Servotronics (SVT) 10-Q 14 Aug 19 2019 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2019	Jul. 26, 2019
Document and Entity Information [Abstract]
Entity Registrant Name	SERVOTRONICS INC /DE/
Entity Central Index Key	0000089140
Trading Symbol	svt
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		2,489,732
Document Type	10-Q
Document Period End Date	Jun. 30, 2019
Amendment Flag	false
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q2
Entity Small Business	true
Entity Emerging Growth Company	false

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Current assets:
Cash	$ 1,849	$ 2,598
Accounts receivable, net	10,969	10,586
Inventories, net	16,934	15,150
Prepaid income taxes	210	314
Other current assets	537	496
Total current assets	30,499	29,144
Property, plant and equipment, net	12,664	11,875
Deferred income taxes	295	295
Other non-current assets	490	371
Total Assets	43,948	41,685
Current liabilities:
Current portion of long-term debt	548	548
Current portion of equipment financing lease obligations	175	175
Current portion of equipment note obligations	121
Dividend payable	421	13
Accounts payable	3,693	2,494
Accrued employee compensation and benefits costs	1,888	1,908
Other accrued liabilities	848	865
Total current liabilities	7,694	6,003
Long-term debt	2,529	2,410
Post retirement obligation	1,809	1,759
Shareholders' equity:
Common stock, par value $0.20; authorized 4,000,000 shares; issued 2,614,506 shares; outstanding 2,489,732 (2,392,207 - 2018) shares	523	523
Capital in excess of par value	14,298	14,250
Retained earnings	19,187	18,788
Accumulated other comprehensive income	35	35
Employee stock ownership trust commitment	(561)	(561)
Treasury stock, at cost 124,774 (117,979 - 2018) shares	(1,566)	(1,522)
Total shareholders' equity	31,916	31,513
Total Liabilities and Shareholders' Equity	$ 43,948	$ 41,685

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares	Jun. 30, 2019	Dec. 31, 2018
Statement Of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 0.20	$ 0.20
Common stock, shares authorized	4,000,000	4,000,000
Common stock, shares issued	2,614,506	2,614,506
Common stock, shares outstanding	2,489,732	2,392,207
Treasury stock, shares	124,774	117,979

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2018	Mar. 31, 2018	Jun. 30, 2019	Jun. 30, 2018
Income Statement [Abstract]
Revenue	$ 14,067		$ 11,946		$ 26,070	$ 22,505
Costs of goods sold, inclusive of depreciation and amortization	10,798		9,022		20,728	17,531
Gross margin	3,269		2,924		5,342	4,974
Operating Expenses:
Selling, general and administrative	2,375		2,013		4,302	3,641
Interest expense	30		27		57	52
Total operating expenses	2,405		2,040		4,359	3,693
Income before income tax provision	864		884		983	1,281
Income tax provision	150		177		171	243
Net Income	$ 714	$ 98	$ 707	$ 331	$ 812	$ 1,038
Basic
Net Income per share (in dollars per share)	$ 0.31		$ 0.31		$ 0.35	$ 0.46
Diluted
Net income per share (in dollars per share)	$ 0.30		$ 0.30		$ 0.34	$ 0.45

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Cash flows related to operating activities:
Net Income	$ 812	$ 1,038
Adjustments to reconcile net income to net cash provided (used) by operating activities:
Depreciation and amortization	563	502
Loss on disposal of property		1
Stock based compensation	153	85
Decrease in doubtful accounts	(26)
(Decrease)/Increase in inventory reserve	(4)	54
(Decrease)/Increase in warranty reserve	(8)	217
Change in assets and liabilities:
Accounts receivable	(357)	(1,536)
Inventories	(1,780)	(850)
Prepaid income taxes	104	(149)
Other current assets	(41)	(180)
Other non-current assets	6	6
Accounts payable	1,195	1,169
Accrued employee compensation and benefit costs	(20)	293
Other accrued liabilities	41	(473)
Accrued income taxes		(414)
Net cash provided (used) by operating activities	638	(237)
Cash flows related to investing activities:
Capital expenditures - property, plant and equipment	(1,140)	(984)
Note Receivable	(125)
Net cash used by investing activities	(1,265)	(984)
Cash flows related to financing activities:
Principal payments on long-term debt	(274)	(274)
Principal payments on equipment financing lease obligations	(87)	(73)
Proceeds from equipment note and equipment financing lease obligations	388	210
Purchase of treasury shares	(149)	(150)
Net cash used by financing activities	(122)	(287)
Net decrease in cash and cash equivalents	(749)	(1,508)
Cash at beginning of period	2,598	4,707
Cash at end of period	1,849	$ 3,199
Supplemental Cash Flow Information:
Equipment acquired through financing paid directly to vendor	$ 213

Basis of Presentation

Basis of Presentation	6 Months Ended
	Jun. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	1. Basis of Presentation The accompanying unaudited condensed consolidated financial statements (“consolidated financial statements”) have been prepared in accordance with United States generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by United States generally accepted accounting principles for complete financial statements. The accompanying consolidated financial statements reflect all adjustments which are, in the opinion of management, necessary for a fair statement of the results for the interim periods presented. All such adjustments are of a normal recurring nature. Operating results for the three and six months ended June 30, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019. The consolidated financial statements should be read in conjunction with the 2018 annual report and the notes thereto.

