Servotronics (SVT) 10-Q 14 Nov 22 2022 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2022	Nov. 07, 2022
Document and Entity Information [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Sep. 30, 2022
Entity File Number	1-07109
Entity Registrant Name	SERVOTRONICS, INC.
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
Entity Central Index Key	0000089140
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q3
Amendment Flag	false
Trading Symbol	SVT
Title of 12(b) Security	Common Stock
Security Exchange Name	NYSEAMER
Entity Common Stock, Shares Outstanding		2,510,042

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Current assets:
Cash	$ 4,261	$ 9,546
Accounts receivable, net	11,412	7,198
Inventories, net	18,852	20,132
Prepaid income taxes	265	792
Other current assets	904	647
Total current assets	35,694	38,315
Property, plant and equipment, net	10,558	10,557
Deferred income taxes	876	900
Other non-current assets	316	321
Total Assets	47,444	50,093
Current liabilities:
Current portion of long-term debt and finance leases	240	276
Accounts payable	3,274	663
Accrued employee compensation and benefits costs	1,645	1,759
Current portion of post retirement obligation	136	136
Other accrued liabilities	1,317	1,414
Total current liabilities	6,612	4,248
Long-term debt	326	4,750
Post retirement obligation	5,749	5,729
Shareholders' equity:
Common stock, par value $0.20; authorized 4,000,000 shares; issued 2,614,506 shares; outstanding 2,453,406 (2,435,032 - 2021) shares	523	523
Capital in excess of par value	14,535	14,500
Retained earnings	25,057	25,858
Accumulated other comprehensive loss	(3,842)	(3,908)
Employee stock ownership trust commitment	(258)	(258)
Treasury stock, at cost 104,464 (122,839 - 2021) shares	(1,258)	(1,349)
Total shareholders' equity	34,757	35,366
Total Liabilities and Shareholders' Equity	$ 47,444	$ 50,093

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares	Sep. 30, 2022	Dec. 31, 2021
CONDENSED 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	2,453,406	2,435,032
Treasury stock, shares	104,464	122,839

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Revenue	$ 10,991	$ 10,915	$ 33,389	$ 30,003
Costs and expenses:
Costs of goods sold, inclusive of depreciation and amortization	9,468	9,143	28,060	25,366
Gross profit	1,523	1,772	5,329	4,637
Operating Expenses:
Selling, general and administrative	1,943	2,721	6,196	6,903
Legal settlement awards		1,890		1,890
Total selling, general and administrative	1,943	4,611	6,196	8,793
Total operating costs and expenses	11,411	13,754	34,256	34,159
Operating loss	(420)	(2,839)	(867)	(4,156)
Other (expense)/income:
Other income: Employee retention credit (ERC)		1,978		5,622
Other income: Paycheck Protection Program loan forgiveness		4,000		4,000
Interest expense	(50)	(5)	(194)	(132)
Gain on sale of equipment			26
Total other (expense)/income, net	(50)	5,973	(168)	9,490
(Loss)/income before income taxes	(470)	3,134	(1,035)	5,334
Income tax (benefit)/provision	(154)	(104)	(234)	369
Net (loss)/income	$ (316)	$ 3,238	$ (801)	$ 4,965
Basic
Net (loss)/income per share	$ (0.13)	$ 1.34	$ (0.33)	$ 2.07
Diluted
Net (loss)/income per share	$ (0.13)	$ 1.34	$ (0.33)	$ 2.06

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME
Net (loss)/income	$ (316)	$ 3,238	$ (801)	$ 4,965
Other comprehensive income items:
Actuarial gain	28	19	84	58
Income tax expense on actuarial gain	(6)	(4)	(18)	(12)
Other comprehensive income:
Retirement benefits adjustments, net of income taxes	22	15	66	46
Total comprehensive (loss)/income	$ (294)	$ 3,253	$ (735)	$ 5,011

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Cash flows related to operating activities:
Net (loss)/income	$ (801,000)	$ 4,965,000
Adjustments to reconcile net (loss)/income to net cash provided by operating activities:
Paycheck Protection Program loan forgiveness		(4,000,000)
Depreciation and amortization	916,000	1,043,000
Gain on disposal of property	(26,000)
Stock based compensation	126,000	81,000
Increase (decrease) in doubtful accounts	9,000	(34,000)
Decrease in inventory reserve	(111,000)	(75,000)
Increase in warranty reserve	32,000	14,000
Deferred income taxes	24,000	12,000
Change in assets and liabilities:
Accounts receivable	(4,223,000)	(481,000)
Other receivables: employee retention credit		(1,028,000)
Inventories	1,391,000	2,861,000
Prepaid income taxes	527,000	18,000
Other current assets	(257,000)	(242,000)
Accounts payable	2,611,000	(43,000)
Accrued employee compensation and benefit costs	(114,000)	509,000
Other accrued liabilities	(128,000)	2,665,000
Postretirement benefits	86,000	73,000
Net cash provided by operating activities	62,000	6,338,000
Cash flows related to investing activities:
Capital expenditures - property, plant and equipment	(925,000)	(68,000)
Proceeds from sale of assets	38,000
Net cash used by investing activities	(887,000)	(68,000)
Cash flows related to financing activities:
Principal payments on long-term debt	(4,250,000)	(911,000)
Principal payments on equipment financing lease obligations	(210,000)	(271,000)
Proceeds from equipment note and equipment financing lease obligations		384,000
Proceeds from the line of credit		500,000
Purchase of treasury shares		(81,000)
Net cash used by financing activities	(4,460,000)	(379,000)
Net (decrease)/increase in cash	(5,285,000)	5,891,000
Cash at beginning of period	9,546,000	5,935,000
Cash at end of period	$ 4,261,000	$ 11,826,000

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 2022
Basis of Presentation
Basis of Presentation	1. Basis of Presentation The accompanying unaudited condensed consolidated financial statements (“consolidated financial statements”) have been prepared in accordance with United States generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by United States generally accepted accounting principles for complete financial statements. The accompanying condensed consolidated financial statements reflect all adjustments which are, in the opinion of management, necessary for a fair statement of the results for the interim periods presented. All such adjustments are of a normal recurring nature. Operating results for the three and nine months ended September 30, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022. The accompanying condensed consolidated financial statements should be read in conjunction with the Consolidated Financial Statements and related Notes to such statements included in the Annual Report on Form 10-K for the year ended December 31, 2021 that was previously filed by the Company. Risks and Uncertainties Global economic challenges, including the COVID-19 pandemic, severe and sustained inflation, rising interest rates, and supply chain disruptions could cause economic uncertainty and volatility. The impact of these issues on the Company’s operations will vary by market and product line, specific impacts to our business could potentially include delayed or reduced customer orders and sales, restrictions on travel, and delays in shipments to and from certain countries. The Company monitors economic conditions closely. In response to fluctuations in revenue and product demand, the Company can take actions to align its cost structure with changes in demand and manage its working capital. Failure to achieve expected opeating results could have a material adverse effect on our liquidity, our ability to obtain financing, and our operations in the future. However, there can be no assurance as to the effectiveness of these efforts to mitigate any impact of the current and future adverse economic conditions and other developments.

