Arotech (ARTX) 10-Q 7 Nov 19 2019 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Sep. 30, 2019	Nov. 05, 2019
Document And Entity Information [Abstract]
Entity Registrant Name	AROTECH CORP
Document Type	10-Q
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		26,665,240
Amendment Flag	false
Entity Central Index Key	0000916529
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Shell Company	false
Entity Emerging Growth Company	false
Document Period End Date	Sep. 30, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Sep. 30, 2019	Dec. 31, 2018
CURRENT ASSETS:
Cash and cash equivalents	$ 5,196,806	$ 4,222,246
Restricted collateral deposits	157,775	222,712
Trade receivables, net	17,163,788	16,259,809
Contract assets	24,970,939	17,867,896
Other accounts receivable and prepaid expenses	3,628,600	5,989,263
Inventories, net	8,905,529	9,912,748
Total current assets	60,023,437	54,474,674
LONG TERM ASSETS:
Contractual and Israeli statutory severance pay fund	3,883,947	3,427,705
Other long term receivables	537,007	543,205
Property and equipment, net	9,504,583	8,914,247
Right of use asset	5,887,243
Other intangible assets, net	4,919,657	4,465,778
Goodwill	46,138,036	46,138,036
Total long term assets	70,870,473	63,488,971
Total assets	130,893,910	117,963,645
CURRENT LIABILITIES:
Trade payables	7,882,797	6,442,919
Other accounts payable and accrued expenses	6,245,907	6,498,045
Current portion of lease obligations	628,294
Current portion of long term debt	2,983,905	2,204,653
Short term bank credit	10,334,840	5,500,416
Contract liabilities	7,504,965	7,054,779
Total current liabilities	35,580,708	27,700,812
LONG TERM LIABILITIES:
Contractual and accrued Israeli statutory severance pay	4,682,611	4,125,675
Long term portion of lease obligations	5,569,696
Long term portion of debt	5,856,494	6,360,569
Deferred income tax liability	3,219,008	2,863,098
Other long term liabilities	42,364	137,774
Total long-term liabilities	19,370,173	13,487,116
Total liabilities	54,950,881	41,187,928
STOCKHOLDERS’ EQUITY:
Common stock – $0.01 par value each; Authorized: 50,000,000 shares as of September 30, 2019 and December 31, 2018; Issued and outstanding: 26,665,240 shares and 26,486,152 shares as of September 30, 2019 and December 31, 2018, respectively	266,653	264,862
Preferred shares – $0.01 par value each; Authorized: 1,000,000 shares as of September 30, 2019 and December 31, 2018; No shares issued or outstanding as of September 30, 2019 and December 31, 2018	0	0
Additional paid-in capital	251,727,312	251,551,001
Accumulated deficit	(177,576,117)	(176,498,057)
Notes receivable from stockholders	(908,054)	(908,054)
Accumulated other comprehensive income	2,433,235	2,365,965
Total stockholders’ equity	75,943,029	76,775,717
Total liabilities and stockholders’ equity	$ 130,893,910	$ 117,963,645

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares	Sep. 30, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Common stock - par value (in dollars per share)	$ 0.01	$ 0.01
Common stock - authorized (in shares)	50,000,000	50,000,000
Common stock - shares issued (in shares)	26,665,240	26,486,152
Common stock - shares outstanding (in shares)	26,665,240	26,486,152
Preferred shares - par value (in dollars per share)	$ 0.01	$ 0.01
Preferred shares - shares authorized (in shares)	1,000,000	1,000,000
Preferred shares - shares issued (in shares)	0	0
Preferred shares - shares outstanding (in shares)	0	0

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (UNAUDITED) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Income Statement [Abstract]
Revenues	$ 23,573,731	$ 23,844,477	$ 67,618,934	$ 72,967,596
Cost of revenues	15,597,611	16,516,663	46,185,133	51,328,827
Research and development expenses	1,110,285	753,792	3,206,207	2,518,787
Selling and marketing expenses	1,870,739	1,837,823	6,214,200	5,647,284
General and administrative expenses	4,193,949	3,201,566	10,579,909	9,413,379
Amortization of intangible assets	280,662	391,831	931,527	1,298,573
Total operating costs and expenses	23,053,246	22,701,675	67,116,976	70,206,850
Operating income	520,485	1,142,802	501,958	2,760,746
Other income (expense), net	(853)	(1,521)	(9,944)	5,878
Financial expense, net	(396,170)	(173,345)	(1,066,027)	(696,232)
Total other expense	(397,023)	(174,866)	(1,075,971)	(690,354)
Income (loss) before income tax expense	123,462	967,936	(574,013)	2,070,392
Income tax expense	186,785	227,380	504,047	650,765
Net income (loss)	(63,323)	740,556	(1,078,060)	1,419,627
Other comprehensive income (loss), net of income tax:
Foreign currency translation adjustment	0	13,100	67,270	(66,162)
Comprehensive income (loss)	$ (63,323)	$ 753,656	$ (1,010,790)	$ 1,353,465
Income (loss) per share of common stock:
Basic net income (loss) per share (in dollars per shares)	$ 0	$ 0.03	$ (0.04)	$ 0.05
Diluted net income (loss) per share (in dollars per shares)	$ 0	$ 0.03	$ (0.04)	$ 0.05
Weighted average number of shares used in computing basic net income (loss) per share (in shares)	26,547,045	26,486,152	26,547,045	26,466,948
Weighted average number of shares used in computing diluted net income (loss) per share (in shares)	26,547,045	26,486,152	26,547,045	26,466,948

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED) - USD ($)	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$ (1,078,060)	$ 1,419,627
Adjustments required to reconcile net income (loss) to net cash (used in) provided by operating activities:
Depreciation	1,534,133	1,465,716
Amortization of intangible assets	931,527	1,298,573
Stock based compensation	291,023	491,654
Deferred tax provision	355,910	506,544
Changes in operating assets and liabilities:
Trade receivables	(903,979)	4,992,521
Contract assets	(7,103,043)	(3,454,977)
Other accounts receivable and prepaid expenses	2,677,608	(1,195,029)
Inventories	1,008,749	(1,116,401)
Severance pay, net	136,914	(12,886)
Trade payables	1,439,873	319,488
Other accounts payable and accrued expenses	(335,589)	(1,068,136)
Contract liabilities	450,186	(264,212)
Net cash (used in) provided by operating activities	(594,748)	3,382,482
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment	(2,124,469)	(1,342,060)
Additions to capitalized software	(1,385,406)	(406,147)
Net cash used in investing activities	(3,509,875)	(1,748,207)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from long term debt	1,917,577	0
Repayment of long term debt	(1,642,400)	(1,689,895)
Other financing activities	(118,649)	(54,155)
Change in short term bank credit	4,834,424	(317,730)
Net cash provided by (used in) financing activities	4,990,952	(2,061,780)
INCREASE (DECREASE) IN CASH, RESTRICTED CASH, AND CASH EQUIVALENTS	886,329	(427,505)
CASH DIFFERENCES DUE TO EXCHANGE RATE DIFFERENCES	23,294	120,939
CASH, RESTRICTED CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD	4,444,958	5,488,754
CASH, RESTRICTED CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD	$ 5,354,581	$ 5,182,188

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED) - USD ($)	Total	Common stock	Additional paid-in capital	Accumulated deficit	Notes receivable from stockholders	Accumulated other comprehensive income
Beginning balance at Dec. 31, 2017	$ 74,293,963	$ 263,951	$ 250,826,873	$ (178,368,012)	$ (908,054)	$ 2,479,205
Beginning balance (in shares) at Dec. 31, 2017		26,395,048
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock based compensation	491,654		491,654
Restricted stock issued	0	$ 869	(869)
Restricted stock issued (in shares)		86,900
Restricted stock units vested, net of taxes	(54,155)	$ 502	(54,657)
Restricted stock units vested, net of taxes (in shares)		50,247
Restricted stock forfeitures	0	$ (460)	460
Restricted stock forfeitures (in shares)		(46,043)
Foreign currency translation adjustment	(66,162)					(66,162)
Net income (loss)	1,419,627			1,419,627
Ending balance at Sep. 30, 2018	76,084,927	$ 264,862	251,263,461	(176,948,385)	(908,054)	2,413,043
Ending balance (in shares) at Sep. 30, 2018		26,486,152
Beginning balance at Jun. 30, 2018	75,029,886	$ 264,862	250,962,076	(177,688,941)	(908,054)	2,399,943
Beginning balance (in shares) at Jun. 30, 2018		26,486,152
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock based compensation	301,385		301,385
Foreign currency translation adjustment	13,100					13,100
Net income (loss)	740,556			740,556
Ending balance at Sep. 30, 2018	76,084,927	$ 264,862	251,263,461	(176,948,385)	(908,054)	2,413,043
Ending balance (in shares) at Sep. 30, 2018		26,486,152
Beginning balance at Dec. 31, 2018	$ 76,775,717	$ 264,862	251,551,001	(176,498,057)	(908,054)	2,365,965
Beginning balance (in shares) at Dec. 31, 2018	26,486,152	26,486,152
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock based compensation	$ 291,023		291,023
Restricted stock issued	0	$ 718	(718)
Restricted stock issued (in shares)		71,780
Restricted stock units vested, net of taxes	(112,921)	$ 1,128	(114,049)
Restricted stock units vested, net of taxes (in shares)		112,775
Restricted stock forfeitures	0	$ (55)	55
Restricted stock forfeitures (in shares)		(5,467)
Foreign currency translation adjustment	67,270					67,270
Net income (loss)	(1,078,060)			(1,078,060)
Ending balance at Sep. 30, 2019	$ 75,943,029	$ 266,653	251,727,312	(177,576,117)	(908,054)	2,433,235
Ending balance (in shares) at Sep. 30, 2019	26,665,240	26,665,240
Beginning balance at Jun. 30, 2019	$ 75,917,458	$ 266,653	251,638,418	(177,512,794)	(908,054)	2,433,235
Beginning balance (in shares) at Jun. 30, 2019		26,665,240
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock based compensation	88,894		88,894
Foreign currency translation adjustment	0
Net income (loss)	(63,323)			(63,323)
Ending balance at Sep. 30, 2019	$ 75,943,029	$ 266,653	$ 251,727,312	$ (177,576,117)	$ (908,054)	$ 2,433,235
Ending balance (in shares) at Sep. 30, 2019	26,665,240	26,665,240

