Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Nov. 09, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | WIRELESS TELECOM GROUP INC | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 19,626,455 | |
Amendment Flag | false | |
Entity Central Index Key | 878,828 | |
Entity Filer Category | Smaller Reporting Company | |
Document Period End Date | Sep. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 10,778,097 | $ 10,723,513 |
Accounts receivable - net of allowance for doubtful accounts of $56,333 and $51,421 for 2015 and 2014, respectively | 5,537,793 | 5,106,241 |
Inventories | 8,716,387 | 8,541,077 |
Deferred income taxes - current | 901,269 | 2,026,269 |
Prepaid expenses and other current assets | 326,289 | 835,250 |
TOTAL CURRENT ASSETS | 26,259,835 | 27,232,350 |
PROPERTY, PLANT AND EQUIPMENT - NET | 1,722,181 | 1,689,289 |
OTHER ASSETS: | ||
Goodwill | 1,351,392 | 1,351,392 |
Deferred income taxes - non-current | 6,171,458 | 5,263,380 |
Other assets | 693,153 | 752,511 |
TOTAL OTHER ASSETS | 8,216,003 | 7,367,283 |
TOTAL ASSETS | 36,198,019 | 36,288,922 |
CURRENT LIABILITIES: | ||
Accounts payable | 1,355,739 | 1,185,230 |
Accrued expenses and other current liabilities | 539,486 | 1,307,043 |
Equipment leases payable - current | 50,457 | 134,230 |
TOTAL CURRENT LIABILITIES | 1,945,682 | 2,626,503 |
LONG TERM LIABILITIES: | ||
Deferred rent | $ 22,301 | |
Equipment leases payable | $ 32,054 | |
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, 29,640,891 and 29,510,891 shares issued, 19,626,455 and 19,496,455 shares outstanding, respectively | $ 296,409 | $ 295,109 |
Additional paid-in-capital | 39,775,698 | 39,530,325 |
Retained earnings | 13,477,170 | 13,124,172 |
Treasury stock at cost, 10,014,436 shares | (19,319,241) | (19,319,241) |
TOTAL SHAREHOLDERS’ EQUITY | 34,230,036 | 33,630,365 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ 36,198,019 | $ 36,288,922 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 |
Allowance for doubtful accounts (in Dollars) | $ 56,333 | $ 51,421 |
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 | 29,640,891 | 29,510,891 |
Common stock, shares outstanding | 19,626,455 | 19,496,455 |
Treasury stock, shares | 10,014,436 | 10,014,436 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
NET SALES | $ 8,339,155 | $ 11,372,215 | $ 25,180,143 | $ 30,996,462 |
COST OF SALES | 4,715,944 | 5,607,564 | 14,126,798 | 16,036,139 |
GROSS PROFIT | 3,623,211 | 5,764,651 | 11,053,345 | 14,960,323 |
OPERATING EXPENSES | ||||
Research and development | 1,026,580 | 863,011 | 2,899,481 | 2,542,112 |
Sales and marketing | 1,224,559 | 1,359,197 | 3,911,997 | 4,058,417 |
General and administrative | 1,209,672 | 1,416,873 | 3,592,847 | 4,163,800 |
TOTAL OPERATING EXPENSES | 3,460,811 | 3,639,081 | 10,404,325 | 10,764,329 |
OPERATING INCOME | 162,400 | 2,125,570 | 649,020 | 4,195,994 |
OTHER EXPENSE - NET | 5,880 | 27,568 | 2,913 | 65,396 |
NET INCOME BEFORE INCOME TAXES | 156,520 | 2,098,002 | 646,107 | 4,130,598 |
PROVISION FOR INCOME TAXES | 81,381 | 1,114,828 | 293,109 | 1,991,535 |
NET INCOME | $ 75,139 | $ 983,174 | $ 352,998 | $ 2,139,063 |
INCOME PER COMMON SHARE: | ||||
BASIC (in Dollars per share) | $ 0 | $ 0.05 | $ 0.02 | $ 0.10 |
DILUTED (in Dollars per share) | $ 0 | $ 0.05 | $ 0.02 | $ 0.10 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
CASH FLOWS PROVIDED BY OPERATING ACTIVITIES | ||
Net income | $ 352,998 | $ 2,139,063 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 338,826 | 361,760 |
Share-based compensation expense | 223,273 | 234,801 |
Deferred rent | 22,301 | |
Deferred income taxes | 216,922 | 1,536,650 |
Provision for doubtful accounts | 4,912 | (68,077) |
Inventory reserves | 35,599 | 318,397 |
Changes in assets and liabilities: | ||
Accounts receivable | (436,464) | (1,280,746) |
Inventories | (210,909) | (1,112,649) |
Prepaid expenses and other assets | 568,319 | 55,685 |
Accounts payable | 170,509 | 568,208 |
Accrued expenses and other current liabilities | (767,557) | (146,850) |
Net cash provided by operating activities | 518,729 | 2,606,242 |
CASH FLOWS (USED) BY INVESTING ACTIVITIES | ||
Capital expenditures | (371,718) | (267,328) |
CASH FLOWS (USED) BY FINANCING ACTIVITIES | ||
Proceeds from exercise of stock options | 23,400 | 117,000 |
Repayments of equipment lease payable | (115,827) | (108,211) |
Repurchase of common stock - 0 and 4,815,110 shares, respectively | (9,630,219) | |
Net cash (used by) financing activities | (92,427) | (9,621,430) |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 54,584 | (7,282,516) |
Cash and cash equivalents, at beginning of period | 10,723,513 | 16,599,249 |
CASH AND CASH EQUIVALENTS, AT END OF PERIOD | 10,778,097 | 9,316,733 |
SUPPLEMENTAL INFORMATION: | ||
Cash paid during the period for income taxes | $ 63,762 | 448,617 |
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES: | ||
Capital expenditures | (149,432) | |
Equipment lease payable | $ 149,432 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parentheticals) - shares | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Common stock repurchase, shares | 0 | 4,815,110 |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY - 9 months ended Sep. 30, 2015 - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Total |
Balances at Dec. 31, 2014 | $ 295,109 | $ 39,530,325 | $ 13,124,172 | $ (19,319,241) | $ 33,630,365 |
Balances, Shares (in Shares) at Dec. 31, 2014 | 29,510,891 | 19,496,455 | |||
Net income | 352,998 | $ 352,998 | |||
Stock issued under equity compensation plan | $ 1,000 | (1,000) | |||
Stock issued under equity compensation plan (in Shares) | 100,000 | ||||
Stock options exercised | $ 300 | 23,100 | 23,400 | ||
Stock options exercised (in Shares) | 30,000 | ||||
Share-based compensation expense | 223,273 | 223,273 | |||
Balances at Sep. 30, 2015 | $ 296,409 | $ 39,775,698 | $ 13,477,170 | $ (19,319,241) | $ 34,230,036 |
Balances, Shares (in Shares) at Sep. 30, 2015 | 29,640,891 | 19,626,455 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING PRINCIPLES AND POLICIES | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING PRINCIPLES AND POLICIES The condensed consolidated balance sheet as of September 30, 2015, the condensed consolidated statements of operations for the three and nine-month periods ended September 30, 2015 and 2014, the condensed consolidated statements of cash flows for the nine-month periods ended September 30, 2015 and 2014, and the condensed consolidated statement of shareholders’ equity for the nine-month period ended September 30, 2015 have been prepared by the Company (as defined below) without audit. The condensed consolidated financial statements include the accounts of Wireless Telecom Group, Inc., which operates one of its product lines under the trade name Noisecom, Inc. (“Noisecom”), and its wholly-owned subsidiaries Boonton Electronics Corporation (“Boonton”), Microlab/FXR (“Microlab”), WTG Foreign Sales Corporation and NC Mahwah, Inc., which are collectively referred to herein as, the “Company”. All intercompany transactions and balances have been eliminated in consolidation. In the opinion of management, the accompanying condensed consolidated financial statements referred to above contain all necessary adjustments, consisting of normal accruals and recurring entries, which are necessary to fairly present the Company’s results for the interim periods being presented. The accounting policies followed by the Company are set forth in Note 1 to the Company’s financial statements included in its annual report on Form 10-K for the year ended December 31, 2014. Specific reference is made to that report since certain information and footnote disclosures normally included in financial statements in accordance with accounting principles generally accepted in the United States of America (US GAAP) have been condensed or omitted from this report. The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities (including inventory valuation, accounts receivable valuation, valuation of deferred tax assets and estimated fair values of stock options) and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of net sales and expenses during the reporting period. Actual results could differ from those estimates. The results of operations for the three and nine-month periods ended September 30, 2015 are not necessarily indicative of the results to be expected for the full year ending December 31, 2015. Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents 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 three and nine-months ended September 30, 2015, 0 customer accounted for 10% or more of the Company’s consolidated sales. For the three and nine-months ended September 30, 2014, one customer accounted for 10% and 11% of the Company’s consolidated sales, respectively. At September 30, 2015, 0 customer represented 10% or more of the Company’s gross accounts receivable. However, at December 31, 2014, one customer represented 11% of the Company’s gross accounts receivable balance. The carrying amounts of cash and cash equivalents, trade receivables, other current assets and accounts payable approximate fair value due to the short-term nature of these instruments. The Company considers all highly liquid investments purchased with maturities of three months or less at the time of purchase to be cash equivalents. Cash and cash equivalents consist of bank and money market accounts. Management has evaluated subsequent events and determined that there were no subsequent events or transactions requiring recognition or disclosure in the condensed consolidated financial statements through the date the financial statements were issued. |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Changes and Error Corrections [Abstract] | |
Accounting Changes and Error Corrections [Text Block] | NOTE 2 – RECENT ACCOUNTING PRONOUNCEMENTS In July 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2015-11, “Simplifying the Measurement of Inventory.” ASU 2015-11 applies to inventory that is measured using first-in, first-out (FIFO) or average cost. An entity should measure inventory within the scope of ASU 2015-11 at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. The amendments in ASU 2015-11 more closely align the measurement of inventory in US GAAP with the measurement of inventory in International Financial Reporting Standards (IFRS). ASU 2015-11 is effective for fiscal years beginning after December 15, 2016. The Company is in the process of evaluating the impact of this ASU on its consolidated financial statements. In June 2014, the FASB issued 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 this ASU 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. The guidance, as stated in ASU 2014-09, is effective for annual and interim periods beginning after December 15, 2016. In August 2015, the FASB issued ASU 2015-14, “Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date,” which defers the effective date by one year, with early adoption on the original effective date permitted. The Company is currently in the process of evaluating the impact the adoption of this ASU will have on the Company’s consolidated financial statements, but does not expect the impact to be material. Management does not believe that any other recently issued, but not yet effective accounting pronouncements, if adopted, would have a material impact on the accompanying condensed consolidated financial statements. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | NOTE 3 – INCOME TAXES The Company records deferred taxes in accordance with Accounting Standards Codification (“ASC”) 740, “Accounting for Income Taxes.” ASC 740 requires recognition of deferred tax assets and liabilities for temporary differences between tax basis of assets and liabilities and the amounts at which they are carried in the financial statements, based upon the enacted rates in effect for the year in which the differences are expected to reverse. The Company establishes a valuation allowance when necessary to reduce deferred tax assets to the amount expected to be realized. The Company periodically assesses the value of its deferred tax assets and determines the necessity for a valuation allowance. The Company has a domestic net operating loss carryforward at September 30, 2015 of approximately $17,000,000 which expires in 2029. The Company also has a German net operating loss carryforward at September 30, 2015 of approximately $23,400,000. Realization of the Company’s deferred tax assets is dependent upon the Company generating sufficient taxable income in the appropriate tax jurisdictions in future years to obtain benefit from the reversal of net deductible temporary differences and from utilization of net operating losses. The Company’s valuation allowance of $7,012,134 is associated with the Company’s German net operating loss carryforward from an inactive German entity. The amount of deferred tax assets considered realizable is subject to adjustment in future periods if estimates of future taxable income are changed. As of September 30, 2015, management believes that it is more likely than not that the Company will fully realize the benefits of its deferred tax asset associated with its domestic net operating loss carryforward. The deferred income tax assets (liabilities) are summarized as follows: September 30, December 31, 2015 2014 Net deferred tax asset: Uniform capitalization of inventory costs for tax purposes $ 165,160 $ 168,119 Reserves on inventories 429,138 414,898 Allowance for doubtful accounts 22,533 20,568 Accruals 15,000 240,000 Tax effect of goodwill (498,515) (471,487 ) Deferred rent 10,036 — Book depreciation over tax (7,708 ) (17,699 ) Net operating loss carryforward 13,949,217 13,947,384 14,084,861 14,301,783 Valuation allowance for deferred tax assets (7,012,134 ) (7,012,134 ) $ 7,072,727 $ 7,289,649 Under ASC 740, the Company must recognize the tax benefit from an uncertain position only if it is more-likely-than-not the tax position will be sustained on examination by the taxing authority, based on the technical merits of the position. The tax benefits recognized in the financial statements attributable to such position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon the ultimate resolution of the position. The components of income tax expense related to income from operations are as follows: Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Current: Federal $ — $ 34,650 $ 17,457 $ 68,455 State 14,154 199,240 58,730 386,430 Deferred: Federal 58,689 795,495 193,406 1,366,520 State 8,538 85,443 23,516 170,130 $ 81,381 $ 1,114,828 $ 293,109 $ 1,991,535 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 September 30, 2015 and December 31, 2014, the Company has identified its Federal tax return and its state tax return in New Jersey as “major” tax jurisdictions, as defined, in which it is required to file income tax returns. Based on the evaluations noted above, the Company has concluded that there are no significant uncertain tax positions requiring recognition or disclosure in its condensed consolidated financial statements. |
INCOME PER COMMON SHARE
