Servotronics (SVT) 10-Q 14 Nov 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Oct. 31, 2016
Document and Entity Information [Abstract]
Entity Registrant Name	SERVOTRONICS INC /DE/
Entity Central Index Key	89,140
Trading Symbol	svt
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		2,467,235
Document Type	10-Q
Document Period End Date	Sep. 30, 2016
Amendment Flag	false
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 2,867	$ 3,268
Accounts receivable, net	7,347	6,838
Inventories, net	13,939	12,487
Prepaid income taxes	106	177
Deferred income taxes	1,155	1,155
Other assets	401	326
Total current assets	25,815	24,251
Property, plant and equipment, net	9,941	9,755
Other non-current assets	374	368
Total Assets	36,130	34,374
Current liabilities:
Current portion of long-term debt	548	548
Accounts payable	2,116	1,518
Accrued employee compensation and benefit costs	1,836	1,852
Other accrued liabilities	519	374
Total current liabilities	5,019	4,292
Long-term debt	3,114	3,524
Accrued arbitration award liability	471	471
Deferred income taxes	645	645
Commitments and contingencies (See Note 7)
Shareholders' equity:
Common stock, par value $.20; authorized 4,000,000 shares; issued 2,614,506 shares; outstanding 2,308,839 (2,280,813 - 2015) shares	523	523
Capital in excess of par value	14,146	14,092
Retained earnings	14,643	13,395
Accumulated other comprehensive loss	(3)	(3)
Employee stock ownership trust commitment	(863)	(863)
Treasury stock, at cost 147,271 (175,297 - 2015) shares	(1,565)	(1,702)
Total shareholders' equity	26,881	25,442
Total Liabilities and Shareholders' Equity	$ 36,130	$ 34,374

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares	Sep. 30, 2016	Dec. 31, 2015
Statement Of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 0.20	$ 0.20
Common stock, shares authorized	4,000,000	4,000,000
Common stock, shares issued	2,614,506	2,614,506
Common stock, shares outstanding	2,308,839	2,280,813
Treasury stock, shares	147,271	175,297

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Income Statement [Abstract]
Revenue	$ 9,465	$ 9,709	$ 28,708	$ 27,122
Cost, expenses and other (income):
Cost of goods sold, exclusive of depreciation and amortization	7,043	6,893	20,888	20,295
Selling, general and administrative	1,658	1,486	4,815	4,563
Depreciation and amortization	198	185	610	525
Interest expense	18	18	54	53
Arbitration award expense				50
Insurance proceeds - arbitration				(4,500)
Other income, net	(9)	(1)	(19)	(131)
Total expenses	8,908	8,581	26,348	20,855
Income before income tax provision	557	1,128	2,360	6,267
Income tax provision	191	384	732	2,131
Net income	$ 366	$ 744	$ 1,628	$ 4,136
Basic
Net income per share (in dollars per share)	$ 0.17	$ 0.34	$ 0.74	$ 1.90
Diluted
Net income per share (in dollars per share)	$ 0.16	$ 0.33	$ 0.71	$ 1.83

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Cash flows related to operating activities:
Net income	$ 1,628	$ 4,136
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization	610	525
Deferred income tax		1,752
Stock based compensation	386	271
Increase in inventory reserve	14	112
(Decrease) increase in allowance for doubtful accounts	(8)	19
Loss on disposal of property and equipment		(5)
Change in assets and liabilities:
Accounts receivable	(501)	(644)
Inventories	(1,466)	(766)
Prepaid income taxes	63
Other current assets	(75)	(381)
Other non-current assets	(6)	11
Accounts payable	598	674
Accrued employee compensation and benefit costs	(16)	348
Accrued arbitration award liability		(5,152)
Other accrued liabilities	145	(62)
Accrued income taxes		232
Net cash provided by operating activities	1,372	1,070
Cash flows related to investing activities:
Capital expenditures - property, plant and equipment	(786)	(1,385)
Proceeds from sale of assets		33
Net cash used in investing activities	(786)	(1,352)
Cash flows related to financing activities:
Principal payments on long-term debt	(410)	(410)
Purchase of treasury shares	(197)	(114)
Cash dividend	(380)	(375)
Net cash used by financing activities	(987)	(899)
Net decrease in cash and cash equivalents	(401)	(1,181)
Cash and cash equivalents at beginning of period	3,268	4,166
Cash and cash equivalents at end of period	$ 2,867	$ 2,985

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	1. Basis of Presentation The accompanying consolidated financial statements reflect all adjustments which are, in the opinion of management, necessary for a fair statement of the results for the interim periods presented. All such adjustments are of a normal recurring nature. Operating results for the three and nine months ended September 30, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016. The consolidated financial statements should be read in conjunction with the 2015 annual report and the notes thereto.