BASIS OF PRESENTATION

BASIS OF PRESENTATION	9 Months Ended
	Sep. 30, 2019
Accounting Policies [Abstract]
BASIS OF PRESENTATION	BASIS OF PRESENTATION a. Company: Arotech Corporation (“Arotech”) and its wholly-owned subsidiaries (the “Company”) provide defense and security products for the military, law enforcement, emergency services and homeland security markets, including multimedia interactive simulators/trainers, and lithium batteries and chargers. Arotech operates primarily through its wholly-owned subsidiaries FAAC Incorporated, a Michigan corporation located in Ann Arbor, Michigan (Training and Simulation Division) with a location in Orlando, Florida; Epsilor-Electric Fuel Ltd. (“Epsilor-EFL”), an Israeli corporation located in Beit Shemesh, Israel (between Jerusalem and Tel-Aviv) and in Dimona, Israel (in Israel’s Negev desert area) (Power Systems Division); UEC Electronics, LLC (“UEC”), a South Carolina limited liability company located in Hanahan, South Carolina (Power Systems Division). b. Basis of Presentation: The Company prepared the accompanying unaudited condensed consolidated financial statements of Arotech Corporation and all wholly-owned, majority owned or otherwise controlled subsidiaries on the same basis as its annual audited financial statements. The Company condensed or omitted certain information and footnote disclosures normally included in its annual audited financial statements, which it prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP), with the instructions to Form 10-Q and with Article 10 of Regulation S-X, and include the accounts of Arotech Corporation and its subsidiaries. The Company’s quarterly financial statements should be read in conjunction with its Annual Report on Form 10-K for the year ended December 31, 2018 . In the opinion of the Company, the unaudited financial statements reflect all adjustments (consisting only of normal recurring adjustments) necessary for a fair presentation of its financial position at September 30, 2019 , its operating results for the three and nine months ended September 30, 2019 and 2018 , its cash flows for the nine months ended September 30, 2019 and 2018 , and its statement of stockholders’ equity for the three and nine months ended September 30, 2019 and 2018 . The results of operations for the three and nine months ended September 30, 2019 are not necessarily indicative of results that may be expected for any other interim period or for the full fiscal year ending December 31, 2019 . The condensed consolidated balance sheet at December 31, 2018 has been derived from the audited financial statements at that date but does not include all the information and footnotes required by generally accepted accounting principles for complete financial statements. These condensed consolidated financial statements should be read in conjunction with the audited financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 . c. Reclassification: From time to time the Company may reclassify amounts from prior periods to conform to the current year’s presentation. d. Commitments and contingencies: The Company is involved in litigation from time to time in the regular course of its business. There are no material legal proceedings pending or known by the Company to be contemplated to which the Company is a party or to which any of its property is subject. In addition, the Company believes that adequate provisions for resolution of all contingencies have been made for probable losses that are reasonably estimable. These contingencies are subject to uncertainties, and, as a result, the Company is unable to estimate the amount or range of loss, if any, in excess of amounts accrued. The Company does not believe that these contingencies will have a material adverse effect on the Company’s balance sheets, statements of operations and comprehensive income or statements of cash flows for the three and nine months ended September 30, 2019 . e. Goodwill and other long-lived assets: Goodwill and indefinite-lived intangible assets are tested for impairment at least annually and between annual tests in certain circumstances, and written down when impaired. Goodwill is tested for impairment by comparing the fair value of the Company’s reporting units with the carrying value. The Training and Simulation and the Power Systems reporting units have goodwill. As of its last annual impairment test at October 1, 2018, the Company determined that the goodwill for both reporting units was not impaired. Consistent with previous interim reporting periods, the Company monitors qualitative and quantitative factors, including internal projections, periodic forecasts, and actual results of the reporting unit. Based upon this interim review, the Company does not believe that goodwill or its indefinite-lived intangible assets related to either reporting unit is impaired. f. Government Termination for Convenience: On October 3, 2018, the Company’s U.S. Power Systems Division subsidiary was informed by its customer, SAIC, that the United States Marine Corps (“USMC”) had discontinued its efforts to upgrade the Assault Amphibious Vehicle (“AAV”) fleet that was undergoing survivability and electrical upgrades under a prime contract with Science Applications International Corporation (“SAIC”). As a result of this termination for the USMC’s convenience, the Company presented its costs related to this program for reimbursement by SAIC and the USMC in December 2018. The amounts of and time frame for resolution have not yet been determined. In July 2019, we received a $2.0 million partial payment towards the AAV program costs. g. New accounting pronouncements: In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) . The new standard, effective January 1, 2019, requires virtually all leases to be recognized on the Consolidated Balance Sheets. Effective January 1, 2019, the Company adopted the standard using the modified retrospective method, under which it elected the package of practical expedients and transition provisions allowing it to bring its existing operating leases onto the Condensed Consolidated Balance Sheet without adjusting comparative periods. The Company has operating leases for facilities and equipment, which are recorded as assets and liabilities for those leases with terms greater than 12 months. Lease-related assets, or right-of-use assets (“ROU”), are recognized at the lease commencement date at amounts equal to the respective lease liabilities, adjusted for prepaid lease payments, initial direct costs, and lease incentives received. Lease-related liabilities are recognized at the present value of the remaining contractual fixed lease payments, discounted using our incremental borrowing rate. Operating lease expense is recognized on a straight-line basis over the lease term, while variable lease payments are expensed as incurred. Upon adoption of the standard, the Company recorded approximately $6.3 million of ROU assets and $6.5 million of current and long term lease obligations in its Condensed Consolidated Balance Sheet. Refer to Note 2 “Significant Accounting Policy Update” for additional information. In January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment . The new standard simplifies the subsequent measurement of goodwill and eliminates Step 2 from the goodwill impairment test and requires businesses to perform its annual goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and recognizing an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. The amendments are effective for annual periods beginning after December 15, 2019 with early adoption permitted for goodwill impairment tests performed on testing dates after January 1, 2017. The Company early adopted this standard and it did not have an impact on its consolidated financial statements. In February 2018, the FASB issued ASU No. 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220), Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (“AOCI”) . The accounting standard allows for the optional reclassification of stranded tax effects within accumulated other comprehensive income to retained earnings that arise due to the enactment of the Tax Cuts and Jobs Act of 2017 (the “Tax Act”). The amount of the reclassification would reflect the effect of the change in the U.S. federal corporate income tax rate on the gross deferred tax amounts and related valuation allowances, if any, at the date of enactment of the Tax Act and other income tax effects of the Tax Act on items remaining in accumulated other comprehensive income. The Company adopted the requirements of the new standard in the first quarter of 2019, as required by the new standard. The adoption of this ASU did not have a material impact on the consolidated financial statements. In August 2018, the SEC issued Release No. 33-10532 that amends and clarifies certain financial reporting requirements. The principal change to the Company’s financial reporting is the inclusion of the annual disclosure requirement of changes in stockholders’ equity in Rule 3-04 of Regulation S-X to interim periods.

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES UPDATE	9 Months Ended
	Sep. 30, 2019
Accounting Policies [Abstract]
SIGNIFICANT ACCOUNTING POLICIES UPDATE	SIGNIFICANT ACCOUNTING POLICIES UPDATE The Company’s significant accounting policies are detailed in “Note 2: Significant Accounting Policies” of its Form 10-K for the year ended December 31, 2018. Significant changes to the Company’s accounting policies as a result of adopting Accounting Standards Codification (“ASC”) 842 are discussed below: Leases: The Company determines if an arrangement is a lease at inception. Leases with an initial term of 12 months or less are not recorded in the Condensed Consolidated Balance Sheets and the Company recognizes lease expense for these leases on a straight line basis over the lease term. Operating leases are included in operating lease ROU asset, current portion of lease obligations and long term portion of lease obligations on its Condensed Consolidated Balance Sheet. Finance leases are included in property and equipment, other current liabilities, and other long-term liabilities on its Condensed Consolidated Balance Sheet. As of September 30, 2019 , the Company does not have any non-cancelable operating lease commitments that have not yet commenced. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. If a lease does not implicitly state a rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. The operating lease ROU asset also includes any lease payments made in advance, any initial direct costs incurred and excludes any lease incentives. The lease terms may include options to extend or terminate the lease when it is reasonably assured that the Company will exercise that option. Lease expense for minimum lease payments are recognized on a straight-line basis over the lease term. The Company has lease agreements with lease and non-lease components, which are generally accounted for separately. The Company has operating leases for its production and office facilities and certain office equipment. These leases have remaining lease terms of 2 years to 15 years , some of which include options to extend for up to 5 years . These options have been included in the Company’s calculation of the ROU asset and lease liability based upon the Company’s assessment of whether the option will be exercised. The Company’s lease agreements do not contain any residual value guarantees or material restrictive covenants. The Company rents or subleases certain real estate to third parties. The Company’s sublease portfolio consists of an operating lease within one of its facilities, resulting in approximately $26,000 and $78,000 of sublease income for the three and nine months ended September 30, 2019 . The components of lease expense were as follows: Nine months ended September 30, Three months ended September 30, 2019 2019 Operating lease cost $ 840,672 $ 280,180 Finance lease cost: Amortization of right-of-use assets $ 9,498 $ 3,166 Interest on lease liabilities 2,432 828 Total finance lease costs $ 11,930 $ 3,994 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 2,951,253 $ 165,809 Finance leases 31,386 — Supplemental balance sheet information related to leases was as follows: September 30, 2019 Operating Leases: Right of use asset $ 5,887,243 Current portion of lease obligations 628,294 Long term portion of lease obligations 5,569,696 Total operating lease obligations 6,197,990 Financing Leases: Property and Equipment, at cost 56,933 Accumulated depreciation (11,627 ) Property and Equipment, net 45,306 Other accounts payable and accrued expenses 11,834 Other long term liabilities 34,513 Total financing lease liabilities $ 46,347 Weighted Average Remaining Lease Term Operating leases 10 years Finance leases 4 years Weighted Average Discount Rate Operating leases 7.47 % Finance leases 6.86 % Supplemental Cash Flows information related to leases was as follows: Nine months ended September 30, 2019 Supplemental Cash Flows Information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 653,181 Operating cash flows from finance leases 2,432 Financing cash flows from finance leases 8,565 The undiscounted annual future minimum lease payments are summarized by year in the table below: Year Ending December 31, Operating Leases Finance Leases 2019 (excluding the nine months ended September 30, 2019) $ 270,232 $ 3,666 2020 1,106,585 14,664 2021 901,267 14,664 2022 875,177 12,276 2023 769,041 7,500 Thereafter 5,622,703 — Total future minimum lease payments 9,545,005 52,770 Less imputed interest (3,347,015 ) (6,423 ) Total: $ 6,197,990 $ 46,347