INCOME PER COMMON SHARE | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | NOTE 4 - INCOME PER COMMON SHARE Basic earnings per share is calculated by dividing income available to common shareholders by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share are calculated by using the weighted average number of shares of common stock outstanding and, when dilutive, potential shares from stock options and warrants to purchase common stock, using the treasury stock method. Three Months Ended Nine Months Ended 2015 2014 2015 2014 Weighted average common shares outstanding 19,626,455 19,419,063 19,549,532 21,044,296 Potentially dilutive stock options 523,507 1,010,588 915,384 1,184,725 Weighted average common shares outstanding, assuming dilution 20,149,962 20,429,651 20,464,916 22,229,021 Common stock options are included in the diluted earnings per share calculation when the various option exercise prices are less than their relative average market price during the periods presented in this quarterly report. The weighted average number of shares of common stock underlying options not included in diluted earnings per share, because the effects are anti-dilutive, was 2,061,830 and 1,708,802 for the three-months ended September 30, 2015 and 2014, respectively. For the nine-months ended September 30, 2015 and 2014, the weighted average number of shares of common stock underlying options not included in diluted earnings per share was 1,691,515 and 1,627,182, respectively. |
INVENTORIES
INVENTORIES | 9 Months Ended |
Sep. 30, 2015 | |
Inventory Disclosure [Abstract] | |
Inventory Disclosure [Text Block] | NOTE 5 – INVENTORIES Inventory carrying value is net of inventory reserves of $1,072,846 and $1,037,247 at September 30, 2015 and December 31, 2014, respectively. September 30, December 31, 2015 2014 Inventories consist of: Raw materials $ 4,282,986 $ 4,161,734 Work-in-process 732,975 735,364 Finished goods 3,700,426 3,643,979 $ 8,716,387 $ 8,541,077 |
GOODWILL
GOODWILL | 9 Months Ended |
Sep. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure [Text Block] | NOTE 6 - GOODWILL Goodwill represents the excess of the aggregate purchase price over the fair value of the net assets acquired in a purchase business combination. Goodwill is not amortized but rather is reviewed for impairment at least annually or more frequently if a triggering event occurs. Management first makes a qualitative assessment of whether it is more-likely-than-not that a reporting unit’s fair value is less than its carrying amount before applying the two-step goodwill impairment test described below. If, based on the qualitative assessment, the estimated fair value is well in excess of its carrying amount, management will not perform a quantitative assessment. If, however, the conclusion is that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, management then performs a two-step goodwill impairment test. Under the first step, the fair value of the reporting unit is compared with its carrying value, and, if an indication of goodwill impairment exists for the reporting unit, the Company must perform step two of the impairment test (measurement). Under step two, an impairment loss is recognized for any excess of the carrying amount of the reporting unit’s goodwill as determined by allocating the fair value of the reporting unit in a manner similar to a purchase price allocation. The residual fair value after this allocation is the implied fair value of the reporting unit’s goodwill. The Company’s goodwill balance of $1,351,392 at September 30, 2015 and December 31, 2014 relates to one of the Company’s reporting units, Microlab. Management’s qualitative assessment performed in the fourth quarter of 2014 did not indicate any impairment of Microlab’s goodwill as its fair value is estimated to be in excess of its carrying value. Furthermore, no events have occurred since then that would change this assessment. |
ACCOUNTING FOR SHARE BASED COMP
ACCOUNTING FOR SHARE BASED COMPENSATION | 9 Months Ended |
Sep. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | NOTE 7 - ACCOUNTING FOR SHARE BASED COMPENSATION The Company follows the provisions of ASC 718, “Share-Based Payment.” The Company’s results for the three and nine-month periods ended September 30, 2015 include share-based compensation expense totaling $51,347 and $223,273, respectively. Results for the three and nine-month periods ended September 30, 2014 include share-based compensation expense totaling $154,268 and $234,801, respectively. Such amounts have been included in the Condensed Consolidated Statements of Operations within operating expenses. Incentive Compensation Plan: In 2012, the Company’s Board of Directors and shareholders approved the 2012 Incentive Compensation Plan (the “Initial 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 Initial 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 (the “2012 Plan”) allowing for an additional 1,658,045 shares of the Company’s common stock to be available for future grants under the 2012 Plan. As of September 30, 2015, there were 2,364,000 shares available for issuance under the 2012 Plan, including those shares available under the Company’s prior incentive compensation plan as of such date. All service-based options granted have ten-year terms from the date of grant and vest annually and become fully exercisable after a maximum of five years. Performance-based options granted have ten-year terms and vest and become fully exercisable when determinable performance targets are achieved. Performance targets are agreed to, and approved by, the Company’s Board of Directors. Provisions of the 2012 Plan require that all awards that are stock options be made at exercise prices equal to or greater than the fair market value on the date of the grant. The Company did not grant stock option awards during either of the nine-month periods ended September 30, 2015 and 2014. The following summarizes the components of share-based compensation expense by equity type for the three and nine-months ended September 30: Three Months Ended Nine Months Ended 2015 2014 2015 2014 Service-based Restricted Common Stock $ 55,500 $ 49,800 $ 155,100 $ 130,333 Performance-based Restricted Common Stock (636 ) 17,700 11,620 17,700 Performance-based Stock Options (3,517 ) 86,768 56,553 86,768 Total Share-Based Compensation Expense $ 51,347 $ 154,268 $ 223,273 $ 234,801 Stock-based compensation for the three and nine-months ended September 30, 2015 and 2014 is included in general and administrative expenses in the accompanying condensed consolidated statement of operations. Restricted Common Stock Awards: In June 2015, the Company granted 100,000 shares of restricted common stock to certain non-employee directors of the Company under the 2012 Plan. The shares were granted at a price of $2.22 per share and will fully vest on the date of the Company’s next annual shareholders meeting to be held in June 2016 (assuming continued service through such date), or a vesting period of approximately one year. The total compensation expense to be recognized over the vesting period is $222,000. A summary of the status of the Company’s non-vested restricted common stock, as granted under the Company’s approved stock compensation plans, as of September 30, 2015, and changes during the nine-months ended September 30, 2015, are presented below: Weighted Average Non-vested Restricted Shares Number of Shares Grant Date Fair Value Non-vested at January 1, 2015 180,000 $ 2.09 Granted 100,000 $ 2.22 Forfeited (13,000 ) $ 1.77 Vested (80,000 ) $ 2.49 Non-vested at September 30, 2015 187,000 $ 2.01 Under the terms of the performance-based restricted common stock award agreements (pertaining to the 100,000 shares of restricted stock granted in 2013), the restricted stock 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. The Company’s Board of Directors adopted specific revenue and earnings performance targets as vesting conditions. During the first quarter of 2015, management determined the performance conditions related to these restricted stock awards are probable to be achieved by the year ending 2020. As a result, the Company adjusted the amortization of the fair market value of these awards over the revised implicit service period from December 2017 to December 2020. 