Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Nov. 06, 2019 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | BLONDER TONGUE LABORATORIES INC | |
Entity Central Index Key | 0001000683 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2019 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2019 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Shell Company | false | |
Entity Ex Transition Period | false | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 9,634,163 | |
Entity File Number | 1-14120 | |
Entity Interactive Data Current | Yes | |
Entity Incorporation State Country Code | DE |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash | $ 369 | $ 559 |
Accounts receivable, net of allowance for doubtful accounts of $27 and $53 as of September 30, 2019 and December 31,2018, respectively | 2,272 | 2,654 |
Inventories, current | 8,462 | 6,172 |
Prepaid benefit costs | 288 | 288 |
Deferred loan costs | 40 | 149 |
Prepaid and other current assets | 648 | 555 |
Total current assets | 12,079 | 10,377 |
Inventories, net non-current | 551 | |
Property, plant and equipment, net | 377 | 2,890 |
License agreements, net | 23 | 12 |
Intangible assets, net | 1,141 | 1,269 |
Goodwill | 493 | 493 |
Right of use assets, net | 3,575 | |
Other assets, net | 815 | 9 |
Total assets | 18,503 | 15,601 |
Current liabilities: | ||
Line of credit | 803 | 2,603 |
Current portion of long-term debt | 30 | 3,075 |
Current portion of lease liability | 754 | |
Accounts payable | 2,563 | 1,523 |
Accrued compensation | 254 | 332 |
Income taxes payable | 11 | 28 |
Other accrued expenses | 252 | 702 |
Total current liabilities | 4,667 | 8,263 |
Subordinated convertible debt with related parties | 139 | |
Lease liability, net of current portion | 2,774 | |
Long-term debt, net of current portion | 45 | 32 |
Total liabilities | 7,486 | 8,434 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred stock, $.001 par value; authorized 5,000 shares; no shares outstanding as of September 30, 2019 and December 31, 2018 | ||
Common stock, $.001 par value; authorized 25,000 shares 9,656 and 9,508 shares issued, 9,634 and 9,335 shares outstanding as of September 30, 2019 and December 31, 2018, respectively | 10 | 9 |
Paid-in capital | 28,023 | 27,910 |
Accumulated deficit | (16,078) | (19,178) |
Accumulated other comprehensive loss | (832) | (832) |
Treasury stock, at cost, 22 and 173 shares as of September 30, 2019 and December 31, 2018, respectively | (106) | (742) |
Total stockholders' equity | 11,017 | 7,167 |
Total liabilities and stockholders' equity | $ 18,503 | $ 15,601 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 27 | $ 53 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 5,000 | 5,000 |
Preferred stock, shares outstanding | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 25,000 | 25,000 |
Common stock, shares issued | 9,656 | 9,508 |
Common stock, shares outstanding | 9,634 | 9,335 |
Treasury stock, shares | 22 | 173 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Statement [Abstract] | ||||
Net sales | $ 5,278 | $ 5,626 | $ 14,797 | $ 16,266 |
Cost of goods sold | 3,747 | 3,213 | 10,170 | 9,439 |
Gross profit | 1,531 | 2,413 | 4,627 | 6,827 |
Operating expenses: | ||||
Selling | 781 | 683 | 2,253 | 1,894 |
General and administrative | 1,185 | 1,102 | 3,978 | 3,135 |
Research and development | 848 | 672 | 2,291 | 1,972 |
Total operating expenses | 2,814 | 2,457 | 8,522 | 7,001 |
Loss from operations | (1,283) | (44) | (3,895) | (174) |
Other Expense - net | (51) | (155) | (180) | (423) |
Gain on building sale | 7,175 | |||
(Loss) earnings before income taxes | (1,334) | (199) | 3,100 | (597) |
Provision for income taxes | ||||
Net (loss) earnings | $ (1,334) | $ (199) | $ 3,100 | $ (597) |
Basic net (loss) earnings per share | $ (0.14) | $ (0.02) | $ 0.32 | $ (0.07) |
Diluted net (loss) earnings per share | $ (0.14) | $ (0.02) | $ 0.31 | $ (0.07) |
Basic weighted averages shares outstanding | 9,631 | 9,270 | 9,583 | 8,836 |
Diluted weighted averages shares outstanding | 9,631 | 9,270 | 9,971 | 8,836 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Common Stock | Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Treasury Stock | Total |
Balance at Dec. 31, 2017 | $ 8 | $ 26,920 | $ (17,821) | $ (854) | $ (840) | $ 7,413 |
Balance, Shares at Dec. 31, 2017 | 8,465 | |||||
Net earnings loss | (63) | (63) | ||||
Stock-based Compensation | 84 | 84 | ||||
Balance at Mar. 31, 2018 | $ 8 | 27,004 | (17,884) | (854) | (840) | 7,434 |
Balance, Shares at Mar. 31, 2018 | 8,465 | |||||
Balance at Dec. 31, 2017 | $ 8 | 26,920 | (17,821) | (854) | (840) | 7,413 |
Balance, Shares at Dec. 31, 2017 | 8,465 | |||||
Net earnings loss | (597) | |||||
Balance at Sep. 30, 2018 | $ 9 | 27,768 | (18,418) | (854) | (824) | 7,681 |
Balance, Shares at Sep. 30, 2018 | 9.914 | |||||
Balance at Mar. 31, 2018 | $ 8 | 27,004 | (17,884) | (854) | (840) | 7,434 |
Balance, Shares at Mar. 31, 2018 | 8,465 | |||||
Net earnings loss | (335) | (335) | ||||
Conversion of subordinated convertible debt | $ 1 | 454 | 455 | |||
Conversion of subordinated convertible debt, Shares | 842 | |||||
Stock-based Compensation | 147 | 147 | ||||
Balance at Jun. 30, 2018 | $ 9 | 27,605 | (18,219) | (854) | (840) | 7,701 |
Balance, Shares at Jun. 30, 2018 | 9,782 | |||||
Net earnings loss | (199) | (199) | ||||
Stock-based Compensation | 163 | 16 | 179 | |||