REVENUES

REVENUES	9 Months Ended
	Sep. 30, 2019
Revenue from Contract with Customer [Abstract]
REVENUES	REVENUES Revenue recognition: The Company recognized revenues from (i) the sale and customization of interactive training systems (Training and Simulation Division); (ii) maintenance services in connection with such systems (Training and Simulation Division); (iii) the sale of batteries, chargers and adapters, and custom power solutions (Power Systems Division); and (iv) the sale of lifejacket lights (Power Systems Division). The Company determines its revenue recognition through the following steps: • Identification of the contract, or contracts, with a customer • Identification of the performance obligations within the contract • Determination of the transaction price • Allocation of the transaction price to the performance obligations within the contract • Recognition of revenue when, or as the performance obligation has been satisfied Performance Obligations. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer, and is the unit of account in Accounting Standards Codification (“ASC”) Topic 606. A contracts transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. In assessing the recognition of revenue, the Company evaluates whether two or more contracts should be combined and accounted for as one contract and if the combined or single contract should be accounted for as multiple performance obligations which could change the amount of revenue and profit (loss) recorded in a period. The majority of the Company’s contracts with customers are accounted for as one performance obligation, as the majority of tasks and services is part of a single project or capability. As these contracts are typically a customized customer-specific solution, the Company uses the expected cost plus margin approach to estimate the standalone selling price of each performance obligation. For contracts with multiple performance obligations, the Company allocates the contracts transaction price to each performance obligation using its best estimate of the standalone selling price of each distinct good or service in the contract. The Company also offers maintenance and support agreements (“warranties”) for many of its products. The specific terms and conditions of those warranties vary depending upon the product sold and country in which the product was sold. The warranty revenue is recognized on a straight-line basis over the term of the maintenance and support services. The standalone selling price is determined based on the price charged when sold separately or upon renewal. The Company’s performance obligations are satisfied over time as work progresses or at a point in time. Revenue from products and services transferred to customers over time accounted for 91% and 92% of its revenue for the nine months ended September 30, 2019 and 2018, respectively. Revenue from products and services transferred to customers over time accounted for 91% and 92% of its revenue for the three months ended September 30, 2019 and 2018, respectively. Substantially all of the Company’s revenue in the Training and Simulation Division and the U.S. Power Systems Division is recognized over time. Typically, revenue is recognized over time using an input measure ( e.g. , costs incurred to date relative to total estimated costs at completion) to measure progress. Contract costs include labor, material, and overhead. As of September 30, 2019 , the Company had $67.6 million of expected future revenue relating to performance obligations that are currently under contract, which it also refers to as total backlog. The Company expects to recognize approximately 39.6% of its backlog as revenue in 2019, and the remaining 60.4% thereafter. Contract Estimates. Accounting for long-term contracts and programs involves the use of various techniques to estimate total contract revenue and costs. For long-term contracts, the Company estimates the profit on a contract as the difference between the total estimated revenue and expected costs to complete a contract and recognizes that profit over the life of the contract. Contract estimates are based on various assumptions to project the outcome of future events that can exceed a year. These assumptions include labor productivity and availability; the complexity of the work to be performed; the cost and availability of materials; the performance of subcontractors; and the availability and timing of funding from the customer. As a significant change in one or more of these estimates could affect the profitability of its contracts, the Company reviews and updates its contract-related estimates quarterly. The Company recognizes adjustments in estimated profit on contracts under the cumulative catch-up method. Under this method, the impact of the adjustment on profit recorded to date is recognized in the period the adjustment is identified. Revenue and profit in future periods of contract performance is recognized using the adjusted estimate. If at any time the estimate of contract profitability indicates an anticipated loss on the contract, the Company recognizes the total loss in the quarter in which it is identified. The aggregate impact of adjustments in contract estimates to net income (loss) is presented below: Nine months ended September 30, 2019 2018 Training and Simulation Division Power Systems Division Training and Simulation Division Power Systems Division Net income (loss) $ 974,067 $ 723,271 $ 449,580 $ 77,403 Three months ended September 30, 2019 2018 Training and Simulation Division Power Systems Division Training and Simulation Division Power Systems Division Net income (loss) $ 283,691 $ 489,321 $ (139,016 ) $ 320,269 Revenue by Category. As of September 30, 2019 and 2018 the Company’s portfolio of products and services consisted of 490 and 525 active contracts, respectively. Revenue by major product line was as follows: Nine months ended September 30, Three months ended September 30, 2019 2018 2019 2018 Product Revenue Air Warfare Simulation $ 10,528,294 $ 13,324,429 $ 3,421,823 $ 3,667,058 Vehicle Simulation 21,770,017 17,040,554 6,922,146 6,040,922 Use-of-Force 8,776,417 10,677,612 3,379,033 4,132,059 Service Revenue Warranty 3,177,873 2,533,558 1,170,809 825,863 Total Training and Simulation Division $ 44,252,601 $ 43,576,153 $ 14,893,811 $ 14,665,902 Contract Manufacturing $ 11,026,100 $ 10,130,597 $ 4,181,902 $ 3,100,586 Power Distribution and Generation 691,063 5,695,039 360,278 1,413,117 Batteries 6,677,842 9,767,890 2,144,104 3,118,375 Engineering Services and Other 4,971,328 3,797,917 1,993,636 1,546,497 Total Power Division $ 23,366,333 $ 29,391,443 $ 8,679,920 $ 9,178,575 The table below details the percentage of total recognized revenue by type of arrangement for the nine and three months ended September 30, 2019 and 2018: Nine months ended September 30, Three months ended September 30, Type of Revenue 2019 2018 2019 2018 Sale of products 92.3 % 95.0 % 92.3 % 94.5 % Maintenance and support agreements 4.7 % 3.5 % 5.0 % 3.5 % Long term research and development contracts 3.0 % 1.5 % 2.7 % 2.0 % Total 100 % 100 % 100 % 100 % Revenue by contract type was as follows: Training and Simulation Division Power Systems Division Nine months ended September 30, 2019 Fixed Price $ 35,442,918 $ 22,346,111 Cost Reimbursement (Cost Plus) 4,773,406 478,957 Time and Materials 4,036,277 541,265 Total $ 44,252,601 $ 23,366,333 Nine months ended September 30, 2018 Fixed Price $ 35,975,495 $ 26,807,005 Cost Reimbursement (Cost Plus) 4,120,987 1,822,659 Time and Materials 3,479,671 761,779 Total $ 43,576,153 $ 29,391,443 Three months ended September 30, 2019 Fixed Price $ 11,888,617 $ 8,455,355 Cost Reimbursement (Cost Plus) 1,996,293 45,376 Time and Materials 1,008,901 179,189 Total $ 14,893,811 $ 8,679,920 Three months ended September 30, 2018 Fixed Price $ 11,948,500 $ 8,372,521 Cost Reimbursement (Cost Plus) 1,511,711 567,767 Time and Materials 1,205,691 238,287 Total $ 14,665,902 $ 9,178,575 Each of these contract types presents advantages and disadvantages. Typically, the Company assumes more risk with fixed-price contracts. However, these types of contracts offer additional profits when the Company completes the work for less than originally estimated. Cost-reimbursement contracts generally subject the Company to lower risk. Accordingly, the associated base fees are usually lower than fees earned on fixed-price contracts. Under time and materials contracts, the Company’s profit may fluctuate if actual labor-hour costs vary significantly from the negotiated rates. Revenue by customer was as follows: Training and Simulation Division Power Systems Division Nine months ended September 30, 2019 U.S. Government Department of Defense (DoD) $ 13,364,239 $ 818,070 Non-DoD 10,146,377 — Foreign Military Sales (FMS) 2,531,338 — Total U.S. Government $ 26,041,954 $ 818,070 U.S. Commercial $ 15,574,732 $ 11,443,706 Non-U.S. Government 613,356 728,931 Non-U.S. Commercial 2,022,559 10,375,626 Total Revenue $ 44,252,601 $ 23,366,333 Nine months ended September 30, 2018 U.S. Government Department of Defense (DoD) $ 12,399,861 $ 2,115,108 Non-DoD 7,655,130 — Foreign Military Sales (FMS) 2,055,333 — Total U.S. Government 22,110,324 2,115,108 U.S. Commercial $ 16,546,210 $ 16,159,067 Non-U.S. Government 1,786,538 2,003,417 Non-U.S. Commercial 3,133,081 9,113,851 Total Revenue $ 43,576,153 $ 29,391,443 Three months ended September 30, 2019 U.S. Government Department of Defense (DoD) $ 3,749,868 $ 338,076 Non-DoD 3,758,068 — Foreign Military Sales (FMS) 950,843 — Total U.S. Government $ 8,458,779 $ 338,076 U.S. Commercial $ 5,565,858 $ 4,461,350 Non-U.S. Government 145,368 270,957 Non-U.S. Commercial 723,806 3,609,537 Total Revenue $ 14,893,811 $ 8,679,920 Three months ended September 30, 2018 U.S. Government Department of Defense (DoD) $ 4,753,006 $ 772,751 Non-DoD 3,272,251 — Foreign Military Sales (FMS) 341,933 — Total U.S. Government $ 8,367,190 $ 772,751 U.S. Commercial $ 4,744,148 $ 4,669,493 Non-U.S. Government 394,091 180,253 Non-U.S. Commercial 1,160,473 3,556,078 Total Revenue $ 14,665,902 $ 9,178,575 Contract Balances. The timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled receivables (contract assets), and customer advances and deposits (contract liabilities) on the Consolidated Balance Sheet. The majority of the Company’s contract amounts is billed as work progresses in accordance with agreed-upon contractual terms, either at periodic intervals ( e.g. , biweekly or monthly) or upon achievement of contractual milestones. Billing sometimes occurs subsequent to revenue recognition, resulting in contract assets. However, the Company sometimes receives advances or deposits from its customers, particularly on its international contracts, before revenue is recognized, resulting in contract liabilities. These contract liabilities also include deferred warranty revenues from our Training and Simulation Division. These assets and liabilities are reported on the Consolidated Balance Sheet on a contract-by-contract basis at the end of each reporting period. September 30, 2019 December 31, 2018 Training and Simulation Division Power Systems Division Total Training and Simulation Division Power Systems Division Total Contract Assets - Current $ 16,259,646 $ 8,711,293 $ 24,970,939 $ 10,358,679 $ 7,509,217 $ 17,867,896 Contract Liabilities - Current (7,222,968 ) (281,997 ) (7,504,965 ) (6,697,522 ) (357,257 ) (7,054,779 ) Net Contract Assets and Liabilities: $ 9,036,678 $ 8,429,296 $ 17,465,974 $ 3,661,157 $ 7,151,960 $ 10,813,117 The $6.7 million increase in the Company’s net contract assets (liabilities) from December 31, 2018 to September 30, 2019 was due to the timing of milestone payments on certain U.S. Government and commercial contracts. During the nine months ended September 30, 2019 and 2018, the Company recognized $5.1 million and $5.2 million , respectively, in revenue related to the Company’s contract liabilities. The Company did not record any provisions for impairment of its contract assets during the nine months ended September 30, 2019 and 2018. Trade Receivables Trade receivables include amounts billed and currently due from customers. The amounts are recorded at net estimated realizable value. The value of the Company’s trade receivables when appropriate includes an allowance for estimated uncollectible amounts. The Company calculates an allowance based on its history of write-offs, the assessment of customer creditworthiness, and the age of the outstanding receivables. As of September 30, 2019 and December 31, 2018 , the Company’s trade receivables recorded in the consolidated balance sheets were $17.2 million and $16.3 million , respectively. The Company had an immaterial provision for doubtful accounts at September 30, 2019 and December 31, 2018 . The Company believes its exposure to concentrations of credit risk is limited due to the nature of its operations, where a significant number of its contracts are typically a customized customer specific solution.

INVENTORIES

INVENTORIES	9 Months Ended
	Sep. 30, 2019
Inventory Disclosure [Abstract]
INVENTORIES	INVENTORIES Inventories are stated at the lower of cost or net realizable value. The Company periodically evaluates the quantities on hand relative to current and historical selling prices and historical and projected sales volume and based on these evaluations, provisions are made in each period to write down inventory to its net realizable value. For the nine months ended September 30, 2019 and 2018 the Company wrote off approximately $104,246 and $558,000 , respectively, of obsolete inventory, which has been included in the cost of revenues. Inventories by component are as follows: September 30, 2019 December 31, 2018 Raw and packaging materials $ 7,496,211 $ 7,912,883 Work in progress 958,912 1,626,960 Finished products 450,406 372,905 Total: $ 8,905,529 $ 9,912,748

SEGMENT INFORMATION

SEGMENT INFORMATION	9 Months Ended
	Sep. 30, 2019
Segment Reporting [Abstract]
SEGMENT INFORMATION	SEGMENT INFORMATION The Company and its subsidiaries operate in two business segments. The two segments are also treated by the Company as reporting units for goodwill impairment evaluation purposes. The goodwill amounts associated with the Training and Simulation Division and the Power Systems Division were determined and valued when the specific businesses were purchased. The Company and its subsidiaries operate in two continuing business segments and follow the requirements of ASC 280-10. The Company’s reportable segments have been determined in accordance with the Company’s internal management structure, which is organized based on operating activities. The accounting policies of the reportable segments are the same as those used by the Company in the preparation of its annual financial statements. The Company evaluates performance based on two primary factors, one of which is the segment’s operating income and the other of which is the segment’s contribution to the Company’s future strategic growth. The following is information about reported segment revenues, income (losses) from operations, and total assets as of September 30, 2019 and 2018 : Training and Power Systems Corporate Total Nine months ended September 30, 2019 Revenues from outside customers $ 44,252,601 $ 23,366,333 $ — $ 67,618,934 Depreciation and amortization(1) (581,466 ) (1,884,194 ) — (2,465,660 ) Direct expenses(2) (35,677,099 ) (25,234,110 ) (3,740,107 ) (64,651,316 ) Segment operating income (loss) $ 7,994,036 $ (3,751,971 ) $ (3,740,107 ) $ 501,958 Total other expense (178,868 ) (207,986 ) (689,117 ) (1,075,971 ) Income tax expense (154,496 ) 11,359 (360,910 ) (504,047 ) Net income (loss) $ 7,660,672 $ (3,948,598 ) $ (4,790,134 ) $ (1,078,060 ) Segment assets(3)(4) $ 63,077,725 $ 63,687,157 $ 4,129,028 $ 130,893,910 Additions to long-lived assets $ 1,481,270 $ 1,645,850 $ 382,755 $ 3,509,875 Nine months ended September 30, 2018 Revenues from outside customers $ 43,576,153 $ 29,391,443 $ — $ 72,967,596 Depreciation and amortization(1) (605,195 ) (2,159,094 ) — (2,764,289 ) Direct expenses(2) (34,352,017 ) (30,103,527 ) (2,987,017 ) (67,442,561 ) Segment operating income (loss) $ 8,618,941 $ (2,871,178 ) $ (2,987,017 ) $ 2,760,746 Total other expense (178,011 ) 11,513 (523,856 ) (690,354 ) Income tax expense (144,221 ) — (506,544 ) (650,765 ) Net income (loss) $ 8,296,709 $ (2,859,665 ) $ (4,017,417 ) $ 1,419,627 Segment assets(3) $ 54,996,173 $ 57,639,253 $ 3,116,700 $ 115,752,126 Additions to long-lived assets $ 965,651 $ 782,556 $ — $ 1,748,207 Three months ended September 30, 2019 Revenues from outside customers $ 14,893,811 $ 8,679,920 $ — $ 23,573,731 Depreciation and amortization(1) (199,002 ) (603,889 ) — (802,891 ) Direct expenses(2) (11,779,536 ) (8,682,002 ) (1,788,817 ) (22,250,355 ) Segment operating income (loss) 2,915,273 (605,971 ) (1,788,817 ) 520,485 Total other expense (59,495 ) (76,749 ) (260,779 ) (397,023 ) Income tax expense (59,896 ) 11,359 (138,248 ) (186,785 ) Net income (loss) $ 2,795,882 $ (671,361 ) $ (2,187,844 ) $ (63,323 ) Three months ended September 30, 2018 Revenues from outside customers $ 14,665,902 $ 9,178,575 $ — $ 23,844,477 Depreciation, amortization and impairment expenses(1) (208,055 ) (688,935 ) — (896,990 ) Direct expenses(2) (11,507,506 ) (9,174,676 ) (1,122,503 ) (21,804,685 ) Segment operating income (loss) $ 2,950,341 $ (685,036 ) $ (1,122,503 ) $ 1,142,802 Total other expense (45,865 ) 14,340 (143,341 ) (174,866 ) Income tax expense (82,670 ) — (144,710 ) (227,380 ) Net income (loss) $ 2,821,806 $ (670,696 ) $ (1,410,554 ) $ 740,556 (1) Includes depreciation of property and equipment and amortization expenses of intangible assets. (2) Including, inter alia , sales and marketing, general and administrative. (3) Out of those amounts, goodwill in the Company’s Training and Simulation Division and Power Systems Division totaled $24,435,641 and $21,702,395 , respectively, as of September 30, 2019 and 2018 . (4) Out of those amounts, right-of-use assets for the Company’s Training and Simulation Division and Power Systems Division totaled $558,501 and $5,328,742 , respectively, as of September 30, 2019 .

