Arotech (ARTX) 10-Q 9 Aug 16 2016 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Aug. 05, 2016
Document and Entity Information [Abstract]
Entity Registrant Name	AROTECH CORPORATION
Document Type	10-Q
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		26,438,224
Amendment Flag	false
Entity Central Index Key	916,529
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Accelerated Filer
Entity Well-known Seasoned Issuer	No
Document Period End Date	Jun. 30, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q2

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Jun. 30, 2016	Dec. 31, 2015
CURRENT ASSETS:
Cash and cash equivalents	$ 9,896,552	$ 10,608,420
Restricted collateral deposits	65,294	89,985
Trade receivables	16,200,451	17,401,479
Unbilled receivables	7,985,180	12,132,484
Other accounts receivable and prepaid expenses	2,078,376	1,007,358
Inventories	9,673,232	9,607,836
Total current assets	45,899,085	50,847,562
LONG TERM ASSETS:
Contractual and Israeli statutory severance pay fund	5,661,255	5,384,024
Other long term receivables	23,745	23,403
Property and equipment, net	6,393,384	6,440,270
Other intangible assets, net	7,896,041	9,334,730
Goodwill	45,487,970	45,463,027
Total long term assets	65,462,395	66,645,454
Total assets	111,361,480	117,493,016
CURRENT LIABILITIES:
Trade payables	3,075,639	5,914,042
Other accounts payable and accrued expenses	5,551,619	5,560,040
Current portion of long term debt	1,383,380	4,362,438
Short term bank credit	4,326,083	4,060,000
Deferred revenues	5,745,962	6,879,815
Total current liabilities	20,082,683	26,776,335
LONG TERM LIABILITIES:
Contractual and accrued Israeli statutory severance pay	7,857,174	7,516,980
Long term portion of debt	9,656,601	11,856,522
Deferred income tax liability	7,410,853	7,031,564
Other long term liabilities	86,979	264,244
Total long-term liabilities	25,011,607	26,669,310
Total liabilities	45,094,290	53,445,645
Share capital –
Common stock – $0.01 par value each; Authorized: 50,000,000 shares as of June 30, 2016 and December 31, 2015; Issued and outstanding: 26,438,224 shares and 24,697,335 shares as of June 30, 2016 and December 31, 2015, respectively	264,382	246,973
Preferred shares – $0.01 par value each; Authorized: 1,000,000 shares as of June 30, 2016 and December 31, 2015; No shares issued or outstanding as of June 30, 2016 and December 31, 2015	0	0
Additional paid-in capital	250,175,492	246,591,415
Accumulated deficit	(183,998,359)	(182,554,637)
Notes receivable from stockholders	(908,054)	(908,054)
Accumulated other comprehensive income	733,729	671,674
Total stockholders' equity	66,267,190	64,047,371
Total liabilities and stockholders' equity	$ 111,361,480	$ 117,493,016

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares	Jun. 30, 2016	Dec. 31, 2015
Common Stock - par value (in Dollars per share)	$ 0.01	$ 0.01
Common stock - authorized	50,000,000	50,000,000
Common stock- shares issued	26,438,224	24,697,335
Common stock - shares outstanding	26,438,224	24,697,335
Preferred shares - par value (in Dollars per share)	$ 0.01	$ 0.01
Preferred shares - shares authorized	1,000,000	1,000,000
Preferred shares - shares issued	0	0
Preferred shares -shares outstanding	0	0

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Revenues	$ 21,779,877	$ 21,644,225	$ 47,186,358	$ 45,870,933
Cost of revenues	14,784,721	15,426,613	32,496,895	32,750,960
Research and development expenses	1,009,874	1,250,550	2,107,602	2,344,814
Selling and marketing expenses	1,799,588	1,397,374	3,454,454	2,622,790
General and administrative expenses	3,734,374	4,527,476	8,026,787	8,181,051
Amortization of intangible assets	698,637	705,494	1,466,640	1,566,267
Total operating costs and expenses	22,027,194	23,307,507	47,552,378	47,465,882
Operating loss	(247,317)	(1,663,282)	(366,020)	(1,594,949)
Other income	20,395	34,052	46,432	50,031
Financial expense, net	(204,196)	(243,397)	(541,854)	(571,005)
Total other expense	(183,801)	(209,345)	(495,422)	(520,974)
Loss before income tax expense	(431,118)	(1,872,627)	(861,442)	(2,115,923)
Income tax expense	368,827	370,343	582,280	609,724
Net loss	(799,945)	(2,242,970)	(1,443,722)	(2,725,647)
Other comprehensive income (loss), net of income tax:
Foreign currency translation adjustment	(298,043)	628,860	62,055	383,346
Comprehensive loss	$ (1,097,988)	$ (1,614,110)	$ (1,381,667)	$ (2,342,301)
Basic net loss per share (in Dollars per share)	$ (0.03)	$ (0.10)	$ (0.06)	$ (0.12)
Diluted net loss per share (in Dollars per share)	$ (0.03)	$ (0.10)	$ (0.06)	$ (0.12)
Weighted average number of shares used in computing basic net loss per share (in Shares)	25,383,440	23,599,230	25,365,756	23,451,687
Weighted average number of shares used in computing diluted net loss per share (in Shares)	25,383,440	23,599,230	25,365,756	23,451,687