Business Description and Summar

Business Description and Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2019
Accounting Policies [Abstract]
Business Description and Summary of Significant Accounting Policies	2. Business Description and Summary of Significant Accounting Policies Business Description Servotronics, Inc. and its subsidiaries design, manufacture and market advanced technology products consisting primarily of control components, and consumer products consisting of knives and various types of cutlery and other edged products. Principles of Consolidation The consolidated financial statements include the accounts of Servotronics, Inc. and its wholly-owned subsidiaries (the “Company”). All intercompany balances and transactions have been eliminated upon consolidation. Cash The Company considers cash to include all currency and coins owned by the Company as well as all deposits in the bank including checking accounts and savings accounts. Accounts Receivable The Company grants credit to substantially all of its customers and carries its accounts receivable at original invoice amount less an allowance for doubtful accounts. On a periodic basis, the Company evaluates its accounts receivable and establishes an allowance for doubtful accounts based on history of past write-offs, collections, and current credit conditions. The allowance for doubtful accounts amounted to approximately $144,000 at June 30, 2019 and $170,000 at December 31, 2018. The Company does not accrue interest on past due receivables. Note Receivable There is a note receivable with a balance of $125,000 as of June 30, 2019 and recorded th Inventories Inventories are stated at the lower of cost or net realizable value. Cost includes all costs incurred to bring each product to its present location and condition. Market provisions in respect of lower of cost or market adjustments and inventory expected to be used in greater than two years are applied to the gross value of the inventory through a reserve of approximately $1,539,000 and $1,543,000 at June 30, 2019 and December 31, 2018, respectively. Pre-production and start-up costs are expensed as incurred. The purchase of suppliers’ minimum economic quantities of material such as steel, etc. may result in a purchase of quantities exceeding one year of customer requirements. Also, in order to maintain a reasonable and/or agreed to lead time, certain larger quantities of other product support items may have to be purchased and may result in over one year’s supply. These amounts are not included in the inventory reserve discussed above. Shipping and Handling Costs Shipping and handling costs are classified as a component of cost of goods sold. Property, Plant and Equipment Property, plant and equipment is carried at cost; expenditures for new facilities and equipment and expenditures which substantially increase the useful lives of existing plant and equipment are capitalized; expenditures for maintenance and repairs are expensed as incurred. Upon disposal of properties, the related cost and accumulated depreciation are removed from the respective accounts and any profit or loss on disposition is included in income. Depreciation is provided on the basis of estimated useful lives of depreciable properties, primarily by the straight-line method for financial statement purposes and by accelerated methods for income tax purposes. Depreciation expense includes the amortization of right-of-use (“ROU”) assets accounted for as finance leases. The estimated useful lives of depreciable properties are generally as follows: Buildings and improvements 5-40 years Machinery and equipment 5-20 years Tooling 3-5 years Income Taxes The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax basis of assets and liabilities, as well as operating loss and credit carryforwards. The Company and its subsidiaries file a consolidated federal income tax return, combined New York and Texas state income tax returns and separate Pennsylvania and Arkansas income tax returns. The Company’s practice is to recognize interest and/or penalties related to income tax matters in income tax expense. The Company did not have any accrued interest or penalties included in its consolidated balance sheets at June 30, 2019 or December 31, 2018, and did not recognize any interest and/or penalties in its consolidated statements of income during the three months ended June 30, 2019 and 2018. The Company did not have any material uncertain tax positions or unrecognized tax benefits or obligations as of June 30, 2019 and December 31, 2018. The 2015 through 2017 federal and state tax returns remain subject to examination. Supplemental Cash Flow Information Income taxes paid during the six months ended June 30, 2019 and 2018 amounted to approximately $0 and $775,000, respectively. Interest paid during the six months ended June 30, 2019 and 2018 amounted to approximately $ , respectively. Employee Stock Ownership Plan Contributions to the employee stock ownership plan are determined annually by the Company according to plan formula. Impairment of Long-Lived Assets The Company reviews long-lived assets for impairment annually or whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable based on undiscounted future operating cash flow analyses. If an impairment is determined to exist, any related impairment loss is calculated based on fair value. Due to the losses incurred by our CPG segment, we performed a test for recoverability of the long-lived assets by comparing its carrying value to the future undiscounted cash flows that we expect will be generated by the asset group. Impairment losses on assets to be disposed of, if any, are based on the estimated proceeds to be received, less costs of disposal. The Company has determined that no impairment of long-lived assets existed at June 30, 2019 and December 31, 2018. Use of Estimates The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Reclassifications Certain balances, as previously reported, were reclassified to conform to classifications adopted in the current period. Research and Development Costs Research and development costs are expensed as incurred. Concentration of Credit Risks Financial instruments that potentially subject the Company to concentration of credit risks principally consist of cash accounts in financial institutions. Although the accounts exceed the federally insured deposit amount, management does not anticipate nonperformance by the financial institutions. Fair Value of Financial Instruments The carrying amount of cash, accounts receivable, accounts payable and accrued expenses are reasonable estimates of their fair value due to their short maturity. Based on variable interest rates and the borrowing rates currently available to the Company for loans similar to its long-term debt, the fair value approximates its carrying amount. Revenue Recognition Revenues are recognized at the time of shipment of goods, transfer of title and customer acceptance, as required. Our revenue transactions generally consist of a single performance obligation to transfer contracted goods and are not accounted for under industry-specific guidance. Purchase orders generally include specific terms relative to quantity, item description, specifications, price, customer responsibility for in-process costs, delivery schedule, shipping point, payment and other standard terms and conditions of purchase. Service sales, principally representing repair, are recognized at the time of shipment of goods. The costs incurred for nonrecurring engineering, development and repair activities of our products under agreements with commercial customers are expensed as incurred. Subsequently, the revenue is recognized as products are delivered to the customers with the approval by the customers. Revenue is recognized at an amount that reflects the consideration to which the Company expects to be entitled in exchange for transferring goods and services to a customer. The Company determines revenue recognition using the following five steps: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when the company satisfies a performance obligation. Revenue excludes taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction and collected by the Company from a customer (e.g., sales and use taxes). Revenue includes payments for shipping activities that are reimbursed by the customer to the Company. Performance obligations are satisfied as of a point in time. Performance obligations are supported by contracts with customers, providing a framework for the nature of the distinct goods, services or bundle of goods and services. The timing of satisfying the performance obligation is typically indicated by the terms of the contract. As a significant portion of the Company’s revenue are recognized at the time of shipment, transfer of title and customer acceptance, there is no significant judgment applied to determine the timing of the satisfaction of performance obligations or transaction price. The timing of satisfaction of our performance obligations does not significantly vary from the typical timing of payment. The Company generally receives payment for these contracts within the payment terms negotiated and agreed upon by each customer contract. Warranty and repair obligations are assessed on all returns. Revenue is not recorded on any warranty returns. The Company warrants its products against design, materials and workmanship based on an average of twenty-seven months. The Company determines warranty reserves needed based on actual average costs of warranty units shipped and current facts and circumstances. As of June 30, 2019 and December 31, 2018 under the guidance of ASC460 the Company has recorded a warranty reserve of approximately $420,000 and $428,000, respectively. This amount is reflected in other accrued expenses in the accompanying balance sheet. Revenue is recognized on repair returns, covered under a customer contract, at the contractual price upon shipment to the customer. Recent Accounting Pronouncements Adopted In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” The new standard requires a lessee to record on the balance sheet the assets and liabilities for the rights and obligations created by leases with lease terms of more than 12 months and requires both lessees and lessors to disclose certain key information about lease transactions. The standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company adopted this standard during the first quarter of 2019. The adoption of this guidance did not have a material impact on the Company’s financial statements and related disclosures. The Company has four pieces of equipment financed through a lease line of credit and have recognized a lease liability and a ROU asset for each piece of equipment. Finance lease assets are included in property, plant, and equipment, and liabilities are included in short-term and long-term debt. Accounting for finance leases is substantially unchanged. The Company has evaluated our list of suppliers to determine if any other contract contains a lease. The Company has one other lease of equipment at an annual payment of less than $2,000. Rather than account for this as a financing lease, the piece of equipment will be purchased. At the inception of a new contract, the Company will determine if a contract contains a lease.

Inventories

Inventories	6 Months Ended
	Jun. 30, 2019
Inventory Disclosure [Abstract]
Inventories	3. Inventories June 30, December 31, 2019 2018 ($000's omitted) Raw material and common parts $ 10,688 $ 9,088 Work-in-process 6,440 5,123 Finished goods 1,345 2,482 18,473 16,693 Less inventory reserve (1,539 ) (1,543 ) Total inventories $ 16,934 $ 15,150

Property, Plant and Equipment

Property, Plant and Equipment	6 Months Ended
	Jun. 30, 2019
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment	4. Property, Plant and Equipment June 30, December 31, 2019 2018 ($000's omitted) Land $ 7 $ 7 Buildings 10,563 10,452 Machinery, equipment and tooling 19,348 18,345 Construction in progress 1,490 1,258 31,408 30,062 Less accumulated depreciation and amortization (18,744 ) (18,187 ) Total property, plant and equipment $ 12,664 $ 11,875 Depreciation and amortization expense amounted to approximately $289,000 and $ for the three months ended June 30, 2019 and 2018, respectively. Amortization expense primarily related to ROU assets amounted to approximately $21,000 and $20,000 for the three months ended June 30, 2019 and 2018, respectively. Depreciation and amortization expense amounted to approximately $563,000 and $502,000 for the six months ended June 30, 2019 and 2018, respectively. Amortization expense, primarily related to ROU assets, amounted to approximately $41,000 and $37,000 for the six months ended June 30, 2019 and 2018, respectively. The Company maintains property and casualty insurance in amounts adequate for the risk and nature of its assets and operations and which are generally customary in its industry. As of June 30, 2019, there is approximately $1,490,000 ($1,258,000 – December 31, 2018) of construction in progress (CIP) included in property, plant and equipment all of which is related to capital projects. There is approximately $683,000 in CIP for the implementation costs for the enterprise resource planning software that will be used as an integral part of the product process at the Advanced Technology Group (“ATG”) and the Consumer Products Group (“CPG”) put into service on July 5, 2019. In addition, there is approximately $392,000 primarily for IT equipment and software and the remainder of approximately $415,000 for machinery & equipment and self-constructed assets, not yet put into service.