FAIR VALUE MEASUREMENT

FAIR VALUE MEASUREMENT	9 Months Ended
	Sep. 30, 2019
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENT	FAIR VALUE MEASUREMENT The carrying values of short term assets and liabilities in the accompanying Condensed Consolidated Balance Sheets for cash and cash equivalents, restricted collateral deposits, trade receivables, contract assets, inventories, prepaid and other assets, trade payables, accrued expenses, deferred revenues and other liabilities as of September 30, 2019 and December 31, 2018 , approximate fair value because of the short maturity of these instruments. The carrying amounts of long term debt approximate the estimated fair values at September 30, 2019 , based upon the Company’s ability to acquire similar debt at similar maturities.

BANK FINANCING

BANK FINANCING	9 Months Ended
	Sep. 30, 2019
Debt Disclosure [Abstract]
BANK FINANCING	BANK FINANCING The Company maintains credit facilities with JPMorgan Chase Bank, N.A. (“Chase”), whereby Chase provides (i) a $15,000,000 revolving credit facility (“Revolver”), (ii) a $6,000,000 revolving credit facility (“Revolver B”), (iii) a $10,000,000 Term Loan (“Term Loan A”), (iv) a $1,730,895 Mortgage Loan (“Term Loan B”), (v) a $1,358,000 Mortgage Loan (“Term Loan C”); collectively referred to as the “Credit Facilities.” On August, 14 2019, the Company entered into a new amendment to the Credit Agreement (the “Tenth Amendment”), effective August 14, 2019. Pursuant to the terms of the Tenth Amendment, the parties have incorporated, among other changes, amended definitions of indebtedness and Liens which allowed Epsilor-EFL to secure financing for its operations up to $6,000,000 million using its assets as security. In August 2019, Epsilor-EFL entered into an agreement with Bank Leumi Le-Israel (“Leumi”), whereby Leumi provided a loan of NIS 6,000,000 ( $1,697,313 ) (the “Loan”), as well as access to a line of credit of NIS 4,000,000 (together with the Loan, the “Epsilor Credit Facility”). The Loan will be repaid in 60 monthly payments starting in October 2019. The Loan bears an interest rate of LIBOR plus 1.69% . The effective interest rate for the Loan at September 30, 2019 was 3.44% . As of September 30 2019, the line of credit was not used. The Epsilor Credit Facility is secured by Epsilor-EFL’s assets. On July 24, 2019, we entered into a new amendment to the Credit Agreement (the “Ninth Amendment”), effective June 30, 2019. Pursuant to the terms of the Ninth Amendment, the parties have incorporated, among other changes, amended definitions of eligible unbilled accounts associated with certain long term contracts and borrowing base. On April 22, 2019, the Company entered into a new amendment to the Credit Agreement (the “Eighth Amendment”), effective March 31, 2019. Pursuant to the terms of the Eighth Amendment, the parties have incorporated, among other changes, amended definitions of fixed charge coverage ratios and leverage ratios for specific quarters in 2019, and the Company has been given a second revolving line (“Revolver B”) in the amount of $6,000,000 , reducing to $3,000,000 at the end of 2019 and due to be paid in full by February 28, 2020. The Credit Facilities maintain certain reporting requirements, conditions precedent, affirmative covenants and financial covenants. The Company is required to maintain certain financial covenants. The Eighth Amendment to the credit facilities adjusted the financial covenant ratios for the Company’s reporting periods during fiscal year 2019. The amended Maximum Debt to EBITDA ratio of 3.75 to 1.00 for the period ended March 31, 2019, 5.50 to 1.00 for the period ended June 30, 2019, 6.25 to 1.00 for the period ended September 30, 2019, 4.00 to 1.00 for the period ended December 31, 2019 and 3.00 to 1.00 for periods ending after December 31, 2019. The amended Minimum Fixed Charge Coverage Ratio is 1.20 to 1.00 for the period ended March 31, 2019, 1.00 to 1.00 for the periods ended June 30, 2019 and September 30, 2019, and 1.20 to 1.00 for the periods ending after September 30, 2019. The Company was in compliance with its covenants at September 30, 2019 . The Credit Facilities are secured by the Company’s assets and the assets of the Company’s domestic subsidiaries. A summary of our debt, including our debt under the Credit Agreement, is as follows: September 30, 2019 Maturity Effective Interest Rate Current Long Term Debt: Revolver March 11, 2021 5.75% $ 7,334,840 $ — Revolver B February 28, 2020 5.50% 3,000,000 — Term Loan A March 11, 2021 6.00% 2,416,667 1,739,625 Term Loan B & C June 1, 2024 6.00% 154,464 2,574,015 Leumi September 20, 2024 3.44% 339,463 1,357,850 Other Debt (1) 73,311 185,004 Total Debt $ 13,318,745 $ 5,856,494 (1) Other Debt includes various debt instruments that have maturities up to March 20, 2024 with varying interest rates between 2.75% and 3.6% . December 31, 2018 Maturity Effective Interest Rate Current Long Term Debt: Revolver March 11, 2021 5.50% $ 5,500,416 $ — Term Loan A March 11, 2021 5.75% 2,000,000 3,656,291 Term Loan B & C June 1, 2024 5.75% 154,464 2,689,863 Other Debt (1) 50,189 14,415 Total Debt $ 7,705,069 $ 6,360,569 (1) Other Debt includes various debt instruments that have maturities that range from February 3, 2019 to June 28, 2020 with an interest rate of 3.6% .

PENDING ACQUISITION OF THE COMP

PENDING ACQUISITION OF THE COMPANY	9 Months Ended
	Sep. 30, 2019
Business Combinations [Abstract]
PENDING ACQUISITION OF THE COMPANY	PENDING ACQUISITION OF THE COMPANY On September 22, 2019, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Argonaut Intermediate, Inc., a Delaware corporation (“Parent”), and Argonaut Merger Sub, Inc., a Delaware corporation and a direct, wholly-owned subsidiary of Parent (“Merger Sub”), providing for the acquisition of the Company by Parent. Pursuant to the terms of the Merger Agreement, Merger Sub will, at the closing of the transactions contemplated by the Merger Agreement, merge with and into the Company, with the Company surviving the merger as a wholly-owned subsidiary of Parent (the “Merger”). Pursuant to the Merger Agreement, each share of common stock of the Company, par value $0.01 per share (a “Share”) other than Cancelled Shares as defined in the Merger Agreement and Dissenting Shares as defined in the Merger Agreement, issued and outstanding immediately prior to the effective time of the Merger, and each restricted stock unit award share including unvested awards and each restricted stock award share including unvested awards, shall be automatically converted into the right to receive $3.00 in cash, net of applicable tax withholding, without interest, payable to the holder thereof in the manner provided in the Merger Agreement. The consummation of the transactions contemplated by the Merger Agreement is subject to the satisfaction or waiver, if permitted by law, of certain customary closing conditions, including, without limitation, (i) the absence of any law or order whether temporary, preliminary, or permanent enacted, entered, promulgated, or enforced by any governmental entity which prohibits, restrains, or enjoins the consummation of the Merger, and (ii) obtaining the affirmative vote, in person or by proxy of the holders of a majority of the outstanding Shares entitled to vote thereon in favor of the adoption of the Merger Agreement. The consummation of the Merger is not subject to any financing condition. The Merger Agreement contains customary representations and warranties of the Company, Parent and Merger Sub. The Merger Agreement also contains customary covenants and agreements, including with respect to the operation of the business of the Company and its subsidiaries between signing and closing, governmental filings and approvals, public disclosures and similar matters. The Merger Agreement provides that the Merger Agreement may be terminated by the Company or Parent under certain circumstances, and in certain specified circumstances upon termination of the Merger Agreement one party may be required to pay the other a termination fee. Upon termination of the Merger Agreement in accordance with its terms, under specified circumstances, including (i) by the Company to accept a Superior Proposal, (ii) by Parent upon an Adverse Company Board Recommendation Change, or (iii) in certain other specified circumstances where the Company enters into an alternative acquisition within twelve (12) months after termination of the Merger Agreement, the Company will be required to pay Parent a fee of $2,400,000 (the “Company Termination Fee”). In the event the Merger Agreement is terminated by Parent (i) in response to an Adverse Company Board Recommendation Change or (ii) because the Company commits a Willful Breach, as defined in the Merger Agreement, of any of its obligations under the non-solicitation provisions of the Merger Agreement, the Company will be required to pay Parent an amount equal to that required to reimburse Parent, Merger Sub, and their respective affiliates for all reasonable and documented out-of-pocket fees and expenses incurred in connection with the Merger Agreement and the transactions contemplated thereby, up to $800,000 . The Merger Agreement also provides that Parent may be required to pay the Company a fee of $3,200,000 if the Company terminates the Merger Agreement because (i) Parent or Merger Sub has breached or failed to perform any of its representations, warranties, covenants, or agreements under the Merger Agreement such that a closing condition is not satisfied (subject to notice and cure and other customary exceptions) or (ii) Parent fails to close the Merger when required to do so under the Merger Agreement. The Company expects to incur significant costs, expenses, and fees for professional services and other transaction costs in connection with the Merger. Additional information about the Merger Agreement is set forth in the Company’s Current Report on Form 8-K filed with the SEC on September 23, 2019.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	9 Months Ended
	Sep. 30, 2019
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	SUBSEQUENT EVENTS On October 24, 2019, Shiva Stein, a purported stockholder of the Company, filed a complaint against the Company and the members of the board in the United States District Court for the District of Delaware, styled Stein v. Arotech Corporation, C.A. No. 1:19-cv-02016-RGA (the “Stein Action”). Stein alleges that the Company and the board violated the Securities Exchange Act of 1934 (the “Exchange Act”) by failing to disclose material information in connection with financial projections and inputs relied upon by B. Riley in its analyses, including (i) certain non-GAAP financial information and a reconciliation to GAAP, (ii) certain inputs or analyses relating to B. Riley’s Discounted Cash Flow Analysis, and (iii) the premiums paid in the transactions observed in B. Riley’s Premiums Paid Analysis. Stein seeks to, among other things, enjoin the consummation of the merger until such disclosures are made, rescind, to the extent already implemented, the merger agreement, or obtain damages. On October 28, 2019, Eric Sabatini filed a purported stockholder class action against the Company and the members of the board in the United States District Court for the District of Delaware, styled Sabatini v. Arotech Corporation, C.A. No. 1:19-cv-02028-RGA (the “Sabatini Action”). On October 30, 2019, Jacqueline D. Creeks, a purported stockholder of the Company, filed a complaint against the Company, the members of the board, Dean M. Krutty, and Kelli L. Kellar in the United States District Court for the Southern District of New York, styled Creeks v. Arotech Corporation, C.A. No. 1:19-cv-10044 (the “Creeks Action”). Sabatini and Creeks assert similar allegations to those in the Stein Action and seek similar relief. On October 31, 2019, David Hill filed a purported stockholder class action against the Company and the members of the board in the Circuit Court for Washtenaw County in the State of Michigan, styled Hill v. Arotech, Inc., Case No 19-001185-CB (the “Hill Action”). Hill alleges that the members of the board breached their fiduciary duties by failing to disclose purportedly material information, including the information sought in the Stein Action, Sabatini Action, and Creeks Action, and information relating to the sales process, such as details regarding certain confidentiality agreements, the reason for forming the special committee, and the scope of the special committee’s authority. Hill also alleges that the members of the board breached their fiduciary duties by engaging in a purportedly deficient sales process resulting in a purportedly unfair price. Hill further alleges that the members of the board labored under a conflict of interest as a result of the accelerated vesting of certain equity. Finally, Hill claims that the Company aided and abetted those purported breaches. Hill seeks similar relief to the relief sought in the Stein Action, Sabatini Action, and Creeks Action. The outcome of this litigation cannot be predicted with certainty; however, we and our board believe that the allegations and claims asserted in the Stein Action, Sabatini Action, Creeks Action, and Hill Action are without merit. A negative outcome in the actions could adversely affect us if it results in preliminary or permanent injunctive relief. If additional similar complaints are filed, absent new or different allegations that are material, we may not necessarily announce such additional filings.

