Taitron Components (TAIT) 10-Q 14 Aug 18 2018 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	6 Months Ended
	Jun. 30, 2018	Jul. 31, 2018
Document Information [Line Items]
Entity Registrant Name	TAITRON COMPONENTS INC
Document Type	10-Q
Current Fiscal Year End Date	--12-31
Amendment Flag	false
Entity Central Index Key	942,126
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Smaller Reporting Company
Entity Well-known Seasoned Issuer	No
Document Period End Date	Jun. 30, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q2
Common Class B [Member]
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		762,612
Common Class A [Member]
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		4,843,235

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Current Assets:
Cash and cash equivalents	$ 3,277,000	$ 3,250,000
Accounts receivable, less allowances of $43,000 and $40,000, respectively	1,359,000	978,000
Inventories, less reserves for obsolescence of $7,946,000, and $7,848,000, respectively (Note 2)	4,546,000	4,990,000
Prepaid expenses and other current assets	110,000	80,000
Total current assets	9,292,000	9,298,000
Property and equipment, net	3,790,000	3,866,000
Other assets (Note 3)	258,000	403,000
Total assets	13,340,000	13,567,000
Current Liabilities:
Accounts payable	986,000	848,000
Accrued liabilities	290,000	358,000
Total current liabilities	1,276,000	1,206,000
Long-term debt from related party (Note 4)	0	500,000
Total Liabilities	1,276,000	1,706,000
Commitments and contingencies (Notes 5 and 7)
Shareholders’ Equity:
Preferred stock, $0.001 par value. Authorized 5,000,000 shares; None issued or outstanding	0	0
Additional paid-in capital	10,764,000	10,744,000
Accumulated other comprehensive income	146,000	144,000
Retained earnings	1,051,000	867,000
Total Shareholders’ Equity - Taitron Components Inc	11,967,000	11,761,000
Noncontrolling interest in subsidiary	97,000	100,000
Total Shareholders’ Equity	12,064,000	11,861,000
Total Liabilities and Shareholders’ Equity	13,340,000	13,567,000
Common Class A [Member]
Shareholders’ Equity:
Common Stock, value, issued	5,000	5,000
Common Class B [Member]
Shareholders’ Equity:
Common Stock, value, issued	$ 1,000	$ 1,000

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parentheticals) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Accounts receivable, allowances (in Dollars)	$ 43,000	$ 40,000
Inventories, reserves for obsolescence (in Dollars)	$ 7,946,000	$ 7,848,000
Preferred stock, par value (in Dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common Class A [Member]
Common stock par value (in Dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	20,000,000	20,000,000
Common stock, shares issued	4,828,235	4,808,235
Common stock, shares outstanding	4,828,235	4,808,235
Common Class B [Member]
Common stock par value (in Dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	762,612	762,612
Common stock, shares issued	762,612	762,612
Common stock, shares outstanding	762,612	762,612

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations and Comprehensive Income - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Net product revenue	$ 2,150,000	$ 1,773,000	$ 3,805,000	$ 3,940,000
Cost of products sold	1,171,000	1,016,000	2,172,000	2,310,000
Gross profit	979,000	757,000	1,633,000	1,630,000
Selling, general and administrative expenses	550,000	542,000	1,110,000	1,082,000
Operating income	429,000	215,000	523,000	548,000
Interest income (expense), net	2,000	(11,000)	(4,000)	(20,000)
Loss on investments (Note 3)	(60,000)	(19,000)	(135,000)	(73,000)
Other income, net	29,000	31,000	77,000	60,000
Income before income taxes	400,000	216,000	461,000	515,000
Income tax provision	(1,000)	(1,000)	(3,000)	(1,000)
Net income	399,000	215,000	458,000	514,000
Net loss attributable to noncontrolling interest in subsidiary	(2,000)	(2,000)	(4,000)	(3,000)
Net income attributable to Taitron Components Inc.	$ 401,000	$ 217,000	$ 462,000	$ 517,000
Net income per share: Basic (in Dollars per share)	$ 0.07	$ 0.04	$ 0.08	$ 0.09
Net income per share: Diluted (in Dollars per share)	0.07	0.04	0.08	0.09
Cash dividends declared per common share (in Dollars per share)	$ 0.025	$ 0.025	$ 0.050	$ 0.050
Weighted average common shares outstanding: Basic (in Shares)	5,574,180	5,540,847	5,572,514	5,550,847
Weighted average common shares outstanding: Diluted (in Shares)	5,665,847	5,841,847	5,669,181	5,907,847
Net income	$ 399,000	$ 215,000	$ 458,000	$ 514,000
Other comprehensive income:
Foreign currency translation adjustment	9,000	(9,000)	2,000	(27,000)
Comprehensive income	408,000	206,000	460,000	487,000
Comprehensive loss attributable to noncontrolling interests	(2,000)	(2,000)	(3,000)	(2,000)
Comprehensive income attributable to Taitron Components Inc.	$ 410,000	$ 208,000	$ 463,000	$ 489,000