Business Description and Summar

Business Description and Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
Business Description and Summary of Significant Accounting Policies	2. Business Description and Summary of Significant Accounting Policies Business Description Servotronics, Inc. and its subsidiaries design, manufacture and market advanced technology products consisting primarily of control components and consumer products consisting of knives and various types of cutlery and other edged products. Principles of Consolidation The consolidated financial statements include the accounts of Servotronics, Inc. and its wholly-owned subsidiaries (the “Company”). All intercompany balances and transactions have been eliminated upon consolidation. Cash and Cash Equivalents The Company considers cash and cash equivalents to include all cash accounts and short-term investments purchased with an original maturity of three months or less. 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 $80,000 at September 30, 2016 and $88,000 at December 31, 2015. The Company does not accrue interest on past due receivables. Revenue Recognition Revenues are recognized as services are rendered or as units are shipped and at the designated FOB point consistent with the transfer of title, risks and rewards of ownership. Such 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. Inventories Inventories are stated at the lower of standard 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 one year are applied to the gross value of the inventory through a reserve of approximately $1,443,000 and $1,429,000 at September 30, 2016 and December 31, 2015, 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. 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. In 2015, the Company’s CPG received approximately $700,000 in County and State grants that were used towards the purchase of machinery and equipment. The Company recorded the grant proceeds as a reduction to the carrying value of the related assets. See Note 7, Commitments and Contingencies, for more information related to the facility expansion and subject grants. Depreciation is provided on the basis of estimated useful lives of depreciable properties, primarily by the straight-line method for financial statement purposes and by accelerated methods for tax purposes. Depreciation expense includes the amortization of capital lease assets. The estimated useful lives of depreciable properties are generally as follows: Buildings and improvements 5-40 years Machinery and equipment 5-20 years Tooling 3-5 years Income Taxes The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax basis of assets and liabilities, as well as operating loss and credit carryforwards. The Company and its subsidiaries file a consolidated federal income tax return, combined New York and Texas state income tax returns and separate Pennsylvania and Arkansas income tax returns. The Company’s practice is to recognize interest and/or penalties related to income tax matters in income tax expense. The Company did not have any accrued interest or penalties included in its consolidated balance sheets at September 30, 2016 or December 31, 2015, and did not recognize any interest and/or penalties in its consolidated statements of income during the three and nine months ended September 30, 2016 and 2015. The Company did not have any material uncertain tax positions or unrecognized tax benefits or obligations as of September 30, 2016 and December 31, 2015. The 2013 through 2015 federal and state tax returns remain subject to examination. Supplemental Cash Flow Information Income taxes paid during the nine months ended September 30, 2016 and 2015 amounted to approximately $644,000 and $136,000. Interest paid during the nine months ended September 30, 2016 and 2015 amounted to approximately $ , respectively. Employee Stock Ownership Plan Contributions to the employee stock ownership plan are determined annually by the Company according to plan formula. Impairment of Long-Lived Assets The Company reviews long-lived assets for impairment annually or whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable based on undiscounted future operating cash flow analyses. If an impairment is determined to exist, any related impairment loss is calculated based on fair value. 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, 2016 and December 31, 2015. 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 with classifications adopted in the current period. Research and Development Costs Research and development costs are expensed as incurred. Concentration of Credit Risks Financial instruments that potentially subject the Company to concentration of credit risks principally consist of cash accounts in financial institutions. Although the accounts exceed the federally insured deposit amount, management does not anticipate nonperformance by the financial institutions. Fair Value of Financial Instruments The carrying amount of cash and cash equivalents, 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 In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (ASU) No. 2016-09, “Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting,” which amends the current stock compensation guidance. The amendments simplify the accounting for the taxes related to stock based compensation, including adjustments to how excess tax benefits and a company’s payments for tax withholdings should be classified. The standard is effective for fiscal periods beginning after December 15, 2016, with early adoption permitted. The Company is evaluating the impact, if any, the adoption of this standard will have on the consolidated financial statements and related disclosures.

Inventories

Inventories	9 Months Ended
	Sep. 30, 2016
Inventory Disclosure [Abstract]
Inventories	3. Inventories September 30, 2016 December 31, 2015 ($000’s omitted) Raw material and common parts, net of reserve $ 7,624 $ 6,627 Work-in-process, net of reserve 2,840 2,699 Finished goods, net of reserve 3,475 3,161 Total inventories $ 13,939 $ 12,487

Property, Plant and Equipment

Property, Plant and Equipment	9 Months Ended
	Sep. 30, 2016
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment	4. Property, Plant and Equipment September 30, 2016 December 31, 2015 ($000’s omitted) Land $ 21 $ 21 Buildings 10,414 10,343 Machinery, equipment and tooling 15,642 14,934 Construction in progress 64 57 26,141 25,355 Less accumulated depreciation and amortization (16,200 ) (15,600 ) Total property, plant and equipment $ 9,941 $ 9,755 Property, plant and equipment includes land and facilities in Elma and Franklinville, New York. As of September 30, 2016 and December 31, 2015, accumulated depreciation on the building amounted to approximately $3,418,000 and $3,258,000, respectively. Depreciation and amortization expense amounted to $198,00 and $ for the three month periods ended September 30, 2016 and 2015, respectively, and amounted to $610,000 and $525,000 for the nine month periods ended September 30, 2016 and 2015, respectively. The Company believes that it 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, 2016, there is approximately $64,000 ($57,000 – 2015) of construction in progress included in property, plant and equipment all of which is related to capital projects at the Advanced Technology Group. See Note 7, Commitments and Contingencies, for more information on anticipated capital expenditures.

Long-Term Debt

Long-Term Debt	9 Months Ended
	Sep. 30, 2016
Debt Disclosure [Abstract]
Long-Term Debt	5. Long-Term Debt September 30, December 31, 2016 2015 ($000’s omitted) Term loan payable to a financial institution; Interest rate option of bank prime or Libor plus 1.4% (1.92% as of September 30, 2016); monthly principal payments of $21,833 through 2021 with a balloon payment of $786,000 due December 1, 2021 $ 2,162 $ 2,358 Term loan payable to a financial institution; Interest rate option of bank prime or Libor plus 1.4% (1.92% as of September 30, 2016); monthly principal payments of $23,810 through 2021 1,500 1,714 3,662 4,072 Less current portion (548 ) (548 ) $ 3,114 $ 3,524 The Company has a $2,000,000 line of credit on which there was no balance outstanding at September 30, 2016 and December 31, 2015. The term loans and line of credit are secured by all personal property of the Company with the exception of certain equipment that was purchased from proceeds of government grants. Certain lenders require the Company to comply with debt covenants as described in the specific loan documents, including a debt service ratio. At September 30, 2016 and December 31, 2015 the Company was in compliance with these covenants.