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 September 30, 2015, the unearned compensation related to Company granted restricted common stock was $284,271 of which $166,500 (pertaining to 100,000 service-based restricted common stock awards) will be amortized on a straight-line basis through the date of the Company’s next annual shareholders meeting scheduled to be held in June 2016, the vesting date. The remaining balance of $117,771 (pertaining to 87,000 performance-based shares of restricted common stock awarded in 2013) will be amortized on a straight-line basis through December 31, 2020, the revised implicit service period. Performance-Based Stock Option Awards: A summary of performance-based stock option activity, and related information for the nine-months ended September 30, 2015 follows: Weighted Average Options Exercise Price Outstanding, January 1, 2015 2,070,000 $ 1.33 Granted 50,000 $ 1.83 Exercised (30,000 ) $ 0.78 Forfeited (125,000 ) $ 1.77 Expired — — Outstanding, September 30, 2015 1,965,000 $ 1.32 Options exercisable: September 30, 2015 1,090,000 $ 0.96 The aggregate intrinsic value of performance-based stock options outstanding (regardless of whether or not such options are exercisable) as of September 30, 2015 and December 31, 2014 was $595,650 and $2,792,690, respectively. The aggregate intrinsic value of performance-based stock options exercisable as of September 30, 2015 and December 31, 2014 was $595,650 and $1,882,550, respectively. 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 first quarter of 2015, management determined the performance conditions related to these stock option awards are probable to be achieved by the year ending 2020. As a result, the Company adjusted the amortization of the fair market value of these awards over the revised implicit service period from December 2017 to December 2020. 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. On September 8, 2015, the Company granted performance-based stock options to acquire 50,000 shares of common stock at an exercise price of $1.83 per share, which represents the closing price of the Company’s common stock as reported on the NYSE MKT on September 8, 2015, the date of grant. The per share fair-value of these performance-based options granted during the three-month period ended September 30, 2015 was $1.03. The per share fair-value was estimated on the date of grant using the Black-Scholes option pricing method and included the following range of assumptions; dividend yield 0%, risk-free interest rate of 1.53% and expected option life of 4 years. Volatility assumption was 75.46% and the forfeiture rate was assumed to be 0%. As of September 30, 2015, the unearned compensation related to the 950,000 performance-based stock options granted in August 2013 (with a weighted average per share exercise price of $1.77) and the 50,000 performance-based stock options granted in September 2015 (with a weighted average per share exercise price of $1.83) is $550,122 and $51,527, respectively, which will be amortized on a straight-line basis through December 31, 2020, the implicit service period. The Company’s performance-based stock options granted prior to 2013 (consisting of 1,090,000 options) are fully amortized. Service-Based Stock Option Awards: A summary of service-based stock option activity, and related information for the nine-months ended September 30, 2015 follows: Weighted Average Options Exercise Price Outstanding, January 1, 2015 522,000 $ 2.51 Granted — — Exercised — — Forfeited — — Expired (144,000 ) $ 2.33 Outstanding, September 30, 2015 378,000 $ 2.58 Options exercisable: September 30, 2015 378,000 $ 2.58 The aggregate intrinsic value of service-based stock options exercisable as of September 30, 2015 and December 31, 2014 was $0 and $102,640, respectively. At September 30, 2015, the Company’s service-based stock options are fully amortized. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | NOTE 8 – SEGMENT INFORMATION The operating businesses of the Company are segregated into two reportable segments: (i) network solutions; and (ii) test and measurement. The network solutions segment is comprised primarily of the operations of Wireless Telecom Group Inc.’s subsidiary, Microlab. The test and measurement segment is comprised primarily of the operations of Wireless Telecom Group, Inc. which operates the Noisecom product line and the operations of its subsidiary, Boonton. The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies. The Company allocates resources and evaluates the performance of segments based on income or loss from operations, excluding interest, corporate expenses and other income (expenses). Financial information by reportable segment for the three and nine-months ended September 30, 2015 and 2014: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Net sales by segment: Network solutions $ 5,481,651 $ 8,034,568 $ 16,708,137 $ 22,026,239 Test and measurement 2,857,504 3,337,647 8,472,006 8,970,223 Total consolidated net sales of reportable segments $ 8,339,155 $ 11,372,215 $ 25,180,143 $ 30,996,462 Segment income: Network solutions $ 901,277 $ 2,772,136 $ 2,596,224 $ 6,484,802 Test and measurement 34,818 405,543 389,030 622,290 Income from reportable segments 936,095 3,177,679 2,985,254 7,107,092 Other unallocated amounts: Corporate expenses (773,695 ) (1,052,109 ) (2,336,234 ) (2,911,098 ) Other (expense) - net 5,880 (27,568 ) (2,913 ) (65,396 ) Consolidated income before income tax provision $ 156,520 $ 2,098,002 $ 646,107 $ 4,130,598 Depreciation and amortization by segment: Network solutions $ 58,317 $ 42,828 $ 164,447 $ 117,942 Test and measurement 56,754 82,124 174,379 243,818 Total depreciation and amortization for reportable segments $ 115,071 $ 124,952 $ 338,826 $ 361,760 Capital expenditures by segment: Network solutions $ 91,000 $ 35,317 $ 266,599 $ 198,008 Test and measurement — 35,057 105,119 69,320 Total consolidated capital expenditures by reportable segment $ 91,000 $ 70,374 $ 371,718 $ 267,328 Financial information by reportable segment as of September 30, 2015 and December 31, 2014: 2015 2014 Total assets by segment: Network solutions $ 11,066,273 $ 11,088,332 Test and measurement 7,112,772 7,006,853 Total assets for reportable segments 18,179,045 18,095,185 Corporate assets, principally cash and cash equivalents and deferred and current taxes 18,018,974 18,193,737 Total consolidated assets $ 36,198,019 $ 36,288,922 Net consolidated sales by region were as follows: Three Months Ended Nine Months Ended Sales by region 2015 2014 2015 2014 Americas $ 6,539,352 $ 8,521,225 $ 19,161,206 $ 23,624,414 Europe, Middle East, Africa (EMEA) 1,284,596 1,752,637 4,579,863 4,556,438 Asia Pacific (APAC) 515,207 1,098,353 1,439,074 2,815,610 Total Sales $ 8,339,155 $ 11,372,215 $ 25,180,143 $ 30,996,462 Net sales are attributable to a geographic area based on the destination of the product shipment. The majority of shipments in the Americas are to customers located within the United States. For the three-months ended September 30, 2015 and 2014, sales in the United States for all reportable segments amounted to $6,087,609 and $8,089,561, respectively. For the nine-months ended September 30, 2015 and 2014, sales in the United States for all reportable segments amounted to $17,494,870 and $22,138,237, respectively. Shipments to the EMEA region were largely concentrated in two countries, Israel and Germany. For the three-months ended September 30, 2015, sales to Israel and Germany for all reportable segments amounted to $338,867 and $229,682 of all shipments to the EMEA region, respectively. For the three-months ended September 30, 2014, sales to Israel and Germany for all reportable segments amounted to $625,217 and $262,790, respectively of all shipments to the EMEA region. For the nine-months ended September 30, 2015, sales to Israel and Germany amounted to $1,247,182 and $891,234 of all the shipments to the EMEA region, respectively. For the nine-months ended September 30, 2014, sales to Israel and Germany amounted to $1,248,059 and $1,005,477, respectively of all shipments to the EMEA region. Shipments to the APAC region were largely concentrated in China. For the three-months ended September 30, 2015 and 2014, sales in China for all reportable segments amounted to $303,263 and $526,927, respectively. For the nine-months ended September 30, 2015 and 2014, sales in China for all reportable segments amounted to $900,592 and $1,049,909, respectively. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | NOTE 9 - COMMITMENTS AND CONTINGENCIES Warranties: The Company typically provides one-year warranties on all of its products covering both parts and labor. The Company, at its option, repairs or replaces products that are defective during the warranty period if the proper preventive maintenance procedures have been followed by its customers. Historically, the Company’s warranty expense has been minimal. Leases: In May 2015, the Company and its landlord entered into a lease agreement to remain at its principal corporate headquarters in Hanover Township, Parsippany, New Jersey through March 31, 2023. Monthly lease payments range from approximately $33,000 in year one to approximately $41,000 in year eight. Additionally, the Company has available an allowance of approximately $300,000 towards alterations and improvements to the premises through November 30, 2016. The lease can be renewed at the Company’s option for one five-year period at fair market value to be determined at term expiration. The following is a summary of the Company’s contractual obligations as of September 30, 2015: Table of Contractual Obligations Payments by Period Less than More than Total 1 Year 1-3 Years 4-5- Years 5 Years Facility Leases $ 3,355,885 $ 405,873 $ 1,292,148 $ 927,332 $ 730,532 Operating and Equipment Leases 201,955 63,776 138,179 — — $ 3,557,840 $ 469,649 $ 1,430,327 $ 927,332 $ 730,532 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 a site, formerly leased by Boonton, 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. 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 effect on its ongoing business operations. Line of Credit: The Company maintains a line of credit with a bank. The credit facility provides borrowing availability of up to 100% of the Company’s money market account balance and 99% of the Company’s short-term investment securities (U.S. Treasury bills) and, under the terms and conditions of the loan agreement, the facility is fully secured by the Company’s money fund account and short-term investment holdings held with the bank. Advances under the facility will bear interest at a variable rate equal to the London InterBank Offered Rate (“LIBOR”) in effect at the time of borrowing. Additionally, under the terms and conditions of the loan agreement, there is 0 annual fee and any amount outstanding under the loan facility may be paid at any time in whole or in part without penalty. As of September 30, 2015, the Company had 0 borrowings outstanding under the facility and approximately $4,500,000 of borrowing availability. The Company has no current plans to borrow from this credit facility as it believes its present cash balances will adequately meet near-term working capital requirements. Risks and Uncertainties: Proprietary information and know-how are important to the Company’s commercial success. There can be no assurance that others will not either develop independently the same or similar information or obtain and use proprietary information of the Company. Certain key employees have signed confidentiality and non-compete agreements regarding the Company’s proprietary information. The Company believes that its products do not infringe the proprietary rights of third parties. There can be no assurance, however, that third parties will not assert infringement claims in the future. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements, Policy [Policy Text Block] | In June 2014, the FASB issued 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 this ASU 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. The guidance, as stated in ASU 2014-09, is effective for annual and interim periods beginning after December 15, 2016. In August 2015, the FASB issued ASU 2015-14, “Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date,” which defers the effective date by one year, with early adoption on the original effective date permitted. The Company is currently in the process of evaluating the impact the adoption of this ASU will have on the Company’s consolidated financial statements, but does not expect the impact to be material. Management does not believe that any other recently issued, but not yet effective accounting pronouncements, if adopted, would have a material impact on the accompanying condensed consolidated financial statements. |
Income Tax, Policy [Policy Text Block] | The Company records deferred taxes in accordance with Accounting Standards Codification (“ASC”) 740, “Accounting for Income Taxes.” ASC 740 requires recognition of deferred tax assets and liabilities for temporary differences between tax basis of assets and liabilities and the amounts at which they are carried in the financial statements, based upon the enacted rates in effect for the year in which the differences are expected to reverse. The Company establishes a valuation allowance when necessary to reduce deferred tax assets to the amount expected to be realized. The Company periodically assesses the value of its deferred tax assets and determines the necessity for a valuation allowance. |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | The Company follows the provisions of ASC 718, “Share-Based Payment. |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | The deferred income tax assets (liabilities) are summarized as follows: September 30, December 31, 2015 2014 Net deferred tax asset: Uniform capitalization of inventory costs for tax purposes $ 165,160 $ 168,119 Reserves on inventories 429,138 414,898 Allowance for doubtful accounts 22,533 20,568 Accruals 15,000 240,000 Tax effect of goodwill (498,515) (471,487 ) Deferred rent 10,036 — Book depreciation over tax (7,708 ) (17,699 ) Net operating loss carryforward 13,949,217 13,947,384 14,084,861 14,301,783 Valuation allowance for deferred tax assets (7,012,134 ) (7,012,134 ) $ 7,072,727 $ 7,289,649 |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | The components of income tax expense related to income from operations are as follows: Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Current: Federal $ — $ 34,650 $ 17,457 $ 68,455 State 14,154 199,240 58,730 386,430 Deferred: Federal 58,689 795,495 193,406 1,366,520 State 8,538 85,443 23,516 170,130 $ 81,381 $ 1,114,828 $ 293,109 $ 1,991,535 |
INCOME PER COMMON SHARE (Tables
INCOME PER COMMON SHARE (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Weighted Average Number of Shares [Table Text Block] | Three Months Ended Nine Months Ended 2015 2014 2015 2014 Weighted average common shares outstanding 19,626,455 19,419,063 19,549,532 21,044,296 Potentially dilutive stock options 523,507 1,010,588 915,384 1,184,725 Weighted average common shares outstanding, assuming dilution 20,149,962 20,429,651 20,464,916 22,229,021 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | Inventories consist of: September 30, December 31, 2015 2014 Inventories consist of: Raw materials $ 4,282,986 $ 4,161,734 Work-in-process 732,975 735,364 Finished goods 3,700,426 3,643,979 $ 8,716,387 $ 8,541,077 |
