Document_And_Entity_Informatio
Document And Entity Information | 6 Months Ended | |
Jun. 30, 2014 | Aug. 08, 2014 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'WIRELESS TELECOM GROUP INC | ' |
Document Type | '10-Q | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Common Stock, Shares Outstanding | ' | 19,411,455 |
Amendment Flag | 'false | ' |
Entity Central Index Key | '0000878828 | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Document Period End Date | 30-Jun-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
CURRENT ASSETS: | ' | ' |
Cash and cash equivalents | $7,375,976 | $16,599,249 |
Accounts receivable - net of allowance for doubtful accounts of $83,943 and $135,742 for 2014 and 2013, respectively | 7,198,728 | 5,357,769 |
Inventories | 8,364,759 | 8,169,276 |
Deferred income taxes - current | 2,244,989 | 1,462,552 |
Prepaid expenses and other current assets | 663,192 | 720,229 |
TOTAL CURRENT ASSETS | 25,847,644 | 32,309,075 |
PROPERTY, PLANT AND EQUIPMENT - NET | 1,766,522 | 1,609,427 |
OTHER ASSETS: | ' | ' |
Goodwill | 1,351,392 | 1,351,392 |
Deferred income taxes - non-current | 6,016,786 | 7,454,935 |
Other assets | 757,876 | 712,202 |
TOTAL OTHER ASSETS | 8,126,054 | 9,518,529 |
TOTAL ASSETS | 35,740,220 | 43,437,031 |
CURRENT LIABILITIES: | ' | ' |
Accounts payable | 2,194,992 | 1,459,594 |
Accrued expenses and other current liabilities | 1,308,545 | 1,523,931 |
Equipment leases payable - current | 192,903 | 120,103 |
TOTAL CURRENT LIABILITIES | 3,696,440 | 3,103,628 |
LONG TERM LIABILITIES: | ' | ' |
Equipment leases payable | 69,869 | 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, 29,425,891 and 29,232,557 shares issued, 19,411,455 and 24,033,231 shares outstanding, respectively | 294,259 | 292,326 |
Additional paid-in-capital | 39,142,983 | 38,970,783 |
Retained earnings | 11,855,910 | 10,700,020 |
Treasury stock at cost, 10,014,436 and 5,199,326 shares, respectively | -19,319,241 | -9,689,022 |
TOTAL SHAREHOLDERS’ EQUITY | 31,973,911 | 40,274,107 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $35,740,220 | $43,437,031 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Allowance for doubtful accounts (in Dollars) | $83,943 | $135,742 |
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 | 29,425,891 | 29,232,557 |
Common stock, shares outstanding | 19,411,455 | 24,033,231 |
Treasury stock, shares | 10,014,436 | 5,199,326 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
NET SALES | $10,438,916 | $8,704,886 | $19,624,247 | $15,501,875 |
COST OF SALES | 5,509,144 | 4,624,558 | 10,428,575 | 8,101,184 |
GROSS PROFIT | 4,929,772 | 4,080,328 | 9,195,672 | 7,400,691 |
OPERATING EXPENSES | ' | ' | ' | ' |
Research and development | 918,109 | 627,181 | 1,679,100 | 1,239,304 |
Sales and marketing | 1,432,005 | 1,319,164 | 2,699,219 | 2,341,324 |
General and administrative | 1,311,281 | 1,416,734 | 2,746,927 | 2,858,407 |
TOTAL OPERATING EXPENSES | 3,661,395 | 3,363,079 | 7,125,246 | 6,439,035 |
OPERATING INCOME | 1,268,377 | 717,249 | 2,070,426 | 961,656 |
OTHER EXPENSE (INCOME) - NET | 7,490 | -200,550 | 37,829 | -215,257 |
NET INCOME BEFORE INCOME TAXES | 1,260,887 | 917,799 | 2,032,597 | 1,176,913 |
PROVISION FOR (BENEFIT) FROM INCOME TAXES | 544,974 | -140,160 | 876,707 | -227,272 |
NET INCOME | $715,913 | $1,057,959 | $1,155,890 | $1,404,185 |
INCOME PER COMMON SHARE: | ' | ' | ' | ' |
BASIC (in Dollars per share) | $0.04 | $0.04 | $0.05 | $0.06 |
DILUTED (in Dollars per share) | $0.03 | $0.04 | $0.05 | $0.06 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 6 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ' | ' |
Net income | $1,155,890 | $1,404,185 |
Adjustments to reconcile net income to net cash provided by (used for) operating activities: | ' | ' |
Depreciation and amortization | 236,808 | 168,200 |
Stock compensation expense | 80,533 | 163,133 |
Realized gain on non-marketable securities | ' | -161,500 |
Deferred income taxes | 655,712 | -431,078 |
Allowance for doubtful accounts | -51,799 | -3,946 |
Inventory reserves | 52,973 | 76,108 |
Changes in assets and liabilities: | ' | ' |
Accounts receivable | -1,789,160 | 316,889 |
Inventories | -248,456 | -1,124,830 |
Prepaid expenses and other assets | -102,734 | 10,528 |
Accounts payable, accrued expenses and other current liabilities | 580,585 | -689,289 |
Net cash provided by (used for) operating activities | 570,352 | -271,600 |
CASH FLOWS FROM INVESTING ACTIVITIES | ' | ' |
Capital expenditures | -196,954 | -185,594 |
Proceeds from sale of non-marketable securities | ' | 162,500 |
Net cash (used for) investing activities | -196,954 | -23,094 |
CASH FLOWS FROM FINANCING ACTIVITIES | ' | ' |
Payments of mortgage note | ' | -38,984 |
Repayments of equipment lease payable | -60,052 | ' |
Proceeds from exercise of stock options | 93,600 | ' |
Repurchase of common stock - 4,815,110 and 174,741 shares, respectively | -9,630,219 | -229,350 |
Net cash (used for) financing activities | -9,596,671 | -268,334 |
NET (DECREASE) IN CASH AND CASH EQUIVALENTS | -9,223,273 | -563,028 |
Cash and cash equivalents, at beginning of period | 16,599,249 | 12,969,513 |
CASH AND CASH EQUIVALENTS, AT END OF PERIOD | 7,375,976 | 12,406,485 |
Cash paid during the period for: | ' | ' |
Taxes | 405,500 | 230,236 |
Interest | ' | 98,783 |
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES: | ' | ' |
Capital expenditures | -149,432 | ' |
Equipment lease payable | $149,432 | ' |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parentheticals) | 6 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Common stock repurchase, shares | 4,815,110 | 174,741 |
CONDENSED_CONSOLIDATED_STATEME3
CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (USD $) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Total |
Balances at Dec. 31, 2013 | $292,326 | $38,970,783 | $10,700,020 | ($9,689,022) | $40,274,107 |
Net income | ' | ' | 1,155,890 | ' | 1,155,890 |
Stock compensation expense | ' | 80,533 | ' | ' | 80,533 |
Stock issued under equity compensation plan | 1,933 | -1,933 | ' | ' | ' |
Stock options exercised | ' | 93,600 | ' | ' | 93,600 |
Repurchase of treasury stock | ' | ' | ' | -9,630,219 | -9,630,219 |
Balances at Jun. 30, 2014 | $294,259 | $39,142,983 | $11,855,910 | ($19,319,241) | $31,973,911 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING PRINCIPLES AND POLICIES | 6 Months Ended |
Jun. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Significant Accounting Policies [Text Block] | ' |
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING PRINCIPLES AND POLICIES | |
The condensed consolidated balance sheets as of June 30, 2014, the condensed consolidated statements of operations for the three and six-month periods ended June 30, 2014 and 2013, the condensed consolidated statements of cash flows for the six-month periods ended June 30, 2014 and 2013, and the condensed consolidated statement of shareholders’ equity for the six-month period ended June 30, 2014 have been prepared by the Company without audit. The condensed 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., which are collectively referred to herein as, the “Company”. All intercompany transactions and balances have been eliminated in consolidation. | |
In the opinion of management, the accompanying condensed consolidated financial statements referred to above contain all necessary adjustments, consisting of normal accruals and recurring entries, which are necessary to present fairly the Company’s results for the interim periods being presented. | |
The accounting policies followed by the Company are set forth in Note 1 to the Company’s financial statements included in its annual report on Form 10-K for the year ended December 31, 2013. Specific reference is made to that report since certain information and footnote disclosures normally included in financial statements in accordance with accounting principles generally accepted in the United States of America (US GAAP) have been condensed or omitted from this report. | |