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows - USD ($)	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Operating activities:
Net income	$ 458,000	$ 514,000
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	76,000	118,000
Provision for sales returns and doubtful accounts	3,000	148,000
Stock based compensation	2,000	2,000
Loss on investments	135,000	73,000
Changes in assets and liabilities:
Accounts receivable	(384,000)	(652,000)
Inventories	444,000	(114,000)
Prepaid expenses and other current assets	(30,000)	(99,000)
Accounts payable	138,000	90,000
Accrued liabilities	(68,000)	(8,000)
Other assets and liabilities	11,000	(2,000)
Total adjustments	327,000	(444,000)
Net cash provided by operating activities	785,000	70,000
Investing activities:
Acquisition of property & equipment	0	(25,000)
Investment in securities	0	(93,000)
Net cash used for investing activities	0	(118,000)
Financing activities:
Payments on notes payable	(500,000)	0
Dividend payments	(278,000)	(276,000)
Proceeds from stock options exercised	18,000	40,000
Net cash used for financing activities	(760,000)	(236,000)
Impact of exchange rates on cash	2,000	(27,000)
Net increase (decrease) in cash and cash equivalents	27,000	(311,000)
Cash and cash equivalents, beginning of period	3,250,000	4,018,000
Cash and cash equivalents, end of period	3,277,000	3,707,000
Supplemental disclosures of cash flow information:
Cash paid for interest	9,000	20,000
Cash paid for income taxes, net	$ 3,000	$ 3,000

