Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 28, 2022 | Jun. 30, 2021 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2021 | ||
Entity File Number | 1-07109 | ||
Entity Registrant Name | SERVOTRONICS INC /DE/ | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 16-0837866 | ||
Entity Address, Address Line One | 1110 Maple Street | ||
Entity Address, City or Town | Elma | ||
Entity Address, State or Province | NY | ||
Entity Address, Postal Zip Code | 14059 | ||
City Area Code | 716 | ||
Local Phone Number | 655-5990 | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
ICFR Auditor Attestation Flag | false | ||
Entity Central Index Key | 0000089140 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Trading Symbol | svt | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Title of 12(b) Security | Common Stock | ||
Security Exchange Name | NYSE | ||
Auditor Name | FREED MAXICK CPAs, P.C. | ||
Auditor Firm ID | 317 | ||
Auditor Location | Buffalo, New York | ||
Entity Public Float | $ 14,176,355 | ||
Entity Common Stock, Shares Outstanding | 2,491,667 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash | $ 9,546 | $ 5,935 |
Accounts receivable, net | 7,198 | 7,636 |
Inventories, net | 20,132 | 23,406 |
Prepaid income taxes | 792 | 483 |
Other current assets | 647 | 383 |
Total current assets | 38,315 | 37,843 |
Property, plant and equipment, net | 10,557 | 12,017 |
Deferred income taxes | 900 | 137 |
Other non-current assets | 321 | 331 |
Total Assets | 50,093 | 50,328 |
Current liabilities: | ||
Current portion of long-term debt | 2,334 | |
Current portion of equipment financing and finance leases | 276 | 301 |
Dividend payable | 12 | |
Accounts payable | 663 | 1,599 |
Accrued employee compensation and benefits costs | 1,759 | 1,649 |
Current portion of post retirement obligation | 136 | |
Other accrued liabilities | 1,414 | 874 |
Total current liabilities | 4,248 | 6,769 |
Long-term debt | 4,750 | 7,293 |
Post retirement obligation | 5,729 | 2,529 |
Shareholders' equity: | ||
Common stock, par value $0.20; authorized 4,000,000 shares; issued 2,614,506 shares; outstanding 2,435,032 (2,416,683 - 2020) shares | 523 | 523 |
Capital in excess of par value | 14,500 | 14,481 |
Retained earnings | 25,858 | 21,803 |
Accumulated other comprehensive loss | (3,908) | (1,356) |
Employee stock ownership trust commitment | (258) | (359) |
Treasury stock, at cost 122,839 (126,079 - 2020) shares | (1,349) | (1,355) |
Total shareholders' equity | 35,366 | 33,737 |
Total Liabilities and Shareholders' Equity | $ 50,093 | $ 50,328 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares | Dec. 31, 2021 | Dec. 31, 2020 |
CONSOLIDATED BALANCE SHEETS | ||
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 | 2,435,032 | 2,416,683 |
Treasury stock, shares | 122,839 | 126,079 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
CONSOLIDATED STATEMENTS OF OPERATIONS | ||
Revenue | $ 40,558 | $ 49,844 |
Costs and expenses: | ||
Costs of goods sold, inclusive of depreciation and amortization | 34,570 | 41,604 |
Gross margin | 5,988 | 8,240 |
Operating expenses: | ||
Selling, general and administrative | 9,423 | 7,998 |
Legal settlement awards | 1,890 | |
Total operating expenses | 11,313 | 7,998 |
Operating (loss)/income | (5,325) | 242 |
Other income/(expense): | ||
Employee retention credit (ERC) | 5,622 | |
Paycheck Protection Program loan forgiveness | 4,000 | |
Loss on sale of equipment | (98) | |
Interest expense, net | (187) | (180) |
Total other income/(expense) | 9,337 | (180) |
Income before income tax provision | 4,012 | 62 |
Income tax benefit | (43) | (38) |
Net income | $ 4,055 | $ 100 |
Basic | ||
Net income per share | $ 1.68 | $ 0.04 |
Diluted | ||
Net income per share | $ 1.68 | $ 0.04 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME(LOSS) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) | ||
Net Income | $ 4,055 | $ 100 |
Other comprehensive income/(loss) items: | ||
Actuarial losses | (3,308) | (357) |
Income tax benefit on actuarial losses | 695 | 74 |
Reclassification adjustment for amortization of net actuarial losses | 77 | 60 |
Income tax expense on reclassification adjustment | (16) | (12) |
Other comprehensive loss: | ||
Retirement benefits adjustment, net of income taxes | (2,552) | (235) |
Total comprehensive income/(loss) | $ 1,503 | $ (135) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows related to operating activities: | ||
Net Income | $ 4,055,000 | $ 100,000 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Paycheck Protection loan forgiveness | (4,000,000) | |
Depreciation and amortization | 1,368,000 | 1,442,000 |
Loss/(Gain) on disposal of property | 98,000 | (1,000) |
Stock based compensation | 106,000 | 339,000 |
(Decrease) in allowance for doubtful accounts | (57,000) | (149,000) |
Increase in inventory reserve | 22,000 | 283,000 |
Increase/(Decrease) in warranty reserve | 129,000 | (38,000) |
Deferred income taxes | (84,000) | (30,000) |
Change in assets and liabilities: | ||
Accounts receivable | 495,000 | 5,696,000 |
Inventories | 3,252,000 | (3,538,000) |
Prepaid income taxes | (309,000) | (67,000) |
Other current assets | (264,000) | 139,000 |
Accounts payable | (948,000) | (2,859,000) |
Accrued employee compensation and benefit costs | 110,000 | (634,000) |
Other accrued liabilities | 412,000 | (126,000) |
Post retirement obligation | 105,000 | 168,000 |
Employee stock ownership trust payment | 101,000 | 101,000 |
Net cash provided by operating activities | 4,591,000 | 826,000 |
Cash flows related to investing activities: | ||
Capital expenditures - property, plant and equipment | (267,000) | (729,000) |
Proceeds from sale of assets | 270,000 | |
Net cash provided (used) by investing activities | 3,000 | (729,000) |
Cash flows related to financing activities: | ||
Principal payments on long-term debt | (1,334,000) | (547,000) |
Principal payments on equipment financing lease obligations | (452,000) | (294,000) |
Proceeds from equipment note and equipment financing lease | 384,000 | |
Proceeds from line of credit | 500,000 | 750,000 |
Purchase of treasury shares | (81,000) | (100,000) |
Proceeds from paycheck protection program | 4,000,000 | |
Net cash (used) provided by financing activities | (983,000) | 3,809,000 |
Net increase in cash | 3,611,000 | 3,906,000 |
Cash at beginning of year | 5,935,000 | 2,029,000 |
Cash at end of year | $ 9,546,000 | $ 5,935,000 |
Business Description and Summar
Business Description and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Business Description and Summary of Significant Accounting Policies | |
Business Description and Summary of Significant Accounting Policies | 1. Business Description and Summary of Significant Accounting Policies Business Description Servotronics, Inc. is a manufacturer of highly engineered critical components and customized technology solutions for the global aerospace and aviation industry. The Ontario Knife Company, a wholly owned subsidiary of Servotronics, Inc. manufactures consumer products consisting of knives and various types of cutlery and other edged products. In March 2020, the World Health Organization declared the outbreak of the novel coronavirus (COVID-19) a pandemic, resulting in certain local government-mandated restrictions. Although both segments were deemed essential, we experienced disruption in our operations due to the push-out of orders by our customers, elevated safety standards to keep our employees safe, and supply chain challenges. The Company continues to face certain risks and uncertainties resulting from COVID-19, including the severity of a resurgence of COVID-19 or new strains of the virus, the timing, effectiveness and availability of, and people’s receptivity to, COVID-19 vaccines or other potential remedies, and impacts from potential mandatory vaccination requirements. Due to these uncertainties, the severity and extent of future impacts from COVID-19 or any new strains of the virus cannot be reasonably estimated at this time. 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 $131,000 at December 31, 2021 and $188,000 at December 31, 2020. The Company does not accrue interest on past due receivables. 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. Shipping and handling activities that occur after the customer obtains control of the promised goods are considered fulfillment activities. 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 December 31, 2021 and December 31, 2020 under the guidance of ASC460 the Company has recorded a warranty reserve of approximately $511,000 and $382,000, respectively. This amount is reflected in other accrued expenses in the accompanying consolidated balance sheets. Revenue is recognized on repair returns, covered under a customer contract, at the contractual price upon shipment to the customer. 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 net realizable value adjustments and inventory determined to be slow moving are applied to the gross value of the inventory through a reserve of approximately $1,742,000 and $1,720,000 at December 31, 2021 and December 31, 2020, 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 two years of customer requirements. Also, in order to maintain a reasonable and/or agreed to lead time or minimum stocking requirements, certain larger quantities of other product support items may have to be purchased and may result in over one year’s supply. 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 tax purposes. Depreciation expense includes the amortization of finance lease assets. 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 returns, combined New York, Texas, California and Connecticut state income tax returns and a separate Arkansas state income tax return. 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 December 31, 2021 or December 31, 2020, and did not recognize any interest and/or penalties in its consolidated statements of income during the years ended December 31, 2021 and 2020. The Company did not have any material uncertain tax positions or unrecognized tax benefits or obligations as of December 31, 2021 and December 31, 2020. The 2018 through 2021 federal and state tax returns remain subject to examination. Supplemental Cash Flow Information Income taxes paid, net of a refund, for the years ended December 31, 2021 and 2020 amounted to approximately $345,000 and $40,000, respectively. Interest paid, for the years ended December 31, 2021 and 2020 amounted to approximately $187,000 and $180,000, respectively. 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 December 31, 2021 and December 31, 2020. 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. 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. The Company had sales of advanced technology products to two customers, including various divisions and subsidiaries of a common parent company, which represented more than 10% of consolidated revenues in 2021. In both 2021 and 2020 we had a concentration of sales to Customer A and Customer B representing approximately 52.6% and 49.0% of our consolidated sales, respectively. No other customers of the ATG or CPG represented more than 10% of the Company’s consolidated revenues in either of these years . Refer to Note 10, Business Segments, for disclosures related to business segments of the Company. Fair Value of Financial Instruments 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. Recent Accounting Pronouncements Adopted In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2021 | |
