Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Mar. 20, 2015 | Jun. 30, 2014 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | WIRELESS TELECOM GROUP INC | ||
Document Type | 10-K | ||
Current Fiscal Year End Date | -19 | ||
Entity Common Stock, Shares Outstanding | 19,496,455 | ||
Entity Public Float | $50,762,021 | ||
Amendment Flag | FALSE | ||
Entity Central Index Key | 878828 | ||
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-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $10,723,513 | $16,599,249 |
Accounts receivable - net of allowance for doubtful accounts of $51,421 and $135,742 for 2014 and 2013, respectively | 5,106,241 | 5,357,769 |
Inventories – net of reserves of $1,037,247 and $765,413, respectively | 8,541,077 | 8,169,276 |
Deferred income taxes - current | 2,026,269 | 1,462,552 |
Prepaid expenses and other current assets | 835,250 | 720,229 |
TOTAL CURRENT ASSETS | 27,232,350 | 32,309,075 |
PROPERTY, PLANT AND EQUIPMENT - NET | 1,689,289 | 1,609,427 |
OTHER ASSETS: | ||
Goodwill | 1,351,392 | 1,351,392 |
Deferred income taxes – non-current | 5,263,380 | 7,454,935 |
Other assets | 752,511 | 712,202 |
TOTAL OTHER ASSETS | 7,367,283 | 9,518,529 |
TOTAL ASSETS | 36,288,922 | 43,437,031 |
CURRENT LIABILITIES: | ||
Accounts payable | 1,185,230 | 1,459,594 |
Accrued expenses and other current liabilities | 1,307,043 | 1,523,931 |
Equipment leases payable – current | 134,230 | 120,103 |
TOTAL CURRENT LIABILITIES | 2,626,503 | 3,103,628 |
LONG TERM LIABILITIES: | ||
Equipment leases payable | 32,054 | 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, 29,510,891 and 29,232,557 shares issued, 19,496,455 and 24,033,231 shares outstanding, respectively | 295,109 | 292,326 |
Additional paid-in capital | 39,530,325 | 38,970,783 |
Retained earnings | 13,124,172 | 10,700,020 |
Treasury stock, at cost – 10,014,436 and 5,199,326 shares, respectively | -19,319,241 | -9,689,022 |
33,630,365 | 40,274,107 | |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $36,288,922 | $43,437,031 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Allowance for doubtful accounts (in Dollars) | $51,421 | $135,742 |
Inventories, net of reserves (in Dollars) | $1,037,247 | $765,413 |
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 | 29,510,891 | 29,232,557 |
Common stock, shares outstanding | 19,496,455 | 24,033,231 |
Treasury stock, shares | 10,014,436 | 5,199,326 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
NET SALES | $40,337,368 | $33,825,073 |
COST OF SALES | 21,293,675 | 17,696,723 |
GROSS PROFIT | 19,043,693 | 16,128,350 |
OPERATING EXPENSES | ||
Research and development | 3,379,920 | 2,645,070 |
Sales and marketing | 5,487,192 | 4,858,239 |
General and administrative | 5,497,579 | 6,429,278 |
TOTAL OPERATING EXPENSES | 14,364,691 | 13,932,587 |
OPERATING INCOME | 4,679,002 | 2,195,763 |
OTHER EXPENSE (INCOME) - NET | 90,132 | -370,778 |
INCOME FROM OPERATIONS BEFORE PROVISION FOR (BENEFIT) FROM INCOME TAXES | 4,588,870 | 2,566,541 |
PROVISION FOR (BENEFIT) FROM INCOME TAXES | 2,164,718 | -1,275,659 |
NET INCOME | $2,424,152 | $3,842,200 |
INCOME PER COMMON SHARE: | ||
Basic (in Dollars per share) | $0.12 | $0.16 |
Diluted (in Dollars per share) | $0.11 | $0.16 |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | ||
Basic (in Shares) | 20,643,470 | 23,935,486 |
Diluted (in Shares) | 21,800,700 | 24,534,162 |
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, 2012 | $290,126 | $38,226,921 | $6,857,820 | ($9,459,672) | $35,915,195 |
BALANCE (in Shares) at Dec. 31, 2012 | 29,012,557 | ||||
Net income | 3,842,200 | 3,842,200 | |||
Restricted stock issued | 2,200 | -2,200 | |||
Restricted stock issued (in Shares) | 220,000 | ||||
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 |
BALANCE (in Shares) at Dec. 31, 2013 | 29,232,557 | 24,033,231 | |||
Net income | 2,424,152 | 2,424,152 | |||
Restricted stock issued | 800 | -800 | |||
Restricted stock issued (in Shares) | 80,000 | ||||
Forfeiture of restricted stock | -67 | 67 | |||
Forfeiture of restricted stock (in Shares) | -6,666 | ||||
Issuance of shares in connection with stock options exercised | 2,050 | 203,350 | 205,400 | ||
Issuance of shares in connection with stock options exercised (in Shares) | 205,000 | ||||
Stock compensation expense | 356,925 | 356,925 | |||
Repurchase of treasury stock | -9,630,219 | -9,630,219 | |||
BALANCE at Dec. 31, 2014 | $295,109 | $39,530,325 | $13,124,172 | ($19,319,241) | $33,630,365 |
BALANCE (in Shares) at Dec. 31, 2014 | 29,510,891 | 19,496,455 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
CASH FLOW FROM OPERATING ACTIVITIES: | ||
Net income | $2,424,152 | $3,842,200 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 370,271 | 344,577 |
Stock compensation expense | 356,925 | 746,062 |
Realized gain on sale of non-marketable security | -161,500 | |
Realized gain on sale of building | -188,403 | |
Deferred income taxes | 1,627,838 | -1,705,892 |
Provision for (recovery of) doubtful accounts | -84,321 | 78,409 |
Inventory reserves | 271,834 | 143,417 |
Changes in assets and liabilities: | ||
Accounts receivable | 335,849 | 239,837 |
Inventories | -643,635 | -23,058 |
Prepaid expenses and other assets | -155,330 | -86,489 |
Accounts payable, accrued expenses and other current liabilities | -491,252 | 267,930 |
Net cash provided by operating activities | 4,012,331 | 3,497,090 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Capital expenditures | -300,701 | -504,400 |
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 | -300,701 | 3,052,019 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Payments of mortgage note | -2,629,215 | |
Repayments on equipment lease payable | -162,547 | -60,808 |
Proceeds from exercise of stock options | 205,400 | |
Repurchase of treasury stock | -9,630,219 | -229,350 |
Net cash (used for) financing activities | -9,587,366 | -2,919,373 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | -5,875,736 | 3,629,736 |
Cash and cash equivalents, at beginning of year | 16,599,249 | 12,969,513 |
CASH AND CASH EQUIVALENTS, AT END OF YEAR | 10,723,513 | 16,599,249 |
Cash paid during the year for: | ||
Taxes | 778,617 | 290,194 |
Interest | 115,103 | |
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES: | ||
Capital expenditures | -149,432 | -240,206 |
Equipment lease payable | $149,432 | $240,206 |
DESCRIPTION_OF_COMPANY_AND_SUM
DESCRIPTION OF COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
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, network solutions and test and measurement. The network solutions segment is comprised primarily of the operations of Microlab. The test and measurement segment is comprised primarily of the operations of Boonton and Noisecom. | |||||||||
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, Purchases 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. | |||||||||
The Company has limited concentration of credit risk in accounts receivable 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 to a lesser extent 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. | |||||||||
For the year ended December 31, 2014, one customer accounted for approximately 10% of the Company’s total consolidated sales. For the year ended December 31, 2013, one customer accounted for 11% of total consolidated sales and 0 other single customer accounted for 10% or more of total consolidated sales. At December 31, 2014, one customer represented 11% of the Company’s gross accounts receivable balance. At December 31, 2013, 0 single customer represented 10% or more of the Company’s gross accounts receivable balance. | |||||||||
For the year ended December 31 2014, two third-party suppliers each accounted for approximately 12% of the Company’s total consolidated inventory purchases. For the year ended December 31, 2013, two third-party suppliers each accounted for 11% of the Company’s total consolidated inventory purchases. 0 other third-party supplier accounted for 10% or more of the Company’s total consolidated inventory purchases for either of the years ended 2014 or 2013. | |||||||||
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. | |||||||||
Cash and Cash Equivalents: | |||||||||
The Company considers all highly liquid investments purchased with maturities of three months or less at the date of purchase 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, 2014, 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 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 $1,037,247 and $765,413 as of December 31, 2014 and 2013, respectively. | |||||||||
Inventories consist of: | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Raw materials | $ | 4,161,734 | $ | 5,028,743 | |||||
Work-in-process | 735,364 | 470,983 | |||||||
Finished goods | 3,643,979 | 2,669,550 | |||||||
$ | 8,541,077 | $ | 8,169,276 | ||||||
