Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Mar. 01, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2020 | ||
Document Transition Report | false | ||
Entity File Number | 1-5005 | ||
Entity Registrant Name | INTRICON CORPORATION | ||
Entity Incorporation, State or Country Code | PA | ||
Entity Tax Identification Number | 23-1069060 | ||
Entity Address, Address Line One | 1260 Red Fox Road | ||
Entity Address, City or Town | Arden Hills | ||
Entity Address, State or Province | MN | ||
Entity Address, Postal Zip Code | 55112 | ||
City Area Code | 651 | ||
Local Phone Number | 636-9770 | ||
Title of 12(b) Security | Common stock, par value $1.00 per share | ||
Trading Symbol | IIN | ||
Security Exchange Name | NASDAQ | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Common Stock, Shares Outstanding | 8,998,536 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Public Float | $ 113,106,778 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Interactive Data Current | Yes | ||
Entity Central Index Key | 0000088790 | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Portions of the Company's definitive proxy statement for the 2021 annual meeting of shareholders are incorporated by reference into Part III of this report; provided, however, that the Audit Committee Report and any other information in such Proxy Statement that is not required to be included in this Annual Report on Form 10-K, shall not be deemed to be incorporated herein or filed for the purposes of the Securities Act of 1933, as amended or the Securities Exchange Act of 1934, as amended. |
Consolidated Statements Of Oper
Consolidated Statements Of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Consolidated Statements Of Operations [Abstract] | ||||
Revenue, net | $ 102,773 | [1] | $ 113,493 | $ 113,948 |
Cost of goods sold | 76,598 | 82,507 | 77,717 | |
Gross profit | 26,175 | 30,986 | 36,231 | |
Operating expenses: | ||||
Sales and marketing | 6,671 | 11,498 | 11,467 | |
General and administrative | 15,007 | 13,933 | 11,718 | |
Research and development | 5,248 | 3,830 | 4,671 | |
Restructuring charges | 1,171 | |||
Other operating expenses | 1,153 | |||
Impairment loss (Note 6 and 7) | 3,765 | |||
Total operating expenses | 29,250 | 33,026 | 27,856 | |
Operating (loss) income | (3,075) | (2,040) | 8,375 | |
Interest income (expense), net | 331 | 920 | (314) | |
Other income (expense), net | 316 | (743) | (815) | |
(Loss) income from continuing operations before income taxes and discontinued operations | (2,428) | (1,863) | 7,246 | |
Income tax expense | 61 | 201 | 484 | |
(Loss) income from continuing operations before discontinued operations | (2,489) | (2,064) | 6,762 | |
Loss on disposal of discontinued operations (Note 4) | (1,116) | |||
Loss from discontinued operations (Note 4) | (597) | (1,215) | ||
Net (loss) income | (2,489) | (3,777) | 5,547 | |
Less: Income allocated to non-controlling interest | 35 | |||
Net (loss) income attributable to Intricon shareholders | $ (2,524) | $ (3,777) | $ 5,547 | |
Basic (loss) income per share attributable to Intricon shareholders: | ||||
Continuing operations | $ (0.28) | $ (0.23) | $ 0.89 | |
Discontinued operations | (0.20) | (0.16) | ||
Net (loss) income per share: | (0.28) | (0.43) | 0.73 | |
Diluted (loss) income per share attributable to Intricon shareholders: | ||||
Continuing operations | (0.28) | (0.23) | 0.78 | |
Discontinued operations | (0.20) | (0.14) | ||
Net (loss) income per share: | $ (0.28) | $ (0.43) | $ 0.64 | |
Average shares outstanding: | ||||
Basic | 8,894 | 8,748 | 7,599 | |
Diluted | 8,894 | 8,748 | 8,630 | |
[1] | During the quarter ended March 31, 2020, we recorded a cumulative adjustment of $ 1.2 million to reduce revenue within our other medical market to correct an error related to prior periods as a result of our determination that a portion of our sales being recognized over time needed to be recognized at a point in time. The adjustment included a reduction of the related cost of goods sold of $ 0.8 million and related impacts to reduce the contract asset and an increase to inventory. The adjustment was not material to our Consolidated Financial Statements for any quarterly or annual period. |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive (Loss) Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Consolidated Statements Of Comprehensive (Loss) Income [Abstract] | |||
Net (loss) income | $ (2,489) | $ (3,777) | $ 5,547 |
Unrealized foreign currency translation adjustment from continuing operations | 59 | (10) | (206) |
Realized pension and postretirement obligations | 20 | 19 | 20 |
Unrealized loss on pension and postretirement obligations | (238) | ||
Realized foreign currency translation loss from discontinued operations previously unrealized (Note 2) | 280 | ||
Realized foreign currency translation gain from investment in partnerships | 118 | ||
Interest rate swap | (8) | ||
Comprehensive (loss) income | $ (2,648) | $ (3,370) | $ 5,353 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 8,608 | $ 8,523 |
Restricted cash | 672 | 639 |
Short-term investment securities | 19,793 | 23,451 |
Accounts receivable, less provision for doubtful accounts of $210 at December 31, 2020 and $325 at December 31, 2019 | 10,115 | 8,993 |
Inventories | 19,513 | 16,377 |
Contract assets | 9,107 | 10,237 |
Other current assets | 1,466 | 1,975 |
Current assets of discontinued operations | 80 | |
Total current assets | 69,274 | 70,275 |
Machinery and equipment | 45,661 | 41,073 |
Less: Accumulated depreciation | 31,484 | 27,522 |
Net machinery and equipment | 14,177 | 13,551 |
Goodwill | 13,714 | 9,551 |
Intangible assets | 10,785 | 5,545 |
Operating lease right-of-use assets, net | 6,701 | 4,372 |
Investment in partnerships | 570 | 1,160 |
Long-term investment securities | 5,085 | 8,629 |
Other assets, net | 990 | 510 |
Total assets | 121,296 | 113,593 |
Current liabilities: | ||
Current financing leases | 21 | 101 |
Current operating leases | 2,156 | 1,729 |
Accounts payable | 8,670 | 9,876 |
Accrued salaries, wages and commissions | 3,581 | 2,274 |
Other accrued liabilities | 4,235 | 2,869 |
Liabilities of discontinued operations | 77 | |
Total current liabilities | 18,663 | 16,926 |
Noncurrent financing leases | 30 | |
Noncurrent operating leases | 4,726 | 2,937 |
Other postretirement benefit obligations | 385 | 382 |
Accrued pension liabilities | 907 | 655 |
Deferred tax liabilities, net | 1,018 | |
Other long-term liabilities | 4,398 | 2,171 |
Total liabilities | 30,097 | 23,101 |
Commitments and contingencies (Note 20) | ||
Shareholders' equity: | ||
Common stock, $1.00 par value per share; 20,000 shares authorized; 8,951 and 8,781 shares issued and outstanding at December 31, 2020 and December 31, 2019, respectively | 8,951 | 8,781 |
Additional paid-in capital | 89,702 | 86,770 |
Accumulated deficit | (6,810) | (4,286) |
Accumulated other comprehensive loss | (679) | (520) |
Total shareholders' equity | 91,164 | 90,745 |
Non-controlling interest | 35 | (253) |
Total equity | 91,199 | 90,492 |
Total liabilities and equity | $ 121,296 | $ 113,593 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Consolidated Balance Sheets [Abstract] | ||
Accounts receivable, provision for doubtful accounts | $ 210 | $ 325 |
Common stock, par value | $ 1 | $ 1 |
Common stock, shares authorized | 20,000 | 20,000 |
Common stock, shares issued | 8,951 | 8,781 |
Common stock, shares outstanding | 8,951 | 8,781 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities: | |||
Net (loss) income | $ (2,489) | $ (3,777) | $ 5,547 |
Loss from discontinued operations | 1,713 | 1,215 | |
(Loss) income from continuing operations | (2,489) | (2,064) | 6,762 |
Adjustments to reconcile net (loss) income from continuing operations to net cash provided by operating activities: | |||
Depreciation and amortization | 4,622 | 3,277 | 2,891 |
Impairment of goodwill and intangible assets | 3,765 | ||
Equity in loss of partnerships | 125 | 288 | 390 |
Amortization of debt issuance costs | 158 | ||
Stock-based compensation | 2,382 | 1,886 | 1,395 |
Change in fair value of contingent consideration | 660 | ||
Provision for doubtful accounts | (115) | (482) | 475 |
Loss on disposal of assets | 169 | ||
Changes in operating assets and liabilities: | |||
Accounts receivable | 456 | 2,769 | (3,219) |
Inventories | (1,190) | 1,609 | (5,086) |
Contract assets | 1,130 | (4,613) | (2,645) |
Other assets | 554 | 440 | (403) |
Accounts payable | (2,105) | (3,057) | 1,851 |
Accrued expenses | 1,745 | (2,077) | (700) |
Other liabilities | (331) | (216) | (394) |
Net cash provided by operating activities of continuing operations | 5,613 | 1,525 | 1,475 |
Net cash provided by (used in) operating activities of discontinued operations | 3 | (55) | (1,298) |
Net cash provided by operating activities | 5,616 | 1,470 | 177 |
Cash flows from investing activities: | |||
Purchases of machinery and equipment | (3,629) | (4,593) | (5,503) |
Payments for acquisition of a business | (7,128) | ||
Payments for acquisition of intangible assets | (818) | ||
Purchase of investment securities | (19,941) | (43,797) | (38,093) |
Proceeds from sale of investment securities | 38,015 | ||
Proceeds from maturities of investment securities | 27,194 | 11,575 | |
Investment in partnerships | (609) | (1,397) | |
Net cash used in investing activities of continuing operations | (3,504) | (227) | (44,993) |
Net cash used in investing activities of discontinued operations | (15) | (4) | |
Net cash used in investing activities | (3,504) | (242) | (44,997) |
Cash flows from financing activities: | |||
Payment of financing leases | (96) | (111) | |
Payments for contingent consideration liabilities | (500) | ||
Payments on liabilities for acquisition of intangible assets | (1,387) | ||
Exercise of stock options and employee stock purchase plan shares | 237 | 306 | 727 |
Withholding of common stock upon vesting of restricted stock units | (246) | (304) | |
Proceeds from long-term debt | 14,169 | ||
Repayments of long-term debt | (25,868) | ||
Payment of debt issuance costs | (88) | ||
Proceeds from issuance of common stock, net of costs | 88,967 | ||
Payments for repurchase of common stock and related costs | (25,907) | ||
Net cash (used in) provided by financing activities | (1,992) | (109) | 52,000 |
Effect of exchange rate changes on cash | (2) | (4) | (150) |
Net increase in cash, cash equivalents and restricted cash | 118 | 1,115 | 7,030 |
Cash, cash equivalents and restricted cash, beginning of period | 9,162 | 8,047 | 1,017 |
Cash, cash equivalents and restricted cash, end of period | $ 9,280 | $ 9,162 | $ 8,047 |
Consolidated Statements Of Equi
Consolidated Statements Of Equity - USD ($) shares in Thousands, $ in Thousands | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings (Accumulated Deficit) [Member] | Accumulated Other Comprehensive Loss [Member] | Non-Controlling Interest [Member] | Total |
Balance at Dec. 31, 2017 | $ 6,900 | $ 21,581 | $ (6,056) | $ (733) | $ (253) | $ 21,439 |
Balance, shares at Dec. 31, 2017 | 6,900 | |||||
Exercise of stock options, net | $ 532 | (23) | $ 509 | |||
Exercise of stock options, net, shares | 532 | 600 | ||||
Shares issued under the employee stock purchase plan | $ 7 | 211 | $ 218 | |||
Shares issued under the employee stock purchase plan, shares | 7 | |||||
Stock-based compensation | 1,395 | 1,395 | ||||
Issuance of common stock | $ 1,725 | 87,242 | 88,967 | |||
Issuance of common stock, shares | 1,725 | |||||
Repurchase of common stock | $ (500) | (25,407) | (25,907) | |||
Repurchase of common stock, shares | (500) | |||||
Net (loss) income | 5,547 | 5,547 | ||||
Comprehensive income (loss) | (194) | (194) | ||||
Balance at Dec. 31, 2018 | $ 8,664 | 84,999 | (509) | (927) | (253) | 91,974 |
Balance, shares at Dec. 31, 2018 | 8,664 | |||||
Exercise of stock options, net | $ 69 | 29 | $ 98 | |||
Exercise of stock options, net, shares | 69 | 129 | ||||
Withholding of common stock upon vesting of restricted stock units | $ 36 | (340) | $ (304) | |||
Withholding of common stock upon vesting of restricted stock units, shares | 36 | |||||
Shares issued under the employee stock purchase plan | $ 9 | 199 | 208 | |||
Shares issued under the employee stock purchase plan, shares | 9 | |||||
Stock-based compensation | $ 3 | 1,883 | 1,886 | |||
Stock-based compensation, shares | 3 | |||||
Net (loss) income | (3,777) | (3,777) | ||||
Comprehensive income (loss) | 407 | 407 | ||||
Balance at Dec. 31, 2019 | $ 8,781 | 86,770 | (4,286) | (520) | (253) | 90,492 |
Balance, shares at Dec. 31, 2019 | 8,781 | |||||
Exercise of stock options, net | $ 37 | (5) | $ 32 | |||
Exercise of stock options, net, shares | 37 | 107 | ||||
Withholding of common stock upon vesting of restricted stock units | $ 37 | (283) | $ (246) | |||
Withholding of common stock upon vesting of restricted stock units, shares | 37 | |||||
Shares issued under the employee stock purchase plan | $ 16 | 189 | 205 | |||
Shares issued under the employee stock purchase plan, shares | 16 | |||||
Acquisition of Emerald Medical Services | $ 80 | 902 | 982 | |||
Acquisition of Emerald Medical Services, shares | 80 | |||||
Controlling interest acquired in subsidiary | (253) | 253 | ||||
Stock-based compensation | 2,382 | 2,382 | ||||
Net (loss) income | (2,524) | 35 | (2,489) | |||
Comprehensive income (loss) | (159) | (159) | ||||
Balance at Dec. 31, 2020 | $ 8,951 | $ 89,702 | $ (6,810) | $ (679) | $ 35 | $ 91,199 |
Balance, shares at Dec. 31, 2020 | 8,951 |
Summary Of Significant Accounti
Summary Of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Summary Of Significant Accounting Policies [Abstract] | |
Summary Of Significant Accounting Policies | 1. SU MMARY OF SIGNIFICANT ACCOUNTING POLICIES Intricon Corporation is an international company and joint development manufacturer (“JDM”) of micromedical components, sub-assemblies and final devices. The Company serves as a JDM partner to leading medical device original equipment manufacturers (“OEMs”) by designing, developing, engineering, manufacturing, packaging and distributing micromedical products for high growth markets, such as diabetes, peripheral vascular, interventional pulmonology, electrophysiology and hearing healthcare. Our mission is to improve, extend and save lives by advancing innovative micromedical technologies through joint development and manufacturing partnerships with industry leading medical device companies. The Company is headquartered in Arden Hills, Minnesota and operates globally with facilities in Minnesota, Illinois, California, Singapore, Indonesia and Germany. Over the past year , the Company has embarked on a transformation strategy to accelerate growth through expansion of its product and service offerings and geographic footprint. Aligned with this strategy , the Company acquired Emerald Medical Services Pte., LTD (“EMS”) , a Singapore based, joint development provider of complex catheter applications , in May 2020 . Basis of Presentation – The Company prepares financial statements in conformity with accounting principles generally accepted in the United States of America. On June 25, 2019, the Company’s officers, pursuant to delegated authority from the board, approved plans to discontinue the operations of its United Kingdom (UK) subsidiary. For all periods presented, the Company classified this business as discontinued operations, and, accordingly, has reclassified historical financial data presented herein. See further information in Note 4. Consolidation – The consolidated financial statements include the accounts of the Company and its consolidated subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. Principles of Consolidation – The Company evaluates its voting and variable interests in entities on a qualitative and quantitative basis. The Company consolidates entities in which it concludes it has the power to direct the activities that most significantly impact an entity’s economic success and has the obligation to absorb losses or the right to receive benefits that could be significant to the entity. Business Combinations – The Company records acquisitions in accordance with ASC 805, Business Combinations, with identifiable assets acquired and liabilities assumed recorded at their estimated fair values on the acquisition date. The excess of the purchase price over the estimated fair values of the net tangible and net intangible assets acquired is recorded as goodwill. The application of ASC 805, Business Combinations requires management to make significant estimates and assumptions in the determination of the fair value of assets acquired and liabilities assumed in order to properly allocate purchase price consideration between goodwill and assets that are depreciated and amortized. Our estimates are based on historical experience, information obtained from the management of the acquired companies and, when appropriate, include assistance from independent third-party appraisal firms. These estimates are inherently uncertain and unpredictable. In addition, unanticipated events or circumstances may occur which may affect the accuracy or validity of such estimates. See Note 2 for additional detail on the EMS business combination. Discontinued Operations – The Company records discontinued operations when the disposal of a separately identified business unit constitutes a strategic shift in the Company’s operations. See Note 4 for additional detail. Non-Controlling Interests – Since May 2020, the Company owns 54 percent of Emerald Extrusion Services LLC. (“EES”), which was acquired as part of the EMS acquisition. The Company has consolidated the results of EES for 2020 based on the Company’s ability to control the operations of the entity. The remaining ownership is accounted for as a non-controlling interest and reported as part of equity in the Consolidated Balance Sheets. Segment Disclosures – Operating segments are identified as components of an enterprise about which separate financial information is available for evaluation by the chief operating decision-maker (“CODM”) in making decisions regarding resource allocation and assessing performance. The CODM uses net income as our primary measure of performance. We view our operations and manage our business as one operating segment since the restructuring of HHE in 2020. Prior to 2020, the Company operated in two reportable segments, our body-worn device segment and our direct-to-end-consumer hearing health segment. Use of Estimates – The Company makes estimates and assumptions relating to the reporting of assets and liabilities, the recording of reported amounts of revenues and expenses and the disclosure of contingent assets and liabilities to prepare these consolidated financial statements. Actual results could differ from those estimates. Considerable management judgment is necessary in estimating future cash flows and other factors affecting the valuation of goodwill and intangible assets, including the operating and macroeconomic factors that may affect them. The Company uses historical financial information, internal plans and projections and industry information in making such estimates. Revenue Recognition – Revenue is measured based on consideration specified in the contract with a customer, adjusted for any applicable estimates of variable consideration and other factors affecting the transaction price, including noncash consideration, consideration paid or payable to customers and significant financing components. Revenue from all customers is recognized when a performance obligation is satisfied by transferring control of a distinct good or service to a customer. Individual promised goods and services in a contract are considered a performance obligation and accounted for separately if the customer can benefit from the good or service on its own or with other resources that are readily available to the customer and the good or service is separately identifiable from other promises in the arrangement. When an arrangement includes multiple performance obligations, the consideration is allocated between the performance obligations in proportion to their estimated stand-alone selling price. Costs related to products delivered are recognized in the period incurred, unless criteria for capitalization of costs are met. Cost of goods sold consist primarily of direct labor, manufacturing overhead, materials and components. The Company excludes from revenue taxes collected from a customer that are assessed by a governmental authority and imposed on and concurrent with a specific revenue-producing transaction. The Company includes shipping and handling fees in revenue. Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as a fulfillment cost and are included in cost of goods sold. The timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled receivables (contract assets), and customer advances and deposits (contract liabilities) on the Consolidated Balance Sheet. When more than one party is involved in providing goods or services to a customer, the Company determines whether it is a principal or an agent in these transactions by evaluating the nature of its promise to the customer. The Company is a principal and therefore records revenue on a gross basis if it controls a promised good or service before transferring that good or service to the customer. The Company is an agent and records as revenue the net amount it retains for its agency services if its role is to arrange for another entity to provide the goods or services. Performance obligations - A performance obligation is a promise in a contract to transfer a distinct good or service to the customer. A contract’s transaction price is allocated to each distinct performance obligation in proportion to the standalone selling price for each and recognized as revenue when, or as, the performance obligation is satisfied. The Company’s various performance obligations and the timing or method of revenue recognition in each of the Company’s markets are discussed below: Medical market - Customer orders from the medical market consist of a specified number of assembled and customized parts that the customer further integrates into their production process to produce market ready products. Each unit of product delivered under a customer order represents a distinct and separate performance obligation as the customer can benefit from each unit on its own or with other resources that are readily available to the customer and each unit of product is separately identifiable from other products in the arrangement. Customer orders do not include additional follow-on goods or services. With the exception of prompt payment discounts, the transaction price for medical market products is the invoiced amount. Variable consideration in the form of refunds, credits, rebates, price concessions, pricing incentives or other items impacting transaction price are not present. All of the Company’s products manufactured for the medical market are designed to each customer’s specifications, do not have an alternative use and cannot be sold or redirected by the Company to others. The Company considers contractual arrangements, laws and legal precedent in determining enforceable right. The Company has an enforceable right to payment for any finished or in-process units, including a reasonable margin, if the customer terminates the contract for reasons other than the Company’s failure to perform as promised within our medical diabetes market and a select customer within our other medical market. For contractual arrangements in which an enforceable right exists, control of these units is deemed to transfer to the customer over time during the manufacturing process, using the same measure of progress toward satisfying the promise to deliver the units to the customer. Consequently, the transaction price is recognized as revenue over time for contractual arrangements with an enforceable right, based on actual costs incurred in the manufacturing process to date relative to total expected costs to produce all ordered units. The transaction price for contractual arrangements without an enforceable right to payment for any finished or in-process units including a reasonable margin is recognized as revenue at a point in time. Medical market products are invoiced when shipped and paid within normal commercial terms. The Company records a contract asset for revenue recognized over time in the production process for customized products that have not been shipped or invoiced to the customer. Hearing health market - Customer orders from the hearing health market consist of hearing aid devices and related accessories. Each unit of product delivered under a customer order represents a distinct and separate performance obligation as the customer can benefit from each unit on its own or with other resources that are readily available to the customer and each unit of product is separately identifiable from other products in the arrangement. With the exception of prompt payment discounts, the transaction price for the hearing health markets products is the invoiced amount. Variable consideration in the form of refunds, credits, rebates, price concessions, pricing incentives or other items impacting transaction price are not present. Nearly all of the Company’s products manufactured for the hearing health market can be reworked without significant cost and sold to another customer in the event of the customer’s termination of an order before delivery, and therefore have an alternative use to the Company. Generally, revenue is recognized upon the transfer of control of the products which is based on shipment terms; however, in certain cases the amount of shipment is adjusted for expected future returns and related consideration received. Professional audio market - The Company sells body-worn audio devices with application in the aviation, fire, law enforcement, safety and military markets as well as for performers and production staff in the music and stage performance markets. Each unit on a customer’s purchase order represents a distinct and separate performance obligation as the customer can benefit from each unit on its own or with other resources that are readily available to the customer and each unit is separately identifiable from the others because one does not significantly affect, modify or customize another. Variable consideration in the form of refunds, credits, rebates, price concessions, pricing incentives or other items impacting the transaction price are not present. Invoiced amounts are deemed to approximate standalone selling price. The products manufactured for the professional audio market can be reworked without significant cost and sold to another customer in the event of the customer’s termination of an order before delivery and therefore have an alternative use to the Company. Transfer of control of the goods, and revenue recognition, occurs at the point in time of shipment or delivery of the products to the customer depending on the applicable shipping terms. Professional audio market products are billed when shipped and paid within normal commercial terms. Hearing health direct-to-end-consumer (DTEC) market - The hearing health DTEC business distributes hearing aids and related accessories to the end consumer and is the Company’s only business market that generates revenue from sales to the end consumer. The Company also sells a limited number of service plans for the hearing aids. Each product or service is a distinct performance obligation as each is independently useful either on its own or together with other products procured from the Company or other vendors and each product or service is separately identifiable from the others because one does not significantly affect, modify or customize another. Invoiced amounts approximate standalone selling price. The hearing health DTEC business offers a 60-day trial period to the end consumer for hearing aids, during which customers can return the hearing aids for a full refund or exchange for a different hearing aid. The Company recognizes revenue only after completion of the 60-day trial period, when the customer’s commitment to the arrangement is deemed to exist and an enforceable right to payment is established. The transaction price for hearing aid accessories and service plans is the invoiced amount. Variable consideration in the form of refunds, credits, rebates, price concessions, pricing incentives or other items impacting transaction price are not present. Hearing aid accessories are billed and revenue is recognized upon shipment to the customer. Invoices are paid within normal commercial terms. Annual service plans are billed along with the hearing aid at the end of the 60-day trial period or upon renewal of the service plan and paid within normal commercial terms. As the customer consumes the benefits of the service plan relatively evenly over the plan term, revenue for service plans is recognized on a straight-line basis commencing at the end of the trial period. Sales Commissions - The Company has elected to apply the practical expedient provided by ASC 340-40-25-4 and recognize the incremental costs of obtaining contracts as an expense when incurred, as the amortization period of the assets that would have otherwise been recognized is one year or less. These costs are included in sales and marketing expenses on the Consolidated Statements of Operations. Fair Value Measurements – The Company follows the authoritative guidance on fair value measurements and disclosures with respect to assets and liabilities that are measured at fair value on both a recurring and nonrecurring basis. Fair value is defined as the exit price, or the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. The authoritative guidance also establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs market participants would use in valuing the asset or liability, based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the factors market participants would use in valuing the asset or liability developed based upon the best information available in the circumstances. The categorization of financial assets and financial liabilities within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The hierarchy is broken down into three levels defined as follows: ● Level 1 – Inputs are quoted prices in active markets for identical assets or liabilities. ● Level 2 – Inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, and inputs (other than quoted prices) that are observable for the asset or liability either directly or indirectly. ● Level 3 – Inputs are unobservable for the asset or liability. The Company reviews the fair value hierarchy classification on a quarterly basis. Changes in the ability to observe valuation inputs may result in a reclassification of levels for certain securities within the fair value hierarchy. The Company’s policy is to recognize transfers into and out of levels within the fair value hierarchy at the end of the fiscal quarter in which the actual event or change in circumstances that caused the transfer occurs. There were no transfers between Level 1, Level 2, or Level 3 during the years ended December 31, 2020 and 2019. When a determination is made to classify an asset or liability within Level 3, the determination is based upon the significance of the unobservable inputs to the overall fair value measurement. The carrying value of cash, cash equivalents and restricted cash, accounts receivable, contract assets, notes payable, and trade accounts payables approximate fair value because of the short maturity of those instruments. The fair values of the Company’s long-term debt obligations, pension and post-retirement obligations approximate their carrying values based upon current market rates of interest. Concentration of Cash – The Company deposits its cash in what management believes are high credit quality financial institutions. The balance, at times, may exceed federally insured limits. Restricted Cash – Restricted cash consists of deposits required to secure a credit facility at our Singapore location and deposits required to fund retirement related benefits for certain employees. Investment Securities – The Company invests in commercial paper, corporate notes and bonds with original maturities of less than two years. The Company classifies these investments as held to maturity based on our intent and ability to hold these investments until maturity. Investments are classified current if expected to mature within the next twelve months. These investments are recorded at amortized cost, which approximates fair value, using level 2 inputs. Investment income included in interest income (expense), net on the Consolidated Statement of Operations was $ 423 , $ 996 , and $ 332 during 2020, 2019, and 2018, respectively. Accounts Receivable – Amounts recorded in receivables, net, on the Consolidated Balance Sheet include amounts billed and currently due from customers. The amounts due are stated at their net estimated realizable value. A provision for doubtful accounts is maintained to provide for the estimated amount of receivables that will not be collected. The Company reviews customers’ credit history before extending unsecured credit and establishes an allowance for uncollectible accounts based upon factors surrounding the credit risk of specific customers, historical trends and other information. Invoices are generally due 30 days after presentation. Accounts receivable over 30 days are considered past due. The Company does not accrue interest on past due accounts receivables. Receivables are written off once all collection attempts have failed and are based on individual credit evaluation and specific circumstances of the customer. The provision for doubtful accounts balance was $ 210 and $ 325 as of December 31, 2020 and 2019, respectively. Inventories – Inventories are stated at the lower of cost or net realizable value. The Company reduces the carrying value of inventories for items that are determined to be excess, obsolete or slow-moving based on changes in customer demand, technology developments, or other economic factors. The cost of the inventories is determined by the first-in, first-out method. Contract Assets - Contract assets primarily include unbilled amounts recognized as revenue for customized products manufactured for the medical market. The customized goods have no alternative use to the Company and the Company has an enforceable right to payment for performance completed to date. The Company begins revenue recognition when these goods enter the manufacturing process and continues based on a measure of progress toward completion using a cost-to-cost input method that considers labor and overhead costs incurred and materials used to date in the manufacturing process relative to total expected production costs. Given the relatively short duration of the production process, contract assets are classified as current. Contract assets are reclassified to accounts receivable upon shipment of and invoicing for the products, at which point the right to consideration becomes unconditional. Machinery and Equipment – Machinery and equipment are carried at cost. Depreciation is computed on a straight-line basis using estimated useful lives of 3 to 12 years. Leasehold improvements are amortized using the straight-line method over the shorter of the lease term or the estimated useful life of the asset. Improvements are capitalized and expenditures for maintenance, repairs and minor renewals are charged to expense when incurred. At the time assets are retired or sold, the costs and accumulated depreciation are eliminated and the resulting gain or loss, if any, is reflected in the Consolidated Statement of Operations. Depreciation expense was $ 3,017 , $ 2,554 , and $ 1,909 for the years ended December 31, 2020, 2019, and 2018, respectively. Goodwill - Goodwill is reviewed for impairment annually as of November 30, or more frequently if changes in circumstances or the occurrence of events suggest impairment exists. The Company may apply a qualitative assessment to determine if it is more likely than not that goodwill is impaired. If the Company does not pass the qualitative assessment, or choses to skip the assessment, it performs a test comparing fair value of a reporting unit to its carrying value. The Company would need to recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. The Company concluded that no impairment of goodwill occurred during the year ended December 31, 2020. As of and for the period ended June 30, 2019, the fair value of the goodwill within our Hearing Help Express reporting unit was less than its carrying amount, which resulted in a non-cash impairment charge to goodwill of $ 1,257 . There were no further adjustments made to the carrying amount of goodwill as of December 31, 2019. The Company concluded that no impairment of goodwill occurred during the year ended December 31, 2018. Intangible Assets - The Company has definite-lived technology and customer relationship intangible assets that are evaluated for impairment periodically or when events or changes in circumstances indicate that the carrying amount of the intangible assets may not be recoverable. The Company evaluated the recoverability of its technology intangible assets due to delays in clinical trials to obtain the approval for new hearing products. The Company’s evaluation of the recoverability of technology intangible assets involves the comparison of undiscounted future cash flows expected to be generated by the products using these technologies over the remaining useful life of the technology assets to their respective carrying amounts. The Company’s recoverability analysis requires management to make significant estimates and assumptions related to future cash flows and the remaining useful life of the assets. The Company concluded that no impairment of intangible assets occurred during the year ended December 31, 2020. As of and for the period ended June 30, 2019, the fair value of the Hearing Help Express reporting unit was less than its carrying amount, which resulted in a non-cash impairment charge to intangible assets of $ 2,508 . There were no further adjustments made to the carrying amount of intangible assets as of December 31, 2019. The Company concluded that no impairment of intangible assets occurred during the year ended December 31, 2018. Long-lived Assets – Long-lived assets are recorded at cost. The Company assesses the carrying amount for impairment when events or changes in circumstances indicate that the carrying amount may not be recoverable. This assessment includes certain assumptions related to future needs for the asset to help generate future cash flow. Changes in those assessments, future economic conditions or technological changes could have a material adverse impact on the carrying value of these assets. As of December 31, 2020, the Company has determined that no impairment of long-lived assets exists. Leases – At inception of a contract a determination is made whether an arrangement meets the definition of a lease. A contract contains a lease if there is an identified asset and the Company has the right to control the asset. Operating leases are recorded as right-of-use (“ROU”) assets with corresponding current and noncurrent operating lease liabilities on our Consolidated Balance Sheets. Financing leases are included within machinery and equipment with corresponding current and noncurrent financing lease liabilities on our Consolidated Balance Sheets. ROU assets represent our right to use an underlying asset for the duration of the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Recognition on the commencement date is based on the present value of lease payments over the lease term using an incremental borrowing rate. Leases with a term of 12 months or less at the commencement date are not recognized on the balance sheet and are expensed as incurred. The Company has lease agreements with lease and non-lease components, which are accounted for as a single lease component for all asset classes. Leases are accounted for at a portfolio level when similar in nature with identical or nearly identical provisions and similar effective dates and lease terms. Investment in Partnerships – Certain of the Company’s investments in equity securities are long-term, strategic investments in companies. Depending on whether the Company has significant influence over the entity, the Company accounts for these investments under the cost or equity method of accounting. Under the cost method, the Company records the investment at the amount the Company paid and recognizes income as dividends are paid. Under the equity method, the Company records the investment at the amount the Company paid and adjusts for the Company’s share of the investee’s income or loss and dividends paid. The investments are reviewed quarterly for changes in circumstances or the occurrence of events that suggest the Company’s investment may not be recoverable. Contingent Consideration - Contingent consideration liabilities relate to estimated future payments in connection with the purchase of EMS. Contingent consideration liabilities depend on certain future events and are measured at fair value based on various level 3 inputs and assumptions including forecasts, probabilities of payment and discount rates. Amounts are classified current if expected to be paid within the next twelve months and recorded on the Consolidated Balance Sheets within other accrued liabilities. Noncurrent liabilities are classified on the Consolidated Balance Sheets within other long-term liabilities. The liabilities for contingent consideration are subject to fair value adjustments each reporting period that will be recognized through the Statement of Operations. Income Taxes – Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, operating losses and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Valuation allowances are established to the extent the future benefit from the deferred tax assets realization is more likely than not unable to be realized. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company recognizes accrued interest and penalties related to uncertain tax positions in income tax expense. At December 31, 2020 and 2019, the Company had no accrual for the payment of tax related interest and there was no tax interest or penalties recognized in the Consolidated Statements of Operations. The Company’s federal and state tax returns are potentially open to examinations for fiscal years 2003-2005, 2009-2013 and 2015-2018. Employee Benefit Obligations – The Company provides pension and health care insurance for certain domestic retirees and employees of its operations discontinued in 2005. These obligations have been included in continuing operations as the Company retained these obligations. The Company also provides retirement related benefits for certain foreign employees. The Company measures the costs of its obligation based on actuarial determinations. The net periodic costs are recognized as employees render the services necessary to earn the post-retirement benefit and the obligation is recorded on the Consolidated Balance Sheet as accrued pension liabilities. Assumptions about the discount rate and the expected rate of return on plan assets are determined by the Company. The Company believes the assumptions are within accepted guidelines and ranges. However, these actuarial assumptions could vary materially from actual results due to economic events and different rates of retirement, mortality and withdrawal. Stock Based Compensation and Equity Plans – Under the Company stock-based compensation plans, executives, employees and outside directors receive awards of options to purchase common stock and restricted stock units. Under all awards, the terms are fixed at the grant date. For stock options, the exercise price equals the market price of the Company’s stock on the date of the grant. Options under the plans generally vest over three years and have a maximum term of 10 years. The Company expenses grant-date fair values of stock options, based on the Black-Scholes model, ratably over the vesting period of the related share-based award. Restricted stock units are valued based on the closing stock price on the date of the grant and are expensed evenly over the vesting period. The restricted stock units vest in equal, annual installments over a three year period beginning on the first anniversary of the date of grant at which time common stock is issued with respect to vested units. The plans also permit the granting of stock awards, stock appreciation rights, restricted stock and other equity-based awards. Product Warranty – The Company offers a warranty on various products and services. The Company estimates the costs that |
Business Combination
Business Combination | 12 Months Ended |
Dec. 31, 2020 | |
Business Combination [Abstract] | |