The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities (including inventory valuation, accounts receivable valuation, valuation of deferred tax assets and estimated fair values of stock options) and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of net sales and expenses during the reporting period. Actual results could differ from those estimates. | |
The results of operations for the three and six-month periods ended June 30, 2014 and 2013 are not necessarily indicative of the results to be expected for the full year ending December 31, 2014. | |
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 are limited due to the Company’s large customer base. At June 30, 2014 and December 31, 2013, primarily all of the Company’s receivables pertained to the telecommunications industry. | |
For the three and six-months ended June 30, 2014, one customer accounted for 13% and 14% of the Company’s total consolidated sales, respectively. 0 single customer accounted for more than 10% of the Company’s consolidated sales for the three and six-months ended June 30, 2013. At June 30, 2014, one customer represented 16% of the Company’s gross accounts receivable balance and no other customer represented more than 10%. At December 31, 2013, 0 customer represented more than 10% of the Company’s gross accounts receivable balance. | |
The carrying amounts of cash and cash equivalents, trade receivables, other current assets and accounts payable approximate fair value due to the short-term nature of these instruments. | |
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 bank and money market accounts. | |
Management has evaluated subsequent events and determined that there were no subsequent events or transactions requiring recognition or disclosure in the condensed consolidated financial statements through the date the financial statements were issued. |
RECENT_ACCOUNTING_PRONOUNCEMEN
RECENT ACCOUNTING PRONOUNCEMENTS | 6 Months Ended |
Jun. 30, 2014 | |
Accounting Changes and Error Corrections [Abstract] | ' |
Accounting Changes and Error Corrections [Text Block] | ' |
NOTE 2 – RECENT ACCOUNTING PRONOUNCEMENTS | |
In June 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-12, Compensation-Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period - Consensus of the FASB Emerging Issues Task Force. ASU 2014-12 requires an entity to treat a performance target that affects vesting and that could be achieved after the requisite service period as a performance condition. The performance target should not be reflected in estimating the grant-date fair value of the award. Additionally, compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved, and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered; if the performance target becomes probable of being achieved before the end of the requisite service period, then the remaining unrecognized compensation cost should be recognized prospectively over the remaining requisite service period. Finally, the total amount of compensation cost recognized during and after the requisite service period should reflect the number of awards that are expected to vest, and should be adjusted to reflect those awards that ultimately vest. An entity is required to adopt ASU 2014-12 for annual and interim periods beginning after December 15, 2015. The Company does not expect the adoption of ASU 2014-12 to have a material impact on its condensed consolidated financial statements. | |
In May 2014, the FASB issued ASU 2014-09 “Revenue from Contracts with Customers” (Topic 606) (“ASU 2014-09”). ASU 2014-09 is a comprehensive new revenue recognition model requiring a company to recognize revenue to depict the transfer of goods or services to a customer at an amount reflecting the consideration it expects to receive in exchange for those goods or services. In adopting ASU 2014-09, companies may use either a full retrospective or a modified retrospective approach. ASU 2014-09 is effective for the first interim period within annual reporting periods beginning after December 15, 2016, and early adoption is not permitted. The Company will adopt ASU 2014-09 during the first quarter of fiscal 2017. Management is evaluating the provisions of this statement and has not determined what impact the adoption of ASU 2014-09 will have on the Company’s condensed consolidated financial statements. | |
In April 2014, the FASB issued ASU 2014-08, “Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity” (“ASU 2014-08”), which changes the criteria for determining which disposals can be presented as discontinued operations and modifies related disclosure requirements. Under the new guidance, a discontinued operation is defined as a disposal of a component or group of components that is disposed of or is classified as held for sale and “represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results.” The new standard applies prospectively to new disposals and new classifications of disposal groups as held for sale after the effective date. The amendment is effective for annual reporting periods beginning after December 15, 2014. Earlier adoption is permitted. The Company does not expect the adoption of ASU 2014-08 to have a material impact on its condensed consolidated financial statements. | |
Management does not believe that any other recently issued, but not yet effective accounting pronouncements, if adopted, would have a material impact on the accompanying condensed consolidated financial statements. |
INCOME_TAXES
INCOME TAXES | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||||||
Income Tax Disclosure [Text Block] | ' | ||||||||||||||||
NOTE 3 – INCOME TAXES | |||||||||||||||||
The Company records deferred taxes in accordance with Accounting Standards Codification (“ASC”) 740, “Accounting for Income Taxes.” ASC 740 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 has a domestic net operating loss carryforward at June 30, 2014 of approximately $20,100,000 which expires in 2029. The Company also has a German net operating loss carryforward at June 30, 2014 of approximately $23,400,000. | |||||||||||||||||
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 is associated with the Company’s German net operating loss carryforward from an inactive German entity. 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 June 30, 2014, management believes that it is more likely than not that the Company will fully realize the benefits of its deferred tax asset associated with its domestic net operating loss carryforward. | |||||||||||||||||
The deferred income tax assets and (liabilities) are summarized as follows: | |||||||||||||||||
June 30, | December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Net deferred tax asset: | |||||||||||||||||
Uniform capitalization of inventory costs for tax purposes | $ | 231,936 | $ | 225,022 | |||||||||||||
Reserves on inventories | 577,557 | 556,368 | |||||||||||||||
Allowance for doubtful accounts | 33,577 | 54,297 | |||||||||||||||
Accruals | 145,271 | 234,008 | |||||||||||||||
Tax effect of goodwill | -453,468 | -435,450 | |||||||||||||||
Book depreciation over tax | -323,243 | -252,204 | |||||||||||||||
Net operating loss carryforward | 15,062,279 | 15,547,580 | |||||||||||||||
15,273,909 | 15,929,621 | ||||||||||||||||
Valuation allowance for deferred tax assets | -7,012,134 | -7,012,134 | |||||||||||||||
$ | 8,261,775 | $ | 8,917,487 | ||||||||||||||
Under ASC 740, the Company must recognize 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 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 components of income tax expense (benefit) related to income from operations are as follows: | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Current: | |||||||||||||||||
Federal | $ | 17,062 | $ | 15,290 | $ | 33,805 | $ | 27,659 | |||||||||
State | 116,825 | 105,242 | 187,190 | 176,147 | |||||||||||||