ACCOUNTING FOR SHARE BASED CO21
ACCOUNTING FOR SHARE BASED COMPENSATION (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
ACCOUNTING FOR SHARE BASED COMPENSATION (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 share-based compensation expense by equity type for the three and nine-months ended September 30: Three Months Ended Nine Months Ended 2015 2014 2015 2014 Service-based Restricted Common Stock $ 55,500 $ 49,800 $ 155,100 $ 130,333 Performance-based Restricted Common Stock (636 ) 17,700 11,620 17,700 Performance-based Stock Options (3,517 ) 86,768 56,553 86,768 Total Share-Based Compensation Expense $ 51,347 $ 154,268 $ 223,273 $ 234,801 |
Schedule of Nonvested Restricted Stock Units Activity [Table Text Block] | A summary of the status of the Company’s non-vested restricted common stock, as granted under the Company’s approved stock compensation plans, as of September 30, 2015, and changes during the nine-months ended September 30, 2015, are presented below: Weighted Average Non-vested Restricted Shares Number of Shares Grant Date Fair Value Non-vested at January 1, 2015 180,000 $ 2.09 Granted 100,000 $ 2.22 Forfeited (13,000 ) $ 1.77 Vested (80,000 ) $ 2.49 Non-vested at September 30, 2015 187,000 $ 2.01 |
Performance Based Stock Options [Member] | |
ACCOUNTING FOR SHARE BASED COMPENSATION (Tables) [Line Items] | |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | A summary of performance-based stock option activity, and related information for the nine-months ended September 30, 2015 follows: Weighted Average Options Exercise Price Outstanding, January 1, 2015 2,070,000 $ 1.33 Granted 50,000 $ 1.83 Exercised (30,000 ) $ 0.78 Forfeited (125,000 ) $ 1.77 Expired — — Outstanding, September 30, 2015 1,965,000 $ 1.32 Options exercisable: September 30, 2015 1,090,000 $ 0.96 |
Service Based Stock Options [Member] | |
ACCOUNTING FOR SHARE BASED COMPENSATION (Tables) [Line Items] | |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | A summary of service-based stock option activity, and related information for the nine-months ended September 30, 2015 follows: Weighted Average Options Exercise Price Outstanding, January 1, 2015 522,000 $ 2.51 Granted — — Exercised — — Forfeited — — Expired (144,000 ) $ 2.33 Outstanding, September 30, 2015 378,000 $ 2.58 Options exercisable: September 30, 2015 378,000 $ 2.58 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Schedule Of Segment Reporting Financial Information Including Total Assets By Segment [Table Text Block] | Financial information by reportable segment for the three and nine-months ended September 30, 2015 and 2014: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Net sales by segment: Network solutions $ 5,481,651 $ 8,034,568 $ 16,708,137 $ 22,026,239 Test and measurement 2,857,504 3,337,647 8,472,006 8,970,223 Total consolidated net sales of reportable segments $ 8,339,155 $ 11,372,215 $ 25,180,143 $ 30,996,462 Segment income: Network solutions $ 901,277 $ 2,772,136 $ 2,596,224 $ 6,484,802 Test and measurement 34,818 405,543 389,030 622,290 Income from reportable segments 936,095 3,177,679 2,985,254 7,107,092 Other unallocated amounts: Corporate expenses (773,695 ) (1,052,109 ) (2,336,234 ) (2,911,098 ) Other (expense) - net 5,880 (27,568 ) (2,913 ) (65,396 ) Consolidated income before income tax provision $ 156,520 $ 2,098,002 $ 646,107 $ 4,130,598 Depreciation and amortization by segment: Network solutions $ 58,317 $ 42,828 $ 164,447 $ 117,942 Test and measurement 56,754 82,124 174,379 243,818 Total depreciation and amortization for reportable segments $ 115,071 $ 124,952 $ 338,826 $ 361,760 Capital expenditures by segment: Network solutions $ 91,000 $ 35,317 $ 266,599 $ 198,008 Test and measurement — 35,057 105,119 69,320 Total consolidated capital expenditures by reportable segment $ 91,000 $ 70,374 $ 371,718 $ 267,328 |
Schedule Of Segment Reporting Information Total Assets By Segment [Table Text Block] | Financial information by reportable segment as of September 30, 2015 and December 31, 2014: 2015 2014 Total assets by segment: Network solutions $ 11,066,273 $ 11,088,332 Test and measurement 7,112,772 7,006,853 Total assets for reportable segments 18,179,045 18,095,185 Corporate assets, principally cash and cash equivalents and deferred and current taxes 18,018,974 18,193,737 Total consolidated assets $ 36,198,019 $ 36,288,922 |
Schedule Of Net Consolidated Sales By Region [Table Text Block] | Net consolidated sales by region were as follows: Three Months Ended Nine Months Ended Sales by region 2015 2014 2015 2014 Americas $ 6,539,352 $ 8,521,225 $ 19,161,206 $ 23,624,414 Europe, Middle East, Africa (EMEA) 1,284,596 1,752,637 4,579,863 4,556,438 Asia Pacific (APAC) 515,207 1,098,353 1,439,074 2,815,610 Total Sales $ 8,339,155 $ 11,372,215 $ 25,180,143 $ 30,996,462 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contractual Obligation, Fiscal Year Maturity Schedule [Table Text Block] | The following is a summary of the Company’s contractual obligations as of September 30, 2015: Table of Contractual Obligations Payments by Period Less than More than Total 1 Year 1-3 Years 4-5- Years 5 Years Facility Leases $ 3,355,885 $ 405,873 $ 1,292,148 $ 927,332 $ 730,532 Operating and Equipment Leases 201,955 63,776 138,179 — — $ 3,557,840 $ 469,649 $ 1,430,327 $ 927,332 $ 730,532 |
SUMMARY OF SIGNIFICANT ACCOUN24
SUMMARY OF SIGNIFICANT ACCOUNTING PRINCIPLES AND POLICIES (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
SUMMARY OF SIGNIFICANT ACCOUNTING PRINCIPLES AND POLICIES (Details) [Line Items] | |||||
Number of Financial Institutions in Which Company Maintains Cash Investments | 2 | ||||
Number of significant customer respect to revenue | 0 | 1 | 0 | 1 | |
Number of Significant Customer Respect to Accounts Receivable | 0 | 0 | 1 | ||
No Customer [Member] | |||||
SUMMARY OF SIGNIFICANT ACCOUNTING PRINCIPLES AND POLICIES (Details) [Line Items] | |||||
Concentration Risk, Percentage | 10.00% | 10.00% | |||
Percentage Of Accounts Receivable Attributable To Significant Customer | 10.00% | ||||
Customer One [Member] | |||||
SUMMARY OF SIGNIFICANT ACCOUNTING PRINCIPLES AND POLICIES (Details) [Line Items] | |||||
Concentration Risk, Percentage | 10.00% | 11.00% | |||
Percentage of Gross Accounts Receivable Balance | 11.00% |
INCOME TAXES (Details)
INCOME TAXES (Details) | 9 Months Ended |
Sep. 30, 2015USD ($) | |
INCOME TAXES (Details) [Line Items] | |
Operating Loss Carryforwards Expiration Period | 2,029 |
Domestic Tax Authority [Member] | |
INCOME TAXES (Details) [Line Items] | |
Operating Loss Carryforwards | $ 17,000,000 |
Foreign Tax Authority [Member] | |
INCOME TAXES (Details) [Line Items] | |
Operating Loss Carryforwards | 23,400,000 |
Operating Loss Carryforwards, Valuation Allowance | $ 7,012,134 |
Minimum [Member] | |
INCOME TAXES (Details) [Line Items] | |
Percentage of Largest Benefit to Tax Benefits Recognized | 50.00% |
INCOME TAXES (Details) - Schedu
INCOME TAXES (Details) - Schedule of deferred tax assets and liabilities - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 |
Net deferred tax asset: | ||
Uniform capitalization of inventory costs for tax purposes | $ 165,160 | $ 168,119 |
Reserves on inventories | 429,138 | 414,898 |
Allowance for doubtful accounts | 22,533 | 20,568 |
Accruals | 15,000 | 240,000 |
Tax effect of goodwill | (498,515) | (471,487) |
Deferred rent | 10,036 | |
Book depreciation over tax | (7,708) | (17,699) |
Net operating loss carryforward | 13,949,217 | 13,947,384 |
14,084,861 | 14,301,783 | |
Valuation allowance for deferred tax assets | (7,012,134) | (7,012,134) |