Long-Term Debt

Long-Term Debt	6 Months Ended
	Jun. 30, 2019
Debt Disclosure [Abstract]
Long-Term Debt	5. Long-Term Debt June 30, December 31, 2019 2018 ($000's omitted) Term loan payable to a financial institution; Interest rate option of bank prime or Libor plus 1.4% (3.840% as of June 30, 2019), monthly prinicipal payments of $21,833 through 2021 with a balloon payment of $786,000 due December 1, 2021 $ 1,441 $ 1,572 Term loan payable to a financial institution; Interest rate option of bank prime or Libor plus 1.4% (3.840% as of June 30, 2019), monthly prinicipal payments of $23,810 through December 1, 2021 714 857 Equipment financing lease obligations; Interest rate fixed for term of each funding based upon the Lender's lease pricing at time of funding. (Interest rate/factor 1.822758% - 1.869304% at time of funding) 617 704 Equipment note obligations; Interest rate fixed for term of each funding based upon the Lender's pricing at time of funding. (Interest rate/factor 3.3943% - 3.8527% at time of funding) 601 - 3,373 3,133 Less current portion (844 ) (723 ) $ 2,529 $ 2,410 Principal maturities of long-term debt are as follows: remainder 2019 - $422,000, 2020 - $844,000, 2021 - $1,630,000, 2022 - $282,000, 2023 - $135,000 and 2024 - $60,000. The Company has a $4,000,000 line of credit. The interest rate is a rate per year equal to the bank’s prime rate or Libor plus 1.4%. In addition, effective June 17, 2019, the Company is required to pay a commitment fee of 0.15% on the unused portion of the line of credit. The line of credit expires June 19, 2021. There was no balance outstanding at June 30, 2019 and December 31, 2018. The term loans and line of credit are secured by all personal property of the Company with the exception of certain equipment that was purchased from proceeds of government grants. Certain lenders require the Company to comply with debt covenants as described in the specific loan documents, including a debt service ratio. At June 30, 2019 and December 31, 2018 the Company was in compliance with these covenants. The Company established a lease line of credit for equipment financing in the amount of $1,000,000 available until June 28, 2018. This line is non-revolving and non-renewable. The lease term for equipment covered by the lease line of credit is 60 months. Monthly payments will be fixed for the term of each funding based upon the Lender’s lease pricing in effect at the time of such funding. There was approximately $617,000 outstanding at June 30, 2019 and $704,000 at December 31, 2018. The Company has an equipment loan facility in the amount of $2,500,000 available until November 30, 2019. This line is non-revolving and non-renewable. The loan term for the equipment covered by the agreement is 60 months. Monthly payments will be fixed for the term of each funding based upon the Lender’s lease pricing in effect at the time of such funding. There was approximately $601,000 outstanding at June 30, 2019 and no balance outstanding at December 31, 2018. Principal and interest payments for the equipment note and equipment financing lease obligations for the remainder of 2019 and for each of the next five years: June 30, December 31, Year 2019 2018 ($000's omitted) 2019 165 193 2020 330 193 2021 330 193 2022 330 193 2023 141 4 2024 68 - Total principal and interest payments 1,364 776 Less amount representing interest (146 ) (72 ) Present value of net minimum lease payments 1,218 704 Less current portion (296 ) (175 ) Long term principle payments $ 922 $ 529

Shareholders' Equity

Shareholders' Equity	6 Months Ended
	Jun. 30, 2019
Equity [Abstract]
Shareholders' Equity	6. Shareholders’ Equity Six-month Period Ended June 30, 2019 Accumulated Other Capital in Total Retained Comprehensive Common excess of Treasury shareholders' Earnings Income Stock par value ESOT stock equity January 1, 2019 $ 18,788 $ 35 $ 523 $ 14,250 $ (561 ) $ (1,522 ) $ 31,513 Purchase of treasury shares - - - - - (128 ) (128 ) Stock based compensation - - - 14 - 44 58 Net Income 98 - - - - - 98 March 31, 2019 $ 18,886 $ 35 $ 523 $ 14,264 $ (561 ) $ (1,606 ) $ 31,541 Dividends declared ($0.16 per share) (413 ) - - - - - (413 ) Purchase of treasury shares - - - - - (21 ) (21 ) Stock based compensation - - - 34 - 61 95 Net Income 714 - - - - - 714 June 30, 2019 $ 19,187 $ 35 $ 523 $ 14,298 $ (561 ) $ (1,566 ) $ 31,916 Six-month Period Ended June 30, 2018 Accumulated Other Capital in Total Retained Comprehensive Common excess of Treasury shareholders' Earnings Income Stock par value ESOT stock equity January 1, 2018 $ 15,709 $ (32 ) $ 523 $ 14,171 $ (662 ) $ (1,544 ) $ 28,165 Purchase of treasury shares - - - - - (117 ) (117 ) Net Income 331 - - - - - 331 March 31, 2018 $ 16,040 $ (32 ) $ 523 $ 14,171 $ (662 ) $ (1,661 ) $ 28,379 Dividends declared ($0.16 per share) (416 ) - - - - - (416 ) Purchase of treasury shares - - - - - (33 ) (33 ) Stock based compensation (6 ) 6 - 21 - 64 85 Net Income 707 - - - - - 707 June 30, 2018 $ 16,325 $ (26 ) $ 523 $ 14,192 $ (662 ) $ (1,630 ) $ 28,722 The Company’s Board of Directors authorized the purchase of up to 450,000 shares of its common stock in the open market or in privately negotiated transactions. As of June 30, 2019, the Company has purchased 359,525 shares and there remains 90,475 shares available to purchase under this program. There were 4,502 shares purchased by the Company during the six month period ended June 30, 2019. On January 1, 2019, 26,250 shares of restricted stock vested of which shares were withheld by the Company for approximately $99,000 to satisfy statutory minimum withholding tax requirements for those participants who elected this option as permitted under the Company’s 2012 Long-Term Incentive Plan. On May 25, 2018, the Company issued 78,750 shares of restricted stock to Executive Officers and certain key management of the Company under the Company’s 2012 Long-Term Incentive Plan. The restricted share awards have varying vesting periods between January 2019 and January 2021; however, these shares have voting rights and accrue dividends prior to vesting. The accrued dividends are paid upon vesting of the restricted shares. The aggregate amount of expense to the Company, measured based on grant date fair value is expected to be approximately $735,000 and will be recognized over the requisite service period. The Company’s director compensation policy provides that non-employee directors receive a portion of their annual retainer in the form of restricted stock under the Company’s 2012 Long-Term Incentive Plan. These shares vest quarterly over a twelve month service period, have voting rights and accrue dividends that are paid upon vesting. The aggregate amount of expense to the Company, measured based on the grant date fair value, will be recognized over the requisite service period. An aggregate of 4,288 restricted shares were issued on May 25, 2018 with a grant date fair value of $40,000. An aggregate of 7,836 restricted shares were issued on April 26, 2019 with a grant date fair value of $100,000. On May 15, 2019 the Company announced that its Board of Directors declared a $0.16 per share cash dividend. The dividend was subsequently paid on July 15, 2019 to shareholders of record on June 28, 2019 and was approximately $413,000 in the aggregate. These dividends do not represent that the Company will pay dividends on a regular or scheduled basis. The amount is recorded in dividends payable and as a reduction to retained earnings on the accompanying consolidated balance sheet. Earnings Per Share Basic earnings per share is computed by dividing net earnings by the weighted average number of shares outstanding during the period. The weighted average number of common shares outstanding does not include any potentially dilutive securities or any unvested restricted shares of common stock. These unvested restricted shares, although classified as issued and outstanding, are considered forfeitable until the restrictions lapse and will not be included in the basic EPS calculation until the shares are vested. Diluted earnings per share is computed by dividing net earnings by the weighted average number of shares outstanding during the period plus the number of shares of common stock that would be issued assuming all contingently issuable shares having a dilutive effect on the earnings per share that were outstanding for the period. Incremental shares from assumed conversions are calculated as the number of shares that would be issued, net of the number of shares that could be purchased in the marketplace with the cash received upon stock option exercise. The dilutive effect of unvested restrictive stock is determined using the treasury stock method. Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 ($000's omitted except per share data) Net Income $ 714 $ 707 $ 812 $ 1,038 Weighted average common shares outstanding (basic) 2,324 2,267 2,322 2,241 Unvested restricted stock 60 83 60 83 Weighted average common shares outstanding (diluted) 2,384 2,350 2,382 2,324 Basic Net income per share $ 0.31 $ 0.31 $ 0.35 $ 0.46 Diluted Net income per share $ 0.30 $ 0.30 $ 0.34 $ 0.45

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2019
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	7. Commitments and Contingencies Post retirement obligation. Employment Agreements.

Litigation

Litigation	6 Months Ended
	Jun. 30, 2019
Litigation [Abstract]
Litigation	8. Litigation Litigation. There are no other legal proceedings currently pending by or against the Company other than ordinary routine litigation incidental to the business which is not expected to have a material adverse effect on the business or earnings of the Company.