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 it is more-likely-than-not, the estimated fair value of a reporting unit 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, 2014 and 2013 relates to one of the Company’s reporting units, Microlab. Management’s qualitative assessment performed in the fourth quarters of 2014 and 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. | |||||||||
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, 2014 and 2013 were $3,379,920 and $2,645,070, respectively. | |||||||||
Advertising Costs: | |||||||||
Advertising expenses are charged to operations during the year in which they are incurred and aggregated $226,593 and $302,269 for the years ended December 31, 2014 and 2013, 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, a majority of which has been generated by a history of net operating losses and determines the necessity for a valuation allowance. The Company evaluates which portion, if any, will more likely than not be realized by offsetting future taxable income, taking into consideration any limitations that may exist on its use of its net operating loss carry-forwards. | |||||||||
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, 2014 and 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 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 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, 2014 and 2013. | |||||||||
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, | |||||||||
2014 | 2013 | ||||||||
Weighted average number of common shares outstanding — Basic | 20,643,470 | 23,935,486 | |||||||
Potentially dilutive stock options | 1,157,230 | 598,676 | |||||||
Weighted average number of common and equivalent shares outstanding-Diluted | 21,800,700 | 24,534,162 | |||||||
Common stock equivalents are included in the diluted income 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 equivalents not included in diluted income per share, because the effects are anti-dilutive, was approximately 1,610,000 and 2,480,000 for 2014 and 2013, respectively. | |||||||||
Subsequent events: | |||||||||
The Company has evaluated subsequent events and 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 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 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 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 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, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Property, Plant and Equipment Disclosure [Text Block] | NOTE 2 - | PROPERTY, PLANT AND EQUIPMENT: | |||||||
Property, plant and equipment, consist of the following: | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Machinery and equipment | $ | 5,053,575 | $ | 4,656,346 | |||||
Furniture and fixtures | 123,808 | 110,444 | |||||||
Transportation equipment | 157,677 | 157,677 | |||||||
Leasehold improvements | 984,105 | 984,105 | |||||||
6,319,165 | 5,908,572 | ||||||||
Less: accumulated depreciation | 4,629,876 | 4,299,145 | |||||||
$ | 1,689,289 | $ | 1,609,427 | ||||||
Depreciation expense of $370,271 and $344,577 was recorded for the years ended December 31, 2014 and 2013, respectively. |
OTHER_ASSETS
OTHER ASSETS | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Disclosure Text Block Supplement [Abstract] | |||||||||
Other Assets Disclosure [Text Block] | NOTE 3 - | OTHER ASSETS: | |||||||
Other assets consist of the following: | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Product demo assets | $ | 694,758 | $ | 653,436 | |||||
Security deposit | 50,000 | 50,000 | |||||||
Miscellaneous | 7,753 | 8,766 | |||||||
Total | $ | 752,511 | $ | 712,202 | |||||
Product demo assets are net of reserves of $744,904 and $625,506 for the years ended December 31, 2014 and 2013, respectively. |
ACCRUED_EXPENSES_AND_OTHER_CUR
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
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, | |||||||||
2014 | 2013 | ||||||||
Payroll and related benefits | $ | 911,215 | $ | 960,559 | |||||
Commissions | 94,751 | 152,427 | |||||||
Goods received not invoiced | 123,683 | 117,907 | |||||||
Professional fees | 51,856 | 100,242 | |||||||
Sales and use tax | 79,339 | 105,378 | |||||||
Other | 46,199 | 87,418 | |||||||
Total | $ | 1,307,043 | $ | 1,523,931 | |||||
STOCK_REPURCHASE
STOCK REPURCHASE | 12 Months Ended | |
Dec. 31, 2014 | ||
Disclosure Text Block Supplement [Abstract] | ||
Treasury Stock [Text Block] | NOTE 5 - | STOCK REPURCHASE: |
In April 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 its largest shareholder at the time at a cost of $9,630,219, or $2.00 per share. The Company funded the transaction from available cash. |
SHAREHOLDERS_EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||||
Stockholders' Equity Note Disclosure [Text Block] | NOTE 6 - | SHAREHOLDERS’ EQUITY: | |||||||||||||
Incentive Compensation Plan: | |||||||||||||||
In 2012, the Company’s Board of Directors and shareholders approved the Company’s 2012 Incentive Compensation Plan (the “2012 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 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 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 December 31, 2014, there were 2,335,000 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 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. | |||||||||||||||
The following summarizes the components of stock-based compensation expense by equity instrument for the years ended December 31: | |||||||||||||||
2014 | 2013 | ||||||||||||||
Performance-Based Stock Options | $ | 146,838 | $ | 590,794 | |||||||||||
Performance-Based Restricted Common Stock | 29,954 | — | |||||||||||||
Service-Based Restricted Common Stock | 180,133 | 155,268 | |||||||||||||
Total Share-Based Compensation Expense | $ | 356,925 | $ | 746,062 | |||||||||||
Stock-based compensation for the years ended 2014 and 2013 is included in general and administrative expenses in the accompanying consolidated statement of operations. | |||||||||||||||
Restricted common stock awards: | |||||||||||||||
In June 2014, the Company granted 80,000 shares of restricted common stock to certain directors of the Company under the 2012 Plan. The fair market value of 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, provided that the director’s service continues through the vesting date. The total compensation expense to be recognized over the vesting period is $199,200. | |||||||||||||||
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, 2014 and 2013 under the 2012 Plan: | |||||||||||||||
Year ended December 31, 2014 | Number of | Fair Market | |||||||||||||
Shares | Value per | ||||||||||||||
Individuals | Granted | Granted Share | Vesting Date | ||||||||||||
Board of Directors | 80,000 | $2.49 | Next Annual Meeting | (June 2015) | |||||||||||
Year ended December 31, 2013 | Number of | Fair Market | |||||||||||||
Shares | Value 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 | |||||||||||||||
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, 2014 and 2013, and changes during the years ended December 31, 2014 and 2013 are presented below: | |||||||||||||||
Weighted Average | |||||||||||||||
Grant Date | |||||||||||||||
Non-vested Shares | Number of Shares | Fair Value | |||||||||||||
Non-vested at January 1, 2013 | 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 | ||||||||||||
Forfeited | (6,666 | ) | $ | 1.51 | |||||||||||
Granted | 80,000 | $ | 2.49 | ||||||||||||
Vested | (113,334 | ) | $ | 1.51 | |||||||||||
Non-vested at December 31, 2014 | 180,000 | $ | 2.09 | ||||||||||||
Under the terms of the performance-based restricted common stock award agreements (for the 100,000 awards granted in 2013), 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 award 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 2013, the Company’s Board of Directors adopted specific revenue and earnings performance targets as vesting conditions. During the three-months ended September 30, 2014, management determined the performance conditions related to these restricted stock awards are probable to be achieved. Accordingly, the Company commenced amortization of the fair market value of these awards over the implicit service period. If management determines in future periods the achievement of performance conditions are probable to occur sooner than expected, the Company will accelerate the expensing of any unamortized balance as of that determination date. | |||||||||||||||
As of December 31, 2014, the unearned compensation related to Company granted restricted common stock is $246,646 of which $99,600 (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 meeting to be held in June 2015, the vesting date. The remaining balance of $147,046 (pertaining to 100,000 performance-based restricted common stock awards issued in 2013) will be amortized on a straight-line basis through December 31, 2017, the implicit service period. | |||||||||||||||
Performance-based stock option awards: | |||||||||||||||