$ 7,072,727 | $ 7,289,649 |
INCOME TAXES (Details) - Sche27
INCOME TAXES (Details) - Schedule of income tax expense related to income from operations - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Current: | ||||
Federal | $ 34,650 | $ 17,457 | $ 68,455 | |
State | $ 14,154 | 199,240 | 58,730 | 386,430 |
Deferred: | ||||
Federal | 58,689 | 795,495 | 193,406 | 1,366,520 |
State | 8,538 | 85,443 | 23,516 | 170,130 |
$ 81,381 | $ 1,114,828 | $ 293,109 | $ 1,991,535 |
INCOME PER COMMON SHARE (Detail
INCOME PER COMMON SHARE (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Earnings Per Share [Abstract] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 2,061,830 | 1,708,802 | 1,691,515 | 1,627,182 |
INCOME PER COMMON SHARE (Deta29
INCOME PER COMMON SHARE (Details) - Schedule of weighted average number of shares - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Schedule of weighted average number of shares [Abstract] | ||||
Weighted average common shares outstanding | 19,626,455 | 19,419,063 | 19,549,532 | 21,044,296 |
Potentially dilutive stock options | 523,507 | 1,010,588 | 915,384 | 1,184,725 |
Weighted average common shares outstanding, assuming dilution | 20,149,962 | 20,429,651 | 20,464,916 | 22,229,021 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 |
Inventory Disclosure [Abstract] | ||
Inventory Valuation Reserves | $ 1,072,846 | $ 1,037,247 |
INVENTORIES (Details) - Schedul
INVENTORIES (Details) - Schedule of inventory current - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 |
Inventories consist of: | ||
Raw materials | $ 4,282,986 | $ 4,161,734 |
Work-in-process | 732,975 | 735,364 |
Finished goods | 3,700,426 | 3,643,979 |
$ 8,716,387 | $ 8,541,077 |
GOODWILL (Details)
GOODWILL (Details) - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 |
GOODWILL (Details) [Line Items] | ||
Goodwill | $ 1,351,392 | $ 1,351,392 |
Microlab [Member] | ||
GOODWILL (Details) [Line Items] | ||
Goodwill | $ 1,351,392 | $ 1,351,392 |
ACCOUNTING FOR SHARE BASED CO33
ACCOUNTING FOR SHARE BASED COMPENSATION (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2015 | Jun. 30, 2015 | Aug. 31, 2013 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2014 | Jun. 30, 2014 | |
ACCOUNTING FOR SHARE BASED COMPENSATION (Details) [Line Items] | ||||||||||
Share-based Compensation | $ 51,347 | $ 154,268 | $ 223,273 | $ 234,801 | ||||||
Stock or Units Available for Distributions (in Shares) | 2,000,000 | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award Additional Number of Share 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) | 2,364,000 | 2,364,000 | 2,364,000 | |||||||
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 | |||||||||
Allocated Share-based Compensation Expense | $ 51,347 | 154,268 | $ 223,273 | 234,801 | ||||||
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 | 1.53% | |||||||||
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 | 75.46% | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Forfeiture Rate | 0.00% | |||||||||
Performance Shares [Member] | ||||||||||
ACCOUNTING FOR SHARE BASED COMPENSATION (Details) [Line Items] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 10 years | |||||||||
Allocated Share-based Compensation Expense | (3,517) | 86,768 | $ 56,553 | 86,768 | ||||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price (in Dollars per share) | $ 1.03 | |||||||||
Restricted Stock [Member] | ||||||||||
ACCOUNTING FOR SHARE BASED COMPENSATION (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, Non-Option Equity Instruments, Granted (in Shares) | 100,000 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value (in Dollars per share) | $ 2.22 | $ 2.22 | ||||||||
Allocated Share-based Compensation Expense | $ 222,000 | 55,500 | $ 49,800 | $ 155,100 | $ 130,333 | |||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Restricted Stock Unit or Restricted Stock Award, Requisite Service Period Recognition | 284,271 | |||||||||
Stock Based Compensation to be Amortized Next Fiscal Year | $ 166,500 | 166,500 | $ 166,500 | |||||||
Stock Based Compensation to be Amortized Vesting Period | June 2,016 | |||||||||
Stock Based Compensation to be Amortized Depending on Certain Performance Conditions | 117,771 | 117,771 | $ 117,771 | |||||||
Performance Based Stock Options [Member] | ||||||||||
ACCOUNTING FOR SHARE BASED COMPENSATION (Details) [Line Items] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted (in Shares) | 87,000 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | 595,650 | 595,650 | $ 595,650 | $ 2,792,690 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Aggregate Intrinsic Value | $ 595,650 | 595,650 | $ 595,650 | 1,882,550 | ||||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price (in Dollars per share) | $ 1.83 | $ 1.77 | $ 1.83 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares) | 50,000 | 950,000 | 50,000 | |||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | $ 51,527 | $ 550,122 | 51,527 | $ 51,527 | ||||||
Stock Granted, Value, Share-based Compensation, Gross | $ 1,090,000 | |||||||||
Service Based Stock Options [Member] | ||||||||||
ACCOUNTING FOR SHARE BASED COMPENSATION (Details) [Line Items] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Aggregate Intrinsic Value | $ 0 | $ 0 | $ 0 | $ 102,640 |
ACCOUNTING FOR SHARE BASED CO34
ACCOUNTING FOR SHARE BASED COMPENSATION (Details) - Schedule of share-based compensation expense, components by equity type - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
ACCOUNTING FOR SHARE BASED COMPENSATION (Details) - Schedule of share-based compensation expense, components by equity type [Line Items] | |||||
Share Based Compensation | $ 51,347 | $ 154,268 | $ 223,273 | $ 234,801 | |
Restricted Stock [Member] | |||||
ACCOUNTING FOR SHARE BASED COMPENSATION (Details) - Schedule of share-based compensation expense, components by equity type [Line Items] | |||||
Share Based Compensation | $ 222,000 | 55,500 | 49,800 | 155,100 | 130,333 |
Performance Based Restricted Common Stock [Member] | |||||
ACCOUNTING FOR SHARE BASED COMPENSATION (Details) - Schedule of share-based compensation expense, components by equity type [Line Items] | |||||
Share Based Compensation | (636) | 17,700 | 11,620 | 17,700 | |
Performance Shares [Member] | |||||
ACCOUNTING FOR SHARE BASED COMPENSATION (Details) - Schedule of share-based compensation expense, components by equity type [Line Items] | |||||
Share Based Compensation | $ (3,517) | $ 86,768 | $ 56,553 | $ 86,768 |
ACCOUNTING FOR SHARE BASED CO35
ACCOUNTING FOR SHARE BASED COMPENSATION (Details) - Schedule of non-vested restricted stock activity - Restricted Stock [Member] - $ / shares | 1 Months Ended | 9 Months Ended |
Jun. 30, 2015 | Sep. 30, 2015 | |
ACCOUNTING FOR SHARE BASED COMPENSATION (Details) - Schedule of non-vested restricted stock activity [Line Items] | ||
Non-vested at January 1, 2015 | 180,000 | |
Non-vested at January 1, 2015 | $ 2.09 | |
Granted | 100,000 | |
Granted | $ 2.22 | $ 2.22 |
Forfeited | (13,000) | |
Forfeited | $ 1.77 | |
Vested | (80,000) | |
Vested | $ 2.49 | |
Non-vested at September 30, 2015 | 187,000 | |
Non-vested at September 30, 2015 | $ 2.01 |
ACCOUNTING FOR SHARE BASED CO36
ACCOUNTING FOR SHARE BASED COMPENSATION (Details) - Schedule of performance-based stock option activity, and related Information - Performance Based Stock Options [Member] - $ / shares | 1 Months Ended | 9 Months Ended | |
Sep. 30, 2015 | Aug. 31, 2013 | Sep. 30, 2015 | |
ACCOUNTING FOR SHARE BASED COMPENSATION (Details) - Schedule of performance-based stock option activity, and related Information [Line Items] | |||
Outstanding, January 1, 2015 | 2,070,000 | ||
Outstanding, January 1, 2015 | $ 1.33 | ||
Granted | 50,000 | 950,000 | 50,000 |