Inventories | |
Inventories | 2. Inventories December 31, December 31, 2021 2020 ($000's omitted) Raw material and common parts $ 15,952 $ 16,989 Work-in-process 3,432 4,273 Finished goods 2,490 3,864 21,874 25,126 Less inventory reserve (1,742) (1,720) Total inventories $ 20,132 $ 23,406 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment | |
Property, Plant and Equipment | 3. Property, Plant and Equipment December 31, December 31, 2021 2020 ($000's omitted) Land $ 7 $ 7 Buildings 11,363 11,359 Machinery, equipment and tooling 20,689 21,146 Construction in progress 414 198 32,473 32,710 Less accumulated depreciation and amortization (21,916) (20,693) Property, plant and equipment, net $ 10,557 $ 12,017 Depreciation and amortization expense amounted to approximately $1,368,000 and $1,442,000 for the years ended December 31, 2021 and 2020, respectively. Depreciation expense amounted to approximately $1,310,000 and $1,368,000 for the years ended December 31, 2021 and 2020, respectively. Amortization expense primarily related to finance leases amounted to approximately $58,000 and $74,000 for years ended December 31, 2021 and 2020, respectively. The Company's Right of Use ('ROU') assets included in machinery, equipment and tooling had a net book value of approximately $209,000 ($610,000 - 2020). As of December 31, 2021, there is approximately $414,000 ($198,000 – 2020) of construction in progress (CIP) included in property, plant and equipment all of which is related to capital projects. There is approximately $304,000 in CIP for machinery and approximately $110,000 for building improvements primarily at the Advance Technology Group. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2021 | |
Long-Term Debt | |
Long-Term Debt | 4. Long-Term Debt December 31, December 31, 2021 2020 ($000's omitted) Paycheck protection program payable to financial institutions: Interest rate of 1% per annum. $ — $ 4,000 Line of credit payable to a financial institution; Interest rate option of bank prime or Libor plus 2.15000% (B) (C) 4,250 3,750 Term loan payable to a financial institution; Interest rate option of bank prime or Libor plus 1.554750%, monthly principal payments of $21,833 through 2021 with a balloon payment of $786,000 made December 1, 2021 (C). — 1,048 Term loan payable to a financial institution; Interest rate option of bank prime or Libor plus 1.554750%, monthly principal payments of $23,810 through 2021 (C). — 286 Equipment note obligations; Interest rate fixed for term of each funding based upon the Lender's lease pricing at time of funding. (Interest rate/factor 1.79553% - 1.835015% as of December 31, 2021) (D) 712 534 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)(E) 64 310 5,026 9,928 Less current portion (276) (2,635) Long term debt $ 4,750 $ 7,293 A.) On April 21, 2020, the Company executed a promissory note (the “Note”) in the amount of $4,000,000 as part of the Paycheck Protection Program (the “PPP” Loan) administered by the Small Business Administration (the “SBA”) and authorized under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). The PPP Loan was being made through Bank of America, NA (the “Lender”). The term of the PPP Loan was two years with an annual interest rate of 1.00%. Payments on the unforgiven amount of prinicipal, if any, and interest on the PPP Loan were deferred until the date on which the loan forgiveness was detemined. The Company used approximately 60% of the PPP Loan proceeds to pay for payroll costs and the balance on other eligible qualifying expenses consistent with the terms of the PPP and submitted its forgiveness application to the Lender during the third quarter of 2021. During the third quarter, the entire loan in the amount of $4,000,000 and the accrued interest of $57,000 was forgiven by the SBA and a gain of $4,057,000 was recorded in “Other income/(expense)” in the Company’s consolidated statements of operations. B.) As of March 20, 2020, the Company has a $6,000,000 line of credit. Through December 31, 2021, the interest rate is a rate per year equal to the bank’s prime rate or Libor plus 2.15%. In addition, effective December 20, 2021, the Company is required to pay a commitment fee of 0.25% on the unused portion of the line of credit. On January 11, 2022, the Company executed an amendment to the loan agreement, which extended the line of credit availability period from December 31, 2022 to December 31, 2023. The amended agreement suspended the Debt Service Coverage Ratio loan covenant up through and including the third quarter of 2022. A Quarterly Minimum Cash Flow measurement loan covenant replaced the Debt Service Coverage Ratio loan covenant. Minimum Cash Flow means net income, plus depreciation, depletion, and amortization expense, plus interest expense, plus non-cash expense related to the Servotronics, Inc. Employee Stock Ownership Plan, plus non-cash stock and stock option transactions. Through the third quarter of 2022, the amended agreement requires the Company to maintain a minimum liquidity, defined as cash on hand plus line of credit availability of at least $9,000,000. The interest rate is a rate per year equal to the sum of (i) the greater of the Bloomberg’s Short-Term Bank Yield (BSBY) Daily Floating Rate or the Index Floor, plus (ii) 1.65 percentage point(s). For purposes of this paragraph, “Index Floor” means 0.5 percent. The line of credit is secured by all personal property of the Company with the exception of certain equipment that was purchased from proceeds of government grants. There was $4,250,000 balance outstanding at December 31, 2021 and $3,750,000 balance at December 31, 2020. C.) The term loans were and the line of credit is 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 December 31, 2021 and December 31, 2020 the Company was in compliance with these covenants. D.) The Company had an equipment loan facility in the amount of $1,000,000 available until July 9, 2021. This line was non-revolving and non-renewable. The loan term for the equipment covered by the agreement is 60 months . Monthly payments are fixed for the term of each funding based upon the Lender’s lease pricing in effect at the time of such funding. During the year ended December 31, 2021, approximately $384,000 was drawn on this facility. There was approximately $712,000 outstanding at December 31, 2021 and $534,000 balance outstanding at December 31, 2020. E.) 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 was non-revolving and non-renewable. The lease term for equipment covered by the lease line of credit is 60 months . Monthly payments are 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 $64,000 outstanding at December 31, 2021 and $310,000 at December 31, 2020. Principal maturities of long-term debt are as follows: 2022 - $276,000, 2023 - $4,481,000, 2024 - $182,000, 2025 - $77,000 and 2026 - $10,000. Remaining principal payments for the capital note and finance lease obligations for each of the next five years: December 31, Year 2021 ($000's omitted) 2022 296 2023 246 2024 192 2025 83 2026 11 Total principal and interest payments 828 Less amount representing interest (52) Present value of net minimum lease payments 776 Less current portion (276) Long term principle payments $ 500 |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2021 | |
Employee Benefit Plans | |
Employee Benefit Plans | 5. Employee Benefit Plans Employee Stock Ownership Plan (ESOP) In 1985, the Company established an employee stock ownership plan (ESOP) for the benefit of employees who meet certain minimum age and service requirements. Upon inception of the ESOP, the Company borrowed $2,000,000 from a bank and lent the proceeds to the trust established under the ESOP to purchase shares of the Company’s common stock. The Company’s loan to the trust is at an interest rate approximating the prime rate and is repayable to the Company over a 40-year term ending in December 2024. During 1987 and 1988, the Company loaned an additional $1,942,000 to the trust under terms similar to those under the Company’s original loan. ESOP shares are held by the plan trustees in a suspense account until allocated to participant accounts. Contributions to the employee stock ownership plan are determinded annually by the Company according to plan formula. Each year the Company makes contributions to the trust sufficient to enable the trust to repay the principal and interest due to the Company under the trust loans. As the loans are repaid, shares are released from the suspense account pro rata based on the portion of the aggregate loan payments that are paid during the year. The ESOP plan allows dividends on unallocated shares to be distributed to participants in cash, unless otherwise directed. ESOP shares released from the suspense account are allocated to participants on the basis of their relative taxable compensation in the year of allocation and/or on the participant’s account balance. If Servotronics shares are not readily tradeable on an established securities market at the times of an ESOP participant’s termination of employment or retirement and if such ESOP participant requests that his/her ESOP distributed shares be repurchased by the Company, the Company is obligated to do so. The Company’s shares currently trade on NYSE American. There were no outstanding shares subject to the repurchase obligation at December 31, 2021. Since inception of the ESOP, 384,014 shares have been allocated, exclusive of shares distributed to ESOP participants. At December 31, 2021 and 2020, 56,635 and 71,744 shares, respectively, remain unallocated. Related compensation expense associated with the Company’s ESOP, which is equal to the principal reduction on the loans receivable from the trust, amounted to approximately $101,000 in both 2021 and 2020. Included as a reduction to shareholders’ equity is the ESOP trust commitment which represents the remaining indebtedness of the trust to the Company. Employees are entitled to vote allocated shares and the ESOP trustees are entitled to vote unallocated shares and those allocated shares not voted by the employees. Other Postretirement Benefit Plans The Company provides certain postretirement health and life insurance benefits for two former executives of the