||||||||
Options exercisable: | |||||||||||||||||||
31-Dec-12 | — | — | |||||||||||||||||
31-Dec-13 | 1,300,000 | $ | 0.93 | ||||||||||||||||
The aggregate intrinsic value of performance-based stock options outstanding as of December 31, 2013 and 2012 was $1,896,250 and $416,150, respectively. The aggregate intrinsic value of performance-based stock options exercisable as of December 31, 2013 and 2012 was $1,563,750 and $0, respectively. | |||||||||||||||||||
For the years ended December 31, 2013 and 2012, the Company recorded compensation expense related to performance-based options in the amount of $590,794 and $196,932, respectively. | |||||||||||||||||||
Management evaluates the likelihood of achieving certain vesting conditions with respect to performance-based stock awards on a quarterly basis. Since the end of 2011, the Company had been amortizing its performance-based options issued prior to 2013 on a straight-line basis through December 31, 2015, the expected implicit service period at the time, which resulted in annual compensation expense of $196,932. During the three-months ended September 30, 2013, management determined that the performance targets for those options granted prior to 2013 were likely to be met as of December 31, 2013. As a result, the Company accelerated the expensing of such options through December 31, 2013, the revised implicit service date. The impact of the accelerated expense on net income for the year ended December 31, 2013 was $393,862, or $0.02 per basic and diluted share. Additionally, due to the acceleration, this tranche of options has been fully amortized at December 31, 2013. | |||||||||||||||||||
The aggregate grant date fair-value of performance-based options granted in 2013 was $867,683, or approximately $0.91 per share. The unearned compensation of $867,683 will not be recognized until management considers it probable that the respective performance conditions to be achievable. | |||||||||||||||||||
Service-based stock option awards: | |||||||||||||||||||
A summary of service-based stock option activity, and related information for the years ended December 31, follows: | |||||||||||||||||||
Options | Weighted Average | ||||||||||||||||||
Exercise Price | |||||||||||||||||||
Outstanding, December 31, 2011 | 1,008,667 | $ | 2.61 | ||||||||||||||||
Granted | — | — | |||||||||||||||||
Exercised | — | — | |||||||||||||||||
Forfeited | — | — | |||||||||||||||||
Canceled/Expired | (146,667 | ) | $ | 2.56 | |||||||||||||||
Outstanding, December 31, 2012 | 862,000 | $ | 2.61 | ||||||||||||||||
Granted | — | — | |||||||||||||||||
Exercised | — | — | |||||||||||||||||
Forfeited | — | — | |||||||||||||||||
Canceled/Expired | (75,000 | ) | $ | 2.26 | |||||||||||||||
Outstanding, December 31, 2013 | 787,000 | $ | 2.65 | ||||||||||||||||
Options exercisable: | |||||||||||||||||||
31-Dec-12 | 862,000 | $ | 2.61 | ||||||||||||||||
31-Dec-13 | 787,000 | $ | 2.65 | ||||||||||||||||
At December 31, 2013, the Company’s service-based stock options were fully amortized. | |||||||||||||||||||
The options outstanding and exercisable as of December 31, 2013 are summarized as follows: | |||||||||||||||||||
Range of | Weighted average | Options | Options | Weighted average | |||||||||||||||
exercise prices | exercise price | Outstanding | Exercisable | remaining life | |||||||||||||||
$0.75 - $1.42 | $0.93 | 1,300,000 | 1,300,000 | 6.1 years | |||||||||||||||
$1.69 - $2.25 | $1.77 | 950,000 | — | 9.7 years | |||||||||||||||
$2.28 - $3.02 | $2.65 | 787,000 | 787,000 | 1.8 years | |||||||||||||||
3,037,000 | 2,087,000 | ||||||||||||||||||
The following summarizes the components of stock-based compensation expense by equity type for the years ended December 31: | |||||||||||||||||||
2013 | 2012 | ||||||||||||||||||
Performance-Based Stock Options | $ | 590,794 | $ | 196,932 | |||||||||||||||
Restricted Common Stock | 155,268 | 112,432 | |||||||||||||||||
Total Share-Based Compensation Expense | $ | 746,062 | $ | 309,364 | |||||||||||||||
Stock-based compensation for the years ended 2013 and 2012 is included in general and administrative expenses in the accompanying consolidated statement of operations. |
SEGMENT_AND_RELATED_INFORMATIO
SEGMENT AND RELATED INFORMATION | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Segment Reporting [Abstract] | ' | ||||||||
Segment Reporting Disclosure [Text Block] | ' | ||||||||
NOTE 7 | - | SEGMENT AND RELATED INFORMATION: | |||||||
Financial information by segment: | |||||||||
The operating businesses of the Company are segregated into two reportable segments, test and measurement and network solutions. The test and measurement segment is comprised primarily of the Company’s operations (Noisecom) and the operations of its subsidiary, Boonton. The network solutions segment is comprised primarily of the operations of the Company’s subsidiary, Microlab. | |||||||||
The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies. The Company allocates resources and evaluates the performance of segments based on income or loss from operations, excluding interest, corporate expenses and other income (expenses). | |||||||||
Financial information by reportable segment as of and for the years ended December 31, 2013 and 2012 is presented below: | |||||||||
2013 | 2012 | ||||||||
Net sales by segment: | |||||||||
Test and measurement | $ | 11,793,524 | $ | 15,260,449 | |||||
Network solutions | 22,031,549 | 14,334,095 | |||||||
Total consolidated net sales and net sales of reportable segments | $ | 33,825,073 | $ | 29,594,544 | |||||
Segment income: | |||||||||
Test and measurement | $ | 1,154,067 | $ | 2,592,323 | |||||
Network solutions | 5,558,019 | 3,498,076 | |||||||
Income from reportable segments | 6,712,086 | 6,090,399 | |||||||
Other unallocated amounts: | |||||||||
Corporate expenses | (4,516,323 | ) | (3,332,781 | ) | |||||
Interest and other income - net | 370,778 | 23,420 | |||||||
Consolidated income from operations before income tax (benefit) | $ | 2,566,541 | $ | 2,781,038 | |||||
Depreciation by segment: | |||||||||
Test and measurement | $ | 217,429 | $ | 272,330 | |||||
Network solutions | 127,148 | 79,026 | |||||||
Total depreciation for reportable segments | $ | 344,577 | $ | 351,356 | |||||
Capital expenditures by segment (net of equipment lease payable of $240,206): | |||||||||
Test and measurement | $ | 327,525 | $ | 259,844 | |||||
Network solutions | 176,875 | 188,056 | |||||||
Total consolidated capital expenditures by reportable segment | $ | 504,400 | $ | 447,900 | |||||
Total assets by segment: | |||||||||
Test and measurement | $ | 8,270,614 | $ | 12,104,700 | |||||
Network solutions | 9,649,681 | 8,864,541 | |||||||
Total assets for reportable segments | 17,920,295 | 20,969,241 | |||||||
Corporate assets, principally cash and cash equivalents and deferred and current taxes | 25,516,736 | 20,260,383 | |||||||
Total consolidated assets | $ | 43,437,031 | $ | 41,229,624 | |||||
In addition to its in-house sales staff, the Company uses various manufacturers’ representatives to sell its products. For the years ended December 31, 2013 and 2012, 0 representative accounted for more than 10% of total consolidated sales. | |||||||||
Regional Sales: | |||||||||
Net consolidated sales from operations by region were as follows: | |||||||||
For the Year | |||||||||
Ended December 31, | |||||||||
2013 | 2012 | ||||||||
Americas | $ | 26,760,912 | $ | 22,511,566 | |||||
Europe, Middle East, Africa (EMEA) | 4,434,037 | 4,718,669 | |||||||
Asia Pacific (APAC) | 2,630,124 | 2,364,309 | |||||||
$ | 33,825,073 | $ | 29,594,544 | ||||||
Net sales are attributable to a geographic area based on the destination of the product shipment. The majority of shipments in the Americas are to customers located within the United States. For the years ended December 31, 2013 and 2012, sales in the United States amounted to $25,152,929 and $20,930,669, respectively. Shipments to the remaining regions presented above were largely concentrated in Germany (EMEA) and China (APAC). For the years ended December 31, 2013 and 2012, sales to Germany amounted to $1,330,645, or 30% of all shipments to the EMEA region, and $1,394,467, or 30% of all shipments to the EMEA region, respectively. Sales to China, for the years ended December 31, 2013 and 2012, amounted to $1,609,182, or 61% of all shipments to the APAC region, and $1,414,485, or 60% of all shipments to the APAC region, respectively. There were no other shipments significantly concentrated in one country. | |||||||||
Purchases: | |||||||||
For the years ended 2013 and 2012, 0 third-party supplier accounted for more than 11% and 8% of the Company’s total consolidated inventory purchases, respectively. |
RETIREMENT_PLAN
RETIREMENT PLAN | 12 Months Ended | ||
Dec. 31, 2013 | |||
Compensation and Retirement Disclosure [Abstract] | ' | ||
Pension and Other Postretirement Benefits Disclosure [Text Block] | ' | ||
NOTE 8 | - | RETIREMENT PLAN: | |
The Company has a 401(k) profit sharing plan covering all eligible U.S. employees. Company contributions to the plan for the years ended December 31, 2013 and 2012 amounted to $353,463 and $320,276, respectively. |
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||
Income Tax Disclosure [Text Block] | ' | ||||||||
NOTE 9 | - | INCOME TAXES: | |||||||
The components of income tax expense (benefit) related to income from operations are as follows: | |||||||||
Year Ended December 31, | |||||||||
2013 | 2012 | ||||||||
Current: | |||||||||
Federal | $ | 42,036 | $ | 45,117 | |||||
State | 388,196 | 330,714 | |||||||
Deferred: | |||||||||
Federal | (1,439,614 | ) | (650,755 | ) | |||||
State | (266,277 | ) | (114,839 | ) | |||||
$ | (1,275,659 | ) | $ | (389,763 | ) | ||||
The following is a reconciliation of the maximum statutory federal tax rate to the Company’s effective tax relative to operations: | |||||||||
Year Ended December 31, | |||||||||
2013 | 2012 | ||||||||
% of | % of | ||||||||
Pre Tax | Pre Tax | ||||||||
Earnings | Earnings | ||||||||
Statutory federal income tax rate | 34 | % | 34 | % | |||||
Change in valuation allowance on deferred taxes | (94.4 | ) | (55.9 | ) | |||||
State income tax net of federal tax benefit | 16.3 | 13.4 | |||||||
Permanent differences | (4.9 | ) | (6.3 | ) | |||||
Other | (0.7 | ) | 0.8 | ||||||
(49.7 | )% | (14.0 | )% | ||||||
In 2013 and 2012, the difference between the statutory and the effective tax rate is primarily due to a change in valuation allowance on deferred taxes based upon management’s updated assumptions related to expected realizability of future taxable income. | |||||||||
The components of deferred income taxes are as follows: | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Deferred tax assets: | |||||||||
Uniform capitalization of inventory costs for tax purposes | $ | 225,022 | $ | 221,155 | |||||
Reserves on inventories | 556,368 | 499,001 | |||||||