Granted | $ 1.83 | $ 1.77 | $ 1.83 |
Exercised | (30,000) | ||
Exercised | $ 0.78 | ||
Forfeited | (125,000) | ||
Forfeited | $ 1.77 | ||
Outstanding, September 30, 2015 | 1,965,000 | 1,965,000 | |
Outstanding, September 30, 2015 | $ 1.32 | $ 1.32 | |
Options exercisable: | |||
September 30, 2015 | 1,090,000 | 1,090,000 | |
September 30, 2015 | $ 0.96 | $ 0.96 |
ACCOUNTING FOR SHARE BASED CO37
ACCOUNTING FOR SHARE BASED COMPENSATION (Details) - Schedule of service-based stock option activity, and related Information - Service Based Stock Options [Member] | 9 Months Ended |
Sep. 30, 2015$ / sharesshares | |
ACCOUNTING FOR SHARE BASED COMPENSATION (Details) - Schedule of service-based stock option activity, and related Information [Line Items] | |
Outstanding, January 1, 2015 | 522,000 |
Outstanding, January 1, 2015 | $ / shares | $ 2.51 |
Expired | (144,000) |
Expired | $ / shares | $ 2.33 |
Outstanding, September 30, 2015 | 378,000 |
Outstanding, September 30, 2015 | $ / shares | $ 2.58 |
Options exercisable: | |
September 30, 2015 | 378,000 |
September 30, 2015 | $ / shares | $ 2.58 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | |
SEGMENT INFORMATION (Details) [Line Items] | ||||
Number of Reportable Segments | 2 | |||
United States [Member] | ||||
SEGMENT INFORMATION (Details) [Line Items] | ||||
Revenue, Net | $ 6,087,609 | $ 8,089,561 | $ 17,494,870 | $ 22,138,237 |
Israel [Member] | ||||
SEGMENT INFORMATION (Details) [Line Items] | ||||
Revenue, Net | 338,867 | 625,217 | 1,247,182 | 1,248,059 |
Germany [Member] | ||||
SEGMENT INFORMATION (Details) [Line Items] | ||||
Revenue, Net | 229,682 | 262,790 | 891,234 | 1,005,477 |
China [Member] | ||||
SEGMENT INFORMATION (Details) [Line Items] | ||||
Revenue, Net | $ 303,263 | $ 526,927 | $ 900,592 | $ 1,049,909 |
SEGMENT INFORMATION (Details) -
SEGMENT INFORMATION (Details) - Schedule of segment reporting financial information including total assets by segment - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Net sales by segment: | ||||
Net sales by segment | $ 8,339,155 | $ 11,372,215 | $ 25,180,143 | $ 30,996,462 |
Segment income: | ||||
Segment income | 936,095 | 3,177,679 | 2,985,254 | 7,107,092 |
Other unallocated amounts: | ||||
Corporate expenses | (773,695) | (1,052,109) | (2,336,234) | (2,911,098) |
Other (expense) - net | 5,880 | (27,568) | (2,913) | (65,396) |
Consolidated income before income tax provision | 156,520 | 2,098,002 | 646,107 | 4,130,598 |
Depreciation and amortization by segment: | ||||
Depreciation by segment | 115,071 | 124,952 | 338,826 | 361,760 |
Capital expenditures by segment: | ||||
Capital expenditures by segment | 91,000 | 70,374 | 371,718 | 267,328 |
Network Solutions [Member] | ||||
Net sales by segment: | ||||
Net sales by segment | 5,481,651 | 8,034,568 | 16,708,137 | 22,026,239 |
Segment income: | ||||
Segment income | 901,277 | 2,772,136 | 2,596,224 | 6,484,802 |
Depreciation and amortization by segment: | ||||
Depreciation by segment | 58,317 | 42,828 | 164,447 | 117,942 |
Capital expenditures by segment: | ||||
Capital expenditures by segment | 91,000 | 35,317 | 266,599 | 198,008 |
Test and Measurement [Member] | ||||
Net sales by segment: | ||||
Net sales by segment | 2,857,504 | 3,337,647 | 8,472,006 | 8,970,223 |
Segment income: | ||||
Segment income | 34,818 | 405,543 | 389,030 | 622,290 |
Depreciation and amortization by segment: | ||||
Depreciation by segment | $ 56,754 | 82,124 | 174,379 | 243,818 |
Capital expenditures by segment: | ||||
Capital expenditures by segment | $ 35,057 | $ 105,119 | $ 69,320 |
SEGMENT INFORMATION (Details)40
SEGMENT INFORMATION (Details) - Schedule of segment reporting information total assets by segment - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 |
Total assets by segment: | ||
Total assets by segment | $ 18,179,045 | $ 18,095,185 |
Corporate assets, principally cash and cash equivalents and deferred and current taxes | 18,018,974 | 18,193,737 |
Total consolidated assets | 36,198,019 | 36,288,922 |
Network Solutions [Member] | ||
Total assets by segment: | ||
Total assets by segment | 11,066,273 | 11,088,332 |
Test and Measurement [Member] | ||
Total assets by segment: | ||
Total assets by segment | $ 7,112,772 | $ 7,006,853 |
SEGMENT INFORMATION (Details)41
SEGMENT INFORMATION (Details) - Schedule of net consolidated sales from operations by region - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
SEGMENT INFORMATION (Details) - Schedule of net consolidated sales from operations by region [Line Items] | ||||
Revenues | $ 8,339,155 | $ 11,372,215 | $ 25,180,143 | $ 30,996,462 |
Americas [Member] | ||||
SEGMENT INFORMATION (Details) - Schedule of net consolidated sales from operations by region [Line Items] | ||||
Revenues | 6,539,352 | 8,521,225 | 19,161,206 | 23,624,414 |
Europe, Middle East, Africa [Member] | ||||
SEGMENT INFORMATION (Details) - Schedule of net consolidated sales from operations by region [Line Items] | ||||
Revenues | 1,284,596 | 1,752,637 | 4,579,863 | 4,556,438 |
Asia Pacific [Member] | ||||
SEGMENT INFORMATION (Details) - Schedule of net consolidated sales from operations by region [Line Items] | ||||
Revenues | $ 515,207 | $ 1,098,353 | $ 1,439,074 | $ 2,815,610 |
COMMITMENTS AND CONTINGENCIES42
COMMITMENTS AND CONTINGENCIES (Details) | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Warranties Period of Product | 1 year |
Lease Expiration Date | Mar. 31, 2023 |
Monthly Leases Minimum Payments Due in Year One | $ 33,000 |
Monthly Leases Maximum Payments Due in Year Eight | 41,000 |
Allowance Received for Improvement | $ 300,000 |
Description of Lessor Leasing Arrangements, Operating Leases | The lease can be renewed at the Company’s option for one five-year period at fair market value to be determined at term expiration. |
Lease Renewal Option | 1 |
Lease Renewable Term | 5 years |
Line of Credit Facility, Borrowing Capacity, Description | The Company maintains a line of credit with a bank. The credit facility provides borrowing availability of up to 100% of the Company’s money market account balance and 99% of the Company’s short-term investment securities (U.S. Treasury bills) and, under the terms and conditions of the loan agreement, the facility is fully secured by the Company’s money fund account and short-term investment holdings held with the bank. |
Line of Credit Availability Equal to Percent of Money Market Account | 100.00% |
Line of Credit Availability Equal to Percent of Short-term Investment | 99.00% |
Line Of Credit Annual Fees Amount | $ 0 |
Long-term Line of Credit | 0 |
Line of Credit Facility, Maximum Borrowing Capacity | $ 4,500,000 |
COMMITMENTS AND CONTINGENCIES43
COMMITMENTS AND CONTINGENCIES (Details) - Schedule of contractual obligations | Sep. 30, 2015USD ($) |
COMMITMENTS AND CONTINGENCIES (Details) - Schedule of contractual obligations [Line Items] | |
Contractual Obligations, Total | $ 3,557,840 |
Contractual Obligations, Less than 1 Year | 469,649 |
Contractual Obligations, 1-3 Years | 1,430,327 |
Contractual Obligations, 4-5 Years | 927,332 |
Contractual Obligations, More than 5 Years | 730,532 |
Facility Leases [Member] | |
COMMITMENTS AND CONTINGENCIES (Details) - Schedule of contractual obligations [Line Items] | |
Contractual Obligations, Total | 3,355,885 |
Contractual Obligations, Less than 1 Year | 405,873 |
Contractual Obligations, 1-3 Years | 1,292,148 |
Contractual Obligations, 4-5 Years | 927,332 |
Contractual Obligations, More than 5 Years | 730,532 |
Operating and Equipment Leases [Member] | |
COMMITMENTS AND CONTINGENCIES (Details) - Schedule of contractual obligations [Line Items] | |
Contractual Obligations, Total | 201,955 |
Contractual Obligations, Less than 1 Year | 63,776 |
Contractual Obligations, 1-3 Years | $ 138,179 |