Business Description and Summar

Business Description and Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2022
Business Description and Summary of Significant Accounting Policies
Business Description and Summary of Significant Accounting Policies	2. Business Description and Summary of Significant Accounting Policies Business Description Servotronics, Inc. and its subsidiaries (collectively the “Registrant” or the “Company”) design, manufacture and market advanced technology products consisting primarily of control components, and consumer products including knives and various types of cutlery and other edged products. The Company operates through two primary segments: the Advanced Technology Group (ATG) and the Consumer Products Group (CPG). 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 $140,000 at September 30, 2022 and $131,000 at December 31, 2021. 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 is 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 September 30, 2022 and December 31, 2021 under the guidance of ASC460 the Company has recorded a warranty reserve of approximately $543,000 and $511,000, respectively. This amount is reflected in other accrued expenses in the accompanying balance sheet. Revenue is recognized on repair returns, covered under a customer contract, at the contractual price upon shipment to the customer. Inventories Inventories are stated at the lower of cost or net realizable value. Cost includes all costs incurred to bring each product to its present location and condition. Market provisions in respect of lower of cost or market adjustments and inventory expected to be used in greater than two years are applied to the gross value of the inventory through a reserve of approximately $1,631,000 and $1,742,000 at September 30, 2022 and December 31, 2021, respectively. Pre-production and start-up costs are expensed as incurred. The purchase of suppliers’ minimum economic quantities of material such as steel, etc. may result in a purchase of quantities exceeding one year of customer requirements. Also, in order to maintain a reasonable and/or agreed to lead time, certain larger quantities of other product support items may have to be purchased and may result in over one year’s supply. These amounts are not included in the inventory reserve discussed above. Shipping and Handling Costs Shipping and handling costs are classified as a component of cost of goods sold. Property, Plant and Equipment Property, plant and equipment is carried at cost. Expenditures for new facilities and equipment and expenditures which substantially increase the useful lives of existing plant and equipment are capitalized; expenditures for maintenance and repairs are expensed as incurred. Upon disposal of properties, the related cost and accumulated depreciation are removed from the respective accounts and any profit or loss on disposition is included in income. Depreciation is provided on the basis of estimated useful lives of depreciable properties, primarily by the straight-line method for financial statement purposes and by accelerated methods for income tax purposes. Depreciation expense includes the amortization of right-of-use (“ROU”) assets accounted for as finance leases. The estimated useful lives of depreciable properties are generally as follows: ​ ​ ​ ​ Buildings and improvements 5- 40 Machinery and equipment ​ 5- 20 Tooling ​ 3 5 ​ Income Taxes ​ The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax basis of assets and liabilities, as well as operating loss and credit carryforwards. The Company and its subsidiaries file a consolidated federal income tax return, combined New York, 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 September 30, 2022 or December 31, 2021, and did not recognize any interest and/or penalties in its consolidated statements of operations during the three and nine months ended September 30, 2022 and 2021. The Company did not have any material uncertain tax positions or unrecognized tax benefits or obligations as of September 30, 2022 and December 31, 2021. The 2018 through 2021 federal and state tax returns remain subject to examination. Supplemental Cash Flow Information There were income tax refunds received of approximately $811,000 and $345,000 for the nine month periods ended September 30, 2022 and 2021, respectively. Income tax paid amounted to approximately $50,000 and $720,000 for the nine month periods ended September 30, 2022 and 2021, respectively. Interest paid during the nine month periods ended September 30, 2022 and 2021 amounted to approximately $76,000 and $110,000, respectively. Employee Stock Ownership Plan Contributions to the employee stock ownership plan are determined annually by the Company according to plan formula. Impairment of Long-Lived Assets The Company reviews long-lived assets for impairment annually or whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable based on undiscounted future operating cash flow analyses. If an impairment is determined to exist, any related impairment loss is calculated based on fair value. Due to the historical losses incurred by our Consumer Products Group (“CPG”), 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 September 30, 2022 and December 31, 2021. Use of Estimates The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Reclassifications Certain balances, as previously reported, were reclassified to conform to classifications adopted in the current period. Research and Development Costs Research and development costs are expensed as incurred. Concentration of Credit Risks Financial instruments that potentially subject the Company to concentration of credit risks principally consist of cash accounts in financial institutions. Although the accounts exceed the federally insured deposit amount, management assesses the risk of nonperformance by the financial institutions to be low. Fair Value of Financial Instruments The carrying amount of cash, accounts receivable, accounts payable and accrued expenses are reasonable estimates of their fair value due to their short maturity. Based on variable interest rates and the borrowing rates currently available to the Company for loans similar to its long-term debt, the fair value approximates its carrying amount. 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	9 Months Ended
	Sep. 30, 2022
Inventories
Inventories	3. Inventories ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ December 31, ​ 2022 2021 ​ ​ ($000’s omitted) Raw material and common parts ​ $ 15,007 ​ $ 15,952 Work-in-process ​ 3,078 ​ 3,432 Finished goods ​ 2,398 ​ 2,490 ​ ​ 20,483 ​ 21,874 Less inventory reserve ​ (1,631) ​ (1,742) Total inventories ​ $ 18,852 ​ $ 20,132 ​

Property, Plant and Equipment

Property, Plant and Equipment	9 Months Ended
	Sep. 30, 2022
Property, Plant and Equipment
Property, Plant and Equipment	4. Property, Plant and Equipment ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, December 31, ​ ​ 2022 ​ 2021 ​ ​ ($000’s omitted) Land ​ $ 7 ​ $ 7 Buildings ​ 11,831 ​ 11,363 Machinery, equipment and tooling ​ 20,648 ​ 20,689 Construction in progress ​ 837 ​ 414 ​ ​ 33,323 ​ 32,473 Less accumulated depreciation and amortization ​ (22,765) ​ (21,916) Total property, plant and equipment ​ $ 10,558 ​ $ 10,557 ​ Depreciation and amortization expense amounted to approximately $294,000 and $329,000 for the three months ended September 30, 2022 and 2021, respectively. Amortization expense primarily related to ROU assets amounted to approximately $8,000 and $8,000 for the three months ended September 30, 2022 and 2021, respectively. Depreciation and amortization expense amounted to approximately $916,000 and $1,043,000 for the nine months ended September 30, 2022 and 2021, respectively. Amortization expense, primarily related to ROU assets, amounted to approximately $23,000 and $42,000 for the nine months ended September 30, 2022 and 2021, respectively. The Company maintains property and casualty insurance in amounts adequate for the risk and nature of its assets and operations and which are generally customary in its industry. As of September 30, 2022, there is approximately $837,000 ($414,000 – December 31, 2021) of construction in progress (CIP) included in property, plant and equipment all of which is related to capital projects. This includes approximately $418,000 for building improvements ($110,000 - December 2021) and $419,000 in CIP for machinery & equipment ($304,000 – December 2021 ) primarily related to the Advanced Technology Group.

Long-Term Debt

Long-Term Debt	9 Months Ended
	Sep. 30, 2022
Long-Term Debt
Long-Term Debt	5. Long-Term Debt ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ December 31, ​ 2022 2021 ​ ​ ($000’s omitted) ​ ​ ​ ​ ​ ​ ​ Line of credit payable to a financial institution; Interest rate is the BSBY Daily Floating Rate (A) ​ $ — ​ $ 4,250 ​ ​ ​ ​ ​ ​ ​ 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 1.795535% - 1.835015% as of September 30, 2022) (B) ​ 547 ​ 712 ​ ​ ​ ​ ​ ​ ​ 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) (C) ​ ​ 19 ​ ​ 64 ​ ​ 566 ​ 5,026 Less current portion ​ (240) ​ (276) Long-term debt ​ $ 326 ​ $ 4,750 ​ A.) The Company has a $6,000,000 line of credit. The interest rate is a rate per year equal to the sum (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 purpose of this paragraph “Index Floor” means 0.5% . In addition, the Company is required to pay a commitment fee of 0.25% on the unused portion of the line of credit. The line of credit expires December 31, 2023. 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. Also, 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. At September 30, 2022 and December 31, 2021 the Company was in compliance with its loan covenants. Although the Company meets the current covenant requirements as of September 30, 2022, it is probable that the Company will fail to meet the Debt Service Coverage Ratio loan covenant up through and including the fourth quarter of 2022. As the Company has no term loan or line of credit outstanding balances as of September 30, 2022 and the Debt to Worth Ratio is expected to be in compliance at December 31, 2022, the Company does not anticipate adverse consequences of its probable failure to satisfy future covenants. 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 approximately $0 and $4,250,000 outstanding at September 30, 2022 and December 31, 2021, respectively. B.) 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. There was approximately $547,000 outstanding at September 30, 2022 and $712,000 outstanding at December 31, 2021. C.) The Company had 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 $19,000 outstanding at September 30, 2022 and $64,000 at December 31, 2021. Principal maturities of long-term debt are as follows: 2022 - $66,000; 2023 - $231,000; 2024 - $182,000; 2025 - $77,000; and 2026 - $10,000. Remaining principal payments and interest payments for the capital note and capital equipment financing lease obligations for each of the next five years: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ December 31, Year 2022 2021 ​ ​ ($000’s omitted) ​ ​ ​ ​ ​ ​ ​ 2022 $ 83 $ 296 2023 ​ 246 ​ 246 2024 ​ 192 ​ 192 2025 ​ 83 ​ 83 2026 ​ 11 ​ 11 Total principal and interest payments ​ 615 ​ 828 Less amount representing interest ​ (49) ​ (52) Present value of net minimum lease payments ​ 566 ​ 776 Less current portion ​ (240) ​ (276) Long-term principle payments ​ $ 326 ​ $ 500 ​

Postretirement Benefit Plan

Postretirement Benefit Plan	9 Months Ended
	Sep. 30, 2022
Postretirement Benefit Plan
Postretirement Benefit Plan	6. Postretirement Benefit Plan The Company provides certain postretirement benefits for two former executives of the Company (the Plan). Under the Plan, the Company pays the annual cost of health insurance coverage and provides life insurance at the same level of coverage provided to the former employee at the time of termination of employment. The Plan also provides a benefit to reimburse the participants for certain out-of-pocket medical or health related expenses. The participant’s benefits under the Plan cease upon the death of the former executive. The Plan is unfunded and the actuarially determined future accumulated postretirement benefit obligation at September 30, 2022 and December 31, 2021 was approximately $5,885,000 and $5,865,000, respectively and has been accrued and reflected in Post Retirement Obligation and Current Portion of Post Retirement Obligation in the accompanying consolidated balance sheets. Benefit costs for the three months ended September 30, 2022 and 2021 totaled $70,000 and $48,000, respectively. Benefit costs for the nine months ended September 30, 2022 and 2021 totaled $208,000 and $143,000, respectively.