Allowances for doubtful accounts | 54,297 | 22,933 | |||||||
Accruals | 234,008 | 195,149 | |||||||
Tax effect of goodwill | (435,450 | ) | (321,636 | ) | |||||
Book depreciation over tax | (252,204 | ) | (49,618 | ) | |||||
Net operating loss carryforward | 15,547,580 | 16,556,713 | |||||||
15,929,621 | 17,123,697 | ||||||||
Valuation allowance for deferred tax assets | (7,012,134 | ) | (9,912,102 | ) | |||||
$ | 8,917,487 | $ | 7,211,595 | ||||||
The Company has a domestic net operating loss carryforward at December 31, 2013 of approximately $21,300,000 which expires in 2029. The Company also has a foreign net operating loss carryforward at December 31, 2013 of approximately $23,400,000 which has 0 expiration. | |||||||||
Realization of the Company’s deferred tax assets is dependent upon the Company generating sufficient taxable income in the appropriate tax jurisdictions in future years to obtain benefit from the reversal of net deductible temporary differences and from utilization of net operating losses. The Company’s valuation allowance of $7,012,134 at December 31, 2013, is associated with the Company’s foreign net operating loss carryforward from an inactive foreign entity which is unlikely to be realized in future periods. The amount of deferred tax assets considered realizable is subject to adjustment in future periods if estimates of future taxable income are changed. As of December 31, 2013, management believes that is more likely than not that the Company will fully realize the benefits of its deferred tax assets associated with its domestic net operating loss carryforward. | |||||||||
The Company files income tax returns in its U.S. (federal and state of New Jersey) taxing jurisdictions. With few exceptions, the Company is no longer subject to U.S. federal and state tax examinations in its major tax jurisdictions for periods before 2009. | |||||||||
During the year ended December 31, 2013, the State of New Jersey conducted a field examination of one of the Company’s subsidiary tax returns (Boonton) for the years 2009 through 2012. The examination was completed in October 2013 and the State of New Jersey did not propose any significant adjustments to the Company’s tax positions. Additionally, the State of New Jersey is currently in the process of conducting a field examination of another of the Company’s subsidiary tax returns (Microlab) for the years 2009 through 2012. The Company expects the examination to be completed in mid 2014. | |||||||||
The Company does not have any significant unrecognized tax benefits and does not anticipate significant increase or decrease in unrecognized tax benefits within the next twelve months. Amounts recognized for income tax related interest and penalties as a component of the provision for income taxes are immaterial for the years ended December 31, 2013 and 2012. |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||
Commitments and Contingencies Disclosure [Text Block] | ' | ||||
NOTE 10 | - | COMMITMENTS AND CONTINGENCIES: | |||
Warranties: | |||||
The Company typically provides one-year warranties on all of its products covering both parts and labor. The Company, at its option, repairs or replaces products that are defective during the warranty period if the proper preventive maintenance procedures have been followed by its customers. Historically, warranty expense within the Company has been minimal. | |||||
Operating Leases: | |||||
The Company leases a 45,700 square foot facility located in Hanover Township, Parsippany, New Jersey, which is currently being used as its principal corporate headquarters and manufacturing plant. On February 25, 2014, the Company entered into an agreement to extend the building lease term for an additional six months through March 31, 2015. The lease can be renewed at the Company’s option for one five-year period at fair market value to be determined at term expiration. The current minimum monthly base rent payment remains at approximately $29,000. | |||||
The Company is also responsible for its proportionate share of the cost of utilities, repairs, taxes, and insurance. The future minimum lease payments are shown below: | |||||
2014 | $ | 342,750 | |||
2015 | 85,668 | ||||
$ | 428,438 | ||||
Rent expense, inclusive of common area maintenance charges, for the years ended December 31, 2013 and 2012 was $463,160 and $466,461, respectively. | |||||
The Company leases certain equipment under operating lease arrangements. These operating leases expire in various years through 2018. All leases may be renewed at the end of their respective leasing periods. Future payments relative to continuing operations consist of the following at December 31, 2013: | |||||
2014 | $ | 63,775 | |||
2015 | 63,775 | ||||
2016 | 63,775 | ||||
2017 | 63,775 | ||||
2018 | 58,461 | ||||
$ | 313,561 | ||||
In June 2013, the Company entered into a lease agreement for production test equipment. The agreement requires monthly payments in the amount of approximately $10,000 through June 2015. The net book value of the equipment was $179,399 at December 31, 2013. | |||||
Environmental Contingencies: | |||||
The New Jersey Department of Environmental Protection (the “NJDEP”) conducted an investigation in 1982 concerning disposal at a facility previously leased by the Company’s Boonton operations. The focus of the investigation involved certain materials formerly used by Boonton’s manufacturing operations at that site and the possible effect of such disposal on the aquifer underlying the property. The disposal practices and the use of the materials in question were discontinued in 1978. The Company has cooperated with the NJDEP investigation and has been diligently pursuing the matter in an attempt to resolve it in accordance with applicable NJDEP operating procedures. The above referenced activities were conducted by Boonton prior to the acquisition of that entity in 2000. | |||||
In 1982, the Company and the NJDEP agreed upon a plan to correct ground water contamination at the site, located in the township of Parsippany-Troy Hills, pursuant to which wells have been installed by the Company. The plan contemplates that the wells will be operated and that soil and water samples will be taken and analyzed until such time that contamination levels are satisfactory to the NJDEP. The Company is diligently pursuing efforts to satisfy the requirements of the original plan and receive a new determination from the NJDEP. Overall data from testing in March 2013 indicates the continuation of a decreasing concentration trend at the site. The overall decrease supports the absence of a continuing source impacting ground water. The Company believes that its current practice and plan of groundwater testing will continue until an official notification from NJDEP is obtained and the Company is released from further obligations. | |||||
Expenditures incurred by the Company during the year ended December 31, 2013 in connection with the site amounted to approximately $51,000. While management anticipates that the expenditures in connection with this site will not be substantial in future years, the Company could be subject to significant future liabilities and may incur significant future expenditures if further contaminants from Boonton’s testing are identified and the NJDEP requires additional remediation activities. Management is unable to estimate future remediation costs, if any, at this time. The Company will continue to be liable under the plan, in all future years, until such time as the NJDEP releases it from all obligations applicable thereto. | |||||
At this time, the Company believes that it is in material compliance with all environmental laws, does not anticipate any material expenditure to meet current or pending environmental requirements, and generally believes that its processes and products do not present any unusual environmental concerns. Besides the matter referred to above with the NJDEP, the Company is unaware of any existing, pending or threatened contingent liability that may have a material adverse affect on its ongoing business operations. | |||||
Line of Credit: | |||||
The Company maintains a line of credit with its investment bank. The credit facility provides borrowing availability of up to 100% of the Company’s money market account balance and 99% of the Company’s short-term investment securities and, under the terms and conditions of the loan agreement, is fully secured by said money fund account and any short-term investment holdings. Advances under the facility will bear interest at a variable rate equal to the London InterBank Offered Rate (“LIBOR”) in effect at time of borrowing. Additionally, under the terms and conditions of the loan agreement, there is 0 annual fee and any amount outstanding under the loan facility may be paid at any time in whole or in part without penalty. | |||||
As of December 31, 2013, the Company had 0 borrowings outstanding under the facility and approximately $4,500,000 of borrowing availability. The Company has no current plans to borrow from this credit facility as it believes cash generated from operations will adequately meet near-term working capital requirements. | |||||
Risks and Uncertainties: | |||||
Proprietary information and know-how are important to the Company’s commercial success. There can be no assurance that others will not either develop independently the same or similar information or obtain and use proprietary information of the Company. Certain key employees have signed confidentiality and non-compete agreements regarding the Company’s proprietary information. | |||||
The Company believes that its products do not infringe the proprietary rights of third parties. There can be no assurance, however, that third parties will not assert infringement claims in the future. |
SELECTED_QUARTERLY_FINANCIAL_D
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||
Quarterly Financial Information [Text Block] | ' | ||||||||||||||||
NOTE 11 | - | SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED): | |||||||||||||||
The following is a summary of selected quarterly financial data from operations (in thousands, except per share amounts). | |||||||||||||||||
2013 | Quarter | ||||||||||||||||
1st | 2nd | 3rd | 4th | ||||||||||||||
Net sales | $ | 6,797 | $ | 8,705 | $ | 8,791 | $ | 9,532 | |||||||||
Gross profit | 3,320 | 4,080 | 4,235 | 4,493 | |||||||||||||
Operating income | 244 | 717 | 572 | 663 | |||||||||||||
Net income from operations | 346 | 1,058 | 1,090 | 1,348 | |||||||||||||
Diluted net income per share from operations | $ | 0.01 | $ | 0.04 | $ | 0.04 | $ | 0.05 | |||||||||
2012 | Quarter | ||||||||||||||||
1st | 2nd | 3rd | 4th | ||||||||||||||
Net sales | $ | 6,902 | $ | 7,092 | $ | 7,385 | $ | 8,216 | |||||||||
Gross profit | 3,355 | 3,590 | 3,700 | 4,132 | |||||||||||||
Operating income | 551 | 609 | 773 | 824 | |||||||||||||
