Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Mar. 03, 2017 | Jun. 30, 2016 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | WIRELESS TELECOM GROUP INC | ||
Document Type | 10-K | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Common Stock, Shares Outstanding | 22,238,874 | ||
Entity Public Float | $ 21,687,789 | ||
Amendment Flag | false | ||
Entity Central Index Key | 878,828 | ||
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 | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 9,350,803 | $ 9,726,007 |
Accounts receivable – net of allowance for doubtful accounts of $10,740 and $105,568 for 2016 and 2015, respectively | 5,183,869 | 5,451,161 |
Inventories – net of reserves of $1,549,089 and $1,110,288, respectively | 8,452,751 | 8,068,728 |
Prepaid expenses and other current assets | 866,035 | 586,889 |
TOTAL CURRENT ASSETS | 23,853,458 | 23,832,785 |
PROPERTY, PLANT AND EQUIPMENT - NET | 2,166,566 | 1,742,888 |
OTHER ASSETS: | ||
Goodwill | 1,351,392 | 1,351,392 |
Deferred income taxes | 7,403,600 | 7,013,929 |
Other assets | 660,119 | 765,330 |
TOTAL OTHER ASSETS | 9,415,111 | 9,130,651 |
TOTAL ASSETS | 35,435,135 | 34,706,324 |
CURRENT LIABILITIES: | ||
Accounts payable | 2,986,797 | 1,046,651 |
Accrued expenses and other current liabilities | 673,067 | 648,010 |
Equipment lease payable | 73,760 | |
TOTAL CURRENT LIABILITIES | 3,659,864 | 1,768,421 |
LONG TERM LIABILITIES: | ||
Deferred rent | 69,058 | 33,452 |
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, 29,786,224 and 29,627,891 shares issued, 18,751,346 and 18,636,008 shares outstanding, respectively | 297,862 | 296,279 |
Additional paid-in capital | 40,563,002 | 39,865,331 |
Retained earnings | 11,668,829 | 13,500,853 |
Treasury stock, at cost – 11,034,878 and 10,991,883 shares, respectively | (20,823,480) | (20,758,012) |
TOTAL SHAREHOLDERS’ EQUITY | 31,706,213 | 32,904,451 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ 35,435,135 | $ 34,706,324 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Allowance for doubtful accounts (in Dollars) | $ 10,740 | $ 105,568 |
Inventories, net of reserves (in Dollars) | $ 1,549,089 | $ 1,110,288 |
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 | 29,786,224 | 29,627,891 |
Common stock, shares outstanding | 18,751,346 | 18,636,008 |
Treasury stock, shares | 11,034,878 | 10,991,883 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
NET REVENUES | $ 31,326,727 | $ 33,109,106 |
COST OF REVENUES | 18,164,973 | 18,281,232 |
GROSS PROFIT | 13,161,754 | 14,827,874 |
OPERATING EXPENSES: | ||
Research and development | 4,046,106 | 3,957,274 |
Sales and marketing | 5,196,331 | 5,159,805 |
General and administrative | 6,467,426 | 4,963,756 |
TOTAL OPERATING EXPENSES | 15,709,863 | 14,080,835 |
OPERATING INCOME (LOSS) | (2,548,109) | 747,039 |
OTHER (INCOME) EXPENSE - NET | (363,851) | 24,418 |
INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES | (2,184,258) | 722,621 |
PROVISION (BENEFIT) FOR INCOME TAXES | (352,234) | 345,940 |
NET INCOME (LOSS) | $ (1,832,024) | $ 376,681 |
INCOME (LOSS) PER COMMON SHARE: | ||
Basic (in Dollars per share) | $ (0.10) | $ 0.02 |
Diluted (in Dollars per share) | $ (0.10) | $ 0.02 |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | ||
Basic (in Shares) | 18,464,022 | 19,335,768 |
Diluted (in Shares) | 19,170,322 | 20,322,017 |
CONSOLIDATED STATEMENT OF CHANG
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, 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 | ||||
Net income (loss) | 376,681 | 376,681 | |||
Restricted stock issued | $ 1,000 | (1,000) | |||
Restricted stock issued (in Shares) | 100,000 | ||||
Forfeiture of restricted stock | $ (130) | 130 | |||
Forfeiture of restricted stock (in Shares) | (13,000) | ||||
Issuance of shares in connection with stock options exercised | $ 300 | 23,100 | 23,400 | ||
Issuance of shares in connection with stock options exercised (in Shares) | 30,000 | ||||
Share-based compensation expense | 312,776 | 312,776 | |||
Repurchase of common stock | (1,438,771) | (1,438,771) | |||
BALANCE at Dec. 31, 2015 | $ 296,279 | 39,865,331 | 13,500,853 | (20,758,012) | $ 32,904,451 |
BALANCE (in Shares) at Dec. 31, 2015 | 29,627,891 | 18,636,008 | |||
Net income (loss) | (1,832,024) | $ (1,832,024) | |||
Restricted stock issued | $ 1,883 | (1,883) | |||
Restricted stock issued (in Shares) | 188,333 | ||||
Forfeiture of restricted stock | $ (300) | 300 | |||
Forfeiture of restricted stock (in Shares) | (30,000) | ||||
Share-based compensation expense | 699,254 | 699,254 | |||
Repurchase of common stock | (65,468) | (65,468) | |||
BALANCE at Dec. 31, 2016 | $ 297,862 | $ 40,563,002 | $ 11,668,829 | $ (20,823,480) | $ 31,706,213 |
BALANCE (in Shares) at Dec. 31, 2016 | 29,786,224 | 18,751,346 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | ||
CASH FLOW FROM OPERATING ACTIVITIES: | |||
Net income (loss) | $ (1,832,024) | $ 376,681 | |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 503,060 | 458,633 | |
Share-based compensation expense | 699,254 | 312,776 | |
Deferred rent | 35,606 | 33,452 | |
Deferred income taxes | (389,671) | 275,720 | |
Provision for (recovery of) doubtful accounts | (94,828) | 54,147 | |
Inventory reserves | 438,801 | 73,041 | |
Changes in assets and liabilities: | |||
Accounts receivable | 362,120 | (399,067) | |
Inventories | (822,824) | 399,308 | |
Prepaid expenses and other assets | (173,935) | 235,542 | |
Accounts payable | 1,873,163 | (138,579) | |
Accrued expenses and other current liabilities | 25,057 | (659,033) | |
Net cash provided by operations | 623,779 | 1,022,621 | |
CASH FLOWS (USED FOR) INVESTING ACTIVITIES: | |||
Capital expenditures | [1] | (818,588) | (463,428) |
CASH FLOWS (USED FOR) FINANCING ACTIVITIES: | |||
Repayments on equipment lease payable | (114,927) | (141,328) | |
Proceeds from exercise of stock options | 23,400 | ||
Repurchase of common stock – 42,995 shares in 2016 and 977,447 shares in 2015 | (65,468) | (1,438,771) | |
Net cash (used for) financing activities | (180,395) | (1,556,699) | |
NET (DECREASE) IN CASH AND CASH EQUIVALENTS | (375,204) | (977,506) | |
Cash and cash equivalents, at beginning of year | 9,726,007 | 10,723,513 | |
CASH AND CASH EQUIVALENTS, AT END OF YEAR | 9,350,803 | 9,726,007 | |
SUPPLEMENTAL INFORMATION: | |||
Cash paid during the year for taxes | 117,438 | 63,762 | |
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES: | |||
Capital expenditures | (41,904) | (48,804) | |
Equipment lease payable | $ 41,904 | $ 48,804 | |
[1] | Net of equipment lease payable of $41,904 for 2016 (network solutions segment) and $48,804 for 2015 (test and measurement segment). |
CONSOLIDATED STATEMENTS OF CAS7
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parentheticals) - shares | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Common stock repurchase, shares | 42,995 | 977,447 |
DESCRIPTION OF COMPANY AND SUMM
DESCRIPTION OF COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2016 | |
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., a New Jersey corporation, together with its subsidiaries (“we”, “us”, “our” or the “Company”), designs and manufactures radio frequency (“RF”) and microwave-based products for wireless and advanced communications industries and currently markets its products and services worldwide under the Boonton, Microlab and Noisecom brands. The Company’s complementary suite of high performance instruments and components includes peak power meters, signal analyzers, RF passive components and integrated subsystems, noise modules and precision noise generators. The Company serves both commercial and government markets with workflow-oriented, built-for-purpose solutions in distributed antenna systems (“DAS”), cellular/mobile, WiFi, WiMAX, private mobile radio, satellite, cable, radar, avionics, medical, and computing applications. The consolidated financial statements include the accounts of Wireless Telecom Group, Inc., doing business as, and operating under the trade name, Noise Com, Inc., and its wholly owned subsidiaries including Boonton Electronics Corporation and Microlab/FXR. All intercompany transactions are eliminated in consolidation. The Company presents its operations in two reportable segments: (1) network solutions and (2) test and measurement. The network solutions segment is comprised primarily of the operations of Microlab. The test and measurement segment is comprised 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 its 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 years ended December 31, 2016 and 2015, no single customer accounted for 10% or more of the Company’s total consolidated revenues. At December 31, 2016, one customer represented 16% of the Company’s gross accounts receivable balance. No other single customer represented 10% or more of the Company’s gross accounts receivable balance at December 31, 2016. At December 31, 2015, no single customer represented 10% or more of the Company’s gross accounts receivable balance. For the year ended December 31 2016, no single third-party supplier accounted for 10% or more of the Company’s total consolidated inventory purchases. For the year ended December 31, 2015, two third-party suppliers each accounted for approximately 10% of the Company’s total consolidated inventory purchases. No other third-party supplier accounted for 10% or more of the Company’s total consolidated inventory purchases for the year ended 2015. 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, 2016, 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 (average cost) or market. Finished goods and work-in-process are valued at average cost of production, which includes material, labor and manufacturing expenses. The Company reviews inventory for excess and obsolescence based on best estimates of future demand, product lifecycle status and product development plans. During the second half of 2016, management initiated an inventory reduction program which, among other things, included selling aged raw materials inventory to industry brokers. As a result of this program, and continued detailed review of aged inventory, the Company changed its excess and obsolescence reserve methodology from a specific identification methodology to an aging methodology. This change in estimate resulted in a $549,000 increase in inventory reserves, which increased cost of revenues in the fourth quarter of 2016. Inventory carrying value is net of inventory reserves of $1,549,089 and $1,110,288 as of December 31, 2016 and 2015, respectively. Inventories consist of: December 31, 2016 2015 Raw materials $ 3,558,430 $ 3,993,052 Work-in-process 531,210 628,140 Finished goods 4,363,111 3,447,536 $ 8,452,751 $ 8,068,728 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: Machinery and equipment 5-10 years Furniture and fixtures 5-10 years Transportation equipment 3-5 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 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 will perform 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, no impairment is recognized. The Company’s goodwill balance of $1,351,392 at December 31, 2016 and 2015 relates to one of the Company’s reporting units, Microlab. Management’s qualitative assessment performed in the fourth quarters of 2016 and 2015 did not indicate any impairment of Microlab’s goodwill as its fair value is estimated to be 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 no 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 no special post shipment obligations or acceptance provisions that exist with any sales arrangements. The Company accrues a provision for sales returns as a reduction of revenue at the time of sale. 