Deferred: | |||||||||||||||||
Federal | 350,234 | -234,101 | 571,025 | -387,108 | |||||||||||||
State | 60,853 | -26,591 | 84,687 | -43,970 | |||||||||||||
$ | 544,974 | $ | -140,160 | $ | 876,707 | $ | -227,272 | ||||||||||
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 June 30, 2014 and December 31, 2013, 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 no significant uncertain tax positions requiring recognition or disclosure in its condensed consolidated financial statements. | |||||||||||||||||
The State of New Jersey is currently in the process of conducting an examination of one of the Company’s subsidiary tax returns (Microlab) for the years 2009 through 2012. The Company expects the examination to be completed in the second half of 2014. |
INCOME_PER_COMMON_SHARE
INCOME PER COMMON SHARE | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Earnings Per Share [Text Block] | ' | |||||||||||||||
NOTE 4 - INCOME PER COMMON SHARE | ||||||||||||||||
Basic earnings 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 earnings per share are calculated by using the weighted average number of shares of common stock outstanding and, when dilutive, potential shares from stock options and warrants to purchase common stock, using the treasury stock method. | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Weighted average common shares outstanding | 19,731,302 | 23,852,754 | 21,870,382 | 23,863,193 | ||||||||||||
Potentially dilutive stock options | 1,108,511 | 580,478 | 1,262,150 | 494,425 | ||||||||||||
Weighted average common shares outstanding, assuming dilution | 20,839,813 | 24,433,232 | 23,132,532 | 24,357,618 | ||||||||||||
Common stock options are included in the diluted earnings per share calculation when the various option exercise prices are less than their relative average market price during the periods presented in this quarterly report. The weighted average number of shares of common stock underlying options not included in diluted earnings per share, because the effects are anti-dilutive, was 1,729,039 and 1,561,523 for the three-months ended June 30, 2014 and 2013, respectively. For the six-months ended June 30, 2014 and 2013, the weighted average number of shares of common stock underlying options not included in diluted earnings per share was 1,596,784 and 1,649,453, respectively. |
INVENTORIES
INVENTORIES | 6 Months Ended | |||||||||
Jun. 30, 2014 | ||||||||||
Inventory Disclosure [Abstract] | ' | |||||||||
Inventory Disclosure [Text Block] | ' | |||||||||
NOTE 5 – INVENTORIES | ||||||||||
Inventory carrying value is net of inventory reserves of $818,386 and $765,413 at June 30, 2014 and December 31, 2013, respectively. | ||||||||||
June 30, | December 31, | |||||||||
2014 | 2013 | |||||||||
Inventories consist of: | ||||||||||
Raw materials | $ | 4,537,238 | $ | 5,028,743 | ||||||
Work-in-process | 1,055,345 | 470,983 | ||||||||
Finished goods | 2,772,176 | 2,669,550 | ||||||||
$ | 8,364,759 | $ | 8,169,276 | |||||||
GOODWILL
GOODWILL | 6 Months Ended |
Jun. 30, 2014 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ' |
Goodwill and Intangible Assets Disclosure [Text Block] | ' |
NOTE 6 - 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 described below. If, based on the qualitative assessment, the estimated fair value is well in excess of its carrying amount, management will not perform a 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’s 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 June 30, 2014 and December 31, 2013 relates to one of the Company’s reporting units, Microlab. Management’s qualitative assessment performed in the fourth quarter of 2013 did not indicate any impairment of Microlab’s goodwill as its fair value is estimated to be well in excess of its carrying value. Furthermore, no events have occurred since then that would change this assessment. |
ACCOUNTING_FOR_STOCK_BASED_COM
ACCOUNTING FOR STOCK BASED COMPENSATION | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | ' | ||||||||
NOTE 7 - ACCOUNTING FOR STOCK BASED COMPENSATION | |||||||||
The Company follows the provisions of ASC 718, “Share-Based Payment.” The Company’s results for the three and six-month periods ended June 30, 2014 include share-based compensation expense totaling $22,649 and $80,533, respectively. Results for the three and six-month periods ended June 30, 2013 include share-based compensation expense of $72,233 and $163,133, respectively. Such amounts have been included in the Condensed Consolidated Statements of Operations within operating expenses. | |||||||||
In 2012, the Company’s Board of Directors and shareholders approved the 2012 Incentive Compensation Plan, which 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. When originally approved, the 2012 Incentive Compensation Plan provided for the grant of awards relating to 2,000,000 shares of common stock, plus those shares still available under the Company’s prior incentive compensation plan. In June 2014, the Company’s shareholders approved the Amended and Restated 2012 Incentive Compensation (the “2012 Plan”) allowing for an additional 1,658,045 shares of the Company’s common stock to be available for future grants under the 2012 Plan. As of June 30, 2014, there were 2,285,000 shares available for issuance under the 2012 Plan, including those shares available under the Company’s prior incentive compensation plan as of such date. | |||||||||
All service-based options granted have ten-year terms from the date of grant and 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 2012 Plan, options may be granted to purchase shares of the Company’s common stock exercisable at prices equal to or above the fair market value on the date of the grant. | |||||||||
The Company did not grant stock option awards during the three and six-month periods ended June 30, 2014 and 2013. | |||||||||
In June 2014, the Company granted 80,000 shares of restricted common stock to certain directors of the Company under the 2012 Plan. The shares were granted at a price of $2.49 per share and will fully vest on the date of the Company’s next annual shareholders meeting to be held in June 2015, or a vesting period of approximately one year. The total compensation expense to be recognized over the vesting period is $199,200. | |||||||||
A summary of the status of the Company’s non-vested restricted common stock, as granted under the Company’s approved stock compensation plans, as of June 30, 2014, and changes during the six-months ended June 30, 2014 are presented below: | |||||||||
Weighted Average | |||||||||
Grant Date | |||||||||
Non-vested Restricted Shares | Number of Shares | Fair Value | |||||||
Non-vested at January 1, 2014 | 220,000 | $1.63 | |||||||
Granted | 80,000 | $2.49 | |||||||
Forfeited | -6,666 | $1.51 | |||||||
Vested | -113,334 | $1.51 | |||||||
Non-vested at June 30, 2014 | 180,000 | $2.09 | |||||||
As of June 30, 2014, the unearned compensation related to Company granted restricted common stock is $376,200 of which $199,200 (pertaining to 80,000 restricted common stock awards) will be amortized on a straight-line basis through the date of the Company’s next annual shareholders meeting to be held in June 2015, the vesting date. The remaining balance of $177,000 (comprising 100,000 performance-based restricted common stock awards) will begin to be amortized when certain performance conditions are determined to be probable. | |||||||||
Under the terms of the performance-based restricted common stock agreements, the awards will fully vest and become exercisable on the date on which the Company’s Board of Directors shall have determined that specific financial milestones 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 restricted stock shall automatically vest as permitted by the 2012 Plan. For the performance-based restricted stock awarded in August 2013, the Company’s Board of Directors adopted specific revenue and earnings performance targets as vesting conditions. As of June 30, 2014, the Company has not incurred any expense relating to these performance-based stock awards as it is not determinable that such performance targets will be achieved. | |||||||||