Business Combination | 2. BUS INESS COMBINATION On May 18, 2020 , Intricon Pte. Ltd. (“Buyer”), a wholly-owned subsidiary of the Company, acquired all of the outstanding shares of Emerald Medical Services Pte., Ltd., a Singapore company (“EMS”), pursuant to a Share Purchase Agreement dated the same date among Buyer, EMS and the direct and indirect owners of EMS. EMS, based in Singapore, is a provider of joint development medical device manufacturing services for complex catheter applications. In addition, EMS has a 54 % ownership interest in Emerald Extrusion Services LLC. (“EES), based in California. The 54 % ownership interest of EES was transferred from EMS to Intricon Inc. during the third quarter of 2020 with no impact to our consolidated financial statements. Based on this controlling financial interest, the Company has consolidated this entity. The total purchase price of $ 11,815 consisted of a cash payment paid at closing of $ 7,128 , including a post-closing working capital adjustment of $ 291 , the issuance of 80 thousand shares of the Company’s common stock valued at $ 982 issued at closing, which shares will be held in an escrow account for a period of 18 months to resolve any post-closing claims by the Buyer, as well as a liability for contingent consideration of $ 3,414 . The liability for contingent consideration consists of a cash payment of $ 500 payable in the event that regulatory approval in Japan is obtained for a particular product within twelve months of closing, an earn-out payment of between $ 333 and $ 1,000 if EMS has net revenues ranging from $ 9.0 million to $ 11.0 million during the first year after closing, and additional earn-out payments equal to 28 % of all EMS net revenues arising from the sale of certain products or to certain customers for each of the first three years after closing. The liability for contingent consideration is a fair value measurement based on various level 3 inputs using a scenario-based method. The key assumptions included forecasts of future revenues and the selection of the discount rate for the contingent consideration liability. The liability for contingent consideration is subject to fair value adjustments each reporting period that will be recognized through the statement of operations. For the period ended December 31, 2020, we recorded $ 660 of change in fair value of contingent consideration within other operating expenses primarily due to the Company obtaining regulatory approval in Japan for a particular product as well as increases in the fair value of future estimated payments due to increased revenue forecasts and the passage of time. The regulatory approval resulted in a cash payment of $ 500 to the sellers under the EMS purchase agreement during the fourth quarter of 2020. The following table provides quantitative information about Level 3 inputs for fair value measurement of the contingent consideration liability as of the acquisition date and December 31, 2020. Significant increases or decreases in these inputs in isolation could result in a significant impact on our fair value measurement: Simulation input At acquisition May 18, 2020 As of December 31, 2020 Revenue volatility 20.0 % 20.0 % Weighted average cost of capital 25.0 % 25.0 % Discount rate 3.5 % 3.5 % The reconciliation of the contingent consideration liability measured and carried at fair value on a recurring basis is as follows: Carrying amount at December 31, 2019 $ - Addition for acquisition of Emerald Medical Services 3,414 Change in fair value 660 Less payments ( 500 ) Carrying amount at December 31, 2020 $ 3,574 In connection with the acquisition, the Company recorded acquisition costs of $ 493 for the year ended December 31, 2020 related to legal, professional fees and other miscellaneous costs. These costs are recorded within other operating expenses within the Consolidated Statements of Operations. Our Consolidated Statements of Operations for the year ended December 31, 2020 include revenues of $ 7,361 and a net loss of ($ 30 ) attributable to EMS and EES for the period from May 19 through December 31, 2020. Included in our consolidated net loss is $ 660 of additional expense related to fair value changes of contingent consideration. We recorded identifiable assets acquired and liabilities assumed recorded at their estimated fair value on the acquisition date. We have up to one year from the acquisition date to finalize the purchase price allocation. As such, these estimates may change which would likely result in an increase or decrease in goodwill. A preliminary purchase price allocation of the fair value of the assets acquired and liabilities assumed is included in the table below. A preliminary intangible asset of $ 6,400 was recorded as a part of purchase accounting related to the value of identifiable customer relationships acquired. This intangible is being amortized over an 8 year useful life. The fair value assigned to the identifiable intangible asset was determined primarily by using the excess earnings method. The key assumptions included in the excess earnings method include forecasts of future revenues and cash flows of certain products, and the selection of the discount rates. A preliminary net deferred tax liability of $ 1,055 was established on the acquisition date related to book-tax differences from the amortization of the intangibles as well as certain other purchasing accounting adjustments. Preliminary goodwill of $ 4,041 was recorded, representing the benefits of increased operating scale and growth opportunities through currently unidentifiable customers. The goodwill balance is not amortizable for tax purposes. As of December 31, 2020, we recorded $ 122 in purchase accounting adjustments related to accrued salaries, increasing goodwill and accrued salaries, wages and commissions, respectively, within our Consolidated Balance Sheets. The purchase price was allocated as follows: Current assets $ 3,104 Machinery and equipment 172 Intangible assets 6,400 Goodwill 4,163 Noncurrent assets 169 Current liabilities ( 1,105 ) Noncurrent liabilities ( 1,088 ) Total consideration paid $ 11,815 |
Restructuring Charges
Restructuring Charges | 12 Months Ended |
Dec. 31, 2020 | |
Restructuring Charges [Abstract] | |
Restructuring Charges | 3. RESTRUCTURING CHA RGES On May 20, 2020, the Company announced a strategic restructuring plan designed to accelerate the Company’s future growth by focusing resources on the highest potential growth areas. The plan, which was approved by the Company’s Board of Directors (“Board”), was completed as of June 30, 2020, and consisted primarily of transitioning our direct-to-end-consumer operations at Hearing Help Express to solely support partnership initiatives including the reduction of advertising expenses as well as global net workforce reductions. Total restructuring charges for the year ended December 31, 2020 were $ 1,171 , including $ 732 related to one-time employee termination benefits, $ 326 for lease modification costs at Hearing Help Express and $ 113 for losses on disposal of assets. As of December 31, 2020, outstanding restructuring liabilities included unpaid employee termination benefits of $ 113 . |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2020 | |
Discontinued Operations [Abstract] | |
Discontinued Operations | 4. DISCONTINUE D OPERATIONS On June 25, 2019, the Company’s officers, pursuant to delegated authority from the Board, approved plans to discontinue the operations of its UK subsidiary. As of December 31, 2019, we continued to settle the remaining assets and liabilities of the subsidiary. During the first quarter of 2020, the remaining assets and liabilities of the subsidiary were settled. At June 30, 2019, the net realizable value of certain assets was less than their carrying value resulting in a loss on disposal. The Company considered the disposal a strategic shift in accordance with ASC 205 and the results of the UK operations have been classified as loss on discontinued operations, net of income taxes, in the accompanying Consolidated Statements of Operations, Comprehensive Income (Loss) and Cash Flows. Current assets, noncurrent assets, and liabilities of the discontinued operations have been reclassified and reflected on the accompanying Consolidated Balance Sheets as “Current assets of discontinued operations,” “Noncurrent assets of discontinued operations,” and “Liabilities of discontinued operations”, respectively. Prior periods relating to our discontinued operations have also been reclassified to reflect consistency within our consolidated financial statements. During the year ended December 31, 2019, we derecognized approximately $ 761 of non-cash operating lease ROU assets and lease liabilities from our discontinued operations. The total assets and liabilities of the UK subsidiary at December 31, 2019 were as follows: Other current assets $ 80 Other accrued liabilities 77 Net assets $ 3 The loss on disposal of discontinued operations, as a result of the plan to discontinue the operations of the UK, for the year ended December 31, 2019 was computed as follows: Accounts receivable, net $ 77 Write-down of inventory to realizable value 278 Write-down of property, plant and equipment to salvage value 298 Other assets and liabilities, net 71 Realized loss on foreign currency 280 Net assets disposed 1,004 Additional disposal costs, net 112 Loss on disposal of discontinued operations $ 1,116 The following table shows the results of the UK subsidiary’s discontinued operations: Year Ended December 31, 2019 2018 Revenue, net $ 1,068 $ 2,514 Cost of goods sold 667 1,582 Gross profit 401 932 Sales and marketing 314 902 General and administrative 684 1,291 Total operating expenses 998 2,193 Other income, net - 46 Loss from discontinued operations, net of taxes $ ( 597 ) $ ( 1,215 ) |
Geographic And Customer Informa
Geographic And Customer Information | 12 Months Ended |
Dec. 31, 2020 | |
Geographic And Customer Information [Abstract] | |
Geographic And Customer Information | 5. GEOGRAPHIC AND CU STOMER INFORMATION The geographical distribution of long-lived assets, consisting of machinery and equipment, and net revenue to geographical areas is set forth below: Long-lived Assets, Net December 31, December 31, 2020 2019 United States $ 12,539 $ 12,215 Singapore 1,460 1,263 Other 178 73 Consolidated $ 14,177 $ 13,551 Long-lived assets consist of machinery and equipment. Excluded from long-lived assets are investments in partnerships, patents, goodwill, intangible assets, operating lease right-of-use (ROU) assets and certain other assets. The Company capitalizes long-lived assets pertaining to the production of specialized parts. These assets are periodically reviewed to ensure the net realizable value from the estimated future production based on forecasted cash flows exceeds the carrying value of the assets. Year Ended December 31, Net Revenue to Geographical Areas 2020 2019 2018 United States $ 75,325 $ 94,530 $ 96,822 Europe 5,501 5,611 5,846 Asia 11,476 9,374 10,009 All other countries 10,470 3,978 1,271 Consolidated $ 102,773 $ 113,493 $ 113,948 Geographic net revenue is allocated based on the shipment location of the Company’s direct OEM customer. Customer Information One customer accounted for 63 , 60 , and 57 percent of the Company’s consolidated net revenue in 2020, 2019, and 2018, respectively. Two customers accounted for a combined 69 and 51 percent of the Company’s consolidated accounts receivable at December 31, 2020 and 2019, respectively. Two customers account for the Company’s consolidated contract assets at December 31, 2020. One customer accounted for 86 percent of the Company’s consolidated contract assets at December 31, 2019. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2020 | |
Intangible Assets [Abstract] | |
Goodwill | 6. GOOD WILL On May 18, 2020, the acquisition of EMS resulted in additional goodwill of $ 4,163 . As of and for the period ended June 30, 2019, the fair value of the goodwill within our Hearing Help Express reporting unit was less than its carrying amount, which resulted in a non-cash impairment charge to goodwill of $ 1,257 . There were no further adjustments made to the carrying amount of goodwill as of December 31, 2019. The changes in the carrying amount of goodwill for the years presented are as follows: Carrying amount at December 31, 2018 $ 10,808 Impairment of goodwill of Hearing Health Express ( 1,257 ) Carrying amount at December 31, 2019 9,551 Acquisition of Emerald Medical Services 4,163 Carrying amount at December 31, 2020 $ 13,714 |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2020 | |
Intangible Assets [Abstract] | |
Intangible Assets | 7. INTANG IBLE ASSETS On May 18, 2020, the acquisition of EMS resulted in additional customer relationship intangible assets of $ 6,400 . The Company has definite-lived technology and customer relationship intangible assets that are evaluated for impairment periodically or when events or changes in circumstances indicate that the carrying amount of the intangible assets may not be recoverable. In 2020, the Company evaluated the recoverability of its technology intangible assets due to delays in clinical trials to obtain the approval for new hearing products. No triggering event that would require testing for impairment was identified for customer relationship intangible assets in 2020. The Company concluded that no impairment of intangible assets occurred during the year ended December 31, 2020. Our Hearing Help Express reporting unit reported a non-cash impairment charge to intangible assets of $ 2,508 for the period ended June 30, 2019 . The changes in the carrying amount of intangible assets for the years presented are as follows: Carrying amount at December 31, 2018 $ 4,844 Acquisition of self-fitting software 3,679 Amortization of intangible assets ( 470 ) Impairment of intangible assets of Hearing Help Express ( 2,508 ) Carrying amount at December 31, 2019 $ 5,545 Acquisition of Emerald Medical Services 6,400 Additional self-fitting software costs 296 Amortization of intangible assets ( 1,456 ) Carrying amount at December 31, 2020 $ 10,785 Intangible assets consisted of the following at: December 31, 2020 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer list $ 6,400 $ ( 467 ) $ 5,933 Self-fitting software 3,975 ( 596 ) 3,379 Technology access 2,750 ( 1,277 ) 1,473 Total $ 13,125 $ ( 2,340 ) $ 10,785 December 31, 2019 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Self-fitting software $ 3,679 $ - $ 3,679 Technology access 2,750 ( 884 ) 1,866 Total $ 6,429 $ ( 884 ) $ 5,545 Original useful lives for the customer list, self-fitting software and technology access intangible assets are 8 , 5 and 7 years, respectively. 8. |
Investment In Partnerships
Investment In Partnerships | 12 Months Ended |
Dec. 31, 2020 | |
Investment In Partnerships [Abstract] | |
Investment In Partnerships | 8. INVESTMENT IN PA RTNERSHIPS Investment in partnerships consisted of the following: December 31, December 31, 2020 2019 Investment in Signison $ 418 $ 852 Other 152 308 Total $ 570 $ 1,160 The Company has a 50 % ownership interest in Signison as of December 31, 2020 and 2019. Signison is accounted for in the Company’s consolidated financial statements using the equity method. |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2020 | |
Investment Securities [Abstract] | |
Investment Securities | 9. INVESTMENT SEC URITIES The Company invests in commercial paper, corporate notes and bonds with original maturities of less than two years. The Company classifies these investments as held to maturity based on its intent and ability to hold these investments until maturity. Investments are classified current if expected to mature within the next twelve months. These investments are recorded at amortized cost, which approximates fair value, using level 2 inputs . Amortization related to discounts on investment securities was $ 51 and $ 221 in 2020 and 2019, respectively. The maturity dates of our investments as of December 31, 2020 are as follows: Less than one year 1-5 years Total Commercial Paper Original Maturities of 91 Days or More $ 7,490 $ - $ 7,490 Corporate Notes and Bonds 12,303 5,085 17,388 Total Investments $ 19,793 $ 5,085 $ 24,878 The maturity dates of our investments as of December 31, 2019 are as follows: Less than one year 1-5 years Total Commercial Paper Original Maturities of 91 Days or More $ 8,461 $ - $ 8,461 Corporate Notes and Bonds 14,990 8,629 23,619 Total Investments $ 23,451 $ 8,629 $ 32,080 The Company also maintains excess funds within level 1 money market accounts included within cash and cash equivalents. Cash available in our money market accounts at December 31, 2020 and December 31, 2019 was $ 6,697 and $ 7,200 , respectively. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2020 | |
Inventories [Abstract] | |
Inventories | 10. INVENTO RIES Inventories consisted of the following: Raw materials Work-in process Finished products and components Total December 31, 2020 Domestic $ 11,371 $ 1,499 $ 2,149 $ 15,019 Foreign 3,393 968 133 4,494 Total $ 14,764 $ 2,467 $ 2,282 $ 19,513 December 31, 2019 Domestic $ 10,379 $ 736 $ 2,375 $ 13,490 Foreign 2,482 215 190 2,887 Total $ 12,861 $ 951 $ 2,565 $ 16,377 |
Other Accrued Liabilities
Other Accrued Liabilities | 12 Months Ended |
Dec. 31, 2020 | |
Other Accrued Liabilities [Abstract] | |
Other Accrued Liabilities | 11. OTHER ACCRUED LIABIL ITIES Other accrued liabilities consisted of the following at: December 31, 2020 December 31, 2019 Pension $ 120 $ 120 Postretirement benefit obligation 68 71 Deferred revenue 184 327 Current self-fitting software liability 264 285 Current technology access liability 742 1,236 Current earn-out contingent consideration liability 1,090 - Customer funded projects 759 - Other 1,008 830 Total $ 4,235 $ 2,869 In January 2019, the Company purchased the source code for self-fitting software from Soundperience for 1,829 Euros and transferred our 49 % ownership interest in Soundperience and related license agreement to the majority owner. The future payments are due in Euros and the related liabilities are revalued based on exchange rates as of each reporting period. As of December 31, 2020, outstanding liabilities consisted of $ 264 other accrued current liabilities and $ 792 other long-term liabilities. The technology access liability, reflected above, relates to amounts owed to gain access to technology and amounts are due in equal quarterly installments through January 2022. The earn-out liability is contingent on certain future events and is measured at fair value based on various level 3 inputs and assumptions including forecasts, probabilities of payment and discount rates. Amounts are classified as current if expected to be paid within the next twelve months. The liability for contingent consideration is subject to fair value adjustments each reporting period that will be recognized through the Statement of Operations. See Note 2. |
Other Long-Term Liabilities
Other Long-Term Liabilities | 12 Months Ended |
Dec. 31, 2020 | |
Other Long-Term Liabilities [Abstract] | |
Other Long-Term Liabilities | 12. OTHER LONG-TERM LIABILITIES Other long-term liabilities consisted of the following at: December 31, December 31, 2020 2019 Noncurrent self-fitting software liability $ 792 $ 922 Noncurrent technology access liability 247 989 Noncurrent earn-out contingent consideration liability 2,484 - Other 875 260 Total $ 4,398 $ 2,171 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases | 13. LEA SES The Company’s leases pertain primarily to engineering, manufacturing, sales and administrative facilities, with an initial term of one year or more. The Company has three leased facilities in Minnesota, two that expire in 2022 and one that expires in 2023, one leased facility in Illinois that expires in 2022, one leased facility in California that expires in 2022, one leased facility in Singapore that expires in 2025, one leased facility in Indonesia that expires in 2024, and one leased facility in Germany that expires in 2022. As discussed in Note 3, the Company incurred $ 326 for lease modification costs at Hearing Help Express to reduce square footage by approximately 65 % in an effort to reduce future operating costs. The modification had no impact on the lease term. Certain foreign leases allow for variable lease payments that depend on an index or a market rate adjustment for the respective country and are adjusted on an annual basis. The adjustment is recognized as incurred in the Consolidated Statement of Operations. The facility leases include options to extend for terms ranging from one year to five years . Lease options that the Company is reasonably certain to execute are included in the determination of the ROU asset and lease liability. Our Indonesia lease includes embedded forward starting leases that will begin in 2022 and 2024 for additional square footage, which will result in the recognition of an additional ROU asset and lease liability in those periods of approximately $ 103 and $ 72 , respectively. The Company also leases equipment that include bargain purchase options at termination. These leases have been classified as finance leases. As of December 31, 2020, the Company has a weighted-average lease term of 0.8 years for its finance leases, and 3.8 years for its operating leases. As of December 31, 2020, the Company has a weighted-average discount rate of 5.56 % for its finance leases, and 5.06 % for its operating leases. As of December 31, 2019, the Company has a weighted-average lease term of 1.4 years for its finance leases, and 3.1 years for its operating leases. As of December 31, 2019, the Company has a weighted-average discount rate of 5.56 % for its finance leases, and 5.25 % for its operating leases. Discount rates are determined based on 5 -year term incremental borrowing rates at inception of the lease. Operating cash flows for the year ended December 31, 2020, and 2019 from operating leases were $ 1,950 and $ 1,898 , respectively. Financing lease assets are classified as machinery and equipment within the Consolidated Balance Sheet. The following table summarizes lease costs by type: Year Ended December 31, 2020 2019 Lease cost Finance lease cost: Amortization of right-of-use assets $ 88 $ 103 Interest on lease liabilities 3 10 Operating lease cost 1,926 1,862 Variable lease cost* 611 564 Total lease cost $ 2,628 $ 2,539 * Variable lease costs consists primarily of taxes, insurance, and common area or other maintenance costs for our domestic and foreign building leases. Maturities of lease liabilities are as follows: Operating Leases Financing Leases 2021 $ 2,449 $ 24 2022 1,959 3 2023 1,358 - 2024 1,035 - 2025 and thereafter 785 - Total lease payments 7,587 27 Less: Interest ( 705 ) ( 6 ) Present value of lease liabilities $ 6,882 $ 21 |
Domestic And Foreign Income Tax
Domestic And Foreign Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Domestic And Foreign Income Taxes [Abstract] | |