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, 2016 and 2015 were $4,046,106 and $3,957,274, respectively. Advertising Costs: Advertising expenses are charged to operations during the year in which they are incurred and aggregated $150,283 and $210,940 for the years ended December 31, 2016 and 2015, 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, no 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 uncertain tax positions 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 amounts recognized in the financial statements attributable to such position, if any, are recorded if there is a greater than 50% likelihood of being realized upon the ultimate resolution of the position. Based on the evaluations noted above, the Company has concluded that there are no significant uncertain tax positions requiring recognition or disclosure in its consolidated financial statements. Income (Loss) Per Common Share: Basic income (loss) per share is calculated by dividing income (loss) available to common shareholders by the weighted average number of shares of common stock outstanding during the period. Diluted income (loss) per share is calculated by dividing income (loss) 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, 2016 2015 Weighted average number of common shares outstanding — Basic 18,464,022 19,335,768 Potentially dilutive common stock equivalents 706,300 986,249 Weighted average number of common and equivalent shares outstanding-Diluted 19,170,322 20,322,017 Common stock equivalents are included in the diluted income (loss) per share calculation only when option exercise prices are lower than the average market price of the common shares for the period presented. The weighted average number of common stock equivalents not included in diluted income (loss) per share, because the effects are anti-dilutive, was 1,189,452 and 468,805 for 2016 and 2015, respectively. Recent Accounting Pronouncements Affecting the Company: In January 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Accounting for Goodwill Impairment In January 2017, the FASB issued ASU No. 2017-01, Business Combinations: Clarifying the Definition of a Business In August 2016, the FASB issued ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments, In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation: Improvements to Employee Share-Based Payment Accounting, In February 2016, the FASB issued ASU 2016-02, Leases In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date 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. |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2016 | |
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 as of December 31: 2016 2015 Machinery and equipment $ 6,392,013 $ 5,532,832 Furniture and fixtures 139,754 124,943 Transportation equipment 120,758 158,549 Leasehold improvements 984,105 984,105 7,636,630 6,800,429 Less: accumulated depreciation 5,470,064 5,057,541 $ 2,166,566 $ 1,742,888 Depreciation expense of $503,060 and $458,633 was recorded for the years ended December 31, 2016 and 2015, respectively. |
OTHER ASSETS
OTHER ASSETS | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure Text Block Supplement [Abstract] | |
Other Assets Disclosure [Text Block] | NOTE 3 - OTHER ASSETS: Other assets consist of the following as of December 31: 2016 2015 Product demo assets $ 559,874 $ 680,298 Security deposit 50,000 50,000 Other 50,245 35,032 Total $ 660,119 $ 765,330 Product demo assets are net of reserves of $1,001,619 and $872,012 as of December 31, 2016 and 2015, respectively. |
ACCRUED EXPENSES AND OTHER CURR
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 12 Months Ended |
Dec. 31, 2016 | |
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 as of December 31: 2016 2015 Professional fees $ 195,286 $ 65,055 Commissions 130,110 211,051 Sales and use tax 112,734 114,806 Payroll and related benefits 93,202 192,902 Goods received not invoiced 10,376 2,986 Other 131,359 61,210 Total $ 673,067 $ 648,010 |
STOCK REPURCHASES
STOCK REPURCHASES | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure Text Block Supplement [Abstract] | |
Treasury Stock [Text Block] | NOTE 5 - STOCK REPURCHASES: During 2016 and 2015, under the Company’s stock repurchase program, the Company repurchased 42,995 shares and 977,447 shares, respectively, of its own common stock pursuant to the program at an aggregate cost of $65,468, or $1.52 average cost per share and $1,438,771, or $1.47 average cost per share, respectively. The Company funded the above transactions from available cash. |
SHAREHOLDERS_ EQUITY
SHAREHOLDERS’ EQUITY | 12 Months Ended |
Dec. 31, 2016 | |
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 Amended and Restated 2012 Plan. As of December 31, 2016, there were 1,096,000 shares available for issuance under the Amended and Restated 2012 Plan, including those shares available under the Company’s prior incentive compensation plan as of such date. Service-based options granted have ten year terms and, from the date of grant, typically vest annually and become fully exercisable after a maximum of five years. However, vesting conditions are determined on a grant by grant basis. 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 compensation committee of the board of directors. Under the Amended and Restated 2012 Plan, options may be granted to purchase shares of the Company’s common stock exercisable at prices equal to or above the fair market value on the date of the grant. The following summarizes the components of share-based compensation expense by equity instrument for the years ended December 31: 2016 2015 Service-based stock options $ 354,896 $ — Service-based restricted common stock 208,345 210,600 Performance-based stock options 114,600 85,205 Performance-based restricted common stock 21,413 16,971 Total share-based compensation expense $ 699,254 $ 312,776 Stock-based compensation for the years ended 2016 and 2015 is included in general and administrative expenses in the accompanying consolidated statement of operations. The performance-based and service-based stock options outstanding and exercisable as of December 31, 2016 are summarized as follows: Weighted average Options Options Weighted average exercise price Outstanding Exercisable remaining life Performance-based $1.32 2,165,000 1,090,000 5.0 years Service-based $1.51 1,198,000 181,333 7.5 years 3,363,000 1,271,333 Restricted common stock awards: On June 8, 2016, the Company granted 150,000 shares of restricted common stock to certain non-employee directors of the Company under the Amended and Restated 2012 Plan. The shares were granted at a price of $1.33 per share. On June 30, 2016, the Company appointed Timothy Whelan as Chief Executive Officer. Mr. Whelan forfeited the 30,000 shares of restricted common stock that were granted to him on June 8, 2016 as a non-employee director in connection with his appointment as Chief Executive Officer. The remaining 120,000 shares of restricted common stock granted on June 8, 2016 will fully vest on the date of the Company’s next annual shareholders meeting to be held in May 2017, 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 one-year vesting period with respect to the remaining 120,000 shares of restricted common stock is $159,600. On June 30, 2016, the Company granted 8,333 shares of restricted common stock to its newly appointed Chief Executive Officer under the Amended and Restated 2012 Plan. The shares were granted at a price of $1.34 per share and will vest in sixteen equal quarterly installments over a period of four years, provided that the executive officer’s service with the Company continues through each quarterly vesting date, so that the shares will fully vest on June 30, 2020. The total compensation expense to be recognized over the four-year vesting period is $11,166. On November 9 and 13, 2016, the Company granted 15,000 shares of restricted common stock to each of its newly appointed non-employee directors of the Company under the Amended and Restated 2012 Plan. The shares were granted at prices of $1.64 and $1.59 per share, respectively. The aggregate 30,000 shares of restricted common stock granted in November 2016 will fully vest on the date of the Company’s next annual shareholders meeting to be held in May 2017, or a vesting period of approximately six months, provided that the director’s service continues through the vesting date. The total compensation expense to be recognized over the six-month vesting period is $48,450. 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, 2016 and 2015 under the 2012 Plan: Year ended December 31, 2016 Number Fair Market Individuals Granted Granted Share Vesting Date Board of Directors 120,000 $1.33 Next Annual Meeting (May 2017) 15,000 $1.64 Next Annual Meeting (May 2017) 15,000 $1.59 Next Annual Meeting (May 2017) Chief Executive Officer 8,333 $1.34 Incremental time vest (June 2020) Total shares granted 158,333 Year ended December 31, 2015 Number Individuals Granted Granted Share Vesting Date Board of Directors 100,000 $2.22 Annual Meeting (June 2016) 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, 2016 and 2015, and changes during the years ended December 31, 2016 and 2015 are presented below: Weighted Average Grant Date Non-vested Shares Number of Shares Fair Value Non-vested at January 1, 2015 180,000 $ 2.09 Granted 100,000 $ 2.22 Vested (80,000 ) $ 2.49 Forfeited (13,000 ) $ 1.77 Non-vested at December 31, 2015 187,000 $ 2.01 Granted 188,333 $ 1.38 Vested (101,042 ) $ 2.22 Forfeited (30,000 ) $ 1.33 Non-vested at December 31, 2016 244,291 $ 1.52 Under the terms of the performance-based restricted common stock award agreements pertaining to the 87,000 shares of restricted stock awards granted to employees 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 Amended and Restated 2012 Plan), the restricted stock shall automatically vest as permitted by the 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 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 December 31, 2016, the unearned compensation related to Company granted restricted common stock is $207,521 of which $112,100 (pertaining to 150,000 service-based 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 May 2017, the vesting date, and $9,770 (pertaining to 8,333 service-based restricted common stock awards) will be amortized on a straight-line basis through June 30, 2020, the date which they will have fully vested. The remaining balance of $85,651 (pertaining to 87,000 performance-based restricted common stock awards issued 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 years ended December 31 2016 and 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, December 31, 2015 1,965,000 $ 1.32 Granted 200,000 $ 1.36 Exercised — — Forfeited — — Expired — — Outstanding, December 31, 2016 2,165,000 $ 1.32 Options exercisable: December 31, 2015 1,090,000 $ 0.96 December 31, 2016 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 December 31, 2016 and 2015 was $1,282,950 and $846,350, respectively. The aggregate intrinsic value of performance-based stock options exercised in 2015 was $42,300. On September 8, 2015, the Company granted performance-based stock options to a non-executive officer employee 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 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%. 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 stock option awards (pertaining to stock awards granted in 2013 and subsequent grants made) 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 May 16, 2016, the Company granted a performance-based stock option to a non-executive officer employee to acquire 200,000 shares of common stock at an exercise price of $1.36 per share, which represented the closing price of the Company’s common stock as reported on the NYSE MKT on the date of grant. The per share fair-value of this performance-based option was $0.78. 