Net income from operations | 656 | 655 | 855 | 1,005 | |||||||||||||
Diluted net income per share from operations | $ | 0.03 | $ | 0.03 | $ | 0.03 | $ | 0.04 | |||||||||
Accounting_Policies_by_Policy_
Accounting Policies, by Policy (Policies) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Accounting Policies [Abstract] | ' | ||||||||
Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies [Text Block] | ' | ||||||||
Organization and Basis of Presentation: | |||||||||
Wireless Telecom Group, Inc. and Subsidiaries (the “Company”) develops and manufactures a wide variety of electronic noise sources, testing and measurement instruments and high-power, passive microwave components, which it sells to customers throughout the United States and worldwide through its foreign sales corporation and foreign distributors to commercial and government customers in the electronics industry. The consolidated financial statements include the accounts of Wireless Telecom Group, Inc., which operates one of its product lines under the trade name Noisecom, Inc. (“Noisecom”), and its wholly-owned subsidiaries, Boonton Electronics Corporation (“Boonton”), Microlab/FXR (“Microlab”), WTG Foreign Sales Corporation and NC Mahwah, Inc. All intercompany transactions are eliminated in consolidation. | |||||||||
The Company discloses its operations in two reportable segments, test and measurement and network solutions. The test and measurement segment is comprised primarily of the operations of Boonton and Noisecom. The network solutions segment is comprised primarily of the operations of Microlab. | |||||||||
Use of Estimates, Policy [Policy Text Block] | ' | ||||||||
Use of Estimates: | |||||||||
The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Accordingly, actual results could differ from those estimates. The most significant estimates and assumptions include management’s analysis in support of realization of the Company’s deferred tax asset, accounting for performance-based stock options, inventory reserves and allowance for doubtful accounts. | |||||||||
Concentration Risk, Credit Risk, Policy [Policy Text Block] | ' | ||||||||
Concentrations of Credit Risk and Fair Value: | |||||||||
Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and accounts receivable. | |||||||||
The Company maintains significant cash investments primarily with two financial institutions, which at times may exceed federally insured limits. The Company performs periodic evaluations of the relative credit rating of these institutions as part of its investment strategy. | |||||||||
Concentrations of credit risk with respect to accounts receivable is diversified due to the large number of entities comprising our customer base and their dispersion across many different industries and geographies. Credit evaluations are performed on customers requiring credit over a certain amount. Credit risk is mitigated through collateral such as letters of credit, bank guarantees or payment terms like cash in advance. Credit evaluation is performed independent of the Company’s sales team to ensure segregation of duties. | |||||||||
One customer accounted for 11% of the Company’s total consolidated sales for each of the years ended December 31, 2013 and 2012. At December 31, 2013 and 2012, 0 customer represented 10% or more of the Company’s gross accounts receivable balance. | |||||||||
The carrying amounts of cash and cash equivalents, trade receivables, prepaid expenses and other current assets, accounts payable and accrued expenses and other current liabilities approximate fair value due to the short-term nature of these instruments. | |||||||||
At December 31, 2012, the fair value (estimated based upon expected cash outflows discounted at current market rates) and carrying value of the fixed rate mortgage amounted to $2,690,786 and $2,629,215, respectively. | |||||||||
Cash and Cash Equivalents, Policy [Policy Text Block] | ' | ||||||||
Cash and Cash Equivalents: | |||||||||
The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Cash and cash equivalents consist of operating and money market accounts. | |||||||||
The Company classifies investments as short-term investments if their original or remaining maturities are greater than three months and their remaining maturities are one year or less. As of December 31, 2013, substantially all of the Company’s investments consisted of cash and cash equivalents. | |||||||||
Loans and Leases Receivable, Allowance for Loan Losses Policy [Policy Text Block] | ' | ||||||||
Accounts Receivable and allowance for doubtful accounts: | |||||||||
Trade accounts receivable are recorded at the invoiced amount and do not bear interest. The volatility of the industries the Company serves can cause certain of its customers to experience shortages of cash flows, which can impact their ability to make required payments. The Company maintains allowances for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments. Estimated allowances for doubtful accounts are reviewed periodically taking into account the customer’s recent payment history, the customer’s current financial statements and other information regarding the customer’s credit worthiness. Account balances are charged off against the allowance when it is determined the receivable will not be recovered. | |||||||||
Inventory, Policy [Policy Text Block] | ' | ||||||||
Inventories: | |||||||||
Raw material inventories are stated at the lower of cost (first-in, first-out method) or market. Finished goods and work-in-process are valued at average cost of production, which includes material, labor and manufacturing expenses. Inventory carrying value is net of inventory reserves of $765,413 and $621,996 as of December 31, 2013 and 2012, respectively. | |||||||||
Inventories consist of: | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Raw materials | $ | 5,028,743 | $ | 5,186,555 | |||||
Work-in-process | 470,983 | 390,188 | |||||||
Finished goods | 2,669,550 | 2,712,892 | |||||||
$ | 8,169,276 | $ | 8,289,635 | ||||||
Property, Plant and Equipment, Policy [Policy Text Block] | ' | ||||||||
Property, Plant and Equipment: | |||||||||
Property, plant and equipment are reflected at cost, less accumulated depreciation. Depreciation and amortization are provided on a straight-line basis over the following useful lives: | |||||||||
Minimum | Maximum | ||||||||
Machinery and equipment | 5 years | 10 years | |||||||
Furniture and fixtures | 5 years | 10 years | |||||||
Transportation equipment | 3 years | 5 years | |||||||
Leasehold improvements are amortized over the remaining term of the lease and reflect the estimated life of the improvements. Repairs and maintenance are charged to operations as incurred; renewals and betterments are capitalized. | |||||||||
Goodwill and Intangible Assets, Policy [Policy Text Block] | ' | ||||||||
Goodwill: | |||||||||
Goodwill represents the excess of the aggregate purchase price over the fair value of the net assets acquired in a purchase business combination. Goodwill is not amortized but rather is reviewed for impairment at least annually, or more frequently if a triggering event occurs. Management first makes a qualitative assessment of whether it is more likely than not that a reporting unit’s fair value is less than its carrying amount before applying the two-step goodwill impairment test. If, based on the qualitative assessment, the estimated fair value is well in excess of its carrying amount, management will not perform any quantitative assessment. If, however, the conclusion is that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, management then performs a two-step goodwill impairment test. Under the first step, the fair value of the reporting unit is compared with its carrying value, and, if an indication of goodwill impairment exists for the reporting unit, the Company must perform step two of the impairment test (measurement). Under step two, an impairment loss is recognized for any excess of the carrying amount of the reporting unit’s goodwill as determined by allocating the fair value of the reporting unit in a manner similar to a purchase price allocation. The residual fair value after this allocation is the implied fair value of the reporting unit goodwill. If the fair value of the reporting unit exceeds its carrying value, step two does not need to be performed. | |||||||||
The Company’s goodwill balance of $1,351,392 at December 31, 2013 and 2012 relates to one of the Company’s reporting units, Microlab. Management’s qualitative assessment performed in the fourth quarters of 2013 and 2012 did not indicate any impairment of Microlab’s goodwill as its fair value is estimated to be well in excess of its carrying value. | |||||||||
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | ' | ||||||||
Impairment of long-lived assets: | |||||||||
Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Determination of recoverability is based on an estimate of undiscounted cash flows resulting from the use of the assets and its eventual disposition. Measurement of an impairment loss for long-lived assets that management expects to hold for sale is based on the fair value of the assets. Long-lived assets to be disposed of are reported at the lower of carrying amount or fair value less costs to sell. | |||||||||
Revenue Recognition, Policy [Policy Text Block] | ' | ||||||||
Revenue Recognition: | |||||||||
Revenue from product shipments, including shipping and handling fees, is recognized once delivery has occurred provided that persuasive evidence of an arrangement exists, the price is fixed or determinable, and collectability is reasonably assured. Delivery is considered to have occurred when title and risk of loss have transferred to the customer. Sales to international distributors are recognized in the same manner. If title does not pass until the product reaches the customer’s delivery site, then recognition of revenue is deferred until that time. There are 0 formal sales incentives offered to any of the Company’s customers. Volume discounts may be offered from time to time to customers purchasing large quantities on a per transaction basis. There are 0 special post shipment obligations or acceptance provisions that exist with any sales arrangements. | |||||||||
Research and Development Expense, Policy [Policy Text Block] | ' | ||||||||
Research and Development Costs: | |||||||||
Research and development costs are charged to operations when incurred. The amounts charged to operations for the years ended December 31, 2013 and 2012 were $2,645,070 and $2,524,030, respectively. | |||||||||
Advertising Costs, Policy [Policy Text Block] | ' | ||||||||
Advertising Costs: | |||||||||
Advertising expenses are charged to operations during the year in which they are incurred and aggregated $302,269 and $326,431 for the years ended December 31, 2013 and 2012, respectively. | |||||||||