Under the terms of the performance-based stock option agreements, the awards will fully vest and become exercisable on the date on which the Company’s Board of Directors shall have determined that specific financial performance milestones 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 stock options shall automatically vest as permitted by the 2012 Plan. As of June 30, 2014, the Company has not incurred any expense relating to the performance-based stock option awards issued in 2013, as it is not determinable that such performance targets will be achieved. | |||||||||
Unearned compensation in the amount of $867,683 relating to the 950,000 performance-based stock options granted in August 2013 (weighted average per share exercise price of $1.77) will not be recognized until management considers the respective performance conditions to be achievable. | |||||||||
A summary of performance-based stock option activity, and related information for the six-months ended June 30, 2014 follows: | |||||||||
Weighted Average | |||||||||
Options | Exercise Price | ||||||||
Outstanding, January 1, 2014 | 2,250,000 | $1.28 | |||||||
Granted | - | - | |||||||
Exercised | -120,000 | $0.78 | |||||||
Forfeited | - | - | |||||||
Canceled/Expired | - | - | |||||||
Outstanding, June 30, 2014 | 2,130,000 | $1.31 | |||||||
Options exercisable: | |||||||||
30-Jun-14 | 1,180,000 | $0.94 | |||||||
The aggregate intrinsic value of performance-based stock options outstanding (regardless of whether or not such options are exercisable) as of June 30, 2014 and December 31, 2013 was $2,906,950 and $1,896,250, respectively. The aggregate intrinsic value of performance-based stock options exercisable as of June 30, 2014 and December 31, 2013 was $2,051,950 and $1,563,750, respectively. | |||||||||
The Company’s performance-based stock options granted prior to 2013 and the Company’s service-based stock options are fully amortized. For the three and six-months ended June 30, 2013, the Company recorded compensation expense in the amount of $49,232 and $98,465, respectively. | |||||||||
A summary of service-based stock option activity, and related information for the six-months ended June 30, 2014 follows: | |||||||||
Weighted Average | |||||||||
Options | Exercise Price | ||||||||
Outstanding, January 1, 2014 | 787,000 | $2.65 | |||||||
Granted | - | - | |||||||
Exercised | - | - | |||||||
Forfeited | - | - | |||||||
Canceled/Expired | -190,000 | $3.02 | |||||||
Outstanding, June 30, 2014 | 597,000 | $2.53 | |||||||
Options exercisable: | |||||||||
30-Jun-14 | 597,000 | $2.53 | |||||||
The following summarizes the components of share-based compensation expense by equity type for the three-months ended March 31: | |||||||||
Three Months Ended | Six Months Ended | ||||||||
June 30, | June 30, | ||||||||
2014 | 2013 | 2014 | 2013 | ||||||
Restricted Common Stock | $22,649 | $23,001 | $80,533 | $64,668 | |||||
Performance-based stock options | - | 49,232 | - | 98,465 | |||||
Total Share-Based Compensation Expense | $22,649 | $72,233 | $80,533 | $163,133 | |||||
Stock-based compensation for the three and six-months ended June 30, 2014 and 2013 is included in general and administrative expenses in the accompanying condensed consolidated statement of operations. |
SEGMENT_INFORMATION
SEGMENT INFORMATION | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Segment Reporting [Abstract] | ' | ||||||||
Segment Reporting Disclosure [Text Block] | ' | ||||||||
NOTE 8 – SEGMENT INFORMATION | |||||||||
The operating businesses of the Company are segregated into two reportable segments: (i) network solutions; and (ii) test and measurement. The network solutions segment is comprised primarily of the operations of the Company’s subsidiary, Microlab. The test and measurement segment is comprised primarily of the operations of Wireless Telecom Group, Inc. which operates the Noisecom product line and the operations of its subsidiary, Boonton. | |||||||||
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 for the three and six-months ended June 30, 2014 and 2013: | |||||||||
Three Months Ended | Six Months Ended | ||||||||
June 30, | June 30, | ||||||||
2014 | 2013 | 2014 | 2013 | ||||||
Net sales by segment: | |||||||||
Network solutions | $7,601,813 | $5,954,153 | $13,991,671 | $9,747,979 | |||||
Test and measurement | 2,837,103 | 2,750,733 | 5,632,576 | 5,753,896 | |||||
Total consolidated net sales and net sales of reportable segments | $10,438,916 | $8,704,886 | $19,624,247 | $15,501,875 | |||||
Segment income: | |||||||||
Network solutions | $2,197,081 | $1,525,206 | $3,712,666 | $2,312,022 | |||||
Test and measurement | -8,279 | 151,991 | 216,747 | 535,172 | |||||
Income from reportable segments | 2,188,802 | 1,677,197 | 3,929,413 | 2,847,194 | |||||
Other unallocated amounts: | |||||||||
Corporate expenses | -920,425 | -959,948 | -1,858,987 | -1,885,538 | |||||
Interest and other income - net | -7,490 | 200,550 | -37,829 | 215,257 | |||||
Consolidated income before income tax (benefit) | $1,260,887 | $917,799 | $2,032,597 | $1,176,913 | |||||
Depreciation and amortization by segment: | |||||||||
Network solutions | $40,845 | $28,244 | $75,114 | $55,424 | |||||
Test and measurement | 77,332 | 59,010 | 161,694 | 112,776 | |||||
Total depreciation and amortization for reportable segments | $118,177 | $87,254 | $236,808 | $168,200 | |||||
Capital expenditures by segment: | |||||||||
Network solutions | $92,734 | $22,060 | $162,691 | $52,215 | |||||
Test and measurement | 3,758 | 104,414 | 34,263 | 133,379 | |||||
Total consolidated capital expenditures by reportable segment | $96,492 | $126,474 | $196,954 | $185,594 | |||||
Financial information by reportable segment as of June 30, 2014 and December 31, 2013: | |||||||||
2014 | 2013 | ||||||||
Total assets by segment: | |||||||||
Network solutions | $12,217,747 | $9,649,681 | |||||||
Test and measurement | 7,761,379 | 8,270,614 | |||||||
Total assets for reportable segments | 19,979,126 | 17,920,295 | |||||||
Corporate assets, principally cash and cash equivalents and deferred and current taxes | 15,761,094 | 25,516,736 | |||||||
Total consolidated assets | $35,740,220 | $43,437,031 | |||||||
Net consolidated sales by region were as follows: | |||||||||
Three Months Ended | Six Months Ended | ||||||||
June 30, | June 30, | ||||||||
Sales by region | 2014 | 2013 | 2014 | 2013 | |||||
Americas | $8,059,115 | $7,195,063 | $15,103,189 | $12,503,811 | |||||
Europe, Middle East, Africa (EMEA) | 1,282,804 | 1,030,444 | 2,803,800 | 2,003,209 | |||||
Asia Pacific (APAC) | 1,096,997 | 479,379 | 1,717,258 | 994,855 | |||||
Total Sales | $10,438,916 | $8,704,886 | $19,624,247 | $15,501,875 | |||||
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 three-months ended June 30, 2014 and 2013, sales in the United States for all reportable segments amounted to $7,429,777 and $6,783,504, respectively. For the six-months ended June 30, 2014 and 2013, sales in the United States amounted to $14,048,676 and $11,650,350, respectively. For the three and six-months ended June 30, 2014 and 2013, shipments to the EMEA region were not significantly concentrated in one country. Shipments to the APAC region were largely concentrated in China. For the three-months ended June 30, 2014 and 2013, sales in China for all reportable segments amounted to $837,553 and $204,047, respectively. For the six-months ended June 30, 2014 and 2013, sales in China amounted to $1,105,082 and $450,505, respectively. |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies Disclosure [Text Block] | ' |
NOTE 9 - 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, the Company’s warranty expense has been minimal. | |
Leases: | |