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 1.26% and expected option life of four years. The volatility assumption was 77.54% and the forfeiture rate was assumed to be 0%. Under the terms of the performance-based stock option agreement granted on May 16, 2016, the award will incrementally vest and become exercisable upon achievement of specific annualized revenue targets in the Company’s network solutions segment. As of December 31, 2016, the Company had not incurred expense relating to this performance-based stock option as management determined it was more likely than not that the revenue targets would not be achieved. As of December 31, 2016, the unearned compensation related to the performance-based stock option to acquire 825,000 shares of common stock granted in August 2013 (with a weighted average per share exercise price of $1.77) and the performance-based stock option to acquire 50,000 shares of common stock granted in September 2015 (with a weighted average per share exercise price of $1.83) is $419,140 and $39,259, respectively, which have been, and are expected to be, amortized on a straight-line basis through December 31, 2020, the implicit service period. Unearned compensation in the amount of $155,810 related to the performance-based stock option granted in May 2016 (with a weighted average per share exercise price of $1.36) will begin to be amortized when achievement of specific annualized revenue targets in the Company’s network solutions segment are determined to be probable. The Company’s performance-based stock options granted prior to 2013 (consisting of 1,090,000 options) are fully amortized. For the years ended December 31, 2016 and 2015, the Company recorded compensation expense related to performance-based options in the amount of $114,600 and $85,205, respectively. Service-based stock option awards: A summary of service-based stock option activity, and related information for the years ended December 31, follows: Weighted Average Options Exercise Price Outstanding, January 1, 2015 522,000 $ 2.51 Granted 145,000 $ 1.30 Exercised — — Forfeited (120,000 ) $ 2.28 Expired (24,000 ) $ 2.55 Outstanding, December 31, 2015 523,000 $ 2.23 Granted 1,040,000 $ 1.41 Exercised — — Forfeited (70,000 ) $ 1.33 Expired (295,000 ) $ 2.46 Outstanding, December 31, 2016 1,198,000 $ 1.51 Options exercisable: December 31, 2015 378,000 $ 2.58 December 31, 2016 181,333 $ 2.09 The aggregate intrinsic value of outstanding service-based stock options (regardless of whether or not such options are exercisable) as of December 31, 2016 and 2015 was $567,300 and $0, respectively. On November 19, 2015, the Company granted service-based stock options to acquire 145,000 shares of common stock at an exercise price of $1.30 per share to the members of the Company’s Strategic and Planning Committee, which represents the closing price of the Company’s common stock as reported on the NYSE MKT on November 19, 2015, the date of grant. The per share fair-value of these service-based options was $0.75. 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 1.68% and expected option life of 4 years. Volatility assumption was 78.22% and the forfeiture rate was assumed to be 0%. Under the terms of the service-based stock option agreements relating to the November 19, 2015 stock option grants, the awards shall vest in twelve equal quarterly installments over a period of three years and shall be fully vested on November 19, 2018. On June 8, 2016, the Company granted to certain non-employee directors of the Company service-based stock options to acquire collectively 350,000 shares of common stock at an exercise price of $1.33 per share, which represented the closing price of the Company’s common stock as reported on the NYSE MKT on June 8, 2016, the date of grant. The per share fair-value of these service-based options was $0.76. 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 1.23% and expected option life of four years. The volatility assumption was 76.72% and the forfeiture rate was assumed to be 0%. These stock options were granted in connection with the annual compensation for services as a Company director. Such equity awards are intended to replace the cash component of the director compensation. On June 30, 2016, the service-based stock option to acquire 70,000 shares of common stock that was granted to Timothy Whelan on June 8, 2016, was terminated, unvested, in connection with his appointment as Chief Executive Officer of the Company. Under the terms of the remaining service-based stock option agreements relating to the June 8, 2016 stock option grants to the non-employee directors of the Company, the awards will fully vest on the date of the Company’s next annual shareholder’s meeting to be held in May 2017, or a vesting period of approximately one year, provided that the director’s service continues through the vesting date. On June 30, 2016, the Company granted to Timothy Whelan, its newly appointed Chief Executive Officer, a service-based stock option to acquire 400,000 shares of common stock at an exercise price of $1.34 per share, which represented the closing price of the Company’s common stock as reported on the NYSE MKT on the date of grant. The per share fair-value of this service-based option was $0.76. 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 1.01% and expected option life of four years. The volatility assumption was 76.68% and the forfeiture rate was assumed to be 0%. Under the terms of the service-based stock option agreement relating to the June 30, 2016 stock option grant, the award vests in sixteen equal quarterly installments over a period of four years and shall be fully vested on June 30, 2020. Under the terms of Mr. Whelan’s employment agreement, dated June 30, 2016, if Mr. Whelan’s employment is terminated by the Company without Cause, upon a Change of Control or by Mr. Whelan for Good Reason (as such terms are defined in his employment agreement), in each case, subject to his compliance with certain conditions, Mr. Whelan is entitled to (among other benefits) extension of the post-termination exercise period for all outstanding stock options of the Company’s common stock held by Mr. Whelan as of the date of his termination to the earlier of (a) the first anniversary of the date of termination, and (b) the date of expiration of the respective option, during which post-termination period such options shall continue to vest in accordance with their respective terms (to the extent not already fully vested). On September 16, 2016, the Company granted to certain employees of the Company service-based stock options to acquire a total of 200,000 shares of common stock at an exercise price of $1.60 per share, which represented the closing price of the Company’s common stock as reported on the NYSE MKT on September 16, 2016, the date of grant. The per share fair-value of these service-based options was $0.95. 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 1.21% and expected option life of four years. The volatility assumption was 81.21% and the forfeiture rate was assumed to be 0%. Under the terms of the service-based stock option agreements relating to the September 16, 2016 stock option grants, the awards vest in four equal annual installments over a period of four years and shall be fully vested on September 16, 2020. On October 24, 2016, the Company granted to an employee of the Company service-based stock options to acquire 20,000 shares of common stock at an exercise price of $1.62 per share, which represented the closing price of the Company’s common stock as reported on the NYSE MKT on October 24, 2016, the date of grant. The per share fair-value of these service-based options was $0.95. 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 1.27% and expected option life of four years. The volatility assumption was 79.84% and the forfeiture rate was assumed to be 0%. Under the terms of the service-based stock option agreement relating to the October 24, 2016 stock option grant, the award vests in four equal annual installments over a period of four years and shall be fully vested on October 24, 2020. On November 9, 2016, the Company granted to a non-employee director of the Company service-based stock options to acquire 35,000 shares of common stock at an exercise price of $1.64 per share, which represented the closing price of the Company’s common stock as reported on the NYSE MKT on November 9, 2016, the date of grant. The per share fair-value of these service-based options was $0.97. 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 1.49% and expected option life of four years. The volatility assumption was 80.05% and the forfeiture rate was assumed to be 0%. These stock options were granted in connection with the annual compensation for services as a Company director. Such equity awards are intended to replace the cash component of the director compensation. Under the terms of the service-based stock option agreement relating to the November 9, 2016 stock option grant to a non-employee director of the Company, the award will fully vest on the date of the Company’s next annual shareholder’s meeting to be held in May 2017, or a vesting period of approximately six months, provided that the director’s service continues through the vesting date. On November 13, 2016, the Company granted to a non-employee director of the Company service-based stock options to acquire 35,000 shares of common stock at an exercise price of $1.59 per share, which represented the closing price of the Company’s common stock as reported on the NYSE MKT on November 13, 2016, the date of grant. The per share fair-value of these service-based options was $0.94. 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 1.56% and expected option life of four years. The volatility assumption was 80.07% and the forfeiture rate was assumed to be 0%. These stock options were granted in connection with the annual compensation for services as a Company director. Such equity awards are intended to replace the cash component of the director compensation. Under the terms of the service-based stock option agreement relating to the November 13, 2016 stock option grant to a non-employee director of the Company, the award will fully vest on the date of the Company’s next annual shareholder’s meeting to be held in May 2017, or a vesting period of approximately six months, provided that the director’s service continues through the vesting date. As of December 31, 2016, the unearned compensation related to the service-based stock options granted in 2016 and 2015 was $544,617, which will be amortized over each of the grant’s respective service periods. At December 31, 2016, the Company’s service-based stock options granted prior to November 2015 were fully amortized. |
SEGMENT AND RELATED INFORMATION
SEGMENT AND RELATED INFORMATION | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 and 2015 is presented below: 2016 2015 Net revenues by segment: Network solutions $ 20,198,377 $ 21,534,831 Test and measurement 11,128,350 11,574,275 Total consolidated net revenues and net revenues of reportable segments $ 31,326,727 $ 33,109,106 Segment income (loss): Network solutions $ 2,485,585 $ 3,290,220 Test and measurement (248,468 ) 729,090 Income from reportable segments 2,237,117 4,019,310 Other unallocated amounts: Corporate expenses (4,785,226 ) (3,272,271 ) Other income - net 363,851 (24,418 ) Consolidated income (loss) from operations before income taxes $ (2,184,258 ) $ 722,621 Depreciation and amortization by segment: Network solutions $ 254,590 $ 225,194 Test and measurement 248,470 233,439 Total depreciation and amortization for reportable segments $ 503,060 $ 458,633 Capital expenditures by segment (a): Network solutions $ 463,626 $ 371,718 Test and measurement 354,962 91,710 Total consolidated capital expenditures by reportable segment $ 818,588 $ 463,428 Total assets by segment: Network solutions $ 10,594,770 $ 10,638,961 Test and measurement 7,851,479 7,153,310 Total assets for reportable segments 18,446,249 17,792,271 Corporate assets, principally cash and cash equivalents and deferred income taxes 16,988,886 16,914,053 Total consolidated assets $ 35,435,135 $ 34,706,324 (a) Net of equipment lease payable of $41,904 for 2016 (network solutions segment) and $48,804 for 2015 (test and measurement segment). In addition to its in-house sales staff, the Company uses manufacturers’ representatives to sell its products. For the year ended December 31, 2016, two representatives each accounted for approximately 12% and 11% of total consolidated revenues. No other single manufacturers’ representative accounted for 10% or more of total consolidated revenues in 2016. For the year ended December 31, 2015, no representative accounted for more than 10% of total consolidated revenues. Regional Revenues: Net consolidated revenues from operations by region were as follows: For the Years Ended December 31, 2016 2015 Americas $ 24,155,154 $ 24,946,340 Europe, Middle East, Africa (EMEA) 5,497,826 5,885,975 Asia Pacific (APAC) 1,673,747 2,276,791 $ 31,326,727 $ 33,109,106 Net revenues are attributable to a geographic area based on the destination of the product shipment, which may not be the final geographic destination of our international distributors’ end customer. The majority of shipments in the Americas are to customers located within the United States. For the years ended December 31, 2016 and 2015, sales in the United States amounted to $23,269,462 and $23,040,410, respectively. Shipments to the remaining regions presented above were largely concentrated in Israel and Germany (EMEA) and China (APAC). For the years ended December 31, 2016 and 2015, sales to Israel amounted to $1,178,295, or 21%, and $1,667,854, or 28%, of all shipments to the EMEA region, respectively. For the years ended December 31, 2016 and 2015, sales to Germany amounted to $715,518, or 13%, and $1,068,093, or 18%, of all shipments to the EMEA region, respectively. Sales to China, for the years ended December 31, 2016 and 2015, amounted to $1,104,217, or 66%, and $1,453,736, or 64%, 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, 2016 | |