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | ' | ||||||||
Stock-Based Compensation: | |||||||||
The Company follows the provisions of ASC 718, “Share-Based Payment” which requires that compensation expense be recognized, based on the fair value of the stock awards less estimated forfeitures. The fair value of the stock awards is equal to the fair value of the Company’s stock on the date of grant. The fair value of options at the date of grant was estimated using the Black-Scholes option pricing model. When performance-based options are granted, the Company takes into consideration guidance under ASC 718 and SEC Staff Accounting Bulletin No. 107 (SAB 107) when determining assumptions. The expected option life is derived from assumed exercise rates based upon historical exercise patterns and represents the period of time that options granted are expected to be outstanding. The expected volatility is based upon historical volatility of our shares using weekly price observations over an observation period that approximates the expected life of the options. The risk-free rate is based on the U.S. Treasury yield curve rate in effect at the time of grant for periods similar to the expected option life. The estimated forfeiture rate included in the option valuation is based on our past history of forfeitures. Due to the limited amount of forfeitures in the past, the Company’s estimated forfeiture rate has been zero. | |||||||||
Management estimates are necessary in determining compensation expense for stock options with performance-based vesting criteria. Compensation expense for this type of stock-based award is recognized over the period from the date the performance conditions are determined to be probable of occurring through the implicit service period, which is the date the applicable conditions are expected to be met. If the performance conditions are not considered probable of being achieved, 0 expense is recognized until such time as the performance conditions are considered probable of being met, if ever. If the award is forfeited because the performance condition is not satisfied, previously recognized compensation cost is reversed. Management evaluates performance conditions on a quarterly basis. | |||||||||
Income Tax, Policy [Policy Text Block] | ' | ||||||||
Income Taxes: | |||||||||
The Company records deferred taxes in accordance with ASC 740, “Accounting for Income Taxes”. This ASC requires recognition of deferred tax assets and liabilities for temporary differences between tax basis of assets and liabilities and the amounts at which they are carried in the financial statements, based upon the enacted rates in effect for the year in which the differences are expected to reverse. The Company establishes a valuation allowance when necessary to reduce deferred tax assets to the amount expected to be realized. The Company periodically assesses the value of its deferred tax asset and determines the necessity for a valuation allowance. | |||||||||
The Company had historically analyzed its deferred tax asset on a quarterly basis and adjusted the deferred tax valuation allowance based on its rolling five-year projection of estimated taxable income, taking into consideration any limitations that may exist on its use of its net operating loss carryforwards. During the fourth quarter of 2013, the Company evaluated the realizability of its deferred tax asset and the need for a valuation allowance based upon the Company’s history of generating taxable income, analysis of expected future taxable income, as well as other factors deemed appropriate. As a result, management determined that the entire deferred tax asset is expected to be realized and accordingly has not provided a valuation allowance to its deferred tax asset on its domestic net operating losses. | |||||||||
Under ASC 740, the Company must recognize and disclose the tax benefit from an uncertain position only if it is more-likely-than-not the tax position will be sustained on examination by the taxing authority, based on the technical merits of the position. The tax benefits recognized and disclosed in the financial statements attributable to such position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon the ultimate resolution of the position. | |||||||||
The Company has analyzed its filing positions in all of the federal and state jurisdictions where it is required to file income tax returns. As of December 31, 2013 and 2012, the Company has identified its federal tax return and its state tax return in New Jersey as “major” tax jurisdictions, as defined, in which it is required to file income tax returns. Based on the evaluations noted above, the Company has concluded that there are 0 significant uncertain tax positions requiring recognition or disclosure in its consolidated financial statements. | |||||||||
Based on a review of tax positions for all open years and contingencies as set out in the Company’s notes to the consolidated financial statements, 0 reserves for uncertain income tax positions have been recorded pursuant to ASC 740 during the years ended December 31, 2013 and 2012, and the Company does not anticipate that it is reasonably possible that any material increase or decrease in its unrecognized tax benefits will occur within twelve months. | |||||||||
Earnings Per Share, Policy [Policy Text Block] | ' | ||||||||
Income Per Common Share: | |||||||||
Basic income per share is calculated by dividing income available to common shareholders by the weighted average number of shares of common stock outstanding during the period. Diluted income per share is calculated by dividing income available to common shareholders by the weighted average number of common shares outstanding for the period and, when dilutive, potential shares from stock options and warrants to purchase common stock, using the treasury stock method. In accordance with ASC 260, “Earnings Per Share”, the following table reconciles basic shares outstanding to fully diluted shares outstanding. | |||||||||
Years Ended December 31, | |||||||||
2013 | 2012 | ||||||||
Weighted average number of common shares outstanding — Basic | 23,935,486 | 24,258,853 | |||||||
Potentially dilutive stock options | 598,676 | 373,902 | |||||||
Weighted average number of common and equivalent shares outstanding-Diluted | 24,534,162 | 24,632,755 | |||||||
Common stock options are included in the diluted income (loss) per share calculation only when option exercise prices are lower than the average market price of the common shares for the period presented. The weighted average number of common stock options not included in diluted income (loss) per share, because the effects are anti-dilutive, was 2,481,748 and 1,904,792 for 2013 and 2012, respectively. | |||||||||
Subsequent Events, Policy [Policy Text Block] | ' | ||||||||
Subsequent events: | |||||||||
The Company has evaluated subsequent events and, except as described in Note 10, the Company has determined that there were no subsequent events or transactions requiring recognition or disclosure in the consolidated financial statements. | |||||||||
New Accounting Pronouncements, Policy [Policy Text Block] | ' | ||||||||
Recent Accounting Pronouncements Affecting the Company: | |||||||||
In February 2013, the FASB issued ASU No. 2013-02, “Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income.” Under ASU 2013-02, an entity is required to provide information about the amounts reclassified out of Accumulated Other Comprehensive Income (“AOCI”) by component. In addition, an entity is required to present, either on the face of the financial statements or in the notes, significant amounts reclassified out of AOCI by the respective line items of net income, but only if the amount reclassified is required to be reclassified in its entirety in the same reporting period. For amounts that are not required to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures that provide additional details about those amounts. ASU 2013-02 does not change the current requirements for reporting net income or other comprehensive income in the financial statements. ASU 2013-02 was effective for the Company beginning January 1, 2013. The adoption of this ASU did not have a material impact on its consolidated financial statements. | |||||||||
Management does not believe there are any other recently issued, but not yet effective accounting pronouncements, if adopted, that would have a material effect on the accompanying consolidated financial statements. | |||||||||
Reclassification, Policy [Policy Text Block] | ' | ||||||||
Reclassifications: | |||||||||
Certain information from the prior year’s presentation has been reclassified to conform to the current year’s reporting presentation. |
DESCRIPTION_OF_COMPANY_AND_SUM1
DESCRIPTION OF COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Accounting Policies [Abstract] | ' | ||||||||
Schedule of Inventory, Current [Table Text Block] | 'Inventories consist of: | ||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Raw materials | $ | 5,028,743 | $ | 5,186,555 | |||||
Work-in-process | 470,983 | 390,188 | |||||||
Finished goods | 2,669,550 | 2,712,892 | |||||||
$ | 8,169,276 | $ | 8,289,635 | ||||||
Property Plant and Equipment Estimated Useful Lives [Table Text Block] | 'Depreciation and amortization are provided on a straight-line basis over the following useful lives: | ||||||||
Minimum | Maximum | ||||||||
Machinery and equipment | 5 years | 10 years | |||||||
Furniture and fixtures | 5 years | 10 years | |||||||
Transportation equipment | 3 years | 5 years | |||||||
Schedule of Weighted Average Number of Shares [Table Text Block] | 'The following table reconciles basic shares outstanding to fully diluted shares outstanding. | ||||||||
Years Ended December 31, | |||||||||
2013 | 2012 | ||||||||
Weighted average number of common shares outstanding — Basic | 23,935,486 | 24,258,853 | |||||||
Potentially dilutive stock options | 598,676 | 373,902 | |||||||
Weighted average number of common and equivalent shares outstanding-Diluted | 24,534,162 | 24,632,755 |
PROPERTY_PLANT_AND_EQUIPMENT_T
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Property, Plant and Equipment [Table Text Block] | 'Property, plant and equipment, consists of the following: | ||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Machinery and equipment | $ | 4,656,346 | $ | 4,031,389 | |||||
Furniture and fixtures | 110,444 | 108,431 | |||||||
Transportation equipment | 157,677 | 141,190 | |||||||
Leasehold improvements | 984,105 | 1,095,617 | |||||||
5,908,572 | 5,376,627 | ||||||||
Less: accumulated depreciation | 4,299,145 | 4,109,935 | |||||||
$ | 1,609,427 | $ | 1,266,692 |
OTHER_ASSETS_Tables
OTHER ASSETS (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Disclosure Text Block Supplement [Abstract] | ' | ||||||||