Related Party Transactions

Related Party Transactions	6 Months Ended
	Jun. 30, 2019
Related Party Transactions [Abstract]
Related Party Transactions	9. Related Party Transactions The Company paid legal fees and disbursements of approximately $48,000 and $95,000 in the six month period ended June 30, 2019 and 2018, respectively, for services provided by a law firm that is owned by a member of the Company’s Board of Directors. Legal fees paid for the three month period ended June 30, 2019 and 2018 amounted to approximately $29,000 and $48,000, respectively. Additionally, the Company had accrued unbilled legal fees at June 30, 2019 and 2018 of approximately $22,000 and $32,000, respectively, with this firm.

Business Segments

Business Segments	6 Months Ended
	Jun. 30, 2019
Segment Reporting [Abstract]
Business Segments	10. Business Segments The Company operates in two business segments, ATG and CPG. The Company’s reportable segments are strategic business units that offer different products and services. The segments are composed of separate corporations and are managed separately. Operations in ATG primarily involve the design, manufacture, and marketing of servo-control components (i.e., torque motors, control valves, actuators, etc.) for government, commercial and industrial applications. CPG’s operations involve the design, manufacture and marketing of a variety of cutlery products for use by consumers and government agencies. The Company derives its primary sales revenue from domestic customers, although a portion of finished products are for foreign end use. As of June 30, 2019, the Company had identifiable assets of approximately $43,948,000 ($41,685,000 – December 31, 2018) of which approximately $33,521,000 ($31,639,000 – December 31, 2018) was for ATG and approximately $10,427,000 ($10,046,000 – December 31, 2018) was for CPG. Information regarding the Company’s operations in these segments is summarized as follows: ($000's omitted except per share data) ATG CPG Consolidated Six Months Ended Six Months Ended Six Months Ended June 30, June 30, June 30, 2019 2018 2019 2018 2019 2018 Revenues from unaffiliated customers $ 22,746 $ 19,389 $ 3,324 $ 3,116 $ 26,070 $ 22,505 Cost of goods sold, inclusive of depreciation (17,022 ) (14,635 ) (3,706 ) (2,896 ) (20,728 ) (17,531 ) Gross margin 5,724 4,754 (382 ) 220 5,342 4,974 Gross margin % 25.2 % 24.5 % -11.5 % 7.1 % 20.5 % 22.1 % Selling, general and administrative (3,019 ) (2,655 ) (1,283 ) (986 ) (4,302 ) (3,641 ) Interest (41 ) (35 ) (16 ) (17 ) (57 ) (52 ) Total costs and expenses (20,082 ) (17,325 ) (5,005 ) (3,899 ) (25,087 ) (21,224 ) Income before income tax provision 2,664 2,064 (1,681 ) (783 ) 983 1,281 Income tax provision (benefits) 463 392 (292 ) (149 ) 171 243 Net income/(loss) $ 2,201 $ 1,672 $ (1,389 ) $ (634 ) $ 812 $ 1,038 Capital expenditures $ 1,161 $ 845 $ 192 $ 139 $ 1,353 $ 984 ($000's omitted except per share data) ATG CPG Consolidated Three Months Ended Three Months Ended Three Months Ended June 30, June 30, June 30, 2019 2018 2019 2018 2019 2018 Revenues from unaffiliated customers $ 12,151 $ 10,274 $ 1,916 $ 1,672 $ 14,067 $ 11,946 Cost of goods sold, inclusive of depreciation (8,555 ) (7,552 ) (2,243 ) (1,470 ) (10,798 ) (9,022 ) Gross margin 3,596 2,722 (327 ) 202 3,269 2,924 Gross margin % 29.6 % 26.5 % -17.1 % 12.1 % 23.2 % 24.5 % Selling, general and administrative (1,739 ) (1,426 ) (636 ) (587 ) (2,375 ) (2,013 ) Interest (22 ) (18 ) (8 ) (9 ) (30 ) (27 ) Total costs and expenses (10,316 ) (8,996 ) (2,887 ) (2,066 ) (13,203 ) (11,062 ) Income before income tax provision 1,835 1,278 (971 ) (394 ) 864 884 Income tax provision (benefits) 318 262 (168 ) (85 ) 150 177 Net income/(loss) $ 1,517 $ 1,016 $ (803 ) $ (309 ) $ 714 $ 707 Capital expenditures $ 562 $ 440 $ 149 $ 33 $ 711 $ 473