SIGNIFICANT ACCOUNTING POLICI_2

SIGNIFICANT ACCOUNTING POLICIES UPDATE (Policies)	9 Months Ended
	Sep. 30, 2019
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation: The Company prepared the accompanying unaudited condensed consolidated financial statements of Arotech Corporation and all wholly-owned, majority owned or otherwise controlled subsidiaries on the same basis as its annual audited financial statements. The Company condensed or omitted certain information and footnote disclosures normally included in its annual audited financial statements, which it prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP), with the instructions to Form 10-Q and with Article 10 of Regulation S-X, and include the accounts of Arotech Corporation and its subsidiaries. The Company’s quarterly financial statements should be read in conjunction with its Annual Report on Form 10-K for the year ended December 31, 2018 . In the opinion of the Company, the unaudited financial statements reflect all adjustments (consisting only of normal recurring adjustments) necessary for a fair presentation of its financial position at September 30, 2019 , its operating results for the three and nine months ended September 30, 2019 and 2018 , its cash flows for the nine months ended September 30, 2019 and 2018 , and its statement of stockholders’ equity for the three and nine months ended September 30, 2019 and 2018 . The results of operations for the three and nine months ended September 30, 2019 are not necessarily indicative of results that may be expected for any other interim period or for the full fiscal year ending December 31, 2019 . The condensed consolidated balance sheet at December 31, 2018 has been derived from the audited financial statements at that date but does not include all the information and footnotes required by generally accepted accounting principles for complete financial statements. These condensed consolidated financial statements should be read in conjunction with the audited financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 .
Reclassification	Reclassification: From time to time the Company may reclassify amounts from prior periods to conform to the current year’s presentation.
Commitments and Contingencies	Commitments and contingencies: The Company is involved in litigation from time to time in the regular course of its business. There are no material legal proceedings pending or known by the Company to be contemplated to which the Company is a party or to which any of its property is subject. In addition, the Company believes that adequate provisions for resolution of all contingencies have been made for probable losses that are reasonably estimable. These contingencies are subject to uncertainties, and, as a result, the Company is unable to estimate the amount or range of loss, if any, in excess of amounts accrued. The Company does not believe that these contingencies will have a material adverse effect on the Company’s balance sheets, statements of operations and comprehensive income or statements of cash flows for the three and nine months ended September 30, 2019 .
Goodwill and Other Long-lived Assets	Goodwill and other long-lived assets: Goodwill and indefinite-lived intangible assets are tested for impairment at least annually and between annual tests in certain circumstances, and written down when impaired. Goodwill is tested for impairment by comparing the fair value of the Company’s reporting units with the carrying value. The Training and Simulation and the Power Systems reporting units have goodwill. As of its last annual impairment test at October 1, 2018, the Company determined that the goodwill for both reporting units was not impaired. Consistent with previous interim reporting periods, the Company monitors qualitative and quantitative factors, including internal projections, periodic forecasts, and actual results of the reporting unit. Based upon this interim review, the Company does not believe that goodwill or its indefinite-lived intangible assets related to either reporting unit is impaired.
New Accounting Pronouncements	New accounting pronouncements: In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) . The new standard, effective January 1, 2019, requires virtually all leases to be recognized on the Consolidated Balance Sheets. Effective January 1, 2019, the Company adopted the standard using the modified retrospective method, under which it elected the package of practical expedients and transition provisions allowing it to bring its existing operating leases onto the Condensed Consolidated Balance Sheet without adjusting comparative periods. The Company has operating leases for facilities and equipment, which are recorded as assets and liabilities for those leases with terms greater than 12 months. Lease-related assets, or right-of-use assets (“ROU”), are recognized at the lease commencement date at amounts equal to the respective lease liabilities, adjusted for prepaid lease payments, initial direct costs, and lease incentives received. Lease-related liabilities are recognized at the present value of the remaining contractual fixed lease payments, discounted using our incremental borrowing rate. Operating lease expense is recognized on a straight-line basis over the lease term, while variable lease payments are expensed as incurred. Upon adoption of the standard, the Company recorded approximately $6.3 million of ROU assets and $6.5 million of current and long term lease obligations in its Condensed Consolidated Balance Sheet. Refer to Note 2 “Significant Accounting Policy Update” for additional information. In January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment . The new standard simplifies the subsequent measurement of goodwill and eliminates Step 2 from the goodwill impairment test and requires businesses to perform its annual goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and recognizing an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. The amendments are effective for annual periods beginning after December 15, 2019 with early adoption permitted for goodwill impairment tests performed on testing dates after January 1, 2017. The Company early adopted this standard and it did not have an impact on its consolidated financial statements. In February 2018, the FASB issued ASU No. 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220), Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (“AOCI”) . The accounting standard allows for the optional reclassification of stranded tax effects within accumulated other comprehensive income to retained earnings that arise due to the enactment of the Tax Cuts and Jobs Act of 2017 (the “Tax Act”). The amount of the reclassification would reflect the effect of the change in the U.S. federal corporate income tax rate on the gross deferred tax amounts and related valuation allowances, if any, at the date of enactment of the Tax Act and other income tax effects of the Tax Act on items remaining in accumulated other comprehensive income. The Company adopted the requirements of the new standard in the first quarter of 2019, as required by the new standard. The adoption of this ASU did not have a material impact on the consolidated financial statements. In August 2018, the SEC issued Release No. 33-10532 that amends and clarifies certain financial reporting requirements. The principal change to the Company’s financial reporting is the inclusion of the annual disclosure requirement of changes in stockholders’ equity in Rule 3-04 of Regulation S-X to interim periods.
Revenue Recognition	Revenue recognition: The Company recognized revenues from (i) the sale and customization of interactive training systems (Training and Simulation Division); (ii) maintenance services in connection with such systems (Training and Simulation Division); (iii) the sale of batteries, chargers and adapters, and custom power solutions (Power Systems Division); and (iv) the sale of lifejacket lights (Power Systems Division). The Company determines its revenue recognition through the following steps: • Identification of the contract, or contracts, with a customer • Identification of the performance obligations within the contract • Determination of the transaction price • Allocation of the transaction price to the performance obligations within the contract • Recognition of revenue when, or as the performance obligation has been satisfied
Performance Obligations	Performance Obligations. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer, and is the unit of account in Accounting Standards Codification (“ASC”) Topic 606. A contracts transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. In assessing the recognition of revenue, the Company evaluates whether two or more contracts should be combined and accounted for as one contract and if the combined or single contract should be accounted for as multiple performance obligations which could change the amount of revenue and profit (loss) recorded in a period. The majority of the Company’s contracts with customers are accounted for as one performance obligation, as the majority of tasks and services is part of a single project or capability. As these contracts are typically a customized customer-specific solution, the Company uses the expected cost plus margin approach to estimate the standalone selling price of each performance obligation. For contracts with multiple performance obligations, the Company allocates the contracts transaction price to each performance obligation using its best estimate of the standalone selling price of each distinct good or service in the contract. The Company also offers maintenance and support agreements (“warranties”) for many of its products. The specific terms and conditions of those warranties vary depending upon the product sold and country in which the product was sold. The warranty revenue is recognized on a straight-line basis over the term of the maintenance and support services. The standalone selling price is determined based on the price charged when sold separately or upon renewal. The Company’s performance obligations are satisfied over time as work progresses or at a point in time. Revenue from products and services transferred to customers over time accounted for 91% and 92% of its revenue for the nine months ended September 30, 2019 and 2018, respectively. Revenue from products and services transferred to customers over time accounted for 91% and 92% of its revenue for the three months ended September 30, 2019 and 2018, respectively. Substantially all of the Company’s revenue in the Training and Simulation Division and the U.S. Power Systems Division is recognized over time. Typically, revenue is recognized over time using an input measure ( e.g. , costs incurred to date relative to total estimated costs at completion) to measure progress. Contract costs include labor, material, and overhead. As of September 30, 2019 , the Company had $67.6 million of expected future revenue relating to performance obligations that are currently under contract, which it also refers to as total backlog. The Company expects to recognize approximately 39.6% of its backlog as revenue in 2019, and the remaining 60.4% thereafter.