A summary of performance-based stock option activity, and related information for the years ended December 31 2014 and 2013 follows: | |||||||||||||||
Options | Weighted Average | ||||||||||||||
Exercise Price | |||||||||||||||
Outstanding, January 1, 2013 | 1,300,000 | $ | 0.93 | ||||||||||||
Granted | 950,000 | $ | 1.77 | ||||||||||||
Forfeited | — | — | |||||||||||||
Expired | — | — | |||||||||||||
Outstanding, December 31, 2013 | 2,250,000 | $ | 1.28 | ||||||||||||
Granted | — | — | |||||||||||||
Vested | — | — | |||||||||||||
Exercised | (180,000 | ) | $ | 0.78 | |||||||||||
Forfeited | — | — | |||||||||||||
Expired | — | — | |||||||||||||
Outstanding, December 31, 2014 | 2,070,000 | $ | 1.33 | ||||||||||||
Options exercisable: | |||||||||||||||
31-Dec-13 | 1,300,000 | $ | 0.93 | ||||||||||||
31-Dec-14 | 1,120,000 | $ | 0.95 | ||||||||||||
The aggregate intrinsic value of performance-based stock options outstanding as of December 31, 2014 and 2013 was $2,792,690 and $1,896,250, respectively. The aggregate intrinsic value of performance-based stock options exercisable as of December 31, 2014 and 2013 was $1,882,550 and $1,563,750, respectively. The aggregate intrinsic value of performance-based stock options exercised in 2014 was $320,850. | |||||||||||||||
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. During the three-months ended September 30, 2014, management determined the performance conditions related to these stock option awards are probable to be achieved. Accordingly, the Company commenced amortization of the fair market value of these awards over the implicit service period. If management determines in future periods the achievement of performance conditions are probable to occur sooner than expected, the Company will accelerate the expensing of any unamortized balance as of that determination date. | |||||||||||||||
The aggregate grant date fair-value of performance-based options granted in 2013 was $867,683, or approximately $0.91 per share. The fair value of these performance-based options was estimated on the date of grant using the Black-Scholes option pricing method and included the following range of assumptions; dividend yield of 0%, risk-free interest rate of 1.63% and expected option lives of 4 years. Volatility assumption was 67.43% and the forfeiture rate was assumed to be 0%. As of December 31, 2014, the unearned compensation related to these performance-based options (950,000 options at a weighted average per share exercise price of $1.77) is $720,844, which will be amortized on a straight-line basis through December 31, 2017, the implicit service period. | |||||||||||||||
The Company’s performance-based stock options granted prior to 2013 (consisting of 1,120,000 options) are fully amortized. For the years ended December 31, 2014 and 2013, the Company recorded compensation expense related to performance-based options in the amount of $146,838 and $590,794, respectively. | |||||||||||||||
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, January 1, 2013 | 862,000 | $ | 2.61 | ||||||||||||
Granted | — | — | |||||||||||||
Exercised | — | — | |||||||||||||
Forfeited | — | — | |||||||||||||
Expired | (75,000 | ) | $ | 2.26 | |||||||||||
Outstanding, December 31, 2013 | 787,000 | $ | 2.65 | ||||||||||||
Granted | — | — | |||||||||||||
Exercised | (25,000 | ) | $ | 2.6 | |||||||||||
Forfeited | — | — | |||||||||||||
Expired | (240,000 | ) | $ | 2.96 | |||||||||||
Outstanding, December 31, 2014 | 522,000 | $ | 2.51 | ||||||||||||
Options exercisable: | |||||||||||||||
31-Dec-13 | 787,000 | $ | 2.65 | ||||||||||||
31-Dec-14 | 522,000 | $ | 2.51 | ||||||||||||
The aggregate intrinsic value of service-based stock options exercisable as of December 31, 2014 and 2013 was $102,640 and $0, respectively. The aggregate intrinsic value of service-based stock options exercised in 2014 was $0. At December 31, 2014, the Company’s service-based stock options were fully amortized. | |||||||||||||||
The performance-based and service-based stock options outstanding and exercisable as of December 31, 2014 are summarized as follows: | |||||||||||||||
Range of | Weighted average | Options | Options | Weighted average | |||||||||||
exercise prices | exercise price | Outstanding | Exercisable | remaining life | |||||||||||
$0.75 - $1.42 | $ | 0.95 | 1,120,000 | 1,120,000 | 5.1 years | ||||||||||
$1.77 | $ | 1.77 | 950,000 | — | 8.7 years | ||||||||||
$2.28 - $3.02 | $ | 2.51 | 522,000 | 522,000 | 1.3 years | ||||||||||
2,592,000 | 1,642,000 | ||||||||||||||
SEGMENT_AND_RELATED_INFORMATIO
SEGMENT AND RELATED INFORMATION | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
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, network solutions and 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 Company’s operations (Noisecom) 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 as of and for the years ended December 31, 2014 and 2013 is presented below: | |||||||||
2014 | 2013 | ||||||||
Net sales by segment: | |||||||||
Network solutions | $ | 28,211,609 | $ | 22,031,549 | |||||
Test and measurement | 12,125,759 | 11,793,524 | |||||||
Total consolidated net sales and net sales of reportable segments | $ | 40,337,368 | $ | 33,825,073 | |||||
Segment income: | |||||||||
Network solutions | $ | 7,555,578 | $ | 5,558,019 | |||||
Test and measurement | 1,085,357 | 1,154,067 | |||||||
Income from reportable segments | 8,640,935 | 6,712,086 | |||||||
Other unallocated amounts: | |||||||||
Corporate expenses | (3,961,933 | ) | (4,516,323 | ) | |||||
Other (expense) income - net | (90,132 | ) | 370,778 | ||||||
Consolidated income from operations before income tax provision (benefit) | $ | 4,588,870 | $ | 2,566,541 | |||||
Depreciation by segment: | |||||||||
Network solutions | $ | 155,015 | $ | 127,148 | |||||
Test and measurement | 215,256 | 217,429 | |||||||
Total depreciation for reportable segments | $ | 370,271 | $ | 344,577 | |||||
Capital expenditures by segment (a): | |||||||||
Network solutions | $ | 202,934 | $ | 176,875 | |||||
Test and measurement | 97,767 | 327,525 | |||||||
Total consolidated capital expenditures by reportable segment | $ | 300,701 | $ | 504,400 | |||||
Total assets by segment: | |||||||||
Network solutions | $ | 11,088,332 | $ | 9,649,681 | |||||
Test and measurement | 7,006,853 | 8,270,614 | |||||||
Total assets for reportable segments | 18,095,185 | 17,920,295 | |||||||
Corporate assets, principally cash and cash equivalents and deferred and current taxes | 18,193,737 | 25,516,736 | |||||||
Total consolidated assets | $ | 36,288,922 | $ | 43,437,031 | |||||
(a) | Net of equipment lease payable of $149,432 (network solutions segment) and $240,206 (test and measurement) for 2014 and 2013, respectively. | ||||||||
In addition to its in-house sales staff, the Company uses various manufacturers’ representatives to sell its products. For the years ended December 31, 2014 and 2013, 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 Years | |||||||||
Ended December 31, | |||||||||
2014 | 2013 | ||||||||
Americas | $ | 30,480,266 | $ | 26,760,912 | |||||
Europe, Middle East, Africa (EMEA) | 5,212,246 | 4,434,037 | |||||||
Asia Pacific (APAC) | 4,644,856 | 2,630,124 | |||||||
$ | 40,337,368 | $ | 33,825,073 | ||||||
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, 2014 and 2013, sales in the United States amounted to $28,635,920 and $25,125,929, respectively. Shipments to the remaining regions presented above were largely concentrated in Germany (EMEA) and China (APAC). For the years ended December 31, 2014 and 2013, sales to Germany amounted to $1,257,457, or 24%, and $1,330,645, or 30%, of all shipments to the EMEA region, respectively. Sales to China, for the years ended December 31, 2014 and 2013, amounted to $3,263,277, or 70%, and $1,609,182, or 61%, of all shipments to the APAC region, respectively. There were no other shipments significantly concentrated in one country. |
RETIREMENT_PLAN
RETIREMENT PLAN | 12 Months Ended | |
Dec. 31, 2014 | ||
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, 2014 and 2013 amounted to $428,242 and $353,463, respectively. |
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
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: | |||||||||
Years Ended December 31, | |||||||||
2014 | 2013 | ||||||||
Current: | |||||||||
Federal | $ | 84,073 | $ | 42,036 | |||||
State | 452,807 | 388,196 | |||||||
Deferred: | |||||||||
Federal | 1,373,732 | (1,439,614 | ) | ||||||
State | 254,106 | (266,277 | ) | ||||||
$ | 2,164,718 | $ | (1,275,659 | ) | |||||
The following is a reconciliation of the maximum statutory federal tax rate to the Company’s effective tax relative to operations: | |||||||||
Years Ended December 31, | |||||||||
2014 | 2013 | ||||||||
% of | % of | ||||||||
Pre Tax | Pre Tax | ||||||||
Earnings | Earnings | ||||||||
Statutory federal income tax rate | 34 | % | 34 | % | |||||
Change in valuation allowance on deferred taxes | — | (94.4 | ) | ||||||
State income tax net of federal tax benefit | 8.7 | 16.3 | |||||||