Shareholders' Equity

Shareholders' Equity	9 Months Ended
	Sep. 30, 2022
Shareholders' Equity
Shareholders' Equity	7. Shareholders’ Equity ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine-month Period Ended September 30, 2022 ​ ​ ​ ​ ​ Accumulated ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other ​ ​ ​ Capital in ​ ​ ​ ​ ​ Total ​ ​ Retained ​ Comprehensive ​ ​ ​ excess of ​ ​ ​ Treasury ​ shareholders’ ​ Earnings Income Common Stock par value ESOT stock equity ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2021 $ 25,858 ​ $ (3,908) ​ $ 523 ​ $ 14,500 ​ $ (258) ​ $ (1,349) ​ $ 35,366 ​ ​ ​ ​ ​ ​ ​ Retirement benefits adjustment ​ ​ — ​ ​ 22 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 22 Stock based compensation — ​ — ​ — ​ 2 ​ — ​ 23 ​ 25 Net Income 325 ​ — ​ — ​ — ​ — ​ — ​ 325 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2022 ​ $ 26,183 ​ $ (3,886) ​ $ 523 ​ $ 14,502 ​ $ (258) ​ $ (1,326) ​ $ 35,738 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Retirement benefits adjustment ​ ​ — ​ ​ 22 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 22 Stock based compensation ​ ​ — ​ ​ — ​ ​ — ​ ​ 7 ​ ​ — ​ ​ 35 ​ ​ 42 Net Loss ​ (810) ​ — ​ — ​ — ​ — ​ — ​ (810) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2022 ​ $ 25,373 ​ $ (3,864) ​ $ 523 ​ $ 14,509 ​ $ (258) ​ $ (1,291) ​ $ 34,992 Retirement benefits adjustment ​ ​ — ​ ​ 22 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 22 Stock based compensation ​ ​ — ​ ​ — ​ ​ — ​ ​ 26 ​ ​ — ​ ​ 33 ​ ​ 59 Net Loss ​ ​ (316) ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ (316) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2022 $ 25,057 ​ $ (3,842) ​ $ 523 ​ $ 14,535 ​ $ (258) ​ $ (1,258) ​ $ 34,757 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine-month Period Ended September 30, 2021 ​ ​ ​ ​ ​ Accumulated ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other ​ ​ ​ Capital in ​ ​ ​ ​ ​ Total ​ ​ Retained ​ Comprehensive ​ ​ ​ excess of ​ ​ ​ Treasury ​ shareholders’ ​ Earnings Income Common Stock par value ESOT stock equity December 31, 2020 $ 21,803 ​ $ (1,356) ​ $ 523 ​ $ 14,481 ​ $ (359) ​ $ (1,355) ​ $ 33,737 ​ ​ ​ ​ ​ ​ ​ Retirement benefits adjustment ​ ​ — ​ ​ 15 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 15 Stock based compensation ​ ​ — ​ ​ — ​ ​ — ​ ​ 11 ​ ​ — ​ ​ 20 ​ ​ 31 Purchase of treasury shares — ​ — ​ — ​ — ​ — ​ (81) ​ (81) Net Income 541 ​ — ​ — ​ — ​ — ​ — ​ 541 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2021 ​ $ 22,344 ​ $ (1,341) ​ $ 523 ​ $ 14,492 ​ $ (359) ​ $ (1,416) ​ $ 34,243 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Retirement benefits adjustment ​ ​ — ​ ​ 16 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 16 Stock based compensation ​ ​ — ​ ​ — ​ ​ — ​ ​ 5 ​ ​ — ​ ​ 20 ​ ​ 25 Net Income ​ 1,186 ​ — ​ — ​ — ​ — ​ — ​ 1,186 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2021 $ 23,530 ​ $ (1,325) ​ $ 523 ​ $ 14,497 ​ $ (359) ​ $ (1,396) ​ $ 35,470 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Retirement benefits adjustment ​ ​ — ​ ​ 15 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 15 Stock based compensation ​ ​ — ​ ​ — ​ ​ — ​ ​ 1 ​ ​ — ​ ​ 24 ​ ​ 25 Net Income ​ ​ 3,238 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 3,238 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2021 $ 26,768 ​ $ (1,310) ​ $ 523 ​ $ 14,498 ​ $ (359) ​ $ (1,372) ​ $ 38,748 ​ 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 September 30, 2022, 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 during the nine month periods ended September 30, 2022 and 2021, respectively. 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 applicable equity plan. The Company’s director compensation policy provides that non-employee directors receive a portion of their annual retainer in the form of restricted stock. 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 18,375 restricted shares were issued during the nine month period ended September 30, 2022 with an approximate grant date fair value of $203,000. Included in nine months ended September 30, 2022 and September 30, 2021 is approximately $126,000 and $75,000, respectively, of stock-based compensation expense related to the restrictive share awards. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted Average ​ ​ ​ ​ Grant Date Fair ​ Shares Value ​ ​ ​ ​ ​ ​ Unvested at December 31, 2021 6,576 ​ $ 7.60 ​ ​ ​ ​ ​ ​ Granted 18,375 ​ $ 11.03 Vested 9,652 ​ $ 8.69 Unvested at September 30, 2022 15,299 ​ $ 11.03 ​ Earnings Per Share Basic earnings per share is computed by dividing net earnings by the weighted average number of shares outstanding during the period. The weighted average number of common shares outstanding does not include any potentially dilutive securities or any unvested restricted shares of common stock. These unvested restricted shares, although classified as issued and outstanding, are considered forfeitable until the restrictions lapse and will not be included in the basic EPS calculation until the shares are vested. Diluted earnings per share is computed by dividing net earnings by the weighted average number of shares outstanding during the period plus the number of shares of common stock that would be issued assuming all contingently issuable shares having a dilutive effect on the earnings per share that were outstanding for the period. The dilutive effect of unvested restrictive stock is determined using the treasury stock method. However, if the assumed common shares are anti-dilutive, basic and diluted earnings per share are the same. As a result of the net losses generated in 2022, all outstanding common shares would be antidilutive. As of the three and nine month period ended September 30, 2022 and 2021 there were 15,299 and 9,868 common shares, respectively, that could potentially dilute basic earnings per share in the future. Incremental shares from assumed conversions are calculated as the number of shares that would be issued, net of the number of shares that could be purchased in the marketplace with the cash received upon stock option exercise. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ September 30, ​ September 30, ​ 2022 2021 2022 2021 ​ ​ ($000’s omitted except per share data) Net (loss)/income ​ $ (316) ​ $ 3,238 ​ $ (801) ​ $ 4,965 Weighted average common shares outstanding (basic) ​ 2,427 ​ 2,410 ​ 2,424 ​ 2,404 Unvested restricted stock ​ — ​ 10 ​ — ​ 10 Weighted average common shares outstanding (diluted) ​ 2,427 ​ 2,420 ​ 2,424 ​ 2,414 Basic ​ ​ ​ ​ ​ ​ Net (loss)/income per share ​ $ (0.13) ​ $ 1.34 ​ $ (0.33) ​ $ 2.07 Diluted ​ ​ ​ ​ ​ Net (loss)/income per share ​ $ (0.13) ​ $ 1.34 ​ $ (0.33) ​ $ 2.06 ​

Litigation

Litigation	9 Months Ended
	Sep. 30, 2022
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. The Company is insured for such matters in the amount of $3 million with a retention of $1 million. Additionally, there is excess coverage policy for $3 million that considers the payment from the earlier insurance policy as the $3 million retention. 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 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 in June 2021 pending an internal investigation. 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 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	9 Months Ended
	Sep. 30, 2022
Related Party Transactions
Related Party Transactions	9. Related Party Transactions There were related party legal fees refunded for the three month period ended September 30, 2022 of approximately $3,155 and related party legal fees paid for the three month period ended September 30, 2021 of approximately $13,000 for services provided by a law firm that is owned by a member of the Company’s Board of Directors. The Company paid legal fees and disbursements to that firm amounting to approximately $51,000 and $59,000 in the nine month period ended September 30, 2022 and 2021, 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 September 30, 2022 and 2021 of approximately $5,000 and $13,000, respectively, with this firm.