Domestic And Foreign Income Taxes | 14. DOMESTIC AND FOREIGN INCO ME TAXES Domestic and foreign income taxes (benefits) were comprised as follows: Year Ended December 31, 2020 2019 2018 Current Federal $ ( 74 ) $ 24 $ - State 10 - - Foreign 157 173 227 Total Current $ 93 $ 197 $ 227 Deferred Federal 74 - 12 State - - - Foreign ( 106 ) 4 245 Total Deferred $ ( 32 ) $ 4 $ 257 Income Tax Expense $ 61 $ 201 $ 484 (Loss) income from continuing operations before income taxes and discontinued operations Foreign ( 255 ) 360 1,258 Domestic ( 2,173 ) ( 2,223 ) 5,988 Total $ ( 2,428 ) $ ( 1,863 ) $ 7,246 The following is a reconciliation of the statutory federal income tax rate to the effective tax rate based on income (loss): Year Ended December 31, 2020 2019 2018 (a) Tax provision at statutory rate 21.0 % 21.0 % 21.0 % Change in valuation allowance ( 27.6 ) ( 23.6 ) 43.4 Impact of permanent items, including stock based compensation expense and impairment loss 11.0 ( 0.3 ) ( 52.7 ) Effect of foreign tax rates ( 0.8 ) 0.3 0.5 State taxes net of federal benefit ( 3.9 ) ( 1.0 ) 0.1 Prior year provision to return true-up ( 3.2 ) ( 5.8 ) ( 5.6 ) Non-controlling interest 1.0 ( 0.7 ) 0.2 Other ( 0.0 ) ( 0.8 ) ( 0.2 ) Domestic and foreign income tax rate ( 2.5 ) % ( 10.8 ) % 6.7 % (a) Historical effective tax rates have been adjusted due to discontinued operations. Please refer to Note 4 for further information. The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2020, and 2019 are presented below: Year Ended December 31, 2020 2019 Deferred tax assets: Net operating loss carry forwards $ 8,486 $ 7,749 Inventory 548 509 Compensation accruals 1,161 960 Accruals and reserves 92 109 Credits 235 308 Contract assets 1,573 1,489 Other 134 175 Total Deferred tax assets 12,229 11,299 Less: valuation allowance ( 11,395 ) ( 10,605 ) Deferred tax assets net of valuation allowance $ 834 $ 694 Deferred tax liabilities Depreciation and amortization ( 844 ) ( 689 ) Identified intangibles ( 1,008 ) - Total deferred tax liabilities ( 1,852 ) ( 689 ) Net deferred tax $ ( 1,018 ) $ 5 The valuation allowance is maintained against deferred tax assets which the Company has determined are more likely than not to be unrealized. The change in valuation allowance was ($ 790 ), ($ 440 ), and ($ 3,384 ) for the years ended December 31, 2020, 2019, and 2018, respectively. For tax reporting purposes, the Company has actual federal and state net operating loss carryforwards of $ 34,536 and $ 16,646 , respectively, as of December 31, 2020. These net operating loss carryforwards begin to expire in 2023 for federal tax purposes and began to expire in 2020 for state tax purposes. Subsequently recognized tax benefits, if any, related to the valuation allowance for deferred tax assets or realization of net operating loss carryforwards will be reported in the Consolidated Statements of Operations. If substantial changes in the Company’s ownership occur, there could be an annual limitation on the amount of the carryforwards that are available to be utilized. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company regularly assesses the likelihood that the deferred tax assets will be recovered from future taxable income. The Company considers projected future taxable income and ongoing tax planning strategies, then records a valuation allowance to reduce the carrying value of the net deferred taxes to an amount that is more likely than not able to be realized. Based upon the Company’s assessment of all available evidence, including the previous three years of United States based taxable income and loss after permanent items, estimates of future profitability, and the Company’s overall prospects of future business, the Company determined that it is more likely than not that the Company will not be able to realize a portion of the deferred tax assets in the future. The Company will continue to assess the potential realization of deferred tax assets on an annual basis, or an interim basis if circumstances warrant. If the Company’s actual results and updated projections vary significantly from the projections used as a basis for this determination, the Company may need to change the valuation allowance against the gross deferred tax assets. The Company recognizes the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement with the relevant taxing authority. The Company has analyzed all tax positions for which the statute of limitations remains open. As a result of the assessment, the Company has no t recorded any liabilities for unrecognized income tax benefits or retained earnings. The Company does no t have any unrecognized tax benefits as of December 31, 2020, 2019, and 2018. The Company is subject to income taxes in the U.S. federal jurisdiction, and various states and foreign jurisdictions. Tax regulations within each jurisdiction are subject to the interpretation of the related tax laws and regulations and require significant judgment to apply. The Company is still subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities for the years 2003 to 2005, 2009 to 2013 and for the years 2015 to 2018. There are no on-going or pending IRS, state, or foreign examinations. The Company recognizes penalties and interest accrued related to liability on unrecognized tax benefits in income tax expense for all periods presented. As of December 31, 2020, and 2019, the Company has no amounts accrued for the payment of interest and penalties. The Tax Cuts and Jobs Act enacted in December of 2017 introduced a new Global Intangible Low-Taxed Income (“GILTI”) provision that requires certain income earned by foreign subsidiaries to be included currently in the gross income of the U.S. shareholder. The Company has chosen to treat GILTI as a current-period cost when incurred. CARES Act On March 27, 2020, the President signed the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), which contained in part, an allowance for deferral of the employer portion of Social Security employment tax liabilities until 2021 and 2022, as well as a COVID-19 employee retention tax credit (“CRC”) of up to $ 5,000 (not in thousands) per eligible employee. Based on the timing of the CARES Act, for the year ended December 31, 2020, the related tax benefits from the CARES Act were not material. The Company does not expect the potential future benefits related to employee retention tax credits and the payroll tax deferral provision to have a material impact on our financial position, results of operations and cash flows. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2020 | |
Employee Benefit Plans [Abstract] | |
Employee Benefit Plans | 15. EMPLOYEE BENEF IT PLANS The Company has a defined contribution plan for most of its domestic employees. Under these plans, eligible employees may contribute amounts through payroll deductions supplemented by employer contributions for investment in various investments specified in the plans. The Company contributions to these plans were $ 531 , $ 700 , and $ 569 for the years ended December 31, 2020, 2019, and 2018, respectively. The Company provides post-retirement medical benefits to certain former domestic employees who met minimum age and service requirements. In 1999, a plan amendment was instituted which limits the liability for post-retirement benefits beginning January 1, 2000 for certain employees who retire after that date. This plan amendment resulted in a $ 1,100 unrecognized prior service cost reduction which is recognized as employees render the services necessary to earn the post-retirement benefit. The Company’s policy is to pay the cost of these post-retirement benefits when required on a cash basis. The Company also has provided certain foreign employees with retirement related benefits. The following table presents the amounts recognized in the Company’s Consolidated Balance Sheets at December 31, 2020 and 2019 for post-retirement medical benefits: 2020 2019 Change in Projected Benefit Obligation: Projected benefit obligation at January 1 $ 453 $ 450 Interest cost 15 16 Actuarial loss 55 63 Participant contributions 10 10 Benefits paid ( 80 ) ( 86 ) Projected benefit obligation at December 31 $ 453 $ 453 Change in fair value of plan assets: Employer contributions 70 76 Participant contributions 10 10 Benefits paid ( 80 ) ( 86 ) Funded status $ ( 453 ) $ ( 453 ) Current liabilities 71 71 Noncurrent liabilities 382 382 Net amount recognized $ 453 $ 453 Amount recognized in other comprehensive income (loss) 76 37 Amount recognized in the consolidated statement of operations 377 416 Total $ 453 $ 453 Accrued post-retirement medical benefit costs are classified as other post-retirement benefit obligations as of December 31, 2020 and 2019 on the Consolidated Balance Sheets. Net periodic post-retirement medical benefit costs for 2020, 2019, and 2018 included the following components: For measurement purposes, a 5.5 % annual rate of increase in the per capita cost of covered benefits (i.e., health care cost trend rate) was assumed for 2020; the rate was assumed to decrease gradually to 4.6 % by the year 2066 and remain at that level thereafter. The difference in the health care cost trend rate assumption may have a significant effect on the amounts reported. The assumptions used for the years ended December 31 were as follows: 2020 2019 2018 Annual increase in cost of benefits 5.5 % 5.6 % 5.7 % Discount rate used to determine year-end obligations 1.5 % 3.5 % 3.9 % Discount rate used to determine year-end expense 3.5 % 3.9 % 3.3 % In addition to the post-retirement medical benefits, the Company provides retirement related benefits to certain former executive employees and to certain employees of foreign subsidiaries. The liabilities established for these benefits at December 31, 2020 and 2019 are illustrated below. 2020 2019 Current portion $ 120 $ 120 Long-term portion 907 655 Total liability at December 31 $ 1,027 $ 775 The Company recorded $ 238 within the Consolidated Statements of Comprehensive (Loss) Income in 2020 related to actuarial losses. The Company calculated the fair values of the pension plans above utilizing a discounted cash flow, using standard life expectancy tables, annual pension payments, and a discount rate of 1.5 % in 2020 and 4.0 % in 2019. Employer benefit payments (medical and pension), which reflect expected future service, are expected to be paid in the following years: 2021 $ 188 2022 171 2023 155 2024 139 2025 124 Years 2026 and thereafter 703 |
Currency Translation And Transa
Currency Translation And Transaction Adjustments | 12 Months Ended |
Dec. 31, 2020 | |
Currency Translation And Transaction Adjustments [Abstract] | |
Currency Translation And Transaction Adjustments | 16. CURRENCY TRANSLATIO N AND TRANSACTION ADJUSTMENTS All assets and liabilities of foreign operations in which the functional currency is not the U.S. dollar are translated into U.S. dollars at prevailing rates of exchange in effect at the balance sheet date. Revenues and expenses are translated using average rates of exchange for the year. Adjustments resulting from the process of translating the financial statements of foreign subsidiaries into U.S. dollars are reported as a separate component of equity, net of tax, where appropriate. Realized foreign currency transaction amounts included in the Consolidated Statements of Operations include losses of $ 131 , $ 48 , and $ 64 in 2020, 2019, and 2018, respectively. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2020 | |
Accumulated Other Comprehensive Income [Abstract] | |
Accumulated Other Comprehensive Income | 17. ACCUMULATE D OTHER COMPREHENSIVE INCOME The Company records deferred gains (losses) in accumulated other comprehensive income (AOCI ) related to foreign currency translation and actuarial gains (losses) related to pension and postretirement obligations. The Company recognized $ 20 and $ 417 out of AOCI and into net income for the years ended December 31, 2020 and 2019, respectively. Balances by classification included within AOCI on the Consolidated Balance Sheets as of December 31, were as follows: 2020 2019 Foreign currency translation $ ( 344 ) $ ( 403 ) Pension and postretirement obligations ( 335 ) ( 117 ) Total $ ( 679 ) $ ( 520 ) |
Common Stock And Stock Awards
Common Stock And Stock Awards | 12 Months Ended |
Dec. 31, 2020 | |
Common Stock And Stock Awards [Abstract] | |
Common Stock And Stock Awards | 18. COMMON STOCK AND STOCK AWARDS The Company has a 2006 Equity Incentive Plan and an Amended and Restated 2015 Equity Incentive Plan. The 2015 plan , which was approved by the shareholders on April 24, 2015, replaced the 2006 plan . New grants may not be made under the 2006 plan; however certain option grants under these plans remain exercisable as of December 31, 2020. The aggregate number of shares of common stock for which awards could be granted under the 2015 plan as of the date of adoption was 500 shares. Additionally, as outstanding options under the 2006 plan or 2015 plan expire, terminate, are cancelled or forfeited or are withheld in a net exercise, the shares of the Company’s common stock subject to such options will become available for issuance under the 2015 plan. The 2015 plan was amended and restated in 2020 to reflect certain corporate governance changes and to increase the number of shares of common stock that could be awarded under the 2015 plan by 500 shares, subject to shareholder approval. Under the plans, executives, employees and outside directors receive awards of restricted stock units (RSUs) and/or options to purchase common stock. The Company may also grant stock awards, stock appreciation rights, restricted stock and other equity-based awards, although no such awards, other than awards under the director program and management purchase program described below, had been granted as of December 31, 2020. Under all awards, the terms are fixed on the grant date. Generally, the exercise price of stock options equals the market price of the Company’s stock on the date of the grant. RSUs under the plans generally vest over three years . Options under the plans generally vest over three years , and have a maximum term of 10 years. The Company granted 146 RSUs for the year ended December 31, 2020. The RSUs vest in equal, annual installments over a three-year period beginning on the first anniversary of the date of grant at which time common stock is issued with respect to vested units. Stock award activity during the periods indicated was as follows: Outstanding Awards Stock Options RSUs Total Stock Option Weighted-Average Exercise Price (a) Aggregate Intrinsic Value Outstanding at December 31, 2017 1,438 - 1,438 $ 6.00 Awards forfeited or cancelled ( 8 ) - ( 8 ) 7.20 Awards granted - 98 98 - Awards exercised or released ( 600 ) - ( 600 ) 5.65 Outstanding at December 31, 2018 830 98 928 6.25 Awards forfeited or cancelled ( 3 ) ( 1 ) ( 4 ) 6.42 Awards granted - 79 79 - Awards exercised or released ( 81 ) ( 48 ) ( 129 ) 4.91 Outstanding at December 31, 2019 746 128 874 $ 6.39 Awards forfeited or cancelled ( 1 ) ( 5 ) ( 6 ) 5.72 Awards granted - 146 146 - Awards exercised or released ( 55 ) ( 52 ) ( 107 ) 4.88 Outstanding at December 31, 2020 690 217 907 $ 6.51 $ 11,929 Exercisable at December 31, 2019 668 668 $ 6.30 $ 7,819 Exercisable at December 31, 2020 690 690 $ 6.51 $ 7,997 Available for future grant at December 31,2020 73 The number of shares available for future grant at December 31, 2020, does not include a total of up to 325 shares subject to options outstanding under the 2006 plan which will become available for grant under the 2015 plan as outstanding options under the 2006 plan expire, terminate, are cancelled or forfeited or are withheld in a net exercise of such options. The weighted-average remaining contractual term of options exercisable and options outstanding at December 31, 2020 was 4 years. The total intrinsic value of options exercised during fiscal 2020, 2019, and 2018, was $ 514 , $ 1,627 , and $ 25,724 , respectively. No options were issued in 2020, 2019 and 2018. The weighted-average per share grant date fair value of restricted stock units granted was $ 14.92 in 2020 and $ 23.83 in 2019. The Company recorded $ 2,382 , $ 1,886 , and $ 1,395 of non-cash stock compensation expense for the years ended December 31, 2020, 2019, and 2018, respectively. As of December 31, 2020, there was $ 1,650 of total non-cash stock compensation expense related to non-vested awards that is expected to be recognized over a weighted-average period of 1.95 years. During the year ended December 31, 2020, the Company recorded a cumulative non-cash stock compensation expense adjustment of $ 422 for individuals who are retirement eligible and therefore have vested in stock awards according to our plan. The adjustment was not material to our Consolidated Financial Statements. The Company also has an Employee Stock Purchase Plan (the “Purchase Plan”). The Purchase Plan, as amended, provides that a maximum of 300 shares may be sold under the Purchase Plan. There were 16 , 9 , and 7 shares purchased under the Purchase Plan during the years ended December 31, 2020, 2019, and 2018, respectively. On August 20, 2018, the Company completed a public offering and sale of 1,725 shares of common stock at a price to the public of $ 55.00 per share less an underwriting discount of $ 3.30 per share. The net proceeds from this offering, after deducting underwriting discounts and offering expenses, totaled approximately $ 88,967 and were used to repay debt, fund capital expenditures, to repurchase 500 shares of common stock owned by directors and officers and for working capital and other general corporate purposes. |
(Loss) Income Per Share
(Loss) Income Per Share | 12 Months Ended |
Dec. 31, 2020 | |
(Loss) Income Per Share [Abstract] | |
(Loss) Income Per Share | 19. (LOSS) INCOME P ER SHARE The following table sets forth the computation of basic and diluted (loss) income per share: Year Ended December 31, 2020 2019 2018 Numerator: (Loss) income from continuing operations before discontinued operations $ ( 2,489 ) $ ( 2,064 ) $ 6,762 Loss from discontinued operations (Note 4) - ( 1,713 ) ( 1,215 ) Less: Income allocated to non-controlling interest ( 35 ) - - Net (loss) income attributable to Intricon shareholders $ ( 2,524 ) $ ( 3,777 ) $ 5,547 Denominator: Basic – weighted shares outstanding 8,894 8,748 7,599 Dilutive effect from stock awards - - 1,031 Diluted – weighted shares outstanding 8,894 8,748 8,630 Basic (loss) income per share attributable to Intricon shareholders: Continuing operations $ ( 0.28 ) $ ( 0.23 ) $ 0.89 Discontinued operations - ( 0.20 ) ( 0.16 ) Net (loss) income per share: $ ( 0.28 ) $ ( 0.43 ) $ 0.73 Diluted (loss) income per share attributable to Intricon shareholders: Continuing operations $ ( 0.28 ) $ ( 0.23 ) $ 0.78 Discontinued operations - ( 0.20 ) ( 0.14 ) Net (loss) income per share: $ ( 0.28 ) $ ( 0.43 ) $ 0.64 The dilutive impact summarized above relates to the periods when the average market price of Company stock exceeded the exercise price of the potentially dilutive awards. Earnings per common share was based on the weighted average number of common shares outstanding during the periods when computing the basic earnings per share. When dilutive, stock options are included as equivalents using the treasury stock method when computing the diluted earnings per share. Shares represented by RSUs are also included in the dilution calculation, net of assumed proceeds and equivalent share repurchases. The Company excluded all stock awards outstanding in 2020 and 2019 from the computation of the diluted income per share because their effect would be anti-dilutive due to the Company’s net loss for the year. The Company excluded 5 in the money stock options in 2018 from the computation of the diluted income per share because their effect would be anti-dilutive. For additional disclosures regarding the stock options, see Note 18. |
Contingencies And Commitments
Contingencies And Commitments | 12 Months Ended |
Dec. 31, 2020 | |
Contingencies And Commitments [Abstract] | |
Contingencies And Commitments | 20. CONTINGENCIES AND COMMITMENTS Asbestos Litigation The Company is a defendant along with a number of other parties in lawsuits alleging that plaintiffs have or may have contracted asbestos-related diseases as a result of exposure to asbestos products or equipment containing asbestos sold by one or more named defendants. These lawsuits relate to the discontinued heat technologies segment which was sold in March 2005. Due to the non-informative nature of the complaints, the Company does not know whether any of the complaints state valid claims against the Company. Certain insurance carriers have informed the Company that the primary policies for the period August 1, 1970-1978 have been exhausted and that the carriers will no longer provide defense and insurance coverage under those policies. However, the Company has other primary and excess insurance policies that the Company believes afford coverage for later years. Some of these other primary insurers have accepted defense and insurance coverage for these suits, and some of them have either ignored the Company’s tender of defense of these cases, or have denied coverage, or have accepted the tenders but asserted a reservation of rights and/or advised the Company that they need to investigate further. Because settlement payments are applied to all years a litigant was deemed to have been exposed to asbestos, the Company believes that it will have funds available for defense and insurance coverage under the non-exhausted primary and excess insurance policies. However, unlike the older policies, the more recent policies have deductible amounts for defense and settlements costs that the Company will be required to pay; accordingly, the Company expects that its litigation costs will increase in the future. Further, many of the policies covering later years (approximately 1984 and thereafter) have exclusions for any asbestos products or operations, and thus do not provide insurance coverage for asbestos-related lawsuits. The Company does not believe that the asserted exhaustion of some of the primary insurance coverage for the 1970-1978 period will have a material adverse effect on its financial condition, liquidity, or results of operations. Management believes that the number of insurance carriers involved in the defense of the suits, and the significant number of policy years and policy limits under which these insurance carriers are insuring the Company, make the ultimate disposition of these lawsuits not material to the Company's consolidated financial position or results of operations. As of December 31, 2020, we recorded $ 129 and $ 721 within other accrued liabilities and other long-term liabilities, respectively, within our Consolidated Balance Sheet for estimated future claims. An insurance receivable of $ 129 and $ 721 was recorded within other current assets and other assets, net, respectively, within our Consolidated Balance Sheet as of December 31, 2020 for estimated insurance recoveries. TCPA Litigation On October 9, 2019, plaintiff Mark Hoffman (“Hoffman”) filed a putative class action lawsuit against defendant Hearing Help Express, Inc. (“HHE”), a subsidiary of the Company, in the Federal District Court for the Western District of Washington based on specific provisions of the federal Telephone Consumer Protection Act (“TCPA”). HHE’s investigation revealed third-party lead generator Triangular Media Corp. (“Triangular”) provided Hoffman’s information to HHE only after he participated in Triangular’s interactive telephonic screening process. Hoffman claims he did not provide the requisite prior express written consent for autodialed telemarketing calls regarding hearing aids to be placed to his cellphone. He also claims he did not provide the requisite permission for telemarketing calls to his number registered on the Do-Not-Call (“DNC”) registry. Since the initial complaint was filed, Hoffman has amended his complaint several times to add additional parties, including Triangular, Triangular’s alleged owner, an alleged entity related to Triangular called LeadCreations.Com, LLC, Intricon, Inc., and Intricon Corporation. With respect to HHE, Hoffman seeks to certify a class of certain automated outbound telemarketing calls HHE allegedly made without prior consent, or to those numbers on the DNC registry, in the last four years. Hoffman also seeks to hold the Company vicariously liable for all of the calls HHE made without prior consent. The potential exposure under the TCPA is $ 500 per call, or $ 1,500 per call if the violation is deemed willful or knowing. The parties were engaged in discovery. However, the case is now stayed pending the United States Supreme Court’s ruling in another TCPA case – Duguid v. Facebook, No. 19-51 (argued Dec. 8, 2020) given the impact the Duguid opinion could have on this case. A ruling by the United States Supreme Court is expected this summer. The Company believes that HHE has strong legal and factual defenses in this proceeding. HHE and the Company intend to continue defending themselves vigorously in the pending lawsuit. While the Company is unable to predict the outcome of this proceeding, the Company believes that the ultimate outcome of this matter will not have a material adverse effect on the Company's consolidated financial position, liquidity or results of operations. Other Litigation Matters The Company is also involved from time to time in other lawsuits arising in the normal course of business. While it is not possible to predict with certainty the outcome of these matters, management is of the opinion that the disposition of these lawsuits and claims will not materially affect the Company’s consolidated financial position, liquidity, or results of operations. |
Related-Party Transactions
Related-Party Transactions | 12 Months Ended |
Dec. 31, 2020 | |
Related-Party Transactions [Abstract] | |
Related-Party Transactions | 21. RELATED-PART Y TRANSACTIONS The Company uses the law firm of Blank Rome LLP for legal services. A partner of that firm is the son-in-law of the Chairman of our Board of Directors; however, on May 1, 2019, the Chairman retired from the Company’s Board of Directors. The Company paid approximately $ 234 , and $ 498 , to Blank Rome LLP for legal services and costs in 2019, and 2018, respectively. The Company used $ 25,850 of the proceeds from the 2018 equity offering to repurchase 500 shares of common stock from certain directors and officers. The price paid by the Company for each share was the same price per share that the Company received in the offering. |
Supplemental Disclosure Of Cash
Supplemental Disclosure Of Cash Flows | 12 Months Ended |
Dec. 31, 2020 | |
Supplemental Disclosure Of Cash Flows [Abstract] | |