1 - SUMMARY OF SIGNIFICANT ACCO

1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 2018
Accounting Policies [Abstract]
Significant Accounting Policies [Text Block]	1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Overview of B usiness In 1989, we were formed and incorporated in California. We maintain a majority-owned subsidiary in Mexico (since 1998) and two divisions in each of Taiwan (since 1998) and China (since 2005). Our Mexico location closed all operations in May 2013 (final closure is pending sale of our local 15,000 sq. ft. office and warehouse facility) and our Taiwan and China locations are for supporting overseas customers, inventory sourcing, purchases and coordinating the manufacture of our products. Our China location also serves as the engineering designs support center responsible for arranging pre-production scheduling and mass production runs with joint venture partners for our projects, making component datasheets and test specifications, preparing samples, monitoring quality of shipments and performing failure analysis reports. Basis of Presentation The unaudited condensed consolidated interim financial statements include the accounts of the Company and all wholly owned divisions, including its 60% majority-owned subsidiary, Taitron Components Mexico, S.A. de C.V. All significant intercompany accounts and transactions have been eliminated in consolidation. These unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments of a normal recurring nature and considered necessary for a fair presentation of its financial condition and results of operations for the interim periods presented in this Quarterly Report on Form 10-Q have been included. Operating results for the interim periods are not necessarily indicative of financial results for the full year. These unaudited condensed consolidated financial statements should be read in conjunction with the audited condensed consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. In preparing these financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the condensed consolidated financial statements and the reported amount of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Significant estimates and assumptions included in the Company’s condensed consolidated financial statements relate to the allowance for sales returns, doubtful accounts, inventory reserves, accrued liabilities and deferred income taxes. Certain amounts in the prior year condensed consolidated financial statements have been reclassified to conform to the current year presentation. New Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued a new accounting standard on leasing. The new standard will require companies to record most leased assets and liabilities on the balance sheet, and also proposes a dual model for recognizing expense. This guidance will be effective in the first quarter of 2019 with early adoption permitted. We have evaluated the impact of adopting this guidance and we are preparing for the changes to be made to our consolidated financial statements. We expect the adoption of these accounting changes will not impact our assets and liabilities nor our net income or equity, as we currently do not lease any assets. In January 2017, the FASB issued a new accounting standard which clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions or disposals of assets or businesses. This guidance will be effective for the Company for the year ending December 31, 2019 and interim reporting periods within that year. Early adoption is permitted for transactions that have not been reported in financial statements that have been issued or made available for issuance. We are currently evaluating the effect of the adoption of this guidance on our consolidated financial statements. In May 2017, the FASB issued a new accounting standard which provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in ASC Topic 718. Under the new guidance, modification accounting is required only if the fair value, the vesting conditions, or the classification of the award (as equity or liability) changes as a result of the change in terms or conditions. This guidance will be effective for the year ending December 31, 2019 and interim reporting periods within that year. Early adoption is permitted. We expect the adoption of this guidance will not have a material effect on our consolidated financial statements. Impact of Recently Issued Accounting Standards On January 1, 2018, we adopted Topic 606 (ASU 2014-09) applying the modified retrospective method. The primary impact of adoption relates to additional disclosures and presentation of revenue by primary geographical market, major product line and the timing of revenue recognition. Revenue recognition Revenue is recognized at the point at which control of the underlying products are transferred to the customer. Satisfaction of our performance obligations occur upon the transfer of control of products, either from our facilities or directly from suppliers to customers. We consider customer purchase orders to be the contracts with a customer. All revenue is generated from contracts with customers. In determining the transaction price, we evaluate whether the price is subject to refund or adjustment to determine the net consideration to which we expect to receive. Taxes assessed by a governmental authority on revenue-producing transactions are excluded from revenue. Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as a fulfillment costs and are included in cost of products sold. Based upon the nature of our contracts with customers and our performance obligations within those contracts, we have no contract assets or liabilities as of June 30, 2018 and December 31, 2017. Nature of products We are primarily a supplier of original designed and manufactured (ODM) products that include value-added engineering and turn-key solutions. The following is a description of major products lines from which we generate our revenue: ODM Projects ODM Components Distribution Components Disaggregation of revenue In the following table, revenue is disaggregated by primary geographical market, major product line, and timing of revenue recognition. Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Primary geographical markets: United States $ 1,940,000 $ 1,543,000 $ 3,386,000 $ 3,519,000 Asia 179,000 204,000 369,000 370,000 Other 31,000 26,000 50,000 51,000 2,150,000 1,773,000 3,805,000 3,940,000 Major product lines: ODM projects $ 1,231,000 $ 801,000 $ 2,075,000 $ 2,071,000 ODM components 711,000 794,000 1,428,000 1,525,000 Distribution components 208,000 178,000 302,000 344,000 2,150,000 1,773,000 3,805,000 3,940,000 Timing of revenue recognition: Products transferred at a point in time $ 2,150,000 $ 1,773,000 $ 3,805,000 $ 3,940,000

2 - INVENTORY

2 - INVENTORY	6 Months Ended
	Jun. 30, 2018
Inventory Disclosure [Abstract]
Inventory Disclosure [Text Block]	2 – INVENTORY Inventory – Inventory, consisting principally of products held for resale, is recorded at the lower of cost (determined using the first in-first out method) or net realizable value. We had inventory balances in the amount of $4,546,000 and $4,990,000 at June 30, 2018 and December 31, 2017, respectively, which is presented net of valuation allowances of $7,946,000 and $7,848,000, respectively. We evaluate inventories to identify excess, high-cost, slow-moving or other factors rendering inventories as unmarketable at normal profit margins. Due to the complexity of managing and maintaining a large inventory of product offerings, estimates are made regarding adjustments to the cost of inventories. Based on our assumptions about future demand and market conditions, inventories are carried at the lower of cost or net realizable value. If our assumptions about future demand change, or market conditions are less favorable than those projected, additional write-downs of inventories may be required. In any case, actual amounts could be different from those estimated.

3 - OTHER ASSETS

3 - OTHER ASSETS	6 Months Ended
	Jun. 30, 2018
Disclosure Text Block Supplement [Abstract]
Other Assets Disclosure [Text Block]	3 – OTHER ASSETS June 30, December 31, 2018 2017 (Unaudited) Investment in securities - Zowie Technology $ 193,000 $ 193,000 Investment in joint venture - Grand Shine Mgmt 50,000 185,000 Other 15,000 25,000 Other Assets $ 258,000 $ 403,000 Our $193,000 investment in securities as of June 30, 2018 relates to our ownership of 1,322,552 common shares of Zowie Technology Corporation (New Taipei City, Taiwan), a supplier of electronic component products. Our investment relates to approximately 8.9% of their total outstanding shares although we do not have significant influence or control. This investment is accounted for under the cost method basis of accounting. Our $50,000 investment in joint venture as of June 30, 2018, relates to our 49% ownership of Grand Shine Management Limited (Dong Guan, China), an electronic device contract manufacturer, and joint venture with its 51% owner, Teamforce Company Limited. Our investment is accounted for under the equity method basis of accounting. As of June 30, 2018 and December 31, 2017, we have recorded our 49% share of cumulative unrealized losses from the inception of our investment in Grand Shine Management of $1,126,000 and $991,000, respectively.