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, 2016 and 2015 amounted to $378,497 and $425,462, respectively. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | NOTE 9 - INCOME TAXES: The components of income tax expense (benefit) related to income (loss) from operations are as follows: Years Ended December 31 , 2016 2015 Current: Federal $ — $ 5,272 State 37,437 64,948 Deferred: Federal (340,183 ) 244,737 State (49,488 ) 30,983 $ (352,234 ) $ 345,940 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, 2016 2015 % of % of Pre Tax Pre Tax Earnings Earnings Statutory federal income tax rate (34.0 )% 34.0 % Statutory state income tax rate (6.0 ) 6.0 State income tax net of federal tax benefit 7.7 3.6 Net change in valuation allowance 11.9 — Permanent differences 6.9 1.8 Other (2.6 ) 2.5 (16.1 )% 47.9 % In 2016 and 2015, the difference between the statutory and the effective tax rate is primarily due to a change in valuation allowance and a current provision for state income taxes, respectively. The components of deferred income taxes are as follows: December 31, 2016 2015 Deferred tax assets: Uniform capitalization of inventory costs for tax purposes $ 166,017 $ 158,599 Reserves on inventories 619,636 444,115 Reserves on product returns 48,564 — Accruals — 10,000 Tax effect of goodwill (540,557 ) (507,524 ) Book depreciation over tax (121,890 ) (43,514 ) Other timing differences 135,156 105,725 Net operating loss carryforward 12,559,023 11,035,216 12,865,949 11,202,617 Valuation allowance for deferred tax assets (5,462,349 ) (4,188,688 ) $ 7,403,600 $ 7,013,929 The Company has a domestic federal and state net operating loss carryforward at December 31, 2016 of approximately $17,500,000 and $42,300,000, respectively, which expires in 2029. The Company also has a foreign net operating loss carryforward at December 31, 2016 of approximately Euro 12,900,000 and approximately Euro 12,400,000 for German corporate tax and German trade tax purposes, respectively. 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 allowances of $5,462,349 and $4,188,688 at December 31, 2016 and 2015, respectively, are primarily 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, 2016, 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 federal 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 2013. The Company does not have any significant unrecognized tax positions and does not anticipate significant increase or decrease in unrecognized tax positions within the next twelve months. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2016 | |
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. Operating Leases: The Company leases a 45,700 square foot facility located in Hanover Township, Parsippany, New Jersey, which has a term ending March 31, 2023 and is currently being used as the Company’s principal corporate headquarters and manufacturing plant. The Company is also responsible for its proportionate share of the cost of utilities, repairs, taxes, and insurance. Monthly lease payments range from approximately $33,000 in year one to approximately $41,000 in year eight. Additionally, the Company had available an allowance of approximately $300,000 towards alterations and improvements to the premises, which expired on January 31, 2017. The Company used substantially all of the improvement allowance prior to its expiration. 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 future minimum lease payments are shown below: 2017 $ 421,138 2018 433,772 2019 446,786 2020 460,189 2021 473,995 Thereafter 611,164 $ 2,847,044 Rent expense, inclusive of common area maintenance charges, for the years ended December 31, 2016 and 2015 was $584,605 and $542,218, respectively. The Company leases certain equipment under operating lease arrangements. These operating leases expire in various years through 2023. 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, 2016: 2017 $ 52,764 2018 52,764 2019 52,764 2020 52,764 2021 52,764 Thereafter 8,794 $ 272,614 Purchase obligations consist of inventory that arises in the normal course of business operations. Future obligations and commitments as of December 31, 2016 consisted of the following: Table of Contractual Obligations Payments by Period Less than More than Total 1 Year 1-3 Years 4-5 Years 5 Years Facility Leases $ 2,847,044 $ 421,138 $ 1,340,747 $ 962,210 $ 122,949 Purchase Obligations 744,531 744,531 — — — Operating and Equipment Leases 272,614 52,764 158,292 61,558 — $ 3,864,189 $ 1,218,433 $ 1,499,039 $ 1,023,768 $ 122,949 Environmental Contingencies: In 1982, Boonton 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 Boonton. 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 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, 2016 and 2015 in connection with the site amounted to approximately $18,000 and $22,000, 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 the Company from all obligations. In December 2016, the Company entered into an agreement with an insurance company to settle prior disputes between the parties related to whether insurance policies were issued by a former insurer and whether they provided coverage for expenses arising from the NJDEP environmental matter. Under the terms of the settlement agreement, the Company received a payment in the amount of approximately $485,000 for full and final settlement of any and all claims which is reflected in other income (net) in the accompanying 2016 consolidated statement of operations. 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 an 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 no 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, 2016, the Company had no borrowings outstanding under the facility and approximately $4,500,000 of borrowing availability. The Company believes cash generated from operations will adequately meet near-term working capital requirements. On February 17, 2017, the Company partially funded the acquisition of CommAgility Limited with the cash from this money market account. Thus the line of credit is no longer available to the Company. 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 DA
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended |
Dec. 31, 2016 | |
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). 2016 Quarter 1 st 2 nd 3 rd 4 th Net revenues $ 6,368 $ 7,610 $ 8,344 $ 9,004 Gross profit 2,720 3,339 3,823 3,280 Operating income (loss) (921 ) (353 ) 268 (1,542 ) Net income (loss) (576 ) (218 ) 122 (1,159 ) Diluted net income (loss) per share $ (.03 ) $ (.01 ) $ .01 $ (.06 ) 2015 Quarter 1 st 2 nd 3 rd 4 th Net revenues $ 8,628 $ 8,213 $ 8,339 $ 7,929 Gross profit 3,864 3,566 3,623 3,775 Operating income 339 148 162 98 Net income 194 84 75 24 Diluted net income per share $ .01 $ .01 $ .00 $ .00 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | NOTE 12 - SUBSEQUENT EVENTS: On February 16, 2017, the Company entered into a senior credit facility and an asset-based lending agreement with a bank for the purpose of funding the acquisition of CommAgility Limited. The senior credit facility provides for a term loan in the aggregate principal amount of $760,000. Principal payments are $38,000 per quarter with a balloon payment at maturity. The asset-based revolving loan is subject to a borrowing base calculation, as defined in the agreement, up to a maximum availability of $9,000,000. The term loan and asset-based revolver bear interest at LIBOR (subject to a floor of 0%) plus a margin ranging from 3.25% to 3.75% and 2.75% and 3.25%, respectively, based on a fixed coverage charge ratio, as defined in the credit facility. Additionally, the credit facility is subject to customary terms and conditions, including an unused line fee and early termination fee. The credit facility termination date is November 16, 2019. On February 17, 2017, the Company completed the acquisition of CommAgility Ltd., a U.K. corporation (“CommAgility”) specializing in LTE technology. CommAgility is a vital supplier of signal processing technology for network validation systems, supporting LTE and emerging 5G networks, and its solution sets solve unique solutions for LTE/4G. The Company paid an initial purchase price of $17,550,000 comprised of approximately $11,300,000 in cash and approximately $6,250,000 in the form of 3,487,528 shares of the Company’s common stock. An additional $1,250,000 in cash is due to the sellers of CommAgility (the “Sellers”) in four equal installments payable quarterly starting in June 2017. Further, the Sellers may earn up to an additional $12,500,000 if certain financial targets are met during calendar year 2017 and 2018. The cash portion of the consideration at close was funded from a combination of cash on hand and borrowings from the credit facility disclosed above. The initial purchase price accounting and purchase price allocation for the acquisition of CommAgility have not been completed at the date of this filing given the proximity to the acquisition date. The purchase price, including an estimate of the contingent consideration, will be allocated to the tangible and intangible assets and liabilities acquired based on estimated fair values at the acquisition date, with any excess of purchase price over the estimated fair value of the net assets acquired recorded as goodwill. In connection with the acquisition of CommAgility, the Company incurred approximately $790,000 in related expenses through December 31, 2016 that are included in general and administrative expense in the accompanying Statement of Operations. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies [Text Block] | Organization and Basis of Presentation: Wireless Telecom Group, Inc., a New Jersey corporation, together with its subsidiaries (“we”, “us”, “our” or the “Company”), designs and manufactures radio frequency (“RF”) and microwave-based products for wireless and advanced communications industries and currently markets its products and services worldwide under the Boonton, Microlab and Noisecom brands. The Company’s complementary suite of high performance instruments and components includes peak power meters, signal analyzers, RF passive components and integrated subsystems, noise modules and precision noise generators. The Company serves both commercial and government markets with workflow-oriented, built-for-purpose solutions in distributed antenna systems (“DAS”), cellular/mobile, WiFi, WiMAX, private mobile radio, satellite, cable, radar, avionics, medical, and computing applications. The consolidated financial statements include the accounts of Wireless Telecom Group, Inc., doing business as, and operating under the trade name, Noise Com, Inc., and its wholly owned subsidiaries including Boonton Electronics Corporation and Microlab/FXR. All intercompany transactions are eliminated in consolidation. The Company presents its operations in two reportable segments: (1) network solutions and (2) test and measurement. The network solutions segment is comprised primarily of the operations of Microlab. The test and measurement segment is comprised 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 its 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 years ended December 31, 2016 and 2015, no single customer accounted for 10% or more of the Company’s total consolidated revenues. At December 31, 2016, one customer represented 16% of the Company’s gross accounts receivable balance. No other single customer represented 10% or more of the Company’s gross accounts receivable balance at December 31, 2016. At December 31, 2015, no single customer represented 10% or more of the Company’s gross accounts receivable balance. For the year ended December 31 2016, no single third-party supplier accounted for 10% or more of the Company’s total consolidated inventory purchases. For the year ended December 31, 2015, two third-party suppliers each accounted for approximately 10% of the Company’s total consolidated inventory purchases. No other third-party supplier accounted for 10% or more of the Company’s total consolidated inventory purchases for the year ended 2015. |