Business Description and Summ_2

Business Description and Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2019
Accounting Policies [Abstract]
Principles of Consolidation	Principles of Consolidation The consolidated financial statements include the accounts of Servotronics, Inc. and its wholly-owned subsidiaries (the “Company”). All intercompany balances and transactions have been eliminated upon consolidation.
Cash	Cash The Company considers cash to include all currency and coins owned by the Company as well as all deposits in the bank including checking accounts and savings accounts.
Accounts Receivable	Accounts Receivable The Company grants credit to substantially all of its customers and carries its accounts receivable at original invoice amount less an allowance for doubtful accounts. On a periodic basis, the Company evaluates its accounts receivable and establishes an allowance for doubtful accounts based on history of past write-offs, collections, and current credit conditions. The allowance for doubtful accounts amounted to approximately $144,000 at June 30, 2019 and $170,000 at December 31, 2018. The Company does not accrue interest on past due receivables.
Note Receivable	Note Receivable There is a note receivable with a balance of $125,000 as of June 30, 2019 and recorded th
Inventories	Inventories Inventories are stated at the lower of cost or net realizable value. Cost includes all costs incurred to bring each product to its present location and condition. Market provisions in respect of lower of cost or market adjustments and inventory expected to be used in greater than two years are applied to the gross value of the inventory through a reserve of approximately $1,539,000 and $1,543,000 at June 30, 2019 and December 31, 2018, respectively. Pre-production and start-up costs are expensed as incurred. The purchase of suppliers’ minimum economic quantities of material such as steel, etc. may result in a purchase of quantities exceeding one year of customer requirements. Also, in order to maintain a reasonable and/or agreed to lead time, certain larger quantities of other product support items may have to be purchased and may result in over one year’s supply. These amounts are not included in the inventory reserve discussed above.
Shipping and Handling Costs	Shipping and Handling Costs Shipping and handling costs are classified as a component of cost of goods sold.
Property, Plant and Equipment	Property, Plant and Equipment Property, plant and equipment is carried at cost; expenditures for new facilities and equipment and expenditures which substantially increase the useful lives of existing plant and equipment are capitalized; expenditures for maintenance and repairs are expensed as incurred. Upon disposal of properties, the related cost and accumulated depreciation are removed from the respective accounts and any profit or loss on disposition is included in income. Depreciation is provided on the basis of estimated useful lives of depreciable properties, primarily by the straight-line method for financial statement purposes and by accelerated methods for income tax purposes. Depreciation expense includes the amortization of right-of-use (“ROU”) assets accounted for as finance leases. The estimated useful lives of depreciable properties are generally as follows: Buildings and improvements 5-40 years Machinery and equipment 5-20 years Tooling 3-5 years
Income Taxes	Income Taxes The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax basis of assets and liabilities, as well as operating loss and credit carryforwards. The Company and its subsidiaries file a consolidated federal income tax return, combined New York and Texas state income tax returns and separate Pennsylvania and Arkansas income tax returns. The Company’s practice is to recognize interest and/or penalties related to income tax matters in income tax expense. The Company did not have any accrued interest or penalties included in its consolidated balance sheets at June 30, 2019 or December 31, 2018, and did not recognize any interest and/or penalties in its consolidated statements of income during the three months ended June 30, 2019 and 2018. The Company did not have any material uncertain tax positions or unrecognized tax benefits or obligations as of June 30, 2019 and December 31, 2018. The 2015 through 2017 federal and state tax returns remain subject to examination.
Supplemental Cash Flow Information	Supplemental Cash Flow Information Income taxes paid during the six months ended June 30, 2019 and 2018 amounted to approximately $0 and $775,000, respectively. Interest paid during the six months ended June 30, 2019 and 2018 amounted to approximately $ , respectively.
Employee Stock Ownership Plan	Employee Stock Ownership Plan Contributions to the employee stock ownership plan are determined annually by the Company according to plan formula.
Impairment of Long-Lived Assets	Impairment of Long-Lived Assets The Company reviews long-lived assets for impairment annually or whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable based on undiscounted future operating cash flow analyses. If an impairment is determined to exist, any related impairment loss is calculated based on fair value. Due to the losses incurred by our CPG segment, we performed a test for recoverability of the long-lived assets by comparing its carrying value to the future undiscounted cash flows that we expect will be generated by the asset group. Impairment losses on assets to be disposed of, if any, are based on the estimated proceeds to be received, less costs of disposal. The Company has determined that no impairment of long-lived assets existed at June 30, 2019 and December 31, 2018.
Use of Estimates	Use of Estimates The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Reclassifications	Reclassifications Certain balances, as previously reported, were reclassified to conform to classifications adopted in the current period.
Research and Development Costs	Research and Development Costs Research and development costs are expensed as incurred.
Concentration of Credit Risks	Concentration of Credit Risks Financial instruments that potentially subject the Company to concentration of credit risks principally consist of cash accounts in financial institutions. Although the accounts exceed the federally insured deposit amount, management does not anticipate nonperformance by the financial institutions.
Fair Value of Financial Instruments	Fair Value of Financial Instruments The carrying amount of cash, accounts receivable, accounts payable and accrued expenses are reasonable estimates of their fair value due to their short maturity. Based on variable interest rates and the borrowing rates currently available to the Company for loans similar to its long-term debt, the fair value approximates its carrying amount.
Revenue Recognition	Revenue Recognition Revenues are recognized at the time of shipment of goods, transfer of title and customer acceptance, as required. Our revenue transactions generally consist of a single performance obligation to transfer contracted goods and are not accounted for under industry-specific guidance. Purchase orders generally include specific terms relative to quantity, item description, specifications, price, customer responsibility for in-process costs, delivery schedule, shipping point, payment and other standard terms and conditions of purchase. Service sales, principally representing repair, are recognized at the time of shipment of goods. The costs incurred for nonrecurring engineering, development and repair activities of our products under agreements with commercial customers are expensed as incurred. Subsequently, the revenue is recognized as products are delivered to the customers with the approval by the customers. Revenue is recognized at an amount that reflects the consideration to which the Company expects to be entitled in exchange for transferring goods and services to a customer. The Company determines revenue recognition using the following five steps: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when the company satisfies a performance obligation. Revenue excludes taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction and collected by the Company from a customer (e.g., sales and use taxes). Revenue includes payments for shipping activities that are reimbursed by the customer to the Company. Performance obligations are satisfied as of a point in time. Performance obligations are supported by contracts with customers, providing a framework for the nature of the distinct goods, services or bundle of goods and services. The timing of satisfying the performance obligation is typically indicated by the terms of the contract. As a significant portion of the Company’s revenue are recognized at the time of shipment, transfer of title and customer acceptance, there is no significant judgment applied to determine the timing of the satisfaction of performance obligations or transaction price. The timing of satisfaction of our performance obligations does not significantly vary from the typical timing of payment. The Company generally receives payment for these contracts within the payment terms negotiated and agreed upon by each customer contract. Warranty and repair obligations are assessed on all returns. Revenue is not recorded on any warranty returns. The Company warrants its products against design, materials and workmanship based on an average of twenty-seven months. The Company determines warranty reserves needed based on actual average costs of warranty units shipped and current facts and circumstances. As of June 30, 2019 and December 31, 2018 under the guidance of ASC460 the Company has recorded a warranty reserve of approximately $420,000 and $428,000, respectively. This amount is reflected in other accrued expenses in the accompanying balance sheet. Revenue is recognized on repair returns, covered under a customer contract, at the contractual price upon shipment to the customer.
Recent Accounting Pronouncements Adopted	Recent Accounting Pronouncements Adopted In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” The new standard requires a lessee to record on the balance sheet the assets and liabilities for the rights and obligations created by leases with lease terms of more than 12 months and requires both lessees and lessors to disclose certain key information about lease transactions. The standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company adopted this standard during the first quarter of 2019. The adoption of this guidance did not have a material impact on the Company’s financial statements and related disclosures. The Company has four pieces of equipment financed through a lease line of credit and have recognized a lease liability and a ROU asset for each piece of equipment. Finance lease assets are included in property, plant, and equipment, and liabilities are included in short-term and long-term debt. Accounting for finance leases is substantially unchanged. The Company has evaluated our list of suppliers to determine if any other contract contains a lease. The Company has one other lease of equipment at an annual payment of less than $2,000. Rather than account for this as a financing lease, the piece of equipment will be purchased. At the inception of a new contract, the Company will determine if a contract contains a lease.

Business Description and Summ_3

Business Description and Summary of Significant Accounting Policies (Tables)	6 Months Ended
	Jun. 30, 2019
Accounting Policies [Abstract]
Schedule of estimated useful lives of property, plant and equipment	Buildings and improvements 5-40 years Machinery and equipment 5-20 years Tooling 3-5 years

Inventories (Table)

Inventories (Table)	6 Months Ended
	Jun. 30, 2019
Inventory Disclosure [Abstract]
Schedule of inventories	June 30, December 31, 2019 2018 ($000's omitted) Raw material and common parts $ 10,688 $ 9,088 Work-in-process 6,440 5,123 Finished goods 1,345 2,482 18,473 16,693 Less inventory reserve (1,539 ) (1,543 ) Total inventories $ 16,934 $ 15,150

Property, Plant and Equipment (

Property, Plant and Equipment (Tables)	6 Months Ended
	Jun. 30, 2019
Property, Plant and Equipment [Abstract]
Schedule of property, plant and equipment	June 30, December 31, 2019 2018 ($000's omitted) Land $ 7 $ 7 Buildings 10,563 10,452 Machinery, equipment and tooling 19,348 18,345 Construction in progress 1,490 1,258 31,408 30,062 Less accumulated depreciation and amortization (18,744 ) (18,187 ) Total property, plant and equipment $ 12,664 $ 11,875

Long-Term Debt (Tables)

Long-Term Debt (Tables)	6 Months Ended
	Jun. 30, 2019
Debt Disclosure [Abstract]
Schedule of long-term debt	June 30, December 31, 2019 2018 ($000's omitted) Term loan payable to a financial institution; Interest rate option of bank prime or Libor plus 1.4% (3.840% as of June 30, 2019), monthly prinicipal payments of $21,833 through 2021 with a balloon payment of $786,000 due December 1, 2021 $ 1,441 $ 1,572 Term loan payable to a financial institution; Interest rate option of bank prime or Libor plus 1.4% (3.840% as of June 30, 2019), monthly prinicipal payments of $23,810 through December 1, 2021 714 857 Equipment financing lease obligations; Interest rate fixed for term of each funding based upon the Lender's lease pricing at time of funding. (Interest rate/factor 1.822758% - 1.869304% at time of funding) 617 704 Equipment note obligations; Interest rate fixed for term of each funding based upon the Lender's pricing at time of funding. (Interest rate/factor 3.3943% - 3.8527% at time of funding) 601 - 3,373 3,133 Less current portion (844 ) (723 ) $ 2,529 $ 2,410
Schedule of payments for capital lease obligations	June 30, December 31, Year 2019 2018 ($000's omitted) 2019 165 193 2020 330 193 2021 330 193 2022 330 193 2023 141 4 2024 68 - Total principal and interest payments 1,364 776 Less amount representing interest (146 ) (72 ) Present value of net minimum lease payments 1,218 704 Less current portion (296 ) (175 ) Long term principle payments $ 922 $ 529

Shareholders' Equity (Tables)