4 - LONG-TERM DEBT FROM RELATED

4 - LONG-TERM DEBT FROM RELATED PARTY	6 Months Ended
	Jun. 30, 2018
Debt Disclosure [Abstract]
Debt Disclosure [Text Block]	4 – LONG-TERM DEBT FROM RELATED PARTY On April 21, 2008 we entered into a $3,000,000 credit facility, collateralized by real property, from K.S. Best International Co. Ltd., a company controlled by the brother of our Chief Executive Officer. Credit is available in $500,000 advances, each advance is payable in monthly interest only installments, at the rate of Prime + 0.25% per annum. As of June 30, 2018 and December 31, 2017, the aggregate outstanding balance on this credit facility was $0 and $500,000, respectively.

5 - RELATED PARTY TRANSACTIONS

5 - RELATED PARTY TRANSACTIONS	6 Months Ended
	Jun. 30, 2018
Related Party Transactions [Abstract]
Related Party Transactions Disclosure [Text Block]	5 – RELATED PARTY TRANSACTIONS We made payments to K.S. Best International Co. Ltd., a company controlled by the brother of our Chief Executive Officer of approximately $6,000 for both of the three and six months ended June 30, 2018 and 2017. These payments were for professional fees related to the operational management of our Taiwan office. In addition, we also made interest expense payments on our credit facility of approximately $3,000 and $11,000 for the three months ended June 30, 2018 and 2017, respectively and $9,000 and $21,000 for the six months ended June 30, 2018 and 2017, respectively. See Note 4. We had a $3,000,000 credit facility, collateralized by real property, from K.S. Best International Co. Ltd., a company controlled by the brother of our Chief Executive Officer. See Note 4.

6 - SHARE BASED COMPENSATION

6 - SHARE BASED COMPENSATION	6 Months Ended
	Jun. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]	6 – SHARE BASED COMPENSATION Accounting for stock options issued to employees measures the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award. That cost is recognized over the period during which an employee is required to provide service in exchange for the award. Outstanding options to purchase Class A common stock (“the Options”) vest in three equal annual installments beginning one year from the date of grant and are subject to termination provisions as defined in our 2005 Stock Incentive Plan. The Options activity during the six months ended June 30, 2018 is as follows: Number of Shares Weighted Average Exercise Price Weighted Average Years Remaining Contractual Term Aggregate Intrinsic Value Outstanding at December 31, 2017 331,000 $ 1.08 3.5 $ 204,000 Exercised (20,000 ) 0.92 Forfeited (34,000 ) 1.48 Outstanding at June 30, 2018 277,000 1.04 3.4 $ 190,000 Exercisable at June 30, 2018 275,333 $ 1.04 3.4 $ 160,000 At June 30, 2018, the range of individual outstanding weighted average exercise prices was $0.98 to $1.16.

7 - COMMITMENTS AND CONTINGENCI

7 - COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies Disclosure [Text Block]	7 – COMMITMENTS AND CONTINGENCIES Inventory Purchasing Outstanding commitments to purchase inventory from suppliers aggregated $1,320,000 as of June 30, 2018.