Balance at Sep. 30, 2018 | $ 9 | 27,768 | (18,418) | (854) | (824) | 7,681 |
Balance, Shares at Sep. 30, 2018 | 9.914 | |||||
Balance at Dec. 31, 2018 | $ 9 | 27,910 | (19,178) | (832) | (742) | 7,167 |
Balance, Shares at Dec. 31, 2018 | 9,508 | |||||
Net earnings loss | 5,325 | 5,325 | ||||
Conversion of subordinated convertible debt | 140 | 140 | ||||
Conversion of subordinated convertible debt, Shares | 260 | |||||
Stock-based Compensation | 149 | 149 | ||||
Balance at Mar. 31, 2019 | $ 9 | 28,199 | (13,853) | (832) | (742) | 12,781 |
Balance, Shares at Mar. 31, 2019 | 9,768 | |||||
Balance at Dec. 31, 2018 | $ 9 | 27,910 | (19,178) | (832) | (742) | 7,167 |
Balance, Shares at Dec. 31, 2018 | 9,508 | |||||
Net earnings loss | 3,100 | |||||
Balance at Sep. 30, 2019 | $ 10 | 28,023 | (16,078) | (832) | (106) | 11,017 |
Balance, Shares at Sep. 30, 2019 | 9,656 | |||||
Balance at Mar. 31, 2019 | $ 9 | 28,199 | (13,853) | (832) | (742) | 12,781 |
Balance, Shares at Mar. 31, 2019 | 9,768 | |||||
Net earnings loss | (891) | (891) | ||||
Shares issued from treasury stock | (196) | 258 | 62 | |||
Shares issued from treasury stock, Shares | (45) | |||||
Stock-based Compensation | 168 | 168 | ||||
Balance at Jun. 30, 2019 | $ 9 | 28,171 | (14,744) | (832) | (484) | 12,120 |
Balance, Shares at Jun. 30, 2019 | 9,723 | |||||
Net earnings loss | (1,334) | (1,334) | ||||
Shares issued from treasury stock | $ 1 | (310) | 378 | 69 | ||
Shares issued from treasury stock, Shares | (67) | |||||
Stock-based Compensation | 162 | 162 | ||||
Balance at Sep. 30, 2019 | $ 10 | $ 28,023 | $ (16,078) | $ (832) | $ (106) | $ 11,017 |
Balance, Shares at Sep. 30, 2019 | 9,656 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash Flows From Operating Activities: | ||
Net earnings (loss) | $ 3,100 | $ (597) |
Adjustments to reconcile net earnings (loss) to cash (used in) provided by operating activities: | ||
Gain on building sale | (7,175) | |
Stock based compensation expense | 479 | 393 |
Depreciation | 133 | 235 |
Amortization | 158 | 160 |
Recovery of bad debt expense | (26) | (126) |
Amortization of deferred loan costs | 109 | 108 |
Non cash interest expense | 1 | 32 |
Amortization of right of use assets | (47) | |
Changes in operating assets and liabilities: | ||
Accounts receivable | 408 | 39 |
Inventories | (1,739) | (272) |
Prepaid and other current assets | (93) | (315) |
Other assets | (806) | 2 |
Income taxes payable | (17) | |
Accounts payable, accrued compensation and other accrued expenses | 512 | 437 |
Net cash (used in) provided by operating activities | (5,003) | 96 |
Cash Flows From Investing Activities: | ||
Purchases of property and equipment | (205) | (72) |
Proceeds on sale of building | 9,765 | |
Acquisition of licenses | (41) | (20) |
Net cash provided by (used in) investing activities | 9,519 | (92) |
Cash Flows From Financing Activities: | ||
Net (repayments) proceeds of line of credit | (1,800) | 95 |
Repayments of long-term debt | (3,037) | (189) |
Proceeds from exercise of stock options | 131 | 18 |
Net cash used in financing activities | (4,706) | (76) |
Net decrease in cash | (190) | (72) |
Cash, beginning of period | 559 | 168 |
Cash, end of period | 369 | 96 |
Supplemental Cash Flow Information: | ||
Cash paid for interest | 100 | 273 |
Non cash investing and financing activities: | ||
Capital expenditures financed by notes payable | 5 | 15 |
Conversion of subordinated convertible debt to common stock | $ 140 | $ 455 |
Company and Basis of Consolidat
Company and Basis of Consolidation | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Company and Basis of Consolidation | Note 1 - Company and Basis of Consolidation Blonder Tongue Laboratories, Inc. (together with its consolidated subsidiaries, the " Company ") is a technology-development and manufacturing company that delivers television signal encoding, transcoding, digital transport, and broadband product solutions to the cable markets the Company serves, including the multi-dwelling unit market, the lodging/hospitality market and the institutional market, including hospitals, prisons and schools, primarily throughout the United States and Canada. The consolidated financial statements include the accounts of Blonder Tongue Laboratories, Inc. and its wholly-owned subsidiaries. Significant intercompany balances and transactions have been eliminated in consolidation. The accompanying unaudited condensed consolidated interim financial statements as of September 30, 2019 and for the three and nine months ended September 30, 2019 and 2018 have been prepared in accordance with accounting principles generally accepted in the United States of America (" GAAP SEC |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2- Summary of Significant Accounting Policies (a) Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company's significant estimates include stock-based compensation and reserves related to accounts receivable, inventories and deferred tax assets. Actual results could differ from those estimates. (b) Earnings (loss) Per Share Earnings (loss) per share is calculated in accordance with ASC Topic 260 "Earnings Per Share," which provides for the calculation of "basic" and "diluted" earnings (loss) per share. Basic earnings (loss) per share includes no dilution and is computed by dividing net earnings (loss) by the weighted average number of common shares outstanding for the period. Diluted earnings (loss) per share reflect, in periods in which they have a dilutive effect, the effect of potential issuances of common shares. The following table shows the calculation of diluted shares using the treasury stock method: Three months ended Nine months ended 2019 2018 2019 2018 Weighted average shares used in computation of basic earnings (loss) per shares 9,631 9,270 9,583 8,836 Total dilutive effect of stock options - - 388 - Weighted average shares used in computation of diluted earnings (loss) per share 9,631 9,270 9,971 8,836 The diluted share base excludes the following potential common shares due to their antidilutive effect: Three months ended Nine months ended 2019 2018 2019 2018 Stock options 3,021 1,152 2,544 1,032 Warrants 100 100 100 100 Convertible debt - 374 - 374 3,121 1,626 2,644 1,506 (c) Adoption of Recent Accounting Pronouncements In June 2018, the FASB issued ASU No. 2018-07, Compensation – Stock Compensation (" Topic 718 " ): Improvements to Nonemployee Share-Based Payment Accounting In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) Codification Improvements to Topic 842, Leases (d) Accounting Pronouncements Issued But Not Yet Effective In January 2017, the FASB issued ASU 2017-04, Intangibles—Goodwill and Other Topic 350 ") Simplifying the Test for Goodwill Impairment In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses Topic 326 " ) (e) Liquidity As of September 30, 2019 and December 31, 2018, the Company's working capital was $7,412 and $2,114, respectively. The increase in working capital was primarily due to the receipt of proceeds from the sale of the Old Bridge Facility after paying off the Term Loan and paying down the Revolver under the Sterling Facility. During the nine months ended September 30, 2019, the Company experienced an increase in expenses that, together with the decline in sales and buildup of inventory for our new products, resulted in the Company using $5,003 in its operations. Management is currently reviewing alternatives to address these issues by making adjustments to operating expenses so as to better align expenses with the Company's sales expectations and focusing on new product sales initiatives. In addition, the Company believes that the terms of the new credit agreement which was entered into in October 2019 will provide greater flexibility to finance current and planned operations. Although the Company has a history of cash used in operating activities which may raise doubt about our ability to continue as a going concern, we believe that the new product introductions described above, the ability to reduce operating expenses and the additional liquidity provided under the new credit agreement mitigate this risk While the Company currently believes that its efforts to control expenses and increase sales will improve the Company's liquidity, there can no assurances that our efforts will be successful and/or that the financing available under the new facility or other financing the Company may pursue will be sufficient to allow the Company to continue implementing its business strategy. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2019 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Revenue Recognition | Note 3– Revenue Recognition The Company recognizes revenue when it satisfies a performance obligation by transferring the product or service to the customer, typically at a point in time. Disaggregation of Revenue The following table presents the Company's disaggregated revenues by revenue source: Three months ended Nine months ended 2019 2018 2019 2018 Digital video headend products $ 1,292 $ 2,814 $ 5,482 $ 7,899 Set top boxes 1,498 - 2,691 - Data products 884 1,112 1,989 3,566 HFC distribution products 645 843 1,872 2,345 Analog video headend products 366 411 1,249 1,234 NeXgen 91 - 535 - Contract manufactured products 319 227 393 606 Other 183 219 586 616 $ 5,278 $ 5,626 $ 14,797 $ 16,266 All of the Company's sales are to customers located primarily throughout the United States and Canada. The Company is a technology-development and manufacturing company that delivers a wide range of products and services to the cable entertainment and media industry. Digital video headend products (including encoders) are used by a system operator for acquisition, processing, compression, encoding and management of digital video. Data products give service providers, integrators, and premises owners a means to deliver data, video, and voice-over-coaxial in locations such as hospitality, MDU's, and college campuses, using IP technology. HFC distribution products are used to transport signals from the headend to their ultimate destination in a home, apartment unit, hotel room, office or other terminal location along a fiber optic, coax or HFC distribution network. Analog video headend products are used by a system operator for signal acquisition, processing and manipulation to create an analog channel lineup for further transmission. Contract-manufactured products provides manufacturing, research and development and product support services for other companies' products. Set top boxes are used by cable operators to provide video delivery to customers using IP technology. NeXgen is a two-way forward looking platform that is used to deliver next generation entertainment services in both enterprise and residential locations. The Company also provides technical services, including hands-on training, system design engineering, on-site field support and complete system verification testing. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 4 – Inventories Inventories are summarized as follows: September 30, December 31, Raw Materials $ 3,022 $ 2,581 Work in process 3,435 1,573 Finished Goods 2,005 2,569 8,462 6,723 Less current inventories (8,462 ) (6,172 ) $ - $ 551 Inventories are stated at the lower of cost, determined by the first-in, first-out (" FIFO ") method, or net realizable value. The Company periodically analyzes anticipated product sales based on historical results, current backlog and marketing plans. Based on these analyses, the Company anticipates that certain products will not be sold during the next twelve months. Inventories that are not anticipated to be sold in the next twelve months have been written down to net realizable value. The Company recorded a provision to reduce the carrying amounts of inventories to their net realizable value in the amount of $863 during the nine months ended September 30, 2019. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Note 5 – Debt On December 28, 2016, the Company entered into a Loan and Security Agreement (the " Sterling Agreement ") with Sterling National Bank (" Sterling "). The Sterling Agreement provided the Company with a credit facility in an aggregate amount of $8,500 (the " Sterling Facility ") consisting of a $5,000 asset-based revolving line of credit (the " Revolver ") and, prior to entering into the Consent (defined below), a $3,500 amortizing term loan (the " Term Loan "). The Sterling Facility matures in December 2019. Interest on the Revolver is variable, based upon the 30-day LIBOR rate (2.02% and 2.26% at September 30, 2019 and 2018, respectively) plus a margin of 4.00%. Interest on the Term Loan also is variable, based upon the 30-day LIBOR rate (2.02% and 2.26% at September 30, 2019 and 2018, respectively) plus a margin of 4.50%. The Term Loan amortized at the rate of $19 per month. On March 30, 2017, the Company and Sterling entered into a certain First Amendment to Loan and Security Agreement (the " First Amendment "), pursuant to which, among other things, the parties amended the definitions of certain items used in the calculation of the fixed charge coverage ratio, deferred the first measurement period of the financial covenants contemplated by the Sterling Agreement, from December 31, 2016 to January 31, 2017, and modified certain terms relating to permitted investments by the Company. On February 1, 2019, in connection with the completion of the sale of the Old Bridge Facility and entry into the Lease (as further described in Note 10), the Company entered into a Consent Under Loan and Security Agreement (the " Consent ") with Sterling, pursuant to which, in consideration for Sterling's consent to the Company's sale of the Old Bridge Facility and Sterling's further agreement to execute and deliver a Discharge of Mortgage and Assignment of Leases and Rents (the " Discharge ") to effect the discharge of Sterling's mortgage thereon, the Company was required to apply the proceeds of the sale of the Old Bridge Facility to fully pay, satisfy and discharge the Term Loan and to pay down the Revolver balance to zero (with no reduction in the Revolver commitment by Sterling). The Company paid approximately $3,014 to pay off the Term Loan in connection with the Discharge. In addition, the Company paid down the outstanding balance under the Revolver of approximately $2,086. On March 29, 2019, the Company and Sterling entered into a certain Second Amendment to Loan and Security Agreement (the " Second Amendment "), which replaced the existing fixed charge coverage ratio covenant with a minimum liquidity covenant. That covenant obligates the Company to not permit the sum of its unrestricted cash (as described in the Second Amendment) plus availability under the Revolver to drop below $2,000,000 at any time. The outstanding balances under the Revolver were $803 and $2,603 at September 30, 2019 and December 31, 2018, respectively. All outstanding indebtedness under the Sterling Agreement is secured by all of the assets of the Company and its subsidiaries. On September 19, 2019, the Company and Sterling entered into a certain Third Amendment to Loan and Security Agreement (the " Third Amendment The Sterling Agreement contains customary covenants, including restrictions on the incurrence of additional indebtedness, encumbrances on the Company's assets, the payment of cash dividends or similar distributions, the repayment of any subordinated indebtedness and the sale or other disposition of the Company's assets. In addition, the Company must maintain (i) the minimum liquidity described above and (ii) a leverage ratio of not more than 2.0 to 1.0 for any fiscal month (determined as of the last day of each fiscal month, as calculated for the Company and its consolidated subsidiaries). The Company was not in compliance with the fixed charge coverage ratio covenant under the Sterling Agreement at December 31, 2018 and January 31, 2019. Sterling waived this non-compliance in the Second Amendment. The Company was in compliance with its financial covenants as of September 30, 2019. On October 25, 2019, all outstanding obligations under the Sterling Facility were paid in full and the Sterling Agreement was terminated. See Note 11. |
Subordinated Convertible Debt w