Shareholders' Equity (Tables)	6 Months Ended
	Jun. 30, 2019
Equity [Abstract]
Schedule of stockholders equity	Six-month Period Ended June 30, 2019 Accumulated Other Capital in Total Retained Comprehensive Common excess of Treasury shareholders' Earnings Income Stock par value ESOT stock equity January 1, 2019 $ 18,788 $ 35 $ 523 $ 14,250 $ (561 ) $ (1,522 ) $ 31,513 Purchase of treasury shares - - - - - (128 ) (128 ) Stock based compensation - - - 14 - 44 58 Net Income 98 - - - - - 98 March 31, 2019 $ 18,886 $ 35 $ 523 $ 14,264 $ (561 ) $ (1,606 ) $ 31,541 Dividends declared ($0.16 per share) (413 ) - - - - - (413 ) Purchase of treasury shares - - - - - (21 ) (21 ) Stock based compensation - - - 34 - 61 95 Net Income 714 - - - - - 714 June 30, 2019 $ 19,187 $ 35 $ 523 $ 14,298 $ (561 ) $ (1,566 ) $ 31,916 Six-month Period Ended June 30, 2018 Accumulated Other Capital in Total Retained Comprehensive Common excess of Treasury shareholders' Earnings Income Stock par value ESOT stock equity January 1, 2018 $ 15,709 $ (32 ) $ 523 $ 14,171 $ (662 ) $ (1,544 ) $ 28,165 Purchase of treasury shares - - - - - (117 ) (117 ) Net Income 331 - - - - - 331 March 31, 2018 $ 16,040 $ (32 ) $ 523 $ 14,171 $ (662 ) $ (1,661 ) $ 28,379 Dividends declared ($0.16 per share) (416 ) - - - - - (416 ) Purchase of treasury shares - - - - - (33 ) (33 ) Stock based compensation (6 ) 6 - 21 - 64 85 Net Income 707 - - - - - 707 June 30, 2018 $ 16,325 $ (26 ) $ 523 $ 14,192 $ (662 ) $ (1,630 ) $ 28,722
Schedule of earnings per share	Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 ($000's omitted except per share data) Net Income $ 714 $ 707 $ 812 $ 1,038 Weighted average common shares outstanding (basic) 2,324 2,267 2,322 2,241 Unvested restricted stock 60 83 60 83 Weighted average common shares outstanding (diluted) 2,384 2,350 2,382 2,324 Basic Net income per share $ 0.31 $ 0.31 $ 0.35 $ 0.46 Diluted Net income per share $ 0.30 $ 0.30 $ 0.34 $ 0.45

Business Segments (Tables)

Business Segments (Tables)	6 Months Ended
	Jun. 30, 2019
Segment Reporting [Abstract]
Schedule of information regarding operations in business segment	($000's omitted except per share data) ATG CPG Consolidated Six Months Ended Six Months Ended Six Months Ended June 30, June 30, June 30, 2019 2018 2019 2018 2019 2018 Revenues from unaffiliated customers $ 22,746 $ 19,389 $ 3,324 $ 3,116 $ 26,070 $ 22,505 Cost of goods sold, inclusive of depreciation (17,022 ) (14,635 ) (3,706 ) (2,896 ) (20,728 ) (17,531 ) Gross margin 5,724 4,754 (382 ) 220 5,342 4,974 Gross margin % 25.2 % 24.5 % -11.5 % 7.1 % 20.5 % 22.1 % Selling, general and administrative (3,019 ) (2,655 ) (1,283 ) (986 ) (4,302 ) (3,641 ) Interest (41 ) (35 ) (16 ) (17 ) (57 ) (52 ) Total costs and expenses (20,082 ) (17,325 ) (5,005 ) (3,899 ) (25,087 ) (21,224 ) Income before income tax provision 2,664 2,064 (1,681 ) (783 ) 983 1,281 Income tax provision (benefits) 463 392 (292 ) (149 ) 171 243 Net income/(loss) $ 2,201 $ 1,672 $ (1,389 ) $ (634 ) $ 812 $ 1,038 Capital expenditures $ 1,161 $ 845 $ 192 $ 139 $ 1,353 $ 984 ($000's omitted except per share data) ATG CPG Consolidated Three Months Ended Three Months Ended Three Months Ended June 30, June 30, June 30, 2019 2018 2019 2018 2019 2018 Revenues from unaffiliated customers $ 12,151 $ 10,274 $ 1,916 $ 1,672 $ 14,067 $ 11,946 Cost of goods sold, inclusive of depreciation (8,555 ) (7,552 ) (2,243 ) (1,470 ) (10,798 ) (9,022 ) Gross margin 3,596 2,722 (327 ) 202 3,269 2,924 Gross margin % 29.6 % 26.5 % -17.1 % 12.1 % 23.2 % 24.5 % Selling, general and administrative (1,739 ) (1,426 ) (636 ) (587 ) (2,375 ) (2,013 ) Interest (22 ) (18 ) (8 ) (9 ) (30 ) (27 ) Total costs and expenses (10,316 ) (8,996 ) (2,887 ) (2,066 ) (13,203 ) (11,062 ) Income before income tax provision 1,835 1,278 (971 ) (394 ) 864 884 Income tax provision (benefits) 318 262 (168 ) (85 ) 150 177 Net income/(loss) $ 1,517 $ 1,016 $ (803 ) $ (309 ) $ 714 $ 707 Capital expenditures $ 562 $ 440 $ 149 $ 33 $ 711 $ 473

Business Description and Summ_4

Business Description and Summary of Significant Accounting Policies - Estimated useful lives of depreciable properties (Details)	6 Months Ended
	Jun. 30, 2019
Buildings and improvements | Minimum
Property, Plant and Equipment [Line Items]
Estimated useful lives of depreciable properties	5 years
Buildings and improvements | Maximum
Property, Plant and Equipment [Line Items]
Estimated useful lives of depreciable properties	40 years
Machinery and equipment | Minimum
Property, Plant and Equipment [Line Items]
Estimated useful lives of depreciable properties	5 years
Machinery and equipment | Maximum
Property, Plant and Equipment [Line Items]
Estimated useful lives of depreciable properties	20 years
Tooling | Minimum
Property, Plant and Equipment [Line Items]
Estimated useful lives of depreciable properties	3 years
Tooling | Maximum
Property, Plant and Equipment [Line Items]
Estimated useful lives of depreciable properties	5 years

Business Description and Summ_5

Business Description and Summary of Significant Accounting Policies (Detail Textuals) - USD ($)	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for doubtful accounts	$ 144,000		$ 170,000
Inventory reserve	1,539,000		1,543,000
Interest paid	57,000	$ 52,000
Warranty reserve	420,000		$ 428,000
Income taxes paid	$ 0	$ 775,000
Frequency of principal payments	Quarterly by the 15th of the first month of each quarter in 58 payments
Percentage of floating interest rate payable	5.00%
Demand promissory note from third party	$ 125,000
Other non-current assets
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Note receivable	$ 125,000
Accounting standards update 2016-02 (Topic 842)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Description of one lease of equipment at annual payment	Company has one other lease of equipment at an annual payment of less than $2,000
Threshold limit of annual payment of one lease equipment	$ 2,000

Inventories - Summary of invent

Inventories - Summary of inventories (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Inventory Disclosure [Abstract]
Raw material and common parts	$ 10,688	$ 9,088
Work-in-process	6,440	5,123
Finished goods	1,345	2,482
Inventory, Gross	18,473	16,693
Less inventory reserve	(1,539)	(1,543)
Total inventories	$ 16,934	$ 15,150

Property, Plant and Equipment -

Property, Plant and Equipment - Summary of property, plant and equipment (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 31,408	$ 30,062
Less accumulated depreciation and amortization	(18,744)	(18,187)
Total property, plant and equipment	12,664	11,875
Land
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	7	7
Buildings
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	10,563	10,452
Machinery, equipment and tooling
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	19,348	18,345
Construction in progress (CIP)
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 1,490	$ 1,258

Property, Plant and Equipment_2

Property, Plant and Equipment (Detail Textuals) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Property, Plant and Equipment [Line Items]
Depreciation and amortization expense	$ 289,000	$ 244,000	$ 563,000	$ 502,000
Amortization	21,000	$ 20,000	41,000	$ 37,000
Property, plant and equipment, gross	31,408,000		31,408,000		$ 30,062,000
Advanced Technology Group ("ATG") and the Consumer Products Group ("CPG")
Property, Plant and Equipment [Line Items]
Construction in progress	1,490,000		1,490,000		$ 1,258,000
Advanced Technology Group ("ATG") and the Consumer Products Group ("CPG") | Construction in progress (CIP) implementation costs
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	683,000		683,000
Advanced Technology Group ("ATG") and the Consumer Products Group ("CPG") | Construction in progress (CIP) IT equipment and software
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	392,000		392,000
Advanced Technology Group ("ATG") and the Consumer Products Group ("CPG") | Construction in progress (CIP) machinery & equipment and self-constructed assets
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 415,000		$ 415,000