Business Segments

Business Segments	9 Months Ended
	Sep. 30, 2022
Business Segments
Business Segments	10. Business Segments The Company operates in two business segments, ATG and CPG. The Company’s reportable segments are strategic business units that offer different products and services. The segments are composed of separate corporations and are managed separately. Operations in ATG primarily involve the design, manufacture, and marketing of servo-control components (i.e., torque motors, control valves, actuators, etc.) for government, commercial and industrial applications. CPG’s operations involve the design, manufacture and marketing of a variety of cutlery products for use by consumers and government agencies. The Company derives its primary sales revenue from domestic customers, although a portion of finished products are for foreign end use. As of September 30, 2022, the Company had identifiable assets of approximately $47,444,000 ($50,093,000 – December 31, 2021) of which approximately $37,340,000 ($40,871,000 – December 31, 2021) was for ATG and approximately $10,104,000 ($9,222,000 – December 31, 2021) was for CPG. Information regarding the Company’s operations in these segments is summarized as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ($000’s omitted except per share data) ​ ​ ​ ATG ​ CPG ​ Consolidated ​ ​ ​ Three Months Ended ​ Three Months Ended ​ Three Months Ended ​ ​ September 30, ​ September 30, ​ September 30, ​ 2022 2021 2022 2021 2022 2021 Revenues from unaffiliated customers ​ $ 8,823 ​ $ 8,449 ​ $ 2,168 ​ $ 2,466 ​ $ 10,991 ​ $ 10,915 ​ ​ ​ ​ ​ ​ ​ ​ Cost of goods sold, inclusive of dep. & amort. ​ (7,973) ​ (6,762) ​ (1,495) ​ (2,381) ​ (9,468) ​ ​ (9,143) ​ Gross profit ​ 850 ​ 1,687 ​ 673 ​ 85 ​ 1,523 ​ 1,772 ​ Gross margin % 9.6 % 20.0 % 31.0 % 3.4 % 13.9 % 16.2 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Selling, general and administrative ​ (1,541) ​ (2,240) ​ (402) ​ (481) ​ (1,943) ​ (2,721) ​ Legal settlement awards ​ ​ — ​ ​ (1,800) ​ ​ — ​ ​ (90) ​ ​ — ​ ​ (1,890) ​ Total operating costs and expenses ​ (9,514) ​ (10,802) ​ (1,897) ​ (2,952) ​ (11,411) ​ (13,754) ​ Operating (loss)/income ​ (691) ​ (2,353) ​ 271 ​ (486) ​ (420) ​ (2,839) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Employee retention credit (ERC) ​ ​ — ​ ​ 1,598 ​ ​ — ​ ​ 380 ​ ​ — ​ ​ 1,978 ​ Paycheck Protection Program loan forgiveness ​ ​ — ​ ​ 4,000 ​ ​ — ​ ​ — ​ ​ — ​ ​ 4,000 ​ Interest expense ​ ​ (50) ​ ​ (5) ​ ​ — ​ ​ — ​ ​ (50) ​ ​ (5) ​ Total other (expense)/income ​ ​ (50) ​ ​ 5,593 ​ ​ — ​ ​ 380 ​ ​ (50) ​ ​ 5,973 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (Loss)/ income before income taxes ​ ​ (741) ​ ​ 3,240 ​ ​ 271 ​ ​ (106) ​ ​ (470) ​ ​ 3,134 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income tax (benefit)/provision ​ (203) ​ (83) ​ 49 ​ (21) ​ (154) ​ (104) ​ Net (loss)/income ​ $ (538) ​ $ 3,323 ​ $ 222 ​ $ (85) ​ $ (316) ​ $ 3,238 ​ Capital expenditures ​ $ 451 ​ $ 54 ​ $ 46 ​ $ 1 ​ $ 497 ​ $ 55 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ($000’s omitted except per share data) ​ ​ ATG ​ CPG ​ Consolidated ​ ​ Nine Months Ended ​ Nine Months Ended ​ Nine Months Ended ​ ​ September 30, ​ September 30, ​ September 30, ​ 2022 2021 2022 2021 2022 2021 Revenues from unaffiliated customers ​ $ 26,739 ​ $ 23,495 ​ $ 6,650 ​ $ 6,508 ​ $ 33,389 ​ $ 30,003 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cost of goods sold, inclusive of dep. & amort. ​ (22,843) ​ (19,214) ​ (5,217) ​ (6,152) ​ ​ (28,060) ​ ​ (25,366) ​ Gross profit ​ 3,896 ​ 4,281 ​ 1,433 ​ 356 ​ 5,329 ​ 4,637 ​ Gross margin % 14.6 % 18.2 % 21.5 % 5.5 % 16.0 % 15.5 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Selling, general and administrative ​ (4,890) ​ (5,586) ​ (1,306) ​ (1,317) ​ (6,196) ​ (6,903) ​ Legal settlement awards ​ ​ — ​ ​ (1,800) ​ ​ — ​ ​ (90) ​ ​ — ​ ​ (1,890) ​ Total operating costs and expenses ​ (27,733) ​ (26,600) ​ (6,523) ​ (7,559) ​ (34,256) ​ (34,159) ​ Operating (loss)/income ​ (994) ​ (3,105) ​ 127 ​ (1,051) ​ (867) ​ (4,156) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Employee retention credit (ERC) ​ ​ — ​ ​ 4,584 ​ ​ — ​ ​ 1,038 ​ ​ — ​ ​ 5,622 ​ Paycheck Protection Program loan forgiveness ​ ​ — ​ ​ 4,000 ​ ​ — ​ ​ — ​ ​ — ​ ​ 4,000 ​ Interest expense ​ ​ (194) ​ ​ (130) ​ ​ — ​ ​ (2) ​ ​ (194) ​ ​ (132) ​ Gain on sale of equipment ​ ​ 26 ​ ​ — ​ ​ — ​ ​ — ​ ​ 26 ​ ​ — ​ Total other (expense)/income ​ ​ (168) ​ ​ 8,454 ​ ​ — ​ ​ 1,036 ​ ​ (168) ​ ​ 9,490 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (Loss)/income before income taxes ​ (1,162) ​ 5,349 ​ 127 ​ (15) ​ (1,035) ​ 5,334 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income tax (benefit)/provision ​ ​ (263) ​ ​ 370 ​ ​ 29 ​ ​ (1) ​ ​ (234) ​ ​ 369 ​ Net (loss)/income ​ $ (899) ​ $ 4,979 ​ $ 98 ​ $ (14) ​ $ (801) ​ $ 4,965 ​ Capital expenditures ​ $ 841 ​ $ 64 ​ $ 46 ​ $ 4 ​ $ 887 ​ $ 68 ​ ​

Business Description and Summ_2

Business Description and Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2022
Business Description and Summary of Significant Accounting Policies
Business Description	Business Description Servotronics, Inc. and its subsidiaries (collectively the “Registrant” or the “Company”) design, manufacture and market advanced technology products consisting primarily of control components, and consumer products including knives and various types of cutlery and other edged products. The Company operates through two primary segments: the Advanced Technology Group (ATG) and the Consumer Products Group (CPG).
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 $140,000 at September 30, 2022 and $131,000 at December 31, 2021. 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 is 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 September 30, 2022 and December 31, 2021 under the guidance of ASC460 the Company has recorded a warranty reserve of approximately $543,000 and $511,000, respectively. This amount is reflected in other accrued expenses in the accompanying balance sheet. Revenue is recognized on repair returns, covered under a customer contract, at the contractual price upon shipment to the customer.
Inventories	Inventories Inventories are stated at the lower of cost or net realizable value. Cost includes all costs incurred to bring each product to its present location and condition. Market provisions in respect of lower of cost or market adjustments and inventory expected to be used in greater than two years are applied to the gross value of the inventory through a reserve of approximately $1,631,000 and $1,742,000 at September 30, 2022 and December 31, 2021, respectively. Pre-production and start-up costs are expensed as incurred. The purchase of suppliers’ minimum economic quantities of material such as steel, etc. may result in a purchase of quantities exceeding one year of customer requirements. Also, in order to maintain a reasonable and/or agreed to lead time, certain larger quantities of other product support items may have to be purchased and may result in over one year’s supply. These amounts are not included in the inventory reserve discussed above.
Shipping and Handling Costs	Shipping and Handling Costs Shipping and handling costs are classified as a component of cost of goods sold.
Property, Plant and Equipment	Property, Plant and Equipment Property, plant and equipment is carried at cost. Expenditures for new facilities and equipment and expenditures which substantially increase the useful lives of existing plant and equipment are capitalized; expenditures for maintenance and repairs are expensed as incurred. Upon disposal of properties, the related cost and accumulated depreciation are removed from the respective accounts and any profit or loss on disposition is included in income. Depreciation is provided on the basis of estimated useful lives of depreciable properties, primarily by the straight-line method for financial statement purposes and by accelerated methods for income tax purposes. Depreciation expense includes the amortization of right-of-use (“ROU”) assets accounted for as finance leases. The estimated useful lives of depreciable properties are generally as follows: ​ ​ ​ ​ Buildings and improvements 5- 40 Machinery and equipment ​ 5- 20 Tooling ​ 3 5 ​
Income Taxes	Income Taxes ​ The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax basis of assets and liabilities, as well as operating loss and credit carryforwards. The Company and its subsidiaries file a consolidated federal income tax return, combined New York, 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 September 30, 2022 or December 31, 2021, and did not recognize any interest and/or penalties in its consolidated statements of operations during the three and nine months ended September 30, 2022 and 2021. The Company did not have any material uncertain tax positions or unrecognized tax benefits or obligations as of September 30, 2022 and December 31, 2021. The 2018 through 2021 federal and state tax returns remain subject to examination.
Supplemental Cash Flow Information	Supplemental Cash Flow Information There were income tax refunds received of approximately $811,000 and $345,000 for the nine month periods ended September 30, 2022 and 2021, respectively. Income tax paid amounted to approximately $50,000 and $720,000 for the nine month periods ended September 30, 2022 and 2021, respectively. Interest paid during the nine month periods ended September 30, 2022 and 2021 amounted to approximately $76,000 and $110,000, respectively.
Employee Stock Ownership Plan	Employee Stock Ownership Plan Contributions to the employee stock ownership plan are determined annually by the Company according to plan formula.
Impairment of Long-Lived Assets	Impairment of Long-Lived Assets The Company reviews long-lived assets for impairment annually or whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable based on undiscounted future operating cash flow analyses. If an impairment is determined to exist, any related impairment loss is calculated based on fair value. Due to the historical losses incurred by our Consumer Products Group (“CPG”), 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 September 30, 2022 and December 31, 2021.
Use of Estimates	Use of Estimates The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Reclassifications	Reclassifications Certain balances, as previously reported, were reclassified to conform to classifications adopted in the current period.
Research and Development Costs	Research and Development Costs Research and development costs are expensed as incurred.
Concentration of Credit Risks	Concentration of Credit Risks Financial instruments that potentially subject the Company to concentration of credit risks principally consist of cash accounts in financial institutions. Although the accounts exceed the federally insured deposit amount, management assesses the risk of nonperformance by the financial institutions to be low.
Fair Value of Financial Instruments	Fair Value of Financial Instruments The carrying amount of cash, accounts receivable, accounts payable and accrued expenses are reasonable estimates of their fair value due to their short maturity. Based on variable interest rates and the borrowing rates currently available to the Company for loans similar to its long-term debt, the fair value approximates its carrying amount.
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)	9 Months Ended
	Sep. 30, 2022
Business Description and Summary of Significant Accounting Policies
Schedule of estimated useful lives of property, plant and equipment	​ ​ ​ ​ Buildings and improvements 5- 40 Machinery and equipment ​ 5- 20 Tooling ​ 3 5