Shareholders' Equity

Shareholders' Equity	9 Months Ended
	Sep. 30, 2016
Equity [Abstract]
Shareholders' Equity	6. Shareholders’ Equity ($000’s omitted except for share data) Common Stock Number of shares issued Amount Capital in excess of par value Retained earnings ESOT Treasury stock Accumulated other comprehensive loss Total shareholders’ equity Balance at December 31, 2015 2,614,506 $ 523 $ 14,092 $ 13,395 $ (863 ) $ (1,702 ) $ (3 ) $ 25,442 Net income - - - 1,628 - - - 1,628 Purchase of treasury shares - - - - - (197 ) - (197 ) Cash dividend - - - (380 ) - - - (380 ) Stock based compensation, net of tax benefit - - 54 - - 334 - 388 Balance at September 30, 2016 2,614,506 $ 523 $ 14,146 $ 14,643 $ (863 ) $ (1,565 ) $ (3 ) $ 26,881 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, 2016, the Company has purchased shares and there remain shares available to purchase under this program. There were shares purchased by the Company during the nine month period ended September 30, 2016. On April 18, 2013, the Company issued 165,000 shares of restricted stock to Executive Officers of the Company under the Company’s 2012 Long-Term Incentive Plan that was approved by the shareholders at the 2012 Annual Meeting of Shareholders. This plan authorizes the issuance of up to 300,000 shares. The restricted share awards vest over four year periods between January 2014 and January 2017 and have voting rights and accrue dividends prior to vesting. The aggregate amount of expense to the Company, measured based on grant date fair value is expected to be $1,336,500 and will be recognized over the four year requisite service period. On April 11, 2016, the Company issued 51,000 shares of restricted stock to Executive Officers and certain key management of the Company under the Company’s 2012 Long-Term Incentive Plan. The restricted share awards have varying vesting periods between January 2017 and January 2018; however, these shares have voting rights and accrue dividends prior to vesting. The aggregate amount of expense to the Company, measured based on grant date fair value is expected to be approximately $406,000 and will be recognized over the requisite service period. Included in the nine months ended September 30, 2016 and 2015 is approximately $386,000 and $271,000, respectively, of compensation expense related to the restricted share awards. On January 1, 2016, 41,250 shares of restricted stock vested of which shares were withheld and repurchased by the Company for approximately $145,000 to satisfy statutory minimum withholding tax requirements for those participants who elected this option as permitted under the Company’s 2012 Long-Term Incentive Plan. On March 14, 2016, the Company announced that its Board of Directors declared a $0.15 per share cash dividend. The dividend was subsequently paid on May 16, 2016 to shareholders of record on April 11, 2016 and was approximately $380,000 in the aggregate. These dividends do not represent that the Company will pay dividends on a regular or scheduled basis. The amount is recorded as a reduction to retained earnings on the accompanying consolidated balance sheet. Earnings Per Share Basic earnings per share is computed by dividing net earnings by the weighted average number of shares outstanding during the period. The weighted average number of common shares outstanding does not include any potentially dilutive securities or any unvested restricted shares of common stock. These unvested restricted shares, although classified as issued and outstanding, are considered forfeitable until the restrictions lapse and will not be included in the basic EPS calculation until the shares are vested. Diluted earnings per share is computed by dividing net earnings by the weighted average number of shares outstanding during the period plus the number of shares of common stock that would be issued assuming all contingently issuable shares having a dilutive effect on the earnings per share that were outstanding for the period. Incremental shares from assumed conversions are calculated as the number of shares that would be issued, net of the number of shares that could be purchased in the marketplace with the cash received upon stock option exercise. The dilutive effect of unvested restricted stock is determined using the treasury stock method. Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 ($000’s omitted except per share data) Net income $ 366 $ 744 $ 1,628 $ 4,136 Weighted average common shares outstanding (basic) 2,219 2,179 2,203 2,179 Incremental shares from assumed conversions of stock options - - - - Unvested restricted stock 92 82 92 82 Weighted average common Shares outstanding (diluted) 2,311 2,261 2,295 2,261 Basic Net income per share $ 0.17 $ 0.34 $ 0.74 $ 1.90 Diluted Net income per share $ 0.16 $ 0.33 $ 0.71 $ 1.83

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	7. Commitments and Contingencies Litigation. Final Arbitration Award. Agreement with respect to Insurance Claim Facility Expansion. The Company’s CPG was awarded certain incentives from the County of Cattaraugus Industrial Development Agency (CCIDA) in connection with the expansion of the Company’s CPG facility in Franklinville, New York and other proposed capital expenditures. The incentives include certain real property tax and sales tax abatements in connection with the proposed project. The Company’s CPG entered into customary lease and leaseback arrangements with the CCIDA to facilitate the various tax incentives. The Company’s CPG has also been awarded a $300,000 grant from Cattaraugus County, New York. The grant can be used towards new manufacturing equipment in connection with the proposed expansion project. As part of the terms of the Grant Contract with Cattaraugus County, the Company’s CPG has agreed to maintain certain employment levels for a period of five years from the date of the agreement, March 13, 2014. If the employment levels are not maintained, the Company will be required to repay the grant proceeds on a prorated basis. As of September 30, 2016, the Company has maintained the required employment levels. The Company’s CPG was also awarded a $416,000 New York State Community Development Block Grant from the Office of Community Renewal to be used towards the purchase of equipment. As of December 31, 2015, the Company had received the grants in full and recorded them as a reduction to the carrying value of the asset.