Schedule of Other Assets [Table Text Block] | 'Other assets consist of the following: | ||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Product demo assets | $ | 653,436 | $ | 643,399 | |||||
Security deposit | 50,000 | 50,000 | |||||||
Miscellaneous | 8,766 | 3,655 | |||||||
Total | $ | 712,202 | $ | 697,054 |
ACCRUED_EXPENSES_AND_OTHER_CUR1
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Disclosure Text Block Supplement [Abstract] | ' | ||||||||
Schedule of Accrued Liabilities [Table Text Block] | 'Accrued expenses and other current liabilities consist of the following: | ||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Payroll and related benefits | $ | 960,559 | $ | 803,134 | |||||
Commissions | 152,427 | 80,942 | |||||||
Goods received not invoiced | 117,907 | 151,618 | |||||||
Professional fees | 100,242 | 119,283 | |||||||
Sales and use tax | 105,378 | 76,434 | |||||||
Warranty reserve | — | 75,000 | |||||||
Accrued disposition costs | 14,142 | 63,186 | |||||||
Other | 73,276 | 57,191 | |||||||
Total | $ | 1,523,931 | $ | 1,426,788 |
SHAREHOLDERS_EQUITY_Tables
SHAREHOLDERS' EQUITY (Tables) | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||
SHAREHOLDERS' EQUITY (Tables) [Line Items] | ' | ||||||||||||||||||
Schedule of Restricted Stock Awards Granted [Table Text Block] | ' | ||||||||||||||||||
Year ended December 31, 2012 | Number of | Price per | |||||||||||||||||
Shares | |||||||||||||||||||
Individuals | Granted | Granted Share | Vesting Date | ||||||||||||||||
Chief Executive Officer | 50,000 | $ | 1.15 | 13-Jun-12 | (vested upon grant) | ||||||||||||||
26,957 | $ | 1.15 | 20-Mar-13 | ||||||||||||||||
V.P. of Sales and Marketing | 21,739 | $ | 1.15 | 20-Mar-13 | |||||||||||||||
Board of Directors | 80,000 | $ | 1.15 | 13-Jun-12 | (vested upon grant) | ||||||||||||||
80,000 | $ | 1.15 | 13-Jun-13 | ||||||||||||||||
258,696 | |||||||||||||||||||
Schedule of Nonvested Restricted Stock Units Activity [Table Text Block] | 'A summary of the status of the Company’s non-vested restricted common stock, as granted under the Company’s approved stock compensation plan, as of December 31, 2013 and 2012, and changes during the years ended December 31, 2013 and 2012 are presented below: | ||||||||||||||||||
Non-vested Shares | Number of Shares | Weighted Average | |||||||||||||||||
Grant Date | |||||||||||||||||||
Fair Value | |||||||||||||||||||
Non-vested at January 1, 2012 | 90,000 | $ | 0.95 | ||||||||||||||||
Forfeited | (90,000 | ) | $ | 0.95 | |||||||||||||||
Granted | 258,696 | $ | 1.15 | ||||||||||||||||
Vested | (130,000 | ) | $ | 1.15 | |||||||||||||||
Non-vested at December 31, 2012 | 128,696 | $ | 1.15 | ||||||||||||||||
Forfeited | — | — | |||||||||||||||||
Granted | 220,000 | $ | 1.63 | ||||||||||||||||
Vested | (128,696 | ) | $ | 1.15 | |||||||||||||||
Non-vested at December 31, 2013 | 220,000 | $ | 1.63 | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable [Table Text Block] | 'The options outstanding and exercisable as of December 31, 2013 are summarized as follows: | ||||||||||||||||||
Range of | Weighted average | Options | Options | Weighted average | |||||||||||||||
exercise prices | exercise price | Outstanding | Exercisable | remaining life | |||||||||||||||
$0.75 - $1.42 | $0.93 | 1,300,000 | 1,300,000 | 6.1 years | |||||||||||||||
$1.69 - $2.25 | $1.77 | 950,000 | — | 9.7 years | |||||||||||||||
$2.28 - $3.02 | $2.65 | 787,000 | 787,000 | 1.8 years | |||||||||||||||
3,037,000 | 2,087,000 | ||||||||||||||||||
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan [Table Text Block] | 'The following summarizes the components of stock-based compensation expense by equity type for the years ended December 31: | ||||||||||||||||||
2013 | 2012 | ||||||||||||||||||
Performance-Based Stock Options | $ | 590,794 | $ | 196,932 | |||||||||||||||
Restricted Common Stock | 155,268 | 112,432 | |||||||||||||||||
Total Share-Based Compensation Expense | $ | 746,062 | $ | 309,364 | |||||||||||||||
Performance Based Restricted Common Stock Awards [Member] | ' | ||||||||||||||||||
SHAREHOLDERS' EQUITY (Tables) [Line Items] | ' | ||||||||||||||||||
Schedule of Restricted Stock Awards Granted [Table Text Block] | 'The following tables summarize the restricted common stock awards granted to certain directors, officers and employees of the Company during the years ended December 31, 2013 and 2012 under the 2012 Plan: | ||||||||||||||||||
Year ended December 31, 2013 | Number of Shares | Price per | |||||||||||||||||
Individuals | Granted | Granted Share | Vesting Date | ||||||||||||||||
Chief Executive Officer | 42,000 | $ | 1.77 | Performance based | |||||||||||||||
Chief Financial Officer | 11,000 | $ | 1.77 | Performance based | |||||||||||||||
V.P. of Sales and Marketing | 26,000 | $ | 1.77 | Performance based | |||||||||||||||
Various Other Employees | 21,000 | $ | 1.77 | Performance based | |||||||||||||||
Board of Directors | 120,000 | $ | 1.51 | Next Annual Meeting | (June 2014) | ||||||||||||||
220,000 | |||||||||||||||||||
Performance Based Stock Options [Member] | ' | ||||||||||||||||||
SHAREHOLDERS' EQUITY (Tables) [Line Items] | ' | ||||||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | 'A summary of performance-based stock option activity, and related information for the years ended December 31 2013 and 2012 follows: | ||||||||||||||||||
Options | Weighted Average | ||||||||||||||||||
Exercise Price | |||||||||||||||||||
Non-vested, January 1, 2012 | 1,340,000 | $ | 0.92 | ||||||||||||||||
Granted | — | — | |||||||||||||||||
Exercised | — | — | |||||||||||||||||
Forfeited | — | — | |||||||||||||||||
Canceled/Expired | (40,000 | ) | $ | 0.78 | |||||||||||||||
Non-vested, December 31, 2012 | 1,300,000 | $ | 0.93 | ||||||||||||||||
Granted | 950,000 | $ | 1.77 | ||||||||||||||||
Vested | (1,300,000 | ) | $ | 0.93 | |||||||||||||||
Exercised | — | — | |||||||||||||||||
Forfeited | — | — | |||||||||||||||||
Canceled/Expired | — | — | |||||||||||||||||
Non-vested, December 31, 2013 | 950,000 | $ | 1.77 | ||||||||||||||||
Options exercisable: | |||||||||||||||||||
31-Dec-12 | — | — | |||||||||||||||||
31-Dec-13 | 1,300,000 | $ | 0.93 | ||||||||||||||||
Service Based Stock Options [Member] | ' | ||||||||||||||||||
SHAREHOLDERS' EQUITY (Tables) [Line Items] | ' | ||||||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | 'A summary of service-based stock option activity, and related information for the years ended December 31, follows: | ||||||||||||||||||
Options | Weighted Average | ||||||||||||||||||
Exercise Price | |||||||||||||||||||
Outstanding, December 31, 2011 | 1,008,667 | $ | 2.61 | ||||||||||||||||
Granted | — | — | |||||||||||||||||
Exercised | — | — | |||||||||||||||||
Forfeited | — | — | |||||||||||||||||
Canceled/Expired | (146,667 | ) | $ | 2.56 | |||||||||||||||
Outstanding, December 31, 2012 | 862,000 | $ | 2.61 | ||||||||||||||||
Granted | — | — | |||||||||||||||||
Exercised | — | — | |||||||||||||||||
Forfeited | — | — | |||||||||||||||||
Canceled/Expired | (75,000 | ) | $ | 2.26 | |||||||||||||||
Outstanding, December 31, 2013 | 787,000 | $ | 2.65 | ||||||||||||||||
Options exercisable: | |||||||||||||||||||
31-Dec-12 | 862,000 | $ | 2.61 | ||||||||||||||||
31-Dec-13 | 787,000 | $ | 2.65 |
SEGMENT_AND_RELATED_INFORMATIO1
SEGMENT AND RELATED INFORMATION (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Segment Reporting [Abstract] | ' | ||||||||
Schedule Of Segment Reporting Financial Information Including Total Assets By Segment [Table Text Block] | 'Financial information by reportable segment as of and for the years ended December 31, 2013 and 2012 is presented below: | ||||||||
2013 | 2012 | ||||||||
Net sales by segment: | |||||||||
Test and measurement | $ | 11,793,524 | $ | 15,260,449 | |||||
Network solutions | 22,031,549 | 14,334,095 | |||||||
Total consolidated net sales and net sales of reportable segments | $ | 33,825,073 | $ | 29,594,544 | |||||
Segment income: | |||||||||
Test and measurement | $ | 1,154,067 | $ | 2,592,323 | |||||
Network solutions | 5,558,019 | 3,498,076 | |||||||
Income from reportable segments | 6,712,086 | 6,090,399 | |||||||
Other unallocated amounts: | |||||||||
Corporate expenses | (4,516,323 | ) | (3,332,781 | ) | |||||
Interest and other income - net | 370,778 | 23,420 | |||||||
Consolidated income from operations before income tax (benefit) | $ | 2,566,541 | $ | 2,781,038 | |||||
Depreciation by segment: | |||||||||
Test and measurement | $ | 217,429 | $ | 272,330 | |||||
Network solutions | 127,148 | 79,026 | |||||||
Total depreciation for reportable segments | $ | 344,577 | $ | 351,356 | |||||
Capital expenditures by segment (net of equipment lease payable of $240,206): | |||||||||
Test and measurement | $ | 327,525 | $ | 259,844 | |||||
Network solutions | 176,875 | 188,056 | |||||||
Total consolidated capital expenditures by reportable segment | $ | 504,400 | $ | 447,900 | |||||
Total assets by segment: | |||||||||
Test and measurement | $ | 8,270,614 | $ | 12,104,700 | |||||
Network solutions | 9,649,681 | 8,864,541 | |||||||
Total assets for reportable segments | 17,920,295 | 20,969,241 | |||||||
Corporate assets, principally cash and cash equivalents and deferred and current taxes | 25,516,736 | 20,260,383 | |||||||
Total consolidated assets | $ | 43,437,031 | $ | 41,229,624 | |||||
Schedule Of Net Consolidated Sales By Region [Table Text Block] | 'Net consolidated sales from operations by region were as follows: | ||||||||
For the Year | |||||||||
Ended December 31, | |||||||||
2013 | 2012 | ||||||||
Americas | $ | 26,760,912 | $ | 22,511,566 | |||||
Europe, Middle East, Africa (EMEA) | 4,434,037 | 4,718,669 | |||||||
Asia Pacific (APAC) | 2,630,124 | 2,364,309 | |||||||
$ | 33,825,073 | $ | 29,594,544 |
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | 'The components of income tax expense (benefit) related to income from operations are as follows: | ||||||||
Year Ended December 31, | |||||||||
2013 | 2012 | ||||||||
Current: | |||||||||
Federal | $ | 42,036 | $ | 45,117 | |||||
State | 388,196 | 330,714 | |||||||
Deferred: | |||||||||
Federal | (1,439,614 | ) | (650,755 | ) | |||||
State | (266,277 | ) | (114,839 | ) | |||||
$ | (1,275,659 | ) | $ | (389,763 | ) | ||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | 'The following is a reconciliation of the maximum statutory federal tax rate to the Company’s effective tax relative to operations: | ||||||||
Year Ended December 31, | |||||||||
2013 | 2012 | ||||||||
% of | % of | ||||||||
Pre Tax | Pre Tax | ||||||||
Earnings | Earnings | ||||||||
Statutory federal income tax rate | 34 | % | 34 | % | |||||
Change in valuation allowance on deferred taxes | (94.4 | ) | (55.9 | ) | |||||
State income tax net of federal tax benefit | 16.3 | 13.4 | |||||||
Permanent differences | (4.9 | ) | (6.3 | ) | |||||
Other | (0.7 | ) | 0.8 | ||||||