Under accrual | 3 | — | |||||||
Permanent differences | 0.3 | (4.9 | ) | ||||||
Other | 1.2 | (0.7 | ) | ||||||
47.2 | % | (49.7 | )% | ||||||
In 2014, the difference between the statutory and the effective tax rate is primarily due to a current provision for state income taxes. In 2013, 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 evaluation of expected realization of future taxable income, as well as the current provision for state income taxes. | |||||||||
The components of deferred income taxes are as follows: | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Deferred tax assets: | |||||||||
Uniform capitalization of inventory costs for tax purposes | $ | 168,119 | $ | 225,022 | |||||
Reserves on inventories | 414,898 | 306,165 | |||||||
Allowances for doubtful accounts | 20,568 | 54,297 | |||||||
Accruals | 240,000 | 234,008 | |||||||
Tax effect of goodwill | (471,487 | ) | (435,450 | ) | |||||
Book depreciation over tax | (17,699 | ) | (252,204 | ) | |||||
Net operating loss carryforward | 13,947,384 | 15,797,783 | |||||||
14,301,783 | 15,929,621 | ||||||||
Valuation allowance for deferred tax assets | (7,012,134 | ) | (7,012,134 | ) | |||||
$ | 7,289,649 | $ | 8,917,487 | ||||||
The Company has a domestic net operating loss carryforward at December 31, 2014 of approximately $17,300,000 which expires in 2029. The Company also has a foreign net operating loss carryforward at December 31, 2014 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, 2014, 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, 2014, 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 2011. | |||||||||
The State of New Jersey conducted a field examination of one of the Company’s subsidiary tax returns (Microlab) for the years 2009 through 2012, which was completed in August 2014. Based on the results of the examination, the State of New Jersey did not propose any significant adjustments to the Company’s tax positions. | |||||||||
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. |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
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. | |||||
The Company is also responsible for its proportionate share of the cost of utilities, repairs, taxes, and insurance. The lease is set to expire on March 31, 2015 with future minimum lease payments of $85,668. As of the date of this report, the Company is in negotiations to extend the building lease term. | |||||
Rent expense, inclusive of common area maintenance charges, for the years ended December 31, 2014 and 2013 was $487,857 and $463,160, 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, 2014: | |||||
2015 | $ | 63,775 | |||
2016 | 63,775 | ||||
2017 | 63,775 | ||||
2018 | 58,461 | ||||
$ | 249,786 | ||||
In May 2014 and June 2013, the Company entered into Lease agreements for production test equipment. The agreements require monthly payments in the amount of approximately $6,500 and $10,000 respectively through May 2016 and June 2015. The remaining lease obligation for this equipment was approximately $170,000 at December 31, 2014. | |||||
Environmental Contingencies: | |||||
In 1982, the Company and the New Jersey Department of Environmental Protection (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. In 2014, the Company received approval for a groundwater permit from the NJDEP to carry out the final Remedial Action Work Plan and report. Under the final phase of the Remedial Action Work Plan, there will be limited and reduced monitoring and testing as long as concentrations at the site continue on a decreasing trend. | |||||
Expenditures incurred by the Company during the year ended December 31, 2014 and 2013 in connection with the site amounted to approximately $78,000 and $51,000, respectively. 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, 2014, the Company had 0 borrowings outstanding under the facility and approximately $4,500,000 of borrowing availability. The Company has 0 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, 2014 | |||||||||||||||||
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). | |||||||||||||||||
2014 | Quarter | ||||||||||||||||
1st | 2nd | 3rd | 4th | ||||||||||||||
Net sales | $ | 9,185 | $ | 10,439 | $ | 11,372 | $ | 9,341 | |||||||||
Gross profit | 4,266 | 4,930 | 5,765 | 4,083 | |||||||||||||
Operating income | 802 | 1,268 | 2,126 | 483 | |||||||||||||
Net income | 440 | 716 | 983 | 285 | |||||||||||||
Diluted net income per share | $ | 0.02 | $ | 0.03 | $ | 0.05 | $ | 0.01 | |||||||||
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 | 346 | 1,058 | 1,090 | 1,348 | |||||||||||||
Diluted net income per share | $ | 0.01 | $ | 0.04 | $ | 0.04 | $ | 0.05 | |||||||||
Accounting_Policies_by_Policy_
Accounting Policies, by Policy (Policies) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
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, network solutions and test and measurement. The network solutions segment is comprised primarily of the operations of Microlab. The test and measurement segment is comprised primarily of the operations of Boonton and Noisecom. | |||||||||
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, Purchases 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. | |||||||||
The Company has limited concentration of credit risk in accounts receivable 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 to a lesser extent 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. | |||||||||
For the year ended December 31, 2014, one customer accounted for approximately 10% of the Company’s total consolidated sales. For the year ended December 31, 2013, one customer accounted for 11% of total consolidated sales and 0 other single customer accounted for 10% or more of total consolidated sales. At December 31, 2014, one customer represented 11% of the Company’s gross accounts receivable balance. At December 31, 2013, 0 single customer represented 10% or more of the Company’s gross accounts receivable balance. | |||||||||
For the year ended December 31 2014, two third-party suppliers each accounted for approximately 12% of the Company’s total consolidated inventory purchases. For the year ended December 31, 2013, two third-party suppliers each accounted for 11% of the Company’s total consolidated inventory purchases. 0 other third-party supplier accounted for 10% or more of the Company’s total consolidated inventory purchases for either of the years ended 2014 or 2013. | |||||||||
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. | |||||||||
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents: | ||||||||
The Company considers all highly liquid investments purchased with maturities of three months or less at the date of purchase 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, 2014, 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 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 $1,037,247 and $765,413 as of December 31, 2014 and 2013, respectively. | |||||||||
Inventories consist of: | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Raw materials | $ | 4,161,734 | $ | 5,028,743 | |||||
Work-in-process | 735,364 | 470,983 | |||||||
Finished goods | 3,643,979 | 2,669,550 | |||||||
$ | 8,541,077 | $ | 8,169,276 | ||||||
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 it is more-likely-than-not, the estimated fair value of a reporting unit 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, 2014 and 2013 relates to one of the Company’s reporting units, Microlab. Management’s qualitative assessment performed in the fourth quarters of 2014 and 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. | |||||||||
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, 2014 and 2013 were $3,379,920 and $2,645,070, 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 $226,593 and $302,269 for the years ended December 31, 2014 and 2013, 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, a majority of which has been generated by a history of net operating losses and determines the necessity for a valuation allowance. The Company evaluates which portion, if any, will more likely than not be realized by offsetting future taxable income, taking into consideration any limitations that may exist on its use of its net operating loss carry-forwards. | |||||||||
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, 2014 and 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 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 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, 2014 and 2013. | |||||||||
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, | |||||||||
2014 | 2013 | ||||||||
Weighted average number of common shares outstanding — Basic | 20,643,470 | 23,935,486 | |||||||
Potentially dilutive stock options | 1,157,230 | 598,676 | |||||||
Weighted average number of common and equivalent shares outstanding-Diluted | 21,800,700 | 24,534,162 | |||||||