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, 2016, 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 (average cost) or market. Finished goods and work-in-process are valued at average cost of production, which includes material, labor and manufacturing expenses. The Company reviews inventory for excess and obsolescence based on best estimates of future demand, product lifecycle status and product development plans. During the second half of 2016, management initiated an inventory reduction program which, among other things, included selling aged raw materials inventory to industry brokers. As a result of this program, and continued detailed review of aged inventory, the Company changed its excess and obsolescence reserve methodology from a specific identification methodology to an aging methodology. This change in estimate resulted in a $549,000 increase in inventory reserves, which increased cost of revenues in the fourth quarter of 2016. Inventory carrying value is net of inventory reserves of $1,549,089 and $1,110,288 as of December 31, 2016 and 2015, respectively. Inventories consist of: December 31, 2016 2015 Raw materials $ 3,558,430 $ 3,993,052 Work-in-process 531,210 628,140 Finished goods 4,363,111 3,447,536 $ 8,452,751 $ 8,068,728 |
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: Machinery and equipment 5-10 years Furniture and fixtures 5-10 years Transportation equipment 3-5 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 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 will perform 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, no impairment is recognized. The Company’s goodwill balance of $1,351,392 at December 31, 2016 and 2015 relates to one of the Company’s reporting units, Microlab. Management’s qualitative assessment performed in the fourth quarters of 2016 and 2015 did not indicate any impairment of Microlab’s goodwill as its fair value is estimated to be 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 no 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 no special post shipment obligations or acceptance provisions that exist with any sales arrangements. The Company accrues a provision for sales returns as a reduction of revenue at the time of sale. |
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, 2016 and 2015 were $4,046,106 and $3,957,274, 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 $150,283 and $210,940 for the years ended December 31, 2016 and 2015, 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, no 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 uncertain tax positions 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 amounts recognized in the financial statements attributable to such position, if any, are recorded if there is a greater than 50% likelihood of being realized upon the ultimate resolution of the position. Based on the evaluations noted above, the Company has concluded that there are no significant uncertain tax positions requiring recognition or disclosure in its consolidated financial statements. |
Earnings Per Share, Policy [Policy Text Block] | Income (Loss) Per Common Share: Basic income (loss) per share is calculated by dividing income (loss) available to common shareholders by the weighted average number of shares of common stock outstanding during the period. Diluted income (loss) per share is calculated by dividing income (loss) 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, 2016 2015 Weighted average number of common shares outstanding — Basic 18,464,022 19,335,768 Potentially dilutive common stock equivalents 706,300 986,249 Weighted average number of common and equivalent shares outstanding-Diluted 19,170,322 20,322,017 Common stock equivalents are included in the diluted income (loss) per share calculation only when option exercise prices are lower than the average market price of the common shares for the period presented. The weighted average number of common stock equivalents not included in diluted income (loss) per share, because the effects are anti-dilutive, was 1,189,452 and 468,805 for 2016 and 2015, respectively. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements Affecting the Company: In January 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Accounting for Goodwill Impairment In January 2017, the FASB issued ASU No. 2017-01, Business Combinations: Clarifying the Definition of a Business In August 2016, the FASB issued ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments, In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation: Improvements to Employee Share-Based Payment Accounting, In February 2016, the FASB issued ASU 2016-02, Leases In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date 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. |
DESCRIPTION OF COMPANY AND SU21
DESCRIPTION OF COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | Inventories consist of: December 31, 2016 2015 Raw materials $ 3,558,430 $ 3,993,052 Work-in-process 531,210 628,140 Finished goods 4,363,111 3,447,536 $ 8,452,751 $ 8,068,728 |
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: Machinery and equipment 5-10 years Furniture and fixtures 5-10 years Transportation equipment 3-5 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, 2016 2015 Weighted average number of common shares outstanding — Basic 18,464,022 19,335,768 Potentially dilutive common stock equivalents 706,300 986,249 Weighted average number of common and equivalent shares outstanding-Diluted 19,170,322 20,322,017 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | Property, plant and equipment, consist of the following as of December 31: 2016 2015 Machinery and equipment $ 6,392,013 $ 5,532,832 Furniture and fixtures 139,754 124,943 Transportation equipment 120,758 158,549 Leasehold improvements 984,105 984,105 7,636,630 6,800,429 Less: accumulated depreciation 5,470,064 5,057,541 $ 2,166,566 $ 1,742,888 |
OTHER ASSETS (Tables)
OTHER ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure Text Block Supplement [Abstract] | |
Schedule of Other Assets [Table Text Block] | Other assets consist of the following as of December 31: 2016 2015 Product demo assets $ 559,874 $ 680,298 Security deposit 50,000 50,000 Other 50,245 35,032 Total $ 660,119 $ 765,330 |
ACCRUED EXPENSES AND OTHER CU24
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure Text Block Supplement [Abstract] | |
Schedule of Accrued Liabilities [Table Text Block] | Accrued expenses and other current liabilities consist of the following as of December 31: 2016 2015 Professional fees $ 195,286 $ 65,055 Commissions 130,110 211,051 Sales and use tax 112,734 114,806 Payroll and related benefits 93,202 192,902 Goods received not invoiced 10,376 2,986 Other 131,359 61,210 Total $ 673,067 $ 648,010 |
SHAREHOLDERS_ EQUITY (Tables)
SHAREHOLDERS’ EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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 share-based compensation expense by equity instrument for the years ended December 31: 2016 2015 Service-based stock options $ 354,896 $ — Service-based restricted common stock 208,345 210,600 Performance-based stock options 114,600 85,205 Performance-based restricted common stock 21,413 16,971 Total share-based compensation expense $ 699,254 $ 312,776 |
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, 2016 are summarized as follows: Weighted average Options Options Weighted average exercise price Outstanding Exercisable remaining life Performance-based $1.32 2,165,000 1,090,000 5.0 years Service-based $1.51 1,198,000 181,333 7.5 years 3,363,000 1,271,333 |
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, 2016 and 2015, and changes during the years ended December 31, 2016 and 2015 are presented below: Weighted Average Grant Date Non-vested Shares Number of Shares Fair Value Non-vested at January 1, 2015 180,000 $ 2.09 Granted 100,000 $ 2.22 Vested (80,000 ) $ 2.49 Forfeited (13,000 ) $ 1.77 Non-vested at December 31, 2015 187,000 $ 2.01 Granted 188,333 $ 1.38 Vested (101,042 ) $ 2.22 Forfeited (30,000 ) $ 1.33 Non-vested at December 31, 2016 244,291 $ 1.52 |
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, 2016 and 2015 under the 2012 Plan: Year ended December 31, 2016 Number Fair Market Individuals Granted Granted Share Vesting Date Board of Directors 120,000 $1.33 Next Annual Meeting (May 2017) 15,000 $1.64 Next Annual Meeting (May 2017) 15,000 $1.59 Next Annual Meeting (May 2017) Chief Executive Officer 8,333 $1.34 Incremental time vest (June 2020) Total shares granted 158,333 Year ended December 31, 2015 Number Individuals Granted Granted Share Vesting Date Board of Directors 100,000 $2.22 Annual Meeting (June 2016) |
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 2016 and 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, December 31, 2015 1,965,000 $ 1.32 Granted 200,000 $ 1.36 Exercised — — Forfeited — — Expired — — Outstanding, December 31, 2016 2,165,000 $ 1.32 Options exercisable: December 31, 2015 1,090,000 $ 0.96 December 31, 2016 1,090,000 $ 0.96 |
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: Weighted Average Options Exercise Price Outstanding, January 1, 2015 522,000 $ 2.51 Granted 145,000 $ 1.30 Exercised — — Forfeited (120,000 ) $ 2.28 Expired (24,000 ) $ 2.55 Outstanding, December 31, 2015 523,000 $ 2.23 Granted 1,040,000 $ 1.41 Exercised — — Forfeited (70,000 ) $ 1.33 Expired (295,000 ) $ 2.46 Outstanding, December 31, 2016 1,198,000 $ 1.51 Options exercisable: December 31, 2015 378,000 $ 2.58 December 31, 2016 181,333 $ 2.09 |
SEGMENT AND RELATED INFORMATI26
SEGMENT AND RELATED INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 and 2015 is presented below: 2016 2015 Net revenues by segment: Network solutions $ 20,198,377 $ 21,534,831 Test and measurement 11,128,350 11,574,275 Total consolidated net revenues and net revenues of reportable segments $ 31,326,727 $ 33,109,106 Segment income (loss): Network solutions $ 2,485,585 $ 3,290,220 Test and measurement (248,468 ) 729,090 Income from reportable segments 2,237,117 4,019,310 Other unallocated amounts: Corporate expenses (4,785,226 ) (3,272,271 ) Other income - net 363,851 (24,418 ) Consolidated income (loss) from operations before income taxes $ (2,184,258 ) $ 722,621 Depreciation and amortization by segment: Network solutions $ 254,590 $ 225,194 Test and measurement 248,470 233,439 Total depreciation and amortization for reportable segments $ 503,060 $ 458,633 Capital expenditures by segment (a): Network solutions $ 463,626 $ 371,718 Test and measurement 354,962 91,710 Total consolidated capital expenditures by reportable segment $ 818,588 $ 463,428 Total assets by segment: Network solutions $ 10,594,770 $ 10,638,961 Test and measurement 7,851,479 7,153,310 Total assets for reportable segments 18,446,249 17,792,271 Corporate assets, principally cash and cash equivalents and deferred income taxes 16,988,886 16,914,053 Total consolidated assets $ 35,435,135 $ 34,706,324 (a) Net of equipment lease payable of $41,904 for 2016 (network solutions segment) and $48,804 for 2015 (test and measurement segment). |
Schedule Of Net Consolidated Sales By Region [Table Text Block] | Net consolidated revenues from operations by region were as follows: For the Years Ended December 31, 2016 2015 Americas $ 24,155,154 $ 24,946,340 Europe, Middle East, Africa (EMEA) 5,497,826 5,885,975 Asia Pacific (APAC) 1,673,747 2,276,791 $ 31,326,727 $ 33,109,106 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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 (loss) from operations are as follows: Years Ended December 31 , 2016 2015 Current: Federal $ — $ 5,272 State 37,437 64,948 Deferred: Federal (340,183 ) 244,737 State (49,488 ) 30,983 $ (352,234 ) $ 345,940 |