Supplemental Disclosure Of Cash Flows | 22. SUPPLEMENTAL DISCLOSURE OF CASH FLOWS Supplemental disclosures of cash flow information: Year Ended December 31, 2020 2019 2018 Interest received $ 425 $ 1,069 $ 381 Interest paid 77 72 680 Income taxes received 40 73 - Income taxes paid 107 148 190 Year Ended December 31, Noncash Investing and Financing Transactions: 2020 2019 2018 Acquisition of a business through contingent consideration liabilities incurred 3,705 - - Acquisition of a business through issuance of common stock 982 - - Investment in partnerships 442 - - Self-fitting software acquired through liabilities incurred and exchange of investment in partnership - 3,093 - Technology access liability - - ( 375 ) Machinery and equipment purchases that remain in accounts payable as of December 31, 2020, 2019 and 2018 were $ 154 , $ 61 and $ 1,030 , respectively. |
Revenue By Market
Revenue By Market | 12 Months Ended |
Dec. 31, 2020 | |
Revenue By Market [Abstract] | |
Revenue By Market | 23. REVENUE BY MA RKET The following table set s forth, for the periods indicated, net revenue by market: Year Ended December 31, 2020 2019 2018 Diabetes $ 59,311 $ 68,606 $ 65,197 Other Medical 19,726 13,487 10,448 Hearing Health Value Based DTEC 4,430 6,120 6,858 Hearing Health Value Based ITEC 5,558 8,910 11,949 Hearing Health Legacy OEM 8,968 9,892 12,257 Professional Audio Communications: 4,780 6,478 7,239 Total Revenue, net $ 102,773 $ 113,493 $ 113,948 The following table set s forth, for the periods indicated, the timing of revenue recognition : Year Ended December 31, 2020 (a) 2019 2018 Products and services transferred at point in time $ 37,774 $ 31,400 $ 38,303 Products and services transferred over time 64,999 82,093 75,645 Total Revenue, net $ 102,773 $ 113,493 $ 113,948 (a) During the quarter ended March 31, 2020, we recorded a cumulative adjustment of $ 1.2 million to reduce revenue within our other medical market to correct an error related to prior periods as a result of our determination that a portion of our sales being recognized over time needed to be recognized at a point in time. The adjustment included a reduction of the related cost of goods sold of $ 0.8 million and related impacts to reduce the contract asset and an increase to inventory. The adjustment was not material to our Consolidated Financial Statements for any quarterly or annual period. |
Summary Of Significant Accoun_2
Summary Of Significant Accounting Policies (Policy) | 12 Months Ended |
Dec. 31, 2020 | |
Summary Of Significant Accounting Policies [Abstract] | |
Basis Of Presentation | Basis of Presentation – The Company prepares financial statements in conformity with accounting principles generally accepted in the United States of America. On June 25, 2019, the Company’s officers, pursuant to delegated authority from the board, approved plans to discontinue the operations of its United Kingdom (UK) subsidiary. For all periods presented, the Company classified this business as discontinued operations, and, accordingly, has reclassified historical financial data presented herein. See further information in Note 4. |
Consolidation | Consolidation – The consolidated financial statements include the accounts of the Company and its consolidated subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. |
Principles Of Consolidation | Principles of Consolidation – The Company evaluates its voting and variable interests in entities on a qualitative and quantitative basis. The Company consolidates entities in which it concludes it has the power to direct the activities that most significantly impact an entity’s economic success and has the obligation to absorb losses or the right to receive benefits that could be significant to the entity. |
Business Combinations | Business Combinations – The Company records acquisitions in accordance with ASC 805, Business Combinations, with identifiable assets acquired and liabilities assumed recorded at their estimated fair values on the acquisition date. The excess of the purchase price over the estimated fair values of the net tangible and net intangible assets acquired is recorded as goodwill. The application of ASC 805, Business Combinations requires management to make significant estimates and assumptions in the determination of the fair value of assets acquired and liabilities assumed in order to properly allocate purchase price consideration between goodwill and assets that are depreciated and amortized. Our estimates are based on historical experience, information obtained from the management of the acquired companies and, when appropriate, include assistance from independent third-party appraisal firms. These estimates are inherently uncertain and unpredictable. In addition, unanticipated events or circumstances may occur which may affect the accuracy or validity of such estimates. See Note 2 for additional detail on the EMS business combination. |
Discontinued Operations | Discontinued Operations – The Company records discontinued operations when the disposal of a separately identified business unit constitutes a strategic shift in the Company’s operations. See Note 4 for additional detail. |
Non-Controlling Interests | Non-Controlling Interests – Since May 2020, the Company owns 54 percent of Emerald Extrusion Services LLC. (“EES”), which was acquired as part of the EMS acquisition. The Company has consolidated the results of EES for 2020 based on the Company’s ability to control the operations of the entity. The remaining ownership is accounted for as a non-controlling interest and reported as part of equity in the Consolidated Balance Sheets. |
Segment Disclosures | Segment Disclosures – Operating segments are identified as components of an enterprise about which separate financial information is available for evaluation by the chief operating decision-maker (“CODM”) in making decisions regarding resource allocation and assessing performance. The CODM uses net income as our primary measure of performance. We view our operations and manage our business as one operating segment since the restructuring of HHE in 2020. Prior to 2020, the Company operated in two reportable segments, our body-worn device segment and our direct-to-end-consumer hearing health segment. |
Use Of Estimates | Use of Estimates – The Company makes estimates and assumptions relating to the reporting of assets and liabilities, the recording of reported amounts of revenues and expenses and the disclosure of contingent assets and liabilities to prepare these consolidated financial statements. Actual results could differ from those estimates. Considerable management judgment is necessary in estimating future cash flows and other factors affecting the valuation of goodwill and intangible assets, including the operating and macroeconomic factors that may affect them. The Company uses historical financial information, internal plans and projections and industry information in making such estimates. |
Revenue Recognition | Revenue Recognition – Revenue is measured based on consideration specified in the contract with a customer, adjusted for any applicable estimates of variable consideration and other factors affecting the transaction price, including noncash consideration, consideration paid or payable to customers and significant financing components. Revenue from all customers is recognized when a performance obligation is satisfied by transferring control of a distinct good or service to a customer. Individual promised goods and services in a contract are considered a performance obligation and accounted for separately if the customer can benefit from the good or service on its own or with other resources that are readily available to the customer and the good or service is separately identifiable from other promises in the arrangement. When an arrangement includes multiple performance obligations, the consideration is allocated between the performance obligations in proportion to their estimated stand-alone selling price. Costs related to products delivered are recognized in the period incurred, unless criteria for capitalization of costs are met. Cost of goods sold consist primarily of direct labor, manufacturing overhead, materials and components. The Company excludes from revenue taxes collected from a customer that are assessed by a governmental authority and imposed on and concurrent with a specific revenue-producing transaction. The Company includes shipping and handling fees in revenue. Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as a fulfillment cost and are included in cost of goods sold. The timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled receivables (contract assets), and customer advances and deposits (contract liabilities) on the Consolidated Balance Sheet. When more than one party is involved in providing goods or services to a customer, the Company determines whether it is a principal or an agent in these transactions by evaluating the nature of its promise to the customer. The Company is a principal and therefore records revenue on a gross basis if it controls a promised good or service before transferring that good or service to the customer. The Company is an agent and records as revenue the net amount it retains for its agency services if its role is to arrange for another entity to provide the goods or services. Performance obligations - A performance obligation is a promise in a contract to transfer a distinct good or service to the customer. A contract’s transaction price is allocated to each distinct performance obligation in proportion to the standalone selling price for each and recognized as revenue when, or as, the performance obligation is satisfied. The Company’s various performance obligations and the timing or method of revenue recognition in each of the Company’s markets are discussed below: Medical market - Customer orders from the medical market consist of a specified number of assembled and customized parts that the customer further integrates into their production process to produce market ready products. Each unit of product delivered under a customer order represents a distinct and separate performance obligation as the customer can benefit from each unit on its own or with other resources that are readily available to the customer and each unit of product is separately identifiable from other products in the arrangement. Customer orders do not include additional follow-on goods or services. With the exception of prompt payment discounts, the transaction price for medical market products is the invoiced amount. Variable consideration in the form of refunds, credits, rebates, price concessions, pricing incentives or other items impacting transaction price are not present. All of the Company’s products manufactured for the medical market are designed to each customer’s specifications, do not have an alternative use and cannot be sold or redirected by the Company to others. The Company considers contractual arrangements, laws and legal precedent in determining enforceable right. The Company has an enforceable right to payment for any finished or in-process units, including a reasonable margin, if the customer terminates the contract for reasons other than the Company’s failure to perform as promised within our medical diabetes market and a select customer within our other medical market. For contractual arrangements in which an enforceable right exists, control of these units is deemed to transfer to the customer over time during the manufacturing process, using the same measure of progress toward satisfying the promise to deliver the units to the customer. Consequently, the transaction price is recognized as revenue over time for contractual arrangements with an enforceable right, based on actual costs incurred in the manufacturing process to date relative to total expected costs to produce all ordered units. The transaction price for contractual arrangements without an enforceable right to payment for any finished or in-process units including a reasonable margin is recognized as revenue at a point in time. Medical market products are invoiced when shipped and paid within normal commercial terms. The Company records a contract asset for revenue recognized over time in the production process for customized products that have not been shipped or invoiced to the customer. Hearing health market - Customer orders from the hearing health market consist of hearing aid devices and related accessories. Each unit of product delivered under a customer order represents a distinct and separate performance obligation as the customer can benefit from each unit on its own or with other resources that are readily available to the customer and each unit of product is separately identifiable from other products in the arrangement. With the exception of prompt payment discounts, the transaction price for the hearing health markets products is the invoiced amount. Variable consideration in the form of refunds, credits, rebates, price concessions, pricing incentives or other items impacting transaction price are not present. Nearly all of the Company’s products manufactured for the hearing health market can be reworked without significant cost and sold to another customer in the event of the customer’s termination of an order before delivery, and therefore have an alternative use to the Company. Generally, revenue is recognized upon the transfer of control of the products which is based on shipment terms; however, in certain cases the amount of shipment is adjusted for expected future returns and related consideration received. Professional audio market - The Company sells body-worn audio devices with application in the aviation, fire, law enforcement, safety and military markets as well as for performers and production staff in the music and stage performance markets. Each unit on a customer’s purchase order represents a distinct and separate performance obligation as the customer can benefit from each unit on its own or with other resources that are readily available to the customer and each unit is separately identifiable from the others because one does not significantly affect, modify or customize another. Variable consideration in the form of refunds, credits, rebates, price concessions, pricing incentives or other items impacting the transaction price are not present. Invoiced amounts are deemed to approximate standalone selling price. The products manufactured for the professional audio market can be reworked without significant cost and sold to another customer in the event of the customer’s termination of an order before delivery and therefore have an alternative use to the Company. Transfer of control of the goods, and revenue recognition, occurs at the point in time of shipment or delivery of the products to the customer depending on the applicable shipping terms. Professional audio market products are billed when shipped and paid within normal commercial terms. Hearing health direct-to-end-consumer (DTEC) market - The hearing health DTEC business distributes hearing aids and related accessories to the end consumer and is the Company’s only business market that generates revenue from sales to the end consumer. The Company also sells a limited number of service plans for the hearing aids. Each product or service is a distinct performance obligation as each is independently useful either on its own or together with other products procured from the Company or other vendors and each product or service is separately identifiable from the others because one does not significantly affect, modify or customize another. Invoiced amounts approximate standalone selling price. The hearing health DTEC business offers a 60-day trial period to the end consumer for hearing aids, during which customers can return the hearing aids for a full refund or exchange for a different hearing aid. The Company recognizes revenue only after completion of the 60-day trial period, when the customer’s commitment to the arrangement is deemed to exist and an enforceable right to payment is established. The transaction price for hearing aid accessories and service plans is the invoiced amount. Variable consideration in the form of refunds, credits, rebates, price concessions, pricing incentives or other items impacting transaction price are not present. Hearing aid accessories are billed and revenue is recognized upon shipment to the customer. Invoices are paid within normal commercial terms. Annual service plans are billed along with the hearing aid at the end of the 60-day trial period or upon renewal of the service plan and paid within normal commercial terms. As the customer consumes the benefits of the service plan relatively evenly over the plan term, revenue for service plans is recognized on a straight-line basis commencing at the end of the trial period. |
Sales Commissions | Sales Commissions - The Company has elected to apply the practical expedient provided by ASC 340-40-25-4 and recognize the incremental costs of obtaining contracts as an expense when incurred, as the amortization period of the assets that would have otherwise been recognized is one year or less. These costs are included in sales and marketing expenses on the Consolidated Statements of Operations. |
Fair Value Measurements | Fair Value Measurements – The Company follows the authoritative guidance on fair value measurements and disclosures with respect to assets and liabilities that are measured at fair value on both a recurring and nonrecurring basis. Fair value is defined as the exit price, or the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. The authoritative guidance also establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs market participants would use in valuing the asset or liability, based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the factors market participants would use in valuing the asset or liability developed based upon the best information available in the circumstances. The categorization of financial assets and financial liabilities within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The hierarchy is broken down into three levels defined as follows: ● Level 1 – Inputs are quoted prices in active markets for identical assets or liabilities. ● Level 2 – Inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, and inputs (other than quoted prices) that are observable for the asset or liability either directly or indirectly. ● Level 3 – Inputs are unobservable for the asset or liability. The Company reviews the fair value hierarchy classification on a quarterly basis. Changes in the ability to observe valuation inputs may result in a reclassification of levels for certain securities within the fair value hierarchy. The Company’s policy is to recognize transfers into and out of levels within the fair value hierarchy at the end of the fiscal quarter in which the actual event or change in circumstances that caused the transfer occurs. There were no transfers between Level 1, Level 2, or Level 3 during the years ended December 31, 2020 and 2019. When a determination is made to classify an asset or liability within Level 3, the determination is based upon the significance of the unobservable inputs to the overall fair value measurement. The carrying value of cash, cash equivalents and restricted cash, accounts receivable, contract assets, notes payable, and trade accounts payables approximate fair value because of the short maturity of those instruments. The fair values of the Company’s long-term debt obligations, pension and post-retirement obligations approximate their carrying values based upon current market rates of interest. |
Concentration Of Cash | Concentration of Cash – The Company deposits its cash in what management believes are high credit quality financial institutions. The balance, at times, may exceed federally insured limits. |
Restricted Cash | Restricted Cash – Restricted cash consists of deposits required to secure a credit facility at our Singapore location and deposits required to fund retirement related benefits for certain employees. |
Investment Securities | Investment Securities – The Company invests in commercial paper, corporate notes and bonds with original maturities of less than two years. The Company classifies these investments as held to maturity based on our intent and ability to hold these investments until maturity. Investments are classified current if expected to mature within the next twelve months. These investments are recorded at amortized cost, which approximates fair value, using level 2 inputs. Investment income included in interest income (expense), net on the Consolidated Statement of Operations was $ 423 , $ 996 , and $ 332 during 2020, 2019, and 2018, respectively. |
Accounts Receivable | Accounts Receivable – Amounts recorded in receivables, net, on the Consolidated Balance Sheet include amounts billed and currently due from customers. The amounts due are stated at their net estimated realizable value. A provision for doubtful accounts is maintained to provide for the estimated amount of receivables that will not be collected. The Company reviews customers’ credit history before extending unsecured credit and establishes an allowance for uncollectible accounts based upon factors surrounding the credit risk of specific customers, historical trends and other information. Invoices are generally due 30 days after presentation. Accounts receivable over 30 days are considered past due. The Company does not accrue interest on past due accounts receivables. Receivables are written off once all collection attempts have failed and are based on individual credit evaluation and specific circumstances of the customer. The provision for doubtful accounts balance was $ 210 and $ 325 as of December 31, 2020 and 2019, respectively. |
Inventories | Inventories – Inventories are stated at the lower of cost or net realizable value. The Company reduces the carrying value of inventories for items that are determined to be excess, obsolete or slow-moving based on changes in customer demand, technology developments, or other economic factors. The cost of the inventories is determined by the first-in, first-out method. |
Contract Assets | Contract Assets - Contract assets primarily include unbilled amounts recognized as revenue for customized products manufactured for the medical market. The customized goods have no alternative use to the Company and the Company has an enforceable right to payment for performance completed to date. The Company begins revenue recognition when these goods enter the manufacturing process and continues based on a measure of progress toward completion using a cost-to-cost input method that considers labor and overhead costs incurred and materials used to date in the manufacturing process relative to total expected production costs. Given the relatively short duration of the production process, contract assets are classified as current. Contract assets are reclassified to accounts receivable upon shipment of and invoicing for the products, at which point the right to consideration becomes unconditional. |
Machinery And Equipment | Machinery and Equipment – Machinery and equipment are carried at cost. Depreciation is computed on a straight-line basis using estimated useful lives of 3 to 12 years. Leasehold improvements are amortized using the straight-line method over the shorter of the lease term or the estimated useful life of the asset. Improvements are capitalized and expenditures for maintenance, repairs and minor renewals are charged to expense when incurred. At the time assets are retired or sold, the costs and accumulated depreciation are eliminated and the resulting gain or loss, if any, is reflected in the Consolidated Statement of Operations. Depreciation expense was $ 3,017 , $ 2,554 , and $ 1,909 for the years ended December 31, 2020, 2019, and 2018, respectively. |