On February 25, 2014, the Company entered into an agreement to remain at its principal corporate headquarters in Hanover Township, Parsippany, New Jersey 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 is approximately $29,000. | |
Environmental Contingencies: | |
Following an investigation by the New Jersey Department of Environmental Protection (“NJDEP”) in 1982 of the waste disposal practices at a certain site formerly leased by Boonton, the Company put a ground water management plan into effect as approved by the NJDEP. Costs associated with this site are charged directly to income as incurred. The owner of this site has previously notified the Company that if the NJDEP investigation proves to have interfered with a sale of the property, the owner may seek to hold the Company liable for any resulting damages. Since May 1983, the owner has been on notice of this problem and has failed to institute any legal proceedings with respect thereto. While this does not bar the owner from instituting a suit, it is the opinion of the Company’s legal counsel that it is unlikely that the owner would prevail on any such claim. | |
The Company is diligently pursuing efforts to satisfy the requirements of the ground water management plan and receive a new determination from the NJDEP. The Company has recently received approval for a groundwater permit from the NJDEP to carry out the final Remedial Action Work Plan and report. This final phase results in the limited and reduced monitoring and testing as concentrations at the site continue on a decreasing trend. 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. | |
Line of Credit: | |
The Company maintains a line of credit with a 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 (U.S. Treasury bills) and, under the terms and conditions of the loan agreement, the facility is fully secured by the Company’s money fund account and short-term investment holdings held with the bank. Advances under the facility will bear interest at a variable rate equal to the London InterBank Offered Rate (“LIBOR”) in effect at the 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 June 30, 2014, 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 its present cash balances 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. |
STOCK_REPURCHASE
STOCK REPURCHASE | 6 Months Ended |
Jun. 30, 2014 | |
Stockholders' Equity Note [Abstract] | ' |
Stockholders' Equity Note Disclosure [Text Block] | ' |
NOTE 10 - STOCK REPURCHASE | |
On April 9, 2014, the Company entered into and consummated an agreement to repurchase a total of 4,815,110 shares of the Company’s common stock from Investcorp Technology Ventures, L.P., its largest shareholder at the time, for $2.00 per share. The Company funded the transaction from available cash. | |
Prior to the repurchase, Investcorp Technology Partners held 6,472,666 shares of the common stock of the Company, which at the time represented approximately 26.9% of the outstanding shares of common stock. | |
The repurchase agreement was subject to certain closing conditions including, among other conditions: (i) the resignation of each of Mr. Glenn Luk and Mr. Anand Radhakrishnan as directors of the Company, and in the case of Mr. Luk, his resignation as Chairman of the Board of Directors of the Company, (ii) the vesting of 10/12th of the restricted stock of the Company previously awarded to Messrs. Luk and Radhakrishnan, and (iii) the delivery by each of Messrs. Luk and Radhakrishnan to the Company of 180-day lock-up agreements. |
Accounting_Policies_by_Policy_
Accounting Policies, by Policy (Policies) | 6 Months Ended |
Jun. 30, 2014 | |
Accounting Policies [Abstract] | ' |
New Accounting Pronouncements, Policy [Policy Text Block] | ' |
In June 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-12, Compensation-Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period - Consensus of the FASB Emerging Issues Task Force. ASU 2014-12 requires an entity to treat a performance target that affects vesting and that could be achieved after the requisite service period as a performance condition. The performance target should not be reflected in estimating the grant-date fair value of the award. Additionally, compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved, and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered; if the performance target becomes probable of being achieved before the end of the requisite service period, then the remaining unrecognized compensation cost should be recognized prospectively over the remaining requisite service period. Finally, the total amount of compensation cost recognized during and after the requisite service period should reflect the number of awards that are expected to vest, and should be adjusted to reflect those awards that ultimately vest. An entity is required to adopt ASU 2014-12 for annual and interim periods beginning after December 15, 2015. The Company does not expect the adoption of ASU 2014-12 to have a material impact on its condensed consolidated financial statements. | |
In May 2014, the FASB issued ASU 2014-09 “Revenue from Contracts with Customers” (Topic 606) (“ASU 2014-09”). ASU 2014-09 is a comprehensive new revenue recognition model requiring a company to recognize revenue to depict the transfer of goods or services to a customer at an amount reflecting the consideration it expects to receive in exchange for those goods or services. In adopting ASU 2014-09, companies may use either a full retrospective or a modified retrospective approach. ASU 2014-09 is effective for the first interim period within annual reporting periods beginning after December 15, 2016, and early adoption is not permitted. The Company will adopt ASU 2014-09 during the first quarter of fiscal 2017. Management is evaluating the provisions of this statement and has not determined what impact the adoption of ASU 2014-09 will have on the Company’s condensed consolidated financial statements. | |
In April 2014, the FASB issued ASU 2014-08, “Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity” (“ASU 2014-08”), which changes the criteria for determining which disposals can be presented as discontinued operations and modifies related disclosure requirements. Under the new guidance, a discontinued operation is defined as a disposal of a component or group of components that is disposed of or is classified as held for sale and “represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results.” The new standard applies prospectively to new disposals and new classifications of disposal groups as held for sale after the effective date. The amendment is effective for annual reporting periods beginning after December 15, 2014. Earlier adoption is permitted. The Company does not expect the adoption of ASU 2014-08 to have a material impact on its condensed consolidated financial statements. | |
Management does not believe that any other recently issued, but not yet effective accounting pronouncements, if adopted, would have a material impact on the accompanying condensed consolidated financial statements. | |
Income Tax, Policy [Policy Text Block] | ' |
The Company records deferred taxes in accordance with Accounting Standards Codification (“ASC”) 740, “Accounting for Income Taxes.” ASC 740 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. | |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | ' |
The Company follows the provisions of ASC 718, “Share-Based Payment.” |
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||||||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | 'The deferred income tax assets and (liabilities) are summarized as follows: | ||||||||||||||||
June 30, | December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Net deferred tax asset: | |||||||||||||||||
Uniform capitalization of inventory costs for tax purposes | $ | 231,936 | $ | 225,022 | |||||||||||||
Reserves on inventories | 577,557 | 556,368 | |||||||||||||||