Litigation

Litigation	9 Months Ended
	Sep. 30, 2016
Litigation [Abstract]
Litigation	8. Litigation Except as set forth in Note 7, Commitments and Contingencies, there are no other legal proceedings currently pending by or against the Company other than ordinary routine litigation incidental to the business which is not expected to have a material adverse effect on the business or earnings of the Company.

Business Segments

Business Segments	9 Months Ended
	Sep. 30, 2016
Segment Reporting [Abstract]
Business Segments	9. Business Segments The Company operates in two business segments, Advanced Technology Group (“ATG”) and Consumer Products Group (“CPG”). The Company’s reportable segments are strategic business units that offer different products and services. The segments are composed of separate corporations and 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, 2016, the Company had identifiable assets of approximately $ ($34,374,000 – December 31, 2015) of which approximately $ ($22,789,000 – December 31, 2015) was for ATG and approximately $ ($11,585,000 – December 31, 2015) was for CPG. Information regarding the Company’s operations in these segments is summarized as follows ($000’s omitted): ATG CPG Consolidated Nine Months September 30, Nine Months September 30, Nine Months September 30, 2016 2015 2016 2015 2016 2015 Revenues from unaffiliated customers $ 23,023 $ 21,067 $ 5,685 $ 6,055 $ 28,708 $ 27,122 Cost of goods sold, exclusive of depreciation and amortization (16,060 ) (14,917 ) (4,828 ) (5,378 ) (20,888 ) (20,295 ) Selling, general and administrative (3,477 ) (3,367 ) (1,338 ) (1,196 ) (4,815 ) (4,563 ) Depreciation and amortization (412 ) (364 ) (198 ) (161 ) (610 ) (525 ) Interest expense (32 ) (30 ) (22 ) (23 ) (54 ) (53 ) Arbitration award expense - (50 ) - - - (50 ) Insurance proceeds - arbitration - 4,500 - - - 4,500 Other income, net 19 130 - 1 19 131 Income (loss) before income tax provision (benefit) 3,061 6,969 (701 ) (702 ) 2,360 6,267 Income tax provision (benefit) 949 2,370 (217 ) (239 ) 732 2,131 Net income (loss) $ 2,112 $ 4,599 $ (484 ) $ (463 ) $ 1,628 $ 4,136 Capital expenditures $ 613 $ 782 $ 173 $ 603 $ 786 $ 1,385 ATG CPG Consolidated Three Months September 30, Three Months September 30, Three Months September 30, 2016 2015 2016 2015 2016 2015 Revenues from unaffiliated customers $ 7,658 $ 7,513 $ 1,807 $ 2,196 $ 9,465 $ 9,709 Cost of goods sold, exclusive of depreciation and amortization (5,418 ) (5,060 ) (1,625 ) (1,833 ) (7,043 ) (6,893 ) Selling, general and administrative (1,240 ) (1,050 ) (418 ) (436 ) (1,658 ) (1,486 ) Depreciation and amortization (137 ) (124 ) (61 ) (61 ) (198 ) (185 ) Interest expense (11 ) (10 ) (7 ) (8 ) (18 ) (18 ) Other income, net 9 1 - - 9 1 Income (loss) before income tax provision (benefit) 861 1,270 (304 ) (142 ) 557 1,128 Income tax provision (benefit) 289 432 (98 ) (48 ) 191 384 Net income (loss) $ 572 $ 838 $ (206 ) $ (94 ) $ 366 $ 744 Capital expenditures $ 70 $ 407 $ 15 $ 341 $ 85 $ 748

Other Income

Other Income	9 Months Ended
	Sep. 30, 2016
Other Income and Expenses [Abstract]
Other Income	10. Other Income Components of other income include interest income on cash and cash equivalents, and other amounts not directly related to the sale of the Company’s products. Other income is immaterial in relationship to the consolidated financial statements.

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2016
Subsequent Events [Abstract]
Subsequent Events	11. Subsequent Events On November 8, 2016 the Company, through a wholly-owned subsidiary, entered into a contract to sell unused commercial real property in Franklinville, New York for approximately $180,000. It is anticipated the sale will be completed in the fourth quarter of fiscal 2016. Completion of the sale is subject to customary closing conditions. The Company estimates that the gain/loss on the sale will be immaterial to the consolidated financial statements.