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, 2016 2015 % of % of Pre Tax Pre Tax Earnings Earnings Statutory federal income tax rate (34.0 )% 34.0 % Statutory state income tax rate (6.0 ) 6.0 State income tax net of federal tax benefit 7.7 3.6 Net change in valuation allowance 11.9 — Permanent differences 6.9 1.8 Other (2.6 ) 2.5 (16.1 )% 47.9 % |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | The components of deferred income taxes are as follows: December 31, 2016 2015 Deferred tax assets: Uniform capitalization of inventory costs for tax purposes $ 166,017 $ 158,599 Reserves on inventories 619,636 444,115 Reserves on product returns 48,564 — Accruals — 10,000 Tax effect of goodwill (540,557 ) (507,524 ) Book depreciation over tax (121,890 ) (43,514 ) Other timing differences 135,156 105,725 Net operating loss carryforward 12,559,023 11,035,216 12,865,949 11,202,617 Valuation allowance for deferred tax assets (5,462,349 ) (4,188,688 ) $ 7,403,600 $ 7,013,929 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | The future minimum lease payments are shown below: 2017 $ 421,138 2018 433,772 2019 446,786 2020 460,189 2021 473,995 Thereafter 611,164 $ 2,847,044 |
Operating Leases of Lessee Disclosure [Table Text Block] | Future payments relative to continuing operations consist of the following at December 31, 2016: 2017 $ 52,764 2018 52,764 2019 52,764 2020 52,764 2021 52,764 Thereafter 8,794 $ 272,614 |
Contractual Obligation, Fiscal Year Maturity Schedule [Table Text Block] | Future obligations and commitments as of December 31, 2016 consisted of the following: Table of Contractual Obligations Payments by Period Less than More than Total 1 Year 1-3 Years 4-5 Years 5 Years Facility Leases $ 2,847,044 $ 421,138 $ 1,340,747 $ 962,210 $ 122,949 Purchase Obligations 744,531 744,531 — — — Operating and Equipment Leases 272,614 52,764 158,292 61,558 — $ 3,864,189 $ 1,218,433 $ 1,499,039 $ 1,023,768 $ 122,949 |
SELECTED QUARTERLY FINANCIAL 29
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information [Table Text Block] | The following is a summary of selected quarterly financial data from operations (in thousands, except per share amounts). 2016 Quarter 1 st 2 nd 3 rd 4 th Net revenues $ 6,368 $ 7,610 $ 8,344 $ 9,004 Gross profit 2,720 3,339 3,823 3,280 Operating income (loss) (921 ) (353 ) 268 (1,542 ) Net income (loss) (576 ) (218 ) 122 (1,159 ) Diluted net income (loss) per share $ (.03 ) $ (.01 ) $ .01 $ (.06 ) 2015 Quarter 1 st 2 nd 3 rd 4 th Net revenues $ 8,628 $ 8,213 $ 8,339 $ 7,929 Gross profit 3,864 3,566 3,623 3,775 Operating income 339 148 162 98 Net income 194 84 75 24 Diluted net income per share $ .01 $ .01 $ .00 $ .00 |
DESCRIPTION OF COMPANY AND SU30
DESCRIPTION OF COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 12 Months Ended | |
Dec. 31, 2016USD ($)shares | Dec. 31, 2015USD ($)shares | |
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 | |
Increase Decrease In Inventory Reserve (in Dollars) | $ 549,000 | |
Inventory Valuation Reserves (in Dollars) | 1,549,089 | $ 1,110,288 |
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) | 4,046,106 | 3,957,274 |
Advertising Expense (in Dollars) | 150,283 | $ 210,940 |
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 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in Shares) | shares | 1,189,452 | 468,805 |
Deferral Effective Period | 1 year | |
No Customer [Member] | ||
DESCRIPTION OF COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||
Number of significant customer respect to revenue | 0 | 0 |
Concentration Risk, Percentage | 10.00% | 10.00% |
Number of Significant Customer Respect to Accounts Receivable | 0 | 0 |
Percentage Of Accounts Receivable Attributable To Significant Customer | 10.00% | 10.00% |
Customer One [Member] | ||
DESCRIPTION OF COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||
Number of Significant Customer Respect to Accounts Receivable | 1 | |
Percentage Of Accounts Receivable Attributable To Significant Customer | 16.00% | |
No Single Third Party [Member] | ||
DESCRIPTION OF COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||
Percentage Of Inventory | 10.00% | |
Two Third Party Supplier [Member] | ||
DESCRIPTION OF COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||
Percentage Of Inventory | 10.00% | |
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 SU31
DESCRIPTION OF COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of inventory current - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule of inventory current [Abstract] | ||
Raw materials | $ 3,558,430 | $ 3,993,052 |
Work-in-process | 531,210 | 628,140 |
Finished goods | 4,363,111 | 3,447,536 |
$ 8,452,751 | $ 8,068,728 |
DESCRIPTION OF COMPANY AND SU32
DESCRIPTION OF COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Property, plant and equipment, useful lives | 12 Months Ended |
Dec. 31, 2016 | |
Minimum [Member] | Machinery and Equipment [Member] | |
DESCRIPTION OF COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Property, plant and equipment, useful lives [Line Items] | |
Useful Life | 5 years |
Minimum [Member] | Furniture and Fixtures [Member] | |
DESCRIPTION OF COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Property, plant and equipment, useful lives [Line Items] | |
Useful Life | 5 years |
Minimum [Member] | Transportation Equipment [Member] | |
DESCRIPTION OF COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Property, plant and equipment, useful lives [Line Items] | |
Useful Life | 3 years |
Maximum [Member] | Machinery and Equipment [Member] | |
DESCRIPTION OF COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Property, plant and equipment, useful lives [Line Items] | |
Useful Life | 10 years |
Maximum [Member] | Furniture and Fixtures [Member] | |
DESCRIPTION OF COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Property, plant and equipment, useful lives [Line Items] | |
Useful Life | 10 years |
Maximum [Member] | Transportation Equipment [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 SU33
DESCRIPTION OF COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of weighted average number of shares - shares | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of weighted average number of shares [Abstract] | ||
Weighted average number of common shares outstanding — Basic | 18,464,022 | 19,335,768 |
Potentially dilutive common stock equivalents | 706,300 | 986,249 |
Weighted average number of common and equivalent shares outstanding-Diluted | 19,170,322 | 20,322,017 |
PROPERTY, PLANT AND EQUIPMENT34
PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation | $ 503,060 | $ 458,633 |
PROPERTY, PLANT AND EQUIPMENT35
PROPERTY, PLANT AND EQUIPMENT (Details) - Property, Plant and Equipment - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment | $ 7,636,630 | $ 6,800,429 |
Less: accumulated depreciation | 5,470,064 | 5,057,541 |
2,166,566 | 1,742,888 | |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment | 6,392,013 | 5,532,832 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment | 139,754 | 124,943 |
Transportation Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment | 120,758 | 158,549 |
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, 2016 | Dec. 31, 2015 |
Disclosure Text Block Supplement [Abstract] | ||
Other inventory demo reserve | $ 1,001,619 | $ 872,012 |
OTHER ASSETS (Details) - Other
OTHER ASSETS (Details) - Other assets - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Other Assets [Abstract] | ||
Product demo assets | $ 559,874 | $ 680,298 |
Security deposit | 50,000 | 50,000 |
Other | 50,245 | 35,032 |
Total | $ 660,119 | $ 765,330 |
ACCRUED EXPENSES AND OTHER CU38
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) - Accrued Expenses and Other Current Liabilities - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Accrued Expenses and Other Current Liabilities [Abstract] | ||
Professional fees | $ 195,286 | $ 65,055 |
Commissions | 130,110 | 211,051 |
Sales and use tax | 112,734 | 114,806 |
Payroll and related benefits | 93,202 | 192,902 |
Goods received not invoiced | 10,376 | 2,986 |
Other | 131,359 | 61,210 |
Total | $ 673,067 | $ 648,010 |
STOCK REPURCHASES (Details)
STOCK REPURCHASES (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure Text Block Supplement [Abstract] | ||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 42,995 | 977,447 |
Payments For Repurchase Of Treasury Stock | $ 65,468 | $ 1,438,771 |
Sale of Stock, Price Per Share | $ 1.52 | $ 1.47 |
SHAREHOLDERS_ EQUITY (Details)
SHAREHOLDERS’ EQUITY (Details) | Nov. 13, 2016$ / sharesshares | Nov. 09, 2016$ / sharesshares | Jun. 08, 2016USD ($)$ / sharesshares | Dec. 31, 2016USD ($)shares | Nov. 30, 2016USD ($)shares | Oct. 24, 2016$ / sharesshares | Sep. 16, 2016$ / sharesshares | Jun. 30, 2016USD ($)$ / sharesshares | May 31, 2016USD ($)$ / sharesshares | Nov. 19, 2015$ / sharesshares | Sep. 30, 2015USD ($)$ / sharesshares | Aug. 31, 2013USD ($)$ / sharesshares | Dec. 31, 2016USD ($)$ / sharesshares | Dec. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2013USD ($)shares | Jun. 30, 2014shares |
SHAREHOLDERS’ EQUITY (Details) [Line Items] | ||||||||||||||||
Stock or Units Available for Distributions (in Shares) | shares | 2,000,000 | |||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award Additional Number of Share Available for Grant (in Shares) | shares | 1,658,045 | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant (in Shares) | shares | 1,096,000 | 1,096,000 | ||||||||||||||
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 (in Dollars) | $ 699,254 | $ 312,776 | ||||||||||||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Restricted Stock Unit or Restricted Stock Award, Requisite Service Period Recognition (in Dollars) | 544,617 | |||||||||||||||
Share-based Compensation (in Dollars) | $ 699,254 | 312,776 | ||||||||||||||
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 (in Dollars) | $ 114,600 | $ 85,205 | ||||||||||||||
Restricted Stock [Member] | ||||||||||||||||
SHAREHOLDERS’ EQUITY (Details) [Line Items] | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year | 6 months | 4 years | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted (in Shares) | shares | 15,000 | 15,000 | 150,000 | 8,333 | 87,000 | |||||||||||
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) | $ / shares | $ 1.59 | $ 1.64 | $ 1.33 | $ 1.34 | $ 1.38 | $ 2.22 | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested Options Forfeited, Number of Shares (in Shares) | shares | 30,000 | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number (in Shares) | shares | 120,000 | 30,000 | ||||||||||||||
Allocated Share-based Compensation Expense (in Dollars) | $ 159,600 | $ 9,770 | $ 48,450 | $ 11,166 | $ 208,345 | $ 210,600 | ||||||||||
Number Of Equal Quarterly Installments Vested Awards | 16 | |||||||||||||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Restricted Stock Unit or Restricted Stock Award, Requisite Service Period Recognition (in Dollars) | 207,521 | |||||||||||||||
Stock Based Compensation to be Amortized Next Fiscal Year (in Dollars) | 112,100 | 112,100 | ||||||||||||||
Stock Based Compensation to be Amortized Depending on Certain Performance Conditions (in Dollars) | 85,651 | 85,651 | ||||||||||||||
Performance Based Stock Options [Member] | ||||||||||||||||
SHAREHOLDERS’ EQUITY (Details) [Line Items] | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value (in Dollars) | 1,282,950 | $ 1,282,950 | 846,350 | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Aggregate Intrinsic Value (in Dollars) | $ 42,300 | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares) | shares | 200,000 | 50,000 | 825,000 | 200,000 | 50,000 | |||||||||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price (in Dollars per share) | $ / shares | $ 1.36 | $ 1.83 | $ 1.77 | $ 1.36 | $ 1.83 | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Exercise Price (in Dollars per share) | $ / shares | $ 0.94 | $ 0.78 | $ 1.03 | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.00% | 0.00% | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 1.26% | 1.53% | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 4 years | 4 years | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 77.54% | 75.46% | ||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Forfeiture Rate | 0.00% | 0.00% | ||||||||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options (in Dollars) | $ 155,810 | $ 39,259 | $ 419,140 | |||||||||||||
