Taitron Components (TAIT) 10-Q 14 Nov 19 2019 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Sep. 30, 2019	Oct. 31, 2019
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	0000942126
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Document Period End Date	Sep. 30, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Ex Transition Period	false
Entity Interactive Data Current	Yes
Common Class A [Member]
Document Information Line Items
Entity Common Stock, Shares Outstanding		4,990,235
Common Class B [Member]
Document Information Line Items
Entity Common Stock, Shares Outstanding		762,612

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Sep. 30, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 4,969,000	$ 4,494,000
Accounts receivable, less allowances of $40,000 and $38,000, respectively	750,000	901,000
Inventories, less reserves for obsolescence of $7,319,000, and $7,189,000, respectively (Note 2)	4,207,000	4,597,000
Prepaid expenses and other current assets	90,000	67,000
Total current assets	10,016,000	10,059,000
Property and equipment, net	3,435,000	3,710,000
Other assets (Note 3)	398,000	212,000
Total assets	13,849,000	13,981,000
Current liabilities:
Accounts payable	388,000	972,000
Accrued liabilities	298,000	311,000
Total current & total liabilities	686,000	1,283,000
Commitments and contingencies (Note 6 )
Shareholders's equity:
Preferred stock, $0.001 par value. Authorized 5,000,000 shares; None issued or outstanding	0	0
Additional paid-in capital	10,952,000	10,812,000
Accumulated other comprehensive income	43,000	128,000
Retained earnings	2,062,000	1,656,000
Total shareholders’ equity - Taitron Components Inc	13,063,000	12,602,000
Noncontrolling interest in subsidiary	100,000	96,000
Total equity	13,163,000	12,698,000
Total liabilities and equity	13,849,000	13,981,000
Common Class A [Member]
Shareholders's equity:
Common Stock, value, issued	5,000	5,000
Common Class B [Member]
Shareholders's equity:
Common Stock, value, issued	$ 1,000	$ 1,000

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parentheticals) - USD ($)	Sep. 30, 2019	Dec. 31, 2018
Accounts receivable, allowances (in Dollars)	$ 40,000	$ 38,000
Inventories, reserves for obsolescence (in Dollars)	$ 7,319,000	$ 7,189,000
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	4,990,235	4,867,235
Common stock, shares outstanding	4,990,235	4,867,235
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		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Net product revenue	$ 1,658,000	$ 1,902,000	$ 4,814,000	$ 5,707,000
Cost of products sold	770,000	1,056,000	2,408,000	3,228,000
Gross profit	888,000	846,000	2,406,000	2,479,000
Selling, general and administrative expenses	566,000	544,000	1,712,000	1,654,000
Operating income	322,000	302,000	694,000	825,000
Interest income(expense), net	7,000	0	21,000	(4,000)
Loss on investments	0	(50,000)	0	(185,000)
Other income, net	188,000	29,000	244,000	106,000
Income before income taxes	517,000	281,000	959,000	742,000
Income tax provision	(2,000)	(2,000)	(4,000)	(5,000)
Net income	515,000	279,000	955,000	737,000
Net income(loss) attributable to noncontrolling interests	37,000	(2,000)	33,000	(6,000)
Net income attributable to Taitron Components Inc.	$ 478,000	$ 281,000	$ 922,000	$ 743,000
Net income per share: Basic (in Dollars per share)	$ 0.08	$ 0.05	$ 0.16	$ 0.13
Net income per share: Diluted (in Dollars per share)	0.08	0.05	0.16	0.13
Cash dividends declared per common share (in Dollars per share)	$ 0.030	$ 0.025	$ 0.090	$ 0.075
Weighted average common shares outstanding: Basic (in Shares)	5,752,847	5,615,347	5,714,680	5,586,791
Weighted average common shares outstanding: Diluted (in Shares)	5,825,847	5,741,474	5,826,680	5,702,456
Net income	$ 515,000	$ 279,000	$ 955,000	$ 737,000
Other comprehensive income:
Foreign currency translation adjustment	(100,000)	(8,000)	(85,000)	(6,000)
Comprehensive income	415,000	271,000	870,000	731,000
Comprehensive income(loss) attributable to noncontrolling interests	9,000	(2,000)	4,000	(5,000)
Comprehensive income attributable to Taitron Components Inc.	$ 406,000	$ 273,000	$ 866,000	$ 736,000