Inventories (Tables)

Inventories (Tables)	9 Months Ended
	Sep. 30, 2022
Inventories
Schedule of inventories	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ December 31, ​ 2022 2021 ​ ​ ($000’s omitted) Raw material and common parts ​ $ 15,007 ​ $ 15,952 Work-in-process ​ 3,078 ​ 3,432 Finished goods ​ 2,398 ​ 2,490 ​ ​ 20,483 ​ 21,874 Less inventory reserve ​ (1,631) ​ (1,742) Total inventories ​ $ 18,852 ​ $ 20,132

Property, Plant and Equipment (

Property, Plant and Equipment (Tables)	9 Months Ended
	Sep. 30, 2022
Property, Plant and Equipment
Schedule of property, plant and equipment	​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, December 31, ​ ​ 2022 ​ 2021 ​ ​ ($000’s omitted) Land ​ $ 7 ​ $ 7 Buildings ​ 11,831 ​ 11,363 Machinery, equipment and tooling ​ 20,648 ​ 20,689 Construction in progress ​ 837 ​ 414 ​ ​ 33,323 ​ 32,473 Less accumulated depreciation and amortization ​ (22,765) ​ (21,916) Total property, plant and equipment ​ $ 10,558 ​ $ 10,557 ​

Long-Term Debt (Tables)

Long-Term Debt (Tables)	9 Months Ended
	Sep. 30, 2022
Long-Term Debt
Schedule of long-term debt	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ December 31, ​ 2022 2021 ​ ​ ($000’s omitted) ​ ​ ​ ​ ​ ​ ​ Line of credit payable to a financial institution; Interest rate is the BSBY Daily Floating Rate (A) ​ $ — ​ $ 4,250 ​ ​ ​ ​ ​ ​ ​ 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 1.795535% - 1.835015% as of September 30, 2022) (B) ​ 547 ​ 712 ​ ​ ​ ​ ​ ​ ​ 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) (C) ​ ​ 19 ​ ​ 64 ​ ​ 566 ​ 5,026 Less current portion ​ (240) ​ (276) Long-term debt ​ $ 326 ​ $ 4,750 ​ A.) The Company has a $6,000,000 line of credit. The interest rate is a rate per year equal to the sum (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 purpose of this paragraph “Index Floor” means 0.5% . In addition, the Company is required to pay a commitment fee of 0.25% on the unused portion of the line of credit. The line of credit expires December 31, 2023. 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. Also, 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. At September 30, 2022 and December 31, 2021 the Company was in compliance with its loan covenants. Although the Company meets the current covenant requirements as of September 30, 2022, it is probable that the Company will fail to meet the Debt Service Coverage Ratio loan covenant up through and including the fourth quarter of 2022. As the Company has no term loan or line of credit outstanding balances as of September 30, 2022 and the Debt to Worth Ratio is expected to be in compliance at December 31, 2022, the Company does not anticipate adverse consequences of its probable failure to satisfy future covenants. 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 approximately $0 and $4,250,000 outstanding at September 30, 2022 and December 31, 2021, respectively. B.) 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. There was approximately $547,000 outstanding at September 30, 2022 and $712,000 outstanding at December 31, 2021. C.) The Company had 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 $19,000 outstanding at September 30, 2022 and $64,000 at December 31, 2021.
Schedule of payments for capital lease obligations	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ December 31, Year 2022 2021 ​ ​ ($000’s omitted) ​ ​ ​ ​ ​ ​ ​ 2022 $ 83 $ 296 2023 ​ 246 ​ 246 2024 ​ 192 ​ 192 2025 ​ 83 ​ 83 2026 ​ 11 ​ 11 Total principal and interest payments ​ 615 ​ 828 Less amount representing interest ​ (49) ​ (52) Present value of net minimum lease payments ​ 566 ​ 776 Less current portion ​ (240) ​ (276) Long-term principle payments ​ $ 326 ​ $ 500

Shareholders' Equity (Tables)

Shareholders' Equity (Tables)	9 Months Ended
	Sep. 30, 2022
Shareholders' Equity
Schedule of stockholders equity	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine-month Period Ended September 30, 2022 ​ ​ ​ ​ ​ Accumulated ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other ​ ​ ​ Capital in ​ ​ ​ ​ ​ Total ​ ​ Retained ​ Comprehensive ​ ​ ​ excess of ​ ​ ​ Treasury ​ shareholders’ ​ Earnings Income Common Stock par value ESOT stock equity ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2021 $ 25,858 ​ $ (3,908) ​ $ 523 ​ $ 14,500 ​ $ (258) ​ $ (1,349) ​ $ 35,366 ​ ​ ​ ​ ​ ​ ​ Retirement benefits adjustment ​ ​ — ​ ​ 22 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 22 Stock based compensation — ​ — ​ — ​ 2 ​ — ​ 23 ​ 25 Net Income 325 ​ — ​ — ​ — ​ — ​ — ​ 325 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2022 ​ $ 26,183 ​ $ (3,886) ​ $ 523 ​ $ 14,502 ​ $ (258) ​ $ (1,326) ​ $ 35,738 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Retirement benefits adjustment ​ ​ — ​ ​ 22 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 22 Stock based compensation ​ ​ — ​ ​ — ​ ​ — ​ ​ 7 ​ ​ — ​ ​ 35 ​ ​ 42 Net Loss ​ (810) ​ — ​ — ​ — ​ — ​ — ​ (810) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2022 ​ $ 25,373 ​ $ (3,864) ​ $ 523 ​ $ 14,509 ​ $ (258) ​ $ (1,291) ​ $ 34,992 Retirement benefits adjustment ​ ​ — ​ ​ 22 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 22 Stock based compensation ​ ​ — ​ ​ — ​ ​ — ​ ​ 26 ​ ​ — ​ ​ 33 ​ ​ 59 Net Loss ​ ​ (316) ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ (316) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2022 $ 25,057 ​ $ (3,842) ​ $ 523 ​ $ 14,535 ​ $ (258) ​ $ (1,258) ​ $ 34,757 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine-month Period Ended September 30, 2021 ​ ​ ​ ​ ​ Accumulated ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other ​ ​ ​ Capital in ​ ​ ​ ​ ​ Total ​ ​ Retained ​ Comprehensive ​ ​ ​ excess of ​ ​ ​ Treasury ​ shareholders’ ​ Earnings Income Common Stock par value ESOT stock equity December 31, 2020 $ 21,803 ​ $ (1,356) ​ $ 523 ​ $ 14,481 ​ $ (359) ​ $ (1,355) ​ $ 33,737 ​ ​ ​ ​ ​ ​ ​ Retirement benefits adjustment ​ ​ — ​ ​ 15 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 15 Stock based compensation ​ ​ — ​ ​ — ​ ​ — ​ ​ 11 ​ ​ — ​ ​ 20 ​ ​ 31 Purchase of treasury shares — ​ — ​ — ​ — ​ — ​ (81) ​ (81) Net Income 541 ​ — ​ — ​ — ​ — ​ — ​ 541 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2021 ​ $ 22,344 ​ $ (1,341) ​ $ 523 ​ $ 14,492 ​ $ (359) ​ $ (1,416) ​ $ 34,243 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Retirement benefits adjustment ​ ​ — ​ ​ 16 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 16 Stock based compensation ​ ​ — ​ ​ — ​ ​ — ​ ​ 5 ​ ​ — ​ ​ 20 ​ ​ 25 Net Income ​ 1,186 ​ — ​ — ​ — ​ — ​ — ​ 1,186 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2021 $ 23,530 ​ $ (1,325) ​ $ 523 ​ $ 14,497 ​ $ (359) ​ $ (1,396) ​ $ 35,470 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Retirement benefits adjustment ​ ​ — ​ ​ 15 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 15 Stock based compensation ​ ​ — ​ ​ — ​ ​ — ​ ​ 1 ​ ​ — ​ ​ 24 ​ ​ 25 Net Income ​ ​ 3,238 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 3,238 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2021 $ 26,768 ​ $ (1,310) ​ $ 523 ​ $ 14,498 ​ $ (359) ​ $ (1,372) ​ $ 38,748 ​
Summary of restricted stock activity	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted Average ​ ​ ​ ​ Grant Date Fair ​ Shares Value ​ ​ ​ ​ ​ ​ Unvested at December 31, 2021 6,576 ​ $ 7.60 ​ ​ ​ ​ ​ ​ Granted 18,375 ​ $ 11.03 Vested 9,652 ​ $ 8.69 Unvested at September 30, 2022 15,299 ​ $ 11.03
Schedule of earnings per share	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ September 30, ​ September 30, ​ 2022 2021 2022 2021 ​ ​ ($000’s omitted except per share data) Net (loss)/income ​ $ (316) ​ $ 3,238 ​ $ (801) ​ $ 4,965 Weighted average common shares outstanding (basic) ​ 2,427 ​ 2,410 ​ 2,424 ​ 2,404 Unvested restricted stock ​ — ​ 10 ​ — ​ 10 Weighted average common shares outstanding (diluted) ​ 2,427 ​ 2,420 ​ 2,424 ​ 2,414 Basic ​ ​ ​ ​ ​ ​ Net (loss)/income per share ​ $ (0.13) ​ $ 1.34 ​ $ (0.33) ​ $ 2.07 Diluted ​ ​ ​ ​ ​ Net (loss)/income per share ​ $ (0.13) ​ $ 1.34 ​ $ (0.33) ​ $ 2.06