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (1,443,722)	$ (2,725,647)
Adjustments required to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation	868,026	916,218
Amortization of intangible assets	1,466,640	1,566,267
Loss on disposal of assets	0	57,840
Capital gain on sale of property and equipment	0	(895,000)
Stock based compensation	648,487	334,595
Deferred tax provision	379,289	299,250
Changes in operating assets and liabilities:
Trade receivables	1,279,533	2,807,519
Unbilled receivables	4,151,347	3,304,996
Other accounts receivable and prepaid expenses	(1,064,293)	(830,565)
Inventories	(18,417)	(114,667)
Severance pay, net	112,116	93,317
Trade payables	(2,820,561)	(2,248,761)
Other accounts payable and accrued expenses	(163,487)	(3,727,310)
Deferred revenues	(1,133,853)	(2,014,376)
Net cash provided by (used in) operating activities	2,261,105	(3,176,324)
CASH FLOWS FROM INVESTING ACTIVITIES:
Decrease (increase) in restricted collateral deposits	25,813	(2,875)
Purchase of property and equipment	(803,444)	(1,104,344)
Proceeds from sale of property and equipment	0	895,000
Additions to capitalized software	(27,951)	0
Net cash used in investing activities	(805,582)	(212,219)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayment of long term debt	(16,175,141)	(2,441,651)
Proceeds from the issuance of common stock	2,952,999	0
Change in short term bank credit	266,083	6,426,762
Proceeds from long term debt	11,000,000	0
Net cash provided by (used in) financing activities	(1,956,059)	3,985,111
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(500,536)	596,568
CASH DIFFERENCES DUE TO EXCHANGE RATE CHANGES	(211,332)	196,106
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD	10,608,420	11,291,784
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD	9,896,552	12,084,458
SUPPLEMENTARY CASH FLOW INFORMATION
Interest paid during the period	381,609	448,128
Taxes paid on income during the period	$ 60,331	$ 483,147

NOTE 1_ BASIS OF PRESENTATION

NOTE 1: BASIS OF PRESENTATION	6 Months Ended
	Jun. 30, 2016
Accounting Policies [Abstract]
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block]	NOTE 1: 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 advanced zinc-air and lithium batteries and chargers, and multimedia interactive simulators/trainers. The Company operates primarily through its wholly-owned subsidiaries FAAC Incorporated, a Michigan corporation located in Ann Arbor, Michigan (Training and Simulation Division) with locations in Royal Oak, Michigan and Orlando, Florida; Epsilor-Electric Fuel Ltd. ("Epsilor-EFL"), an Israeli corporation located in Beit Shemesh, Israel (between Jerusalem and Tel-Aviv) in Dimona, Israel (in Israel's Negev desert area) and Sderot, Israel (near the Gaza Strip) (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 accompanying interim condensed consolidated financial statements have been prepared by Arotech Corporation in accordance with generally accepted accounting principles for interim financial information, 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. Certain information and footnote disclosures, normally included in complete financial statements prepared in accordance with generally accepted accounting principles, have been condensed or omitted. 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 June 30, 2016, its operating results for the six and three month periods ended June 30, 2016 and 2015, and its cash flows for the six month periods ended June 30, 2016 and 2015. The results of operations for the six and three months ended June 30, 2016 are not necessarily indicative of results that may be expected for any other interim period or for the full fiscal year ending December 31, 2016. The balance sheet at December 31, 2015 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, 2015. c. 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 their carrying value. The Training and Simulation and the Power Systems reporting units have goodwill. As of its last annual impairment test as of December 31, 2015, the Company determined that the goodwill for both reporting units was not impaired. In concluding that goodwill for the Company's Power Systems reporting unit was not impaired at December 31, 2015, the Company determined the fair value of the reporting unit using a discounted cash flow model ("DCF model"). The DCF model includes projections of future cash flows and assumptions in relation to future short-term and long-term growth rates and weighted average cost of capital ("WACC"). Inherent in the valuation at December 31, 2015, were key variables, including the WACC and the terminal growth rates of approximately 12% and 3%, respectively. With all other assumptions remaining constant, if either the WACC increased by 0.5% or the terminal growth rate decreased by 0.5%, the Company may have determined that proceeding to step 2 of the impairment analysis, as indicated in ASC 350-10, was necessary. 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 attributable to the Power Systems reporting unit are impaired. d. Reclassification: Certain comparative data in these financial statements may have been reclassified to conform to the current year's presentation. e. Contingencies The Company is from time to time involved in legal proceedings and other claims. The Company is required to assess the likelihood of any adverse judgments or outcomes to these matters, as well as potential ranges of probable losses. The Company has not made any material changes in the accounting methodology used to establish its self-insured liabilities during the past three fiscal years. A determination of the amount of reserves required, if any, for any contingencies is made after careful analysis of each individual issue. The required reserves may change due to future developments in each matter or changes in approach, such as a change in the settlement strategy in dealing with any contingencies, which may result in higher net loss. f. Certain relationships and related transactions 1. Related party loans 2. Consulting agreement with Sampen Corporation Pursuant to the terms of the Company's amended and restated agreement with Sampen, Sampen provided one of its employees to the Company for such employee to serve as the Company's President and Chief Executive Officer. The Company paid Sampen $8,960 per month, plus an annual bonus, on a sliding scale, in an amount equal to a minimum of 25% of Sampen's annual base compensation then in effect if the results the Company actually attains for the year in question are 100% or more of the amount the Company budgeted at the beginning of the year, up to a maximum of 75% of Sampen's annual base compensation then in effect if the results the Company actually attains for the year in question are 110% or more of the amount the Company budgeted at the beginning of the year. The Company also paid Sampen, to cover the cost of the Company's use of Sampen's offices as an ancillary New York office and the attendant expenses and insurance costs, an amount equal to 16% of each monthly payment of base compensation. The Company terminated the Sampen consulting agreement effective June 30, 2016. 3. Consulting agreement with Admiralty Partners g. Accounting for stock-based compensation: For the three months ended June 30, 2016 and 2015, the compensation expense recorded related to restricted stock units and restricted shares was $156,680 and $175,721, respectively. For the six months ended June 30, 2016 and 2015 the compensation expense recorded related to restricted stock units and restricted shares was $273,486 and $334,595, respectively. The remaining total compensation cost related to share awards not yet recognized in the statements of comprehensive income as of June 30, 2016 was $531,952. The weighted average period over which this compensation cost is expected to be recognized is approximately one and one-half years. Income tax expense was not impacted since the Company is in a net operating loss position. Additionally, on February 2, 2016, the Company and an investor (the "Investor") entered into a Stock Purchase Agreement (the "Investment Agreement") providing for the sale to the Investor of a total of 1,500,000 shares of the Company's common stock at a price valued at $1.99 per share. As the Investor was also given the right to nominate a member of the Board of Directors pursuant to the terms of the Investment Agreement, and the shares were issued at a discount to the then market price, this resulted in additional stock compensation expense of $375,000 recorded in general and administrative expenses in the condensed consolidated statement of comprehensive income. h. Anti-dilutive shares for EPS calculation All contingent and non-vested restricted stock and non-vested restricted stock units have been excluded from the calculation of the basic earnings per common share because all such securities do not participate in losses for the periods presented and have been excluded from the calculation of diluted earnings per common share as the effect would be anti-dilutive. The Company has excluded any restricted stock or restricted stock units that will never vest under the current program. The total weighted average number of shares related to the outstanding options and warrants excluded from the calculations of basic and diluted net income per share for the three and six month periods ended June 30, 2016 and 2015 were 1,050,144 and 1,015,654, respectively.