Accounting Policies, by Policy

Accounting Policies, by Policy (Policies)	6 Months Ended
	Jun. 30, 2018
Accounting Policies [Abstract]
Basis of Accounting, Policy [Policy Text Block]	Basis of Presentation The unaudited condensed consolidated interim financial statements include the accounts of the Company and all wholly owned divisions, including its 60% majority-owned subsidiary, Taitron Components Mexico, S.A. de C.V. All significant intercompany accounts and transactions have been eliminated in consolidation. These unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments of a normal recurring nature and considered necessary for a fair presentation of its financial condition and results of operations for the interim periods presented in this Quarterly Report on Form 10-Q have been included. Operating results for the interim periods are not necessarily indicative of financial results for the full year. These unaudited condensed consolidated financial statements should be read in conjunction with the audited condensed consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. In preparing these financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the condensed consolidated financial statements and the reported amount of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Significant estimates and assumptions included in the Company’s condensed consolidated financial statements relate to the allowance for sales returns, doubtful accounts, inventory reserves, accrued liabilities and deferred income taxes. Certain amounts in the prior year condensed consolidated financial statements have been reclassified to conform to the current year presentation.
New Accounting Pronouncements, Policy [Policy Text Block]	New Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued a new accounting standard on leasing. The new standard will require companies to record most leased assets and liabilities on the balance sheet, and also proposes a dual model for recognizing expense. This guidance will be effective in the first quarter of 2019 with early adoption permitted. We have evaluated the impact of adopting this guidance and we are preparing for the changes to be made to our consolidated financial statements. We expect the adoption of these accounting changes will not impact our assets and liabilities nor our net income or equity, as we currently do not lease any assets. In January 2017, the FASB issued a new accounting standard which clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions or disposals of assets or businesses. This guidance will be effective for the Company for the year ending December 31, 2019 and interim reporting periods within that year. Early adoption is permitted for transactions that have not been reported in financial statements that have been issued or made available for issuance. We are currently evaluating the effect of the adoption of this guidance on our consolidated financial statements. In May 2017, the FASB issued a new accounting standard which provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in ASC Topic 718. Under the new guidance, modification accounting is required only if the fair value, the vesting conditions, or the classification of the award (as equity or liability) changes as a result of the change in terms or conditions. This guidance will be effective for the year ending December 31, 2019 and interim reporting periods within that year. Early adoption is permitted. We expect the adoption of this guidance will not have a material effect on our consolidated financial statements. Impact of Recently Issued Accounting Standards On January 1, 2018, we adopted Topic 606 (ASU 2014-09) applying the modified retrospective method. The primary impact of adoption relates to additional disclosures and presentation of revenue by primary geographical market, major product line and the timing of revenue recognition.
Revenue Recognition Accounting Policy, Gross and Net Revenue Disclosure [Policy Text Block]	Revenue recognition Revenue is recognized at the point at which control of the underlying products are transferred to the customer. Satisfaction of our performance obligations occur upon the transfer of control of products, either from our facilities or directly from suppliers to customers. We consider customer purchase orders to be the contracts with a customer. All revenue is generated from contracts with customers. In determining the transaction price, we evaluate whether the price is subject to refund or adjustment to determine the net consideration to which we expect to receive. Taxes assessed by a governmental authority on revenue-producing transactions are excluded from revenue. Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as a fulfillment costs and are included in cost of products sold. Based upon the nature of our contracts with customers and our performance obligations within those contracts, we have no contract assets or liabilities as of June 30, 2018 and December 31, 2017. Nature of products We are primarily a supplier of original designed and manufactured (ODM) products that include value-added engineering and turn-key solutions. The following is a description of major products lines from which we generate our revenue: ODM Projects ODM Components Distribution Components Disaggregation of revenue In the following table, revenue is disaggregated by primary geographical market, major product line, and timing of revenue recognition. Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Primary geographical markets: United States $ 1,940,000 $ 1,543,000 $ 3,386,000 $ 3,519,000 Asia 179,000 204,000 369,000 370,000 Other 31,000 26,000 50,000 51,000 2,150,000 1,773,000 3,805,000 3,940,000 Major product lines: ODM projects $ 1,231,000 $ 801,000 $ 2,075,000 $ 2,071,000 ODM components 711,000 794,000 1,428,000 1,525,000 Distribution components 208,000 178,000 302,000 344,000 2,150,000 1,773,000 3,805,000 3,940,000 Timing of revenue recognition: Products transferred at a point in time $ 2,150,000 $ 1,773,000 $ 3,805,000 $ 3,940,000

1 - SUMMARY OF SIGNIFICANT AC14

1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	6 Months Ended
	Jun. 30, 2018
Accounting Policies [Abstract]
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block]	In the following table, revenue is disaggregated by primary geographical market, major product line, and timing of revenue recognition. Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Primary geographical markets: United States $ 1,940,000 $ 1,543,000 $ 3,386,000 $ 3,519,000 Asia 179,000 204,000 369,000 370,000 Other 31,000 26,000 50,000 51,000 2,150,000 1,773,000 3,805,000 3,940,000 Major product lines: ODM projects $ 1,231,000 $ 801,000 $ 2,075,000 $ 2,071,000 ODM components 711,000 794,000 1,428,000 1,525,000 Distribution components 208,000 178,000 302,000 344,000 2,150,000 1,773,000 3,805,000 3,940,000 Timing of revenue recognition: Products transferred at a point in time $ 2,150,000 $ 1,773,000 $ 3,805,000 $ 3,940,000