Company (the Plan). Upon ceasing employment with the Company, the Company will pay the annual cost of health insurance coverage and provide life insurance at the same level of coverage that was being provided to the former employee at the time of termination of employment with the Company. The Plan also provides a benefit to reimburse the participants for certain out-of-pocket medical or health related expenses. The retirees’ insurance benefits cease upon the death of the former executive. The Plan is unfunded and the actuarially determined future accumulated postretirement benefit obligation at December 31, 2021 and 2020 was approximately $5,865,000 and $2,529,000, respectively. Amounts recognized in the balance sheets at December 31, 2021 and 2020 consist of the following: December 31, December 31, 2021 2020 Current portion - retirement benefits and other $ 136,000 $ — Long-term liabilities - retirement benefits and other 5,729,000 2,529,000 $ 5,865,000 $ 2,529,000 Accumulated other comprehensive loss, before income taxes: Net actuarial loss $ 4,947,000 $ 1,716,000 The estimated net loss to be amortized from AOCI to benefit cost during 2022 is approximately $151,000. Among other changes in actuarial estimates, a significant portion of the increase in actuarial loss in 2021 was due to an executive covered by the plan ceasing employment with the Company at a time earlier than previously estimated, as well as the increase in health related reimbursements to the former employee. The actuarial loss is being amortized based on the expected lifetimes of the former executives. A reconciliation of the beginning and ending balances of accumulated postretirement benefit obligations is as follows: December 31, December 31, 2021 2020 Accumulated postretirement benefit obligations at the beginning of the year $ 2,529,000 $ 2,126,000 Service Cost 46,000 38,000 Interest Cost 65,000 70,000 Actuarial loss 3,308,000 357,000 Benefits paid (83,000) (62,000) Accumulated postretirement benefit obligations at the end of the year $ 5,865,000 $ 2,529,000 Financial information for this Plan for the year ended December 31, 2021 and 2020 is as follows: December 31, December 31, 2021 2020 Service Cost $ 46,000 $ 38,000 Interest Cost 65,000 70,000 Recognized actuarial loss 77,000 60,000 Pension cost $ 188,000 $ 168,000 Company contribution and benefits paid $ 83,000 $ 95,000 The Company estimates it will make contributions to the plan to fund the payments of benefits of approximately $146,000 in 2022. Assumptions used as of and for the years ended December 31, 2021 and 2020 are as follows: December 31, December 31, 2021 2020 Discount rate used in determining Benefit obligation 2.750 % 2.625 % Pension cost 2.625 % 3.375 % Assumed healthcare cost trend rate is estimated at 10% for the first year and then grading down by 0.5% for each year subsequent until a floor of 5% is reached in 2032. The assumption for mortality uses the PriH – 2012 with an improvement scale of MP 2021 (for 2020 the MP 2020 improvement scale was used). The effect of a one-percentage-point increase and a one-percentage-point decrease in the assumed health care cost trend rates on the aggregate of the service and interest cost components of net periodic postretirement health care benefit costs and the accumulated postretirement benefit obligation for health care benefits are as follows: December 31, December 31, 2021 2020 Effect of 1% increase in health care trend rates: Benefit obligation $ 1,078,000 $ 465,000 Aggregate of service and interest cost $ 29,000 $ 28,000 Effect of 1% decrease of health care trend rates: Benefit obligation $ (853,000) $ (356,000) Aggregate of service and interest cost $ (21,000) $ (20,000) The Company is expected to make benefit payments as of December 31, 2021: Years ending December 31, 2022 $ 146,000 2023 156,000 2024 167,000 2025 178,000 2026 188,000 2027 - 2031 $ 1,083,000 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Taxes | |
Income Taxes | 6. Income Taxes The income tax provision from operations included in the consolidated statements of income consists of the following: Years Ended December 31, December 31, 2021 2020 ($000’s omitted) Current: Federal $ 41 $ (47) State — (24) 41 (71) Deferred: Federal (84) 33 State — — (84) 33 $ (43) $ (38) The reconciliation of the federal statutory income tax rate to the Company’s effective tax rate based upon the total income tax provision from operations is as follows: Years Ended December 31, December 31, 2021 2020 Federal statutory rate 21.0 % 21.0 % Permanent non-taxable income 0.9 % 105.8 % PPP Loan Forgiveness (20.9) % 0.0 % Business credits (2.2) % (61.7) % ESOP dividend 0.0 % 0.0 % Stock compensation (0.1) % (7.6) % Foreign-derived intangible income deduction 0.0 % (55.7) % State taxes, net of federal benefit 0.0 % (28.7) % Other 0.2 % (34.4) % (1.1) % (61.3) % At December 31, 2021 and 2020, the deferred tax assets (liabilities) were comprised of the following: Years Ended December 31, December 31, 2021 2020 ($000’s omitted) Deferred Tax Assets: Inventories $ 326 $ 455 Accrued employees compensation and benefits costs 444 397 Postretirement obligation (accumulated other comprehensive income) 1,039 360 Warranty reserve 107 80 Operating loss carryforward 147 147 Bad debt reserve 28 40 Other 104 67 Total deferred tax assets 2,195 1,546 Valuation allowance (147) (147) Net deferred tax assets 2,048 1,399 Deferred tax liabilities: Prepaid expenses (126) (62) Property, plant and equipment (1,022) (1,200) Total deferred tax liabilities (1,148) (1,262) Net deferred tax assets $ 900 $ 137 In assessing the ability of the Company to realize the benefit of the 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. Based upon the level of historical taxable income, the opportunity for net operating loss carrybacks, and projections for future taxable income over the periods which deferred tax assets are deductible, management believes it is more likely than not the Company will generate sufficient taxable income to realize the benefits of these deductible differences at December 31, 2021, except for a valuation allowance of $147,000 ($147,000 – 2020) related to certain state tax credit carryforwards. At December 31, 2021, the Company had a New York state tax credit carryforward of approximately $147,000 ($147,000 – 2020), which begins to expire in 2023. There are no uncertain tax positions or unrecognized tax benefits for 2021 and 2020. The Company is subject to routine audits of its tax returns by the Internal Revenue Service and various state taxing authorities. The 2018 through 2021 federal and state tax returns remain subject to examination. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2021 | |
Shareholders' Equity | |
Shareholders' Equity | 7. Shareholders’ Equity Years Ended December 31, 2020 and 2021 Accumulated Other Capital in Total Retained Comprehensive Common excess of Treasury shareholders' Earnings Income Stock par value ESOT stock equity December 31, 2019 $ 21,703 $ (1,121) $ 523 $ 14,358 $ (460) $ (1,471) $ 33,532 Retirement benefits adjustment — (235) — — 101 — (134) Stock based compensation — — — 123 — 216 339 Purchase of treasury shares — — — — — (100) (100) Net Income 100 — — — — — 100 December 31, 2020, as restated $ 21,803 $ (1,356) $ 523 $ 14,481 $ (359) $ (1,355) $ 33,737 Retirement benefits adjustment — (2,552) — — 101 — (2,451) Stock based compensation — — — 19 — 87 106 Purchase of treasury shares — — — — — (81) (81) Net Income 4,055 — — — — — 4,055 December 31, 2021 $ 25,858 $ (3,908) $ 523 $ 14,500 $ (258) $ (1,349) $ 35,366 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 December 31, 2021, the Company has purchased 360,615 shares and there remain 89,385 shares available to purchase under this program. There were no shares purchased by the Company in 2021. On January 1, 2021, 25,250 shares of restricted stock vested of which 9,920 shares were withheld by the Company for approximately $81,000 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 was approximately $735,000 and has been 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 13,160 restricted shares were issued on May 14, 2021 with a grant date fair value of $100,000. Included in the years ended December 31, 2021 and 2020 is approximately $106,000 and $339,000, respectively, of stock-based compensation expense related to the restrictive share awards. There is approximately $50,000 of stock based compensation expense related to unvested shares to be recognized in 2022. Earnings Per Share Basic earnings per share is computed by dividing net income 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 income 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. The dilutive effect of unvested restrictive stock is determined using the treasury stock method. December 31, December 31, 2021 2020 ($000's omitted except for per share data) Net Income $ 4,055 $ 100 Weighted average common shares outstanding (basic) 2,411 2,366 Unvested restricted stock 7 31 Weighted average common shares outstanding (diluted) 2,418 2,397 Basic Net income per share $ 1.68 $ 0.04 Diluted Net income per share $ 1.68 $ 0.04 Share Based Payments The Company's 2012 Long-Term Incentive Plan was approved by the shareholders at the 2012 Annual Meeting of Shareholders. This plan authorizes the issuance of up to 300,000 shares. As of December 31, 2021, there is no unrecognized compensation related to the unvested restricted shares vested on January 1, 2021. A summary of the status of restricted share awards granted under all employee plans is presented below: Weighted Average Grant Shares Date Fair Value Restricted Share Activity: Unvested at December 31, 2019 54,416 $ 9.58 Granted in 2020 11,328 $ 8.83 Forfeited in 2020 — — Vested in 2020 34,830 $ 9.11 Unvested at December 31, 2020 30,914 $ 9.24 Granted in 2021 13,160 $ 7.60 Forfeited in 2021 — — Vested in 2021 37,498 $ 8.95 Unvested at December 31, 2021 6,576 $ 7.60 Shareholders’ Rights Plan During 2012, the Company’s Board of Directors adopted a shareholders’ rights plan (the “Rights Plan”) and simultaneously declared a dividend distribution of one right for each outstanding share of the Company’s common stock outstanding at October 15, 2012. The Rights Plan replaced a previous shareholders rights plan that was adopted in 2002 and expired on August 28, 2012. The rights do not become exercisable until the earlier of (i) the date of the Company’s public announcement that a person or affiliated group other than the ESOP trust (an “Acquiring Person”) has acquired, or obtained the right to acquire, beneficial ownership of 25% or more of the Company’s common stock (excluding shares held by the ESOP trust) or (ii) ten The exercise price of a right has been established at $32.00. Once exercisable, each right would entitle the holder to purchase one two |
Litigation
Litigation | 12 Months Ended |
Dec. 31, 2021 | |
Litigation | |