NOTE 2_ FAIR VALUE MEASUREMENT

NOTE 2: FAIR VALUE MEASUREMENT	6 Months Ended
	Jun. 30, 2016
Fair Value Disclosures [Abstract]
Fair Value Disclosures [Text Block]	NOTE 2: FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS The carrying value of short term assets and liabilities in the accompanying condensed consolidated balance sheets for cash and cash equivalents, restricted collateral deposits, trade receivables, and other assets, trade payables, accrued expenses, and other liabilities as of June 30, 2016 and December 31, 2015, approximate fair value because of the short maturity of these instruments. The carrying amounts of long term debt and contractual severance approximates the estimated fair values at June 30, 2016, based upon the Company's ability to acquire similar debt or fulfill similar obligations at similar maturities.

NOTE 3_ INVENTORIES

NOTE 3: INVENTORIES	6 Months Ended
	Jun. 30, 2016
Inventory Disclosure [Abstract]
Inventory Disclosure [Text Block]	NOTE 3: INVENTORIES Inventories are stated at the lower of cost or market value. Cost is determined using the average cost method or the FIFO method. The Company periodically evaluates the quantities on hand relative to current and historical selling prices and historical and projected sales volume. Based on these evaluations, provisions are made in each period to write down inventory to its net realizable value. Inventory write-offs are provided to cover risks arising from slow-moving items, technological obsolescence, excess inventories, and for market prices lower than cost. Inventories at June 30, 2016 and December 31, 2015 were the following: June 30, 2016 December 31, 2015 (Unaudited) Raw and packaging materials $ 8,432,003 $ 8,184,476 Work in progress 612,885 760,585 Finished products 628,344 662,775 Total: $ 9,673,232 $ 9,607,836

NOTE 4_ SEGMENT INFORMATION

NOTE 4: SEGMENT INFORMATION	6 Months Ended
	Jun. 30, 2016
Segment Reporting [Abstract]
Segment Reporting Disclosure [Text Block]	NOTE 4: SEGMENT INFORMATION a. The Company and its subsidiaries operate primarily in three business segments and follow the requirements of FASB ASC 280-10. Additionally, the three segments are also treated by the Company as reporting units for goodwill impairment evaluation purposes under FASB ASC 350-20-35. The goodwill amounts associated with the Training and Simulation Division and the Power Systems Division was determined and valued when the specific businesses in the reportable segment were purchased. Subsequent to December 31, 2015, the Company reassessed its reportable segments and established a third reportable segment herein referred to as the Flow Battery Division. The Flow Battery Division is a research and development operating segment with the purpose of developing an iron flow battery for power grid storage. The Flow Battery Division was previously accounted within the Power Systems Division. No goodwill has been allocated to this reportable segment as the relative fair value was determined to be zero. The Company's reportable operating 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 operating segments are the same as those used by the Company in the preparation of its annual financial statements. The Company evaluates performance based upon two primary factors, one is the segment's operating income or loss and the other is the segment's contribution to the Company's future strategic growth. b. The following is information about reported segment revenues, income (losses) and total assets for the six and three months ended June 30, 2016 and 2015: Training and Simulation Division Power Systems Division Flow Battery Division Corporate Expenses Total Company Six months ended June 30, 2016 Revenues from outside customers $ 24,647,137 $ 22,539,221 $ – $ – $ 47,186,358 Depreciation, amortization and impairment expenses (1) (549,027 ) (1,775,382 ) – (10,257 ) (2,334,666 ) Direct expenses (2) (20,422,716 ) (20,765,715 ) (492,485 ) (3,490,364 ) (45,171,280 ) Segment net income (loss) $ 3,675,394 $ (1,876 ) $ (492,485 ) $ (3,500,621 ) $ (319,588 ) Financial income (expense) (14,811 ) (35,027 ) – (492,016 ) (541,854 ) Income tax expense (93,630 ) (109,361 ) – (379,289 ) (582,280 ) Net income (loss) $ 3,566,953 $ (146,264 ) $ (492,485 ) $ (4,371,926 ) $ (1,443,722 ) Segment assets (3) $ 43,752,823 $ 59,158,134 $ – $ 8,450,523 $ 111,361,480 Additions to long-lived assets $ 165,066 $ 666,329 $ – $ – $ 831,395 Six months ended June 30, 2015 Revenues from outside customers $ 26,322,683 $ 19,548,250 $ – $ – $ 45,870,933 Depreciation, amortization and impairment expenses (1) (415,021 ) (2,055,058 ) – (12,406 ) (2,482,485 ) Direct expenses (2) (22,028,902 ) (20,418,131 ) (328,108 ) (2,158,225 ) (44,933,366 ) Segment net income (loss) $ 3,878,760 $ (2,924,939 ) $ (328,108 ) $ (2,170,631 ) $ (1,544,918 ) Financial income (expense) (24,841 ) 14,194 – (560,358 ) (571,005 ) Income tax expense (178,476 ) – – (431,248 ) (609,724 ) Net income (loss) $ 3,675,443 $ (2,910,745 ) $ (328,108 ) $ (3,162,237 ) $ (2,725,647 ) Segment assets (3) $ 58,443,856 $ 60,477,131 $ – $ 518,594 $ 119,439,581 Additions to long-lived assets $ 398,114 $ 701,728 $ – $ 4,502 $ 1,104,344 Three months ended June 30, 2016 Revenues from outside customers $ 11,346,295 $ 10,433,582 $ – $ – $ 21,779,877 Depreciation, amortization and impairment expenses (1) (276,367 ) (874,491 ) – (8,770 ) (1,159,628 ) Direct expenses (2) (9,494,982 ) (9,664,106 ) (230,839 ) (1,457,244 ) (20,847,171 ) Segment net income (loss) $ 1,574,946 $ (105,015 ) $ (230,839 ) $ (1,466,014 ) $ (226,922 ) Financial income (expense) (3,750 ) (5,973 ) – (194,473 ) (204,196 ) Income tax expense (30,830 ) (109,361 ) – (228,636 ) (368,827 ) Net income (loss) $ 1,540,366 $ (220,349 ) $ (230,839 ) $ (1,889,123 ) $ (799,945 ) Three months ended June 30, 2015 Revenues from outside customers $ 12,884,561 $ 8,759,664 $ – $ – $ 21,644,225 Depreciation, amortization and impairment expenses (1) (207,845 ) (928,470 ) – (5,937 ) (1,142,252 ) Direct expenses (2) (10,297,257 ) (10,040,544 ) (147,081 ) (1,646,321 ) (22,131,203 ) Segment net income (loss) $ 2,379,459 $ (2,209,350 ) $ (147,081 ) $ (1,652,258 ) $ (1,629,230 ) Financial income (expense) (13,226 ) 38,824 – (268,995 ) (243,397 ) Income tax expense (151,219 ) – – (219,124 ) (370,343 ) Net income (loss) $ 2,215,014 $ (2,170,526 ) $ (147,081 ) $ (2,140,377 ) $ (2,242,970 ) (1) Includes depreciation of property and equipment and amortization expenses of intangible assets. (2) Including, inter alia (3) Out of those amounts, goodwill in the Company's Training and Simulation and Power Systems Divisions totaled $24,435,641 and $21,052,329, respectively, as of June 30, 2016 and $24,435,641 and $21,173,818, respectively, as of June 30, 2015. There was no goodwill as of either date in the Flow Battery Division.