Business Segments (Tables)

Business Segments (Tables)	9 Months Ended
	Sep. 30, 2022
Business Segments
Schedule of information regarding operations in business segment	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ($000’s omitted except per share data) ​ ​ ​ ATG ​ CPG ​ Consolidated ​ ​ ​ Three Months Ended ​ Three Months Ended ​ Three Months Ended ​ ​ September 30, ​ September 30, ​ September 30, ​ 2022 2021 2022 2021 2022 2021 Revenues from unaffiliated customers ​ $ 8,823 ​ $ 8,449 ​ $ 2,168 ​ $ 2,466 ​ $ 10,991 ​ $ 10,915 ​ ​ ​ ​ ​ ​ ​ ​ Cost of goods sold, inclusive of dep. & amort. ​ (7,973) ​ (6,762) ​ (1,495) ​ (2,381) ​ (9,468) ​ ​ (9,143) ​ Gross profit ​ 850 ​ 1,687 ​ 673 ​ 85 ​ 1,523 ​ 1,772 ​ Gross margin % 9.6 % 20.0 % 31.0 % 3.4 % 13.9 % 16.2 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Selling, general and administrative ​ (1,541) ​ (2,240) ​ (402) ​ (481) ​ (1,943) ​ (2,721) ​ Legal settlement awards ​ ​ — ​ ​ (1,800) ​ ​ — ​ ​ (90) ​ ​ — ​ ​ (1,890) ​ Total operating costs and expenses ​ (9,514) ​ (10,802) ​ (1,897) ​ (2,952) ​ (11,411) ​ (13,754) ​ Operating (loss)/income ​ (691) ​ (2,353) ​ 271 ​ (486) ​ (420) ​ (2,839) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Employee retention credit (ERC) ​ ​ — ​ ​ 1,598 ​ ​ — ​ ​ 380 ​ ​ — ​ ​ 1,978 ​ Paycheck Protection Program loan forgiveness ​ ​ — ​ ​ 4,000 ​ ​ — ​ ​ — ​ ​ — ​ ​ 4,000 ​ Interest expense ​ ​ (50) ​ ​ (5) ​ ​ — ​ ​ — ​ ​ (50) ​ ​ (5) ​ Total other (expense)/income ​ ​ (50) ​ ​ 5,593 ​ ​ — ​ ​ 380 ​ ​ (50) ​ ​ 5,973 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (Loss)/ income before income taxes ​ ​ (741) ​ ​ 3,240 ​ ​ 271 ​ ​ (106) ​ ​ (470) ​ ​ 3,134 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income tax (benefit)/provision ​ (203) ​ (83) ​ 49 ​ (21) ​ (154) ​ (104) ​ Net (loss)/income ​ $ (538) ​ $ 3,323 ​ $ 222 ​ $ (85) ​ $ (316) ​ $ 3,238 ​ Capital expenditures ​ $ 451 ​ $ 54 ​ $ 46 ​ $ 1 ​ $ 497 ​ $ 55 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ($000’s omitted except per share data) ​ ​ ATG ​ CPG ​ Consolidated ​ ​ Nine Months Ended ​ Nine Months Ended ​ Nine Months Ended ​ ​ September 30, ​ September 30, ​ September 30, ​ 2022 2021 2022 2021 2022 2021 Revenues from unaffiliated customers ​ $ 26,739 ​ $ 23,495 ​ $ 6,650 ​ $ 6,508 ​ $ 33,389 ​ $ 30,003 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cost of goods sold, inclusive of dep. & amort. ​ (22,843) ​ (19,214) ​ (5,217) ​ (6,152) ​ ​ (28,060) ​ ​ (25,366) ​ Gross profit ​ 3,896 ​ 4,281 ​ 1,433 ​ 356 ​ 5,329 ​ 4,637 ​ Gross margin % 14.6 % 18.2 % 21.5 % 5.5 % 16.0 % 15.5 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Selling, general and administrative ​ (4,890) ​ (5,586) ​ (1,306) ​ (1,317) ​ (6,196) ​ (6,903) ​ Legal settlement awards ​ ​ — ​ ​ (1,800) ​ ​ — ​ ​ (90) ​ ​ — ​ ​ (1,890) ​ Total operating costs and expenses ​ (27,733) ​ (26,600) ​ (6,523) ​ (7,559) ​ (34,256) ​ (34,159) ​ Operating (loss)/income ​ (994) ​ (3,105) ​ 127 ​ (1,051) ​ (867) ​ (4,156) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Employee retention credit (ERC) ​ ​ — ​ ​ 4,584 ​ ​ — ​ ​ 1,038 ​ ​ — ​ ​ 5,622 ​ Paycheck Protection Program loan forgiveness ​ ​ — ​ ​ 4,000 ​ ​ — ​ ​ — ​ ​ — ​ ​ 4,000 ​ Interest expense ​ ​ (194) ​ ​ (130) ​ ​ — ​ ​ (2) ​ ​ (194) ​ ​ (132) ​ Gain on sale of equipment ​ ​ 26 ​ ​ — ​ ​ — ​ ​ — ​ ​ 26 ​ ​ — ​ Total other (expense)/income ​ ​ (168) ​ ​ 8,454 ​ ​ — ​ ​ 1,036 ​ ​ (168) ​ ​ 9,490 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (Loss)/income before income taxes ​ (1,162) ​ 5,349 ​ 127 ​ (15) ​ (1,035) ​ 5,334 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income tax (benefit)/provision ​ ​ (263) ​ ​ 370 ​ ​ 29 ​ ​ (1) ​ ​ (234) ​ ​ 369 ​ Net (loss)/income ​ $ (899) ​ $ 4,979 ​ $ 98 ​ $ (14) ​ $ (801) ​ $ 4,965 ​ Capital expenditures ​ $ 841 ​ $ 64 ​ $ 46 ​ $ 4 ​ $ 887 ​ $ 68 ​

Business Description and Summ_4

Business Description and Summary of Significant Accounting Policies - Estimated useful lives of depreciable properties (Details)	9 Months Ended
	Sep. 30, 2022
Buildings and improvements | Minimum
Property, Plant and Equipment [Line Items]
Estimated useful lives of depreciable properties	5 years
Buildings and improvements | Maximum
Property, Plant and Equipment [Line Items]
Estimated useful lives of depreciable properties	40 years
Machinery and equipment | Minimum
Property, Plant and Equipment [Line Items]
Estimated useful lives of depreciable properties	5 years
Machinery and equipment | Maximum
Property, Plant and Equipment [Line Items]
Estimated useful lives of depreciable properties	20 years
Tooling | Minimum
Property, Plant and Equipment [Line Items]
Estimated useful lives of depreciable properties	3 years
Tooling | Maximum
Property, Plant and Equipment [Line Items]
Estimated useful lives of depreciable properties	5 years