Litigation | 8. Litigation In the course of its business, the Company is subject to a variety of claims and lawsuits that are inherently subject to many uncertainties regarding the possibility of a loss to the Company. Because litigation outcomes are inherently unpredictable, the Company’s evaluation of legal proceedings often involves a series of complex assessments by management, after consulting with legal counsel, about future events and can rely heavily on estimates and assumptions. The Company carries liability insurance, subject to certain deductibles and policy limits, for such claims as they arise and may from time to time establish reserves for litigation that is considered probable of a loss. The Company does not accrue liabilities when the likelihood that the liability has been incurred is probable but the amount cannot be reasonably estimated, or when the liability is believed to be only reasonably possible or remote. On June 7, 2021, a Summons and Complaint was filed by an employee in the Supreme Court of the State of New York, County of Erie, against Servotronics, Inc., the Servotronics Board of Directors, The Ontario Knife Company and Kenneth D. Trbovich (collectively, the “Defendants”). The Complaint alleges certain violations under the New York Human Rights Law by the Defendants relating to the employee’s employment by the Company as well as intentional and negligent infliction of emotional distress. The complaint also alleges certain purported derivative causes of action against all Defendants, including breach of fiduciary duties, fraud and corporate waste. The complaint seeks monetary damages in an amount not less than $5,000,000 with respect to the direct causes of action and equitable relief with respect to the purported derivative causes of action. The Defendants filed a motion to dismiss the Complaint on August 6, 2021. On January 13, 2022, the Defendants’ motion to dismiss was granted, in part, and denied, in part. This litigation is still in its earliest stages. Based on the information known by the Company as of the date of this filing, the Company does not consider the risk of loss to be probable and is unable to reasonably or accurately estimate the likelihood and amount of any liability that may be realized as a result of this litigation. Accordingly, no loss has been recognized in the accompanying financials statements related to this litigation. The Company intends to vigorously defend against this litigation. On November 3, 2021, the Company entered into a Settlement Agreement and Release (the “November 3, 2021 Settlement Agreement”) to settle all claims relative to a dispute for work performed by an independent contractor for the Company’s wholly-owned subsidiary, The Ontario Knife Company. The Summons and Complaint had been filed on March 3, 2016 in New York State Supreme Court, Erie County. The Plaintiff alleged that the Company had used the trade secret of the Plaintiff. Alleged damages was in the amount of $750,000. The Company denied all of the Plaintiff’s allegations. Substantive settlement negotiations were conducted by the parties under the Court’s guidance and supervision, which resulted in a settlement wherein the Company agreed to pay the sum of $90,000 in cash to the Plaintiff in return for the execution of a General Release to the Company, releasing the Company from any and all claims. The November 3, 2021 Settlement Agreement also acknowledged that the agreement reached thereunder was not an admission of liability on the part of the Company. On November 30, 2021, the Company entered into a Settlement Agreement and Release (the “Settlement Agreement”) by and among the Company, Aero Metal Products, Inc. (“AMP”), a wholly owned subsidiary of the Company, and Aero, Inc. (“Aero”) to settle all claims and counterclaims related to a lawsuit filed by Aero against the Company and AMP, on July 19, 2013 in the Supreme Court of the State of New York, County of Erie (the “Lawsuit”). Pursuant to the Settlement Agreement, the Company agreed to pay Aero $1,800,000 in cash and the parties have agreed to dismiss the Lawsuit, with prejudice. In addition, the Company and Aero each agreed to release the other party from certain claims, including those arising out of the Lawsuit. The sole shareholder of Aero, Inc. is the wife of a former executive officer, who is the brother of a member of the Company’s Board of Directors. The Settlement Agreement was unanimously approved by the Company’s Board of Directors. The Settlement Agreement does not constitute an admission of liability, culpability, negligence, or wrongdoing on the part of the Company or AMP. The Company believes the settlement is in the best interests of the Company and its shareholders. The settlement reflects the Company’s desire to forgo further litigation uncertainty, risk, expense, and potential damages, and to eliminate further distraction from business focus associated with continuing lengthy and complex litigation and possible appeals. On December 21, 2021, the Company’s former Chief Executive Officer (“Former CEO”) delivered his Notice of Termination and alleged that the Company breached the terms of the Employment Agreement between the Company and the Former CEO by, among others, placing the Former CEO on paid administrative leave pending an internal investigation in June 2021. On December 22, 2021, the Board of Directors accepted the Former CEO’s resignation from the Company but rejected his request to treat his resignation as resignation for good reason under Paragraph 10 of his Employment Agreement. The Board also determined, based on the findings of its investigation, that the Former CEO committed willful malfeasance in violation of his Employment Agreement, and that such willful malfeasance would have justified termination of employment pursuant to Paragraph 9 of the Employment Agreement, but for his earlier resignation. The Former CEO claims that he is entitled to a severance payment equal to 2.99 times his average annual compensation as set forth in the Employment Agreement, plus the reimbursement of certain expenses and the value of any lost benefits. As noted above, the Board of Directors rejected the Former CEO’s claim that the Company breached the Employment Agreement. Accordingly, the Company is classifying the Former CEO’s termination as a voluntary resignation for which no severance is due. The Employment Agreement provides that disputes arising thereunder shall be settled by arbitration. To date, neither party has commenced an arbitration proceeding with respect to these matters. Based on the information known by the Company as of the date of this filing, if a claim is ultimately asserted, the Company does not consider the risk of loss to be probable and is unable to reasonably or accurately estimate the likelihood and amount of any liability that may be realized with respect to this matter. 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 | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions | |
Related Party Transactions | 9. Related Party Transactions The Company paid legal fees and disbursements of approximately $85,000 and $183,000 in the year ended December 31, 2021 and 2020, respectively, for services provided by a law firm that is owned by a member of the Company’s Board of Directors. Additionally, the Company had accrued unbilled legal fees at December 31, 2021 and 2020 of approximately $15,000 and $19,000, respectively, with this firm. |
Business Segments
Business Segments | 12 Months Ended |
Dec. 31, 2021 | |
Business Segments | |
Business Segments | 10. Business Segments The Company operates in two business segments, Advanced Technology Group (“ATG”) and Consumer Products Group (“CPG”). The Company’s reportable segments are strategic business units that offer different products and services. The segments are composed of separate corporations and operations 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 prime government contractors, 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. Information regarding the Company’s operations in these segments is summarized as follows ($000’s omitted): ($000's omitted except per share data) ATG CPG Consolidated Years Ended Years Ended Years Ended December 31, December 31, December 31, 2021 2020 2021 2020 2021 2020 Revenues from unaffiliated customers $ 31,677 $ 40,782 $ 8,881 $ 9,062 $ 40,558 $ 49,844 Cost of goods sold, inclusive of depreciation (25,929) (33,440) (8,641) (8,164) (34,570) (41,604) Gross margin 5,748 7,342 240 898 5,988 8,240 Gross margin % 18.1 % 18.0 % 2.7 % 9.9 % 14.8 % 16.5 % Operating expenses: Selling, general and administrative (7,661) (6,245) (1,762) (1,753) (9,423) (7,998) Legal settlement awards (1,800) — (90) — (1,890) — Total operating expenses (9,461) (6,245) (1,852) (1,753) (11,313) (7,998) Operating (loss)/income (3,713) 1,097 (1,612) (855) (5,325) 242 Other income/(expense): Other income: employee retention credit (ERC) 4,584 — 1,038 — 5,622 — Other income: PPP loan forgiveness 4,000 — — — 4,000 — Interest expense (185) (170) (2) (10) (187) (180) Loss on sale of equipment (98) — — — (98) — Total other income/(expense) 8,301 (170) 1,036 (10) 9,337 (180) Income (loss) before income tax provision 4,588 927 (576) (865) 4,012 62 Income tax provision expense/(benefit) 78 492 (121) (530) (43) (38) Net income/(loss) $ 4,510 $ 435 $ (455) $ (335) $ 4,055 $ 100 |
Business Description and Summ_2
Business Description and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Business Description and Summary of Significant Accounting Policies | |
Business Description | Business Description Servotronics, Inc. is a manufacturer of highly engineered critical components and customized technology solutions for the global aerospace and aviation industry. The Ontario Knife Company, a wholly owned subsidiary of Servotronics, Inc. manufactures consumer products consisting of knives and various types of cutlery and other edged products. In March 2020, the World Health Organization declared the outbreak of the novel coronavirus (COVID-19) a pandemic, resulting in certain local government-mandated restrictions. Although both segments were deemed essential, we experienced disruption in our operations due to the push-out of orders by our customers, elevated safety standards to keep our employees safe, and supply chain challenges. The Company continues to face certain risks and uncertainties resulting from COVID-19, including the severity of a resurgence of COVID-19 or new strains of the virus, the timing, effectiveness and availability of, and people’s receptivity to, COVID-19 vaccines or other potential remedies, and impacts from potential mandatory vaccination requirements. Due to these uncertainties, the severity and extent of future impacts from COVID-19 or any new strains of the virus cannot be reasonably estimated at this time. |