NOTE 5_ BANK FINANCING

NOTE 5: BANK FINANCING	6 Months Ended
	Jun. 30, 2016
Debt Disclosure [Abstract]
Debt Disclosure [Text Block]	NOTE 5: 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 $10,000,000 Term Loan (the "Term Loan"), and (iii) a $1,000,000 Mortgage Loan (the "Mortgage Loan" and, together with the Revolver and the Term Loan, the "Credit Facilities") in respect of certain property located in Ann Arbor, Michigan. The maturity of the Revolver is March 11, 2021. The Revolver maintains an interest rate on a scale ranging from LIBOR plus 1.75% up to LIBOR plus 3.00%. The balance at June 30, 2016 and December 31, 2015 was $4,326,083 and $4,060,000, respectively. The maturity of the Term Loan is March 11, 2021. The Term Loan maintains an interest rate on a scale ranging from LIBOR plus 2.0% up to LIBOR plus 3.25%. The repayment of the Term Loan will consist of 60 consecutive monthly payments of principal plus accrued interest based on annual principal reductions of 10% during the first year, 20% during the second through fourth years, and 30% during the fifth year. The balance at June 30, 2016 and December 31, 2015 was $9,750,000 and $15,316,046, respectively. The maturity of the Mortgage Loan is March 11, 2021 and maintains an interest rate on a scale identical to the Term Loan. The monthly payments on the Mortgage Loan are $5,555 in principal plus accrued interest, with a balloon payment due at the end of month 60. The balance at June 30, 2016 and December 31, 2015 was $1,000,000 and $902,914, respectively. The Credit Facilities maintain certain reporting requirements, conditions precedent, affirmative covenants and financial covenants. Effective for the quarterly reporting period ended June 30, 2016, the Company is required to maintain certain financial covenants that include a Maximum Debt to EBITDA ratio of 3.00 to 1.00 and a Minimum Fixed Charge Coverage Ratio of 1.20 to 1.00. The Company was in compliance with its covenants as of June 30, 2016. The Credit Facilities are secured by the Company's assets and the assets of the Company's subsidiaries.

NOTE 6_ COMMON STOCK REPURCHASE

NOTE 6: COMMON STOCK REPURCHASE PROGRAM	6 Months Ended
	Jun. 30, 2016
Stock Repurchase Disclosure [Abstract]
Stock Repurchase Disclosure [Text Block]	NOTE 6: COMMON STOCK REPURCHASE PROGRAM In February 2009, the Company's Board of Directors authorized the repurchase in the open market or in privately negotiated transactions of up to $1.0 million of the Company's common stock. The repurchase program was extended to August 2016 and the authorization expanded to repurchase up to $2.0 million of the Company's common stock. Through June 30, 2016, the Company repurchased an aggregate of 738,611 shares of its common stock for a total of $1,084,060, net of commissions. There were no shares repurchased during the six or three months ended June 30, 2016. The program is subject to the discretion of the Company's management.

NOTE 7_ SALE OF BUILDING

NOTE 7: SALE OF BUILDING	6 Months Ended
	Jun. 30, 2016
Discontinued Operations and Disposal Groups [Abstract]
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]	NOTE 7: SALE OF BUILDING In March 2007, the Company purchased 16,700 square feet of space for the now-discontinued Armor Division in Auburn, Alabama for approximately $1.1 million pursuant to a seller-financed secured purchase money mortgage. Half of the mortgage was payable over ten years in equal monthly installments based on a 20-year amortization of the full principal amount, and the remaining half was payable at the end of ten years in a balloon payment. The building was leased to a third party and was listed for sale with a local real estate agent. Additionally, the carrying value of this property was written down to zero as part of the 2011 Armor Division impairment. On February 9, 2015, the Company sold the building to the current tenant for $925,000, resulting in a gain, net of fees, of $895,000 which was recorded in general and administrative expenses on the condensed consolidated statement of comprehensive income. On that same date, the existing mortgage and existing building sub lease were terminated which ended any obligation the Company had for this property.

NOTE 8_ IMPACT OF RECENTLY ISSU

NOTE 8: IMPACT OF RECENTLY ISSUED ACCOUNTING STANDARDS	6 Months Ended
	Jun. 30, 2016
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
New Accounting Pronouncements and Changes in Accounting Principles [Text Block]	NOTE 8: IMPACT OF RECENTLY ISSUED ACCOUNTING STANDARDS In August 2015, the Financial Accounting Standards Board ("FASB") issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date Revenue from Contracts with Customers (Topic 606) In February 2016, the FASB issued ASU No. 2016-02, Leases In March 2016, the FASB issued ASU No. 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting For information about previous new accounting pronouncements and the potential impact on the Company's Consolidated Financial Statements, see Note 2 of the Notes to Consolidated Financial Statements in the Company's 2015 Form 10-K.