(49.7 | )% | (14.0 | )% | ||||||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | 'The components of deferred income taxes are as follows: | ||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Deferred tax assets: | |||||||||
Uniform capitalization of inventory costs for tax purposes | $ | 225,022 | $ | 221,155 | |||||
Reserves on inventories | 556,368 | 499,001 | |||||||
Allowances for doubtful accounts | 54,297 | 22,933 | |||||||
Accruals | 234,008 | 195,149 | |||||||
Tax effect of goodwill | (435,450 | ) | (321,636 | ) | |||||
Book depreciation over tax | (252,204 | ) | (49,618 | ) | |||||
Net operating loss carryforward | 15,547,580 | 16,556,713 | |||||||
15,929,621 | 17,123,697 | ||||||||
Valuation allowance for deferred tax assets | (7,012,134 | ) | (9,912,102 | ) | |||||
$ | 8,917,487 | $ | 7,211,595 |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | 'The future minimum lease payments are shown below: | ||||
2014 | $ | 342,750 | |||
2015 | 85,668 | ||||
$ | 428,438 | ||||
Operating Leases of Lessee Disclosure [Table Text Block] | 'Future payments relative to continuing operations consist of the following at December 31, 2013: | ||||
2014 | $ | 63,775 | |||
2015 | 63,775 | ||||
2016 | 63,775 | ||||
2017 | 63,775 | ||||
2018 | 58,461 | ||||
$ | 313,561 |
SELECTED_QUARTERLY_FINANCIAL_D1
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||
Schedule of Quarterly Financial Information [Table Text Block] | 'The following is a summary of selected quarterly financial data from operations (in thousands, except per share amounts). | ||||||||||||||||
2013 | Quarter | ||||||||||||||||
1st | 2nd | 3rd | 4th | ||||||||||||||
Net sales | $ | 6,797 | $ | 8,705 | $ | 8,791 | $ | 9,532 | |||||||||
Gross profit | 3,320 | 4,080 | 4,235 | 4,493 | |||||||||||||
Operating income | 244 | 717 | 572 | 663 | |||||||||||||
Net income from operations | 346 | 1,058 | 1,090 | 1,348 | |||||||||||||
Diluted net income per share from operations | $ | 0.01 | $ | 0.04 | $ | 0.04 | $ | 0.05 | |||||||||
2012 | Quarter | ||||||||||||||||
1st | 2nd | 3rd | 4th | ||||||||||||||
Net sales | $ | 6,902 | $ | 7,092 | $ | 7,385 | $ | 8,216 | |||||||||
Gross profit | 3,355 | 3,590 | 3,700 | 4,132 | |||||||||||||
Operating income | 551 | 609 | 773 | 824 | |||||||||||||
Net income from operations | 656 | 655 | 855 | 1,005 | |||||||||||||
Diluted net income per share from operations | $ | 0.03 | $ | 0.03 | $ | 0.03 | $ | 0.04 |
DESCRIPTION_OF_COMPANY_AND_SUM2
DESCRIPTION OF COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
DESCRIPTION OF COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ' | ' |
Number of Reportable Segments | 2 | ' |
Number of Financial Institutions in Which Company Maintains Cash Investments | 2 | ' |
Concentration Risk Number of Customer | 0 | 0 |
Mortgage Payable Fair Value | ' | $2,690,786 |
Secured Debt | ' | 2,629,215 |
Other Inventory, Net of Reserves | 765,413 | 621,996 |
Goodwill | 1,351,392 | 1,351,392 |
Discount to Customers | 0 | ' |
Post Shipment Obligation Acceptances Provisions | 0 | ' |
Research and Development Expense | 2,645,070 | 2,524,030 |
Advertising Expense | 302,269 | 326,431 |
Share Based Compensation Performance Condition Not Achieved | 0 | ' |
Deferred Tax Assets Valuation Allowances Projection Period | '5 years | ' |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | ' | $0 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in Shares) | 2,481,748 | 1,904,792 |
Customer One [Member] | ' | ' |
DESCRIPTION OF COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ' | ' |
Concentration Risk, Percentage | 11.00% | 11.00% |
DESCRIPTION_OF_COMPANY_AND_SUM3
DESCRIPTION OF COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of inventory current (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of inventory current [Abstract] | ' | ' |
Raw materials | $5,028,743 | $5,186,555 |
Work-in-process | 470,983 | 390,188 |
Finished goods | 2,669,550 | 2,712,892 |
$8,169,276 | $8,289,635 |
DESCRIPTION_OF_COMPANY_AND_SUM4
DESCRIPTION OF COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Property, plant and equipment, useful lives | 12 Months Ended |
Dec. 31, 2013 | |
Machinery and Equipment [Member] | Minimum [Member] | ' |
DESCRIPTION OF COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Property, plant and equipment, useful lives [Line Items] | ' |
Useful Life | '5 years |
Machinery and Equipment [Member] | Maximum [Member] | ' |
DESCRIPTION OF COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Property, plant and equipment, useful lives [Line Items] | ' |
Useful Life | '10 years |
Furniture and Fixtures [Member] | Minimum [Member] | ' |
DESCRIPTION OF COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Property, plant and equipment, useful lives [Line Items] | ' |
Useful Life | '5 years |
Furniture and Fixtures [Member] | Maximum [Member] | ' |
DESCRIPTION OF COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Property, plant and equipment, useful lives [Line Items] | ' |
Useful Life | '10 years |
Transportation Equipment [Member] | Minimum [Member] | ' |
DESCRIPTION OF COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Property, plant and equipment, useful lives [Line Items] | ' |
Useful Life | '3 years |
Transportation Equipment [Member] | Maximum [Member] | ' |
DESCRIPTION OF COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Property, plant and equipment, useful lives [Line Items] | ' |
Useful Life | '5 years |
DESCRIPTION_OF_COMPANY_AND_SUM5
DESCRIPTION OF COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of weighted average number of shares | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Schedule of weighted average number of shares [Abstract] | ' | ' |
Weighted average number of common shares outstanding b Basic | 23,935,486 | 24,258,853 |
Potentially dilutive stock options | 598,676 | 373,902 |
Weighted average number of common and equivalent shares outstanding-Diluted | 24,534,162 | 24,632,755 |
PROPERTY_PLANT_AND_EQUIPMENT_D
PROPERTY, PLANT AND EQUIPMENT (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Property, Plant and Equipment [Abstract] | ' | ' |
Depreciation | $344,577 | $351,356 |
PROPERTY_PLANT_AND_EQUIPMENT_D1
PROPERTY, PLANT AND EQUIPMENT (Details) - Property, Plant and Equipment (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment | $5,908,572 | $5,376,627 |
Less: accumulated depreciation | 4,299,145 | 4,109,935 |
1,609,427 | 1,266,692 | |
Machinery and Equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment | 4,656,346 | 4,031,389 |
Furniture and Fixtures [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment | 110,444 | 108,431 |
Transportation Equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment | 157,677 | 141,190 |
Leasehold Improvements [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment | $984,105 | $1,095,617 |
OTHER_ASSETS_Details_Other_ass
OTHER ASSETS (Details) - Other assets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Other assets [Abstract] | ' | ' |
Product demo assets | $653,436 | $643,399 |
Security deposit | 50,000 | 50,000 |
Miscellaneous | 8,766 | 3,655 |
Total | $712,202 | $697,054 |
ACCRUED_EXPENSES_AND_OTHER_CUR2
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) - Accrued Expenses and Other Current Liabilities (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Accrued Expenses and Other Current Liabilities [Abstract] | ' | ' |
Payroll and related benefits | $960,559 | $803,134 |
Commissions | 152,427 | 80,942 |
Goods received not invoiced | 117,907 | 151,618 |
Professional fees | 100,242 | 119,283 |
Sales and use tax | 105,378 | 76,434 |
Warranty reserve | ' | 75,000 |
Accrued disposition costs | 14,142 | 63,186 |
Other | 73,276 | 57,191 |
Total | $1,523,931 | $1,426,788 |
SALE_OF_BUILDING_Details
SALE OF BUILDING (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
SALE OF BUILDING (Details) [Line Items] | ' | ' |
Escrow Deposit | $350,000 | ' |
Required Monthly Payments For Mortgage Payable | 23,750 | ' |
Debt Instrument, Interest Rate, Stated Percentage | 7.45% | ' |
Gain (Loss) on Disposition of Property Plant Equipment | 188,403 | ' |
Assets Held-for-sale, Current | ' | 3,179,002 |
Rental Income, Nonoperating | 225,161 | 385,992 |
Interest Expense, Debt | 115,103 | 201,842 |
Depreciation | 344,577 | 351,356 |
Building Depreciation [Member] | ' | ' |
SALE OF BUILDING (Details) [Line Items] | ' | ' |
Depreciation | $0 | $66,698 |
SHAREHOLDERS_EQUITY_Details
SHAREHOLDERS' EQUITY (Details) (USD $) | 1 Months Ended | 12 Months Ended | ||
Aug. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | |
SHAREHOLDERS' EQUITY (Details) [Line Items] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share Based Payment Award Additional Grants to be Made (in Shares) | ' | 0 | ' | ' |
Stock or Units Available for Distributions (in Shares) | ' | 2,000,000 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant (in Shares) | ' | ' | 746,304 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | ' | ' | '10 years | ' |
Share Based Compensation Arrangement by Share Based Payment Award Maximum Period Consider for Option Fully Exercisable | ' | ' | '5 years | ' |
Payments for Repurchase of Common Stock | ' | ' | $36,279 | $26,834 |
Share Price (in Dollars per share) | ' | ' | $1.49 | $1.15 |
Share-based Compensation | ' | ' | 746,062 | 309,364 |
Adjustments to Additional Paid in Capital, Share-based Compensation, Restricted Stock Unit or Restricted Stock Award, Requisite Service Period Recognition | ' | ' | ' | 267,600 |
Stock Based Compensation to be Amortized Next Fiscal Year | ' | ' | ' | 90,600 |
Stock Based Compensation to be Amortized Vesting Period | ' | ' | 'June 2014 | ' |
Stock Based Compensation to be Amortized Depending on Certain Performance Conditions | ' | ' | 177,000 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares) | 950,000 | ' | ' | ' |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price (in Dollars per share) | $1.77 | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award Accelerated Compensation Cost | ' | ' | 393,862 | ' |
Share Based Compensation Arrangement by Share Based Payment Award Accelerated Compensation Cost Per Share Basic (in Dollars per share) | ' | ' | $0.02 | ' |
Share Based Compensation Arrangement by Share Based Payment Award Accelerated Compensation Cost Per Share Diluted (in Dollars per share) | ' | ' | $0.02 | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | ' | ' | 867,683 | ' |
Performance Shares [Member] | ' | ' | ' | ' |
SHAREHOLDERS' EQUITY (Details) [Line Items] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | ' | ' | '10 years | ' |
Restricted Stock [Member] | Chief Executive Officer [Member] | ' | ' | ' | ' |
SHAREHOLDERS' EQUITY (Details) [Line Items] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in Shares) | ' | ' | ' | 50,000 |
Restricted Stock [Member] | V P Of Sales And Marketing [Member] | ' | ' | ' | ' |
SHAREHOLDERS' EQUITY (Details) [Line Items] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in Shares) | ' | ' | ' | 21,739 |