Business Description and Summ17

Business Description and Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
Principles of Consolidation	Principles of Consolidation The consolidated financial statements include the accounts of Servotronics, Inc. and its wholly-owned subsidiaries (the “Company”). All intercompany balances and transactions have been eliminated upon consolidation.
Cash and Cash Equivalents	Cash and Cash Equivalents The Company considers cash and cash equivalents to include all cash accounts and short-term investments purchased with an original maturity of three months or less.
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 $80,000 at September 30, 2016 and $88,000 at December 31, 2015. The Company does not accrue interest on past due receivables.
Revenue Recognition	Revenue Recognition Revenues are recognized as services are rendered or as units are shipped and at the designated FOB point consistent with the transfer of title, risks and rewards of ownership. Such 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.
Inventories	Inventories Inventories are stated at the lower of standard 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 one year are applied to the gross value of the inventory through a reserve of approximately $1,443,000 and $1,429,000 at September 30, 2016 and December 31, 2015, 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.
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. In 2015, the Company’s CPG received approximately $700,000 in County and State grants that were used towards the purchase of machinery and equipment. The Company recorded the grant proceeds as a reduction to the carrying value of the related assets. See Note 7, Commitments and Contingencies, for more information related to the facility expansion and subject grants. Depreciation is provided on the basis of estimated useful lives of depreciable properties, primarily by the straight-line method for financial statement purposes and by accelerated methods for tax purposes. Depreciation expense includes the amortization of capital lease assets. The estimated useful lives of depreciable properties are generally as follows: Buildings and improvements 5-40 years Machinery and equipment 5-20 years Tooling 3-5 years
Income Taxes	Income Taxes The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax basis of assets and liabilities, as well as operating loss and credit carryforwards. The Company and its subsidiaries file a consolidated federal income tax return, combined New York and Texas state income tax returns and separate Pennsylvania and Arkansas income tax returns. The Company’s practice is to recognize interest and/or penalties related to income tax matters in income tax expense. The Company did not have any accrued interest or penalties included in its consolidated balance sheets at September 30, 2016 or December 31, 2015, and did not recognize any interest and/or penalties in its consolidated statements of income during the three and nine months ended September 30, 2016 and 2015. The Company did not have any material uncertain tax positions or unrecognized tax benefits or obligations as of September 30, 2016 and December 31, 2015. The 2013 through 2015 federal and state tax returns remain subject to examination.
Supplemental Cash Flow Information	Supplemental Cash Flow Information Income taxes paid during the nine months ended September 30, 2016 and 2015 amounted to approximately $644,000 and $136,000. Interest paid during the nine months ended September 30, 2016 and 2015 amounted to approximately $ , respectively.
Employee Stock Ownership Plan	Employee Stock Ownership Plan Contributions to the employee stock ownership plan are determined annually by the Company according to plan formula.
Impairment of Long-Lived Assets	Impairment of Long-Lived Assets The Company reviews long-lived assets for impairment annually or whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable based on undiscounted future operating cash flow analyses. If an impairment is determined to exist, any related impairment loss is calculated based on fair value. 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, 2016 and December 31, 2015.
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 with classifications adopted in the current period.
Research and Development Costs	Research and Development Costs Research and development costs are expensed as incurred.
Concentration of Credit Risks	Concentration of Credit Risks Financial instruments that potentially subject the Company to concentration of credit risks principally consist of cash accounts in financial institutions. Although the accounts exceed the federally insured deposit amount, management does not anticipate nonperformance by the financial institutions.
Fair Value of Financial Instruments	Fair Value of Financial Instruments The carrying amount of cash and cash equivalents, 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	Recent Accounting Pronouncements In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (ASU) No. 2016-09, “Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting,” which amends the current stock compensation guidance. The amendments simplify the accounting for the taxes related to stock based compensation, including adjustments to how excess tax benefits and a company’s payments for tax withholdings should be classified. The standard is effective for fiscal periods beginning after December 15, 2016, with early adoption permitted. The Company is evaluating the impact, if any, the adoption of this standard will have on the consolidated financial statements and related disclosures.

Business Description and Summ18

Business Description and Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
Schedule of property, plant and equipment estimated useful life	Buildings and improvements 5-40 years Machinery and equipment 5-20 years Tooling 3-5 years

Inventories (Table)

Inventories (Table)	9 Months Ended
	Sep. 30, 2016
Inventory Disclosure [Abstract]
Schedule of inventories	September 30, 2016 December 31, 2015 ($000’s omitted) Raw material and common parts, net of reserve $ 7,624 $ 6,627 Work-in-process, net of reserve 2,840 2,699 Finished goods, net of reserve 3,475 3,161 Total inventories $ 13,939 $ 12,487

Property, Plant and Equipment (

Property, Plant and Equipment (Tables)	9 Months Ended
	Sep. 30, 2016
Property, Plant and Equipment [Abstract]
Schedule of property, plant and equipment	September 30, 2016 December 31, 2015 ($000’s omitted) Land $ 21 $ 21 Buildings 10,414 10,343 Machinery, equipment and tooling 15,642 14,934 Construction in progress 64 57 26,141 25,355 Less accumulated depreciation and amortization (16,200 ) (15,600 ) Total property, plant and equipment $ 9,941 $ 9,755

Long-Term Debt (Tables)

Long-Term Debt (Tables)	9 Months Ended
	Sep. 30, 2016
Debt Disclosure [Abstract]
Schedule of long-term debt	September 30, December 31, 2016 2015 ($000’s omitted) Term loan payable to a financial institution; Interest rate option of bank prime or Libor plus 1.4% (1.92% as of September 30, 2016); monthly principal payments of $21,833 through 2021 with a balloon payment of $786,000 due December 1, 2021 $ 2,162 $ 2,358 Term loan payable to a financial institution; Interest rate option of bank prime or Libor plus 1.4% (1.92% as of September 30, 2016); monthly principal payments of $23,810 through 2021 1,500 1,714 3,662 4,072 Less current portion (548 ) (548 ) $ 3,114 $ 3,524

Shareholders' Equity (Tables)