Allowance for doubtful accounts | 33,577 | 54,297 | |||||||||||||||
Accruals | 145,271 | 234,008 | |||||||||||||||
Tax effect of goodwill | -453,468 | -435,450 | |||||||||||||||
Book depreciation over tax | -323,243 | -252,204 | |||||||||||||||
Net operating loss carryforward | 15,062,279 | 15,547,580 | |||||||||||||||
15,273,909 | 15,929,621 | ||||||||||||||||
Valuation allowance for deferred tax assets | -7,012,134 | -7,012,134 | |||||||||||||||
$ | 8,261,775 | $ | 8,917,487 | ||||||||||||||
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: | ||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Current: | |||||||||||||||||
Federal | $ | 17,062 | $ | 15,290 | $ | 33,805 | $ | 27,659 | |||||||||
State | 116,825 | 105,242 | 187,190 | 176,147 | |||||||||||||
Deferred: | |||||||||||||||||
Federal | 350,234 | -234,101 | 571,025 | -387,108 | |||||||||||||
State | 60,853 | -26,591 | 84,687 | -43,970 | |||||||||||||
$ | 544,974 | $ | -140,160 | $ | 876,707 | $ | -227,272 |
INCOME_PER_COMMON_SHARE_Tables
INCOME PER COMMON SHARE (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Schedule of Weighted Average Number of Shares [Table Text Block] | ' | |||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Weighted average common shares outstanding | 19,731,302 | 23,852,754 | 21,870,382 | 23,863,193 | ||||||||||||
Potentially dilutive stock options | 1,108,511 | 580,478 | 1,262,150 | 494,425 | ||||||||||||
Weighted average common shares outstanding, assuming dilution | 20,839,813 | 24,433,232 | 23,132,532 | 24,357,618 |
INVENTORIES_Tables
INVENTORIES (Tables) | 6 Months Ended | |||||||||
Jun. 30, 2014 | ||||||||||
Inventory Disclosure [Abstract] | ' | |||||||||
Schedule of Inventory, Current [Table Text Block] | 'Inventories consist of: | |||||||||
June 30, | December 31, | |||||||||
2014 | 2013 | |||||||||
Inventories consist of: | ||||||||||
Raw materials | $ | 4,537,238 | $ | 5,028,743 | ||||||
Work-in-process | 1,055,345 | 470,983 | ||||||||
Finished goods | 2,772,176 | 2,669,550 | ||||||||
$ | 8,364,759 | $ | 8,169,276 |
ACCOUNTING_FOR_STOCK_BASED_COM1
ACCOUNTING FOR STOCK BASED COMPENSATION (Tables) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
ACCOUNTING FOR STOCK BASED COMPENSATION (Tables) [Line Items] | ' | ||||||||
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 plans, as of June 30, 2014, and changes during the six-months ended June 30, 2014 are presented below: | ||||||||
Weighted Average | |||||||||
Grant Date | |||||||||
Non-vested Restricted Shares | Number of Shares | Fair Value | |||||||
Non-vested at January 1, 2014 | 220,000 | $1.63 | |||||||
Granted | 80,000 | $2.49 | |||||||
Forfeited | -6,666 | $1.51 | |||||||
Vested | -113,334 | $1.51 | |||||||
Non-vested at June 30, 2014 | 180,000 | $2.09 | |||||||
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 share-based compensation expense by equity type for the three-months ended March 31: | ||||||||
Three Months Ended | Six Months Ended | ||||||||
June 30, | June 30, | ||||||||
2014 | 2013 | 2014 | 2013 | ||||||
Restricted Common Stock | $22,649 | $23,001 | $80,533 | $64,668 | |||||
Performance-based stock options | - | 49,232 | - | 98,465 | |||||
Total Share-Based Compensation Expense | $22,649 | $72,233 | $80,533 | $163,133 | |||||
Performance Based Stock Options [Member] | ' | ||||||||
ACCOUNTING FOR STOCK BASED COMPENSATION (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 six-months ended June 30, 2014 follows: | ||||||||
Weighted Average | |||||||||
Options | Exercise Price | ||||||||
Outstanding, January 1, 2014 | 2,250,000 | $1.28 | |||||||
Granted | - | - | |||||||
Exercised | -120,000 | $0.78 | |||||||
Forfeited | - | - | |||||||
Canceled/Expired | - | - | |||||||
Outstanding, June 30, 2014 | 2,130,000 | $1.31 | |||||||
Options exercisable: | |||||||||
30-Jun-14 | 1,180,000 | $0.94 | |||||||
Service Based Stock Options [Member] | ' | ||||||||
ACCOUNTING FOR STOCK BASED COMPENSATION (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 six-months ended June 30, 2014 follows: | ||||||||
Weighted Average | |||||||||
Options | Exercise Price | ||||||||
Outstanding, January 1, 2014 | 787,000 | $2.65 | |||||||
Granted | - | - | |||||||
Exercised | - | - | |||||||
Forfeited | - | - | |||||||
Canceled/Expired | -190,000 | $3.02 | |||||||
Outstanding, June 30, 2014 | 597,000 | $2.53 | |||||||
Options exercisable: | |||||||||
30-Jun-14 | 597,000 | $2.53 |
SEGMENT_INFORMATION_Tables
SEGMENT INFORMATION (Tables) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Segment Reporting [Abstract] | ' | ||||||||
Schedule Of Segment Reporting Financial Information Excluding Total Assets By Segment [Table Text Block] | 'Financial information by reportable segment for the three and six-months ended June 30, 2014 and 2013: | ||||||||
Three Months Ended | Six Months Ended | ||||||||
June 30, | June 30, | ||||||||
2014 | 2013 | 2014 | 2013 | ||||||
Net sales by segment: | |||||||||
Network solutions | $7,601,813 | $5,954,153 | $13,991,671 | $9,747,979 | |||||
Test and measurement | 2,837,103 | 2,750,733 | 5,632,576 | 5,753,896 | |||||
Total consolidated net sales and net sales of reportable segments | $10,438,916 | $8,704,886 | $19,624,247 | $15,501,875 | |||||
Segment income: | |||||||||
Network solutions | $2,197,081 | $1,525,206 | $3,712,666 | $2,312,022 | |||||
Test and measurement | -8,279 | 151,991 | 216,747 | 535,172 | |||||
Income from reportable segments | 2,188,802 | 1,677,197 | 3,929,413 | 2,847,194 | |||||
Other unallocated amounts: | |||||||||
Corporate expenses | -920,425 | -959,948 | -1,858,987 | -1,885,538 | |||||
Interest and other income - net | -7,490 | 200,550 | -37,829 | 215,257 | |||||
Consolidated income before income tax (benefit) | $1,260,887 | $917,799 | $2,032,597 | $1,176,913 | |||||
Depreciation and amortization by segment: | |||||||||
Network solutions | $40,845 | $28,244 | $75,114 | $55,424 | |||||
Test and measurement | 77,332 | 59,010 | 161,694 | 112,776 | |||||
Total depreciation and amortization for reportable segments | $118,177 | $87,254 | $236,808 | $168,200 | |||||
Capital expenditures by segment: | |||||||||
Network solutions | $92,734 | $22,060 | $162,691 | $52,215 | |||||
Test and measurement | 3,758 | 104,414 | 34,263 | 133,379 | |||||
Total consolidated capital expenditures by reportable segment | $96,492 | $126,474 | $196,954 | $185,594 | |||||
Schedule Of Segment Reporting Information Total Assets By Segment [Table Text Block] | 'Financial information by reportable segment as of June 30, 2014 and December 31, 2013: | ||||||||
2014 | 2013 | ||||||||
Total assets by segment: | |||||||||
Network solutions | $12,217,747 | $9,649,681 | |||||||
Test and measurement | 7,761,379 | 8,270,614 | |||||||
Total assets for reportable segments | 19,979,126 | 17,920,295 | |||||||
Corporate assets, principally cash and cash equivalents and deferred and current taxes | 15,761,094 | 25,516,736 | |||||||
Total consolidated assets | $35,740,220 | $43,437,031 | |||||||
Schedule Of Net Consolidated Sales By Region [Table Text Block] | 'Net consolidated sales by region were as follows: | ||||||||
Three Months Ended | Six Months Ended | ||||||||
June 30, | June 30, | ||||||||
Sales by region | 2014 | 2013 | 2014 | 2013 | |||||
Americas | $8,059,115 | $7,195,063 | $15,103,189 | $12,503,811 | |||||
Europe, Middle East, Africa (EMEA) | 1,282,804 | 1,030,444 | 2,803,800 | 2,003,209 | |||||
Asia Pacific (APAC) | 1,096,997 | 479,379 | 1,717,258 | 994,855 | |||||
Total Sales | $10,438,916 | $8,704,886 | $19,624,247 | $15,501,875 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING PRINCIPLES AND POLICIES (Details) | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | |
Customer One [Member] | Customer One [Member] | No Customer [Member] | No Customer [Member] | No Customer [Member] | No Customer [Member] | |||||
SUMMARY OF SIGNIFICANT ACCOUNTING PRINCIPLES AND POLICIES (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Financial Institutions in Which Company Maintains Cash Investments | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' |