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Shareholders' Equity - USD ($)	Common Stock [Member]Common Class A [Member]	Common Stock [Member]Common Class B [Member]	Additional Paid-in Capital [Member]	AOCI Attributable to Parent [Member]	Retained Earnings [Member]	Noncontrolling Interest [Member]	Common Class A [Member]	Common Class B [Member]	Total
Balance at Dec. 31, 2017	$ 5,000	$ 1,000	$ 10,744,000	$ 144,000	$ 867,000	$ 100,000			$ 11,861,000
Balance (in Shares) at Dec. 31, 2017	4,808,235	762,612
Consolidated net income (loss)					61,000	(2,000)			59,000
Other comprehensive income (loss)				(7,000)		1,000			(6,000)
Balance at Mar. 31, 2018	$ 5,000	$ 1,000	10,745,000	137,000	789,000	99,000			11,776,000
Balance (in Shares) at Mar. 31, 2018	4,808,235	762,612
Balance at Dec. 31, 2017	$ 5,000	$ 1,000	10,744,000	144,000	867,000	100,000			11,861,000
Balance (in Shares) at Dec. 31, 2017	4,808,235	762,612
Consolidated net income (loss)									737,000
Other comprehensive income (loss)									(6,000)
Balance at Sep. 30, 2018	$ 5,000	$ 1,000	10,806,000	138,000	1,194,000	95,000			12,239,000
Balance (in Shares) at Sep. 30, 2018	4,867,235	762,612
Balance at Mar. 31, 2018	$ 5,000	$ 1,000	10,745,000	137,000	789,000	99,000			11,776,000
Balance (in Shares) at Mar. 31, 2018	4,808,235	762,612
Consolidated net income (loss)					401,000	(2,000)			399,000
Other comprehensive income (loss)				9,000					9,000
Exercise stock options			18,000						18,000
Exercise stock options (in Shares)	20,000
Amortization of stock based compensation			1,000						1,000
Cash dividends					(139,000)				(139,000)
Balance at Jun. 30, 2018	$ 5,000	$ 1,000	10,764,000	146,000	1,051,000	97,000			12,064,000
Balance (in Shares) at Jun. 30, 2018	4,828,235	762,612
Consolidated net income (loss)					281,000	(2,000)			279,000
Other comprehensive income (loss)				(8,000)					(8,000)
Exercise stock options			42,000						42,000
Exercise stock options (in Shares)	39,000
Cash dividends					(138,000)				(138,000)
Balance at Sep. 30, 2018	$ 5,000	$ 1,000	10,806,000	138,000	1,194,000	95,000			12,239,000
Balance (in Shares) at Sep. 30, 2018	4,867,235	762,612
Balance at Dec. 31, 2018	$ 5,000	$ 1,000	10,812,000	128,000	1,656,000	96,000			12,698,000
Balance (in Shares) at Dec. 31, 2018	4,867,235	762,612					4,867,235	762,612
Consolidated net income (loss)					186,000	(2,000)			184,000
Other comprehensive income (loss)				13,000		(1,000)			12,000
Exercise stock options			76,000						76,000
Exercise stock options (in Shares)	70,000
Amortization of stock based compensation			4,000						4,000
Cash dividends					(171,000)				(171,000)
Balance at Mar. 31, 2019	$ 5,000	$ 1,000	10,892,000	141,000	1,671,000	93,000			12,803,000
Balance (in Shares) at Mar. 31, 2019	4,937,235	762,612
Balance at Dec. 31, 2018	$ 5,000	$ 1,000	10,812,000	128,000	1,656,000	96,000			12,698,000
Balance (in Shares) at Dec. 31, 2018	4,867,235	762,612					4,867,235	762,612
Consolidated net income (loss)									955,000
Other comprehensive income (loss)									$ (85,000)
Exercise stock options (in Shares)									123,000
Balance at Sep. 30, 2019	$ 5,000	$ 1,000	10,952,000	43,000	2,062,000	100,000			$ 13,163,000
Balance (in Shares) at Sep. 30, 2019	4,990,235	762,612					4,990,235	762,612
Balance at Mar. 31, 2019	$ 5,000	$ 1,000	10,892,000	141,000	1,671,000	93,000			12,803,000
Balance (in Shares) at Mar. 31, 2019	4,937,235	762,612
Consolidated net income (loss)					258,000	(2,000)			256,000
Other comprehensive income (loss)				2,000					2,000
Exercise stock options			50,000						50,000
Exercise stock options (in Shares)	53,000
Amortization of stock based compensation			5,000						5,000
Cash dividends					(172,000)				(172,000)
Balance at Jun. 30, 2019	$ 5,000	$ 1,000	10,947,000	143,000	1,757,000	91,000			12,944,000
Balance (in Shares) at Jun. 30, 2019	4,990,235	762,612
Consolidated net income (loss)					478,000	37,000			515,000
Other comprehensive income (loss)				(100,000)		(28,000)			(100,000)
Amortization of stock based compensation			5,000						5,000
Cash dividends					(173,000)				(173,000)
Balance at Sep. 30, 2019	$ 5,000	$ 1,000	$ 10,952,000	$ 43,000	$ 2,062,000	$ 100,000			$ 13,163,000
Balance (in Shares) at Sep. 30, 2019	4,990,235	762,612					4,990,235	762,612