Accounting Policies, by Policy

Accounting Policies, by Policy (Policies)	6 Months Ended
	Jun. 30, 2016
Accounting Policies [Abstract]
Basis of Accounting, Policy [Policy Text Block]	Basis of presentation: The accompanying interim condensed consolidated financial statements have been prepared by Arotech Corporation in accordance with generally accepted accounting principles for interim financial information, 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. Certain information and footnote disclosures, normally included in complete financial statements prepared in accordance with generally accepted accounting principles, have been condensed or omitted. 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 June 30, 2016, its operating results for the six and three month periods ended June 30, 2016 and 2015, and its cash flows for the six month periods ended June 30, 2016 and 2015. The results of operations for the six and three months ended June 30, 2016 are not necessarily indicative of results that may be expected for any other interim period or for the full fiscal year ending December 31, 2016. The balance sheet at December 31, 2015 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, 2015.
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block]	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 their carrying value. The Training and Simulation and the Power Systems reporting units have goodwill. As of its last annual impairment test as of December 31, 2015, the Company determined that the goodwill for both reporting units was not impaired. In concluding that goodwill for the Company's Power Systems reporting unit was not impaired at December 31, 2015, the Company determined the fair value of the reporting unit using a discounted cash flow model ("DCF model"). The DCF model includes projections of future cash flows and assumptions in relation to future short-term and long-term growth rates and weighted average cost of capital ("WACC"). Inherent in the valuation at December 31, 2015, were key variables, including the WACC and the terminal growth rates of approximately 12% and 3%, respectively. With all other assumptions remaining constant, if either the WACC increased by 0.5% or the terminal growth rate decreased by 0.5%, the Company may have determined that proceeding to step 2 of the impairment analysis, as indicated in ASC 350-10, was necessary. 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 attributable to the Power Systems reporting unit are impaired.
Reclassification, Policy [Policy Text Block]	Reclassification: Certain comparative data in these financial statements may have been reclassified to conform to the current year's presentation.
Commitments and Contingencies, Policy [Policy Text Block]	Contingencies The Company is from time to time involved in legal proceedings and other claims. The Company is required to assess the likelihood of any adverse judgments or outcomes to these matters, as well as potential ranges of probable losses. The Company has not made any material changes in the accounting methodology used to establish its self-insured liabilities during the past three fiscal years. A determination of the amount of reserves required, if any, for any contingencies is made after careful analysis of each individual issue. The required reserves may change due to future developments in each matter or changes in approach, such as a change in the settlement strategy in dealing with any contingencies, which may result in higher net loss.
Related Party Policy [Policy Text Block]	Certain relationships and related transactions 1. Related party loans 2. Consulting agreement with Sampen Corporation Pursuant to the terms of the Company's amended and restated agreement with Sampen, Sampen provided one of its employees to the Company for such employee to serve as the Company's President and Chief Executive Officer. The Company paid Sampen $8,960 per month, plus an annual bonus, on a sliding scale, in an amount equal to a minimum of 25% of Sampen's annual base compensation then in effect if the results the Company actually attains for the year in question are 100% or more of the amount the Company budgeted at the beginning of the year, up to a maximum of 75% of Sampen's annual base compensation then in effect if the results the Company actually attains for the year in question are 110% or more of the amount the Company budgeted at the beginning of the year. The Company also paid Sampen, to cover the cost of the Company's use of Sampen's offices as an ancillary New York office and the attendant expenses and insurance costs, an amount equal to 16% of each monthly payment of base compensation. The Company terminated the Sampen consulting agreement effective June 30, 2016. 3. Consulting agreement with Admiralty Partners
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block]	Accounting for stock-based compensation: For the three months ended June 30, 2016 and 2015, the compensation expense recorded related to restricted stock units and restricted shares was $156,680 and $175,721, respectively. For the six months ended June 30, 2016 and 2015 the compensation expense recorded related to restricted stock units and restricted shares was $273,486 and $334,595, respectively. The remaining total compensation cost related to share awards not yet recognized in the statements of comprehensive income as of June 30, 2016 was $531,952. The weighted average period over which this compensation cost is expected to be recognized is approximately one and one-half years. Income tax expense was not impacted since the Company is in a net operating loss position. Additionally, on February 2, 2016, the Company and an investor (the "Investor") entered into a Stock Purchase Agreement (the "Investment Agreement") providing for the sale to the Investor of a total of 1,500,000 shares of the Company's common stock at a price valued at $1.99 per share. As the Investor was also given the right to nominate a member of the Board of Directors pursuant to the terms of the Investment Agreement, and the shares were issued at a discount to the then market price, this resulted in additional stock compensation expense of $375,000 recorded in general and administrative expenses in the condensed consolidated statement of comprehensive income.
Earnings Per Share, Policy [Policy Text Block]	Anti-dilutive shares for EPS calculation All contingent and non-vested restricted stock and non-vested restricted stock units have been excluded from the calculation of the basic earnings per common share because all such securities do not participate in losses for the periods presented and have been excluded from the calculation of diluted earnings per common share as the effect would be anti-dilutive. The Company has excluded any restricted stock or restricted stock units that will never vest under the current program. The total weighted average number of shares related to the outstanding options and warrants excluded from the calculations of basic and diluted net income per share for the three and six month periods ended June 30, 2016 and 2015 were 1,050,144 and 1,015,654, respectively.