SIGNIFICANT ACCOUNTING POLICI_3

SIGNIFICANT ACCOUNTING POLICIES UPDATE (Tables)	9 Months Ended
	Sep. 30, 2019
Accounting Policies [Abstract]
Components of Lease Expense	The components of lease expense were as follows: Nine months ended September 30, Three months ended September 30, 2019 2019 Operating lease cost $ 840,672 $ 280,180 Finance lease cost: Amortization of right-of-use assets $ 9,498 $ 3,166 Interest on lease liabilities 2,432 828 Total finance lease costs $ 11,930 $ 3,994 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 2,951,253 $ 165,809 Finance leases 31,386 —
Supplemental Lease Information	Supplemental balance sheet information related to leases was as follows: September 30, 2019 Operating Leases: Right of use asset $ 5,887,243 Current portion of lease obligations 628,294 Long term portion of lease obligations 5,569,696 Total operating lease obligations 6,197,990 Financing Leases: Property and Equipment, at cost 56,933 Accumulated depreciation (11,627 ) Property and Equipment, net 45,306 Other accounts payable and accrued expenses 11,834 Other long term liabilities 34,513 Total financing lease liabilities $ 46,347 Weighted Average Remaining Lease Term Operating leases 10 years Finance leases 4 years Weighted Average Discount Rate Operating leases 7.47 % Finance leases 6.86 % Supplemental Cash Flows information related to leases was as follows: Nine months ended September 30, 2019 Supplemental Cash Flows Information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 653,181 Operating cash flows from finance leases 2,432 Financing cash flows from finance leases 8,565
Maturities of Operating Lease Liabilities	The undiscounted annual future minimum lease payments are summarized by year in the table below: Year Ending December 31, Operating Leases Finance Leases 2019 (excluding the nine months ended September 30, 2019) $ 270,232 $ 3,666 2020 1,106,585 14,664 2021 901,267 14,664 2022 875,177 12,276 2023 769,041 7,500 Thereafter 5,622,703 — Total future minimum lease payments 9,545,005 52,770 Less imputed interest (3,347,015 ) (6,423 ) Total: $ 6,197,990 $ 46,347
Maturities of Finance Lease Liabilities	The undiscounted annual future minimum lease payments are summarized by year in the table below: Year Ending December 31, Operating Leases Finance Leases 2019 (excluding the nine months ended September 30, 2019) $ 270,232 $ 3,666 2020 1,106,585 14,664 2021 901,267 14,664 2022 875,177 12,276 2023 769,041 7,500 Thereafter 5,622,703 — Total future minimum lease payments 9,545,005 52,770 Less imputed interest (3,347,015 ) (6,423 ) Total: $ 6,197,990 $ 46,347

REVENUES (Tables)

REVENUES (Tables)	9 Months Ended
	Sep. 30, 2019
Revenue from Contract with Customer [Abstract]
Contracts	The aggregate impact of adjustments in contract estimates to net income (loss) is presented below: Nine months ended September 30, 2019 2018 Training and Simulation Division Power Systems Division Training and Simulation Division Power Systems Division Net income (loss) $ 974,067 $ 723,271 $ 449,580 $ 77,403 Three months ended September 30, 2019 2018 Training and Simulation Division Power Systems Division Training and Simulation Division Power Systems Division Net income (loss) $ 283,691 $ 489,321 $ (139,016 ) $ 320,269 September 30, 2019 December 31, 2018 Training and Simulation Division Power Systems Division Total Training and Simulation Division Power Systems Division Total Contract Assets - Current $ 16,259,646 $ 8,711,293 $ 24,970,939 $ 10,358,679 $ 7,509,217 $ 17,867,896 Contract Liabilities - Current (7,222,968 ) (281,997 ) (7,504,965 ) (6,697,522 ) (357,257 ) (7,054,779 ) Net Contract Assets and Liabilities: $ 9,036,678 $ 8,429,296 $ 17,465,974 $ 3,661,157 $ 7,151,960 $ 10,813,117
Disaggregation of Revenue	Revenue by major product line was as follows: Nine months ended September 30, Three months ended September 30, 2019 2018 2019 2018 Product Revenue Air Warfare Simulation $ 10,528,294 $ 13,324,429 $ 3,421,823 $ 3,667,058 Vehicle Simulation 21,770,017 17,040,554 6,922,146 6,040,922 Use-of-Force 8,776,417 10,677,612 3,379,033 4,132,059 Service Revenue Warranty 3,177,873 2,533,558 1,170,809 825,863 Total Training and Simulation Division $ 44,252,601 $ 43,576,153 $ 14,893,811 $ 14,665,902 Contract Manufacturing $ 11,026,100 $ 10,130,597 $ 4,181,902 $ 3,100,586 Power Distribution and Generation 691,063 5,695,039 360,278 1,413,117 Batteries 6,677,842 9,767,890 2,144,104 3,118,375 Engineering Services and Other 4,971,328 3,797,917 1,993,636 1,546,497 Total Power Division $ 23,366,333 $ 29,391,443 $ 8,679,920 $ 9,178,575 The table below details the percentage of total recognized revenue by type of arrangement for the nine and three months ended September 30, 2019 and 2018: Nine months ended September 30, Three months ended September 30, Type of Revenue 2019 2018 2019 2018 Sale of products 92.3 % 95.0 % 92.3 % 94.5 % Maintenance and support agreements 4.7 % 3.5 % 5.0 % 3.5 % Long term research and development contracts 3.0 % 1.5 % 2.7 % 2.0 % Total 100 % 100 % 100 % 100 % Revenue by contract type was as follows: Training and Simulation Division Power Systems Division Nine months ended September 30, 2019 Fixed Price $ 35,442,918 $ 22,346,111 Cost Reimbursement (Cost Plus) 4,773,406 478,957 Time and Materials 4,036,277 541,265 Total $ 44,252,601 $ 23,366,333 Nine months ended September 30, 2018 Fixed Price $ 35,975,495 $ 26,807,005 Cost Reimbursement (Cost Plus) 4,120,987 1,822,659 Time and Materials 3,479,671 761,779 Total $ 43,576,153 $ 29,391,443 Three months ended September 30, 2019 Fixed Price $ 11,888,617 $ 8,455,355 Cost Reimbursement (Cost Plus) 1,996,293 45,376 Time and Materials 1,008,901 179,189 Total $ 14,893,811 $ 8,679,920 Three months ended September 30, 2018 Fixed Price $ 11,948,500 $ 8,372,521 Cost Reimbursement (Cost Plus) 1,511,711 567,767 Time and Materials 1,205,691 238,287 Total $ 14,665,902 $ 9,178,575 Revenue by customer was as follows: Training and Simulation Division Power Systems Division Nine months ended September 30, 2019 U.S. Government Department of Defense (DoD) $ 13,364,239 $ 818,070 Non-DoD 10,146,377 — Foreign Military Sales (FMS) 2,531,338 — Total U.S. Government $ 26,041,954 $ 818,070 U.S. Commercial $ 15,574,732 $ 11,443,706 Non-U.S. Government 613,356 728,931 Non-U.S. Commercial 2,022,559 10,375,626 Total Revenue $ 44,252,601 $ 23,366,333 Nine months ended September 30, 2018 U.S. Government Department of Defense (DoD) $ 12,399,861 $ 2,115,108 Non-DoD 7,655,130 — Foreign Military Sales (FMS) 2,055,333 — Total U.S. Government 22,110,324 2,115,108 U.S. Commercial $ 16,546,210 $ 16,159,067 Non-U.S. Government 1,786,538 2,003,417 Non-U.S. Commercial 3,133,081 9,113,851 Total Revenue $ 43,576,153 $ 29,391,443 Three months ended September 30, 2019 U.S. Government Department of Defense (DoD) $ 3,749,868 $ 338,076 Non-DoD 3,758,068 — Foreign Military Sales (FMS) 950,843 — Total U.S. Government $ 8,458,779 $ 338,076 U.S. Commercial $ 5,565,858 $ 4,461,350 Non-U.S. Government 145,368 270,957 Non-U.S. Commercial 723,806 3,609,537 Total Revenue $ 14,893,811 $ 8,679,920 Three months ended September 30, 2018 U.S. Government Department of Defense (DoD) $ 4,753,006 $ 772,751 Non-DoD 3,272,251 — Foreign Military Sales (FMS) 341,933 — Total U.S. Government $ 8,367,190 $ 772,751 U.S. Commercial $ 4,744,148 $ 4,669,493 Non-U.S. Government 394,091 180,253 Non-U.S. Commercial 1,160,473 3,556,078 Total Revenue $ 14,665,902 $ 9,178,575

INVENTORIES (Tables)

INVENTORIES (Tables)	9 Months Ended
	Sep. 30, 2019
Inventory Disclosure [Abstract]
Inventories by Component	Inventories by component are as follows: September 30, 2019 December 31, 2018 Raw and packaging materials $ 7,496,211 $ 7,912,883 Work in progress 958,912 1,626,960 Finished products 450,406 372,905 Total: $ 8,905,529 $ 9,912,748

SEGMENT INFORMATION (Tables)

SEGMENT INFORMATION (Tables)	9 Months Ended
	Sep. 30, 2019
Segment Reporting [Abstract]
Schedule of Segment Reporting Information, by Segment	The following is information about reported segment revenues, income (losses) from operations, and total assets as of September 30, 2019 and 2018 : Training and Power Systems Corporate Total Nine months ended September 30, 2019 Revenues from outside customers $ 44,252,601 $ 23,366,333 $ — $ 67,618,934 Depreciation and amortization(1) (581,466 ) (1,884,194 ) — (2,465,660 ) Direct expenses(2) (35,677,099 ) (25,234,110 ) (3,740,107 ) (64,651,316 ) Segment operating income (loss) $ 7,994,036 $ (3,751,971 ) $ (3,740,107 ) $ 501,958 Total other expense (178,868 ) (207,986 ) (689,117 ) (1,075,971 ) Income tax expense (154,496 ) 11,359 (360,910 ) (504,047 ) Net income (loss) $ 7,660,672 $ (3,948,598 ) $ (4,790,134 ) $ (1,078,060 ) Segment assets(3)(4) $ 63,077,725 $ 63,687,157 $ 4,129,028 $ 130,893,910 Additions to long-lived assets $ 1,481,270 $ 1,645,850 $ 382,755 $ 3,509,875 Nine months ended September 30, 2018 Revenues from outside customers $ 43,576,153 $ 29,391,443 $ — $ 72,967,596 Depreciation and amortization(1) (605,195 ) (2,159,094 ) — (2,764,289 ) Direct expenses(2) (34,352,017 ) (30,103,527 ) (2,987,017 ) (67,442,561 ) Segment operating income (loss) $ 8,618,941 $ (2,871,178 ) $ (2,987,017 ) $ 2,760,746 Total other expense (178,011 ) 11,513 (523,856 ) (690,354 ) Income tax expense (144,221 ) — (506,544 ) (650,765 ) Net income (loss) $ 8,296,709 $ (2,859,665 ) $ (4,017,417 ) $ 1,419,627 Segment assets(3) $ 54,996,173 $ 57,639,253 $ 3,116,700 $ 115,752,126 Additions to long-lived assets $ 965,651 $ 782,556 $ — $ 1,748,207 Three months ended September 30, 2019 Revenues from outside customers $ 14,893,811 $ 8,679,920 $ — $ 23,573,731 Depreciation and amortization(1) (199,002 ) (603,889 ) — (802,891 ) Direct expenses(2) (11,779,536 ) (8,682,002 ) (1,788,817 ) (22,250,355 ) Segment operating income (loss) 2,915,273 (605,971 ) (1,788,817 ) 520,485 Total other expense (59,495 ) (76,749 ) (260,779 ) (397,023 ) Income tax expense (59,896 ) 11,359 (138,248 ) (186,785 ) Net income (loss) $ 2,795,882 $ (671,361 ) $ (2,187,844 ) $ (63,323 ) Three months ended September 30, 2018 Revenues from outside customers $ 14,665,902 $ 9,178,575 $ — $ 23,844,477 Depreciation, amortization and impairment expenses(1) (208,055 ) (688,935 ) — (896,990 ) Direct expenses(2) (11,507,506 ) (9,174,676 ) (1,122,503 ) (21,804,685 ) Segment operating income (loss) $ 2,950,341 $ (685,036 ) $ (1,122,503 ) $ 1,142,802 Total other expense (45,865 ) 14,340 (143,341 ) (174,866 ) Income tax expense (82,670 ) — (144,710 ) (227,380 ) Net income (loss) $ 2,821,806 $ (670,696 ) $ (1,410,554 ) $ 740,556 (1) Includes depreciation of property and equipment and amortization expenses of intangible assets. (2) Including, inter alia , sales and marketing, general and administrative. (3) Out of those amounts, goodwill in the Company’s Training and Simulation Division and Power Systems Division totaled $24,435,641 and $21,702,395 , respectively, as of September 30, 2019 and 2018 . (4) Out of those amounts, right-of-use assets for the Company’s Training and Simulation Division and Power Systems Division totaled $558,501 and $5,328,742 , respectively, as of September 30, 2019 .