Stock Granted, Value, Share-based Compensation, Gross (in Dollars) | $ 1,090,000 | |||||||||||||||
Share-based Compensation (in Dollars) | $ 114,600 | $ 85,205 | ||||||||||||||
Service Based Stock Options [Member] | ||||||||||||||||
SHAREHOLDERS’ EQUITY (Details) [Line Items] | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year | |||||||||||||||
Allocated Share-based Compensation Expense (in Dollars) | 354,896 | |||||||||||||||
Number Of Equal Quarterly Installments Vested Awards | 4 | 4 | 16 | 12 | ||||||||||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Restricted Stock Unit or Restricted Stock Award, Requisite Service Period Recognition (in Dollars) | 544,617 | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value (in Dollars) | $ 567,300 | $ 567,300 | $ 0 | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares) | shares | 35,000 | 35,000 | 350,000 | 20,000 | 200,000 | 400,000 | 145,000 | 1,040,000 | 145,000 | |||||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price (in Dollars per share) | $ / shares | $ 1.59 | $ 1.64 | $ 1.33 | $ 1.62 | $ 1.60 | $ 1.34 | $ 1.30 | $ 1.41 | $ 1.30 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Exercise Price (in Dollars per share) | $ / shares | $ 0.97 | $ 0.76 | $ 0.95 | $ 0.95 | $ 0.76 | $ 0.75 | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 1.56% | 1.49% | 1.23% | 1.27% | 1.21% | 1.01% | 1.68% | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 4 years | 4 years | 4 years | 4 years | 4 years | 4 years | 4 years | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 80.07% | 80.05% | 76.72% | 79.84% | 81.21% | 76.68% | 78.22% | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Forfeiture Rate | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | |||||||||
Terms of Equal Quarterly Installments Vested Awards | 6 months | 6 months | 4 years | 4 years | 4 years | 3 years | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award Options Terminated Unvested (in Shares) | shares | 70,000 |
SHAREHOLDERS_ EQUITY (Details)
SHAREHOLDERS’ EQUITY (Details) - Schedule of share-based compensation expense, components by equity type - USD ($) | Jun. 08, 2016 | Dec. 31, 2016 | Nov. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 |
SHAREHOLDERS’ EQUITY (Details) - Schedule of share-based compensation expense, components by equity type [Line Items] | ||||||
Share Based Compensation | $ 699,254 | $ 312,776 | ||||
Service Based Stock Options [Member] | ||||||
SHAREHOLDERS’ EQUITY (Details) - Schedule of share-based compensation expense, components by equity type [Line Items] | ||||||
Share Based Compensation | 354,896 | |||||
Restricted Stock [Member] | ||||||
SHAREHOLDERS’ EQUITY (Details) - Schedule of share-based compensation expense, components by equity type [Line Items] | ||||||
Share Based Compensation | $ 159,600 | $ 9,770 | $ 48,450 | $ 11,166 | 208,345 | 210,600 |
Performance Shares [Member] | ||||||
SHAREHOLDERS’ EQUITY (Details) - Schedule of share-based compensation expense, components by equity type [Line Items] | ||||||
Share Based Compensation | 114,600 | 85,205 | ||||
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 | $ 21,413 | $ 16,971 |
SHAREHOLDERS_ EQUITY (Details42
SHAREHOLDERS’ EQUITY (Details) - Schedule of stock options outstanding and exercisable - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
SHAREHOLDERS’ EQUITY (Details) - Schedule of stock options outstanding and exercisable [Line Items] | |||
Options Outstanding | 3,363,000 | ||
Options Exercisable | 1,271,333 | ||
Performance Based Stock Options [Member] | |||
SHAREHOLDERS’ EQUITY (Details) - Schedule of stock options outstanding and exercisable [Line Items] | |||
Weighted average exercise price (in Dollars per share) | $ 1.32 | $ 1.32 | $ 1.33 |
Options Outstanding | 2,165,000 | 1,965,000 | 2,070,000 |
Options Exercisable | 1,090,000 | 1,090,000 | |
Weighted average remaining life | 5 years | ||
Service Based Stock Options [Member] | |||
SHAREHOLDERS’ EQUITY (Details) - Schedule of stock options outstanding and exercisable [Line Items] | |||
Weighted average exercise price (in Dollars per share) | $ 1.51 | $ 2.23 | $ 2.51 |
Options Outstanding | 1,198,000 | 523,000 | 522,000 |
Options Exercisable | 181,333 | 378,000 | |
Weighted average remaining life | 7 years 6 months |
SHAREHOLDERS_ EQUITY (Details43
SHAREHOLDERS’ EQUITY (Details) - Schedule of restricted common stock awards granted - Restricted Stock [Member] - $ / shares | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
SHAREHOLDERS’ EQUITY (Details) - Schedule of restricted common stock awards granted [Line Items] | ||
Number of Shares Granted | 188,333 | 100,000 |
Performance Based Restricted Common Stock Awards [Member] | ||
SHAREHOLDERS’ EQUITY (Details) - Schedule of restricted common stock awards granted [Line Items] | ||
Number of Shares Granted | 158,333 | |
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 | 120,000 | 100,000 |
Fair Market Value per Granted Share | $ 1.33 | $ 2.22 |
Vesting Date | Next Annual Meeting | Annual Meeting |
Board Of Directors Two [Member] | Performance Based Restricted Common Stock Awards [Member] | ||
SHAREHOLDERS’ EQUITY (Details) - Schedule of restricted common stock awards granted [Line Items] | ||
Number of Shares Granted | 15,000 | |
Fair Market Value per Granted Share | $ 1.64 | |
Vesting Date | Next Annual Meeting | |
Board Of Directors Three [Member] | Performance Based Restricted Common Stock Awards [Member] | ||
SHAREHOLDERS’ EQUITY (Details) - Schedule of restricted common stock awards granted [Line Items] | ||
Number of Shares Granted | 15,000 | |
Fair Market Value per Granted Share | $ 1.59 | |
Vesting Date | 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 | 8,333 | |
Fair Market Value per Granted Share | $ 1.34 | |
Vesting Date | Incremental time vest |
SHAREHOLDERS_ EQUITY (Details44
SHAREHOLDERS’ EQUITY (Details) - Schedule of non-vested restricted stock activity - Restricted Stock [Member] - $ / shares | Nov. 13, 2016 | Nov. 09, 2016 | Jun. 08, 2016 | Jun. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
SHAREHOLDERS’ EQUITY (Details) - Schedule of non-vested restricted stock activity [Line Items] | |||||||
Number of Shares, Non-vested | 244,291 | 187,000 | 180,000 | ||||
Weighted Average Grant Date Fair Value, Non-vested | $ 1.52 | $ 2.01 | $ 2.09 | ||||
Number of Shares, Granted | 188,333 | 100,000 | |||||
Weighted Average Grant Date Fair Value, Granted | $ 1.59 | $ 1.64 | $ 1.33 | $ 1.34 | $ 1.38 | $ 2.22 | |
Number of Shares, Vested | (101,042) | (80,000) | |||||
Weighted Average Grant Date Fair Value, Vested | $ 2.22 | $ 2.49 | |||||
Number of Shares, Forfeited | (30,000) | (13,000) | |||||
Weighted Average Grant Date Fair Value, Forfeited | $ 1.33 | $ 1.77 |
SHAREHOLDERS_ EQUITY (Details45
SHAREHOLDERS’ EQUITY (Details) - Schedule of performance-based stock option activity, and related information - $ / shares | 1 Months Ended | 12 Months Ended | ||||
May 31, 2016 | Sep. 30, 2015 | Aug. 31, 2013 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
SHAREHOLDERS’ EQUITY (Details) - Schedule of performance-based stock option activity, and related information [Line Items] | ||||||
Options, Outstanding | 3,363,000 | |||||
Options exercisable: | ||||||
Option, Options exercisable | 1,271,333 | |||||
Performance Based Stock Options [Member] | ||||||
SHAREHOLDERS’ EQUITY (Details) - Schedule of performance-based stock option activity, and related information [Line Items] | ||||||
Options, Outstanding | 2,165,000 | 1,965,000 | 2,070,000 | |||
Weighted Average Exercise Price, Outstanding | $ 1.32 | $ 1.32 | $ 1.33 | |||
Options, Granted | 200,000 | 50,000 | 825,000 | 200,000 | 50,000 | |
Weighted Average Exercise Price, Granted | $ 1.36 | $ 1.83 | $ 1.77 | $ 1.36 | $ 1.83 | |
Options, Exercised | (30,000) | |||||
Weighted Average Exercise Price, Exercised | $ 0.78 | |||||
Options, Forfeited | (125,000) | |||||
Weighted Average Exercise Price, Forfeited | $ 1.77 | |||||
Options exercisable: | ||||||
Option, Options exercisable | 1,090,000 | 1,090,000 | ||||
Weighted Average Exercise Price, Options exercisable | $ 0.96 | $ 0.96 |
SHAREHOLDERS_ EQUITY (Details46
SHAREHOLDERS’ EQUITY (Details) - Schedule of service-based stock option activity, and related information - $ / shares | Nov. 13, 2016 | Nov. 09, 2016 | Jun. 08, 2016 | Oct. 24, 2016 | Sep. 16, 2016 | Jun. 30, 2016 | Nov. 19, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
SHAREHOLDERS’ EQUITY (Details) - Schedule of service-based stock option activity, and related information [Line Items] | ||||||||||
Options, Outstanding | 3,363,000 | |||||||||
Options exercisable: | ||||||||||
Options, Balance | 1,271,333 | |||||||||
Service Based Stock Options [Member] | ||||||||||
SHAREHOLDERS’ EQUITY (Details) - Schedule of service-based stock option activity, and related information [Line Items] | ||||||||||
Options, Outstanding | 1,198,000 | 523,000 | 522,000 | |||||||
Weighted Average Exercise Price, Outstanding | $ 1.51 | $ 2.23 | $ 2.51 | |||||||
Options, Granted | 35,000 | 35,000 | 350,000 | 20,000 | 200,000 | 400,000 | 145,000 | 1,040,000 | 145,000 | |
Weighted Average Exercise Price, Granted | $ 1.59 | $ 1.64 | $ 1.33 | $ 1.62 | $ 1.60 | $ 1.34 | $ 1.30 | $ 1.41 | $ 1.30 | |
Options, Forfeited | (70,000) | (120,000) | ||||||||
Weighted Average Exercise Price, Forfeited | $ 1.33 | $ 2.28 | ||||||||
Options, Expired | (295,000) | (24,000) | ||||||||
Weighted Average Exercise Price, Expired | $ 2.46 | $ 2.55 | ||||||||
Options exercisable: | ||||||||||
Options, Balance | 181,333 | 378,000 | ||||||||
Weighted Average Exercise Price, Balance | $ 2.09 | $ 2.58 |
SEGMENT AND RELATED INFORMATI47
SEGMENT AND RELATED INFORMATION (Details) | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
SEGMENT AND RELATED INFORMATION (Details) [Line Items] | ||||||||||
Number of Reportable Segments | 2 | |||||||||
Capital Lease Obligations Incurred (in Dollars) | $ 41,904 | $ 48,804 | ||||||||
Entity-Wide Revenue, Major Sales Representative, Percentage | 10.00% | 10.00% | ||||||||
Number of Third Party Supplier Related to Percentage of Consolidated Inventory Purchased | 0 | 0 | ||||||||
Revenue, Net (in Dollars) | $ 9,004,000 | $ 8,344,000 | $ 7,610,000 | $ 6,368,000 | $ 7,929,000 | $ 8,339,000 | $ 8,213,000 | $ 8,628,000 | ||
Network Solutions [Member] | ||||||||||
SEGMENT AND RELATED INFORMATION (Details) [Line Items] | ||||||||||
Capital Lease Obligations Incurred (in Dollars) | $ 41,904 | |||||||||
Test and Measurement [Member] | ||||||||||
SEGMENT AND RELATED INFORMATION (Details) [Line Items] | ||||||||||
Capital Lease Obligations Incurred (in Dollars) | $ 48,804 | |||||||||
Representative One [Member] | ||||||||||
SEGMENT AND RELATED INFORMATION (Details) [Line Items] | ||||||||||
Entity-Wide Revenue, Major Sales Representative, Percentage | 12.00% | |||||||||
Representative Two [Member] | ||||||||||
SEGMENT AND RELATED INFORMATION (Details) [Line Items] | ||||||||||
Entity-Wide Revenue, Major Sales Representative, Percentage | 11.00% | |||||||||
United States [Member] | ||||||||||
SEGMENT AND RELATED INFORMATION (Details) [Line Items] | ||||||||||
Revenue, Net (in Dollars) | $ 23,269,462 | 23,040,410 | ||||||||
Israel [Member] | ||||||||||
SEGMENT AND RELATED INFORMATION (Details) [Line Items] | ||||||||||
Revenue, Net (in Dollars) | $ 1,178,295 | $ 1,667,854 | ||||||||
Israel Percentage of EMEA [Member] | ||||||||||
SEGMENT AND RELATED INFORMATION (Details) [Line Items] | ||||||||||
Revenue, Net Percentage | 21.00% | 28.00% | ||||||||
Germany [Member] | ||||||||||
SEGMENT AND RELATED INFORMATION (Details) [Line Items] | ||||||||||
Revenue, Net (in Dollars) | $ 715,518 | $ 1,068,093 | ||||||||
German Percentage of EMEA [Member] | ||||||||||
SEGMENT AND RELATED INFORMATION (Details) [Line Items] | ||||||||||
Revenue, Net Percentage | 13.00% | 18.00% | ||||||||
China [Member] | ||||||||||
SEGMENT AND RELATED INFORMATION (Details) [Line Items] | ||||||||||