NOTE 3_ INVENTORIES (Tables)

NOTE 3: INVENTORIES (Tables)	6 Months Ended
	Jun. 30, 2016
Inventory Disclosure [Abstract]
Schedule of Inventory, Current [Table Text Block]	Inventories at June 30, 2016 and December 31, 2015 were the following: June 30, 2016 December 31, 2015 (Unaudited) Raw and packaging materials $ 8,432,003 $ 8,184,476 Work in progress 612,885 760,585 Finished products 628,344 662,775 Total: $ 9,673,232 $ 9,607,836

NOTE 4_ SEGMENT INFORMATION (Ta

NOTE 4: SEGMENT INFORMATION (Tables)	6 Months Ended
	Jun. 30, 2016
Segment Reporting [Abstract]
Schedule of Segment Reporting Information, by Segment [Table Text Block]	The following is information about reported segment revenues, income (losses) and total assets for the six and three months ended June 30, 2016 and 2015: Training and Simulation Division Power Systems Division Flow Battery Division Corporate Expenses Total Company Six months ended June 30, 2016 Revenues from outside customers $ 24,647,137 $ 22,539,221 $ – $ – $ 47,186,358 Depreciation, amortization and impairment expenses (1) (549,027 ) (1,775,382 ) – (10,257 ) (2,334,666 ) Direct expenses (2) (20,422,716 ) (20,765,715 ) (492,485 ) (3,490,364 ) (45,171,280 ) Segment net income (loss) $ 3,675,394 $ (1,876 ) $ (492,485 ) $ (3,500,621 ) $ (319,588 ) Financial income (expense) (14,811 ) (35,027 ) – (492,016 ) (541,854 ) Income tax expense (93,630 ) (109,361 ) – (379,289 ) (582,280 ) Net income (loss) $ 3,566,953 $ (146,264 ) $ (492,485 ) $ (4,371,926 ) $ (1,443,722 ) Segment assets (3) $ 43,752,823 $ 59,158,134 $ – $ 8,450,523 $ 111,361,480 Additions to long-lived assets $ 165,066 $ 666,329 $ – $ – $ 831,395 Six months ended June 30, 2015 Revenues from outside customers $ 26,322,683 $ 19,548,250 $ – $ – $ 45,870,933 Depreciation, amortization and impairment expenses (1) (415,021 ) (2,055,058 ) – (12,406 ) (2,482,485 ) Direct expenses (2) (22,028,902 ) (20,418,131 ) (328,108 ) (2,158,225 ) (44,933,366 ) Segment net income (loss) $ 3,878,760 $ (2,924,939 ) $ (328,108 ) $ (2,170,631 ) $ (1,544,918 ) Financial income (expense) (24,841 ) 14,194 – (560,358 ) (571,005 ) Income tax expense (178,476 ) – – (431,248 ) (609,724 ) Net income (loss) $ 3,675,443 $ (2,910,745 ) $ (328,108 ) $ (3,162,237 ) $ (2,725,647 ) Segment assets (3) $ 58,443,856 $ 60,477,131 $ – $ 518,594 $ 119,439,581 Additions to long-lived assets $ 398,114 $ 701,728 $ – $ 4,502 $ 1,104,344 Three months ended June 30, 2016 Revenues from outside customers $ 11,346,295 $ 10,433,582 $ – $ – $ 21,779,877 Depreciation, amortization and impairment expenses (1) (276,367 ) (874,491 ) – (8,770 ) (1,159,628 ) Direct expenses (2) (9,494,982 ) (9,664,106 ) (230,839 ) (1,457,244 ) (20,847,171 ) Segment net income (loss) $ 1,574,946 $ (105,015 ) $ (230,839 ) $ (1,466,014 ) $ (226,922 ) Financial income (expense) (3,750 ) (5,973 ) – (194,473 ) (204,196 ) Income tax expense (30,830 ) (109,361 ) – (228,636 ) (368,827 ) Net income (loss) $ 1,540,366 $ (220,349 ) $ (230,839 ) $ (1,889,123 ) $ (799,945 ) Three months ended June 30, 2015 Revenues from outside customers $ 12,884,561 $ 8,759,664 $ – $ – $ 21,644,225 Depreciation, amortization and impairment expenses (1) (207,845 ) (928,470 ) – (5,937 ) (1,142,252 ) Direct expenses (2) (10,297,257 ) (10,040,544 ) (147,081 ) (1,646,321 ) (22,131,203 ) Segment net income (loss) $ 2,379,459 $ (2,209,350 ) $ (147,081 ) $ (1,652,258 ) $ (1,629,230 ) Financial income (expense) (13,226 ) 38,824 – (268,995 ) (243,397 ) Income tax expense (151,219 ) – – (219,124 ) (370,343 ) Net income (loss) $ 2,215,014 $ (2,170,526 ) $ (147,081 ) $ (2,140,377 ) $ (2,242,970 ) (1) Includes depreciation of property and equipment and amortization expenses of intangible assets. (2) Including, inter alia (3) Out of those amounts, goodwill in the Company's Training and Simulation and Power Systems Divisions totaled $24,435,641 and $21,052,329, respectively, as of June 30, 2016 and $24,435,641 and $21,173,818, respectively, as of June 30, 2015. There was no goodwill as of either date in the Flow Battery Division.