Subordinated Convertible Debt with Related Parties | 9 Months Ended |
Sep. 30, 2019 | |
Subordinated Borrowings [Abstract] | |
Subordinated Convertible Debt with Related Parties | Note 6 – Subordinated Convertible Debt with Related Parties On March 28, 2016, the Company and RLD as borrowers and Robert J. Pallé, as agent (in such capacity " Agent ") and as a lender, together with Carol M. Pallé, Steven Shea and James H. Williams as lenders (collectively, the " Subordinated Lenders ") entered into a certain Amended and Restated Senior Subordinated Convertible Loan and Security Agreement (the " Subordinated Loan Agreement "), pursuant to which the Subordinated Lenders agreed to provide the Company with a delayed draw term loan facility of up to $750 (" Subordinated Loan Facility "), under which individual advances in amounts not less than $50 could be drawn by the Company. Interest on the outstanding balance under the Subordinated Loan Facility from time to time, accrued at 12% per annum (subject to increase under certain circumstances) and was payable monthly in-kind by the automatic increase of the principal amount of the loan on each monthly interest payment date, by the amount of the accrued interest payable at that time (" PIK Interest "); provided, however, that at the option of the Company, it was permitted to pay interest in cash on any interest payment date, in lieu of PIK Interest. The Subordinated Lenders had the option of converting the principal balance of the loan, in whole (unless otherwise agreed by the Company), into shares of the Company's common stock at a conversion price of $0.54 per share (subject to adjustment under certain circumstances). This conversion right was subject to stockholder approval as required by the rules of the NYSE MKT, which approval was obtained on May 24, 2016 at the Company's annual meeting of stockholders. The obligations of the Company and RLD under the Subordinated Loan Agreement were secured by substantially all of the Company's and RLD's assets, including by a mortgage against the Old Bridge Facility (the " Subordinated Mortgage "). The Subordinated Loan Agreement had a maturity date three years from the date of closing, at which time the accreted principal balance of the loan (by virtue of the PIK Interest) plus any other accrued unpaid interest, would be due and payable in full. In connection with the Subordinated Loan Agreement, the Company, Drake, the Subordinated Lenders and Sterling entered into a Subordination Agreement (the " Subordination Agreement "), pursuant to which the rights of the Subordinated Lenders under the Subordinated Loan Agreement and the Subordinated Mortgage were subordinated to the rights of Sterling under the Sterling Agreement and related security documents. The Subordination Agreement precluded the Company from making cash payments of interest in lieu of PIK Interest, in the absence of the prior written consent of Sterling. On April 17, 2018, Robert J. Pallé and Carol Pallé exercised their conversion rights and converted $455 ($350 principal and $105 of accrued interest) of their loan (representing the entire amount of principal and interest outstanding and held by Mr. and Mrs. Pallé on that date) into 842 shares of the Company's common stock. On October 9, 2018, James H. Williams exercised his conversion right and converted $67 ($50 principal and $17 of accrued interest) of his loan (representing the entire amount of principal and interest outstanding and held by Mr. Williams on that date) into 125 shares of the Company's common stock. In connection with the anticipated completion of the sale of the Old Bridge Facility (as described in Note 10), on January 24, 2019, the Company and RLD, as Borrower, the Lenders and the Agent entered into a Debt Conversion and Lien Termination Agreement (the " Conversion and Termination Agreement "). As of the date of the Conversion and Termination Agreement, the Borrower was indebted to Steven L. Shea (" Shea ") for the principal and accrued interest relating to a $100 loan advanced by Shea under the Subordinated Loan Agreement (the " Shea Indebtedness "). In addition, as of the date of the Conversion and Termination Agreement Robert J. Pallé and Carol M. Pallé (collectively, " Initial Lenders "), remained subject to a commitment to lend Borrower up to an additional $250 (the " Additional Commitment "). The Conversion and Termination Agreement provided for (i) the full payment of the Shea Indebtedness (unless such amounts were converted into shares of common stock prior to repayment), (ii) the termination of the Additional Commitment, and (iii) the release and termination of all liens and security interests in the collateral under the Subordinated Loan Documents, including with respect to the Subordinated Mortgages, each to become effective as of the closing of the sale of the Old Bridge Facility. In connection with the execution and delivery of the Conversion and Termination Agreement, Shea provided the Company with a notice of conversion, and upon completion of the sale of the Old Bridge Facility was issued 260 shares of the Company's common stock in full satisfaction of the Shea Indebtedness. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 7 – Related Party Transactions A and shareholder of the Company is a partner of a law firm that serves as outside legal counsel for the Company. During the three and nine month periods ended September 30, 2019 and 2018, this law firm billed the Company approximately $123, $398, $225 and $626, respectively for legal services provided by this firm. Included in accounts payable on the accompanying unaudited condensed balance sheet at September 30, 2019 is approximately $92 owed to this law firm. |