Revenue, Net (in Dollars) | $ 1,104,217 | $ 1,453,736 | ||||||||
Chinese Percentage of APAC [Member] | ||||||||||
SEGMENT AND RELATED INFORMATION (Details) [Line Items] | ||||||||||
Revenue, Net Percentage | 66.00% | 64.00% |
SEGMENT AND RELATED INFORMATI48
SEGMENT AND RELATED INFORMATION (Details) - Schedule of Segment Reporting Financial Information Including Total Assets by Segment - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | ||
Net revenues by segment: | |||
Net sales by segment | $ 31,326,727 | $ 33,109,106 | |
Segment income (loss): | |||
Segment income | 2,237,117 | 4,019,310 | |
Other unallocated amounts: | |||
Corporate expenses | (4,785,226) | (3,272,271) | |
Other income - net | 363,851 | (24,418) | |
Consolidated income (loss) from operations before income taxes | (2,184,258) | 722,621 | |
Depreciation and amortization by segment: | |||
Depreciation and amortization by segment | 503,060 | 458,633 | |
Capital expenditures by segment (a): | |||
Capital expenditures by segment | [1] | 818,588 | 463,428 |
Total assets by segment: | |||
Total assets by segment | 18,446,249 | 17,792,271 | |
Corporate assets, principally cash and cash equivalents and deferred income taxes | 16,988,886 | 16,914,053 | |
Total consolidated assets | 35,435,135 | 34,706,324 | |
Network Solutions [Member] | |||
Net revenues by segment: | |||
Net sales by segment | 20,198,377 | 21,534,831 | |
Segment income (loss): | |||
Segment income | 2,485,585 | 3,290,220 | |
Depreciation and amortization by segment: | |||
Depreciation and amortization by segment | 254,590 | 225,194 | |
Capital expenditures by segment (a): | |||
Capital expenditures by segment | [1] | 463,626 | 371,718 |
Total assets by segment: | |||
Total assets by segment | 10,594,770 | 10,638,961 | |
Test and Measurement [Member] | |||
Net revenues by segment: | |||
Net sales by segment | 11,128,350 | 11,574,275 | |
Segment income (loss): | |||
Segment income | (248,468) | 729,090 | |
Depreciation and amortization by segment: | |||
Depreciation and amortization by segment | 248,470 | 233,439 | |
Capital expenditures by segment (a): | |||
Capital expenditures by segment | [1] | 354,962 | 91,710 |
Total assets by segment: | |||
Total assets by segment | $ 7,851,479 | $ 7,153,310 | |
[1] | Net of equipment lease payable of $41,904 for 2016 (network solutions segment) and $48,804 for 2015 (test and measurement segment). |
SEGMENT AND RELATED INFORMATI49
SEGMENT AND RELATED INFORMATION (Details) - Schedule of net consolidated sales from operations by region - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
SEGMENT AND RELATED INFORMATION (Details) - Schedule of net consolidated sales from operations by region [Line Items] | ||
Revenues | $ 31,326,727 | $ 33,109,106 |
Americas [Member] | ||
SEGMENT AND RELATED INFORMATION (Details) - Schedule of net consolidated sales from operations by region [Line Items] | ||
Revenues | 24,155,154 | 24,946,340 |
Europe, Middle East, Africa [Member] | ||
SEGMENT AND RELATED INFORMATION (Details) - Schedule of net consolidated sales from operations by region [Line Items] | ||
Revenues | 5,497,826 | 5,885,975 |
Asia Pacific [Member] | ||
SEGMENT AND RELATED INFORMATION (Details) - Schedule of net consolidated sales from operations by region [Line Items] | ||
Revenues | $ 1,673,747 | $ 2,276,791 |
RETIREMENT PLAN (Details)
RETIREMENT PLAN (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | ||
Pension Contributions | $ 378,497 | $ 425,462 |
INCOME TAXES (Details)
INCOME TAXES (Details) | 12 Months Ended | ||
Dec. 31, 2016USD ($) | Dec. 31, 2016EUR (€) | Dec. 31, 2015USD ($) | |
INCOME TAXES (Details) [Line Items] | |||
Operating Loss Carryforwards Expiration Period | 2,029 | ||
German Corporate Tax [Member] | |||
INCOME TAXES (Details) [Line Items] | |||
Operating Loss Carryforwards | € | € 12,900,000 | ||
German Trade Tax [Member] | |||
INCOME TAXES (Details) [Line Items] | |||
Operating Loss Carryforwards | € | € 12,400,000 | ||
Domestic Tax Authority [Member] | |||
INCOME TAXES (Details) [Line Items] | |||
Operating Loss Carryforwards | $ 17,500,000 | ||
Foreign Tax Authority [Member] | |||
INCOME TAXES (Details) [Line Items] | |||
Operating Loss Carryforwards | 42,300,000 | ||
Operating Loss Carryforwards, Valuation Allowance | $ 5,462,349 | $ 4,188,688 |
INCOME TAXES (Details) - Schedu
INCOME TAXES (Details) - Schedule of income tax expense (benefit) related to income (loss) from operations - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Current: | ||
Federal | $ 5,272 | |
State | $ 37,437 | 64,948 |
Deferred: | ||
Federal | (340,183) | 244,737 |
State | (49,488) | 30,983 |
$ (352,234) | $ 345,940 |
INCOME TAXES (Details) - Sche53
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, 2016 | Dec. 31, 2015 | |
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% |
Statutory state income tax rate | (6.00%) | 6.00% |
State income tax net of federal tax benefit | 7.70% | 3.60% |
Net change in valuation allowance | 11.90% | |
Permanent differences | 6.90% | 1.80% |
Other | (2.60%) | 2.50% |
(16.10%) | 47.90% |
INCOME TAXES (Details) - Sche54
INCOME TAXES (Details) - Schedule of deferred tax assets and liabilities - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred tax assets: | ||
Uniform capitalization of inventory costs for tax purposes | $ 166,017 | $ 158,599 |
Reserves on inventories | 619,636 | 444,115 |
Reserves on product returns | 48,564 | |
Accruals | 10,000 | |
Tax effect of goodwill | (540,557) | (507,524) |
Book depreciation over tax | (121,890) | (43,514) |
Other timing differences | 135,156 | 105,725 |
Net operating loss carryforward | 12,559,023 | 11,035,216 |
12,865,949 | 11,202,617 | |
Valuation allowance for deferred tax assets | (5,462,349) | (4,188,688) |
$ 7,403,600 | $ 7,013,929 |
COMMITMENTS AND CONTINGENCIES55
COMMITMENTS AND CONTINGENCIES (Details) | 12 Months Ended | |
Dec. 31, 2016USD ($)ft² | Dec. 31, 2015USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | ||
Warranties Period of Product | 1 year | |
Operating Leases Area (in Square Feet) | ft² | 45,700 | |
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 optionfor one five-year period at fair market value to be determined at term expiration. | |
Lease Renewal Option | 1 | |
Lease Renewable Term | 5 years | |
Lease Expense Included In Continuing Operations | $ 584,605 | $ 542,218 |
Litigation Settlement, Amount | 18,000 | $ 22,000 |
Security Deposit Liability | $ 485,000 | |
Line of Credit Facility, Borrowing Capacity, Description | The Company maintains a lineof credit with an investment bank. The credit facility provides borrowing availability of up to 100% of the Company’s moneymarket account balance and 99% of the Company’s short-term investment securities and, under the terms and conditions of theloan 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 |
COMMITMENTS AND CONTINGENCIES56
COMMITMENTS AND CONTINGENCIES (Details) - Schedule of future minimum lease payments - Building [Member] | Dec. 31, 2016USD ($) |
COMMITMENTS AND CONTINGENCIES (Details) - Schedule of future minimum lease payments [Line Items] | |
2,017 | $ 421,138 |
2,018 | 433,772 |
2,019 | 446,786 |
2,020 | 460,189 |
2,021 | 473,995 |
Thereafter | 611,164 |
$ 2,847,044 |
COMMITMENTS AND CONTINGENCIES57
COMMITMENTS AND CONTINGENCIES (Details) - Schedule of future lease payments relative to continuing operations - Equipment [Member] | Dec. 31, 2016USD ($) |
Operating Leased Assets [Line Items] | |
2,017 | $ 52,764 |
2,018 | 52,764 |
2,019 | 52,764 |
2,020 | 52,764 |
2,021 | 52,764 |
Thereafter | 8,794 |
$ 272,614 |
COMMITMENTS AND CONTINGENCIES58
COMMITMENTS AND CONTINGENCIES (Details) - Schedule of contractual obligations | Dec. 31, 2016USD ($) |
COMMITMENTS AND CONTINGENCIES (Details) - Schedule of contractual obligations [Line Items] | |
Contractual Obligations, Total | $ 3,864,189 |
Contractual Obligations, Less than 1 Year | 1,218,433 |
Contractual Obligations, 1-3 Years | 1,499,039 |
Contractual Obligations, 4-5 Years | 1,023,768 |
Contractual Obligations, More than 5 Years | 122,949 |
Facility Lease [Member] | |
COMMITMENTS AND CONTINGENCIES (Details) - Schedule of contractual obligations [Line Items] | |
Contractual Obligations, Total | 2,847,044 |
Contractual Obligations, Less than 1 Year | 421,138 |
Contractual Obligations, 1-3 Years | 1,340,747 |
Contractual Obligations, 4-5 Years | 962,210 |
Contractual Obligations, More than 5 Years | 122,949 |
Purchase Obligations [Member] | |
COMMITMENTS AND CONTINGENCIES (Details) - Schedule of contractual obligations [Line Items] | |
Contractual Obligations, Total | 744,531 |
Contractual Obligations, Less than 1 Year | 744,531 |
Operating and Equipment Leases [Member] | |
COMMITMENTS AND CONTINGENCIES (Details) - Schedule of contractual obligations [Line Items] | |
Contractual Obligations, Total | 272,614 |
Contractual Obligations, Less than 1 Year | 52,764 |
Contractual Obligations, 1-3 Years | 158,292 |
Contractual Obligations, 4-5 Years | $ 61,558 |
SELECTED QUARTERLY FINANCIAL 59
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) - Summary of selected quarterly financial data - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Summary of selected quarterly financial data [Abstract] | ||||||||||
Net revenues | $ 9,004,000 | $ 8,344,000 | $ 7,610,000 | $ 6,368,000 | $ 7,929,000 | $ 8,339,000 | $ 8,213,000 | $ 8,628,000 | ||
Gross profit | 3,280,000 | 3,823,000 | 3,339,000 | 2,720,000 | 3,775,000 | 3,623,000 | 3,566,000 | 3,864,000 | $ 13,161,754 | $ 14,827,874 |
Operating income (loss) | (1,542,000) | 268,000 | (353,000) | (921,000) | 98,000 | 162,000 | 148,000 | 339,000 | $ (2,548,109) | $ 747,039 |
Net income (loss) | $ (1,159,000) | $ 122,000 | $ (218,000) | $ (576,000) | $ 24,000 | $ 75,000 | $ 84,000 | $ 194,000 | ||
Diluted net income (loss) per share (in Dollars per share) | $ (0.06) | $ 0.01 | $ (0.01) | $ (0.03) | $ 0 | $ 0 | $ 0.01 | $ 0.01 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) | 1 Months Ended | 12 Months Ended | ||
Feb. 17, 2017USD ($)shares | Feb. 16, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
SUBSEQUENT EVENTS (Details) [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 4,500,000 | |||
General and Administrative Expense | 6,467,426 | $ 4,963,756 | ||
CommAgility [Member] | ||||
SUBSEQUENT EVENTS (Details) [Line Items] | ||||
General and Administrative Expense | $ 790,000 | |||
CommAgility [Member] | Subsequent Event [Member] | ||||
SUBSEQUENT EVENTS (Details) [Line Items] | ||||
Line of Credit Facility, Periodic Payment, Principal | $ 38,000 | |||
Derivative, Floor Interest Rate | 0.00% | |||
Credit Facility Termination Date | Nov. 16, 2019 | |||
Business Combination, Consideration Transferred | $ 17,550,000 | |||
Payments to Acquire Businesses, Gross | 11,300,000 | |||
Stock Issued During Period, Value, Acquisitions | $ 6,250,000 | |||
Stock Issued During Period, Shares, Acquisitions (in Shares) | shares | 3,487,528 | |||
Business Combination, Consideration Transferred, Liabilities Incurred | $ 1,250,000 | |||
Number of Installments | 4 | |||
Maximum Amount Payable On Milestone Achievement | $ 12,500,000 | |||
Senior Credit Facility [Member] | CommAgility [Member] | Subsequent Event [Member] | ||||
SUBSEQUENT EVENTS (Details) [Line Items] | ||||
Term Loan Principal Amount | $ 760,000 | |||
Asset Based Revolver [Member] | CommAgility [Member] | Subsequent Event [Member] | ||||
SUBSEQUENT EVENTS (Details) [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 9,000,000 | |||
Asset Based Revolver [Member] | Minimum [Member] | CommAgility [Member] | Subsequent Event [Member] | ||||
SUBSEQUENT EVENTS (Details) [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 2.75% | |||
Asset Based Revolver [Member] | Maximum [Member] | CommAgility [Member] | Subsequent Event [Member] | ||||
SUBSEQUENT EVENTS (Details) [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 3.25% | |||
Term Loan [Member] | Minimum [Member] | CommAgility [Member] | Subsequent Event [Member] | ||||
SUBSEQUENT EVENTS (Details) [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 3.25% | |||
Term Loan [Member] | Maximum [Member] | CommAgility [Member] | Subsequent Event [Member] | ||||
SUBSEQUENT EVENTS (Details) [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 3.75% |