3 - OTHER ASSETS (Tables)

3 - OTHER ASSETS (Tables)	6 Months Ended
	Jun. 30, 2018
Disclosure Text Block Supplement [Abstract]
Schedule of Other Assets [Table Text Block]	June 30, December 31, 2018 2017 (Unaudited) Investment in securities - Zowie Technology $ 193,000 $ 193,000 Investment in joint venture - Grand Shine Mgmt 50,000 185,000 Other 15,000 25,000 Other Assets $ 258,000 $ 403,000

6 - SHARE BASED COMPENSATION (T

6 - SHARE BASED COMPENSATION (Tables)	6 Months Ended
	Jun. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Share-based Compensation, Stock Options, Activity [Table Text Block]	The Options activity during the six months ended June 30, 2018 is as follows: Number of Shares Weighted Average Exercise Price Weighted Average Years Remaining Contractual Term Aggregate Intrinsic Value Outstanding at December 31, 2017 331,000 $ 1.08 3.5 $ 204,000 Exercised (20,000 ) 0.92 Forfeited (34,000 ) 1.48 Outstanding at June 30, 2018 277,000 1.04 3.4 $ 190,000 Exercisable at June 30, 2018 275,333 $ 1.04 3.4 $ 160,000

1 - SUMMARY OF SIGNIFICANT AC17

1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)	Jun. 30, 2018
Taitron Components Mexico [Member]
1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items]
Equity Method Investment, Ownership Percentage	60.00%

1 - SUMMARY OF SIGNIFICANT AC18

1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of New Accounting Pronouncements and Changes in Accounting Principles - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Revenue	$ 2,150,000	$ 1,773,000	$ 3,805,000	$ 3,940,000
Products Transferred at a Point in Time [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Revenue	2,150,000	1,773,000	3,805,000	3,940,000
UNITED STATES
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Revenue	1,940,000	1,543,000	3,386,000	3,519,000
Asia [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Revenue	179,000	204,000	369,000	370,000
Other [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Revenue	31,000	26,000	50,000	51,000
ODM Projects [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Revenue	1,231,000	801,000	2,075,000	2,071,000
ODM Components [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Revenue	711,000	794,000	1,428,000	1,525,000
Distribution Components [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Revenue	$ 208,000	$ 178,000	$ 302,000	$ 344,000

2 - INVENTORY (Details)

2 - INVENTORY (Details) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Inventory Disclosure [Abstract]
Inventory, Net	$ 4,546,000	$ 4,990,000
Inventory Valuation Reserves	$ 7,946,000	$ 7,848,000

3 - OTHER ASSETS (Details)

3 - OTHER ASSETS (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Zowie Technology [Member]
3 - OTHER ASSETS (Details) [Line Items]
Equity Method Investments	$ 193,000	$ 193,000
Equity Method Investment, Ownership Percentage	8.90%
Grand Shine Management Limited [Member]
3 - OTHER ASSETS (Details) [Line Items]
Equity Method Investments	$ 50,000	185,000
Equity Method Investment, Ownership Percentage	49.00%
Unrealized Gain (Loss) on Investments	$ (1,126,000)	$ (991,000)
Common Stock [Member] | Zowie Technology [Member]
3 - OTHER ASSETS (Details) [Line Items]
Investment Owned, Balance, Shares (in Shares)	1,322,552
Teamforce Company Limited [Member] | Grand Shine Management Limited [Member]
3 - OTHER ASSETS (Details) [Line Items]
Equity Method Investment, Ownership Percentage	51.00%

3 - OTHER ASSETS (Details) - Sc

3 - OTHER ASSETS (Details) - Schedule of Other Assets - USD ($)	Jun. 30, 2018	Dec. 31, 2017
3 - OTHER ASSETS (Details) - Schedule of Other Assets [Line Items]
Other Investment	$ 15,000	$ 25,000
Other Assets	258,000	403,000
Zowie Technology [Member]
3 - OTHER ASSETS (Details) - Schedule of Other Assets [Line Items]
Investments	193,000	193,000
Grand Shine Management Limited [Member]
3 - OTHER ASSETS (Details) - Schedule of Other Assets [Line Items]
Investments	$ 50,000	$ 185,000