Business Description and Summ_5

Business Description and Summary of Significant Accounting Policies - Additional Information (Details)	9 Months Ended		12 Months Ended
	Sep. 30, 2022 USD ($) Y	Sep. 30, 2021 USD ($)	Dec. 31, 2021 USD ($)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for doubtful accounts	$ 140,000		$ 131,000
Warranty period	27 months
Warranty reserve	$ 543,000		511,000
Inventory reserve	1,631,000		1,742,000
Income taxes, refund received	811,000	$ 345,000
Income taxes paid	50,000	720,000
Interest paid	76,000	$ 110,000
Impairment of long-lived assets	$ 0		$ 0
Minimum
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Period inventory is expected to be used	1 year
Number of years of customer requirements | Y	2
Number of year's supply | Y	1

Inventories - Summary of invent

Inventories - Summary of inventories (Details) - USD ($)	Sep. 30, 2022	Dec. 31, 2021
Inventories
Raw material and common parts	$ 15,007,000	$ 15,952,000
Work-in-process	3,078,000	3,432,000
Finished goods	2,398,000	2,490,000
Inventory, Gross	20,483,000	21,874,000
Less inventory reserve	(1,631,000)	(1,742,000)
Total inventories	$ 18,852,000	$ 20,132,000

Property, Plant and Equipment -

Property, Plant and Equipment - Summary of property, plant and equipment (Details) - USD ($)	Sep. 30, 2022	Dec. 31, 2021
Property, Plant and Equipment [Line Items]
Property, plant and equipment, Gross	$ 33,323,000	$ 32,473,000
Less accumulated depreciation and amortization	(22,765,000)	(21,916,000)
Total property, plant and equipment	10,558,000	10,557,000
Land
Property, Plant and Equipment [Line Items]
Property, plant and equipment, Gross	7,000	7,000
Buildings
Property, Plant and Equipment [Line Items]
Property, plant and equipment, Gross	11,831,000	11,363,000
Machinery, equipment and tooling
Property, Plant and Equipment [Line Items]
Property, plant and equipment, Gross	20,648,000	20,689,000
Construction in progress
Property, Plant and Equipment [Line Items]
Property, plant and equipment, Gross	$ 837,000	$ 414,000

Property, Plant and Equipment_2

Property, Plant and Equipment - Additional Information (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Property, Plant and Equipment [Line Items]
Depreciation and amortization expense	$ 294,000	$ 329,000	$ 916,000	$ 1,043,000
Amortization expense	8,000	$ 8,000	23,000	$ 42,000
Property, plant and equipment, Gross	33,323,000		33,323,000		$ 32,473,000
Construction in progress
Property, Plant and Equipment [Line Items]
Property, plant and equipment, Gross	837,000		837,000		414,000
Construction in progress (CIP) building improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment, Gross	418,000		418,000		110,000
Construction in progress (CIP) machinery & equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment, Gross	$ 419,000		$ 419,000		$ 304,000

Long-Term Debt - Summary of lon

Long-Term Debt - Summary of long term debt (Details) - USD ($)	Sep. 30, 2022	Dec. 31, 2021
Debt Instrument
Long-term debt, Total	$ 566,000	$ 5,026,000
Less current portion	(240,000)	(276,000)
Long-term debt	326,000	4,750,000
Line of credit payable to a financial institution; Interest rate is the BSBY Daily Floating Rate (A)
Debt Instrument
Long-term debt, Total	0	4,250,000
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 1.795535% - 1.835015% as of September 30, 2022) (B)
Debt Instrument
Long-term debt, Total	547,000	712,000
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) (C)
Debt Instrument
Long-term debt, Total	$ 19,000	$ 64,000

Long-Term Debt - Summary of l_2

Long-Term Debt - Summary of long term debt information (Details)	9 Months Ended
	Sep. 30, 2022
Line of credit payable to a financial institution; Interest rate is the BSBY Daily Floating Rate (A)
Debt Instrument
Spread on variable rate	1.65%
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 1.795535% - 1.835015% as of September 30, 2022) (B) | Minimum
Debt Instrument
Percentage of floating interest rate payable	1.79554%
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 1.795535% - 1.835015% as of September 30, 2022) (B) | 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) (C) | 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) (C) | Maximum
Debt Instrument
Percentage of floating interest rate payable	1.8693%

Long-Term Debt - Maturities (De

Long-Term Debt - Maturities (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Maturities - Topic 842
2022	$ 83	$ 296
2023	246	246
2024	192	192
2025	83	83
2026	11	11
Total principal and interest payments	615	828
Less amount representing interest	(49)	(52)
Present value of net minimum lease payments	566	776
Less current portion	(240)	(276)
Long-term principle payments	$ 326	$ 500

Long-Term Debt - Additional Inf

Long-Term Debt - Additional Information (Details) - USD ($)	3 Months Ended	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021	Jul. 09, 2021	Jun. 28, 2018
Debt Instrument
Other income: Paycheck Protection Program loan forgiveness	$ 4,000,000		$ 4,000,000
Long-term debt		$ 566,000		$ 5,026,000
Principal maturities of long-term debt for 2022		66,000
Principal maturities of long-term debt for 2023		231,000
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
Line of credit payable to a financial institution; Interest rate is the BSBY Daily Floating Rate (A)
Debt Instrument
Maximum borrowing capacity		$ 6,000,000
Commitment fee on unused portion of line of credit		0.25%
Long-term debt		$ 0		4,250,000
Spread on variable rate		1.65%
Minimum liquidity cash on hand plus line of credit availability		$ 9,000,000
Line of credit payable to a financial institution; Interest rate is the BSBY Daily Floating Rate (A) | Index Floor
Debt Instrument
Debt Instrument, Index Floor Rate		0.50%
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 1.795535% - 1.835015% as of September 30, 2022) (B)
Debt Instrument
Maximum borrowing capacity					$ 1,000,000
Loan term for equipment covered by loan		60 months
Long-term debt		$ 547,000		712,000
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) (C)
Debt Instrument
Lease line of credit						$ 1,000,000
Lease term for equipment covered by lease line of credit		60 months
Long-term debt		$ 19,000		$ 64,000

Postretirement Benefit Plan (De

Postretirement Benefit Plan (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Postretirement Benefit Plan
Future obligation of benefits	$ 5,885,000		$ 5,885,000		$ 5,865,000
Benefit cost	$ 70,000	$ 48,000	$ 208,000	$ 143,000

Shareholders' Equity - Summary

Shareholders' Equity - Summary of common shareholders' equity (Details) - USD ($) $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Sep. 30, 2022	Sep. 30, 2021
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	$ 34,992	$ 35,738	$ 35,366	$ 35,470	$ 34,243	$ 33,737	$ 35,366	$ 33,737
Retirement benefits adjustment	22	22	22	15	16	15
Stock based compensation	59	42	25	25	25	31
Purchase of treasury shares						(81)
Net (loss)/income	(316)	(810)	325	3,238	1,186	541	(801)	4,965
Ending balance	34,757	34,992	35,738	38,748	35,470	34,243	34,757	38,748
Retained Earnings
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	25,373	26,183	25,858	23,530	22,344	21,803	25,858	21,803
Retirement benefits adjustment	0	0	0	0	0	0
Stock based compensation	0	0	0	0	0	0
Purchase of treasury shares						0
Net (loss)/income	(316)	(810)	325	3,238	1,186	541
Ending balance	25,057	25,373	26,183	26,768	23,530	22,344	25,057	26,768
Accumulated Other Comprehensive Income
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	(3,864)	(3,886)	(3,908)	(1,325)	(1,341)	(1,356)	(3,908)	(1,356)
Retirement benefits adjustment	22	22	22	15	16	15
Stock based compensation	0	0	0	0	0	0
Purchase of treasury shares						0
Net (loss)/income	0	0	0	0	0	0
Ending balance	(3,842)	(3,864)	(3,886)	(1,310)	(1,325)	(1,341)	(3,842)	(1,310)
Common Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	523	523	523	523	523	523	523	523
Retirement benefits adjustment	0	0	0	0	0	0
Stock based compensation	0	0	0	0	0	0
Purchase of treasury shares						0
Net (loss)/income	0	0	0	0	0	0
Ending balance	523	523	523	523	523	523	523	523
Capital in excess of par value
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	14,509	14,502	14,500	14,497	14,492	14,481	14,500	14,481
Retirement benefits adjustment	0	0	0	0	0	0
Stock based compensation	26	7	2	1	5	11
Purchase of treasury shares						0
Net (loss)/income	0	0	0	0	0	0
Ending balance	14,535	14,509	14,502	14,498	14,497	14,492	14,535	14,498
ESOT
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	(258)	(258)	(258)	(359)	(359)	(359)	(258)	(359)
Retirement benefits adjustment	0	0	0	0	0	0
Stock based compensation	0	0	0	0	0	0
Purchase of treasury shares						0
Net (loss)/income	0	0	0	0	0	0
Ending balance	(258)	(258)	(258)	(359)	(359)	(359)	(258)	(359)
Treasury stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	(1,291)	(1,326)	(1,349)	(1,396)	(1,416)	(1,355)	(1,349)	(1,355)
Retirement benefits adjustment	0	0	0	0	0	0
Stock based compensation	33	35	23	24	20	20
Purchase of treasury shares						(81)
Net (loss)/income	0	0	0	0	0	0
Ending balance	$ (1,258)	$ (1,291)	$ (1,326)	$ (1,372)	$ (1,396)	$ (1,416)	$ (1,258)	$ (1,372)