BANK FINANCING (Tables)

BANK FINANCING (Tables)	9 Months Ended
	Sep. 30, 2019
Debt Disclosure [Abstract]
Schedule of Credit Agreement Debt	A summary of our debt, including our debt under the Credit Agreement, is as follows: September 30, 2019 Maturity Effective Interest Rate Current Long Term Debt: Revolver March 11, 2021 5.75% $ 7,334,840 $ — Revolver B February 28, 2020 5.50% 3,000,000 — Term Loan A March 11, 2021 6.00% 2,416,667 1,739,625 Term Loan B & C June 1, 2024 6.00% 154,464 2,574,015 Leumi September 20, 2024 3.44% 339,463 1,357,850 Other Debt (1) 73,311 185,004 Total Debt $ 13,318,745 $ 5,856,494 (1) Other Debt includes various debt instruments that have maturities up to March 20, 2024 with varying interest rates between 2.75% and 3.6% . December 31, 2018 Maturity Effective Interest Rate Current Long Term Debt: Revolver March 11, 2021 5.50% $ 5,500,416 $ — Term Loan A March 11, 2021 5.75% 2,000,000 3,656,291 Term Loan B & C June 1, 2024 5.75% 154,464 2,689,863 Other Debt (1) 50,189 14,415 Total Debt $ 7,705,069 $ 6,360,569 (1) Other Debt includes various debt instruments that have maturities that range from February 3, 2019 to June 28, 2020 with an interest rate of 3.6% .

BASIS OF PRESENTATION (Details)

BASIS OF PRESENTATION (Details) - USD ($)	1 Months Ended	9 Months Ended
	Jul. 31, 2019	Sep. 30, 2019	Sep. 30, 2018	Jan. 01, 2019
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Other accounts receivable and prepaid expenses		$ 2,677,608	$ (1,195,029)
Right-of-use assets		5,887,243
Lease obligations		$ 6,197,990
SAIC
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Other accounts receivable and prepaid expenses	$ 2,000,000
ASU 2016-02
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Right-of-use assets				$ 6,300,000
Lease obligations				$ 6,500,000

SIGNIFICANT ACCOUNTING POLICI_4

SIGNIFICANT ACCOUNTING POLICIES UPDATE - Narrative (Details) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2019USD ($)	Sep. 30, 2019USD ($)
Lessee, Lease, Description [Line Items]
Sublease income	$ 26	$ 78
Facilities and Equipment
Lessee, Lease, Description [Line Items]
Lease renewal term	5 years	5 years
Facilities and Equipment | Minimum
Lessee, Lease, Description [Line Items]
Lease term	2 years	2 years
Facilities and Equipment | Maximum
Lessee, Lease, Description [Line Items]
Lease term	15 years	15 years

SIGNIFICANT ACCOUNTING POLICI_5

SIGNIFICANT ACCOUNTING POLICIES UPDATE - Components of Lease Expense (Details) - USD ($)	3 Months Ended	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2019
Lease, Cost
Operating lease cost	$ 280,180	$ 840,672
Amortization of right-of-use assets	3,166	9,498
Interest on lease liabilities	828	2,432
Total finance lease costs	3,994	11,930
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	165,809	2,951,253
Finance leases	$ 0	$ 31,386

SIGNIFICANT ACCOUNTING POLICI_6

SIGNIFICANT ACCOUNTING POLICIES UPDATE - Supplemental Balance Sheet Information (Details)	Sep. 30, 2019USD ($)
Operating Leases
Right of use asset	$ 5,887,243
Current portion of lease obligations	628,294
Long term portion of lease obligations	5,569,696
Total operating lease obligations	6,197,990
Financing Leases
Property and Equipment, at cost	56,933
Accumulated depreciation	(11,627)
Property and Equipment, net	45,306
Other accounts payable and accrued expenses	11,834
Other long term liabilities	34,513
Total financing lease liabilities	$ 46,347
Weighted Average Remaining Lease Term
Operating leases (in years)	10 years
Finance leases (in years)	4 years
Weighted Average Discount Rate
Operating leases, percentage	7.47%
Finance leases, percentage	6.86%

SIGNIFICANT ACCOUNTING POLICI_7

SIGNIFICANT ACCOUNTING POLICIES UPDATE - Supplemental Cash Flow Information (Details)	9 Months Ended
	Sep. 30, 2019USD ($)
Supplemental Cash Flows Information
Operating cash flows from operating leases	$ 653,181
Operating cash flows from finance leases	2,432
Financing cash flows from finance leases	$ 8,565

SIGNIFICANT ACCOUNTING POLICI_8

SIGNIFICANT ACCOUNTING POLICIES UPDATE - Maturities of Operating and Finance Lease Liabilities (Details)	Sep. 30, 2019USD ($)
Operating Leases
2019 (excluding the nine months ended September 30, 2019)	$ 270,232
2020	1,106,585
2021	901,267
2022	875,177
2023	769,041
Thereafter	5,622,703
Total future minimum lease payments	9,545,005
Less imputed interest	(3,347,015)
Total:	6,197,990
Finance Leases
2019 (excluding the nine months ended September 30, 2019)	3,666
2020	14,664
2021	14,664
2022	12,276
2023	7,500
Thereafter	0
Total future minimum lease payments	52,770
Less imputed interest	(6,423)
Total:	$ 46,347

REVENUES - Narrative (Details)

REVENUES - Narrative (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2019USD ($)contract	Sep. 30, 2018contract	Sep. 30, 2019USD ($)contract	Sep. 30, 2018USD ($)contract	Dec. 31, 2018USD ($)
Disaggregation of Revenue [Line Items]
Concentration risk, percentage	100.00%	100.00%	100.00%	100.00%
Number of active contracts | contract	490	525	490	525
Increase in net contract assets and liabilities			$ 6,700,000
Contract with customer, liability, revenue recognized			5,100,000	$ 5,200,000
Trade receivables, net	$ 17,163,788		$ 17,163,788		$ 16,259,809
Transferred over Time
Disaggregation of Revenue [Line Items]
Concentration risk, percentage	91.00%	92.00%	91.00%	92.00%

REVENUES - Performance Obligati

REVENUES - Performance Obligation (Details) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Revenue from Contract with Customer [Abstract]
Revenue, remaining performance obligation, amount	$ 67.6
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-10-01
Revenue from Contract with Customer [Abstract]
Revenue, remaining performance obligation, percentage	39.60%
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, period		9 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01
Revenue from Contract with Customer [Abstract]
Revenue, remaining performance obligation, percentage	60.40%
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, period

REVENUES - Schedule of Adjustme

REVENUES - Schedule of Adjustments in Contract Estimates (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Training and Simulation Division
Revenue from External Customer [Line Items]
Net income (loss)	$ 283,691	$ (139,016)	$ 974,067	$ 449,580
Power Systems Division
Revenue from External Customer [Line Items]
Net income (loss)	$ 489,321	$ 320,269	$ 723,271	$ 77,403

REVENUES - Revenue from Externa

REVENUES - Revenue from External Customers by Products and Services (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Revenue from External Customer [Line Items]
Revenues	$ 23,573,731	$ 23,844,477	$ 67,618,934	$ 72,967,596
Training and Simulation Division
Revenue from External Customer [Line Items]
Revenues	14,893,811	14,665,902	44,252,601	43,576,153
Training and Simulation Division | Air Warfare Simulation
Revenue from External Customer [Line Items]
Revenues	3,421,823	3,667,058	10,528,294	13,324,429
Training and Simulation Division | Vehicle Simulation
Revenue from External Customer [Line Items]
Revenues	6,922,146	6,040,922	21,770,017	17,040,554
Training and Simulation Division | Use-of-Force
Revenue from External Customer [Line Items]
Revenues	3,379,033	4,132,059	8,776,417	10,677,612
Training and Simulation Division | Warranty
Revenue from External Customer [Line Items]
Revenues	1,170,809	825,863	3,177,873	2,533,558
Power Systems Division
Revenue from External Customer [Line Items]
Revenues	8,679,920	9,178,575	23,366,333	29,391,443
Power Systems Division | Contract Manufacturing
Revenue from External Customer [Line Items]
Revenues	4,181,902	3,100,586	11,026,100	10,130,597
Power Systems Division | Power Distribution and Generation
Revenue from External Customer [Line Items]
Revenues	360,278	1,413,117	691,063	5,695,039
Power Systems Division | Batteries
Revenue from External Customer [Line Items]
Revenues	2,144,104	3,118,375	6,677,842	9,767,890
Power Systems Division | Engineering Services and Other
Revenue from External Customer [Line Items]
Revenues	$ 1,993,636	$ 1,546,497	$ 4,971,328	$ 3,797,917

REVENUES - Schedule of Principa

REVENUES - Schedule of Principal Transactions Revenue (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Revenue from External Customer [Line Items]
Concentration risk, percentage	100.00%	100.00%	100.00%	100.00%
Sale of products
Revenue from External Customer [Line Items]
Concentration risk, percentage	92.30%	94.50%	92.30%	95.00%
Maintenance and support agreements
Revenue from External Customer [Line Items]
Concentration risk, percentage	5.00%	3.50%	4.70%	3.50%
Long term research and development contracts
Revenue from External Customer [Line Items]
Concentration risk, percentage	2.70%	2.00%	3.00%	1.50%

REVENUES - Disaggregation of Re

REVENUES - Disaggregation of Revenue (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Disaggregation of Revenue [Line Items]
Revenues	$ 23,573,731	$ 23,844,477	$ 67,618,934	$ 72,967,596
Training and Simulation Division
Disaggregation of Revenue [Line Items]
Revenues	14,893,811	14,665,902	44,252,601	43,576,153
Training and Simulation Division | Fixed Price
Disaggregation of Revenue [Line Items]
Revenues	11,888,617	11,948,500	35,442,918	35,975,495
Training and Simulation Division | Cost Reimbursement (Cost Plus)
Disaggregation of Revenue [Line Items]
Revenues	1,996,293	1,511,711	4,773,406	4,120,987
Training and Simulation Division | Time and Materials
Disaggregation of Revenue [Line Items]
Revenues	1,008,901	1,205,691	4,036,277	3,479,671
Power Systems Division
Disaggregation of Revenue [Line Items]
Revenues	8,679,920	9,178,575	23,366,333	29,391,443
Power Systems Division | Fixed Price
Disaggregation of Revenue [Line Items]
Revenues	8,455,355	8,372,521	22,346,111	26,807,005
Power Systems Division | Cost Reimbursement (Cost Plus)
Disaggregation of Revenue [Line Items]
Revenues	45,376	567,767	478,957	1,822,659
Power Systems Division | Time and Materials
Disaggregation of Revenue [Line Items]
Revenues	$ 179,189	$ 238,287	$ 541,265	$ 761,779

REVENUES - Schedule of Revenue

REVENUES - Schedule of Revenue by Major Customers by Reporting Segments (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Revenue, Major Customer [Line Items]
Revenues	$ 23,573,731	$ 23,844,477	$ 67,618,934	$ 72,967,596
Training and Simulation Division
Revenue, Major Customer [Line Items]
Revenues	14,893,811	14,665,902	44,252,601	43,576,153
Power Systems Division
Revenue, Major Customer [Line Items]
Revenues	8,679,920	9,178,575	23,366,333	29,391,443
Department of Defense (DoD) | Training and Simulation Division
Revenue, Major Customer [Line Items]
Revenues	3,749,868	4,753,006	13,364,239	12,399,861
Department of Defense (DoD) | Power Systems Division
Revenue, Major Customer [Line Items]
Revenues	338,076	772,751	818,070	2,115,108
Non-DoD | Training and Simulation Division
Revenue, Major Customer [Line Items]
Revenues	3,758,068	3,272,251	10,146,377	7,655,130
Non-DoD | Power Systems Division
Revenue, Major Customer [Line Items]
Revenues	0	0	0	0
Foreign Military Sales (FMS) | Training and Simulation Division
Revenue, Major Customer [Line Items]
Revenues	950,843	341,933	2,531,338	2,055,333
Foreign Military Sales (FMS) | Power Systems Division
Revenue, Major Customer [Line Items]
Revenues	0	0	0	0
Total U.S. Government | Training and Simulation Division
Revenue, Major Customer [Line Items]
Revenues	8,458,779	8,367,190	26,041,954	22,110,324
Total U.S. Government | Power Systems Division
Revenue, Major Customer [Line Items]
Revenues	338,076	772,751	818,070	2,115,108
U.S. Commercial | Training and Simulation Division
Revenue, Major Customer [Line Items]
Revenues	5,565,858	4,744,148	15,574,732	16,546,210
U.S. Commercial | Power Systems Division
Revenue, Major Customer [Line Items]
Revenues	4,461,350	4,669,493	11,443,706	16,159,067
Non-U.S. Government | Training and Simulation Division
Revenue, Major Customer [Line Items]
Revenues	145,368	394,091	613,356	1,786,538
Non-U.S. Government | Power Systems Division
Revenue, Major Customer [Line Items]
Revenues	270,957	180,253	728,931	2,003,417
Non-U.S. Commercial | Training and Simulation Division
Revenue, Major Customer [Line Items]
Revenues	723,806	1,160,473	2,022,559	3,133,081
Non-U.S. Commercial | Power Systems Division
Revenue, Major Customer [Line Items]
Revenues	$ 3,609,537	$ 3,556,078	$ 10,375,626	$ 9,113,851