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows - USD ($)	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Operating activities:
Net income	$ 955,000	$ 737,000
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	124,000	121,000
Provision for sales returns and doubtful accounts	4,000	3,000
Stock based compensation	14,000	2,000
Loss on investments	0	185,000
Gain on sale of assets	(160,000)	0
Changes in assets and liabilities:
Accounts receivable	147,000	255,000
Inventories	390,000	252,000
Prepaid expenses and other current assets	(23,000)	4,000
Accounts payable	(584,000)	(137,000)
Accrued liabilities	(13,000)	(25,000)
Other assets and liabilities	4,000	12,000
Total adjustments	(97,000)	672,000
Net cash provided by operating activities	858,000	1,409,000
Investing activities:
Acquisition of property and equipment	(12,000)	(5,000)
Proceeds from sale of assets	200,000	0
Payment for investment in convertible securities	(186,000)	0
Net cash provided by (used for) investing activities	2,000	(5,000)
Financing activities:
Payments on notes payable	0	(500,000)
Dividend payments	(516,000)	(418,000)
Proceeds from stock options exercised	126,000	60,000
Net cash used for financing activities	(390,000)	(858,000)
Impact of exchange rates on cash	5,000	(6,000)
Net increase in cash and cash equivalents	475,000	540,000
Cash and cash equivalents, beginning of period	4,494,000	3,250,000
Cash and cash equivalents, end of period	4,969,000	3,790,000
Supplemental disclosures of cash flow information:
Cash paid for interest	0	9,000
Cash paid for income taxes, net	$ 3,000	$ 3,000

1 - SUMMARY OF SIGNIFICANT ACCO

1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Sep. 30, 2019
Accounting Policies [Abstract]
Significant Accounting Policies [Text Block]	1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Overview of Business 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 1997) and China (since 2005). Our Mexico location closed all operations in May 2013 (final closure is planned for the fourth quarter of 2019) 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 design 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 consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018. 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. New Accounting Pronouncements In February 2016, the 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 was effective in our first quarter of 2019. We have evaluated the impact of adopting this guidance and the adoption of these accounting changes have not impacted our assets and liabilities nor our net income or equity, as we currently do not lease any assets. 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 was effective in our first quarter of 2019. The adoption of this guidance has not had a material effect on our consolidated financial statements. 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 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 September 30, 2019 and December 31, 2018. 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 September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Primary geographical markets: United States $ 1,509,000 $ 1,622,000 $ 4,186,000 $ 5,003,000 Asia 145,000 257,000 610,000 627,000 Other 4,000 23,000 18,000 77,000 1,658,000 1,902,000 4,814,000 5,707,000 Major product lines: ODM projects $ 1,103,000 $ 1,006,000 $ 2,705,000 $ 3,077,000 ODM components 539,000 719,000 2,018,000 2,147,000 Distribution components 16,000 177,000 91,000 483,000 1,658,000 1,902,000 4,814,000 5,707,000 Timing of revenue recognition: Products transferred at a point in time $ 1,658,000 $ 1,902,000 $ 4,814,000 $ 5,707,000

2 - INVENTORY

2 - INVENTORY	9 Months Ended
	Sep. 30, 2019
Inventory Disclosure [Abstract]
Inventory Disclosure [Text Block]	2 – 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 $4,207,000 and $4,597,000 at September 30, 2019 and December 31, 2018, respectively, which is presented net of valuation allowances of $7,319,000 and $7,189,000, 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 carrying values 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 or valuation allowances may be required. In any case, actual amounts could be different from those estimated.