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 $131,000 at December 31, 2021 and $188,000 at December 31, 2020. The Company does not accrue interest on past due receivables. |
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. Shipping and handling activities that occur after the customer obtains control of the promised goods are considered fulfillment activities. 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 December 31, 2021 and December 31, 2020 under the guidance of ASC460 the Company has recorded a warranty reserve of approximately $511,000 and $382,000, respectively. This amount is reflected in other accrued expenses in the accompanying consolidated balance sheets. Revenue is recognized on repair returns, covered under a customer contract, at the contractual price upon shipment to the customer. |
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 net realizable value adjustments and inventory determined to be slow moving are applied to the gross value of the inventory through a reserve of approximately $1,742,000 and $1,720,000 at December 31, 2021 and December 31, 2020, 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 two years of customer requirements. Also, in order to maintain a reasonable and/or agreed to lead time or minimum stocking requirements, certain larger quantities of other product support items may have to be purchased and may result in over one year’s supply. |
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 tax purposes. Depreciation expense includes the amortization of finance lease assets. 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 returns, combined New York, Texas, California and Connecticut state income tax returns and a separate Arkansas state income tax return. 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 December 31, 2021 or December 31, 2020, and did not recognize any interest and/or penalties in its consolidated statements of income during the years ended December 31, 2021 and 2020. The Company did not have any material uncertain tax positions or unrecognized tax benefits or obligations as of December 31, 2021 and December 31, 2020. The 2018 through 2021 federal and state tax returns remain subject to examination. |
Supplemental Cash Flow Information | Supplemental Cash Flow Information Income taxes paid, net of a refund, for the years ended December 31, 2021 and 2020 amounted to approximately $345,000 and $40,000, respectively. Interest paid, for the years ended December 31, 2021 and 2020 amounted to approximately $187,000 and $180,000, respectively. |
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 December 31, 2021 and December 31, 2020. |
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. |
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. The Company had sales of advanced technology products to two customers, including various divisions and subsidiaries of a common parent company, which represented more than 10% of consolidated revenues in 2021. In both 2021 and 2020 we had a concentration of sales to Customer A and Customer B representing approximately 52.6% and 49.0% of our consolidated sales, respectively. No other customers of the ATG or CPG represented more than 10% of the Company’s consolidated revenues in either of these years . Refer to Note 10, Business Segments, for disclosures related to business segments of the Company. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments 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. |
Recent Accounting Pronouncements Adopted | Recent Accounting Pronouncements Adopted In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, |
Business Description and Summ_3
Business Description and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Business Description and Summary of Significant Accounting Policies | |
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 (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Inventories | |
Schedule of inventories | December 31, December 31, 2021 2020 ($000's omitted) Raw material and common parts $ 15,952 $ 16,989 Work-in-process 3,432 4,273 Finished goods 2,490 3,864 21,874 25,126 Less inventory reserve (1,742) (1,720) Total inventories $ 20,132 $ 23,406 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment | |
Schedule of property, plant and equipment | December 31, December 31, 2021 2020 ($000's omitted) Land $ 7 $ 7 Buildings 11,363 11,359 Machinery, equipment and tooling 20,689 21,146 Construction in progress 414 198 32,473 32,710 Less accumulated depreciation and amortization (21,916) (20,693) Property, plant and equipment, net $ 10,557 $ 12,017 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Long-Term Debt | |
Schedule of long-term debt | December 31, December 31, 2021 2020 ($000's omitted) Paycheck protection program payable to financial institutions: Interest rate of 1% per annum. $ — $ 4,000 Line of credit payable to a financial institution; Interest rate option of bank prime or Libor plus 2.15000% (B) (C) 4,250 3,750 Term loan payable to a financial institution; Interest rate option of bank prime or Libor plus 1.554750%, monthly principal payments of $21,833 through 2021 with a balloon payment of $786,000 made December 1, 2021 (C). — 1,048 Term loan payable to a financial institution; Interest rate option of bank prime or Libor plus 1.554750%, monthly principal payments of $23,810 through 2021 (C). — 286 Equipment note obligations; Interest rate fixed for term of each funding based upon the Lender's lease pricing at time of funding. (Interest rate/factor 1.79553% - 1.835015% as of December 31, 2021) (D) 712 534 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)(E) 64 310 5,026 9,928 Less current portion (276) (2,635) Long term debt $ 4,750 $ 7,293 A.) On April 21, 2020, the Company executed a promissory note (the “Note”) in the amount of $4,000,000 as part of the Paycheck Protection Program (the “PPP” Loan) administered by the Small Business Administration (the “SBA”) and authorized under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). The PPP Loan was being made through Bank of America, NA (the “Lender”). The term of the PPP Loan was two years with an annual interest rate of 1.00%. Payments on the unforgiven amount of prinicipal, if any, and interest on the PPP Loan were deferred until the date on which the loan forgiveness was detemined. The Company used approximately 60% of the PPP Loan proceeds to pay for payroll costs and the balance on other eligible qualifying expenses consistent with the terms of the PPP and submitted its forgiveness application to the Lender during the third quarter of 2021. During the third quarter, the entire loan in the amount of $4,000,000 and the accrued interest of $57,000 was forgiven by the SBA and a gain of $4,057,000 was recorded in “Other income/(expense)” in the Company’s consolidated statements of operations. B.) As of March 20, 2020, the Company has a $6,000,000 line of credit. Through December 31, 2021, the interest rate is a rate per year equal to the bank’s prime rate or Libor plus 2.15%. In addition, effective December 20, 2021, the Company is required to pay a commitment fee of 0.25% on the unused portion of the line of credit. On January 11, 2022, the Company executed an amendment to the loan agreement, which extended the line of credit availability period from December 31, 2022 to December 31, 2023. The amended agreement suspended the Debt Service Coverage Ratio loan covenant up through and including the third quarter of 2022. A Quarterly Minimum Cash Flow measurement loan covenant replaced the Debt Service Coverage Ratio loan covenant. Minimum Cash Flow means net income, plus depreciation, depletion, and amortization expense, plus interest expense, plus non-cash expense related to the Servotronics, Inc. Employee Stock Ownership Plan, plus non-cash stock and stock option transactions. Through the third quarter of 2022, the amended agreement requires the Company to maintain a minimum liquidity, defined as cash on hand plus line of credit availability of at least $9,000,000. The interest rate is a rate per year equal to the sum of (i) the greater of the Bloomberg’s Short-Term Bank Yield (BSBY) Daily Floating Rate or the Index Floor, plus (ii) 1.65 percentage point(s). For purposes of this paragraph, “Index Floor” means 0.5 percent. The line of credit is secured by all personal property of the Company with the exception of certain equipment that was purchased from proceeds of government grants. There was $4,250,000 balance outstanding at December 31, 2021 and $3,750,000 balance at December 31, 2020. C.) The term loans were and the line of credit is 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 December 31, 2021 and December 31, 2020 the Company was in compliance with these covenants. D.) The Company had an equipment loan facility in the amount of $1,000,000 available until July 9, 2021. This line was non-revolving and non-renewable. The loan term for the equipment covered by the agreement is 60 months . Monthly payments are fixed for the term of each funding based upon the Lender’s lease pricing in effect at the time of such funding. During the year ended December 31, 2021, approximately $384,000 was drawn on this facility. There was approximately $712,000 outstanding at December 31, 2021 and $534,000 balance outstanding at December 31, 2020. E.) 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 was non-revolving and non-renewable. The lease term for equipment covered by the lease line of credit is 60 months . Monthly payments are 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 $64,000 outstanding at December 31, 2021 and $310,000 at December 31, 2020. |
Schedule of payments for capital lease obligations | December 31, Year 2021 ($000's omitted) 2022 296 2023 246 2024 192 2025 83 2026 11 Total principal and interest payments 828 Less amount representing interest (52) Present value of net minimum lease payments 776 Less current portion (276) Long term principle payments $ 500 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Employee Benefit Plans | |
Schedule of amounts recognized in the balances sheets | December 31, December 31, 2021 2020 Current portion - retirement benefits and other $ 136,000 $ — Long-term liabilities - retirement benefits and other 5,729,000 2,529,000 $ 5,865,000 $ 2,529,000 Accumulated other comprehensive loss, before income taxes: Net actuarial loss $ 4,947,000 $ 1,716,000 |
Schedule of beginning and ending balances of accumulated postretirement benefit obligations | December 31, December 31, 2021 2020 Accumulated postretirement benefit obligations at the beginning of the year $ 2,529,000 $ 2,126,000 Service Cost 46,000 38,000 Interest Cost 65,000 70,000 Actuarial loss 3,308,000 357,000 Benefits paid (83,000) (62,000) Accumulated postretirement benefit obligations at the end of the year $ 5,865,000 $ 2,529,000 |