4 - LONG-TERM DEBT FROM RELAT22

4 - LONG-TERM DEBT FROM RELATED PARTY (Details) - Line of Credit [Member] - Immediate Family Member of Management or Principal Owner [Member] - USD ($)	Apr. 21, 2008	Jun. 30, 2018	Dec. 31, 2017
4 - LONG-TERM DEBT FROM RELATED PARTY (Details) [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	$ 3,000,000	$ 3,000,000
Line of Credit Facility, Collateral	collateralized by real property, from K.S. Best International Co.
Line of Credit Facility, Description	Credit is available in $500,000 advances
Line of Credit Facility, Frequency of Payment and Payment Terms	each advance is payable in monthly interest only installments
Long-term Line of Credit		$ 0	$ 500,000
Prime Rate [Member]
4 - LONG-TERM DEBT FROM RELATED PARTY (Details) [Line Items]
Debt Instrument, Basis Spread on Variable Rate	0.25%

5 - RELATED PARTY TRANSACTIONS

5 - RELATED PARTY TRANSACTIONS (Details) - USD ($)	3 Months Ended		6 Months Ended		9 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Sep. 30, 2017	Apr. 21, 2008
5 - RELATED PARTY TRANSACTIONS (Details) [Line Items]
Interest Paid, Including Capitalized Interest, Operating and Investing Activities			$ 9,000	$ 20,000
Immediate Family Member of Management or Principal Owner [Member]
5 - RELATED PARTY TRANSACTIONS (Details) [Line Items]
Costs and Expenses, Related Party	$ 6,000	$ 6,000	$ 6,000	$ 6,000
Related Party Transaction, Description of Transaction			professional fees related to the operational management of our Taiwan office	professional fees related to the operational management of our Taiwan office
Line of Credit [Member] | Immediate Family Member of Management or Principal Owner [Member]
5 - RELATED PARTY TRANSACTIONS (Details) [Line Items]
Interest Paid, Including Capitalized Interest, Operating and Investing Activities	3,000		$ 9,000	$ 21,000	$ 11,000
Line of Credit Facility, Maximum Borrowing Capacity	$ 3,000,000		$ 3,000,000			$ 3,000,000

6 - SHARE BASED COMPENSATION (D

6 - SHARE BASED COMPENSATION (Details)	6 Months Ended
	Jun. 30, 2018$ / shares
Minimum [Member]
6 - SHARE BASED COMPENSATION (Details) [Line Items]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Exercise Price	$ 0.98
Maximum [Member]
6 - SHARE BASED COMPENSATION (Details) [Line Items]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Exercise Price	$ 1.16
2005 Stock Incentive Plan [Member]
6 - SHARE BASED COMPENSATION (Details) [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Terms of Award	vest in three equal annual installments beginning one year from the date of grant and are subject to termination provisions as defined in our 2005 Stock Incentive Plan.

6 - SHARE BASED COMPENSATION 25

6 - SHARE BASED COMPENSATION (Details) - Schedule of Share-based Compensation, Stock Options, Activity - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Schedule of Share-based Compensation, Stock Options, Activity [Abstract]
Number of Options Outstanding	277,000	331,000
Weighted Average Exercise Price of Options Outstanding	$ 1.04	$ 1.08
Weighted Average Years Remaining Contractual Term of Options Outstanding	3 years 146 days	3 years 6 months
Aggregate Intrinsic Value of Options Outstanding	$ 190,000	$ 204,000
Number of Options Exercisable	275,333
Weighted Average Exercise Price of Options Excercisable	$ 1.04
Weighted Average Years Remaining Contractual Term of Options Exercisable	3 years 146 days
Aggregate Intrinsic Value of Options Exercisable	$ 160,000
Number of Options Exercised	(20,000)
Weighted Average Exercise Price of Options Exercised	$ 0.92
Number of Options Forfeited	(34,000)
Weighted Average Exercise Price	$ 1.48

7 - COMMITMENTS AND CONTINGEN26

7 - COMMITMENTS AND CONTINGENCIES (Details)	Jun. 30, 2018USD ($)
Commitments and Contingencies Disclosure [Abstract]
Purchase Commitment, Remaining Minimum Amount Committed	$ 1,320,000