Goodwill | Goodwill - Goodwill is reviewed for impairment annually as of November 30, or more frequently if changes in circumstances or the occurrence of events suggest impairment exists. The Company may apply a qualitative assessment to determine if it is more likely than not that goodwill is impaired. If the Company does not pass the qualitative assessment, or choses to skip the assessment, it performs a test comparing fair value of a reporting unit to its carrying value. The Company would need to recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. The Company concluded that no impairment of goodwill occurred during the year ended December 31, 2020. As of and for the period ended June 30, 2019, the fair value of the goodwill within our Hearing Help Express reporting unit was less than its carrying amount, which resulted in a non-cash impairment charge to goodwill of $ 1,257 . There were no further adjustments made to the carrying amount of goodwill as of December 31, 2019. The Company concluded that no impairment of goodwill occurred during the year ended December 31, 2018. |
Intangible Assets | Intangible Assets - The Company has definite-lived technology and customer relationship intangible assets that are evaluated for impairment periodically or when events or changes in circumstances indicate that the carrying amount of the intangible assets may not be recoverable. The Company evaluated the recoverability of its technology intangible assets due to delays in clinical trials to obtain the approval for new hearing products. The Company’s evaluation of the recoverability of technology intangible assets involves the comparison of undiscounted future cash flows expected to be generated by the products using these technologies over the remaining useful life of the technology assets to their respective carrying amounts. The Company’s recoverability analysis requires management to make significant estimates and assumptions related to future cash flows and the remaining useful life of the assets. The Company concluded that no impairment of intangible assets occurred during the year ended December 31, 2020. As of and for the period ended June 30, 2019, the fair value of the Hearing Help Express reporting unit was less than its carrying amount, which resulted in a non-cash impairment charge to intangible assets of $ 2,508 . There were no further adjustments made to the carrying amount of intangible assets as of December 31, 2019. The Company concluded that no impairment of intangible assets occurred during the year ended December 31, 2018. |
Long-lived Assets | Long-lived Assets – Long-lived assets are recorded at cost. The Company assesses the carrying amount for impairment when events or changes in circumstances indicate that the carrying amount may not be recoverable. This assessment includes certain assumptions related to future needs for the asset to help generate future cash flow. Changes in those assessments, future economic conditions or technological changes could have a material adverse impact on the carrying value of these assets. As of December 31, 2020, the Company has determined that no impairment of long-lived assets exists. |
Leases | Leases – At inception of a contract a determination is made whether an arrangement meets the definition of a lease. A contract contains a lease if there is an identified asset and the Company has the right to control the asset. Operating leases are recorded as right-of-use (“ROU”) assets with corresponding current and noncurrent operating lease liabilities on our Consolidated Balance Sheets. Financing leases are included within machinery and equipment with corresponding current and noncurrent financing lease liabilities on our Consolidated Balance Sheets. ROU assets represent our right to use an underlying asset for the duration of the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Recognition on the commencement date is based on the present value of lease payments over the lease term using an incremental borrowing rate. Leases with a term of 12 months or less at the commencement date are not recognized on the balance sheet and are expensed as incurred. The Company has lease agreements with lease and non-lease components, which are accounted for as a single lease component for all asset classes. Leases are accounted for at a portfolio level when similar in nature with identical or nearly identical provisions and similar effective dates and lease terms. |
Investment In Partnerships | Investment in Partnerships – Certain of the Company’s investments in equity securities are long-term, strategic investments in companies. Depending on whether the Company has significant influence over the entity, the Company accounts for these investments under the cost or equity method of accounting. Under the cost method, the Company records the investment at the amount the Company paid and recognizes income as dividends are paid. Under the equity method, the Company records the investment at the amount the Company paid and adjusts for the Company’s share of the investee’s income or loss and dividends paid. The investments are reviewed quarterly for changes in circumstances or the occurrence of events that suggest the Company’s investment may not be recoverable. |
Contingent Consideration | Contingent Consideration - Contingent consideration liabilities relate to estimated future payments in connection with the purchase of EMS. Contingent consideration liabilities depend on certain future events and are measured at fair value based on various level 3 inputs and assumptions including forecasts, probabilities of payment and discount rates. Amounts are classified current if expected to be paid within the next twelve months and recorded on the Consolidated Balance Sheets within other accrued liabilities. Noncurrent liabilities are classified on the Consolidated Balance Sheets within other long-term liabilities. The liabilities for contingent consideration are subject to fair value adjustments each reporting period that will be recognized through the Statement of Operations. |
Income Taxes | Income Taxes – Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, operating losses and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Valuation allowances are established to the extent the future benefit from the deferred tax assets realization is more likely than not unable to be realized. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company recognizes accrued interest and penalties related to uncertain tax positions in income tax expense. At December 31, 2020 and 2019, the Company had no accrual for the payment of tax related interest and there was no tax interest or penalties recognized in the Consolidated Statements of Operations. The Company’s federal and state tax returns are potentially open to examinations for fiscal years 2003-2005, 2009-2013 and 2015-2018. |
Employee Benefit Obligations | Employee Benefit Obligations – The Company provides pension and health care insurance for certain domestic retirees and employees of its operations discontinued in 2005. These obligations have been included in continuing operations as the Company retained these obligations. The Company also provides retirement related benefits for certain foreign employees. The Company measures the costs of its obligation based on actuarial determinations. The net periodic costs are recognized as employees render the services necessary to earn the post-retirement benefit and the obligation is recorded on the Consolidated Balance Sheet as accrued pension liabilities. Assumptions about the discount rate and the expected rate of return on plan assets are determined by the Company. The Company believes the assumptions are within accepted guidelines and ranges. However, these actuarial assumptions could vary materially from actual results due to economic events and different rates of retirement, mortality and withdrawal. |
Stock Based Compensation And Equity Plans | Stock Based Compensation and Equity Plans – Under the Company stock-based compensation plans, executives, employees and outside directors receive awards of options to purchase common stock and restricted stock units. Under all awards, the terms are fixed at the grant date. For stock options, the exercise price equals the market price of the Company’s stock on the date of the grant. Options under the plans generally vest over three years and have a maximum term of 10 years. The Company expenses grant-date fair values of stock options, based on the Black-Scholes model, ratably over the vesting period of the related share-based award. Restricted stock units are valued based on the closing stock price on the date of the grant and are expensed evenly over the vesting period. The restricted stock units vest in equal, annual installments over a three year period beginning on the first anniversary of the date of grant at which time common stock is issued with respect to vested units. The plans also permit the granting of stock awards, stock appreciation rights, restricted stock and other equity-based awards. |
Product Warranty | Product Warranty – The Company offers a warranty on various products and services. The Company estimates the costs that may be incurred under its warranties and records a liability in the amount of such costs at the time the product is sold. Factors that affect the Company’s warranty liability include the number of units sold, historical and anticipated rates of warranty claims and cost per claim. The Company periodically assesses the adequacy of its recorded warranty liabilities and adjusts the amounts as necessary. The amount of the reserve recorded is equal to the costs to repair or otherwise satisfy the claim. Historically, the Company has not incurred any significant amounts of warranty expense on its products. |
Patent Costs | Patent Costs – Costs associated with the submission of a patent application are expensed as incurred given the uncertainty of the patents providing future economic benefit to the Company. |
Advertising Costs | Advertising Costs – Advertising costs amounted to $ 644 , $ 2,650 , and $ 3,419 in 2020, 2019, and 2018, respectively, and are charged to expense when incurred. |
Research And Development Costs | Research and Development Costs – Research and development costs, net of customer funding, amounted to $ 5,248 , $ 3,830 , and $ 4,671 in 2020, 2019, and 2018, respectively, and are charged to expense when incurred, net of customer funding. The Company accrues proceeds received under governmental grants when earned and estimable as a reduction to research and development expense. |
Customer Funded Tooling Costs | Customer Funded Tooling Costs – The Company designs and develops molds and tools for reimbursement on behalf of several customers. The Company does not consider tooling transactions as ongoing central operations of the Company, and therefore, customer payments are not included in revenue in the Consolidated Statements of Operations. Costs associated with the design and development of the molds and tools are charged to expense, net of the customer reimbursement amount. Net customer funded tooling resulted in income (expense) of ($ 387 ), $ 25 , and ($ 184 ) for the years ended December 31, 2020, 2019, and 201, respectively, and is included in cost of goods sold in the Consolidated Statements of Operations. |
Income (Loss) Per Share | Income (Loss) Per Share – Basic income (loss) per share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the year. Diluted income (loss) per common share reflects the potential dilution of securities that could share in the earnings. The Company uses the treasury stock method for calculating the dilutive effect of stock awards. |
Comprehensive (Loss) Income | Comprehensive (Loss) Income – Comprehensive income (loss) consists of net income (loss), pension and post-retirement obligations and foreign currency translation adjustments and is presented in the consolidated statements of comprehensive (loss) income. |
Foreign Currency Translation | Foreign Currency Translation – The Company’s German subsidiary accounts for its transactions in its functional currency, the Euro. Foreign assets and liabilities are translated into United States dollars using the year-end exchange rates. Equity is translated at average historical exchange rates. Results of operations are translated using the average exchange rates throughout the year. Translation gains or losses are accumulated as a separate component of equity. |
Subsequent Event Policy | Subsequent Event Policy – The Company has evaluated events occurring after the date of the consolidated financial statements for events requiring recording or disclosure in the consolidated financial statements. |
Reclassification | Reclassification - The Company changed the classification of certain other assets, net to intangible assets on the Consolidated Balance Sheet for the year ended December 31, 2020. To conform with the current period presentation, amounts previously reported as other assets, net, of $ 5,545 as of December 31, 2019, have been reclassified to intangible assets to conform with the current period presentation. Refer to Note 7 for additional details. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses Topic 326, which requires certain financial assets to be measured at amortized cost net of an allowance for estimated credit losses, such that the net receivable represents the present value of expected cash collection. In addition, this standard update requires that certain financial assets be measured at amortized cost reflecting an allowance for estimated credit losses expected to occur over the life of the assets. The estimate of credit losses must be based on all relevant information including historical information, current conditions, and reasonable and supportable forecasts that affect the collectability of the amounts. Topic 326 is effective for interim and annual periods beginning January 1, 2022 for smaller reporting companies. This standard update is not expected to have a material impact on our financial position, results of operations and cash flows. In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes as part of its overall simplification initiative to reduce costs and complexity in applying accounting standards while maintaining or improving the usefulness of the information provided to users of the financial statements. Amendments include removal of certain exceptions to the general principals of ASC 740, Income Taxes , and simplification in several other areas such as accounting for franchise tax (or similar tax) that is partially based on income. ASU 2019-12 is effective for interim and annual periods beginning after December 15, 2020. This standard update did not have a material impact on our financial position, results of operations and cash flows. In January 2020, the FASB issued ASU 2020-01, Clarifying the Interactions between Topic 321, Topic 323, and Topic 815 , which clarifies that a company should consider observable transactions that require a company to either apply or discontinue the equity method of accounting under ASC 323, Investments – Equity Method and Joint Venture , for the purposes of applying the measurement alternative in accordance with ASC 321, Investments – Equity Securities , immediately before applying or upon discontinuing the equity method. ASU 2020-01 is effective for interim and annual periods beginning after December 15, 2020. This standard update did not have a material impact on our financial position, results of operations and cash flows. In April 2020, the FASB issued ASU 2020-04, Reference Rate Reform Topic 848 , which provides temporary optional guidance to ease the potential burden in accounting for reference rate reform. Topic 848 provides optional expedients and exceptions for applying U.S. GAAP to transactions affected by reference rate reform if certain criteria are met. ASU 2020-04 is effective as of March 12, 2020. This standard update is not expected to have a material impact on our financial position, results of operations and cash flows. |
Business Combination (Tables)
Business Combination (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Business Combination [Abstract] | |
Significant Impact On Fair Value Measurement | Simulation input At acquisition May 18, 2020 As of December 31, 2020 Revenue volatility 20.0 % 20.0 % Weighted average cost of capital 25.0 % 25.0 % Discount rate 3.5 % 3.5 % |
Reconciliation Of The Contingent Consideration Liability Measured And Carried At Fair Value On Recurring Basis | Carrying amount at December 31, 2019 $ - Addition for acquisition of Emerald Medical Services 3,414 Change in fair value 660 Less payments ( 500 ) Carrying amount at December 31, 2020 $ 3,574 |
Schedule Of Business Acquisition Purchase Price | Current assets $ 3,104 Machinery and equipment 172 Intangible assets 6,400 Goodwill 4,163 Noncurrent assets 169 Current liabilities ( 1,105 ) Noncurrent liabilities ( 1,088 ) Total consideration paid $ 11,815 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Schedule Of Loss On Sale Of Discontinued Operations | Accounts receivable, net $ 77 Write-down of inventory to realizable value 278 Write-down of property, plant and equipment to salvage value 298 Other assets and liabilities, net 71 Realized loss on foreign currency 280 Net assets disposed 1,004 Additional disposal costs, net 112 Loss on disposal of discontinued operations $ 1,116 |
Summary Of Results Of Discontinued Operations | Year Ended December 31, 2019 2018 Revenue, net $ 1,068 $ 2,514 Cost of goods sold 667 1,582 Gross profit 401 932 Sales and marketing 314 902 General and administrative 684 1,291 Total operating expenses 998 2,193 Other income, net - 46 Loss from discontinued operations, net of taxes $ ( 597 ) $ ( 1,215 ) |
UK Subsidiary [Member] | |
Schedule Of Discontinued Operations Balance Sheet | Other current assets $ 80 Other accrued liabilities 77 Net assets $ 3 |
Geographic And Customer Infor_2
Geographic And Customer Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Geographic And Customer Information [Abstract] | |
Geographical Distribution Of Long-Lived Assets, Net | December 31, December 31, 2020 2019 United States $ 12,539 $ 12,215 Singapore 1,460 1,263 Other 178 73 Consolidated $ 14,177 $ 13,551 |
Geographical Distribution Of Net Revenue | Year Ended December 31, Net Revenue to Geographical Areas 2020 2019 2018 United States $ 75,325 $ 94,530 $ 96,822 Europe 5,501 5,611 5,846 Asia 11,476 9,374 10,009 All other countries 10,470 3,978 1,271 Consolidated $ 102,773 $ 113,493 $ 113,948 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Intangible Assets [Abstract] | |
Schedule Of Goodwill | Carrying amount at December 31, 2018 $ 10,808 Impairment of goodwill of Hearing Health Express ( 1,257 ) Carrying amount at December 31, 2019 9,551 Acquisition of Emerald Medical Services 4,163 Carrying amount at December 31, 2020 $ 13,714 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Intangible Assets [Abstract] | |
Changes In Carrying Amount Of Intangible Assets | Carrying amount at December 31, 2018 $ 4,844 Acquisition of self-fitting software 3,679 Amortization of intangible assets ( 470 ) Impairment of intangible assets of Hearing Help Express ( 2,508 ) Carrying amount at December 31, 2019 $ 5,545 Acquisition of Emerald Medical Services 6,400 Additional self-fitting software costs 296 Amortization of intangible assets ( 1,456 ) Carrying amount at December 31, 2020 $ 10,785 |
Summary Of Intangible Assets | December 31, 2020 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer list $ 6,400 $ ( 467 ) $ 5,933 Self-fitting software 3,975 ( 596 ) 3,379 Technology access 2,750 ( 1,277 ) 1,473 Total $ 13,125 $ ( 2,340 ) $ 10,785 December 31, 2019 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Self-fitting software $ 3,679 $ - $ 3,679 Technology access 2,750 ( 884 ) 1,866 Total $ 6,429 $ ( 884 ) $ 5,545 |
Investment In Partnerships (Tab
Investment In Partnerships (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Investment In Partnerships [Abstract] | |
Investments in Partnerships | December 31, December 31, 2020 2019 Investment in Signison $ 418 $ 852 Other 152 308 Total $ 570 $ 1,160 |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Investment Securities [Abstract] | |
Summary Of Maturity Dates Of Investments | The maturity dates of our investments as of December 31, 2020 are as follows: Less than one year 1-5 years Total Commercial Paper Original Maturities of 91 Days or More $ 7,490 $ - $ 7,490 Corporate Notes and Bonds 12,303 5,085 17,388 Total Investments $ 19,793 $ 5,085 $ 24,878 The maturity dates of our investments as of December 31, 2019 are as follows: Less than one year 1-5 years Total Commercial Paper Original Maturities of 91 Days or More $ 8,461 $ - $ 8,461 Corporate Notes and Bonds 14,990 8,629 23,619 Total Investments $ 23,451 $ 8,629 $ 32,080 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Inventories [Abstract] | |
Schedule Of Inventories | Raw materials Work-in process Finished products and components Total December 31, 2020 Domestic $ 11,371 $ 1,499 $ 2,149 $ 15,019 Foreign 3,393 968 133 4,494 Total $ 14,764 $ 2,467 $ 2,282 $ 19,513 December 31, 2019 Domestic $ 10,379 $ 736 $ 2,375 $ 13,490 Foreign 2,482 215 190 2,887 Total $ 12,861 $ 951 $ 2,565 $ 16,377 |
Other Accrued Liabilities (Tabl
Other Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other Accrued Liabilities [Abstract] | |
Components Of Other Accrued Liabilities | December 31, 2020 December 31, 2019 Pension $ 120 $ 120 Postretirement benefit obligation 68 71 Deferred revenue 184 327 Current self-fitting software liability 264 285 Current technology access liability 742 1,236 Current earn-out contingent consideration liability 1,090 - Customer funded projects 759 - Other 1,008 830 Total $ 4,235 $ 2,869 |
Other Long-Term Liabilities (Ta
Other Long-Term Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other Long-Term Liabilities [Abstract] | |
Schedule Of Other Long-Term Liabilities | December 31, December 31, 2020 2019 Noncurrent self-fitting software liability $ 792 $ 922 Noncurrent technology access liability 247 989 Noncurrent earn-out contingent consideration liability 2,484 - Other 875 260 Total $ 4,398 $ 2,171 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Summary Of Lease Costs By Type | Year Ended December 31, 2020 2019 Lease cost Finance lease cost: Amortization of right-of-use assets $ 88 $ 103 Interest on lease liabilities 3 10 Operating lease cost 1,926 1,862 Variable lease cost* 611 564 Total lease cost $ 2,628 $ 2,539 * Variable lease costs consists primarily of taxes, insurance, and common area or other maintenance costs for our domestic and foreign building leases. |
Maturities Of Lease Liabilities | Operating Leases Financing Leases 2021 $ 2,449 $ 24 2022 1,959 3 2023 1,358 - 2024 1,035 - 2025 and thereafter 785 - Total lease payments 7,587 27 Less: Interest ( 705 ) ( 6 ) Present value of lease liabilities $ 6,882 $ 21 |
Domestic And Foreign Income T_2
Domestic And Foreign Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Domestic And Foreign Income Taxes [Abstract] | |
Domestic And Foreign Income Taxes (Benefits) | Year Ended December 31, 2020 2019 2018 Current Federal $ ( 74 ) $ 24 $ - State 10 - - Foreign 157 173 227 Total Current $ 93 $ 197 $ 227 Deferred Federal 74 - 12 State - - - Foreign ( 106 ) 4 245 Total Deferred $ ( 32 ) $ 4 $ 257 Income Tax Expense $ 61 $ 201 $ 484 (Loss) income from continuing operations before income taxes and discontinued operations Foreign ( 255 ) 360 1,258 Domestic ( 2,173 ) ( 2,223 ) 5,988 Total $ ( 2,428 ) $ ( 1,863 ) $ 7,246 |