Concentration of Credit Risk
Concentration of Credit Risk | 9 Months Ended |
Sep. 30, 2019 | |
Risks and Uncertainties [Abstract] | |
Concentration of Credit Risk | Note 8 – Concentration of Credit Risk The following table summarizes credit risk with respect to customers as percentage of sales for the three and nine month periods ending September 30, 2019 and 2018, respectively and as a percentage of accounts receivable as of September 30, 2019 and December 31, 2018, respectively: Net sales Three months ended Nine months ended Accounts receivable September 30, September 30, September 30, September 30, September 30, December 31, Customer A 17 % - 12 % - 28 % - Customer B 11 % 23 % 12 % 25 % - 22 % Customer C - 11 % 10 % 13 % - 14 % Customer D - - - - 13 % - Customer E - - - - 10 % - Customer F - - - - - 11 % |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 9 – Commitments and Contingencies Leases The Company leases certain real estate, factory, and office equipment under non-cancellable operating leases at various dates through January 2024. Lease costs and cash paid for the three month period ended September 30, 2019 were $160 and $220, respectively. Lease costs and cash paid for the nine month period ended September 30, 2019 were $381 and $524, respectively. Maturities of the lease liabilities are as follows: For the year ended December 31, Amount Amount remaining year ending December 31, 2019 $ 180 2020 768 2021 809 2022 809 2023 885 Thereafter 77 Lease liability $ 3,528 Litigation The Company from time to time is a party to certain proceedings incidental to the ordinary course of its business, none of which, in the opinion of management, is likely to have a material adverse effect on the Company's business, financial condition, results of operations, or cash flows. |
Building Sale and Leaseback
Building Sale and Leaseback | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Building Sale and Leaseback | Note 10 – Building Sale and Leaseback On February 1, 2019, the Company completed the sale of the Old Bridge Facility to Jake Brown Road, LLC (the " Buyer "). In addition, in connection with the completion of the sale, the Company and the Buyer (as landlord) entered into a lease (the " Lease "), pursuant to which the Company will continue to occupy, and continue to conduct its manufacturing, engineering, sales and administrative functions in the Old Bridge Facility. The sale of the Old Bridge Facility was made pursuant to an Agreement of Sale dated as of August 3, 2018 as amended and extended (collectively, the " Sale Agreement "). Pursuant to the Sale Agreement, at closing, the Buyer paid the Company $10,500. In addition, at closing, the Company advanced to the Buyer the sum of $130, representing a preliminary estimate of the Company's share (as a tenant of the Old Bridge Facility following closing) of property repairs, as contemplated by the Sale Agreement. The Company recognized a gain of approximately $7,175 in connection with the sale. The Lease has an initial term of five years and allows the Company to extend the term for an additional five years following the initial term. The Company is obligated to pay base rent of approximately $837 for the first year of the Lease with the amount of base rent adjusted for each subsequent year to equal 102.5% of the preceding year's base rent. The Lease was accounted for under Topic 842 as a sale and leaseback as described in Note 2. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 11 – Subsequent Events On October 25, 2019, the Company entered into a Loan and Security Agreement (All Assets) (the " Loan Agreement MidCap MidCap Facility The Loan Agreement contains customary covenants, including restrictions on the incurrence of additional indebtedness, the payment of cash dividends or similar distributions, the repayment of any subordinated indebtedness and the encumbrance, sale or other disposition of assets. In addition, the Company must maintain minimum availability of $500 initially with the minimum availability to be reduced to $400 upon the deliverance of an inventory appraisal satisfactory to MidCap. The MidCap Facility replaces the Sterling Facility and the Sterling Agreement, which has been terminated. The Company evaluates events that have occurred after the balance sheet date but before the financial statements are issued. Based upon the evaluation, the Company did not identify any additional recognized or non-recognized subsequent events that would require adjustment to or disclosure in the condensed consolidated financial statements. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Use of Estimates | (a) Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company’s significant estimates include stock-based compensation and reserves related to accounts receivable, inventories and deferred tax assets. Actual results could differ from those estimates. |