REVENUES - Contract with Custom

REVENUES - Contract with Customer, Assets and Liabilities (Details) - USD ($)	Sep. 30, 2019	Dec. 31, 2018
Contract with Customer Assets and Liabilities [Line Items]
Contract Assets - Current	$ 24,970,939	$ 17,867,896
Contract Liabilities - Current	(7,504,965)	(7,054,779)
Net Contract Assets and Liabilities:	17,465,974	10,813,117
Training and Simulation Division
Contract with Customer Assets and Liabilities [Line Items]
Contract Assets - Current	16,259,646	10,358,679
Contract Liabilities - Current	(7,222,968)	(6,697,522)
Net Contract Assets and Liabilities:	9,036,678	3,661,157
Power Systems Division
Contract with Customer Assets and Liabilities [Line Items]
Contract Assets - Current	8,711,293	7,509,217
Contract Liabilities - Current	(281,997)	(357,257)
Net Contract Assets and Liabilities:	$ 8,429,296	$ 7,151,960

INVENTORIES - Narrative (Detail

INVENTORIES - Narrative (Details) - USD ($)	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Inventory Disclosure [Abstract]
Inventory write-down	$ 104,246	$ 558,000

INVENTORIES - Schedule of Inven

INVENTORIES - Schedule of Inventory (Details) - USD ($)	Sep. 30, 2019	Dec. 31, 2018
Inventory Disclosure [Abstract]
Raw and packaging materials	$ 7,496,211	$ 7,912,883
Work in progress	958,912	1,626,960
Finished products	450,406	372,905
Total	$ 8,905,529	$ 9,912,748

SEGMENT INFORMATION - Narrative

SEGMENT INFORMATION - Narrative (Details)	9 Months Ended
	Sep. 30, 2019USD ($)segment	Dec. 31, 2018USD ($)	Sep. 30, 2018USD ($)
Segment Reporting Information [Line Items]
Number of business segments | segment	2
Goodwill	$ 46,138,036	$ 46,138,036
Right-of-use assets	5,887,243
Training and Simulation Division
Segment Reporting Information [Line Items]
Goodwill	24,435,641		$ 24,435,641
Right-of-use assets	558,501
Power Systems Division
Segment Reporting Information [Line Items]
Goodwill	21,702,395		$ 21,702,395
Right-of-use assets	$ 5,328,742

SEGMENT INFORMATION - Schedule

SEGMENT INFORMATION - Schedule of Segment Reporting Information (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Segment Reporting Information [Line Items]
Revenues from outside customers	$ 23,573,731	$ 23,844,477	$ 67,618,934	$ 72,967,596
Total other expense	(396,170)	(173,345)	(1,066,027)	(696,232)
Income tax expense	(186,785)	(227,380)	(504,047)	(650,765)
Net income (loss)	(63,323)	740,556	(1,078,060)	1,419,627
Segment assets	130,893,910		130,893,910		$ 117,963,645
Corporate Expenses
Segment Reporting Information [Line Items]
Revenues from outside customers	0	0	0	0
Depreciation and amortization	0	0	0	0
Direct expenses	(1,788,817)	(1,122,503)	(3,740,107)	(2,987,017)
Segment operating income (loss)	(1,788,817)	(1,122,503)	(3,740,107)	(2,987,017)
Total other expense	(260,779)	(143,341)	(689,117)	(523,856)
Income tax expense	(138,248)	(144,710)	(360,910)	(506,544)
Net income (loss)	(2,187,844)	(1,410,554)	(4,790,134)	(4,017,417)
Segment assets	4,129,028	3,116,700	4,129,028	3,116,700
Additions to long-lived assets			382,755	0
Training and Simulation Division
Segment Reporting Information [Line Items]
Revenues from outside customers	14,893,811	14,665,902	44,252,601	43,576,153
Depreciation and amortization	(199,002)	(208,055)	(581,466)	(605,195)
Direct expenses	(11,779,536)	(11,507,506)	(35,677,099)	(34,352,017)
Segment operating income (loss)	2,915,273	2,950,341	7,994,036	8,618,941
Total other expense	(59,495)	(45,865)	(178,868)	(178,011)
Income tax expense	(59,896)	(82,670)	(154,496)	(144,221)
Net income (loss)	2,795,882	2,821,806	7,660,672	8,296,709
Segment assets	63,077,725	54,996,173	63,077,725	54,996,173
Additions to long-lived assets			1,481,270	965,651
Power Systems Division
Segment Reporting Information [Line Items]
Revenues from outside customers	8,679,920	9,178,575	23,366,333	29,391,443
Depreciation and amortization	(603,889)	(688,935)	(1,884,194)	(2,159,094)
Direct expenses	(8,682,002)	(9,174,676)	(25,234,110)	(30,103,527)
Segment operating income (loss)	(605,971)	(685,036)	(3,751,971)	(2,871,178)
Total other expense	(76,749)	14,340	(207,986)	11,513
Income tax expense	11,359	0	11,359	0
Net income (loss)	(671,361)	(670,696)	(3,948,598)	(2,859,665)
Segment assets	63,687,157	57,639,253	63,687,157	57,639,253
Additions to long-lived assets			1,645,850	782,556
Total Company
Segment Reporting Information [Line Items]
Revenues from outside customers	23,573,731	23,844,477	67,618,934	72,967,596
Depreciation and amortization	(802,891)	(896,990)	(2,465,660)	(2,764,289)
Direct expenses	(22,250,355)	(21,804,685)	(64,651,316)	(67,442,561)
Segment operating income (loss)	520,485	1,142,802	501,958	2,760,746
Total other expense	(397,023)	(174,866)	(1,075,971)	(690,354)
Income tax expense	(186,785)	(227,380)	(504,047)	(650,765)
Net income (loss)	(63,323)	740,556	(1,078,060)	1,419,627
Segment assets	$ 130,893,910	$ 115,752,126	130,893,910	115,752,126
Additions to long-lived assets			$ 3,509,875	$ 1,748,207

BANK FINANCING (Details)

BANK FINANCING (Details)	3 Months Ended	6 Months Ended	9 Months Ended	12 Months Ended
	Mar. 31, 2019	Jun. 30, 2019	Sep. 30, 2019USD ($)	Dec. 31, 2020	Dec. 31, 2019USD ($)	Dec. 31, 2018USD ($)	Aug. 31, 2019USD ($)	Aug. 31, 2019ILS (₪)
Debt Instrument [Line Items]
Short term bank credit			$ 10,334,840			$ 5,500,416
Loans, current			13,318,745			7,705,069
Loans, long-term			5,856,494			$ 6,360,569
Revolving Credit Facility
Debt Instrument [Line Items]
Revolver, maximum borrowing capacity			$ 15,000,000
Loans, maturity date			Mar. 11, 2021
Loans, effective interest rate			5.75%			5.50%
Loans, current			$ 7,334,840			$ 5,500,416
Loans, long-term			$ 0			$ 0
Covenant terms			The Credit Facilities maintain certain reporting requirements, conditions precedent, affirmative covenants and financial covenants. The Company is required to maintain certain financial covenants. The Eighth Amendment to the credit facilities adjusted the financial covenant ratios for the Company’s reporting periods during fiscal year 2019. The amended Maximum Debt to EBITDA ratio of 3.75 to 1.00 for the period ended March 31, 2019, 5.50 to 1.00 for the period ended June 30, 2019, 6.25 to 1.00 for the period ended September 30, 2019, 4.00 to 1.00 for the period ended December 31, 2019 and 3.00 to 1.00 for periods ending after December 31, 2019. The amended Minimum Fixed Charge Coverage Ratio is 1.20 to 1.00 for the period ended March 31, 2019, 1.00 to 1.00 for the periods ended June 30, 2019 and September 30, 2019, and 1.20 to 1.00 for the periods ending after September 30, 2019.
Maximum Debt to EBITDA ratio	3.75	5.50	6.25
Minimum Fixed Charge Coverage ratio	1.20	1	1
Collateral			The Credit Facilities are secured by the Company’s assets and the assets of the Company’s domestic subsidiaries.
Revolver B
Debt Instrument [Line Items]
Revolver, maximum borrowing capacity			$ 6,000,000
Loans, maturity date			Feb. 28, 2020
Loans, effective interest rate			5.50%
Loans, current			$ 3,000,000
Loans, long-term			0
Leumi
Debt Instrument [Line Items]
Revolver, maximum borrowing capacity			$ 6,000,000
Loans, face amount							$ 1,697,313	₪ 6,000,000
Number of payments			60 months
Loans, effective interest rate			3.44%
Loans, current			$ 339,463
Loans, long-term			$ 1,357,850
Epsilor Credit Facility
Debt Instrument [Line Items]
Revolver, maximum borrowing capacity | ₪								₪ 4,000,000
Mortgage Loan
Debt Instrument [Line Items]
Loans, maturity date			Jun. 1, 2024			Jun. 1, 2024
Loans, effective interest rate			6.00%			5.75%
Loans, current			$ 154,464			$ 154,464
Loans, long-term			2,574,015			$ 2,689,863
Term Loan A
Debt Instrument [Line Items]
Loans, face amount			$ 10,000,000
Loans, maturity date			Mar. 11, 2021			Mar. 11, 2021
Loans, effective interest rate			6.00%			5.75%
Loans, current			$ 2,416,667			$ 2,000,000
Loans, long-term			1,739,625			$ 3,656,291
Other Debt Instruments
Debt Instrument [Line Items]
Loans, effective interest rate						3.60%
Loans, current			73,311			$ 50,189
Loans, long-term			185,004			$ 14,415
Term Loan B | Mortgage Loan
Debt Instrument [Line Items]
Loans, face amount			1,730,895
Term Loan C | Mortgage Loan
Debt Instrument [Line Items]
Loans, face amount			$ 1,358,000
Minimum | Other Debt Instruments
Debt Instrument [Line Items]
Loans, effective interest rate			2.75%
Maximum | Other Debt Instruments
Debt Instrument [Line Items]
Loans, effective interest rate			3.60%
Forecast | Revolving Credit Facility
Debt Instrument [Line Items]
Maximum Debt to EBITDA ratio				3	4
Minimum Fixed Charge Coverage ratio				1.20
Forecast | Revolver B
Debt Instrument [Line Items]
Revolver, maximum borrowing capacity					$ 3,000,000
LIBOR | Leumi
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate			1.69%

PENDING ACQUISITION OF THE CO_2

PENDING ACQUISITION OF THE COMPANY (Details) - USD ($)	3 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Dec. 31, 2018
Business Acquisition [Line Items]
Common stock - par value (in dollars per share)		$ 0.01	$ 0.01
Merger Agreement | Forecast | Subsequent Event
Business Acquisition [Line Items]
Termination fee upon default	$ 2,400,000
Merger Agreement | Forecast | Subsequent Event | Parent
Business Acquisition [Line Items]
Termination fee upon default	3,200,000
Merger Agreement | Maximum | Forecast | Subsequent Event
Business Acquisition [Line Items]
Termination out of pocket fees	$ 800,000
Merger Agreement | Common stock | Forecast | Subsequent Event
Business Acquisition [Line Items]
Common stock - par value (in dollars per share)	$ 0.01
Merger Agreement | Common stock | Right to receive | Forecast | Subsequent Event
Business Acquisition [Line Items]
Common stock - right to receive cash (in dollars per share)	$ 3