Schedule Of Reconciliation Of The Statutory Federal Income Tax Rate To The Effective Tax Rate Based On Income (Loss) | Year Ended December 31, 2020 2019 2018 (a) Tax provision at statutory rate 21.0 % 21.0 % 21.0 % Change in valuation allowance ( 27.6 ) ( 23.6 ) 43.4 Impact of permanent items, including stock based compensation expense and impairment loss 11.0 ( 0.3 ) ( 52.7 ) Effect of foreign tax rates ( 0.8 ) 0.3 0.5 State taxes net of federal benefit ( 3.9 ) ( 1.0 ) 0.1 Prior year provision to return true-up ( 3.2 ) ( 5.8 ) ( 5.6 ) Non-controlling interest 1.0 ( 0.7 ) 0.2 Other ( 0.0 ) ( 0.8 ) ( 0.2 ) Domestic and foreign income tax rate ( 2.5 ) % ( 10.8 ) % 6.7 % (a) Historical effective tax rates have been adjusted due to discontinued operations. Please refer to Note 4 for further information. |
Schedule Of Deferred Tax Assets And Liabilities | Year Ended December 31, 2020 2019 Deferred tax assets: Net operating loss carry forwards $ 8,486 $ 7,749 Inventory 548 509 Compensation accruals 1,161 960 Accruals and reserves 92 109 Credits 235 308 Contract assets 1,573 1,489 Other 134 175 Total Deferred tax assets 12,229 11,299 Less: valuation allowance ( 11,395 ) ( 10,605 ) Deferred tax assets net of valuation allowance $ 834 $ 694 Deferred tax liabilities Depreciation and amortization ( 844 ) ( 689 ) Identified intangibles ( 1,008 ) - Total deferred tax liabilities ( 1,852 ) ( 689 ) Net deferred tax $ ( 1,018 ) $ 5 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Employee Benefit Plans [Abstract] | |
Schedule Of Amounts Recognized In Consolidated Balance Sheets | 2020 2019 Change in Projected Benefit Obligation: Projected benefit obligation at January 1 $ 453 $ 450 Interest cost 15 16 Actuarial loss 55 63 Participant contributions 10 10 Benefits paid ( 80 ) ( 86 ) Projected benefit obligation at December 31 $ 453 $ 453 Change in fair value of plan assets: Employer contributions 70 76 Participant contributions 10 10 Benefits paid ( 80 ) ( 86 ) Funded status $ ( 453 ) $ ( 453 ) Current liabilities 71 71 Noncurrent liabilities 382 382 Net amount recognized $ 453 $ 453 Amount recognized in other comprehensive income (loss) 76 37 Amount recognized in the consolidated statement of operations 377 416 Total $ 453 $ 453 |
Schedule Of Assumptions Used | 2020 2019 2018 Annual increase in cost of benefits 5.5 % 5.6 % 5.7 % Discount rate used to determine year-end obligations 1.5 % 3.5 % 3.9 % Discount rate used to determine year-end expense 3.5 % 3.9 % 3.3 % |
Schedule Of Liabilities Recorded | 2020 2019 Current portion $ 120 $ 120 Long-term portion 907 655 Total liability at December 31 $ 1,027 $ 775 |
Schedule Of Expected Benefit Payments | 2021 $ 188 2022 171 2023 155 2024 139 2025 124 Years 2026 and thereafter 703 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accumulated Other Comprehensive Income [Abstract] | |
Classification Included Within AOCI On The Consolidated Balance Sheets | 2020 2019 Foreign currency translation $ ( 344 ) $ ( 403 ) Pension and postretirement obligations ( 335 ) ( 117 ) Total $ ( 679 ) $ ( 520 ) |
Common Stock And Stock Awards (
Common Stock And Stock Awards (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Common Stock And Stock Awards [Abstract] | |
Summary Of Stock Option Activity | Outstanding Awards Stock Options RSUs Total Stock Option Weighted-Average Exercise Price (a) Aggregate Intrinsic Value Outstanding at December 31, 2017 1,438 - 1,438 $ 6.00 Awards forfeited or cancelled ( 8 ) - ( 8 ) 7.20 Awards granted - 98 98 - Awards exercised or released ( 600 ) - ( 600 ) 5.65 Outstanding at December 31, 2018 830 98 928 6.25 Awards forfeited or cancelled ( 3 ) ( 1 ) ( 4 ) 6.42 Awards granted - 79 79 - Awards exercised or released ( 81 ) ( 48 ) ( 129 ) 4.91 Outstanding at December 31, 2019 746 128 874 $ 6.39 Awards forfeited or cancelled ( 1 ) ( 5 ) ( 6 ) 5.72 Awards granted - 146 146 - Awards exercised or released ( 55 ) ( 52 ) ( 107 ) 4.88 Outstanding at December 31, 2020 690 217 907 $ 6.51 $ 11,929 Exercisable at December 31, 2019 668 668 $ 6.30 $ 7,819 Exercisable at December 31, 2020 690 690 $ 6.51 $ 7,997 Available for future grant at December 31,2020 73 |
(Loss) Income Per Share (Tables
(Loss) Income Per Share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
(Loss) Income Per Share [Abstract] | |
Reconciliation Between Basic And Diluted Earnings Per Share | Year Ended December 31, 2020 2019 2018 Numerator: (Loss) income from continuing operations before discontinued operations $ ( 2,489 ) $ ( 2,064 ) $ 6,762 Loss from discontinued operations (Note 4) - ( 1,713 ) ( 1,215 ) Less: Income allocated to non-controlling interest ( 35 ) - - Net (loss) income attributable to Intricon shareholders $ ( 2,524 ) $ ( 3,777 ) $ 5,547 Denominator: Basic – weighted shares outstanding 8,894 8,748 7,599 Dilutive effect from stock awards - - 1,031 Diluted – weighted shares outstanding 8,894 8,748 8,630 Basic (loss) income per share attributable to Intricon shareholders: Continuing operations $ ( 0.28 ) $ ( 0.23 ) $ 0.89 Discontinued operations - ( 0.20 ) ( 0.16 ) Net (loss) income per share: $ ( 0.28 ) $ ( 0.43 ) $ 0.73 Diluted (loss) income per share attributable to Intricon shareholders: Continuing operations $ ( 0.28 ) $ ( 0.23 ) $ 0.78 Discontinued operations - ( 0.20 ) ( 0.14 ) Net (loss) income per share: $ ( 0.28 ) $ ( 0.43 ) $ 0.64 |
Supplemental Disclosure Of Ca_2
Supplemental Disclosure Of Cash Flows (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Supplemental Disclosure Of Cash Flows [Abstract] | |
Supplemental Disclosures Of Cash Flow Information | Year Ended December 31, 2020 2019 2018 Interest received $ 425 $ 1,069 $ 381 Interest paid 77 72 680 Income taxes received 40 73 - Income taxes paid 107 148 190 Year Ended December 31, Noncash Investing and Financing Transactions: 2020 2019 2018 Acquisition of a business through contingent consideration liabilities incurred 3,705 - - Acquisition of a business through issuance of common stock 982 - - Investment in partnerships 442 - - Self-fitting software acquired through liabilities incurred and exchange of investment in partnership - 3,093 - Technology access liability - - ( 375 ) |
Revenue By Market (Tables)
Revenue By Market (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Revenue By Market [Abstract] | |
Schedule Of Net Revenue By Market | Year Ended December 31, 2020 2019 2018 Diabetes $ 59,311 $ 68,606 $ 65,197 Other Medical 19,726 13,487 10,448 Hearing Health Value Based DTEC 4,430 6,120 6,858 Hearing Health Value Based ITEC 5,558 8,910 11,949 Hearing Health Legacy OEM 8,968 9,892 12,257 Professional Audio Communications: 4,780 6,478 7,239 Total Revenue, net $ 102,773 $ 113,493 $ 113,948 |
Timing Of Revenue Recognition | Year Ended December 31, 2020 (a) 2019 2018 Products and services transferred at point in time $ 37,774 $ 31,400 $ 38,303 Products and services transferred over time 64,999 82,093 75,645 Total Revenue, net $ 102,773 $ 113,493 $ 113,948 (a) During the quarter ended March 31, 2020, we recorded a cumulative adjustment of $ 1.2 million to reduce revenue within our other medical market to correct an error related to prior periods as a result of our determination that a portion of our sales being recognized over time needed to be recognized at a point in time. The adjustment included a reduction of the related cost of goods sold of $ 0.8 million and related impacts to reduce the contract asset and an increase to inventory. The adjustment was not material to our Consolidated Financial Statements for any quarterly or annual period. |
Summary Of Significant Accoun_3
Summary Of Significant Accounting Policies (Narrative) (Details) | 6 Months Ended | 12 Months Ended | |||||
Dec. 31, 2019USD ($) | Jun. 30, 2019USD ($) | Dec. 31, 2020USD ($)segment | Dec. 31, 2019USD ($)segment | Dec. 31, 2018USD ($) | May 31, 2020 | May 18, 2020 | |
Significant Accounting Policies [Line Items] | |||||||
Number of operating segments | segment | 1 | ||||||
Number of reportable segments | segment | 2 | ||||||
Investment income | $ 423,000 | $ 996,000 | $ 332,000 | ||||
Allowance for doubtful accounts | $ 325,000 | 210,000 | 325,000 | ||||
Goodwill impairment | 0 | $ 1,257,000 | 0 | 1,257,000 | 0 | ||
Depreciation expense | 3,017,000 | 2,554,000 | 1,909,000 | ||||
Impairment of intangible assets | 0 | 2,508,000 | 0 | ||||
Impairment of long-lived assets from continuing operations | 0 | ||||||
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount | 0 | 0 | 0 | ||||
Fair Value, Assets, Level 2 to Level 1 Transfers, Amount | 0 | 0 | 0 | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net | 0 | 0 | |||||
Tax related interest accrued | 0 | 0 | 0 | ||||
Income Tax Examination, Penalties and Interest Accrued | 0 | 0 | 0 | ||||
Advertising costs | 644,000 | 2,650,000 | 3,419,000 | ||||
Research and development | 5,248,000 | 3,830,000 | 4,671,000 | ||||
Other assets, net | 510,000 | 990,000 | 510,000 | ||||
Intangible Assets | 5,545,000 | $ 10,785,000 | 5,545,000 | 4,844,000 | |||
Minimum [Member] | Machinery and Equipment [Member] | |||||||
Significant Accounting Policies [Line Items] | |||||||
Estimated useful life | 3 years | ||||||
Maximum [Member] | Machinery and Equipment [Member] | |||||||
Significant Accounting Policies [Line Items] | |||||||
Estimated useful life | 12 years | ||||||
Customer Funded Tooling [Member] | |||||||
Significant Accounting Policies [Line Items] | |||||||
Net customer funded tooling income (expense) | $ (387,000) | 25,000 | $ (184,000) | ||||
Stock Options [Member] | Minimum [Member] | |||||||
Significant Accounting Policies [Line Items] | |||||||
Vesting period | 3 years | ||||||
Stock Options [Member] | Maximum [Member] | |||||||
Significant Accounting Policies [Line Items] | |||||||
Vesting period | 10 years | ||||||
Maximum term | 10 years | ||||||
Restricted Stock Units (RSUs) [Member] | |||||||
Significant Accounting Policies [Line Items] | |||||||
Vesting period | 3 years | ||||||
Emerald Extrusion Services LLC [Member] | Emerald Medical Services Pte., Ltd [Member] | |||||||
Significant Accounting Policies [Line Items] | |||||||
Ownership percentage | 54.00% | 54.00% | |||||
Restatement Adjustment [Member] | |||||||
Significant Accounting Policies [Line Items] | |||||||
Other assets, net | (5,545,000) | (5,545,000) | |||||
Reclassification [Member] | |||||||
Significant Accounting Policies [Line Items] | |||||||
Intangible Assets | $ 5,545,000 | $ 5,545,000 |
Business Combination (Narrative
Business Combination (Narrative) (Details) - USD ($) shares in Thousands, $ in Thousands | May 18, 2020 | Dec. 31, 2020 | Dec. 31, 2020 | May 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | ||||||
Purchase price, paid in cash | $ 7,128 | |||||
Change in fair value of contingent consideration | 660 | |||||
Contingent consideration amount | $ 3,574 | 3,574 | ||||
Intangible assets | $ 6,400 | |||||
Deferred tax liability, book-tax difference from amortization of intangible assets | 1,008 | 1,008 | ||||
Goodwill | $ 4,163 | 13,714 | $ 13,714 | $ 9,551 | $ 10,808 | |
Emerald Medical Services Pte., Ltd [Member] | Emerald Extrusion Services LLC [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Ownership percentage | 54.00% | 54.00% | ||||
Emerald Medical Services Pte., Ltd [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Acquisition date | May 18, 2020 | |||||
Purchase price | $ 11,815 | |||||
Purchase price, paid in cash | 7,128 | |||||
Post-closing working capital adjustment | 291 | |||||
Common stock value of issuance from business combination | $ 982 | |||||
Contingent consideration liability, term | 18 months | |||||
Change in fair value of contingent consideration | 660 | $ 660 | ||||
Contingent consideration amount | $ 3,414 | 500 | 500 | |||
Shares issued, acquisition related | 80 | |||||
Additional earn-out payments percent | 28.00% | |||||
Acquisition costs | 493 | $ 493 | ||||
Revenue attributable to acquirees | 7,361 | |||||
Net income | $ 30 | |||||
Intangible assets | $ 6,400 | |||||
Acquired finite-lived intangible assets amortization period | 8 years | |||||
Deferred tax liability, book-tax difference from amortization of intangible assets | 1,055 | |||||
Goodwill | 4,041 | |||||
Purchase accounting adjustments related to accrued salaries and goodwill | $ 122 | |||||
Emerald Medical Services Pte., Ltd [Member] | Maximum [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Earn out | 1,000 | |||||
Emerald Medical Services Pte., Ltd [Member] | Minimum [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Earn out | 333 | |||||
Emerald Medical Services Pte., Ltd [Member] | Cash Payment, Regulatory Approval In Japan [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Contingent consideration liability, term | 12 months | |||||
Contingent consideration amount | 500 | |||||
Emerald Medical Services Pte., Ltd [Member] | Earn-Out Payment, Net Revenue During First Year [Member] | Maximum [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Revenues | 11,000 | |||||
Emerald Medical Services Pte., Ltd [Member] | Earn-Out Payment, Net Revenue During First Year [Member] | Minimum [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Revenues | $ 9,000 | |||||
Emerald Medical Services Pte., Ltd [Member] | Additional Earn-Out Payment [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Contingent consideration liability, term | 3 years |
Business Combination (Significa
Business Combination (Significant Impact On Fair Value Measurement) (Details) - item | Dec. 31, 2020 | May 18, 2020 |
Revenue Volatility [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Business Combination, Contingent Consideration, Liability, Measurement Input | 20 | 20 |
Weighted Average Cost Of Capital [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Business Combination, Contingent Consideration, Liability, Measurement Input | 25 | 25 |
Discount Rate [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Business Combination, Contingent Consideration, Liability, Measurement Input | 3.5 | 3.5 |
Business Combination (Reconcili
Business Combination (Reconciliation Of The Contingent Consideration Liability Measured And Carried At Fair Value On Recurring Basis) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Business Combination [Abstract] | |
Addition for acquisition of Emerald Medical Services | $ 3,414 |
Change in fair value | 660 |
Less payments | (500) |
Carrying amount at December 31, 2020 | $ 3,574 |
Business Combination (Schedule
Business Combination (Schedule Of Business Acquisition Purchase Price) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | May 18, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Business Combination [Abstract] | ||||
Current assets | $ 3,104 | |||
Machinery and equipment | 172 | |||
Intangible assets | 6,400 | |||
Goodwill | $ 13,714 | 4,163 | $ 9,551 | $ 10,808 |
Noncurrent assets | 169 | |||
Current liabilities | (1,105) | |||
Noncurrent liabilities | (1,088) | |||
Total consideration paid | $ 11,815 |
Restructuring Charges (Narrativ
Restructuring Charges (Narrative) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | $ 1,171 |
Outstanding restructuring liabilities | 113 |
One-time Employee Termination Benefits [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 732 |
Lease Modification Costs [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 326 |
Losses On Disposal Of Assets [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | $ 113 |
Discontinued Operations (Narrat
Discontinued Operations (Narrative) (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Discontinued Operations [Abstract] | |
Discontinued operations, non-cash operating lease assets and lease liabilities | $ 761 |
Discontinued Operations (Schedu
Discontinued Operations (Schedule Of Discontinued Operations Balance Sheet) (Details) - Discontinued Operations, Disposed of by Sale [Member] - UK Subsidiary [Member] $ in Thousands | Dec. 31, 2019USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Other current assets | $ 80 |
Other accrued liabilities | 77 |
Net assets | $ 3 |
Discontinued Operations (Sche_2
Discontinued Operations (Schedule Of Loss On Sale Of Discontinued Operations) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Loss on disposal of discontinued operations | $ 1,116 |
Discontinued Operations, Disposed of by Sale [Member] | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Accounts receivable, net | 77 |
Write-down of inventory to realizable value | 278 |
Write-down of property, plant and equipment to salvage value | 298 |
Other assets and liabilities, net | 71 |
Realized loss on foreign currency | 280 |
Net assets disposed | 1,004 |
Additional disposal costs, net | 112 |
Loss on disposal of discontinued operations | $ 1,116 |
Discontinued Operations (Summar
Discontinued Operations (Summary Of Results Of Discontinued Operations) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Loss from discontinued operations, net of taxes | $ (597) | $ (1,215) |
Discontinued Operations [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Revenue, net | 1,068 | 2,514 |
Cost of goods sold | 667 | 1,582 |
Gross profit | 401 | 932 |
Sales and marketing | 314 | 902 |
General and administrative | 684 | 1,291 |
Total operating expenses | 998 | 2,193 |
Other income, net | 46 | |
Loss from discontinued operations, net of taxes | $ (597) | $ (1,215) |
Geographic And Customer Infor_3
Geographic And Customer Information (Narrative) (Details) - customer | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Net Revenue [Member] | One Customer [Member] | |||
Revenue, Major Customer [Line Items] | |||
Number of customers | 1 | 1 | 1 |
Percentage of risk | 63.00% | 60.00% | 57.00% |
Accounts Receivable [Member] | Two Customers [Member] | |||
Revenue, Major Customer [Line Items] | |||
Number of customers | 2 | 2 | |
Percentage of risk | 69.00% | 51.00% | |
Contract Assets [Member] | One Customer [Member] | |||
Revenue, Major Customer [Line Items] | |||
Number of customers | 2 | 1 | |
Percentage of risk | 86.00% |
Geographic And Customer Infor_4
Geographic And Customer Information (Geographical Distribution Of Long-Lived Assets, Net) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Consolidated | $ 14,177 | $ 13,551 |
United States [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Consolidated | 12,539 | 12,215 |
Singapore [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Consolidated | 1,460 | 1,263 |
Other Geographical [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Consolidated | $ 178 | $ 73 |
Geographic And Customer Infor_5
Geographic And Customer Information (Geographical Distribution Of Net Revenue) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue, net | $ 102,773 | [1] | $ 113,493 | $ 113,948 |
United States [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue, net | 75,325 | 94,530 | 96,822 | |
Europe [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue, net | 5,501 | 5,611 | 5,846 | |
Asia [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue, net | 11,476 | 9,374 | 10,009 | |
All Other Countries [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue, net | $ 10,470 | $ 3,978 | $ 1,271 | |
[1] | During the quarter ended March 31, 2020, we recorded a cumulative adjustment of $ 1.2 million to reduce revenue within our other medical market to correct an error related to prior periods as a result of our determination that a portion of our sales being recognized over time needed to be recognized at a point in time. The adjustment included a reduction of the related cost of goods sold of $ 0.8 million and related impacts to reduce the contract asset and an increase to inventory. The adjustment was not material to our Consolidated Financial Statements for any quarterly or annual period. |
Goodwill (Narrative) (Details)
Goodwill (Narrative) (Details) - USD ($) | 6 Months Ended | 12 Months Ended | ||||
Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | May 18, 2020 | |
Goodwill [Line Items] | ||||||
Goodwill | $ 9,551,000 | $ 13,714,000 | $ 9,551,000 | $ 10,808,000 | $ 4,163,000 | |
Goodwill impairment | $ 0 | $ 1,257,000 | $ 0 | $ 1,257,000 | $ 0 | |
Hearing Help Express (HHE) [Member] | ||||||
Goodwill [Line Items] | ||||||
Goodwill impairment | $ 1,257,000 | |||||
Emerald Medical Services Pte., Ltd [Member] | ||||||
Goodwill [Line Items] | ||||||
Goodwill | $ 4,041,000 |
Goodwill (Schedule Of Goodwill)
Goodwill (Schedule Of Goodwill) (Details) - USD ($) | 6 Months Ended | 12 Months Ended | |||
Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Intangible Assets [Abstract] | |||||
Carrying amount, Beginning Balance | $ 10,808,000 | $ 9,551,000 | $ 10,808,000 | ||
Impairment of goodwill of Hearing Help Express | $ 0 | $ (1,257,000) | 0 | (1,257,000) | $ 0 |
Acquisition of Emerald Medical Services | 4,163,000 | ||||
Carrying amount, Ending Balance | $ 9,551,000 | $ 13,714,000 | $ 9,551,000 | $ 10,808,000 |
Intangible Assets (Narrative) (
Intangible Assets (Narrative) (Details) - USD ($) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | May 18, 2020 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets impairment | $ 2,508,000 | $ 0 | $ 2,508,000 | |
Intangible assets | $ 6,400,000 | |||
Customer List [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Acquired finite-lived intangible assets amortization period | 8 years | |||
Self-Fitting Software [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Acquired finite-lived intangible assets amortization period | 5 years | |||
Technology Access [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Acquired finite-lived intangible assets amortization period | 7 years | |||
Emerald Medical Services Pte., Ltd [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Acquired finite-lived intangible assets amortization period | 8 years | |||
Intangible assets | $ 6,400,000 |
Intangible Assets (Changes In C
Intangible Assets (Changes In Carrying Amount Of Intangible Assets) (Details) - USD ($) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Intangible Assets [Abstract] | |||
Intangible assets, Beginning Balance | $ 4,844,000 | $ 5,545,000 | $ 4,844,000 |
Acquisition of intangible assets | 6,400,000 | 3,679,000 | |
Additional self-fitting software costs | 296,000 | ||
Amortization of intangible assets | (1,456,000) | (470,000) | |
Impairment of intangible assets of Hearing Help Express | $ (2,508,000) | 0 | (2,508,000) |
Intangible assets, Ending Balance | $ 10,785,000 | $ 5,545,000 |
Intangible Assets (Summary Of I
Intangible Assets (Summary Of Intangible Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 13,125 | $ 6,429 | |
Accumulated Amortization | (2,340) | (884) | |
Net Carrying Amount | 10,785 | 5,545 | $ 4,844 |
Customer List [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 6,400 | ||
Accumulated Amortization | (467) | ||
Net Carrying Amount | 5,933 | ||
Self-Fitting Software [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 3,975 | 3,679 | |
Accumulated Amortization | (596) | ||
Net Carrying Amount | 3,379 | 3,679 | |
Technology Access [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 2,750 | 2,750 | |
Accumulated Amortization | (1,277) | (884) | |
Net Carrying Amount | $ 1,473 | $ 1,866 |
Investment In Partnerships (Nar
Investment In Partnerships (Narrative) (Details) | Dec. 31, 2020 | Dec. 31, 2019 |
Signison [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method, ownership interest | 50.00% | 50.00% |
Investment In Partnerships (Inv
Investment In Partnerships (Investments in Partnerships) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule of Equity Method Investments [Line Items] | ||
Total | $ 570 | $ 1,160 |
Signison [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Total | 418 | 852 |
Other Investment [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Total | $ 152 | $ 308 |
Investment Securities (Narrativ
Investment Securities (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Cash and Cash Equivalents [Line Items] | ||