Earnings (loss) Per Share | (b) Earnings (loss) Per Share Earnings (loss) per share is calculated in accordance with ASC Topic 260 “Earnings Per Share,” which provides for the calculation of “basic” and “diluted” earnings (loss) per share. Basic earnings (loss) per share includes no dilution and is computed by dividing net earnings (loss) by the weighted average number of common shares outstanding for the period. Diluted earnings (loss) per share reflect, in periods in which they have a dilutive effect, the effect of potential issuances of common shares. The following table shows the calculation of diluted shares using the treasury stock method: Three months ended Nine months ended 2019 2018 2019 2018 Weighted average shares used in computation of basic earnings (loss) per shares 9,631 9,270 9,583 8,836 Total dilutive effect of stock options - - 388 - Weighted average shares used in computation of diluted earnings (loss) per share 9,631 9,270 9,971 8,836 The diluted share base excludes the following potential common shares due to their antidilutive effect: Three months ended Nine months ended 2019 2018 2019 2018 Stock options 3,021 1,152 2,544 1,032 Warrants 100 100 100 100 Convertible debt - 374 - 374 3,121 1,626 2,644 1,506 |
Adoption of Recent Accounting Pronouncements | (c) Adoption of Recent Accounting Pronouncements In June 2018, the FASB issued ASU No. 2018-07, Compensation – Stock Compensation (“ Topic 718 ” ): Improvements to Nonemployee Share-Based Payment Accounting In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) Codification Improvements to Topic 842, Leases |
Accounting Pronouncements Issued But Not Yet Effective | (d) Accounting Pronouncements Issued But Not Yet Effective In January 2017, the FASB issued ASU 2017-04, Intangibles—Goodwill and Other Topic 350 ”) Simplifying the Test for Goodwill Impairment In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses Topic 326 ” ) |
Liquidity | (e) Liquidity As of September 30, 2019 and December 31, 2018, the Company's working capital was $7,412 and $2,114, respectively. The increase in working capital was primarily due to the receipt of proceeds from the sale of the Old Bridge Facility after paying off the Term Loan and paying down the Revolver under the Sterling Facility. During the nine months ended September 30, 2019, the Company experienced an increase in expenses that, together with the decline in sales and buildup of inventory for our new products, resulted in the Company using $5,003 in its operations. Management is currently reviewing alternatives to address these issues by making adjustments to operating expenses so as to better align expenses with the Company's sales expectations and focusing on new product sales initiatives. In addition, the Company believes that the terms of the new credit agreement which was entered into in October 2019 will provide greater flexibility to finance current and planned operations. Although the Company has a history of cash used in operating activities which may raise doubt about our ability to continue as a going concern, we believe that the new product introductions described above, the ability to reduce operating expenses and the additional liquidity provided under the new credit agreement mitigate this risk While the Company currently believes that its efforts to control expenses and increase sales will improve the Company's liquidity, there can no assurances that our efforts will be successful and/or that the financing available under the new facility or other financing the Company may pursue will be sufficient to allow the Company to continue implementing its business strategy. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Schedule of diluted shares using the treasury stock method | Three months ended Nine months ended 2019 2018 2019 2018 Weighted average shares used in computation of basic earnings (loss) per shares 9,631 9,270 9,583 8,836 Total dilutive effect of stock options - - 388 - Weighted average shares used in computation of diluted earnings (loss) per share 9,631 9,270 9,971 8,836 |
Schedulr of diluted potential common shares due to their antidilutive effect | Three months ended Nine months ended 2019 2018 2019 2018 Stock options 3,021 1,152 2,544 1,032 Warrants 100 100 100 100 Convertible debt - 374 - 374 3,121 1,626 2,644 1,506 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Schedule of disaggregation of revenue | Three months ended Nine months ended 2019 2018 2019 2018 Digital video headend products $ 1,292 $ 2,814 $ 5,482 $ 7,899 Set top boxes 1,498 - 2,691 - Data products 884 1,112 1,989 3,566 HFC distribution products 645 843 1,872 2,345 Analog video headend products 366 411 1,249 1,234 NeXgen 91 - 535 - Contract manufactured products 319 227 393 606 Other 183 219 586 616 $ 5,278 $ 5,626 $ 14,797 $ 16,266 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | September 30, December 31, Raw Materials $ 3,022 $ 2,581 Work in process 3,435 1,573 Finished Goods 2,005 2,569 8,462 6,723 Less current inventories (8,462 ) (6,172 ) $ - $ 551 |
Concentration of Credit Risk (T
Concentration of Credit Risk (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Concentration Of Credit Risk [Abstract] | |
Schedule of credit risk with respect to customers as percentage of sales | Net sales Three months ended Nine months ended Accounts receivable September 30, September 30, September 30, September 30, September 30, December 31, Customer A 17 % - 12 % - 28 % - Customer B 11 % 23 % 12 % 25 % - 22 % Customer C - 11 % 10 % 13 % - 14 % Customer D - - - - 13 % - Customer E - - - - 10 % - Customer F - - - - - 11 % |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of maturities of the lease liabilities | For the year ended December 31, Amount Amount remaining year ending December 31, 2019 $ 180 2020 768 2021 809 2022 809 2023 885 Thereafter 77 Lease liability $ 3,528 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Accounting Policies [Abstract] | ||||