Long-Term Debt - Summary of lon

Long-Term Debt - Summary of long term debt (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Debt Instrument [Line Items]
Long-term debt	$ 3,373	$ 3,133
Less current portion	(844)	(723)
Long-term debt, Noncurrent	2,529	2,410
Term loan payable to a financial institution; Interest rate option of bank prime or Libor plus 1.4% (3.840% as of June 30, 2019), monthly prinicipal payments of $21,833 through 2021 with a balloon payment of $786,000 due December 1, 2021
Debt Instrument [Line Items]
Long-term debt	1,441	1,572
Term loan payable to a financial institution; Interest rate option of bank prime or Libor plus 1.4% (3.840% as of June 30, 2019), monthly prinicipal payments of $23,810 through December 1, 2021
Debt Instrument [Line Items]
Long-term debt	714	857
Equipment financing lease obligations; Interest rate fixed for term of each funding based upon the Lender's lease pricing at time of funding. (Interest rate/factor 1.822758% - 1.869304% at time of funding)
Debt Instrument [Line Items]
Long-term debt	617	704
Equipment note obligations; Interest rate fixed for term of each funding based upon the Lender's pricing at time of funding. (Interest rate/factor 3.3943% - 3.8527% at time of funding)
Debt Instrument [Line Items]
Long-term debt	$ 601	$ 0

Long-Term Debt - Summary of l_2

Long-Term Debt - Summary of long term debt (Parentheticals) (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2019USD ($)
Debt Instrument [Line Items]
Percentage of floating interest rate payable	5.00%
Frequency of principal payments	Quarterly by the 15th of the first month of each quarter in 58 payments
Term loan payable to a financial institution; Interest rate option of bank prime or Libor plus 1.4% (3.840% as of June 30, 2019), monthly prinicipal payments of $21,833 through 2021 with a balloon payment of $786,000 due December 1, 2021
Debt Instrument [Line Items]
Description of rate basis	Libor
Percentage of floating interest rate payable	1.40%
Percentage of fixed interest rate payable	3.84%
Frequency of principal payments	Monthly
Monthly principal payments	$ 21,833
Balloon payment due December 1, 2021	$ 786,000
Term loan payable to a financial institution; Interest rate option of bank prime or Libor plus 1.4% (3.840% as of June 30, 2019), monthly prinicipal payments of $23,810 through December 1, 2021
Debt Instrument [Line Items]
Description of rate basis	Libor
Percentage of floating interest rate payable	1.40%
Percentage of fixed interest rate payable	3.84%
Frequency of principal payments	Monthly
Monthly principal payments	$ 23,810
Equipment financing lease obligations; Interest rate fixed for term of each funding based upon the Lender's lease pricing at time of funding. (Interest rate/factor 1.822758% - 1.869304% at time of funding)
Debt Instrument [Line Items]
Description of rate basis	Interest rate/factor
Equipment financing lease obligations; Interest rate fixed for term of each funding based upon the Lender's lease pricing at time of funding. (Interest rate/factor 1.822758% - 1.869304% at time of funding) | Minimum
Debt Instrument [Line Items]
Percentage of floating interest rate payable	1.82276%
Equipment financing lease obligations; Interest rate fixed for term of each funding based upon the Lender's lease pricing at time of funding. (Interest rate/factor 1.822758% - 1.869304% at time of funding) | Maximum
Debt Instrument [Line Items]
Percentage of floating interest rate payable	1.8693%
Equipment note obligations; Interest rate fixed for term of each funding based upon the Lender's pricing at time of funding. (Interest rate/factor 3.3943% - 3.8527% at time of funding)
Debt Instrument [Line Items]
Description of rate basis	Interest rate/factor
Equipment note obligations; Interest rate fixed for term of each funding based upon the Lender's pricing at time of funding. (Interest rate/factor 3.3943% - 3.8527% at time of funding) | Minimum
Debt Instrument [Line Items]
Percentage of floating interest rate payable	3.3943%
Equipment note obligations; Interest rate fixed for term of each funding based upon the Lender's pricing at time of funding. (Interest rate/factor 3.3943% - 3.8527% at time of funding) | Maximum
Debt Instrument [Line Items]
Percentage of floating interest rate payable	3.8527%

Long-Term Debt (Details 1)

Long-Term Debt (Details 1) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Debt Disclosure [Abstract]
2019	$ 165	$ 193
2020	330	193
2021	330	193
2022	330	193
2023	141	4
2024	68	0
Total principal and interest payments	1,364	776
Less amount representing interest	(146)	(72)
Present value of net minimum lease payments	1,218	704
Less current portion	(296)	(175)
Long term principle payments	$ 922	$ 529

Long-Term Debt (Detail Textuals

Long-Term Debt (Detail Textuals) - USD ($)	6 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Debt Instrument [Line Items]
Principal maturities of long-term debt for 2019	$ 422,000
Principal maturities of long-term debt for 2020	844,000
Principal maturities of long-term debt for 2021	1,630,000
Principal maturities of long-term debt for 2022	282,000
Principal maturities of long-term debt for 2023	135,000
Principal maturities of long-term debt for 2024	$ 60,000
Lease term for equipment covered by lease line of credit	60 months
Percentage of floating interest rate payable	5.00%
Term loan payable to a financial institution; Interest rate option of bank prime or Libor plus 1.4% (3.840% as of June 30, 2019), monthly prinicipal payments of $21,833 through 2021 with a balloon payment of $786,000 due December 1, 2021
Debt Instrument [Line Items]
Description of rate basis	Libor
Percentage of floating interest rate payable	1.40%
Term loan payable to a financial institution; Interest rate option of bank prime or Libor plus 1.4% (3.840% as of June 30, 2019), monthly prinicipal payments of $23,810 through December 1, 2021
Debt Instrument [Line Items]
Description of rate basis	Libor
Percentage of floating interest rate payable	1.40%
Equipment financing lease obligations; Interest rate fixed for term of each funding based upon the Lender's lease pricing at time of funding. (Interest rate/factor 1.822758% - 1.869304% at time of funding)
Debt Instrument [Line Items]
Lease line of credit	$ 1,000,000
Leases line of credit outstanding	$ 617,000	$ 704,000
Description of rate basis	Interest rate/factor
Equipment note obligations; Interest rate fixed for term of each funding based upon the Lender's pricing at time of funding. (Interest rate/factor 3.3943% - 3.8527% at time of funding)
Debt Instrument [Line Items]
Loan line of credit	$ 2,500,000
Loan term for equipment covered by loan	60 months
Line of credit	$ 601,000
Description of rate basis	Interest rate/factor

Stockholders' Equity - Summary

Stockholders' Equity - Summary of common shareholders' equity (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2018	Mar. 31, 2018	Jun. 30, 2019	Jun. 30, 2018
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance	$ 31,541	$ 31,513	$ 28,379	$ 28,165	$ 31,513	$ 28,165
Balance (shares)		2,614,506			2,614,506
Dividends declared ($0.16 per share)	(413)		(416)
Purchase of treasury shares	21	$ (128)	(33)	(117)
Stock based compensation	95	58	85
Net Income	714	98	707	331	$ 812	1,038
Balance	$ 31,916	31,541	28,722	28,379	$ 31,916	28,722
Balance (shares)	2,614,506				2,614,506
Common Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance	$ 523	523	523	523	$ 523	523
Dividends declared ($0.16 per share)	0		0
Purchase of treasury shares	0	0	0	0
Stock based compensation	0	0	0
Net Income	0	0	0	0
Balance	523	523	523	523	523	523
Capital in excess of par value
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance	14,264	14,250	14,171	14,171	14,250	14,171
Dividends declared ($0.16 per share)	0		0
Purchase of treasury shares	0	0	0	0
Stock based compensation	34	14	21
Net Income	0	0	0	0
Balance	14,298	14,264	14,192	14,171	14,298	14,192
Retained earnings
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance	18,886	18,788	16,040	15,709	18,788	15,709
Dividends declared ($0.16 per share)	(413)		(416)
Purchase of treasury shares	0	0	0	0
Stock based compensation	0	0	(6)
Net Income	714	98	707	331
Balance	19,187	18,886	16,325	16,040	19,187	16,325
ESOT
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance	(561)	(561)	(662)	(662)	(561)	(662)
Dividends declared ($0.16 per share)	0		0
Purchase of treasury shares	0	0	0	0
Stock based compensation	0	0	0
Net Income	0	0	0	0
Balance	(561)	(561)	(662)	(662)	(561)	(662)
Treasury stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance	(1,606)	(1,522)	(1,661)	(1,544)	(1,522)	(1,544)
Dividends declared ($0.16 per share)	0		0
Purchase of treasury shares	21	(128)	(33)	(117)
Stock based compensation	61	44	64
Net Income	0	0	0	0
Balance	(1,566)	(1,606)	(1,630)	(1,661)	(1,566)	(1,630)
Accumulated Other Comprehensive Income (Loss)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance	35	35	(32)	(32)	35	(32)
Dividends declared ($0.16 per share)	0		0
Purchase of treasury shares	0	0	0	0
Stock based compensation	0	0	6
Net Income	0	0	0	0
Balance	$ 35	$ 35	$ (26)	$ (32)	$ 35	$ (26)