Restricted Stock [Member] | ' | ' | ' | ' |
SHAREHOLDERS' EQUITY (Details) [Line Items] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in Shares) | ' | ' | 220,000 | 258,696 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value (in Dollars per share) | ' | ' | $1.63 | $1.15 |
Share-based Compensation | ' | ' | 155,268 | 112,432 |
Performance Based Stock Options [Member] | ' | ' | ' | ' |
SHAREHOLDERS' EQUITY (Details) [Line Items] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value (in Dollars per share) | ' | ' | $0.91 | ' |
Share-based Compensation | ' | ' | 590,794 | 196,932 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares) | ' | ' | 950,000 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | ' | ' | 1,896,250 | 416,150 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Aggregate Intrinsic Value | ' | ' | 1,563,750 | 0 |
Share Based Compensation Arrangement by Share Based Payment Award Equity Instruments Other Than Options Grants in Period Aggregate Fair Value | ' | ' | $867,683 | ' |
Various Other Employees [Member] | ' | ' | ' | ' |
SHAREHOLDERS' EQUITY (Details) [Line Items] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in Shares) | 100,000 | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value (in Dollars per share) | $1.77 | ' | ' | ' |
Director [Member] | ' | ' | ' | ' |
SHAREHOLDERS' EQUITY (Details) [Line Items] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in Shares) | ' | 120,000 | ' | ' |
Share Based Compensation Arrangement by Share Based Payment Award Equity Instruments Other Than Options Grants in Period to Each Director (in Shares) | ' | 20,000 | ' | ' |
Share Based Compensation Arrangement by Share Based Payment Award Equity Instruments Other Than Options Grants in Period Exercise Price (in Dollars per share) | ' | 1.51 | ' | ' |
Chief Executive Officer [Member] | ' | ' | ' | ' |
SHAREHOLDERS' EQUITY (Details) [Line Items] | ' | ' | ' | ' |
Amount of Repurchased Common Stock (in Shares) | ' | ' | 13,479 | 23,334 |
V P Of Sales And Marketing [Member] | ' | ' | ' | ' |
SHAREHOLDERS' EQUITY (Details) [Line Items] | ' | ' | ' | ' |
Amount of Repurchased Common Stock (in Shares) | ' | ' | 10,870 | ' |
SHAREHOLDERS_EQUITY_Details_Sc
SHAREHOLDERS' EQUITY (Details) - Schedule of Restricted Common Stock Awards Granted (USD $) | 12 Months Ended | 1 Months Ended | ||||||||||
Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Aug. 31, 2013 | |
Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Various Other Employees [Member] | |
Performance Based Restricted Common Stock Awards [Member] | Performance Based Restricted Common Stock Awards [Member] | Performance Based Restricted Common Stock Awards [Member] | Performance Based Restricted Common Stock Awards [Member] | Performance Based Restricted Common Stock Awards [Member] | Performance Based Restricted Common Stock Awards [Member] | Chief Executive Officer [Member] | V P Of Sales And Marketing [Member] | Board Of Directors [Member] | ||||
Chief Executive Officer [Member] | Chief Financial Officer [Member] | V P Of Sales And Marketing [Member] | Various Other Employees [Member] | Board Of Directors [Member] | ||||||||
SHAREHOLDERS' EQUITY (Details) - Schedule of Restricted Common Stock Awards Granted [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Shares Granted | 42,000 | 11,000 | 26,000 | 21,000 | 120,000 | 220,000 | 50,000 | 21,739 | 80,000 | 220,000 | 258,696 | 100,000 |
Price per Granted Share (in Dollars per share) | $1.77 | $1.77 | $1.77 | $1.77 | $1.51 | ' | $1.15 | $1.15 | $1.15 | ' | ' | ' |
Vesting Date | 'Performance based | 'Performance based | 'Performance based | 'Performance based | 'Next Annual Meeting | ' | ' | ' | ' | ' | ' | ' |
SHAREHOLDERS_EQUITY_Details_Sc1
SHAREHOLDERS' EQUITY (Details) - Schedule of Restricted Common Stock Awards Granted (Restricted Stock [Member], USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
SHAREHOLDERS' EQUITY (Details) - Schedule of Restricted Common Stock Awards Granted [Line Items] | ' | ' |
Number of Shares Granted | 220,000 | 258,696 |
Chief Executive Officer [Member] | ' | ' |
SHAREHOLDERS' EQUITY (Details) - Schedule of Restricted Common Stock Awards Granted [Line Items] | ' | ' |
Number of Shares Granted | ' | 50,000 |
Price per Granted Share (in Dollars per share) | ' | 1.15 |
Vesting Date | ' | 13-Jun-12 |
Chief Executive Officer Two [Member] | ' | ' |
SHAREHOLDERS' EQUITY (Details) - Schedule of Restricted Common Stock Awards Granted [Line Items] | ' | ' |
Number of Shares Granted | ' | 26,957 |
Price per Granted Share (in Dollars per share) | ' | 1.15 |
Vesting Date | ' | 20-Mar-13 |
V P Of Sales And Marketing [Member] | ' | ' |
SHAREHOLDERS' EQUITY (Details) - Schedule of Restricted Common Stock Awards Granted [Line Items] | ' | ' |
Number of Shares Granted | ' | 21,739 |
Price per Granted Share (in Dollars per share) | ' | 1.15 |
Vesting Date | ' | 20-Mar-13 |
Board Of Directors [Member] | ' | ' |
SHAREHOLDERS' EQUITY (Details) - Schedule of Restricted Common Stock Awards Granted [Line Items] | ' | ' |
Number of Shares Granted | ' | 80,000 |
Price per Granted Share (in Dollars per share) | ' | 1.15 |
Vesting Date | ' | 13-Jun-12 |
Board Of Directors Two [Member] | ' | ' |
SHAREHOLDERS' EQUITY (Details) - Schedule of Restricted Common Stock Awards Granted [Line Items] | ' | ' |
Number of Shares Granted | ' | 80,000 |
Price per Granted Share (in Dollars per share) | ' | 1.15 |
Vesting Date | ' | 13-Jun-13 |
SHAREHOLDERS_EQUITY_Details_Sc2
SHAREHOLDERS' EQUITY (Details) - Schedule of Non-vested Restricted Stock Activity (Restricted Stock [Member], USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Restricted Stock [Member] | ' | ' | ' |
SHAREHOLDERS' EQUITY (Details) - Schedule of Non-vested Restricted Stock Activity [Line Items] | ' | ' | ' |
Number of Shares, Non-vested | 220,000 | 128,696 | 90,000 |
Weighted Average Grant Date Fair Value, Non-vested | $1.63 | $1.15 | $0.95 |
Number of Shares, Forfeited | ' | -90,000 | ' |
Weighted Average Grant Date Fair Value, Forfeited | ' | $0.95 | ' |
Number of Shares, Granted | 220,000 | 258,696 | ' |
Weighted Average Grant Date Fair Value, Granted | $1.63 | $1.15 | ' |
Number of Shares, Vested | -128,696 | -130,000 | ' |
Weighted Average Grant Date Fair Value, Vested | $1.15 | $1.15 | ' |
SHAREHOLDERS_EQUITY_Details_Sc3
SHAREHOLDERS' EQUITY (Details) - Schedule of Performance-based Stock Option Activity, and Related Information (USD $) | 1 Months Ended | 12 Months Ended | |||
Aug. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 30, 2011 | |
Performance Based Stock Options [Member] | Performance Based Stock Options [Member] | Performance Based Stock Options [Member] | |||
SHAREHOLDERS' EQUITY (Details) - Schedule of Performance-based Stock Option Activity, and Related Information [Line Items] | ' | ' | ' | ' | ' |
Options, Non-vested | ' | ' | 1,300,000 | ' | 1,340,000 |
Weighted Average Exercise Price, Non-vested | ' | ' | $0.93 | ' | $0.92 |
Options, Granted | 950,000 | ' | 950,000 | ' | ' |
Weighted Average Exercise Price, Granted | ' | ' | $1.77 | ' | ' |
Vested | ' | ' | -1,300,000 | ' | ' |
Vested | ' | ' | $0.93 | ' | ' |
Options, Canceled/Expired | ' | ' | ' | -40,000 | ' |
Weighted Average Exercise Price, Canceled/Expired | ' | ' | ' | $0.78 | ' |
Option, Options exercisable | ' | 2,087,000 | 1,300,000 | ' | ' |
Weighted Average Exercise Price, Options exercisable | ' | ' | $0.93 | ' | ' |
Options, Non-vested | ' | ' | 950,000 | 1,300,000 | 1,340,000 |
Weighted Average Exercise Price, Non-vested | ' | ' | $1.77 | $0.93 | $0.92 |
SHAREHOLDERS_EQUITY_Details_Sc4
SHAREHOLDERS' EQUITY (Details) - Schedule of Service-based Stock Option Activity, and Related Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
SHAREHOLDERS' EQUITY (Details) - Schedule of Service-based Stock Option Activity, and Related Information [Line Items] | ' | ' | ' |
Options, Outstanding | 3,037,000 | ' | ' |
Options, Balance | 2,087,000 | ' | ' |
Service Based Stock Options [Member] | ' | ' | ' |
SHAREHOLDERS' EQUITY (Details) - Schedule of Service-based Stock Option Activity, and Related Information [Line Items] | ' | ' | ' |
Options, Outstanding | 787,000 | 862,000 | 1,008,667 |
Weighted Average Exercise Price, Outstanding | $2.65 | $2.61 | $2.61 |
Options, Canceled/Expired | -75,000 | -146,667 | ' |
Weighted Average Exercise Price, Canceled/Expired | $2.26 | $2.56 | ' |
Options, Balance | 787,000 | 862,000 | ' |
Weighted Average Exercise Price, Balance | $2.65 | $2.61 | ' |
SHAREHOLDERS_EQUITY_Details_Sc5
SHAREHOLDERS' EQUITY (Details) - Schedule of Stock Options Outstanding and Exercisable (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
SHAREHOLDERS' EQUITY (Details) - Schedule of Stock Options Outstanding and Exercisable [Line Items] | ' |
Options Outstanding | 3,037,000 |
Options Exercisable | 2,087,000 |
Exercise Price $0.75-$1.42 [Member] | ' |
SHAREHOLDERS' EQUITY (Details) - Schedule of Stock Options Outstanding and Exercisable [Line Items] | ' |
Weighted average exercise price (in Dollars per share) | $0.93 |
Options Outstanding | 1,300,000 |
Options Exercisable | 1,300,000 |
Weighted average remaining life | '6 years 36 days |
Exercise Price $1.69-$2.25 [Member] | ' |
SHAREHOLDERS' EQUITY (Details) - Schedule of Stock Options Outstanding and Exercisable [Line Items] | ' |
Weighted average exercise price (in Dollars per share) | $1.77 |
Options Outstanding | 950,000 |
Weighted average remaining life | '9 years 255 days |
Exercise Price $2.28-$3.02 [Member] | ' |
SHAREHOLDERS' EQUITY (Details) - Schedule of Stock Options Outstanding and Exercisable [Line Items] | ' |
Weighted average exercise price (in Dollars per share) | $2.65 |
Options Outstanding | 787,000 |
Options Exercisable | 787,000 |
Weighted average remaining life | '1 year 292 days |
SHAREHOLDERS_EQUITY_Details_Sc6
SHAREHOLDERS' EQUITY (Details) - Schedule of Share-based Compensation Expense, Components by Equity Type (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
SHAREHOLDERS' EQUITY (Details) - Schedule of Share-based Compensation Expense, Components by Equity Type [Line Items] | ' | ' |
Share Based Compensation | $746,062 | $309,364 |
Performance Shares [Member] | ' | ' |
SHAREHOLDERS' EQUITY (Details) - Schedule of Share-based Compensation Expense, Components by Equity Type [Line Items] | ' | ' |
Share Based Compensation | 590,794 | 196,932 |
Restricted Stock [Member] | ' | ' |
SHAREHOLDERS' EQUITY (Details) - Schedule of Share-based Compensation Expense, Components by Equity Type [Line Items] | ' | ' |
Share Based Compensation | $155,268 | $112,432 |
SEGMENT_AND_RELATED_INFORMATIO2
SEGMENT AND RELATED INFORMATION (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |
SEGMENT AND RELATED INFORMATION (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Reportable Segments | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' |