Concentration Risk, Percentage | ' | ' | ' | ' | 13.00% | 14.00% | 10.00% | ' | 10.00% | ' |
Number of Significant Customer Respect to Revenue | 0 | ' | 0 | ' | ' | ' | ' | ' | ' | ' |
Number of Significant Customer Respect to Accounts Receivable | ' | 1 | ' | 0 | ' | ' | ' | ' | ' | ' |
Percentage of Accounts Receivable Attributable to Significant Customer | ' | ' | ' | ' | ' | 16.00% | ' | 10.00% | ' | ' |
Percentage of Gross Accounts Receivable Balance | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% |
Highly Liquid Investment Maximum Maturity Period | ' | '3 months | ' | ' | ' | ' | ' | ' | ' | ' |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 6 Months Ended |
Jun. 30, 2014 | |
INCOME TAXES (Details) [Line Items] | ' |
Operating Loss Carryforwards Expiration Period | '2029 |
Percentage of Largest Benefit to Tax Benefits Recognized | 50.00% |
Domestic Tax Authority [Member] | ' |
INCOME TAXES (Details) [Line Items] | ' |
Operating Loss Carryforwards | 20,100,000 |
Foreign Tax Authority [Member] | ' |
INCOME TAXES (Details) [Line Items] | ' |
Operating Loss Carryforwards | 23,400,000 |
Operating Loss Carryforwards, Valuation Allowance | 7,012,134 |
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 deferred tax assets and liabilities (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Net deferred tax asset: | ' | ' |
Uniform capitalization of inventory costs for tax purposes | $231,936 | $225,022 |
Reserves on inventories | 577,557 | 556,368 |
Allowance for doubtful accounts | 33,577 | 54,297 |
Accruals | 145,271 | 234,008 |
Tax effect of goodwill | -453,468 | -435,450 |
Book depreciation over tax | -323,243 | -252,204 |
Net operating loss carryforward | 15,062,279 | 15,547,580 |
15,273,909 | 15,929,621 | |
Valuation allowance for deferred tax assets | -7,012,134 | -7,012,134 |
$8,261,775 | $8,917,487 |
INCOME_TAXES_Details_Schedule_1
INCOME TAXES (Details) - Schedule of income tax expense (benefit) related to income from operations (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Current: | ' | ' | ' | ' |
Federal | $17,062 | $15,290 | $33,805 | $27,659 |
State | 116,825 | 105,242 | 187,190 | 176,147 |
Deferred: | ' | ' | ' | ' |
Federal | 350,234 | -234,101 | 571,025 | -387,108 |
State | 60,853 | -26,591 | 84,687 | -43,970 |
$544,974 | ($140,160) | $876,707 | ($227,272) |
INCOME_PER_COMMON_SHARE_Detail
INCOME PER COMMON SHARE (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Earnings Per Share [Abstract] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 1,729,039 | 1,561,523 | 1,596,784 | 1,649,453 |
INCOME_PER_COMMON_SHARE_Detail1
INCOME PER COMMON SHARE (Details) - Schedule of weighted average number of shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Schedule of weighted average number of shares [Abstract] | ' | ' | ' | ' |
Weighted average common shares outstanding | 19,731,302 | 23,852,754 | 21,870,382 | 23,863,193 |
Potentially dilutive stock options | 1,108,511 | 580,478 | 1,262,150 | 494,425 |
Weighted average common shares outstanding, assuming dilution | 20,839,813 | 24,433,232 | 23,132,532 | 24,357,618 |
INVENTORIES_Details
INVENTORIES (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Inventory Disclosure [Abstract] | ' | ' |
Inventory Valuation Reserves | $818,386 | $765,413 |
INVENTORIES_Details_Schedule_o
INVENTORIES (Details) - Schedule of inventory current (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Inventories consist of: | ' | ' |
Raw materials | $4,537,238 | $5,028,743 |
Work-in-process | 1,055,345 | 470,983 |
Finished goods | 2,772,176 | 2,669,550 |
$8,364,759 | $8,169,276 |
GOODWILL_Details
GOODWILL (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
GOODWILL (Details) [Line Items] | ' | ' |
Goodwill | $1,351,392 | $1,351,392 |
Microlab [Member] | ' | ' |
GOODWILL (Details) [Line Items] | ' | ' |
Goodwill | $1,351,392 | $1,351,392 |
ACCOUNTING_FOR_STOCK_BASED_COM2
ACCOUNTING FOR STOCK BASED COMPENSATION (Details) (USD $) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||||||
Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Aug. 31, 2013 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Aug. 31, 2013 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | |
Performance Shares [Member] | Performance Shares [Member] | Performance Shares [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Performance Based Stock Options [Member] | Performance Based Stock Options [Member] | Performance Based Stock Options [Member] | Performance Based Stock Options [Member] | Performance Based Stock Options [Member] | |||||||
ACCOUNTING FOR STOCK BASED COMPENSATION (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation | ' | $22,649 | $72,233 | $80,533 | $163,133 | ' | ' | ' | ' | ' | ' | ' | ' | ' | $49,232 | ' | $98,465 | ' |
Stock or Units Available for Distributions (in Shares) | ' | ' | ' | 2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share Based Compensation Arrangement by Share Based Payment Award Additional Number of Shares Available for Grant (in Shares) | 1,658,045 | 1,658,045 | ' | 1,658,045 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant (in Shares) | 2,285,000 | 2,285,000 | ' | 2,285,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | '1 year | ' | ' | '10 years | ' | ' | ' | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share Based Compensation Arrangement by Share Based Payment Award Maximum Period Consider for Option Fully Exercisable | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted (in Shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 80,000 | ' | ' | ' | 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) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2.49 | ' | ' | ' | ' | ' | ' |
Allocated Share-based Compensation Expense | 199,200 | 22,649 | 72,233 | 80,533 | 163,133 | ' | 49,232 | ' | 98,465 | 22,649 | 23,001 | 80,533 | 64,668 | ' | ' | ' | ' | ' |
Adjustments to Additional Paid in Capital, Share-based Compensation, Restricted Stock Unit or Restricted Stock Award, Requisite Service Period Recognition | ' | ' | ' | 376,200 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Based Compensation to be Amortized Next Fiscal Year | 199,200 | 199,200 | ' | 199,200 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Based Compensation to be Amortized Vesting Period | ' | ' | ' | 'June 2015 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Based Compensation to be Amortized Depending on Certain Performance Conditions | 177,000 | 177,000 | ' | 177,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | ' | ' | ' | ' | ' | 867,683 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
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, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,906,950 | ' | 1,896,250 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Aggregate Intrinsic Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2,051,950 | ' | $1,563,750 |
ACCOUNTING_FOR_STOCK_BASED_COM3
ACCOUNTING FOR STOCK BASED COMPENSATION (Details) - Schedule of non-vested restricted stock activity (Restricted Stock [Member], USD $) | 6 Months Ended |
Jun. 30, 2014 | |
Restricted Stock [Member] | ' |
ACCOUNTING FOR STOCK BASED COMPENSATION (Details) - Schedule of non-vested restricted stock activity [Line Items] | ' |
Non-vested at January 1, 2014 | 220,000 |
Non-vested at January 1, 2014 | $1.63 |
Granted | 80,000 |
Granted | $2.49 |
Forfeited | -6,666 |
Forfeited | $1.51 |
Vested | -113,334 |
Vested | $1.51 |
Non-vested at June 30, 2014 | 180,000 |
Non-vested at June 30, 2014 | $2.09 |
ACCOUNTING_FOR_STOCK_BASED_COM4
ACCOUNTING FOR STOCK BASED COMPENSATION (Details) - Schedule of performance-based stock option activity, and related Information (Performance Based Stock Options [Member], USD $) | 6 Months Ended |
Jun. 30, 2014 | |
Performance Based Stock Options [Member] | ' |