Shareholders' Equity - Share Re

Shareholders' Equity - Share Repurchase Program (Details) - Share Repurchase Program - shares	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
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	0

Shareholders' Equity - Restrict

Shareholders' Equity - Restricted stock activity (Details)	9 Months Ended
	Sep. 30, 2022 $ / shares shares
Restricted Share Activity:
Unvested at the beginning | shares	6,576
Granted | shares	18,375
Vested | shares	9,652
Unvested at the end | shares	15,299
Weighted Average Grant Date Fair Value
Unvested, beginning balance | $ / shares	$ 7.60
Granted | $ / shares	11.03
Vested | $ / shares	8.69
Unvested, ending balance | $ / shares	$ 11.03

Shareholders' Equity - Calculat

Shareholders' Equity - Calculation of earning per share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Sep. 30, 2022	Sep. 30, 2021
Shareholders' Equity
Number of shares that could potentially dilute basic earnings per share in the future	15,299			9,868			15,299	9,868
Net (loss)/income	$ (316)	$ (810)	$ 325	$ 3,238	$ 1,186	$ 541	$ (801)	$ 4,965
Weighted average common shares outstanding (basic)	2,427,000			2,410,000			2,424,000	2,404,000
Unvested restricted stock	0			10,000			0	10,000
Weighted average common shares outstanding (diluted)	2,427,000			2,420,000			2,424,000	2,414,000
Basic
Net (loss)/income per share	$ (0.13)			$ 1.34			$ (0.33)	$ 2.07
Diluted
Net (loss)/income per share	$ (0.13)			$ 1.34			$ (0.33)	$ 2.06

Shareholders' Equity - 2012 Lon

Shareholders' Equity - 2012 Long-Term Incentive Plan (Details) - USD ($)		9 Months Ended
	Jan. 01, 2021	Sep. 30, 2022	Sep. 30, 2021
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Number of restricted stock shares vested		9,652
Stock-based compensation expense related to the restrictive share awards		$ 126,000	$ 75,000
Non-employee directors
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Number of restricted stock issued		18,375
Compensation expense not yet recognized		$ 203,000
2012 Long Term Incentive Plan
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
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

Litigation (Details)

Litigation (Details)	9 Months Ended
	Sep. 30, 2022 USD ($)
Litigation
Damages sought value	$ 5,000,000
Insured amount	3,000,000
Retention amount	1,000,000
Excess coverage policy	3,000,000
Payment as retention from excess coverage policy	$ 3,000,000
Former CEO
Litigation
Multiplier of severance Payment With Average Annual Compensation	2.99
Aero, Inc.
Litigation
Gain or loss on litigation	$ 0

Related Party Transactions (Det

Related Party Transactions (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Related Party Transactions
Related party legal fees (refunded) paid	$ (3,155)	$ 13,000	$ 51,000	$ 59,000
Accrued unbilled legal fees	$ 5,000	$ 13,000	$ 5,000	$ 13,000

Business Segments - Summary of

Business Segments - Summary of company's operations (Details) - USD ($) $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Sep. 30, 2022	Sep. 30, 2021
Business Segments
Revenues from unaffiliated customers	$ 10,991			$ 10,915			$ 33,389	$ 30,003
Cost of goods sold, inclusive of dep. & amort.	(9,468)			(9,143)			(28,060)	(25,366)
Gross profit	1,523			1,772			5,329	4,637
Operating Expenses:
Selling, general and administrative	(1,943)			(2,721)			(6,196)	(6,903)
Legal settlement awards				(1,890)				(1,890)
Operating (loss)/income	420			2,839			867	4,156
Other income/(expense):
Paycheck Protection Program loan forgiveness				4,000				4,000
Interest expense	(50)			(5)			(194)	(132)
Gain on sale of equipment							26
Total other (expense)/income, net	(50)			5,973			(168)	9,490
(Loss) income before income taxes	(470)			3,134			(1,035)	5,334
Income tax (benefit)/provision	(154)			(104)			(234)	369
Net (loss)/income	(316)	$ (810)	$ 325	3,238	$ 1,186	$ 541	(801)	4,965
Operating Segments
Business Segments
Revenues from unaffiliated customers	10,991			10,915			33,389	30,003
Cost of goods sold, inclusive of dep. & amort.	(9,468)			(9,143)			(28,060)	(25,366)
Gross profit	$ 1,523			$ 1,772			$ 5,329	$ 4,637
Gross margin %	13.90%			16.20%			16%	15.50%
Operating Expenses:
Selling, general and administrative	$ (1,943)			$ (2,721)			$ (6,196)	$ (6,903)
Legal settlement awards				(1,890)				(1,890)
Total operating costs and expenses	(11,411)			(13,754)			(34,256)	(34,159)
Operating (loss)/income	(420)			(2,839)			(867)	(4,156)
Other income/(expense):
Employee retention credit (ERC)				1,978				5,622
Paycheck Protection Program loan forgiveness				4,000				4,000
Interest expense	(50)			(5)			(194)	(132)
Gain on sale of equipment							26
Total other (expense)/income, net	(50)			5,973			(168)	9,490
(Loss) income before income taxes	(470)			3,134			(1,035)	5,334
Income tax (benefit)/provision	(154)			(104)			(234)	369
Net (loss)/income	(316)			3,238			(801)	4,965
Capital expenditures	497			55			887	68
Operating Segments | ATG
Business Segments
Revenues from unaffiliated customers	8,823			8,449			26,739	23,495
Cost of goods sold, inclusive of dep. & amort.	(7,973)			(6,762)			(22,843)	(19,214)
Gross profit	$ 850			$ 1,687			$ 3,896	$ 4,281
Gross margin %	9.60%			20%			14.60%	18.20%
Operating Expenses:
Selling, general and administrative	$ (1,541)			$ (2,240)			$ (4,890)	$ (5,586)
Legal settlement awards				(1,800)				(1,800)
Total operating costs and expenses	(9,514)			(10,802)			(27,733)	(26,600)
Operating (loss)/income	(691)			(2,353)			(994)	(3,105)
Other income/(expense):
Employee retention credit (ERC)				1,598				4,584
Paycheck Protection Program loan forgiveness				4,000				4,000
Interest expense	(50)			(5)			(194)	(130)
Gain on sale of equipment							26
Total other (expense)/income, net	(50)			5,593			(168)	8,454
(Loss) income before income taxes	(741)			3,240			(1,162)	5,349
Income tax (benefit)/provision	(203)			(83)			(263)	370
Net (loss)/income	(538)			3,323			(899)	4,979
Capital expenditures	451			54			841	64
Operating Segments | CPG
Business Segments
Revenues from unaffiliated customers	2,168			2,466			6,650	6,508
Cost of goods sold, inclusive of dep. & amort.	(1,495)			(2,381)			(5,217)	(6,152)
Gross profit	$ 673			$ 85			$ 1,433	$ 356
Gross margin %	31%			3.40%			21.50%	5.50%
Operating Expenses:
Selling, general and administrative	$ (402)			$ (481)			$ (1,306)	$ (1,317)
Legal settlement awards				(90)				(90)
Total operating costs and expenses	(1,897)			(2,952)			(6,523)	(7,559)
Operating (loss)/income	271			(486)			127	(1,051)
Other income/(expense):
Employee retention credit (ERC)				380				1,038
Interest expense								(2)
Total other (expense)/income, net				380				1,036
(Loss) income before income taxes	271			(106)			127	(15)
Income tax (benefit)/provision	49			(21)			29	(1)
Net (loss)/income	222			(85)			98	(14)
Capital expenditures	$ 46			$ 1			$ 46	$ 4

Business Segments (Details)

Business Segments (Details)	9 Months Ended
	Sep. 30, 2022 USD ($) segment	Dec. 31, 2021 USD ($)
Segment Reporting Information [Line Items]
Number of operating segments | segment	2
Total identifiable assets	$ 47,444,000	$ 50,093,000
Operating Segments
Segment Reporting Information [Line Items]
Total identifiable assets	47,444,000	50,093,000
Operating Segments | ATG
Segment Reporting Information [Line Items]
Total identifiable assets	37,340,000	40,871,000
Operating Segments | CPG
Segment Reporting Information [Line Items]
Total identifiable assets	$ 10,104,000	$ 9,222,000