NOTE 1_ BASIS OF PRESENTATION (

NOTE 1: BASIS OF PRESENTATION (Details) - USD ($)	Feb. 02, 2016	Feb. 09, 2009	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
NOTE 1: BASIS OF PRESENTATION (Details) [Line Items]
Fair Value Inputs, Weighted Average Cost of Capital					12.00%
Fair Value Inputs, Long-term Revenue Growth Rate					3.00%
Goodwill Impairment, Increase of Weighted Average Cost of Capital					0.50%
Goodwill Impairment, Decrease in Growth Rate					0.50%
Receivable from Shareholders or Affiliates for Issuance of Capital Stock			$ 908,054		$ 908,054		$ 908,054
Share-based Compensation	$ 375,000				648,487	$ 334,595
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized			$ 531,952		$ 531,952
Stock Issued During Period, Shares, New Issues (in Shares)	1,500,000
Sale of Stock, Price Per Share (in Dollars per share)	$ 1.99
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in Shares)			1,050,144	1,050,144	1,015,654	1,015,654
Restricted Stock [Member]
NOTE 1: BASIS OF PRESENTATION (Details) [Line Items]
Share-based Compensation			$ 156,680	$ 175,721	$ 273,486	$ 334,595
Chief Executive Officer [Member]
NOTE 1: BASIS OF PRESENTATION (Details) [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period (in Shares)		9,404
Debt Instrument, Maturity Date, Description		due in 2025
Debt Instrument, Face Amount		$ 329,163
Debt Instrument, Interest Rate Terms		1% over the then-current federal funds rate announced from time to time by the Wall Street Journal
Debt Instrument, Collateral		secured by the shares of the Company's common stock acquired through the exercise of the options and certain compensation due to this officer upon termination
Officer [Member]
NOTE 1: BASIS OF PRESENTATION (Details) [Line Items]
Receivable from Shareholders or Affiliates for Issuance of Capital Stock			482,461		482,461		$ 452,995
Former Employee [Member]
NOTE 1: BASIS OF PRESENTATION (Details) [Line Items]
Receivable from Shareholders or Affiliates for Issuance of Capital Stock			$ 455,059		$ 455,059
Immediate Family Member of Management or Principal Owner [Member]
NOTE 1: BASIS OF PRESENTATION (Details) [Line Items]
Related Party Transaction, Description of Transaction					$8,960 per month, plus an annual bonus, on a sliding scale, in an amount equal to a minimum of 25% of Sampen's annual base compensation then in effect if the results the Company actually attains for the year in question are 100% or more of the amount the Company budgeted at the beginning of the year, up to a maximum of 75% of Sampen's annual base compensation then in effect if the results the Company actually attains for the year in question are 110% or more of the amount the Company budgeted at the beginning of the year.
Affiliated Entity [Member]
NOTE 1: BASIS OF PRESENTATION (Details) [Line Items]
Related Party Transaction, Description of Transaction					On February 3, 2016, the Company entered into a consulting agreement with Admiralty Partners, a business controlled by a member of the Board of Directors, for a period of three years. In exchange, the Company will pay an annual fee equal to the difference between total accrued compensation of the Board member and $125,000. The agreement can be terminated by either party upon sufficient written notice.
Related Party Transaction, Amounts of Transaction					$ 125,000

NOTE 3_ IN

NOTE 3: INVENTORIES (Details) - Schedule of Inventory - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Schedule of Inventory [Abstract]
Raw and packaging materials	$ 8,432,003	$ 8,184,476
Work in progress	612,885	760,585
Finished products	628,344	662,775
Total:	$ 9,673,232	$ 9,607,836

NOTE 4_ SEGMENT INFORMATION (De

NOTE 4: SEGMENT INFORMATION (Details) - USD ($)	Jun. 30, 2016	Dec. 31, 2015	Jun. 30, 2015
NOTE 4: SEGMENT INFORMATION (Details) [Line Items]
Goodwill	$ 45,487,970	$ 45,463,027
Training and Simulation Division [Member]
NOTE 4: SEGMENT INFORMATION (Details) [Line Items]
Goodwill	24,435,641		$ 24,435,641
Power Systems Division [Member]
NOTE 4: SEGMENT INFORMATION (Details) [Line Items]
Goodwill	$ 21,052,329		$ 21,173,818

NOTE 4_ SE

NOTE 4: SEGMENT INFORMATION (Details) - Schedule of Segment Reporting Information - USD ($)		3 Months Ended			6 Months Ended
		Jun. 30, 2016	Jun. 30, 2015		Jun. 30, 2016		Jun. 30, 2015	Dec. 31, 2015
Segment Reporting Information [Line Items]
Revenues from outside customers		$ 21,779,877	$ 21,644,225		$ 47,186,358		$ 45,870,933
Depreciation and amortization expense(1)		(1,159,628)	(1,142,252)		(2,334,666)		(2,482,485)
Direct expenses(2)		(20,847,171)	(22,131,203)		(45,171,280)		(44,933,366)
Segment net income (loss)		(226,922)	(1,629,230)		(319,588)		(1,544,918)
Financial income (expense)		(204,196)	(243,397)		(541,854)		(571,005)
Income tax expense		(368,827)	(370,343)		(582,280)		(609,724)
Net income (loss)		(799,945)	(2,242,970)		(1,443,722)		(2,725,647)
Segment assets(3)		111,361,480	119,439,581		111,361,480		119,439,581	$ 117,493,016
Additions to long-lived assets					831,395		1,104,344
Training and Simulation Division [Member]
Segment Reporting Information [Line Items]
Revenues from outside customers		11,346,295	12,884,561		24,647,137		26,322,683
Depreciation and amortization expense(1)		(276,367)	(207,845)	[1]	(549,027)	[1]	(415,021)
Direct expenses(2)		(9,494,982)	(10,297,257)	[2]	(20,422,716)	[2]	(22,028,902)
Segment net income (loss)		1,574,946	2,379,459		3,675,394		3,878,760
Financial income (expense)		(3,750)	(13,226)		(14,811)		(24,841)
Income tax expense		(30,830)	(151,219)		(93,630)		(178,476)
Net income (loss)		1,540,366	2,215,014		3,566,953		3,675,443
Segment assets(3)	[3]	43,752,823	58,443,856		43,752,823		58,443,856
Additions to long-lived assets					165,066		398,114
Power Systems Division [Member]
Segment Reporting Information [Line Items]
Revenues from outside customers		10,433,582	8,759,664		22,539,221		19,548,250
Depreciation and amortization expense(1)		(874,491)	(928,470)	[1]	(1,775,382)	[1]	(2,055,058)
Direct expenses(2)		(9,664,106)	(10,040,544)	[2]	(20,765,715)	[2]	(20,418,131)
Segment net income (loss)		(105,015)	(2,209,350)		(1,876)		(2,924,939)
Financial income (expense)		(5,973)	38,824		(35,027)		14,194
Income tax expense		(109,361)	0		(109,361)		0
Net income (loss)		(220,349)	(2,170,526)		(146,264)		(2,910,745)
Segment assets(3)	[3]	59,158,134	60,477,131		59,158,134		60,477,131
Additions to long-lived assets					666,329		701,728
Flow Battery Division [Member]
Segment Reporting Information [Line Items]
Revenues from outside customers		0	0		0		0
Depreciation and amortization expense(1)		0	0	[1]	0	[1]	0
Direct expenses(2)		(230,839)	(147,081)	[2]	(492,485)	[2]	(328,108)
Segment net income (loss)		(230,839)	(147,081)		(492,485)		(328,108)
Financial income (expense)		0	0		0		0
Income tax expense		0	0		0		0
Net income (loss)		(230,839)	(147,081)		(492,485)		(328,108)
Segment assets(3)	[3]	0	0		0		0
Additions to long-lived assets					0		0
Corporate Segment [Member]
Segment Reporting Information [Line Items]
Revenues from outside customers		0	0		0		0
Depreciation and amortization expense(1)		(8,770)	(5,937)	[1]	(10,257)	[1]	(12,406)
Direct expenses(2)		(1,457,244)	(1,646,321)	[2]	(3,490,364)	[2]	(2,158,225)
Segment net income (loss)		(1,466,014)	(1,652,258)		(3,500,621)		(2,170,631)
Financial income (expense)		(194,473)	(268,995)		(492,016)		(560,358)
Income tax expense		(228,636)	(219,124)		(379,289)		(431,248)
Net income (loss)		(1,889,123)	(2,140,377)		(4,371,926)		(3,162,237)
Segment assets(3)	[3]	$ 8,450,523	$ 518,594		8,450,523		518,594
Additions to long-lived assets					$ 0		$ 4,502
[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 and Power Systems Divisions totaled $24,435,641 and $21,052,329, respectively, as of June 30, 2016 and $24,435,641 and $21,173,818, respectively, as of June 30, 2015. There was no goodwill as of either date in the Flow Battery Division.