ACCOUNTING FOR STOCK BASED COMPENSATION (Details) - Schedule of performance-based stock option activity, and related Information [Line Items] | ' |
Outstanding, January 1, 2014 | 2,250,000 |
Outstanding, January 1, 2014 | $1.28 |
Exercised | -120,000 |
Exercised | $0.78 |
Outstanding, June 30, 2014 | 2,130,000 |
Outstanding, June 30, 2014 | $1.31 |
Options exercisable: | ' |
30-Jun-14 | 1,180,000 |
30-Jun-14 | $0.94 |
ACCOUNTING_FOR_STOCK_BASED_COM5
ACCOUNTING FOR STOCK BASED COMPENSATION (Details) - Schedule of service-based stock option activity, and related Information (Service Based Stock Options [Member], USD $) | 6 Months Ended |
Jun. 30, 2014 | |
Service Based Stock Options [Member] | ' |
ACCOUNTING FOR STOCK BASED COMPENSATION (Details) - Schedule of service-based stock option activity, and related Information [Line Items] | ' |
Outstanding, January 1, 2014 | 787,000 |
Outstanding, January 1, 2014 | $2.65 |
Canceled/Expired | -190,000 |
Canceled/Expired | $3.02 |
Outstanding, June 30, 2014 | 597,000 |
Outstanding, June 30, 2014 | $2.53 |
Options exercisable: | ' |
30-Jun-14 | 597,000 |
30-Jun-14 | $2.53 |
ACCOUNTING_FOR_STOCK_BASED_COM6
ACCOUNTING FOR STOCK BASED COMPENSATION (Details) - Schedule of share-based compensation expense, components by equity type (USD $) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
ACCOUNTING FOR STOCK BASED COMPENSATION (Details) - Schedule of share-based compensation expense, components by equity type [Line Items] | ' | ' | ' | ' | ' |
Share Based Compensation | $199,200 | $22,649 | $72,233 | $80,533 | $163,133 |
Restricted Stock [Member] | ' | ' | ' | ' | ' |
ACCOUNTING FOR STOCK BASED COMPENSATION (Details) - Schedule of share-based compensation expense, components by equity type [Line Items] | ' | ' | ' | ' | ' |
Share Based Compensation | ' | 22,649 | 23,001 | 80,533 | 64,668 |
Performance Shares [Member] | ' | ' | ' | ' | ' |
ACCOUNTING FOR STOCK BASED COMPENSATION (Details) - Schedule of share-based compensation expense, components by equity type [Line Items] | ' | ' | ' | ' | ' |
Share Based Compensation | ' | ' | $49,232 | ' | $98,465 |
SEGMENT_INFORMATION_Details
SEGMENT INFORMATION (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
SEGMENT INFORMATION (Details) [Line Items] | ' | ' | ' | ' |
Number of Reportable Segments | ' | ' | 2 | ' |
United States [Member] | ' | ' | ' | ' |
SEGMENT INFORMATION (Details) [Line Items] | ' | ' | ' | ' |
Revenue, Net | $7,429,777 | $6,783,504 | $14,048,676 | $11,650,350 |
China [Member] | ' | ' | ' | ' |
SEGMENT INFORMATION (Details) [Line Items] | ' | ' | ' | ' |
Revenue, Net | $837,553 | $204,047 | $1,105,082 | $450,505 |
SEGMENT_INFORMATION_Details_Sc
SEGMENT INFORMATION (Details) - Schedule of financial information by reportable segment (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Net sales by segment: | ' | ' | ' | ' |
Net sales by segment | $10,438,916 | $8,704,886 | $19,624,247 | $15,501,875 |
Segment income: | ' | ' | ' | ' |
Segment income | 2,188,802 | 1,677,197 | 3,929,413 | 2,847,194 |
Other unallocated amounts: | ' | ' | ' | ' |
Corporate expenses | -920,425 | -959,948 | -1,858,987 | -1,885,538 |
Interest and other income - net | -7,490 | 200,550 | -37,829 | 215,257 |
Consolidated income before income tax (benefit) | 1,260,887 | 917,799 | 2,032,597 | 1,176,913 |
Depreciation and amortization by segment: | ' | ' | ' | ' |
Depreciation and amortization by segment | 118,177 | 87,254 | 236,808 | 168,200 |
Capital expenditures by segment: | ' | ' | ' | ' |
Capital expenditures by segment | ' | ' | 196,954 | 185,594 |
Network Solutions [Member] | ' | ' | ' | ' |
Net sales by segment: | ' | ' | ' | ' |
Net sales by segment | 7,601,813 | 5,954,153 | 13,991,671 | 9,747,979 |
Segment income: | ' | ' | ' | ' |
Segment income | 2,197,081 | 1,525,206 | 3,712,666 | 2,312,022 |
Depreciation and amortization by segment: | ' | ' | ' | ' |
Depreciation and amortization by segment | 40,845 | 28,244 | 75,114 | 55,424 |
Capital expenditures by segment: | ' | ' | ' | ' |
Capital expenditures by segment | 92,734 | 22,060 | 162,691 | 52,215 |
Test and Measurement [Member] | ' | ' | ' | ' |
Net sales by segment: | ' | ' | ' | ' |
Net sales by segment | 2,837,103 | 2,750,733 | 5,632,576 | 5,753,896 |
Segment income: | ' | ' | ' | ' |
Segment income | -8,279 | 151,991 | 216,747 | 535,172 |
Depreciation and amortization by segment: | ' | ' | ' | ' |
Depreciation and amortization by segment | 77,332 | 59,010 | 161,694 | 112,776 |
Capital expenditures by segment: | ' | ' | ' | ' |
Capital expenditures by segment | 3,758 | 104,414 | 34,263 | 133,379 |
Continuing Operations Only [Member] | ' | ' | ' | ' |
Capital expenditures by segment: | ' | ' | ' | ' |
Capital expenditures by segment | $96,492 | $126,474 | $196,954 | $185,594 |
SEGMENT_INFORMATION_Details_Sc1
SEGMENT INFORMATION (Details) - Schedule of segment reporting information total assets by segment (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Total assets by segment: | ' | ' |
Total assets by segment | $19,979,126 | $17,920,295 |
Corporate assets, principally cash and cash equivalents and deferred and current taxes | 15,761,094 | 25,516,736 |
Total consolidated assets | 35,740,220 | 43,437,031 |
Network Solutions [Member] | ' | ' |
Total assets by segment: | ' | ' |
Total assets by segment | 12,217,747 | 9,649,681 |
Test and Measurement [Member] | ' | ' |
Total assets by segment: | ' | ' |
Total assets by segment | $7,761,379 | $8,270,614 |
SEGMENT_INFORMATION_Details_Sc2
SEGMENT INFORMATION (Details) - Schedule of net consolidated sales from operations by region (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
SEGMENT INFORMATION (Details) - Schedule of net consolidated sales from operations by region [Line Items] | ' | ' | ' | ' |
Revenues | $10,438,916 | $8,704,886 | $19,624,247 | $15,501,875 |
Americas [Member] | ' | ' | ' | ' |
SEGMENT INFORMATION (Details) - Schedule of net consolidated sales from operations by region [Line Items] | ' | ' | ' | ' |
Revenues | 8,059,115 | 7,195,063 | 15,103,189 | 12,503,811 |
Europe, Middle East, Africa [Member] | ' | ' | ' | ' |
SEGMENT INFORMATION (Details) - Schedule of net consolidated sales from operations by region [Line Items] | ' | ' | ' | ' |
Revenues | 1,282,804 | 1,030,444 | 2,803,800 | 2,003,209 |
Asia Pacific [Member] | ' | ' | ' | ' |
SEGMENT INFORMATION (Details) - Schedule of net consolidated sales from operations by region [Line Items] | ' | ' | ' | ' |
Revenues | $1,096,997 | $479,379 | $1,717,258 | $994,855 |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Details) (USD $) | 6 Months Ended |
Jun. 30, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Warranties Period of Product | '1 year |
Lease Expiration 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 |
Line of Credit Facility, Borrowing Capacity, Description | 'The Company maintains a line of credit with a 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 (U.S. Treasury bills) and, under the terms and conditions of the loan agreement, the facility is fully secured by the Company's money fund account and short-term investment holdings held with the bank. |
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 |
Long-term Line of Credit | 0 |
Line of Credit Facility, Maximum Borrowing Capacity | $4,500,000 |
STOCK_REPURCHASE_Details
STOCK REPURCHASE (Details) (USD $) | 6 Months Ended | |
Jun. 30, 2014 | Apr. 09, 2014 | |
STOCK REPURCHASE (Details) [Line Items] | ' | ' |
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | ' | 4,815,110 |
Sale of Stock, Price Per Share (in Dollars per share) | ' | $2 |
Description of Restricted Stock Awarded | 'the vesting of 10/12 th of the restricted stock of the Company previously awarded to Messrs. | ' |
Agreement Lock Up Period | '180 years | ' |
Subsidiaries [Member] | ' | ' |
STOCK REPURCHASE (Details) [Line Items] | ' | ' |
Common Stock Shares Held by Subsidiary | 6,472,666 | ' |
Percentage of Company Shares Held by Subsidiary | 26.90% | ' |