Common stock equivalents are included in the diluted income 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 equivalents not included in diluted income per share, because the effects are anti-dilutive, was approximately 1,610,000 and 2,480,000 for 2014 and 2013, respectively. | |||||||||
Subsequent Events, Policy [Policy Text Block] | Subsequent events: | ||||||||
The Company has evaluated subsequent events and 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 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 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 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 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, 2014 | |||||||||
Accounting Policies [Abstract] | |||||||||
Schedule of Inventory, Current [Table Text Block] | Inventories consist of: | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Raw materials | $ | 4,161,734 | $ | 5,028,743 | |||||
Work-in-process | 735,364 | 470,983 | |||||||
Finished goods | 3,643,979 | 2,669,550 | |||||||
$ | 8,541,077 | $ | 8,169,276 | ||||||
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, | |||||||||
2014 | 2013 | ||||||||
Weighted average number of common shares outstanding — Basic | 20,643,470 | 23,935,486 | |||||||
Potentially dilutive stock options | 1,157,230 | 598,676 | |||||||
Weighted average number of common and equivalent shares outstanding-Diluted | 21,800,700 | 24,534,162 |
PROPERTY_PLANT_AND_EQUIPMENT_T
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Property, Plant and Equipment [Table Text Block] | Property, plant and equipment, consist of the following: | ||||||||
Property, plant and equipment, consist of the following: | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Machinery and equipment | $ | 5,053,575 | $ | 4,656,346 | |||||
Furniture and fixtures | 123,808 | 110,444 | |||||||
Transportation equipment | 157,677 | 157,677 | |||||||
Leasehold improvements | 984,105 | 984,105 | |||||||
6,319,165 | 5,908,572 | ||||||||
Less: accumulated depreciation | 4,629,876 | 4,299,145 | |||||||
$ | 1,689,289 | $ | 1,609,427 |
OTHER_ASSETS_Tables
OTHER ASSETS (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Disclosure Text Block Supplement [Abstract] | |||||||||
Schedule of Other Assets [Table Text Block] | Other assets consist of the following: | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Product demo assets | $ | 694,758 | $ | 653,436 | |||||
Security deposit | 50,000 | 50,000 | |||||||
Miscellaneous | 7,753 | 8,766 | |||||||
Total | $ | 752,511 | $ | 712,202 |
ACCRUED_EXPENSES_AND_OTHER_CUR1
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Disclosure Text Block Supplement [Abstract] | |||||||||
Schedule of Accrued Liabilities [Table Text Block] | Accrued expenses and other current liabilities consist of the following: | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Payroll and related benefits | $ | 911,215 | $ | 960,559 | |||||
Commissions | 94,751 | 152,427 | |||||||
Goods received not invoiced | 123,683 | 117,907 | |||||||
Professional fees | 51,856 | 100,242 | |||||||
Sales and use tax | 79,339 | 105,378 | |||||||
Other | 46,199 | 87,418 | |||||||
Total | $ | 1,307,043 | $ | 1,523,931 |
SHAREHOLDERS_EQUITY_Tables
SHAREHOLDERS' EQUITY (Tables) | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
SHAREHOLDERS' EQUITY (Tables) [Line Items] | |||||||||||||||
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 instrument for the years ended December 31: | ||||||||||||||
2014 | 2013 | ||||||||||||||
Performance-Based Stock Options | $ | 146,838 | $ | 590,794 | |||||||||||
Performance-Based Restricted Common Stock | 29,954 | — | |||||||||||||
Service-Based Restricted Common Stock | 180,133 | 155,268 | |||||||||||||
Total Share-Based Compensation Expense | $ | 356,925 | $ | 746,062 | |||||||||||
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, 2014 and 2013, and changes during the years ended December 31, 2014 and 2013 are presented below: | ||||||||||||||
Weighted Average | |||||||||||||||
Grant Date | |||||||||||||||
Non-vested Shares | Number of Shares | Fair Value | |||||||||||||
Non-vested at January 1, 2013 | 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 | ||||||||||||
Forfeited | (6,666 | ) | $ | 1.51 | |||||||||||
Granted | 80,000 | $ | 2.49 | ||||||||||||
Vested | (113,334 | ) | $ | 1.51 | |||||||||||
Non-vested at December 31, 2014 | 180,000 | $ | 2.09 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable [Table Text Block] | The performance-based and service-based stock options outstanding and exercisable as of December 31, 2014 are summarized as follows: | ||||||||||||||
Range of | Weighted average | Options | Options | Weighted average | |||||||||||
exercise prices | exercise price | Outstanding | Exercisable | remaining life | |||||||||||
$0.75 - $1.42 | $ | 0.95 | 1,120,000 | 1,120,000 | 5.1 years | ||||||||||
$1.77 | $ | 1.77 | 950,000 | — | 8.7 years | ||||||||||
$2.28 - $3.02 | $ | 2.51 | 522,000 | 522,000 | 1.3 years | ||||||||||
2,592,000 | 1,642,000 | ||||||||||||||
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, 2014 and 2013 under the 2012 Plan: | ||||||||||||||
Year ended December 31, 2014 | Number of | Fair Market | |||||||||||||
Shares | Value per | ||||||||||||||
Individuals | Granted | Granted Share | Vesting Date | ||||||||||||
Board of Directors | 80,000 | $2.49 | Next Annual Meeting | (June 2015) | |||||||||||
Year ended December 31, 2013 | Number of | Fair Market | |||||||||||||
Shares | Value 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 2014 and 2013 follows: | ||||||||||||||
Options | Weighted Average | ||||||||||||||
Exercise Price | |||||||||||||||
Outstanding, January 1, 2013 | 1,300,000 | $ | 0.93 | ||||||||||||
Granted | 950,000 | $ | 1.77 | ||||||||||||
Forfeited | — | — | |||||||||||||
Expired | — | — | |||||||||||||
Outstanding, December 31, 2013 | 2,250,000 | $ | 1.28 | ||||||||||||
Granted | — | — | |||||||||||||
Vested | — | — | |||||||||||||
Exercised | (180,000 | ) | $ | 0.78 | |||||||||||
Forfeited | — | — | |||||||||||||
Expired | — | — | |||||||||||||
Outstanding, December 31, 2014 | 2,070,000 | $ | 1.33 | ||||||||||||
Options exercisable: | |||||||||||||||
31-Dec-13 | 1,300,000 | $ | 0.93 | ||||||||||||
31-Dec-14 | 1,120,000 | $ | 0.95 | ||||||||||||
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, January 1, 2013 | 862,000 | $ | 2.61 | ||||||||||||
Granted | — | — | |||||||||||||
Exercised | — | — | |||||||||||||
Forfeited | — | — | |||||||||||||
Expired | (75,000 | ) | $ | 2.26 | |||||||||||
Outstanding, December 31, 2013 | 787,000 | $ | 2.65 | ||||||||||||
Granted | — | — | |||||||||||||
Exercised | (25,000 | ) | $ | 2.6 | |||||||||||
Forfeited | — | — | |||||||||||||
Expired | (240,000 | ) | $ | 2.96 | |||||||||||
Outstanding, December 31, 2014 | 522,000 | $ | 2.51 | ||||||||||||
Options exercisable: | |||||||||||||||
31-Dec-13 | 787,000 | $ | 2.65 | ||||||||||||
31-Dec-14 | 522,000 | $ | 2.51 |
SEGMENT_AND_RELATED_INFORMATIO1
SEGMENT AND RELATED INFORMATION (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
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, 2014 and 2013 is presented below: | ||||||||
2014 | 2013 | ||||||||
Net sales by segment: | |||||||||
Network solutions | $ | 28,211,609 | $ | 22,031,549 | |||||
Test and measurement | 12,125,759 | 11,793,524 | |||||||
Total consolidated net sales and net sales of reportable segments | $ | 40,337,368 | $ | 33,825,073 | |||||
Segment income: | |||||||||
Network solutions | $ | 7,555,578 | $ | 5,558,019 | |||||
Test and measurement | 1,085,357 | 1,154,067 | |||||||
Income from reportable segments | 8,640,935 | 6,712,086 | |||||||
Other unallocated amounts: | |||||||||
Corporate expenses | (3,961,933 | ) | (4,516,323 | ) | |||||
Other (expense) income - net | (90,132 | ) | 370,778 | ||||||
Consolidated income from operations before income tax provision (benefit) | $ | 4,588,870 | $ | 2,566,541 | |||||
Depreciation by segment: | |||||||||
Network solutions | $ | 155,015 | $ | 127,148 | |||||
Test and measurement | 215,256 | 217,429 | |||||||
Total depreciation for reportable segments | $ | 370,271 | $ | 344,577 | |||||
Capital expenditures by segment (a): | |||||||||
Network solutions | $ | 202,934 | $ | 176,875 | |||||
Test and measurement | 97,767 | 327,525 | |||||||
Total consolidated capital expenditures by reportable segment | $ | 300,701 | $ | 504,400 | |||||
Total assets by segment: | |||||||||
Network solutions | $ | 11,088,332 | $ | 9,649,681 | |||||
Test and measurement | 7,006,853 | 8,270,614 | |||||||
Total assets for reportable segments | 18,095,185 | 17,920,295 | |||||||
Corporate assets, principally cash and cash equivalents and deferred and current taxes | 18,193,737 | 25,516,736 | |||||||
Total consolidated assets | $ | 36,288,922 | $ | 43,437,031 | |||||
(a) | Net of equipment lease payable of $149,432 (network solutions segment) and $240,206 (test and measurement) for 2014 and 2013, respectively. | ||||||||