Shareholders' Equity (Tables)	9 Months Ended
	Sep. 30, 2016
Equity [Abstract]
Schedule of stockholders equity	($000’s omitted except for share data) Common Stock Number of shares issued Amount Capital in excess of par value Retained earnings ESOT Treasury stock Accumulated other comprehensive loss Total shareholders’ equity Balance at December 31, 2015 2,614,506 $ 523 $ 14,092 $ 13,395 $ (863 ) $ (1,702 ) $ (3 ) $ 25,442 Net income - - - 1,628 - - - 1,628 Purchase of treasury shares - - - - - (197 ) - (197 ) Cash dividend - - - (380 ) - - - (380 ) Stock based compensation, net of tax benefit - - 54 - - 334 - 388 Balance at September 30, 2016 2,614,506 $ 523 $ 14,146 $ 14,643 $ (863 ) $ (1,565 ) $ (3 ) $ 26,881
Schedule of earnings per share	Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 ($000’s omitted except per share data) Net income $ 366 $ 744 $ 1,628 $ 4,136 Weighted average common shares outstanding (basic) 2,219 2,179 2,203 2,179 Incremental shares from assumed conversions of stock options - - - - Unvested restricted stock 92 82 92 82 Weighted average common Shares outstanding (diluted) 2,311 2,261 2,295 2,261 Basic Net income per share $ 0.17 $ 0.34 $ 0.74 $ 1.90 Diluted Net income per share $ 0.16 $ 0.33 $ 0.71 $ 1.83

Business Segments (Tables)

Business Segments (Tables)	9 Months Ended
	Sep. 30, 2016
Segment Reporting [Abstract]
Schedule of information regarding operations in business segment	ATG CPG Consolidated Nine Months September 30, Nine Months September 30, Nine Months September 30, 2016 2015 2016 2015 2016 2015 Revenues from unaffiliated customers $ 23,023 $ 21,067 $ 5,685 $ 6,055 $ 28,708 $ 27,122 Cost of goods sold, exclusive of depreciation and amortization (16,060 ) (14,917 ) (4,828 ) (5,378 ) (20,888 ) (20,295 ) Selling, general and administrative (3,477 ) (3,367 ) (1,338 ) (1,196 ) (4,815 ) (4,563 ) Depreciation and amortization (412 ) (364 ) (198 ) (161 ) (610 ) (525 ) Interest expense (32 ) (30 ) (22 ) (23 ) (54 ) (53 ) Arbitration award expense - (50 ) - - - (50 ) Insurance proceeds - arbitration - 4,500 - - - 4,500 Other income, net 19 130 - 1 19 131 Income (loss) before income tax provision (benefit) 3,061 6,969 (701 ) (702 ) 2,360 6,267 Income tax provision (benefit) 949 2,370 (217 ) (239 ) 732 2,131 Net income (loss) $ 2,112 $ 4,599 $ (484 ) $ (463 ) $ 1,628 $ 4,136 Capital expenditures $ 613 $ 782 $ 173 $ 603 $ 786 $ 1,385 ATG CPG Consolidated Three Months September 30, Three Months September 30, Three Months September 30, 2016 2015 2016 2015 2016 2015 Revenues from unaffiliated customers $ 7,658 $ 7,513 $ 1,807 $ 2,196 $ 9,465 $ 9,709 Cost of goods sold, exclusive of depreciation and amortization (5,418 ) (5,060 ) (1,625 ) (1,833 ) (7,043 ) (6,893 ) Selling, general and administrative (1,240 ) (1,050 ) (418 ) (436 ) (1,658 ) (1,486 ) Depreciation and amortization (137 ) (124 ) (61 ) (61 ) (198 ) (185 ) Interest expense (11 ) (10 ) (7 ) (8 ) (18 ) (18 ) Other income, net 9 1 - - 9 1 Income (loss) before income tax provision (benefit) 861 1,270 (304 ) (142 ) 557 1,128 Income tax provision (benefit) 289 432 (98 ) (48 ) 191 384 Net income (loss) $ 572 $ 838 $ (206 ) $ (94 ) $ 366 $ 744 Capital expenditures $ 70 $ 407 $ 15 $ 341 $ 85 $ 748

Business Description and Summ24

Business Description and Summary of Significant Accounting Policies - Estimated useful lives of depreciable properties (Details)	9 Months Ended
	Sep. 30, 2016
Buildings and improvements
Property, Plant and Equipment [Line Items]
Estimated useful lives of depreciable properties	5-40 years
Machinery and equipment
Property, Plant and Equipment [Line Items]
Estimated useful lives of depreciable properties	5-20 years
Tooling
Property, Plant and Equipment [Line Items]
Estimated useful lives of depreciable properties	3-5 years

Business Description and Summ25

Business Description and Summary of Significant Accounting Policies (Detail Textuals) - USD ($)	9 Months Ended		12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Accounting Policies [Abstract]
Allowance for doubtful accounts	$ 80,000		$ 88,000
Inventory reserve	1,443,000		1,429,000
Grant received from Company's CPG			$ 700,000
Income taxes paid	644,000	$ 136,000
Interest paid	$ 54,000	$ 60,000

Inventories - Summary of invent

Inventories - Summary of inventories (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Inventory Disclosure [Abstract]
Raw material and common parts, net of reserve	$ 7,624	$ 6,627
Work-in-process, net of reserve	2,840	2,699
Finished goods, net of reserve	3,475	3,161
Total inventories	$ 13,939	$ 12,487

Property, Plant and Equipment -

Property, Plant and Equipment - Summary of property, plant and equipment (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Property, Plant and Equipment [Line Items]
Property, plant and equipment, Gross	$ 26,141	$ 25,355
Less accumulated depreciation and amortization	(16,200)	(15,600)
Total property, plant and equipment	9,941	9,755
Land
Property, Plant and Equipment [Line Items]
Property, plant and equipment, Gross	21	21
Buildings
Property, Plant and Equipment [Line Items]
Property, plant and equipment, Gross	10,414	10,343
Machinery, equipment and tooling
Property, Plant and Equipment [Line Items]
Property, plant and equipment, Gross	15,642	14,934
Construction in progress
Property, Plant and Equipment [Line Items]
Property, plant and equipment, Gross	$ 64	$ 57