Schedule of financial information for this Plan | December 31, December 31, 2021 2020 Service Cost $ 46,000 $ 38,000 Interest Cost 65,000 70,000 Recognized actuarial loss 77,000 60,000 Pension cost $ 188,000 $ 168,000 Company contribution and benefits paid $ 83,000 $ 95,000 |
Schedule of assumptions used as of and for the years | December 31, December 31, 2021 2020 Discount rate used in determining Benefit obligation 2.750 % 2.625 % Pension cost 2.625 % 3.375 % |
Schedule of one-percentage-point increase and a one-percentage-point decrease in the assumed health care cost trend rates on the aggregate of the service and interest cost components of net periodic postretirement health care benefit costs and the accumulated postretirement benefit obligation for health care benefits | December 31, December 31, 2021 2020 Effect of 1% increase in health care trend rates: Benefit obligation $ 1,078,000 $ 465,000 Aggregate of service and interest cost $ 29,000 $ 28,000 Effect of 1% decrease of health care trend rates: Benefit obligation $ (853,000) $ (356,000) Aggregate of service and interest cost $ (21,000) $ (20,000) |
Schedule of benefit payments | Years ending December 31, 2022 $ 146,000 2023 156,000 2024 167,000 2025 178,000 2026 188,000 2027 - 2031 $ 1,083,000 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Taxes | |
Schedule of income tax provision for income taxes from continuing operations | Years Ended December 31, December 31, 2021 2020 ($000’s omitted) Current: Federal $ 41 $ (47) State — (24) 41 (71) Deferred: Federal (84) 33 State — — (84) 33 $ (43) $ (38) |
Schedule of the reconciliation of effective tax rate from continuing operations and the federal statutory income tax rate | Years Ended December 31, December 31, 2021 2020 Federal statutory rate 21.0 % 21.0 % Permanent non-taxable income 0.9 % 105.8 % PPP Loan Forgiveness (20.9) % 0.0 % Business credits (2.2) % (61.7) % ESOP dividend 0.0 % 0.0 % Stock compensation (0.1) % (7.6) % Foreign-derived intangible income deduction 0.0 % (55.7) % State taxes, net of federal benefit 0.0 % (28.7) % Other 0.2 % (34.4) % (1.1) % (61.3) % |
Schedule of deferred tax assets (liabilities) | Years Ended December 31, December 31, 2021 2020 ($000’s omitted) Deferred Tax Assets: Inventories $ 326 $ 455 Accrued employees compensation and benefits costs 444 397 Postretirement obligation (accumulated other comprehensive income) 1,039 360 Warranty reserve 107 80 Operating loss carryforward 147 147 Bad debt reserve 28 40 Other 104 67 Total deferred tax assets 2,195 1,546 Valuation allowance (147) (147) Net deferred tax assets 2,048 1,399 Deferred tax liabilities: Prepaid expenses (126) (62) Property, plant and equipment (1,022) (1,200) Total deferred tax liabilities (1,148) (1,262) Net deferred tax assets $ 900 $ 137 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Shareholders' Equity | |
Schedule of stockholders equity | Years Ended December 31, 2020 and 2021 Accumulated Other Capital in Total Retained Comprehensive Common excess of Treasury shareholders' Earnings Income Stock par value ESOT stock equity December 31, 2019 $ 21,703 $ (1,121) $ 523 $ 14,358 $ (460) $ (1,471) $ 33,532 Retirement benefits adjustment — (235) — — 101 — (134) Stock based compensation — — — 123 — 216 339 Purchase of treasury shares — — — — — (100) (100) Net Income 100 — — — — — 100 December 31, 2020, as restated $ 21,803 $ (1,356) $ 523 $ 14,481 $ (359) $ (1,355) $ 33,737 Retirement benefits adjustment — (2,552) — — 101 — (2,451) Stock based compensation — — — 19 — 87 106 Purchase of treasury shares — — — — — (81) (81) Net Income 4,055 — — — — — 4,055 December 31, 2021 $ 25,858 $ (3,908) $ 523 $ 14,500 $ (258) $ (1,349) $ 35,366 |
Schedule of earnings per share | December 31, December 31, 2021 2020 ($000's omitted except for per share data) Net Income $ 4,055 $ 100 Weighted average common shares outstanding (basic) 2,411 2,366 Unvested restricted stock 7 31 Weighted average common shares outstanding (diluted) 2,418 2,397 Basic Net income per share $ 1.68 $ 0.04 Diluted Net income per share $ 1.68 $ 0.04 |
Schedule of summary of the status of restricted share awards granted | Weighted Average Grant Shares Date Fair Value Restricted Share Activity: Unvested at December 31, 2019 54,416 $ 9.58 Granted in 2020 11,328 $ 8.83 Forfeited in 2020 — — Vested in 2020 34,830 $ 9.11 Unvested at December 31, 2020 30,914 $ 9.24 Granted in 2021 13,160 $ 7.60 Forfeited in 2021 — — Vested in 2021 37,498 $ 8.95 Unvested at December 31, 2021 6,576 $ 7.60 |
Business Segments (Tables)
Business Segments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Business Segments | |
Schedule of information regarding operations in business segment | Information regarding the Company’s operations in these segments is summarized as follows ($000’s omitted): ($000's omitted except per share data) ATG CPG Consolidated Years Ended Years Ended Years Ended December 31, December 31, December 31, 2021 2020 2021 2020 2021 2020 Revenues from unaffiliated customers $ 31,677 $ 40,782 $ 8,881 $ 9,062 $ 40,558 $ 49,844 Cost of goods sold, inclusive of depreciation (25,929) (33,440) (8,641) (8,164) (34,570) (41,604) Gross margin 5,748 7,342 240 898 5,988 8,240 Gross margin % 18.1 % 18.0 % 2.7 % 9.9 % 14.8 % 16.5 % Operating expenses: Selling, general and administrative (7,661) (6,245) (1,762) (1,753) (9,423) (7,998) Legal settlement awards (1,800) — (90) — (1,890) — Total operating expenses (9,461) (6,245) (1,852) (1,753) (11,313) (7,998) Operating (loss)/income (3,713) 1,097 (1,612) (855) (5,325) 242 Other income/(expense): Other income: employee retention credit (ERC) 4,584 — 1,038 — 5,622 — Other income: PPP loan forgiveness 4,000 — — — 4,000 — Interest expense (185) (170) (2) (10) (187) (180) Loss on sale of equipment (98) — — — (98) — Total other income/(expense) 8,301 (170) 1,036 (10) 9,337 (180) Income (loss) before income tax provision 4,588 927 (576) (865) 4,012 62 Income tax provision expense/(benefit) 78 492 (121) (530) (43) (38) Net income/(loss) $ 4,510 $ 435 $ (455) $ (335) $ 4,055 $ 100 |
Business Description and Summ_4
Business Description and Summary of Significant Accounting Policies - Estimated useful lives of depreciable properties (Details) | 12 Months Ended |
Dec. 31, 2021 | |
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, equipment and tooling | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of depreciable properties | 5 years |
Machinery, equipment and tooling | 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 - Additional Information (Details) | 12 Months Ended | ||
Dec. 31, 2021USD ($)Ycustomer | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Allowance for doubtful accounts | $ 131,000 | $ 188,000 | |
Warranty reserve | 511,000 | 382,000 | |
Inventory reserve | $ 1,742,000 | 1,720,000 | |
Warranty period | 27 months | ||
Income taxes paid, net of refund | $ 345,000 | 40,000 | |
Interest paid | $ 187,000 | 180,000 | |
Impairment of long-lived assets | $ 0 | $ 0 | |
Concentration risk, benchmark description | No other customers of the ATG or CPG represented more than 10% of the Company’s consolidated revenues in either of these years | ||
Minimum | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Number of years of customer requirements | Y | 2 | ||
Number of year's supply | Y | 1 | ||
Customer Concentration Risk | Advanced Technology Products | Sales Revenue | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Number of customers | customer | 2 | ||
Customer Concentration Risk | Advanced Technology Products | Sales Revenue | Two Customers | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Concentration risk, benchmark description | more than 10% | ||
Customer Concentration Risk | Advanced Technology Products | Sales Revenue | Customer A | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Concentration Risk, Percentage | 52.60% | 49.00% | |
Customer Concentration Risk | Advanced Technology Products | Sales Revenue | Customer B | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Concentration Risk, Percentage | 52.60% | 49.00% |
Inventories - Summary of invent
Inventories - Summary of inventories (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Inventories | ||
Raw material and common parts | $ 15,952,000 | $ 16,989,000 |
Work-in-process | 3,432,000 | 4,273,000 |
Finished goods | 2,490,000 | 3,864,000 |
Inventory, Gross | 21,874,000 | 25,126,000 |
Less inventory reserve | (1,742,000) | (1,720,000) |
Total inventories | $ 20,132,000 | $ 23,406,000 |
Property, Plant and Equipment -
Property, Plant and Equipment - Summary of property, plant and equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Gross | $ 32,473 | $ 32,710 |
Less accumulated depreciation and amortization | (21,916) | (20,693) |
Total property, plant and equipment | 10,557 | 12,017 |
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 | 11,363 | 11,359 |
Machinery, equipment and tooling | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Gross | 20,689 | 21,146 |
Construction in progress (CIP) | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Gross | $ 414 | $ 198 |
Property, Plant and Equipment_2
Property, Plant and Equipment - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | ||
Depreciation and amortization expense | $ 1,368,000 | $ 1,442,000 |
Depreciation | 1,310,000 | 1,368,000 |
Amortization expense | 58,000 | 74,000 |
Property, plant and equipment, Gross | 32,473,000 | 32,710,000 |
Machinery, equipment and tooling | ||
Property, Plant and Equipment [Line Items] | ||
ROU assets | 209,000 | 610,000 |
Property, plant and equipment, Gross | 20,689,000 | 21,146,000 |
ATG | ||
Property, Plant and Equipment [Line Items] | ||
Construction in progress | 414,000 | $ 198,000 |
ATG | Construction in progress (CIP) machinery & equipment and self-constructed assets | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Gross | 304,000 | |
ATG | Construction in progress (CIP) computer equipment and software | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Gross | $ 110,000 |
Long-Term Debt - Summary of lon
Long-Term Debt - Summary of long term debt (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Instrument | ||
Long-term debt, Total | $ 5,026 | $ 9,928 |
Less current portion | (276) | (2,635) |
Long-term debt | 4,750 | 7,293 |
PPP Loan | ||
Debt Instrument | ||
Long-term debt, Total | 4,000 | |
Line of credit payable to a financial institution; Interest rate option of bank prime or Libor plus 2.15% (B)(C) | ||
Debt Instrument | ||
Long-term debt, Total | 4,250 | 3,750 |
Term loan payable to a financial institution; Interest rate option of bank prime or Libor plus 1.554750%, monthly principal payments of $21,833 through 2021 with a balloon payment of $786,000 made December 1, 2021 (C). | ||
Debt Instrument | ||
Long-term debt, Total | 1,048 | |
Term loan payable to a financial institution; Interest rate option of bank prime or Libor plus 1.554750%, monthly principal payments of $23,810 through 2021 (C). | ||