Schedule Of Net Consolidated Sales By Region [Table Text Block] | Net consolidated sales from operations by region were as follows: | ||||||||
For the Years | |||||||||
Ended December 31, | |||||||||
2014 | 2013 | ||||||||
Americas | $ | 30,480,266 | $ | 26,760,912 | |||||
Europe, Middle East, Africa (EMEA) | 5,212,246 | 4,434,037 | |||||||
Asia Pacific (APAC) | 4,644,856 | 2,630,124 | |||||||
$ | 40,337,368 | $ | 33,825,073 |
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
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: | ||||||||
Years Ended December 31, | |||||||||
2014 | 2013 | ||||||||
Current: | |||||||||
Federal | $ | 84,073 | $ | 42,036 | |||||
State | 452,807 | 388,196 | |||||||
Deferred: | |||||||||
Federal | 1,373,732 | (1,439,614 | ) | ||||||
State | 254,106 | (266,277 | ) | ||||||
$ | 2,164,718 | $ | (1,275,659 | ) | |||||
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: | ||||||||
Years Ended December 31, | |||||||||
2014 | 2013 | ||||||||
% of | % of | ||||||||
Pre Tax | Pre Tax | ||||||||
Earnings | Earnings | ||||||||
Statutory federal income tax rate | 34 | % | 34 | % | |||||
Change in valuation allowance on deferred taxes | — | (94.4 | ) | ||||||
State income tax net of federal tax benefit | 8.7 | 16.3 | |||||||
Under accrual | 3 | — | |||||||
Permanent differences | 0.3 | (4.9 | ) | ||||||
Other | 1.2 | (0.7 | ) | ||||||
47.2 | % | (49.7 | )% | ||||||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | The components of deferred income taxes are as follows: | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Deferred tax assets: | |||||||||
Uniform capitalization of inventory costs for tax purposes | $ | 168,119 | $ | 225,022 | |||||
Reserves on inventories | 414,898 | 306,165 | |||||||
Allowances for doubtful accounts | 20,568 | 54,297 | |||||||
Accruals | 240,000 | 234,008 | |||||||
Tax effect of goodwill | (471,487 | ) | (435,450 | ) | |||||
Book depreciation over tax | (17,699 | ) | (252,204 | ) | |||||
Net operating loss carryforward | 13,947,384 | 15,797,783 | |||||||
14,301,783 | 15,929,621 | ||||||||
Valuation allowance for deferred tax assets | (7,012,134 | ) | (7,012,134 | ) | |||||
$ | 7,289,649 | $ | 8,917,487 |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Operating Leases of Lessee Disclosure [Table Text Block] | Future payments relative to continuing operations consist of the following at December 31, 2014: | ||||
2015 | $ | 63,775 | |||
2016 | 63,775 | ||||
2017 | 63,775 | ||||
2018 | 58,461 | ||||
$ | 249,786 |
SELECTED_QUARTERLY_FINANCIAL_D1
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
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). | ||||||||||||||||
2014 | Quarter | ||||||||||||||||
1st | 2nd | 3rd | 4th | ||||||||||||||
Net sales | $ | 9,185 | $ | 10,439 | $ | 11,372 | $ | 9,341 | |||||||||
Gross profit | 4,266 | 4,930 | 5,765 | 4,083 | |||||||||||||
Operating income | 802 | 1,268 | 2,126 | 483 | |||||||||||||
Net income | 440 | 716 | 983 | 285 | |||||||||||||
Diluted net income per share | $ | 0.02 | $ | 0.03 | $ | 0.05 | $ | 0.01 | |||||||||
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 | 346 | 1,058 | 1,090 | 1,348 | |||||||||||||
Diluted net income per share | $ | 0.01 | $ | 0.04 | $ | 0.04 | $ | 0.05 |
DESCRIPTION_OF_COMPANY_AND_SUM2
DESCRIPTION OF COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
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 | |
Number of significant customer respect to revenue | 1 | 1 |
Inventory Valuation Reserves (in Dollars) | $1,037,247 | $765,413 |
Goodwill (in Dollars) | 1,351,392 | 1,351,392 |
Discount to Customers (in Dollars) | 0 | |
Post Shipment Obligation Acceptances Provisions (in Dollars) | 0 | |
Research and Development Expense (in Dollars) | 3,379,920 | 2,645,070 |
Advertising Expense (in Dollars) | 226,593 | 302,269 |
Share Based Compensation Performance Condition Not Achieved (in Dollars) | 0 | |
Percentage of Largest Benefit to Tax Benefits Recognized | 50.00% | |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense (in Dollars) | $0 | $0 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in Shares) | 1,610,000 | 2,480,000 |
Customer One [Member] | ||
DESCRIPTION OF COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||
Number of significant customer respect to revenue | 0 | |
Concentration Risk, Percentage | 10.00% | 11.00% |
Number of Significant Customer Respect to Accounts Receivable | 1 | |
Percentage Of Accounts Receivable Attributable To Significant Customer | 11.00% | |
No Customer [Member] | ||
DESCRIPTION OF COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||
Concentration Risk, Percentage | 10.00% | |
Number of Significant Customer Respect to Accounts Receivable | 0 | |
Percentage Of Accounts Receivable Attributable To Significant Customer | 10.00% | |
Two Third Party Supplier [Member] | ||
DESCRIPTION OF COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||
Percentage Of Inventory | 12.00% | 11.00% |
No Other Third Party Supplier [Member] | ||
DESCRIPTION OF COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||
Percentage Of Inventory | 10.00% |
DESCRIPTION_OF_COMPANY_AND_SUM3
DESCRIPTION OF COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of inventory current (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Schedule of inventory current [Abstract] | ||
Raw materials | $4,161,734 | $5,028,743 |
Work-in-process | 735,364 | 470,983 |
Finished goods | 3,643,979 | 2,669,550 |
$8,541,077 | $8,169,276 |
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, 2014 | |
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, 2014 | Dec. 31, 2013 | |
Schedule of weighted average number of shares [Abstract] | ||
Weighted average number of common shares outstanding b Basic | 20,643,470 | 23,935,486 |
Potentially dilutive stock options | 1,157,230 | 598,676 |
Weighted average number of common and equivalent shares outstanding-Diluted | 21,800,700 | 24,534,162 |
PROPERTY_PLANT_AND_EQUIPMENT_D
PROPERTY, PLANT AND EQUIPMENT (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation | $370,271 | $344,577 |
PROPERTY_PLANT_AND_EQUIPMENT_D1
PROPERTY, PLANT AND EQUIPMENT (Details) - Property, Plant and Equipment (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment | $6,319,165 | $5,908,572 |
Less: accumulated depreciation | 4,629,876 | 4,299,145 |
1,689,289 | 1,609,427 | |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment | 5,053,575 | 4,656,346 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment | 123,808 | 110,444 |
Transportation Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment | 157,677 | 157,677 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment | $984,105 | $984,105 |
OTHER_ASSETS_Details
OTHER ASSETS (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Disclosure Text Block Supplement [Abstract] | ||
Other inventory demo reserve | $744,904 | $625,506 |
OTHER_ASSETS_Details_Other_ass
OTHER ASSETS (Details) - Other assets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Other Assets [Abstract] | ||
Product demo assets | $694,758 | $653,436 |
Security deposit | 50,000 | 50,000 |
Miscellaneous | 7,753 | 8,766 |
Total | $752,511 | $712,202 |
ACCRUED_EXPENSES_AND_OTHER_CUR2
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) - Accrued Expenses and Other Current Liabilities (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Accrued Expenses and Other Current Liabilities [Abstract] | ||
Payroll and related benefits | $911,215 | $960,559 |
Commissions | 94,751 | 152,427 |
Goods received not invoiced | 123,683 | 117,907 |
Professional fees | 51,856 | 100,242 |
Sales and use tax | 79,339 | 105,378 |
Other | 46,199 | 87,418 |
Total | $1,307,043 | $1,523,931 |
STOCK_REPURCHASE_Details
STOCK REPURCHASE (Details) (USD $) | 1 Months Ended | 12 Months Ended | |
Apr. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Disclosure Text Block Supplement [Abstract] | |||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 4,815,110 | ||
$9,630,219 | $9,630,219 | $229,350 | |
Sale of Stock, Price Per Share | $2 |
SHAREHOLDERS_EQUITY_Details
SHAREHOLDERS' EQUITY (Details) (USD $) | 3 Months Ended | 12 Months Ended | 1 Months Ended | |
Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | |
SHAREHOLDERS' EQUITY (Details) [Line Items] | ||||
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 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant (in Shares) | 2,335,000 | |||
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 | |||
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 | |||
Allocated Share-based Compensation Expense | $356,925 | $746,062 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Aggregate Intrinsic Value | 320,850 | |||
Share Based Compensation Arrangement by Share Based Payment Award Equity Instruments Other Than Options Grants in Period Aggregate Fair Value | 867,683 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.00% | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 1.63% | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 4 years | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 67.43% | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate, Maximum | 0.00% | |||