3 - OTHER ASSETS

3 - OTHER ASSETS	9 Months Ended
	Sep. 30, 2019
Disclosure Text Block Supplement [Abstract]
Other Assets Disclosure [Text Block]	3 – OTHER ASSETS Investment in securities - Zowie Technology Other Other Assets Total Balance at December 31, 2018 $ 193,000 $ 19,000 $ 212,000 Investment 186,000 - 186,000 Balance at September 30, 2019 $ 379,000 $ 19,000 $ 398,000 Our $379,000 investment in securities as of September 30, 2019 relates to the following investments in Zowie Technology (“ZT”), a supplier of electronic component products located in Taipei City, Taiwan R.O.C.: (a) $193,000 relates to 1,322,552 common shares of ZT and represents approximately 9% of their total outstanding shares although we do not have significant influence or control. (b) $186,000 relates to 317,428 shares of preferred convertible debt of ZT with our option after 3 (three) years to convert the investment into common stock or refundable bearing 7% annual interest rate. Both investments in ZT are accounted for under the cost (plus impairment) basis of accounting.

4 - RELATED PARTY TRANSACTIONS

4 - RELATED PARTY TRANSACTIONS	9 Months Ended
	Sep. 30, 2019
Related Party Transactions [Abstract]
Related Party Transactions Disclosure [Text Block]	4 – 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 $0 and $6,000 for the three months ended September 30, 2019 and 2018, respectively and $0 and $18,000 for the nine months ended September 30, 2019 and 2018, respectively. 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 prior credit facility of approximately $0 and $9,000 for the nine months ended September 30, 2019 and 2018, respectively.

5 - SHARE BASED COMPENSATION

5 - SHARE BASED COMPENSATION	9 Months Ended
	Sep. 30, 2019
Share-based Payment Arrangement [Abstract]
Share-based Payment Arrangement [Text Block]	5 – 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 and 2018 Omnibus Incentive Plan (collectively referred to as “the Plans”). The Options activity during the nine months ended September 30, 2019 is as follows: Number of Shares Weighted Average Exercise Price Weighted Average Years Remaining Contractual Term Aggregate Intrinsic Value Outstanding at December 31, 2018 453,000 $ 1.35 5.0 $ 182,000 Grants 52,500 $ 2.78 8.0 - Exercised (123,000 ) 1.03 - - Forfeited (1,000 ) 0.84 - - Outstanding at September 30, 2019 381,500 $ 1.65 5.8 $ 428,000 Exercisable at September 30, 2019 114,000 $ 1.05 3.3 $ 192,000 At September 30, 2019, the range of individual outstanding weighted average exercise prices was $1.02 to $2.68.

6 - COMMITMENTS AND CONTINGENCI

6 - COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Sep. 30, 2019
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies Disclosure [Text Block]	6 – COMMITMENTS AND CONTINGENCIES Inventory Purchasing Outstanding commitments to purchase inventory from suppliers aggregated $980,000 as of September 30, 2019.

Accounting Policies, by Policy

Accounting Policies, by Policy (Policies)	9 Months Ended
	Sep. 30, 2019
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 consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018. 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.
New Accounting Pronouncements, Policy [Policy Text Block]	New Accounting Pronouncements In February 2016, the 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 was effective in our first quarter of 2019. We have evaluated the impact of adopting this guidance and the adoption of these accounting changes have not impacted our assets and liabilities nor our net income or equity, as we currently do not lease any assets. 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 was effective in our first quarter of 2019. The adoption of this guidance has not had a material effect on our consolidated financial statements.
Revenue [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 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 September 30, 2019 and December 31, 2018. 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 September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Primary geographical markets: United States $ 1,509,000 $ 1,622,000 $ 4,186,000 $ 5,003,000 Asia 145,000 257,000 610,000 627,000 Other 4,000 23,000 18,000 77,000 1,658,000 1,902,000 4,814,000 5,707,000 Major product lines: ODM projects $ 1,103,000 $ 1,006,000 $ 2,705,000 $ 3,077,000 ODM components 539,000 719,000 2,018,000 2,147,000 Distribution components 16,000 177,000 91,000 483,000 1,658,000 1,902,000 4,814,000 5,707,000 Timing of revenue recognition: Products transferred at a point in time $ 1,658,000 $ 1,902,000 $ 4,814,000 $ 5,707,000