Debt Instrument | ||
Long-term debt, Total | 286 | |
Line Of Credit, Lease For Equipment | ||
Debt Instrument | ||
Long-term debt, Total | 712 | 534 |
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)(E) | ||
Debt Instrument | ||
Long-term debt, Total | $ 64 | $ 310 |
Long-Term Debt - Summary of l_2
Long-Term Debt - Summary of long term debt information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Instrument | ||
Spread on variable rate | 1.65% | |
PPP Loan | ||
Debt Instrument | ||
Percentage of fixed interest rate payable | 1.00% | |
Line of credit payable to a financial institution; Interest rate option of bank prime or Libor plus 2.15% (B)(C) | ||
Debt Instrument | ||
Spread on variable rate | 2.15% | |
Term loan payable to a financial institution; Interest rate option of bank prime or Libor plus 1.554750%, monthly principal payments of $21,833 through 2021 with a balloon payment of $786,000 made December 1, 2021 (C). | ||
Debt Instrument | ||
Monthly principal payments | $ 21,833 | |
Balloon payment due December 1, 2021 | $ 786,000,000 | |
Term loan payable to a financial institution; Interest rate option of bank prime or Libor plus 1.554750%, monthly principal payments of $23,810 through 2021 (C). | ||
Debt Instrument | ||
Spread on variable rate | 1.55475% | |
Monthly principal payments | $ 23,810,000 | |
Line Of Credit, Lease For Equipment | Minimum | ||
Debt Instrument | ||
Percentage of floating interest rate payable | 1.79553% | |
Line Of Credit, Lease For Equipment | Maximum | ||
Debt Instrument | ||
Percentage of floating interest rate payable | 1.83501% | |
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)(E) | Minimum | ||
Debt Instrument | ||
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)(E) | Maximum | ||
Debt Instrument | ||
Percentage of floating interest rate payable | 1.8693% | |
LIBOR | Line of credit payable to a financial institution; Interest rate option of bank prime or Libor plus 2.15% (B)(C) | ||
Debt Instrument | ||
Spread on variable rate | 2.15% | |
LIBOR | Term loan payable to a financial institution; Interest rate option of bank prime or Libor plus 1.554750%, monthly principal payments of $21,833 through 2021 with a balloon payment of $786,000 made December 1, 2021 (C). | ||
Debt Instrument | ||
Spread on variable rate | 1.55475% |
Long-Term Debt - Maturities (De
Long-Term Debt - Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Maturities - Topic 842 | ||
2022 | $ 296 | |
2023 | 246 | |
2024 | 192 | |
2025 | 83 | |
2026 | 11 | |
Total principal and interest payments | 828 | |
Less amount representing interest | (52) | |
Present value of net minimum lease payments | 776 | |
Less current portion | (276) | $ (301) |
Long-term principle payments | $ 500 | |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Long-Term Debt, Excluding Current Maturities |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Details) - USD ($) | Apr. 21, 2020 | Sep. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2022 | Mar. 20, 2020 |
Debt Instrument | ||||||
Paycheck Protection Program loan forgiveness | $ 4,000,000 | |||||
Long-term debt | 5,026,000 | $ 9,928,000 | ||||
Principal maturities of long-term debt for 2022 | 276,000 | |||||
Principal maturities of long-term debt for 2023 | 4,481,000 | |||||
Principal maturities of long-term debt for 2024 | 182,000 | |||||
Principal maturities of long-term debt for 2025 | 77,000 | |||||
Principal maturities of long-term debt for 2026 | $ 10,000 | |||||
Extinguishment Of Debt, Principal Amount | $ 4,000,000 | |||||
Extinguishment Of Debt, Accrued interest | 57,000 | |||||
Gain on paycheck Protection loan forgiveness | $ 4,057,000 | |||||
Spread on variable rate | 1.65% | |||||
Amount drawn | $ 500,000 | 750,000 | ||||
Index Floor | ||||||
Debt Instrument | ||||||
Debt Instrument, Index Floor Rate | 0.50% | |||||
PPP Loan | ||||||
Debt Instrument | ||||||
Debt Instrument, Face Amount | $ 4,000,000 | |||||
Debt Instrument, Term | 2 years | |||||
Percentage of fixed interest rate payable | 1.00% | |||||
Lease term for equipment covered by lease line of credit | 2 years | |||||
Percentage of loan used for payroll costs | 60.00% | |||||
Line of credit payable to a financial institution; Interest rate option of bank prime or Libor plus 2.15% (B)(C) | ||||||
Debt Instrument | ||||||
Maximum borrowing capacity | $ 6,000,000 | $ 2,021 | ||||
Commitment fee on unused portion of line of credit | 0.25% | |||||
Balance outstanding of line of credit | $ 9,000,000 | |||||
Long-term debt | $ 4,250,000 | $ 3,750,000 | ||||
Spread on variable rate | 2.15% | |||||
Long-term Line of Credit | $ 9,000,000 | |||||
Line Of Credit, Lease For Equipment | ||||||
Debt Instrument | ||||||
Maximum borrowing capacity | 712,000 | $ 534,000 | ||||
Balance outstanding of line of credit | $ 4,250,000 | 3,750,000 | ||||
Loan term for equipment covered by loan | 60 months | |||||
Long-term debt | $ 712,000 | 534,000 | ||||
Loan line of credit | 1,000,000 | |||||
Long-term Line of Credit | 4,250,000 | 3,750,000 | ||||
Amount drawn | $ 384,000 | |||||
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)(E) | ||||||
Debt Instrument | ||||||
Debt Instrument, Term | 60 months | |||||
Maximum borrowing capacity | $ 1,000,000 | |||||
Lease term for equipment covered by lease line of credit | 60 months | |||||
Long-term debt | $ 64,000 | 310,000 | ||||
Leases line of credit outstanding | $ 64,000 | 310,000 | ||||
PPP Loan | ||||||
Debt Instrument | ||||||
Percentage of fixed interest rate payable | 1.00% | |||||
Long-term debt | $ 4,000,000 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) | 12 Months Ended | |||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 1988 | Dec. 31, 1987 | Dec. 31, 2019 | Dec. 31, 1985 | |
Defined Benefit Plan Disclosure [Line Items] | ||||||
Amount borrowed | $ 2,000,000 | |||||
Employee stock ownership plan debt structure interest rate description | prime rate | |||||
Employee stock ownership plan, term of loan | 40 years | |||||
Employee stock ownership plan, amount of additional loan | $ 1,942,000 | $ 1,942,000 | ||||
Outstanding shares subject to repurchase obligation | 0 | |||||
ESOP, number of allocated shares since inception | 384,014 | |||||
ESOP, number of unallocated shares | 56,635 | 71,744 | ||||
ESOP, compensation expenses | $ 101,000 | $ 101,000 | ||||
Other Postretirement Benefit Plans, Defined Benefit | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Future obligation of benefits | 5,865,000 | 2,529,000 | $ 2,126,000 | |||
Benefit cost | 188,000 | $ 168,000 | ||||
Net loss to be amortized from AOCI to benefit cost | $ 151,000 | |||||
Medical inflation rate for next year | 10.00% | |||||
Grading down percentage for each year | 0.50% | |||||
Floor rate | 5.00% |
Employee Benefit Plans - Schedu
Employee Benefit Plans - Schedule of amounts recognized in the balances sheets (Details) - Other Postretirement Benefit Plans, Defined Benefit - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Amounts recognized in the balances sheets | ||
Current portion - retirement benefits and other | $ 136,000 | |
Long-term liabilities - retirement benefits and other | 5,729,000 | $ 2,529,000 |
Amounts recognized in the balances sheets | 5,865,000 | 2,529,000 |
Accumulated other comprehensive loss, before income taxes: | ||
Net actuarial loss | $ 4,947,000 | $ 1,716,000 |
Employee Benefit Plans - Sche_2
Employee Benefit Plans - Schedule of beginning and ending balances of accumulated postretirement benefit obligations (Details) - Other Postretirement Benefit Plans, Defined Benefit - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||
Accumulated postretirement benefit obligations at the beginning of the year | $ 2,529,000 | $ 2,126,000 |
Service Cost | 46,000 | 38,000 |
Interest Cost | 65,000 | 70,000 |
Actuarial loss | 3,308,000 | 357,000 |
Benefits paid | (83,000) | (62,000) |
Accumulated postretirement benefit obligations at the end of the year | $ 5,865,000 | $ 2,529,000 |
Employee Benefit Plans - Sche_3
Employee Benefit Plans - Schedule of financial information for this Plan (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Employer contribution | $ 146,000 | |
Other Postretirement Benefit Plans, Defined Benefit | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service Cost | 46,000 | $ 38,000 |
Interest Cost | 65,000 | 70,000 |
Recognized actuarial loss | 77,000 | 60,000 |
Pension cost | 188,000 | 168,000 |
Company contribution and benefits paid | $ 83,000 | $ 95,000 |
Employee Benefit Plans - Sche_4
Employee Benefit Plans - Schedule of assumptions used as of and for the years (Details) - Other Postretirement Benefit Plans, Defined Benefit | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Benefit obligation | 2.75% | 2.625% |
Pension cost | 2.625% | 3.375% |
Employee Benefit Plans - Sche_5
Employee Benefit Plans - Schedule of postretirement health care benefits costs and obligation (Details) - Other Postretirement Benefit Plans, Defined Benefit - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Benefit obligation | $ 1,078,000 | $ 465,000 |
Aggregate of service and interest cost | 29,000 | 28,000 |
Benefit obligation | (853,000) | (356,000) |
Aggregate of service and interest cost | $ (21,000) | $ (20,000) |
Employee Benefit Plans - Sche_6
Employee Benefit Plans - Schedule of benefit payments (Details) - Other Postretirement Benefit Plans, Defined Benefit | Dec. 31, 2021USD ($) |
Defined Benefit Plan, Expected Future Benefit Payment [Abstract] | |
2022 | $ 146,000 |
2023 | 156,000 |
2024 | 167,000 |
2025 | 178,000 |
2026 | 188,000 |
2027 - 2031 | $ 1,083,000 |
Income Taxes - Income tax provi
Income Taxes - Income tax provision from operations included in consolidated statements of operations (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Current: | ||
Federal | $ 41 | $ (47) |
State | (24) | |
Total current tax | 41 | (71) |
Deferred: | ||
Federal | (84) | 33 |
State | 0 | 0 |
Total deferred | (84) | 33 |
Income tax provision, total | $ (43) | $ (38) |
Income Taxes - Effective tax ra
Income Taxes - Effective tax rate based upon total income tax provision (benefit) from continuing operations (Details) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Taxes | ||
Federal statutory rate | 21.00% | 21.00% |
Permanent non-taxable income | 0.90% | 105.80% |
PPP Loan Forgiveness | (20.90%) | (0.00%) |
Business credits | (2.20%) | (61.70%) |
ESOP dividend | (0.00%) | (0.00%) |
Stock compensation | (0.10%) | (7.60%) |
Foreign-derived intangible income deduction | 0.00% | (55.70%) |
State taxes, net of federal benefit | 0.00% | (28.70%) |
Other | 0.20% | (34.40%) |
Effective tax rate | (1.10%) | (61.30%) |
Income Taxes - Deferred tax ass
Income Taxes - Deferred tax assets (liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred Tax Assets: | ||
Inventories | $ 326 | $ 455 |
Accrued employees compensation and benefits costs | 444 | 397 |