Property, Plant and Equipment28

Property, Plant and Equipment (Detail Textuals) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Property, Plant and Equipment [Line Items]
Accumulated depreciation	$ 16,200,000		$ 16,200,000		$ 15,600,000
Depreciation and amortization expense	198,000	$ 185,000	610,000	$ 525,000
ATG
Property, Plant and Equipment [Line Items]
Construction in progress	64,000		64,000		57,000
Facilities
Property, Plant and Equipment [Line Items]
Accumulated depreciation	$ 3,418,000		$ 3,418,000		$ 3,258,000

Long-Term Debt - Summary of lon

Long-Term Debt - Summary of long term debt (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
Long-term debt	$ 3,662	$ 4,072
Less current portion	(548)	(548)
Long-term debt, Noncurrent	3,114	3,524
Term loan payable to a financial institution; Interest rate option of bank prime or Libor plus 1.4% (1.92% as of September 30, 2016); monthly principal payments of $21,833 through 2021 with a balloon payment of $786,000 due December 1, 2021
Debt Instrument [Line Items]
Long-term debt	2,162	2,358
Term loan payable to a financial institution; Interest rate option of bank prime or Libor plus 1.4% (1.92% as of September 30, 2016); monthly principal payments of $23,810 through 2021
Debt Instrument [Line Items]
Long-term debt	$ 1,500	$ 1,714

Long-Term Debt - Summary of l30

Long-Term Debt - Summary of long term debt (Parentheticals) (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2016USD ($)
Term loan payable to a financial institution; Interest rate option of bank prime or Libor plus 1.4% (1.92% as of September 30, 2016); monthly principal payments of $21,833 through 2021 with a balloon payment of $786,000 due December 1, 2021
Debt Instrument [Line Items]
Description of rate basis	Libor
Percentage of floating interest rate payable	1.40%
Percentage of fixed interest rate payable	1.92%
Frequency of principal payments	Monthly
Monthly principal payments	$ 21,833
Balloon payment due December 1, 2021	$ 786,000
Term loan payable to a financial institution; Interest rate option of bank prime or Libor plus 1.4% (1.92% as of September 30, 2016); monthly principal payments of $23,810 through 2021
Debt Instrument [Line Items]
Description of rate basis	Libor
Percentage of floating interest rate payable	1.40%
Percentage of fixed interest rate payable	1.92%
Frequency of principal payments	Monthly
Monthly principal payments	$ 23,810

Long-Term Debt (Detail Textuals

Long-Term Debt (Detail Textuals) - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Debt Disclosure [Abstract]
Line of credit	$ 2,000,000	$ 2,000,000

Stockholders' Equity - Summary

Stockholders' Equity - Summary of common shareholders' equity (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance			$ 25,442
Balance (shares)			2,614,506
Net income	$ 366	$ 744	$ 1,628	$ 4,136
Purchase of treasury shares			(197)
Cash dividend			(380)
Stock based compensation, net of tax benefit			388
Balance	$ 26,881		$ 26,881
Balance (shares)	2,614,506		2,614,506
Common Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance			$ 523
Balance (shares)			2,614,506
Balance	$ 523		$ 523
Balance (shares)	2,614,506		2,614,506
Capital in excess of par value
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance			$ 14,092
Stock based compensation, net of tax benefit			54
Balance	$ 14,146		14,146
Retained earnings
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance			13,395
Net income			1,628
Cash dividend			(380)
Balance	14,643		14,643
ESOT
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance			(863)
Balance	(863)		(863)
Treasury stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance			(1,702)
Purchase of treasury shares			(197)
Stock based compensation, net of tax benefit			334
Balance	(1,565)		(1,565)
Accumulated other comprehensive loss
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance			(3)
Balance	$ (3)		$ (3)

Shareholders' Equity - Calculat

Shareholders' Equity - Calculation of earning per share (Details 1) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Equity [Abstract]
Net income	$ 366	$ 744	$ 1,628	$ 4,136
Weighted average common shares outstanding (basic) (in shares)	2,219	2,179	2,203	2,179
Incremental shares from assumed conversions of stock options (in shares)
Unvested restricted stock (in shares)	92	82	92	82
Weighted average common Shares outstanding (diluted) (in shares)	2,311	2,261	2,295	2,261
Basic
Net income per share (in dollars per share)	$ 0.17	$ 0.34	$ 0.74	$ 1.90
Diluted
Net income per share (in dollars per share)	$ 0.16	$ 0.33	$ 0.71	$ 1.83

Shareholders' Equity (Detail Te

Shareholders' Equity (Detail Textuals)	9 Months Ended
	Sep. 30, 2016shares
Equity, Class of Treasury Stock [Line Items]
Shares purchased during period	5,639
Share Repurchase Program
Equity, Class of Treasury Stock [Line Items]
Number of common shares authorized to be purchased	450,000
Shares purchased during period	337,609
Remaining number of shares authorized to be purchased	112,391

Shareholders' Equity (Detail 35

Shareholders' Equity (Detail Textuals 1) - USD ($) $ in Thousands	Apr. 11, 2016	Jan. 01, 2016	Apr. 18, 2013	Sep. 30, 2016	Sep. 30, 2015
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Number of restricted stock shares vested		41,250
Number of shares withheld and repurchased		17,335
Value of shares withheld and repurchased		$ 145,000
2012 Long-Term Incentive Plan | Restricted stock | Executive Officers
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Number of restricted stock issued	51,000		165,000
Number of shares authorized for issuance			300,000
Vesting period of restricted share awards			4 years
Compensation expense not yet recognized	$ 406,000		$ 1,336,500
Compensation expenses, recognition period			4 years
Expense recognized for issuance of restricted shares				$ 386,000	$ 271,000