Share-based Compensation | 356,925 | 746,062 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | 0 | |||
Performance Shares [Member] | ||||
SHAREHOLDERS' EQUITY (Details) [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 10 years | |||
Allocated Share-based Compensation Expense | 146,838 | 590,794 | ||
Restricted Stock [Member] | ||||
SHAREHOLDERS' EQUITY (Details) [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year | |||
Share Based Compensation Arrangement by Share Based Payment Award Equity Instruments Other Than Options Grants in Period to Each Director (in Shares) | 80,000 | |||
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 | $1.63 | $2.49 | |
Allocated Share-based Compensation Expense | 180,133 | 155,268 | 199,200 | |
Adjustments to Additional Paid in Capital, Share-based Compensation, Restricted Stock Unit or Restricted Stock Award, Requisite Service Period Recognition | 246,646 | |||
Stock Based Compensation to be Amortized Next Fiscal Year | 99,600 | |||
Stock Based Compensation to be Amortized Vesting Period | Jun-15 | |||
Stock Based Compensation to be Amortized Depending on Certain Performance Conditions | 147,046 | |||
Performance Based Stock Options [Member] | ||||
SHAREHOLDERS' EQUITY (Details) [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted (in Shares) | 1,120,000 | 100,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | 2,792,690 | 1,896,250 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Aggregate Intrinsic Value | 1,882,550 | 1,563,750 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares) | 950,000 | 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 | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | 720,844 | |||
Share-based Compensation | 146,838 | 590,794 | ||
Service Based Stock Options [Member] | ||||
SHAREHOLDERS' EQUITY (Details) [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Aggregate Intrinsic Value | $102,640 | $0 |
SHAREHOLDERS_EQUITY_Details_Sc
SHAREHOLDERS' EQUITY (Details) - Schedule of share-based compensation expense, components by equity type (USD $) | 1 Months Ended | 12 Months Ended | |
Jun. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
SHAREHOLDERS' EQUITY (Details) - Schedule of share-based compensation expense, components by equity type [Line Items] | |||
Share Based Compensation | $356,925 | $746,062 | |
Performance Shares [Member] | |||
SHAREHOLDERS' EQUITY (Details) - Schedule of share-based compensation expense, components by equity type [Line Items] | |||
Share Based Compensation | 146,838 | 590,794 | |
Performance Based Restricted Common Stock Awards [Member] | |||
SHAREHOLDERS' EQUITY (Details) - Schedule of share-based compensation expense, components by equity type [Line Items] | |||
Share Based Compensation | 29,954 | ||
Restricted Stock [Member] | |||
SHAREHOLDERS' EQUITY (Details) - Schedule of share-based compensation expense, components by equity type [Line Items] | |||
Share Based Compensation | $199,200 | $180,133 | $155,268 |
SHAREHOLDERS_EQUITY_Details_Sc1
SHAREHOLDERS' EQUITY (Details) - Schedule of restricted common stock awards granted (Restricted Stock [Member], USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
SHAREHOLDERS' EQUITY (Details) - Schedule of restricted common stock awards granted [Line Items] | ||
Number of Shares Granted | 80,000 | 220,000 |
Board Of Directors [Member] | Performance Based Restricted Common Stock Awards [Member] | ||
SHAREHOLDERS' EQUITY (Details) - Schedule of restricted common stock awards granted [Line Items] | ||
Number of Shares Granted | 80,000 | 120,000 |
Fair Market Value per Granted Share (in Dollars per share) | $2.49 | $1.51 |
Vesting Date | Next Annual Meeting | Next Annual Meeting |
Chief Executive Officer [Member] | Performance Based Restricted Common Stock Awards [Member] | ||
SHAREHOLDERS' EQUITY (Details) - Schedule of restricted common stock awards granted [Line Items] | ||
Number of Shares Granted | 42,000 | |
Fair Market Value per Granted Share (in Dollars per share) | $1.77 | |
Vesting Date | Performance based | |
Chief Financial Officer [Member] | Performance Based Restricted Common Stock Awards [Member] | ||
SHAREHOLDERS' EQUITY (Details) - Schedule of restricted common stock awards granted [Line Items] | ||
Number of Shares Granted | 11,000 | |
Fair Market Value per Granted Share (in Dollars per share) | $1.77 | |
Vesting Date | Performance based | |
V P Of Sales And Marketing [Member] | Performance Based Restricted Common Stock Awards [Member] | ||
SHAREHOLDERS' EQUITY (Details) - Schedule of restricted common stock awards granted [Line Items] | ||
Number of Shares Granted | 26,000 | |
Fair Market Value per Granted Share (in Dollars per share) | $1.77 | |
Vesting Date | Performance based | |
Various Other Employees [Member] | Performance Based Restricted Common Stock Awards [Member] | ||
SHAREHOLDERS' EQUITY (Details) - Schedule of restricted common stock awards granted [Line Items] | ||
Number of Shares Granted | 21,000 | |
Fair Market Value per Granted Share (in Dollars per share) | $1.77 | |
Vesting Date | Performance based | |
Performance Based Restricted Common Stock Awards [Member] | ||
SHAREHOLDERS' EQUITY (Details) - Schedule of restricted common stock awards granted [Line Items] | ||
Number of Shares Granted | 220,000 |
SHAREHOLDERS_EQUITY_Details_Sc2
SHAREHOLDERS' EQUITY (Details) - Schedule of non-vested restricted stock activity (USD $) | 1 Months Ended | 12 Months Ended | ||
Jun. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
SHAREHOLDERS' EQUITY (Details) - Schedule of non-vested restricted stock activity [Line Items] | ||||
Weighted Average Grant Date Fair Value, Granted | $0.91 | |||
Restricted Stock [Member] | ||||
SHAREHOLDERS' EQUITY (Details) - Schedule of non-vested restricted stock activity [Line Items] | ||||
Number of Shares, Non-vested | 180,000 | 220,000 | 128,696 | |
Weighted Average Grant Date Fair Value, Non-vested | $2.09 | $1.63 | $1.15 | |
Number of Shares, Forfeited | -6,666 | |||
Weighted Average Grant Date Fair Value, Forfeited | $1.51 | |||
Number of Shares, Granted | 80,000 | 220,000 | ||
Weighted Average Grant Date Fair Value, Granted | $2.49 | $2.49 | $1.63 | |
Number of Shares, Vested | -113,334 | -128,696 | ||
Weighted Average Grant Date Fair Value, Vested | $1.51 | $1.15 |
SHAREHOLDERS_EQUITY_Details_Sc3
SHAREHOLDERS' EQUITY (Details) - Schedule of performance-based stock option activity, and related information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
SHAREHOLDERS' EQUITY (Details) - Schedule of performance-based stock option activity, and related information [Line Items] | |||
Options, Outstanding | 2,592,000 | ||
Options exercisable: | |||
Option, Options exercisable | 1,642,000 | ||
Performance Based Stock Options [Member] | |||
SHAREHOLDERS' EQUITY (Details) - Schedule of performance-based stock option activity, and related information [Line Items] | |||
Options, Outstanding | 2,070,000 | 2,250,000 | 1,300,000 |
Weighted Average Exercise Price, Outstanding | $1.33 | $1.28 | $0.93 |
Options, Granted | 950,000 | 950,000 | |
Weighted Average Exercise Price, Granted | $1.77 | ||
Exercised | -180,000 | ||
Exercised | $0.78 | ||
Options exercisable: | |||
Option, Options exercisable | 1,120,000 | 1,300,000 | |
Weighted Average Exercise Price, Options exercisable | $0.95 | $0.93 |
SHAREHOLDERS_EQUITY_Details_Sc4
SHAREHOLDERS' EQUITY (Details) - Schedule of service-based stock option activity, and related information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
SHAREHOLDERS' EQUITY (Details) - Schedule of service-based stock option activity, and related information [Line Items] | |||
Options, Outstanding | 2,592,000 | ||
Options exercisable: | |||
Options, Balance | 1,642,000 | ||
Service Based Stock Options [Member] | |||
SHAREHOLDERS' EQUITY (Details) - Schedule of service-based stock option activity, and related information [Line Items] | |||
Options, Outstanding | 522,000 | 787,000 | 862,000 |
Weighted Average Exercise Price, Outstanding | $2.51 | $2.65 | $2.61 |
Exercised | -25,000 | ||
Exercised | $2.60 | ||
Options, Canceled/Expired | -240,000 | -75,000 | |
Weighted Average Exercise Price, Canceled/Expired | $2.96 | $2.26 | |
Options exercisable: | |||
Options, Balance | 522,000 | 787,000 | |
Weighted Average Exercise Price, Balance | $2.51 | $2.65 |
SHAREHOLDERS_EQUITY_Details_Sc5
SHAREHOLDERS' EQUITY (Details) - Schedule of stock options outstanding and exercisable (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
SHAREHOLDERS' EQUITY (Details) - Schedule of stock options outstanding and exercisable [Line Items] | |
Options Outstanding | 2,592,000 |
Options Exercisable | 1,642,000 |
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) | $0.95 |
Options Outstanding | 1,120,000 |