Postretirement obligation (accumulated other comprehensive income) | 1,039 | 360 |
Warranty reserve | 107 | 80 |
Operating loss carryforward | 147 | 147 |
Bad debt reserve | 28 | 40 |
Other | 104 | 67 |
Total deferred tax assets | 2,195 | 1,546 |
Valuation allowance | (147) | (147) |
Net deferred tax asset | 2,048 | 1,399 |
Deferred tax liabilities: | ||
Prepaid expenses | (126) | (62) |
Property, plant and equipment | (1,022) | (1,200) |
Total deferred tax liabilities | (1,148) | (1,262) |
Net deferred tax asset | $ 900 | $ 137 |
Income Taxes - Additional infor
Income Taxes - Additional information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Operating Loss Carryforwards [Line Items] | ||
State net operating loss carryforwards, state tax credit carryforwards and other state net deferred tax assets valuation allowance | $ 147,000 | $ 147,000 |
Valuation allowance | 147,000 | 147,000 |
Uncertain tax positions or unrecognized tax benefits | 0 | 0 |
Domestic Tax Authority | New York | ||
Operating Loss Carryforwards [Line Items] | ||
Tax credit carryforward | $ 147,000 | $ 147,000 |
Tax credit carryforward expiration date in years | 2023 |
Shareholders' Equity - Summary
Shareholders' Equity - Summary of common shareholders' equity (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Balance | $ 33,737 | $ 33,532 |
Retirement obligation, net of taxes | 2,451 | 134 |
Purchase of treasury shares | (81) | (100) |
Stock based compensation | 106 | 339 |
Net Income | 4,055 | 100 |
Net income | 4,055 | 100 |
Balance | 35,366 | 33,737 |
Retained earnings | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Balance | 21,803 | 21,703 |
Net income | 4,055 | 100 |
Balance | 25,858 | 21,803 |
Accumulated Other Comprehensive Income (Loss) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Balance | (1,356) | (1,121) |
Retirement obligation, net of taxes | 2,552 | 235 |
Balance | (3,908) | (1,356) |
Common Stock | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Balance | 523 | 523 |
Balance | 523 | 523 |
Capital in excess of par value | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Balance | 14,481 | 14,358 |
Stock based compensation | 19 | 123 |
Balance | 14,500 | 14,481 |
ESOT | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Balance | (359) | (460) |
Retirement obligation, net of taxes | (101) | (101) |
Balance | (258) | (359) |
Treasury stock | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Balance | (1,355) | (1,471) |
Purchase of treasury shares | (81) | (100) |
Stock based compensation | 87 | 216 |
Balance | $ (1,349) | $ (1,355) |
Shareholders' Equity - Restrict
Shareholders' Equity - Restricted stock activity (Details) - $ / shares | Jan. 01, 2021 | Dec. 31, 2021 | Dec. 31, 2020 |
2012 Long Term Incentive Plan | |||
Restricted Share Activity: | |||
Vested | 25,250 | ||
Restricted stock | |||
Restricted Share Activity: | |||
Unvested at the beginning | 30,914 | 30,914 | 54,416 |
Granted | 13,160 | 11,328 | |
Forfeited | 0 | 0 | |
Vested | 37,498 | 34,830 | |
Unvested at the end | 6,576 | 30,914 | |
Weighted Average Grant Date Fair Value | |||
Unvested, beginning balance | $ 9.24 | $ 9.24 | $ 9.58 |
Granted | 7.60 | 8.83 | |
Forfeited | 0 | 0 | |
Vested | 8.95 | 9.11 | |
Unvested, ending balance | $ 7.60 | $ 9.24 |
Shareholders' Equity - Calculat
Shareholders' Equity - Calculation of earning per share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Shareholders' Equity | ||
Net income | $ 4,055 | $ 100 |
Weighted average common shares outstanding (basic) (in shares) | 2,411 | 2,366 |
Unvested restricted stock (in shares) | 7 | 31 |
Weighted average common shares outstanding (diluted) (in shares) | 2,418 | 2,397 |
Basic | ||
Net income per share | $ 1.68 | $ 0.04 |
Diluted | ||
Net income per share | $ 1.68 | $ 0.04 |
Shareholders' Equity - Share Re
Shareholders' Equity - Share Repurchase Program (Details) - Share Repurchase Program | 12 Months Ended |
Dec. 31, 2021shares | |
Equity, Class of Treasury Stock [Line Items] | |
Number of common shares authorized to be purchased | 450,000 |
Number of shares purchased | 360,615 |
Remaining number of shares authorized to be purchased | 89,385 |
Shares purchased | 0 |
Shareholders' Equity - 2012 Lon
Shareholders' Equity - 2012 Long-Term Incentive Plan (Details) - USD ($) | May 14, 2021 | Jan. 01, 2021 | May 25, 2018 | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||||
Stock-based compensation expense related to the restrictive share awards | $ 106,000 | $ 339,000 | |||
Unvested Shares Recognized | 50,000 | ||||
Non-employee directors | |||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||||
Number of restricted stock issued | 13,160 | ||||
Compensation expense not yet recognized | $ 100,000 | ||||
2012 Long Term Incentive Plan | |||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||||
Compensation expense not yet recognized | $ 0 | ||||
Number of shares authorized for issuance | 300,000 | ||||
Number of restricted stock shares vested | 25,250 | ||||
Shares withheld to satisfy the tax obligations | 9,920 | ||||
Value of shares withheld and repurchased | $ 81,000 | ||||
2012 Long Term Incentive Plan | Former Executive Officer | |||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||||
Number of restricted stock issued | 78,750 | ||||
Compensation expense not yet recognized | $ 735,000 | ||||
2012 Long Term Incentive Plan | Non-employee directors | |||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||||
Vesting period of restricted share awards | 12 months |
Shareholders' Equity - Share-ba
Shareholders' Equity - Share-based payments and shareholders' rights plan (Details) - Rights Plan | 12 Months Ended |
Dec. 31, 2012item$ / sharesshares | |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |
Number of rights for each outstanding share | 1 |
Percentage of beneficial ownership | 25% |
Number of business days | 10 days |
Exercise price | $ / shares | $ 32 |
Event Any Person Becomes Acquiring Person [Member] | |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |
Number of times the exercise price | item | 3 |
Common | Event Any Person Becomes Acquiring Person [Member] | |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |
Number of rights for each outstanding share | 2 |
Series A Preferred Stock | |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |
Number of shares for each right | 0.01 |
Series A Preferred Stock | Event Any Person Becomes Acquiring Person [Member] | |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |
Number of shares for each right | 0.02 |
Litigation (Details)
Litigation (Details) | Nov. 30, 2021USD ($) | Nov. 03, 2021USD ($) | Jun. 07, 2021USD ($) | Dec. 31, 2021USD ($) |
Litigation | ||||
Damages sought value | $ 5,000,000 | |||
Minimum | Former CEO | ||||
Litigation | ||||
Multiplier of severance Payment With Average Annual Compensation | 2.99 | |||
Aero, Inc. | ||||
Litigation | ||||
Litigation settlement amount | $ 1,800,000 | |||
The Ontario Knife Company | ||||
Litigation | ||||
Damages sought value | $ 750,000 | |||
Cash amount agreed paid to plaintiff | $ 90,000 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Related Party Transactions | ||
Legal fees and disbursements | $ 85,000 | $ 183,000 |
Accrued additional legal fees | $ 15,000 | $ 19,000 |
Business Segments - Summary of
Business Segments - Summary of company's operations (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | ||
Revenues from unaffiliated customers | $ 40,558 | $ 49,844 |
Costs of goods sold, inclusive of depreciation | (34,570) | (41,604) |
Gross margin | 5,988 | 8,240 |
Operating expenses: | ||
Selling, general and administrative | (9,423) | (7,998) |
Legal settlement awards | (1,890) | |
Total operating expenses | (11,313) | (7,998) |
Operating (loss)/income | (5,325) | 242 |
Other income/(expense): | ||
Other income: employee retention credit (ERC) | 5,622 | |
Other income: PPP loan forgiveness | 4,000 | |
Interest expense, net | (187) | (180) |
Loss on sale of equipment | (98) | |
Total other income/(expense) | 9,337 | (180) |
Income (loss) before income tax provision | 4,012 | 62 |
Income tax benefit | (43) | (38) |
Net income/(loss) | 4,055 | 100 |
Capital expenditures | 267 | 729 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Revenues from unaffiliated customers | 40,558 | 49,844 |
Costs of goods sold, inclusive of depreciation | (34,570) | (41,604) |
Gross margin | $ 5,988 | $ 8,240 |
Gross margin % | 14.80% | 16.50% |
Operating expenses: | ||
Selling, general and administrative | $ (9,423) | $ (7,998) |
Legal settlement awards | (1,890) | |
Total operating expenses | (11,313) | (7,998) |
Operating (loss)/income | (5,325) | 242 |
Other income/(expense): | ||
Other income: employee retention credit (ERC) | 5,622 | |
Other income: PPP loan forgiveness | 4,000 | |
Interest expense, net | (187) | (180) |
Loss on sale of equipment | (98) | |
Total other income/(expense) | 9,337 | (180) |
Income (loss) before income tax provision | 4,012 | 62 |
Income tax benefit | (43) | (38) |
Net income/(loss) | 4,055 | 100 |
Operating Segments | ATG | ||
Segment Reporting Information [Line Items] | ||
Revenues from unaffiliated customers | 31,677 | 40,782 |
Costs of goods sold, inclusive of depreciation | (25,929) | (33,440) |
Gross margin | $ 5,748 | $ 7,342 |
Gross margin % | 18.10% | 18.00% |
Operating expenses: | ||
Selling, general and administrative | $ (7,661) | $ (6,245) |
Legal settlement awards | (1,800) | |
Total operating expenses | (9,461) | (6,245) |
Operating (loss)/income | (3,713) | 1,097 |
Other income/(expense): | ||
Other income: employee retention credit (ERC) | 4,584 | |
Other income: PPP loan forgiveness | 4,000 | |
Interest expense, net | (185) | (170) |
Loss on sale of equipment | (98) | |
Total other income/(expense) | 8,301 | (170) |
Income (loss) before income tax provision | 4,588 | 927 |
Income tax benefit | 78 | 492 |
Net income/(loss) | 4,510 | 435 |
Operating Segments | CPG | ||
Segment Reporting Information [Line Items] | ||
Revenues from unaffiliated customers | 8,881 | 9,062 |
Costs of goods sold, inclusive of depreciation | (8,641) | (8,164) |
Gross margin | $ 240 | $ 898 |
Gross margin % | 2.70% | 9.90% |
Operating expenses: | ||
Selling, general and administrative | $ (1,762) | $ (1,753) |
Legal settlement awards | (90) | |
Total operating expenses | (1,852) | (1,753) |
Operating (loss)/income | (1,612) | (855) |
Other income/(expense): | ||
Other income: employee retention credit (ERC) | 1,038 | |
Interest expense, net | (2) | (10) |
Total other income/(expense) | 1,036 | (10) |
Income (loss) before income tax provision | (576) | (865) |
Income tax benefit | (121) | (530) |
Net income/(loss) | $ (455) | $ (335) |
Business Segments - Additional
Business Segments - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2021segment | |
Business Segments | |
Number of operating segments | 2 |