Shareholders' Equity (Detail 36

Shareholders' Equity (Detail Textuals 2) $ / shares in Units, $ in Thousands	Mar. 14, 2016USD ($)$ / shares
Equity [Abstract]
Cash dividend declared, amount per share | $ / shares	$ 0.15
Dividends payable, declared date	Mar. 14, 2016
Dividends payable, date to be paid	May 16, 2016
Dividends payable, record date	Apr. 11, 2016
Dividend payable | $	$ 380,000

Commitments and Contingencies (

Commitments and Contingencies (Detail Textuals)	9 Months Ended	12 Months Ended
	Sep. 30, 2016USD ($)ft²	Dec. 31, 2015USD ($)
Loss Contingencies [Line Items]
Accrued arbitration award liability	$ 471,000	$ 471,000
Received claim for insurance damage		$ 4,500,000
Term of project	5 years
Area of additional construction facility for capital improvements | ft²	28,000
Cost of the project	$ 4,000,000
Completed cost of the project	3,432,000
CPG
Loss Contingencies [Line Items]
Amount of grant received from Cattaraugus County, New York	300,000
Amount of grant received from New York State Community Development Block	$ 416,000
Term of maintaining employment level	5 years
Aero, Inc.
Loss Contingencies [Line Items]
Amount of alleged damages	$ 3,000,000
Amount of counter claim	$ 3,191,000

Business Segments - Summary of

Business Segments - Summary of company's operations (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Segment Reporting Information [Line Items]
Revenues from unaffiliated customers	$ 9,465	$ 9,709	$ 28,708	$ 27,122
Cost of goods sold, exclusive of depreciation and amortization	(7,043)	(6,893)	(20,888)	(20,295)
Selling, general and administrative	(1,658)	(1,486)	(4,815)	(4,563)
Depreciation and amortization	(198)	(185)	(610)	(525)
Interest expense	(18)	(18)	(54)	(53)
Arbitration award expense				(50)
Insurance proceeds - arbitration				4,500
Other income, net	9	1	19	131
Income (loss) before income tax provision (benefit)	557	1,128	2,360	6,267
Income tax provision (benefit)	191	384	732	2,131
Net income (loss)	366	744	1,628	4,136
Capital expenditures			786	1,385
Operating Segments
Segment Reporting Information [Line Items]
Revenues from unaffiliated customers	9,465	9,709	28,708	27,122
Cost of goods sold, exclusive of depreciation and amortization	(7,043)	(6,893)	(20,888)	(20,295)
Selling, general and administrative	(1,658)	(1,486)	(4,815)	(4,563)
Depreciation and amortization	(198)	(185)	(610)	(525)
Interest expense	(18)	(18)	(54)	(53)
Arbitration award expense				(50)
Insurance proceeds - arbitration				4,500
Other income, net	9	1	19	131
Income (loss) before income tax provision (benefit)	557	1,128	2,360	6,267
Income tax provision (benefit)	191	384	732	2,131
Net income (loss)	366	744	1,628	4,136
Capital expenditures	85	748	786	1,385
Operating Segments | ATG
Segment Reporting Information [Line Items]
Revenues from unaffiliated customers	7,658	7,513	23,023	21,067
Cost of goods sold, exclusive of depreciation and amortization	(5,418)	(5,060)	(16,060)	(14,917)
Selling, general and administrative	(1,240)	(1,050)	(3,477)	(3,367)
Depreciation and amortization	(137)	(124)	(412)	(364)
Interest expense	(11)	(10)	(32)	(30)
Arbitration award expense				(50)
Insurance proceeds - arbitration				4,500
Other income, net	9	1	19	130
Income (loss) before income tax provision (benefit)	861	1,270	3,061	6,969
Income tax provision (benefit)	289	432	949	2,370
Net income (loss)	572	838	2,112	4,599
Capital expenditures	70	407	613	782
Operating Segments | CPG
Segment Reporting Information [Line Items]
Revenues from unaffiliated customers	1,807	2,196	5,685	6,055
Cost of goods sold, exclusive of depreciation and amortization	(1,625)	(1,833)	(4,828)	(5,378)
Selling, general and administrative	(418)	(436)	(1,338)	(1,196)
Depreciation and amortization	(61)	(61)	(198)	(161)
Interest expense	(7)	(8)	(22)	(23)
Arbitration award expense
Insurance proceeds - arbitration
Other income, net				1
Income (loss) before income tax provision (benefit)	(304)	(142)	(701)	(702)
Income tax provision (benefit)	(98)	(48)	(217)	(239)
Net income (loss)	(206)	(94)	(484)	(463)
Capital expenditures	$ 15	$ 341	$ 173	$ 603

Business Segments (Detail Textu

Business Segments (Detail Textuals)	9 Months Ended
	Sep. 30, 2016USD ($)Segment	Dec. 31, 2015USD ($)
Segment Reporting Information [Line Items]
Total identifiable assets	$ 36,130,000	$ 34,374,000
Number of operating segments | Segment	2
Operating Segments | ATG
Segment Reporting Information [Line Items]
Total identifiable assets	$ 24,211,000	22,789,000
Operating Segments | CPG
Segment Reporting Information [Line Items]
Total identifiable assets	$ 11,919,000	$ 11,585,000

Subsequent Events (Detail Textu

Subsequent Events (Detail Textuals)	Nov. 08, 2016USD ($)
Subsequent event
Subsequent Event [Line Items]
Sell unused commercial real property	$ 180,000