1 - SUMMARY OF SIGNIFICANT AC_2

1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	9 Months Ended
	Sep. 30, 2019
Accounting Policies [Abstract]
Disaggregation of Revenue [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 September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Primary geographical markets: United States $ 1,509,000 $ 1,622,000 $ 4,186,000 $ 5,003,000 Asia 145,000 257,000 610,000 627,000 Other 4,000 23,000 18,000 77,000 1,658,000 1,902,000 4,814,000 5,707,000 Major product lines: ODM projects $ 1,103,000 $ 1,006,000 $ 2,705,000 $ 3,077,000 ODM components 539,000 719,000 2,018,000 2,147,000 Distribution components 16,000 177,000 91,000 483,000 1,658,000 1,902,000 4,814,000 5,707,000 Timing of revenue recognition: Products transferred at a point in time $ 1,658,000 $ 1,902,000 $ 4,814,000 $ 5,707,000

3 - OTHER ASSETS (Tables)

3 - OTHER ASSETS (Tables)	9 Months Ended
	Sep. 30, 2019
Disclosure Text Block Supplement [Abstract]
Schedule of Other Assets [Table Text Block]	Investment in securities - Zowie Technology Other Other Assets Total Balance at December 31, 2018 $ 193,000 $ 19,000 $ 212,000 Investment 186,000 - 186,000 Balance at September 30, 2019 $ 379,000 $ 19,000 $ 398,000

5 - SHARE BASED COMPENSATION (T

5 - SHARE BASED COMPENSATION (Tables)	9 Months Ended
	Sep. 30, 2019
Share-based Payment Arrangement [Abstract]
Share-based Payment Arrangement, Option, Activity [Table Text Block]	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 and 2018 Omnibus Incentive Plan (collectively referred to as “the Plans”). The Options activity during the nine months ended September 30, 2019 is as follows: Number of Shares Weighted Average Exercise Price Weighted Average Years Remaining Contractual Term Aggregate Intrinsic Value Outstanding at December 31, 2018 453,000 $ 1.35 5.0 $ 182,000 Grants 52,500 $ 2.78 8.0 - Exercised (123,000 ) 1.03 - - Forfeited (1,000 ) 0.84 - - Outstanding at September 30, 2019 381,500 $ 1.65 5.8 $ 428,000 Exercisable at September 30, 2019 114,000 $ 1.05 3.3 $ 192,000

1 - SUMMARY OF SIGNIFICANT AC_3

1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)	9 Months Ended
	Sep. 30, 2019
Accounting Policies [Abstract]
Number of Operating Segments	2

1 - SUMMARY OF SIGNIFICANT AC

1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Disaggregation of Revenue - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Disaggregation of Revenue [Line Items]
Revenue	$ 1,658,000	$ 1,902,000	$ 4,814,000	$ 5,707,000
ODM Projects [Member]
Disaggregation of Revenue [Line Items]
Revenue	1,103,000	1,006,000	2,705,000	3,077,000
ODM Components [Member]
Disaggregation of Revenue [Line Items]
Revenue	539,000	719,000	2,018,000	2,147,000
Distribution Components [Member]
Disaggregation of Revenue [Line Items]
Revenue	16,000	177,000	91,000	483,000
UNITED STATES
Disaggregation of Revenue [Line Items]
Revenue	1,509,000	1,622,000	4,186,000	5,003,000
Asia [Member]
Disaggregation of Revenue [Line Items]
Revenue	145,000	257,000	610,000	627,000
Other [Member]
Disaggregation of Revenue [Line Items]
Revenue	4,000	23,000	18,000	77,000
Products Transferred at a Point in Time [Member]
Disaggregation of Revenue [Line Items]
Revenue	$ 1,658,000	$ 1,902,000	$ 4,814,000	$ 5,707,000

2 - INVENTORY (Details)

2 - INVENTORY (Details) - USD ($)	Sep. 30, 2019	Dec. 31, 2018
Inventory Disclosure [Abstract]
Inventory, Net	$ 4,207,000	$ 4,597,000
Inventory Valuation Reserves	$ 7,319,000	$ 7,189,000

3 - OTHER ASSETS (Details)