Amortization related to discounts on investment securities | $ 51 | $ 221 |
Level 1 [Member] | ||
Cash and Cash Equivalents [Line Items] | ||
Cash | $ 6,697 | $ 7,200 |
Investment Securities (Summary
Investment Securities (Summary Of Maturity Dates Of Investments) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Less than one year | $ 19,793 | $ 23,451 |
1-5 years | 5,085 | 8,629 |
Total | 24,878 | 32,080 |
Commercial Paper Original Maturities of 91 Days or More [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Less than one year | 7,490 | 8,461 |
Total | 7,490 | 8,461 |
Corporate Notes And Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Less than one year | 12,303 | 14,990 |
1-5 years | 5,085 | 8,629 |
Total | $ 17,388 | $ 23,619 |
Inventories (Schedule Of Invent
Inventories (Schedule Of Inventories) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Inventory [Line Items] | ||
Raw materials | $ 14,764 | $ 12,861 |
Work-in process | 2,467 | 951 |
Finished products and components | 2,282 | 2,565 |
Total | 19,513 | 16,377 |
Domestic [Member] | ||
Inventory [Line Items] | ||
Raw materials | 11,371 | 10,379 |
Work-in process | 1,499 | 736 |
Finished products and components | 2,149 | 2,375 |
Total | 15,019 | 13,490 |
Foreign [Member] | ||
Inventory [Line Items] | ||
Raw materials | 3,393 | 2,482 |
Work-in process | 968 | 215 |
Finished products and components | 133 | 190 |
Total | $ 4,494 | $ 2,887 |
Other Accrued Liabilities (Narr
Other Accrued Liabilities (Narrative) (Details) € in Thousands, $ in Thousands | 1 Months Ended | |
Jan. 31, 2019EUR (€) | Dec. 31, 2020USD ($) | |
Other Accrued Current Liabilities [Member] | ||
Other Accrued Liabilities [Line Items] | ||
Software Purchase, Outstanding Liabilities | $ 264 | |
Other Long Term Liabilities [Member] | ||
Other Accrued Liabilities [Line Items] | ||
Software Purchase, Outstanding Liabilities | $ 792 | |
Soundperience [Member] | ||
Other Accrued Liabilities [Line Items] | ||
Payments for Software | € | € 1,829 | |
Percent Of Ownership Interest Transferred | 49.00% |
Other Accrued Liabilities (Comp
Other Accrued Liabilities (Components Of Other Accrued Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Other Accrued Liabilities [Abstract] | ||
Pension | $ 120 | $ 120 |
Postretirement benefit obligation | 68 | 71 |
Deferred revenue | 184 | 327 |
Current self-fitting software liability | 264 | 285 |
Current technology access liability | 742 | 1,236 |
Current earn-out contingent consideration liability | 1,090 | |
Customer funded projects | 759 | |
Other | 1,008 | 830 |
Total | $ 4,235 | $ 2,869 |
Other Long-Term Liabilities (Sc
Other Long-Term Liabilities (Schedule Of Other Long-Term Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Other Long-Term Liabilities [Abstract] | ||
Noncurrent self-fitting software liability | $ 792 | $ 922 |
Noncurrent technology access liability | 247 | 989 |
Noncurrent earn-out contingent consideration liability | 2,484 | |
Other | 875 | 260 |
Total | $ 4,398 | $ 2,171 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020USD ($)item | Dec. 31, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | ||
Finance Lease, Weighted Average Discount Rate, Percent | 5.56% | 5.56% |
Finance Lease, Weighted Average Remaining Lease Term | 9 months 18 days | 1 year 4 months 24 days |
Operating Lease, Weighted Average Discount Rate, Percent | 5.06% | 5.25% |
Operating Lease, Weighted Average Remaining Lease Term | 3 years 9 months 18 days | 3 years 1 month 6 days |
Incremental borrowing rates terms, discount rates | 5 years | |
Operating Lease, Payments | $ | $ 1,950 | $ 1,898 |
Restructuring Charges | $ | 1,171 | |
ROU asset | $ | 6,701 | $ 4,372 |
Lease liability | $ | $ 6,882 | |
Minnesota [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Number of leased facilities | 3 | |
California [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Number of leased facilities | 1 | |
Illinois [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Number of leased facilities | 1 | |
Singapore [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Number of leased facilities | 1 | |
Indonesia [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Number of leased facilities | 1 | |
ROU asset | $ | $ 103 | |
Lease liability | $ | $ 72 | |
Germany [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Number of leased facilities | 1 | |
Lease Expiration In 2022 [Member] | Minnesota [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Number of leased facilities | 2 | |
Lease Expiration In 2023 [Member] | Minnesota [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Number of leased facilities | 1 | |
Minimum [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Lessee, Operating Lease, Term of Contract | 1 year | |
Lessee, Operating Lease, Renewal Term | 1 year | |
Maximum [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Lessee, Operating Lease, Renewal Term | 5 years | |
Lease Modification Costs [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Restructuring Charges | $ | $ 326 | |
Percent of square footage reduced | 65.00% |
Leases (Summary Of Lease Costs
Leases (Summary Of Lease Costs By Type) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Leases [Abstract] | |||
Amortization of right-of-use assets | $ 88 | $ 103 | |
Interest on lease liabilities | 3 | 10 | |
Operating lease cost | 1,926 | 1,862 | |
Variable lease cost | [1] | 611 | 564 |
Total lease cost | $ 2,628 | $ 2,539 | |
[1] | Variable lease costs consists primarily of taxes, insurance, and common area or other maintenance costs for our domestic and foreign building leases. |
Leases (Maturities Of Lease Lia
Leases (Maturities Of Lease Liabilities) (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Leases [Abstract] | |
Operating Leases, 2021 | $ 2,449 |
Operating Leases, 2022 | 1,959 |
Operating Leases, 2023 | 1,358 |
Operating Leases, 2024 | 1,035 |
Operating Leases, 2025 and thereafter | 785 |
Operating Leases, Total lease payments | 7,587 |
Operating Leases, Less: Interest | (705) |
Operating Leases, Present value of lease liabilities | 6,882 |
Financing Leases, 2021 | 24 |
Financing Leases, 2022 | 3 |
Financing Leases, Total lease payments | 27 |
Financing Leases, Less: Interest | (6) |
Financing Leases, Present value of lease liabilities | $ 21 |
Domestic And Foreign Income T_3
Domestic And Foreign Income Taxes (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating Loss Carryforwards [Line Items] | |||
Change in valuation allowance | $ (790,000) | $ (440,000) | $ (3,384,000) |
Recorded unrecognized income tax benefits | 0 | 0 | 0 |
Unrecognized tax benefits | 0 | 0 | $ 0 |
Income Tax Examination, Penalties and Interest Accrued | 0 | $ 0 | |
CARES Act, retention tax credit | 5,000 | ||
United States IRS [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryforward | 34,536,000 | ||
State [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryforward | $ 16,646,000 |
Domestic And Foreign Income T_4
Domestic And Foreign Income Taxes (Domestic And Foreign Income Taxes (Benefits)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Domestic And Foreign Income Taxes [Abstract] | |||
Current, Federal | $ (74) | $ 24 | |
Current, State | 10 | ||
Current, Foreign | 157 | 173 | $ 227 |
Total Current | 93 | 197 | 227 |
Deferred, Federal | 74 | 12 | |
Deferred, State | |||
Deferred, Foreign | (106) | 4 | 245 |
Total Deferred | (32) | 4 | 257 |
Income Tax Expense | 61 | 201 | 484 |
Foreign | (255) | 360 | 1,258 |
Domestic | (2,173) | (2,223) | 5,988 |
(Loss) income from continuing operations before income taxes and discontinued operations | $ (2,428) | $ (1,863) | $ 7,246 |
Domestic And Foreign Income T_5
Domestic And Foreign Income Taxes (Schedule Of Reconciliation Of The Statutory Federal Income Tax Rate To The Effective Tax Rate Based On Income (Loss)) (Details) | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | [1] | |
Domestic And Foreign Income Taxes [Abstract] | ||||
Tax provision at statutory rate | 21.00% | 21.00% | 21.00% | |
Change in valuation allowance | (27.60%) | (23.60%) | 43.40% | |
Impact of permanent items, including stock based compensation expense and impairment loss | 11.00% | (0.30%) | (52.70%) | |
Effect of foreign tax rates | (0.80%) | 0.30% | 0.50% | |
State taxes net of federal benefit | (3.90%) | (1.00%) | 0.10% | |
Prior year provision to return true-up | (3.20%) | (5.80%) | (5.60%) | |
Non-controlling interest | 1.00% | (0.70%) | 0.20% | |
Other | (0.00%) | (0.80%) | (0.20%) | |
Domestic and foreign income tax rate | (2.50%) | (10.80%) | 6.70% | |
[1] | Historical effective tax rates have been adjusted due to discontinued operations. Please refer to Note 4 for further information. |
Domestic And Foreign Income T_6
Domestic And Foreign Income Taxes (Schedule Of Deferred Tax Assets And Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Domestic And Foreign Income Taxes [Abstract] | ||
Net operating loss carry forwards | $ 8,486 | $ 7,749 |
Inventory | 548 | 509 |
Compensation accruals | 1,161 | 960 |
Accruals and reserves | 92 | 109 |
Credits | 235 | 308 |
Contract assets | 1,573 | 1,489 |
Other | 134 | 175 |
Total Deferred tax assets | 12,229 | 11,299 |
Less: valuation allowance | (11,395) | (10,605) |
Deferred tax assets net of valuation allowance | 834 | 694 |
Depreciation and amortization | (844) | (689) |
Intangible intangibles | (1,008) | |
Total deferred tax liabilities | (1,852) | (689) |
Net deferred tax | $ 5 | |
Net deferred tax | $ (1,018) |
Employee Benefit Plans (Narrati
Employee Benefit Plans (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Company plan contributions | $ 531 | $ 700 | $ 569 |
Unrecognized prior service cost reduction | $ 1,100 | ||
Assumed health care cost trend rate | 5.50% | ||
Ultimate health care cost trend rate | 4.60% | ||
Year that plan rate reaches ultimate health care cost trend rate | 2066 | ||
Actuarial losses | $ 238 | ||
Discount rate used to determine year-end expense | 3.50% | 3.90% | 3.30% |
Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate used to determine year-end expense | 1.50% | 4.00% |
Employee Benefit Plans (Schedul
Employee Benefit Plans (Schedule Of Amounts Recognized In Consolidated Balance Sheets) (Details) - Postretirement Medical Benefits [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Change in Projected Benefit Obligation: | ||
Projected benefit obligation at January 1 | $ 453 | $ 450 |
Interest cost | 15 | 16 |
Actuarial loss | 55 | 63 |
Participant contributions | 10 | 10 |
Benefits paid | (80) | (86) |
Projected benefit obligation at December 31 | 453 | 453 |
Change in fair value of plan assets: | ||
Employer contributions | 70 | 76 |
Participant contributions | 10 | 10 |
Benefits paid | (80) | (86) |
Funded status | (453) | (453) |
Current liabilities | 71 | 71 |
Noncurrent liabilities | 382 | 382 |
Net amount recognized | 453 | 453 |
Amount recognized in other comprehensive income (loss) | 76 | 37 |
Amount recognized in the consolidated statement of operations | 377 | 416 |
Total | $ 453 | $ 453 |
Employee Benefit Plans (Sched_2
Employee Benefit Plans (Schedule Of Assumptions Used) (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Employee Benefit Plans [Abstract] | |||
Annual increase in cost of benefits | 5.50% | 5.60% | 5.70% |
Discount rate used to determine year-end obligations | 1.50% | 3.50% | 3.90% |
Discount rate used to determine year-end expense | 3.50% | 3.90% | 3.30% |
Employee Benefit Plans (Sched_3
Employee Benefit Plans (Schedule Of Liabilities Recorded) (Details) - Other Postretirement Benefit Plans, Defined Benefit [Member] - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Defined Benefit Plan Disclosure [Line Items] | ||
Current portion | $ 120 | $ 120 |
Long-term portion | 907 | 655 |
Total liability at December 31 | $ 1,027 | $ 775 |
Employee Benefit Plans (Sched_4
Employee Benefit Plans (Schedule Of Expected Benefit Payments) (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Employee Benefit Plans [Abstract] | |
2021 | $ 188 |
2022 | 171 |
2023 | 155 |
2024 | 139 |
2025 | 124 |
Years 2026 and beyond | $ 703 |
Currency Translation And Tran_2
Currency Translation And Transaction Adjustments (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Currency Translation And Transaction Adjustments [Abstract] | |||
Foreign currency transaction losses | $ 131 | $ 48 | $ 64 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net (loss) income | $ (2,524) | $ (3,777) | $ 5,547 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net (loss) income | $ 20 | $ 417 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Classification Included Within AOCI On The Consolidated Balance Sheets) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Total | $ 91,199 | $ 90,492 | $ 91,974 | $ 21,439 |
Foreign Currency Translation [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Total | (344) | (403) | ||
Pension And Postretirement Obligations [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Total | (335) | (117) | ||
Accumulated Other Comprehensive Loss [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Total | $ (679) | $ (520) | $ (927) | $ (733) |
Common Stock And Stock Awards_2
Common Stock And Stock Awards (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | Aug. 20, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Aggregate number of shares of common stock for which awards can be granted | 73,000 | |||
Increase in maximum number of shares approved | 500 | |||
Number of Shares, Awards granted | 146,000 | 79,000 | 98,000 | |
Weighted average remaining contractual life of options exercisable, years | 4 years | |||
Total intrinsic value of options exercised | $ 514 | $ 1,627 | $ 25,724 | |
Stock compensation expense | 2,382 | $ 1,886 | 1,395 | |
Cumulative non-cash stock compensation expense adjustment | 422 | |||
Unrecognized compensation costs related to non-vested awards | $ 1,650 | |||
Unrecognized compensation costs related to non-vested awards, recognition period | 1 year 11 months 12 days | |||
Issuance of common stock | $ 88,967 | $ 88,967 | ||
Issuance of common stock, shares | 1,725,000 | |||
Price per share | $ 55 | |||
Underwriting discount, per share | $ 3.30 | |||
Shares repurchased | 500,000 | |||
2006 Equity Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Aggregate number of shares of common stock for which awards can be granted | 325,000 | |||
Employee Stock Purchase Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Maximum number of shares approved under purchase plan | 300,000 | |||
Shares purchased for award | 16,000 | 9,000 | 7,000 | |
Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of Shares, Awards granted | 0 | 0 | 0 | |
Stock Options [Member] | Minimum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
Stock Options [Member] | Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 10 years | |||
Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of Shares, Awards granted | 146,000 | 79,000 | 98,000 | |
Vesting period | 3 years | |||
Weighted average fair value of units granted | $ 14.92 | $ 23.83 |
Common Stock And Stock Awards_3
Common Stock And Stock Awards (Summary Of Stock Option Activity) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Shares, Outstanding | 874,000 | 928,000 | 1,438,000 |
Number of Shares, Options forfeited, cancelled or expired | (6,000) | (4,000) | (8,000) |
Number of Shares, Awards granted | 146,000 | 79,000 | 98,000 |
Number of Shares, Awards exercised or released | (107,000) | (129,000) | (600,000) |
Number of Shares, Outstanding | 907,000 | 874,000 | 928,000 |
Weighted-average Exercise Price, Outstanding | $ 6.39 | $ 6.25 | $ 6 |
Weighted-average Exercise Price, Awards forfeited, cancelled or expired | 5.72 | 6.42 | 7.20 |
Weighted-average Exercise Price, Awards exercised or released | 4.88 | 4.91 | 5.65 |
Weighted-average Exercise Price, Outstanding | $ 6.51 | $ 6.39 | $ 6.25 |
Aggregate Intrinsic Value, Outstanding | $ 11,929 | ||
Number of Shares, Exercisable | 690,000 | 668,000 | |
Weighted-average Exercise Price, Exercisable | $ 6.51 | $ 6.30 | |
Aggregate Intrinsic Value, Exercisable | $ 7,997 | $ 7,819 | |
Number of Shares, Available for future grant | 73,000 | ||
Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Shares, Outstanding | 746,000 | 830,000 | 1,438,000 |
Number of Shares, Options forfeited, cancelled or expired | (1,000) | (3,000) | (8,000) |
Number of Shares, Awards granted | 0 | 0 | 0 |
Number of Shares, Awards exercised or released | (55,000) | (81,000) | (600,000) |
Number of Shares, Outstanding | 690,000 | 746,000 | 830,000 |
Number of Shares, Exercisable | 690,000 | 668,000 | |
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Shares, Outstanding | 128,000 | 98,000 | |
Number of Shares, Options forfeited, cancelled or expired | (5,000) | (1,000) | |
Number of Shares, Awards granted | 146,000 | 79,000 | 98,000 |
Number of Shares, Awards exercised or released | (52,000) | (48,000) | |
Number of Shares, Outstanding | 217,000 | 128,000 | 98,000 |
(Loss) Income Per Share (Narrat
(Loss) Income Per Share (Narrative) (Details) shares in Thousands | 12 Months Ended |
Dec. 31, 2018shares | |
Stock Options [Member] | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Securities excluded from computation of diluted income per share | 5 |
(Loss) Income Per Share (Reconc
(Loss) Income Per Share (Reconciliation Between Basic And Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
(Loss) Income Per Share [Abstract] | |||
(Loss) income from continuing operations before discontinued operations | $ (2,489) | $ (2,064) | $ 6,762 |
Loss from discontinued operations (Note 4) | (1,713) | (1,215) | |
Less: Income allocated to non-controlling interest | (35) | ||
Net (loss) income attributable to Intricon shareholders | $ (2,524) | $ (3,777) | $ 5,547 |
Basic - weighted shares outstanding | 8,894 | 8,748 | 7,599 |
Dilutive effect from stock awards | 1,031 | ||
Diluted - weighted shares outstanding | 8,894 | 8,748 | 8,630 |
Continuing operations | $ (0.28) | $ (0.23) | $ 0.89 |
Discontinued operations | (0.20) | (0.16) | |
Net (loss) income per share: | (0.28) | (0.43) | 0.73 |
Continuing operations | (0.28) | (0.23) | 0.78 |
Discontinued operations | (0.20) | (0.14) | |
Net (loss) income per share: | $ (0.28) | $ (0.43) | $ 0.64 |
Contingencies And Commitments (
Contingencies And Commitments (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Other Accrued Liabilities [Member] | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |
Estimated future claims | $ 129,000 |
Other Long Term Liabilities [Member] | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |
Estimated future claims | 721,000 |
Other Current Assets [Member] | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |
Insurance receivable | 129,000 |
Other Assets [Member] | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |
Insurance receivable | 721,000 |
Maximum [Member] | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |
Potential exposure, per call | 1,500 |
Minimum [Member] | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |
Potential exposure, per call | $ 500 |
Related-Party Transactions (Nar
Related-Party Transactions (Narrative) (Details) - USD ($) shares in Thousands, $ in Thousands | Aug. 20, 2018 | Dec. 31, 2019 | Dec. 31, 2018 |
Related-Party Transactions [Abstract] | |||
Legal services and costs | $ 234 | $ 498 | |
Proceeds from equity offering used for repurchase of shares | $ 25,850 | ||
Shares repurchased | 500 |
Supplemental Disclosure Of Ca_3
Supplemental Disclosure Of Cash Flows (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Supplemental Disclosure Of Cash Flows [Abstract] | |||
Property, plant and equipment purchases that remain in accounts payable | $ 154 | $ 61 | $ 1,030 |
Supplemental Disclosure Of Ca_4
Supplemental Disclosure Of Cash Flows (Supplemental Disclosures Of Cash Flow Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Supplemental Disclosure Of Cash Flows [Abstract] | |||
Interest received | $ 425 | $ 1,069 | $ 381 |
Interest paid | 77 | 72 | 680 |
Income taxes received | 40 | 73 | |
Income taxes paid | 107 | 148 | 190 |
Acquisition of a business through contingent consideration liabilities incurred | 3,705 | ||
Acquisition of a business through issuance of common stock | 982 | ||
Investment in partnerships | $ 442 | ||
Self-fitting software acquired through liabilities incurred and exchange of investment in partnership | $ 3,093 | ||
Technology access liability | $ (375) |
Revenue By Market (Schedule Of
Revenue By Market (Schedule Of Net Revenue By Market) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Revenue, Major Customer [Line Items] | ||||
Total Net Revenue | $ 102,773 | [1] | $ 113,493 | $ 113,948 |
Products And Services Transferred At Point In Time [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Total Net Revenue | 37,774 | [1] | 31,400 | 38,303 |
Products And Services Transferred Over Time [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Total Net Revenue | 64,999 | [1] | 82,093 | 75,645 |
Diabetes [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Total Net Revenue | 59,311 | 68,606 | 65,197 | |
Other Medical [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Total Net Revenue | 19,726 | 13,487 | 10,448 | |
Hearing Health Value Based DTEC [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Total Net Revenue | 4,430 | 6,120 | 6,858 | |
Hearing Health Value Based ITEC [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Total Net Revenue | 5,558 | 8,910 | 11,949 | |
Hearing Health Legacy OEM [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Total Net Revenue | 8,968 | 9,892 | 12,257 | |
Professional Audio Communications [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Total Net Revenue | $ 4,780 | $ 6,478 | $ 7,239 | |
[1] | During the quarter ended March 31, 2020, we recorded a cumulative adjustment of $ 1.2 million to reduce revenue within our other medical market to correct an error related to prior periods as a result of our determination that a portion of our sales being recognized over time needed to be recognized at a point in time. The adjustment included a reduction of the related cost of goods sold of $ 0.8 million and related impacts to reduce the contract asset and an increase to inventory. The adjustment was not material to our Consolidated Financial Statements for any quarterly or annual period. |
Revenue By Market (Timing Of Re
Revenue By Market (Timing Of Revenue Recognition) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Disaggregation of Revenue [Line Items] | |||||
Total Net Revenue | $ 102,773 | [1] | $ 113,493 | $ 113,948 | |
Cost of goods sold | 76,598 | 82,507 | 77,717 | ||
Cumulative Effect, Period of Adoption, Adjustment [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Total Net Revenue | $ (1,200) | ||||
Cost of goods sold | $ (800) | ||||
Products And Services Transferred At Point In Time [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Total Net Revenue | 37,774 | [1] | 31,400 | 38,303 | |
Products And Services Transferred Over Time [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Total Net Revenue | $ 64,999 | [1] | $ 82,093 | $ 75,645 | |
[1] | During the quarter ended March 31, 2020, we recorded a cumulative adjustment of $ 1.2 million to reduce revenue within our other medical market to correct an error related to prior periods as a result of our determination that a portion of our sales being recognized over time needed to be recognized at a point in time. The adjustment included a reduction of the related cost of goods sold of $ 0.8 million and related impacts to reduce the contract asset and an increase to inventory. The adjustment was not material to our Consolidated Financial Statements for any quarterly or annual period. |