Options Exercisable | 1,120,000 |
Weighted average remaining life | 5 years 36 days |
Exercise Price 1.77 [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 | 8 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) | $2.51 |
Options Outstanding | 522,000 |
Options Exercisable | 522,000 |
Weighted average remaining life | 1 year 109 days |
SEGMENT_AND_RELATED_INFORMATIO2
SEGMENT AND RELATED INFORMATION (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
SEGMENT AND RELATED INFORMATION (Details) [Line Items] | |||||||||||
Number of Reportable Segments | 2 | ||||||||||
Capital Lease Obligations Incurred | $149,432 | $240,206 | |||||||||
Number of Third Party Supplier Related to Percentage of Consolidated Inventory Purchased | 0 | ||||||||||
Entity-Wide Revenue, Major Sales Representative, Percentage | 10.00% | ||||||||||
Revenue, Net | 9,341,000 | 11,372,000 | 10,439,000 | 9,185,000 | 9,532,000 | 8,791,000 | 8,705,000 | 6,797,000 | |||
Network Solutions [Member] | |||||||||||
SEGMENT AND RELATED INFORMATION (Details) [Line Items] | |||||||||||
Capital Lease Obligations Incurred | 149,432 | ||||||||||
Test and Measurement [Member] | |||||||||||
SEGMENT AND RELATED INFORMATION (Details) [Line Items] | |||||||||||
Capital Lease Obligations Incurred | 240,206 | ||||||||||
United States [Member] | |||||||||||
SEGMENT AND RELATED INFORMATION (Details) [Line Items] | |||||||||||
Revenue, Net | 28,635,920 | 25,125,929 | |||||||||
Germany [Member] | |||||||||||
SEGMENT AND RELATED INFORMATION (Details) [Line Items] | |||||||||||
Revenue, Net | 1,257,457 | 1,330,645 | |||||||||
German Percentage of EMEA [Member] | |||||||||||
SEGMENT AND RELATED INFORMATION (Details) [Line Items] | |||||||||||
Revenue, Net Percentage | 24.00% | 30.00% | |||||||||
China [Member] | |||||||||||
SEGMENT AND RELATED INFORMATION (Details) [Line Items] | |||||||||||
Revenue, Net | $3,263,277 | $1,609,182 | |||||||||
Chinese Percentage of APAC [Member] | |||||||||||
SEGMENT AND RELATED INFORMATION (Details) [Line Items] | |||||||||||
Revenue, Net Percentage | 70.00% | 61.00% |
SEGMENT_AND_RELATED_INFORMATIO3
SEGMENT AND RELATED INFORMATION (Details) - Schedule of Segment Reporting Financial Information Including Total Assets by Segment (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | |||
Net sales by segment: | ||||
Net sales by segment | $40,337,368 | $33,825,073 | ||
Segment income: | ||||
Segment income | 8,640,935 | 6,712,086 | ||
Other unallocated amounts: | ||||
Corporate expenses | -3,961,933 | -4,516,323 | ||
Other (expense) income - net | -90,132 | 370,778 | ||
Consolidated income from operations before income tax provision (benefit) | 4,588,870 | 2,566,541 | ||
Depreciation by segment: | ||||
Depreciation by segment | 370,271 | 344,577 | ||
Capital expenditures by segment (a): | ||||
Capital expenditures by segment | 300,701 | 504,400 | ||
Total assets by segment: | ||||
Total assets by segment | 18,095,185 | 17,920,295 | ||
Corporate assets, principally cash and cash equivalents and deferred and current taxes | 18,193,737 | 25,516,736 | ||
Total consolidated assets | 36,288,922 | 43,437,031 | ||
Network Solutions [Member] | ||||
Net sales by segment: | ||||
Net sales by segment | 28,211,609 | 22,031,549 | ||
Segment income: | ||||
Segment income | 7,555,578 | 5,558,019 | ||
Depreciation by segment: | ||||
Depreciation by segment | 155,015 | 127,148 | ||
Capital expenditures by segment (a): | ||||
Capital expenditures by segment | 202,934 | [1] | 176,875 | [1] |
Total assets by segment: | ||||
Total assets by segment | 11,088,332 | 9,649,681 | ||
Test and Measurement [Member] | ||||
Net sales by segment: | ||||
Net sales by segment | 12,125,759 | 11,793,524 | ||
Segment income: | ||||
Segment income | 1,085,357 | 1,154,067 | ||
Depreciation by segment: | ||||
Depreciation by segment | 215,256 | 217,429 | ||
Capital expenditures by segment (a): | ||||
Capital expenditures by segment | 97,767 | [1] | 327,525 | [1] |
Total assets by segment: | ||||
Total assets by segment | 7,006,853 | 8,270,614 | ||
Continuing Operations Only [Member] | ||||
Capital expenditures by segment (a): | ||||
Capital expenditures by segment | $300,701 | [1] | $504,400 | [1] |
[1] | Net of equipment lease payable of $149,432 (network solutions segment) and $240,206 (test and measurement) for 2014 and 2013, respectively. |
SEGMENT_AND_RELATED_INFORMATIO4
SEGMENT AND RELATED INFORMATION (Details) - Schedule of net consolidated sales from operations by region (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
SEGMENT AND RELATED INFORMATION (Details) - Schedule of net consolidated sales from operations by region [Line Items] | ||
Revenues | $40,337,368 | $33,825,073 |
Americas [Member] | ||
SEGMENT AND RELATED INFORMATION (Details) - Schedule of net consolidated sales from operations by region [Line Items] | ||
Revenues | 30,480,266 | 26,760,912 |
Europe, Middle East, Africa [Member] | ||
SEGMENT AND RELATED INFORMATION (Details) - Schedule of net consolidated sales from operations by region [Line Items] | ||
Revenues | 5,212,246 | 4,434,037 |
Asia Pacific [Member] | ||
SEGMENT AND RELATED INFORMATION (Details) - Schedule of net consolidated sales from operations by region [Line Items] | ||
Revenues | $4,644,856 | $2,630,124 |
RETIREMENT_PLAN_Details
RETIREMENT PLAN (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Compensation and Retirement Disclosure [Abstract] | ||
Pension Contributions | $428,242 | $353,463 |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
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 | 17,300,000 |
Foreign Tax Authority [Member] | |
INCOME TAXES (Details) [Line Items] | |
Operating Loss Carryforwards | 23,400,000 |
Operating Loss Carryforwards, Valuation Allowance | $7,012,134 |
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, 2014 | Dec. 31, 2013 | |
Current: | ||
Federal | $84,073 | $42,036 |
State | 452,807 | 388,196 |
Deferred: | ||
Federal | 1,373,732 | -1,439,614 |
State | 254,106 | -266,277 |
$2,164,718 | ($1,275,659) |
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, 2014 | Dec. 31, 2013 | |
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% | |
State income tax net of federal tax benefit | 8.70% | 16.30% |
Under accrual | 3.00% | |
Permanent differences | 0.30% | -4.90% |
Other | 1.20% | -0.70% |
47.20% | -49.70% |
INCOME_TAXES_Details_Schedule_2
INCOME TAXES (Details) - Schedule of deferred tax assets and liabilities (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Deferred tax assets: | ||
Uniform capitalization of inventory costs for tax purposes | $168,119 | $225,022 |
Reserves on inventories | 414,898 | 306,165 |
Allowances for doubtful accounts | 20,568 | 54,297 |
Accruals | 240,000 | 234,008 |
Tax effect of goodwill | -471,487 | -435,450 |
Book depreciation over tax | -17,699 | -252,204 |
Net operating loss carryforward | 13,947,384 | 15,797,783 |
14,301,783 | 15,929,621 | |
Valuation allowance for deferred tax assets | -7,012,134 | -7,012,134 |
$7,289,649 | $8,917,487 |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
sqft | ||
Commitments and Contingencies Disclosure [Abstract] | ||
Warranties Period of Product | 1 year | |
Operating Leases Area (in Square Feet) | 45,700 | |
Lease Expiration Date | 31-Mar-15 | |
Operating Leases, Future Minimum Payments Due, Next Twelve Months | $85,668 | |
Lease Expense Included In Continuing Operations | 487,857 | 463,160 |
Lease Expiration Year | 2018 | |
Operating Leases Rent Expense Net in Year Three | 6,500 | |
Operating Leases Rent Expense Net in Year Two | 10,000 | |
Operating Leases, Rent Expense, Net | 170,000 | |
Litigation Settlement, Amount | 78,000 | 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 | |
Long-term Line of Credit | 0 | |
Line of Credit Facility, Maximum Borrowing Capacity | $4,500,000 | |
Number of Line of Credit Current Plans | 0 |
COMMITMENTS_AND_CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details) - Schedule of future lease payments relative to continuing operations (USD $) | Dec. 31, 2014 |
Schedule of future lease payments relative to continuing operations [Abstract] | |
2015 | $63,775 |
2016 | 63,775 |
2017 | 63,775 |
2018 | 58,461 |
$249,786 |
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, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | |
Summary of selected quarterly financial data [Abstract] | ||||||||||
Net sales | $9,341,000 | $11,372,000 | $10,439,000 | $9,185,000 | $9,532,000 | $8,791,000 | $8,705,000 | $6,797,000 | ||
Gross profit | 4,083,000 | 5,765,000 | 4,930,000 | 4,266,000 | 4,493,000 | 4,235,000 | 4,080,000 | 3,320,000 | 19,043,693 | 16,128,350 |
Operating income | 483,000 | 2,126,000 | 1,268,000 | 802,000 | 663,000 | 572,000 | 717,000 | 244,000 | 4,679,002 | 2,195,763 |
Net income | $285,000 | $983,000 | $716,000 | $440,000 | $1,348,000 | $1,090,000 | $1,058,000 | $346,000 | ||
Diluted net income per share (in Dollars per share) | $0.01 | $0.05 | $0.03 | $0.02 | $0.05 | $0.04 | $0.04 | $0.01 |