3 - OTHER ASSETS (Details) - Zowie Technology [Member]	9 Months Ended
	Sep. 30, 2019USD ($)shares
3 - OTHER ASSETS (Details) [Line Items]
Equity Method Investments	$ 379,000
Common Stock [Member]
3 - OTHER ASSETS (Details) [Line Items]
Equity Method Investments	$ 193,000
Investment Owned, Balance, Shares (in Shares) | shares	1,322,552
Equity Method Investment, Ownership Percentage	9.00%
Preferred Stock [Member]
3 - OTHER ASSETS (Details) [Line Items]
Equity Method Investments	$ 186,000
Investment Owned, Balance, Shares (in Shares) | shares	317,428
Equity Method Investment, Description of Principal Activities	 (b)$186,000 relates to 317,428 shares of preferred convertible debt of ZT with our option after 3 (three) years to convert the investment into common stock or refundable bearing 7% annual interest rate.

3 - OTHER ASSETS (Details) -

3 - OTHER ASSETS (Details) - Schedule of Other Assets - USD ($)	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
3 - OTHER ASSETS (Details) - Schedule of Other Assets [Line Items]
Investments Balance	$ 212,000
Investment	186,000	$ 0
Investments Balance	398,000
Zowie Technology [Member]
3 - OTHER ASSETS (Details) - Schedule of Other Assets [Line Items]
Investments Balance	193,000
Investment	186,000
Investments Balance	379,000
Other Investments [Member]
3 - OTHER ASSETS (Details) - Schedule of Other Assets [Line Items]
Investments Balance	19,000
Investment	0
Investments Balance	$ 19,000

4 - RELATED PARTY TRANSACTIONS

4 - RELATED PARTY TRANSACTIONS (Details) - Immediate Family Member of Management or Principal Owner [Member] - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
4 - RELATED PARTY TRANSACTIONS (Details) [Line Items]
Related Party Transaction, Amounts of Transaction	$ 0	$ 6,000	$ 0	$ 18,000
Interest Paid, Including Capitalized Interest, Operating and Investing Activities	$ 0	$ 9,000	$ 0	$ 9,000

5 - SHARE BASED COMPENSATION (D

5 - SHARE BASED COMPENSATION (Details) - 2018 Stock Incentive Plan [Member]	9 Months Ended
	Sep. 30, 2019$ / shares
5 - 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 and 2018 Omnibus Incentive Plan (collectively referred to as “the Plans”).
Share-based Payment Arrangement, Option, Exercise Price Range, Lower Range Limit	$ 1.02
Share-based Payment Arrangement, Option, Exercise Price Range, Upper Range Limit	$ 2.68

5 - SHARE BASED COMPENSATION

5 - SHARE BASED COMPENSATION (Details) - Schedule of Share-based Compensation, Stock Options, Activity - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Schedule of Share-based Compensation, Stock Options, Activity [Abstract]
Options Outstanding, Number of Shares		453,000
Options Outstanding, Weighted Average Exercise Price		$ 1.35
Options Outstanding, Weighted Average Years Remaining Contractual Term	5 years 292 days	5 years
Options Outstanding, Aggregate Intrinsic Value		$ 182,000
Options Exercisable, Number of Shares	114,000
Options Exercisable, Weighted Average Exercise Price	$ 1.05
Options Exercisable, Weighted Average Years Remaining Contractual Term	3 years 109 days
Options Exercisable, Aggregate Intrinsic Value	$ 192,000
Options Grants, Number of Shares	52,500
Options Grants, Weighted Average Exercise Price	$ 2.78
Options Grants, Weighted Average Years Remaining Contractual Term	8 years
Options Exercised, Number of Shares	(123,000)
Options Exercised, Weighted Average Exercise Price	$ 1.03
Forfeited, Number of Shares	(1,000)
Forfeited, Weighted Average Exercise Price	$ 0.84
Options Outstanding, Number of Shares	381,500
Options Outstanding, Weighted Average Exercise Price	$ 1.65
Options Outstanding, Aggregate Intrinsic Value	$ 428,000

6 - COMMITMENTS AND CONTINGEN_2

6 - COMMITMENTS AND CONTINGENCIES (Details)	Sep. 30, 2019USD ($)
Commitments and Contingencies Disclosure [Abstract]
Purchase Commitment, Remaining Minimum Amount Committed	$ 980,000