Number of Representative Related to Percentage of Consolidated Sales | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 |
Entity-Wide Revenue, Major Sales Representative, Percentage | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | 10.00% |
Revenue, Net (in Dollars) | $9,532,000 | $8,791,000 | $8,705,000 | $6,797,000 | $8,216,000 | $7,385,000 | $7,092,000 | $6,902,000 | ' | ' |
Number of Third Party Supplier Related to Percentage of Consolidated Inventory Purchased | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 |
Payments to Suppliers, Major Suppliers, Percentage | ' | ' | ' | ' | ' | ' | ' | ' | 11.00% | 8.00% |
United States [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
SEGMENT AND RELATED INFORMATION (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue, Net (in Dollars) | ' | ' | ' | ' | ' | ' | ' | ' | 25,152,929 | 20,930,669 |
Germany [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
SEGMENT AND RELATED INFORMATION (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue, Net (in Dollars) | ' | ' | ' | ' | ' | ' | ' | ' | 1,330,645 | 1,394,467 |
German Percentage of EMEA [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
SEGMENT AND RELATED INFORMATION (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue, Net Percentage | ' | ' | ' | ' | ' | ' | ' | ' | 30.00% | 30.00% |
China [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
SEGMENT AND RELATED INFORMATION (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue, Net (in Dollars) | ' | ' | ' | ' | ' | ' | ' | ' | 1,609,182 | 1,414,485 |
Chinese Percentage of APAC [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
SEGMENT AND RELATED INFORMATION (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue, Net Percentage | ' | ' | ' | ' | ' | ' | ' | ' | 61.00% | 60.00% |
SEGMENT_AND_RELATED_INFORMATIO3
SEGMENT AND RELATED INFORMATION (Details) - Schedule of financial information by reportable segment (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Net sales by segment: | ' | ' |
Net sales by segment | $33,825,073 | $29,594,544 |
Segment income: | ' | ' |
Segment income | 6,712,086 | 6,090,399 |
Other unallocated amounts: | ' | ' |
Corporate expenses | -4,516,323 | -3,332,781 |
Interest and other income - net | 370,778 | 23,420 |
Consolidated income from operations before income tax (benefit) | 2,566,541 | 2,781,038 |
Depreciation by segment: | ' | ' |
Depreciation by segment | 344,577 | 351,356 |
Capital expenditures by segment (net of equipment lease payable of $240,206): | ' | ' |
Capital expenditures by segment | 504,400 | 447,900 |
Total assets by segment: | ' | ' |
Total assets by segment | 17,920,295 | 20,969,241 |
Corporate assets, principally cash and cash equivalents and deferred and current taxes | 25,516,736 | 20,260,383 |
Total consolidated assets | 43,437,031 | 41,229,624 |
Test and Measurement [Member] | ' | ' |
Net sales by segment: | ' | ' |
Net sales by segment | 11,793,524 | 15,260,449 |
Segment income: | ' | ' |
Segment income | 1,154,067 | 2,592,323 |
Depreciation by segment: | ' | ' |
Depreciation by segment | 217,429 | 272,330 |
Capital expenditures by segment (net of equipment lease payable of $240,206): | ' | ' |
Capital expenditures by segment | 327,525 | 259,844 |
Total assets by segment: | ' | ' |
Total assets by segment | 8,270,614 | 12,104,700 |
Network Solutions [Member] | ' | ' |
Net sales by segment: | ' | ' |
Net sales by segment | 22,031,549 | 14,334,095 |
Segment income: | ' | ' |
Segment income | 5,558,019 | 3,498,076 |
Depreciation by segment: | ' | ' |
Depreciation by segment | 127,148 | 79,026 |
Capital expenditures by segment (net of equipment lease payable of $240,206): | ' | ' |
Capital expenditures by segment | 176,875 | 188,056 |
Total assets by segment: | ' | ' |
Total assets by segment | 9,649,681 | 8,864,541 |
Continuing Operations Only [Member] | ' | ' |
Capital expenditures by segment (net of equipment lease payable of $240,206): | ' | ' |
Capital expenditures by segment | $504,400 | $447,900 |
SEGMENT_AND_RELATED_INFORMATIO4
SEGMENT AND RELATED INFORMATION (Details) - Schedule of net consolidated sales from operations by region (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
SEGMENT AND RELATED INFORMATION (Details) - Schedule of net consolidated sales from operations by region [Line Items] | ' | ' |
Revenues | $33,825,073 | $29,594,544 |
Americas [Member] | ' | ' |
SEGMENT AND RELATED INFORMATION (Details) - Schedule of net consolidated sales from operations by region [Line Items] | ' | ' |
Revenues | 26,760,912 | 22,511,566 |
Europe, Middle East, Africa [Member] | ' | ' |
SEGMENT AND RELATED INFORMATION (Details) - Schedule of net consolidated sales from operations by region [Line Items] | ' | ' |
Revenues | 4,434,037 | 4,718,669 |
Asia Pacific [Member] | ' | ' |
SEGMENT AND RELATED INFORMATION (Details) - Schedule of net consolidated sales from operations by region [Line Items] | ' | ' |
Revenues | $2,630,124 | $2,364,309 |
RETIREMENT_PLAN_Details
RETIREMENT PLAN (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Compensation and Retirement Disclosure [Abstract] | ' | ' |
Pension Contributions | $353,463 | $320,276 |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
INCOME TAXES (Details) [Line Items] | ' |
Operating Loss Carryforwards Expiration Period | '2029 |
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration | $0 |
Domestic Tax Authority [Member] | ' |
INCOME TAXES (Details) [Line Items] | ' |
Operating Loss Carryforwards | 21,300,000 |
Foreign Tax Authority [Member] | ' |
INCOME TAXES (Details) [Line Items] | ' |
Operating Loss Carryforwards | 23,400,000 |
Operating Loss Carryforwards, Valuation Allowance | $7,012,134 |
Boonton [Member] | ' |
INCOME TAXES (Details) [Line Items] | ' |
Income Tax Examination Period Under Examination | '2009 through 2012 |
Microlab [Member] | ' |
INCOME TAXES (Details) [Line Items] | ' |
Income Tax Examination Period Under Examination | '2009 through 2012 |
INCOME_TAXES_Details_Schedule_
INCOME TAXES (Details) - Schedule of income tax expense (benefit) related to income from operations (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Current: | ' | ' |
Federal | $42,036 | $45,117 |
State | 388,196 | 330,714 |
Deferred: | ' | ' |
Federal | -1,439,614 | -650,755 |
State | -266,277 | -114,839 |
($1,275,659) | ($389,763) |
INCOME_TAXES_Details_Schedule_1
INCOME TAXES (Details) - Schedule of reconciliation of the maximum statutory federal tax rate to the company's effective tax relative to operations | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Schedule of reconciliation of the maximum statutory federal tax rate to the company's effective tax relative to operations [Abstract] | ' | ' |
Statutory federal income tax rate | 34.00% | 34.00% |
Change in valuation allowance on deferred taxes | -94.40% | -55.90% |
State income tax net of federal tax benefit | 16.30% | 13.40% |
Permanent differences | -4.90% | -6.30% |
Other | -0.70% | 0.80% |
-49.70% | -14.00% |
INCOME_TAXES_Details_Schedule_2
INCOME TAXES (Details) - Schedule of deferred tax assets and liabilities (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Deferred tax assets: | ' | ' |
Uniform capitalization of inventory costs for tax purposes | $225,022 | $221,155 |
Reserves on inventories | 556,368 | 499,001 |
Allowances for doubtful accounts | 54,297 | 22,933 |
Accruals | 234,008 | 195,149 |
Tax effect of goodwill | -435,450 | -321,636 |
Book depreciation over tax | -252,204 | -49,618 |
Net operating loss carryforward | 15,547,580 | 16,556,713 |
15,929,621 | 17,123,697 | |
Valuation allowance for deferred tax assets | -7,012,134 | -9,912,102 |
$8,917,487 | $7,211,595 |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
sqft | ||
Commitments and Contingencies Disclosure [Abstract] | ' | ' |
Warranties Period of Product | '1 year | ' |
Operating Leases Area (in Square Feet) | 45,700 | ' |
Lease Expiration Extended Date | 31-Mar-15 | ' |
Description of Lessor Leasing Arrangements, Operating Leases | 'The lease can be renewed at the Company's option for one five-year period at fair market value to be determined at term expiration. | ' |
Lease Renewal Option | 1 | ' |
LeaseRenewableTerm | '5 years | ' |
Minimum Monthly Rent Payment | $29,000 | ' |
Lease Expense Included In Continuing Operations | 463,160 | 466,461 |
Lease Expiration Year | '2018 | ' |
Operating Leases, Rent Expense, Net | 10,000 | ' |
Property Subject to or Available for Operating Lease, Net | 179,399 | ' |
Litigation Settlement, Amount | 51,000 | ' |
Line of Credit Facility, Borrowing Capacity, Description | 'The Company maintains a line of credit with its investment bank. The credit facility provides borrowing availability of up to 100% of the Company's money market account balance and 99% of the Company's short-term investment securities and, under the terms and conditions of the loan agreement, is fully secured by said money fund account and any short-term investment holdings. | ' |
Line of Credit Availability Equal to Percent of Money Market Account | 100.00% | ' |
Line of Credit Availability Equal to Percent of Short-term Investment | 99.00% | ' |
Line Of Credit Annual Fees Amount | 0 | ' |
Line of Credit Facility, Amount Outstanding | 0 | ' |
Line of Credit Facility, Maximum Borrowing Capacity | $4,500,000 | ' |
COMMITMENTS_AND_CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details) - Schedule of future minimum lease payments (USD $) | Dec. 31, 2013 |
Schedule of future minimum lease payments [Abstract] | ' |
2014 | $342,750 |
2015 | 85,668 |
$428,438 |
COMMITMENTS_AND_CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES (Details) - Schedule of future lease payments relative to continuing operations (USD $) | Dec. 31, 2013 |
Schedule of future lease payments relative to continuing operations [Abstract] | ' |
2014 | $63,775 |
2015 | 63,775 |
2016 | 63,775 |
2017 | 63,775 |
2018 | 58,461 |
$313,561 |
SELECTED_QUARTERLY_FINANCIAL_D2
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) - Summary of selected quarterly financial data (USD $) | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |
Summary of selected quarterly financial data [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | $9,532,000 | $8,791,000 | $8,705,000 | $6,797,000 | $8,216,000 | $7,385,000 | $7,092,000 | $6,902,000 | ' | ' |
Gross profit | 4,493,000 | 4,235,000 | 4,080,000 | 3,320,000 | 4,132,000 | 3,700,000 | 3,590,000 | 3,355,000 | 16,128,350 | 14,776,797 |
Operating income | 663,000 | 572,000 | 717,000 | 244,000 | 824,000 | 773,000 | 609,000 | 551,000 | 2,195,763 | 2,757,618 |
Net income from operations | $1,348,000 | $1,090,000 | $1,058,000 | $346,000 | $1,005,000 | $855,000 | $655,000 | $656,000 | ' | ' |
Diluted net income per share from operations (in Dollars per share) | $0.05 | $0.04 | $0.04 | $0.01 | $0.04 | $0.03 | $0.03 | $0.03 | ' | ' |