Shareholders' Equity - Calculat

Shareholders' Equity - Calculation of earning per share (Details 1) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2018	Mar. 31, 2018	Jun. 30, 2019	Jun. 30, 2018
Equity [Abstract]
Net Income	$ 714	$ 98	$ 707	$ 331	$ 812	$ 1,038
Weighted average common shares outstanding (basic) (in shares)	2,324		2,267		2,322	2,241
Unvested restricted stock (in shares)	60		83		60	83
Weighted average common shares outstanding (diluted) (in shares)	2,384		2,350		2,382	2,324
Basic
Net Income per share (in dollars per share)	$ 0.31		$ 0.31		$ 0.35	$ 0.46
Diluted
Net income per share (in dollars per share)	$ 0.30		$ 0.30		$ 0.34	$ 0.45

Shareholders' Equity (Detail Te

Shareholders' Equity (Detail Textuals) - Share Repurchase Program	Jun. 30, 2019shares
Equity, Class of Treasury Stock [Line Items]
Number of common shares authorized to be purchased	450,000
Remaining number of shares authorized to be purchased	90,475
Number of shares purchased	359,525

Shareholders' Equity (Detail _2

Shareholders' Equity (Detail Textuals 1) - 2012 Long-Term Incentive Plan - USD ($)	1 Months Ended
	Apr. 26, 2019	Jan. 31, 2019	May 25, 2018
Executive Officers
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Number of restricted stock issued			78,750
Compensation expense not yet recognized			$ 735,000
Number of restricted stock shares vested		26,250
Number of shares withheld and repurchased		9,729
Value of shares withheld and repurchased		$ 99,000
Non-employee directors
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Number of restricted stock issued	7,836		4,288
Compensation expense not yet recognized	$ 100,000		$ 40,000
Service period			12 months

Shareholders' Equity (Detail _3

Shareholders' Equity (Detail Textuals 2) - USD ($) $ / shares in Units, $ in Thousands	May 15, 2019	Jun. 30, 2019	Dec. 31, 2018
Equity [Abstract]
Dividends declaration date	May 15, 2019
Per share cash dividend	$ 0.16
Date of dividends to be paid	Jul. 15, 2019
Dividends payable record date	Jun. 28, 2019
Aggregate dividend payable	$ 413	$ 421	$ 13

Commitments and Contingencies (

Commitments and Contingencies (Detail Textuals) - USD ($)	6 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Loss Contingencies [Line Items]
Post retirement obligation	$ 1,115,000	$ 1,115,000
Employment Agreement | Kenneth Trbovich
Loss Contingencies [Line Items]
Post retirement obligation	$ 694,000	$ 644,000
Minimum age limit	65 years

Litigation (Detail Textuals)

Litigation (Detail Textuals) - Aero, Inc.	6 Months Ended
	Jun. 30, 2019USD ($)
Litigation [Line Items]
Amount of alleged damages	$ 3,000,000
Amount of counter claim	$ 3,191,000

Related Party Transactions (Det

Related Party Transactions (Detail Textuals) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Related Party Transactions [Abstract]
Legal fees and disbursements	$ 29,000	$ 48,000	$ 48,000	$ 95,000
Accrued additional legal fees	$ 22,000	$ 32,000	$ 22,000	$ 32,000

Business Segments - Summary of

Business Segments - Summary of company's operations (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2018	Mar. 31, 2018	Jun. 30, 2019	Jun. 30, 2018
Segment Reporting Information [Line Items]
Revenues from unaffiliated customers	$ 14,067		$ 11,946		$ 26,070	$ 22,505
Cost of goods sold, inclusive of depreciation	(10,798)		(9,022)		(20,728)	(17,531)
Gross margin (loss)	3,269		2,924		5,342	4,974
Selling, general and administrative	(2,375)		(2,013)		(4,302)	(3,641)
Interest	(30)		(27)		(57)	(52)
Total costs and expenses	(2,405)		(2,040)		(4,359)	(3,693)
Income/(loss) before income tax provision	864		884		983	1,281
Income tax provision (benefit)	150		177		171	243
Net income/(loss)	714	$ 98	707	$ 331	812	1,038
Capital expenditures					1,140	984
Operating Segments
Segment Reporting Information [Line Items]
Revenues from unaffiliated customers	14,067		11,946		26,070	22,505
Cost of goods sold, inclusive of depreciation	(10,798)		(9,022)		(20,728)	(17,531)
Gross margin (loss)	$ 3,269		$ 2,924		$ 5,342	$ 4,974
Gross margin %	23.20%		24.50%		20.50%	22.10%
Selling, general and administrative	$ (2,375)		$ (2,013)		$ (4,302)	$ (3,641)
Interest	(30)		(27)		(57)	(52)
Total costs and expenses	(13,203)		(11,062)		(25,087)	(21,224)
Income/(loss) before income tax provision	864		884		983	1,281
Income tax provision (benefit)	150		177		171	243
Net income/(loss)	714		707		812	1,038
Capital expenditures	711		473		1,353	984
Operating Segments | ATG
Segment Reporting Information [Line Items]
Revenues from unaffiliated customers	12,151		10,274		22,746	19,389
Cost of goods sold, inclusive of depreciation	(8,555)		(7,552)		(17,022)	(14,635)
Gross margin (loss)	$ 3,596		$ 2,722		$ 5,724	$ 4,754
Gross margin %	29.60%		26.50%		25.20%	24.50%
Selling, general and administrative	$ (1,739)		$ (1,426)		$ (3,019)	$ (2,655)
Interest	(22)		(18)		(41)	(35)
Total costs and expenses	(10,316)		(8,996)		(20,082)	(17,325)
Income/(loss) before income tax provision	1,835		1,278		2,664	2,064
Income tax provision (benefit)	318		262		463	392
Net income/(loss)	1,517		1,016		2,201	1,672
Capital expenditures	562		440		1,161	845
Operating Segments | CPG
Segment Reporting Information [Line Items]
Revenues from unaffiliated customers	1,916		1,672		3,324	3,116
Cost of goods sold, inclusive of depreciation	(2,243)		(1,470)		(3,706)	(2,896)
Gross margin (loss)	$ (327)		$ 202		$ (382)	$ 220
Gross margin %	(17.10%)		12.10%		(11.50%)	7.10%
Selling, general and administrative	$ (636)		$ (587)		$ (1,283)	$ (986)
Interest	(8)		(9)		(16)	(17)
Total costs and expenses	(2,887)		(2,066)		(5,005)	(3,899)
Income/(loss) before income tax provision	(971)		(394)		(1,681)	(783)
Income tax provision (benefit)	(168)		(85)		(292)	(149)
Net income/(loss)	(803)		(309)		(1,389)	(634)
Capital expenditures	$ 149		$ 33		$ 192	$ 139

Business Segments (Detail Textu

Business Segments (Detail Textuals) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2019USD ($)Segment	Dec. 31, 2018USD ($)Segment
Segment Reporting Information [Line Items]
Total identifiable assets	$ 43,948	$ 41,685
Number of operating segments | Segment	2	2
Operating Segments | ATG
Segment Reporting Information [Line Items]
Total identifiable assets	$ 33,521	$ 31,639
Operating Segments | CPG
Segment Reporting Information [Line Items]
Total identifiable assets	$ 10,427	$ 10,046