NOTE 5_ BANK FINANCING (Details

NOTE 5: BANK FINANCING (Details) - USD ($)	6 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
NOTE 5: BANK FINANCING (Details) [Line Items]
Short-term Debt	$ 4,326,083	$ 4,060,000
Other Long-term Debt, Noncurrent	9,656,601	11,856,522
Notes Payable to Banks [Member]
NOTE 5: BANK FINANCING (Details) [Line Items]
Debt Instrument, Face Amount	$ 10,000,000
Debt Instrument, Maturity Date	Mar. 11, 2021
Debt Instrument, Payment Terms	The repayment of the Term Loan will consist of 60 consecutive monthly payments of principal plus accrued interest based on annual principal reductions of 10% during the first year, 20% during the second through fourth years, and 30% during the fifth year.
Other Long-term Debt, Noncurrent	$ 9,750,000	15,316,046
Mortgages [Member]
NOTE 5: BANK FINANCING (Details) [Line Items]
Debt Instrument, Face Amount	$ 1,000,000
Debt Instrument, Maturity Date	Mar. 11, 2021
Debt Instrument, Payment Terms	The monthly payments on the Mortgage Loan are $5,555 in principal plus accrued interest, with a balloon payment due at the end of month 60.
Other Long-term Debt, Noncurrent	$ 1,000,000	$ 902,914
Debt Instrument, Periodic Payment, Principal	$ 5,555
Minimum [Member] | Notes Payable to Banks [Member] | London Interbank Offered Rate (LIBOR) [Member]
NOTE 5: BANK FINANCING (Details) [Line Items]
Debt Instrument, Basis Spread on Variable Rate	2.00%
Maximum [Member] | Notes Payable to Banks [Member] | London Interbank Offered Rate (LIBOR) [Member]
NOTE 5: BANK FINANCING (Details) [Line Items]
Debt Instrument, Basis Spread on Variable Rate	3.25%
Revolving Credit Facility [Member]
NOTE 5: BANK FINANCING (Details) [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	$ 15,000,000
Line of Credit Facility, Expiration Date	Mar. 11, 2021
Line of Credit Facility, Covenant Terms	The Credit Facilities maintain certain reporting requirements, conditions precedent, affirmative covenants and financial covenants. Effective for the quarterly reporting period ended June 30, 2016, the Company is required to maintain certain financial covenants that include a Maximum Debt to EBITDA ratio of 3.00 to 1.00 and a Minimum Fixed Charge Coverage Ratio of 1.20 to 1.00.
Line of Credit Facility, Collateral	The Credit Facilities are secured by the Company's assets and the assets of the Company's subsidiaries.
Revolving Credit Facility [Member] | Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member]
NOTE 5: BANK FINANCING (Details) [Line Items]
Debt Instrument, Basis Spread on Variable Rate	1.75%
Revolving Credit Facility [Member] | Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member]
NOTE 5: BANK FINANCING (Details) [Line Items]
Debt Instrument, Basis Spread on Variable Rate	3.00%

NOTE 6_ COMMON STOCK REPURCHA22

NOTE 6: COMMON STOCK REPURCHASE PROGRAM (Details) - USD ($)	3 Months Ended	6 Months Ended	89 Months Ended
	Jun. 30, 2016	Jun. 30, 2016	Jun. 30, 2016	Feb. 28, 2009
Stock Repurchase Disclosure [Abstract]
Stock Repurchase Program, Authorized Amount	$ 2,000,000	$ 2,000,000	$ 2,000,000	$ 1,000,000
Stock Repurchase Program Expiration Date		August 2,016
Stock Repurchased During Period, Shares	0	0	738,611
Stock Repurchased During Period, Value			$ 1,084,060

NOTE 7_ SALE OF BUILDING (Detai

NOTE 7: SALE OF BUILDING (Details)	Feb. 09, 2015USD ($)	Mar. 31, 2007USD ($)ft²	Jun. 30, 2016USD ($)	Jun. 30, 2015USD ($)	Mar. 31, 2011USD ($)
NOTE 7: SALE OF BUILDING (Details) [Line Items]
Proceeds from Sale of Property, Plant, and Equipment			$ 0	$ 895,000
Gain (Loss) on Disposition of Property Plant Equipment	$ 895,000		$ 0	$ 895,000
Building [Member]
NOTE 7: SALE OF BUILDING (Details) [Line Items]
Area of Real Estate Property (in Square Feet) | ft²		16,700
Payments to Acquire Property, Plant, and Equipment		$ 1,100,000
Debt Instrument, Payment Terms		Half of the mortgage was payable over ten years in equal monthly installments based on a 20-year amortization of the full principal amount, and the remaining half was payable at the end of ten years in a balloon payment.
Property, Plant and Equipment, Gross					$ 0
Proceeds from Sale of Property, Plant, and Equipment	$ 925,000