Weighted average shares used in computation of basic earnings (loss) per shares | 9,631 | 9,270 | 9,583 | 8,836 |
Total dilutive effect of stock options | 388 | |||
Weighted average shares used in computation of diluted earnings (loss) per share | 9,631 | 9,270 | 9,971 | 8,836 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details 1) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Incremental shares due to their antidilutive effect | 3,121 | 1,626 | 2,644 | 1,506 |
Stock options [Member] | ||||
Incremental shares due to their antidilutive effect | 3,021 | 1,152 | 2,544 | 1,032 |
Warrants [Member] | ||||
Incremental shares due to their antidilutive effect | 100 | 100 | 100 | 100 |
Convertible debt [Member] | ||||
Incremental shares due to their antidilutive effect | 374 | 374 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Details Textual) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2019 | Jan. 02, 2019 | Dec. 31, 2018 | |
Summary of Significant Accounting Policies (Textual) | |||
Right to use asset and liability | $ 3,575 | $ 290 | |
Weighted average remaining lease term | 4 years 3 months 29 days | ||
Operating lease liabilities, weighted average discount rate | 6.50% | ||
Working capital | $ 7,412 | $ 2,114 | |
Sales and buildup of inventory for new product | $ 5,003 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenue Recognition and Deferred Revenue [Abstract] | ||||
Digital video headend products | $ 1,292 | $ 2,814 | $ 5,482 | $ 7,899 |
Set top boxes | 1,498 | 2,691 | ||
Data products | 884 | 1,112 | 1,989 | 3,566 |
HFC distribution products | 645 | 843 | 1,872 | 2,345 |
Analog video headend products | 366 | 411 | 1,249 | 1,234 |
NeXgen | 91 | 535 | ||
Contract manufactured products | 319 | 227 | 393 | 606 |
Other | 183 | 219 | 586 | 616 |
Total | $ 5,278 | $ 5,626 | $ 14,797 | $ 16,266 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Summary of inventories | ||
Raw Materials | $ 3,022 | $ 2,581 |
Work in process | 3,435 | 1,573 |
Finished Goods | 2,005 | 2,569 |
Inventories, gross | 8,462 | 6,723 |
Less current inventories | (8,462) | (6,172) |
Inventories, net | $ 551 |
Inventories (Details Textual)
Inventories (Details Textual) $ in Thousands | Sep. 30, 2019USD ($) |
Inventory Disclosure [Abstract] | |
Carrying amount of inventories to net realizable | $ 863 |
Debt (Details)
Debt (Details) - USD ($) $ in Thousands | 1 Months Ended | 9 Months Ended | |||
Mar. 29, 2019 | Sep. 30, 2019 | Feb. 01, 2019 | Dec. 31, 2018 | Dec. 28, 2016 | |
Debt (Textual) | |||||
Outstanding balances under revolver | $ 803 | $ 2,603 | |||
Revolving Credit Facility [Member] | |||||
Debt (Textual) | |||||
Outstanding balances under revolver | $ 2,000,000 | ||||
Sterling National Bank [Member] | |||||
Debt (Textual) | |||||
Aggregate amount of credit facility | $ 8,500 | ||||
Subordinated indebtedness, description | (i) the minimum liquidity described above and (ii) a leverage ratio of not more than 2.0 to 1.0 for any fiscal month (determined as of the last day of each fiscal month, as calculated for the Company and its consolidated subsidiaries). | ||||
Outstanding balances under revolver | $ 0 | ||||
Loan and security agreement, description | The Company and Sterling entered into a certain Second Amendment to Loan and Security Agreement (the "Second Amendment"), which replaced the existing fixed charge coverage ratio covenant with a minimum liquidity covenant. That covenant obligates the Company to not permit the sum of its unrestricted cash (as described in the Second Amendment) plus availability under the Revolver to drop below $2,000,000 at any time. | ||||
Sterling National Bank [Member] | Revolving Credit Facility [Member] | |||||
Debt (Textual) | |||||
Aggregate amount of credit facility | 5,000 | ||||
Interest on revolver - margin | 4.00% | ||||
Outstanding balances under revolver | 2,086 | ||||
Variable rate basis, description | Interest on the Revolver is variable, based upon the 30-day LIBOR rate (2.02% and 2.26% at September 30, 2019 and 2018, respectively) plus a margin of 4.00%. | ||||
Sterling National Bank [Member] | Term Loan Credit Facility [Member] | |||||
Debt (Textual) | |||||
Aggregate amount of credit facility | $ 3,500 | ||||
Interest on revolver - margin | 4.50% | ||||
Term loan amortize rate | $ 19 | ||||
Outstanding balances under revolver | $ 3,014 | ||||
Variable rate basis, description | Interest on the Term Loan also is variable, based upon the 30-day LIBOR rate (2.02% and 2.26% at September 30, 2019 and 2018, respectively) plus a margin of 4.50%. |
Subordinated Convertible Debt_2
Subordinated Convertible Debt with Related Parties (Details) - Subordinated Loan Facility [Member] - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 9 Months Ended | ||
Oct. 09, 2018 | Apr. 17, 2018 | Mar. 28, 2016 | Sep. 30, 2019 | |
Subordinated Convertible Debt with Related Parties (Textual) | ||||
Subordinated lenders advanced amount | $ 50 | |||
Term loan facility | $ 750 | |||
Subordinated loan facility, interest accrues | 12.00% | |||
Conversion price | $ 0.54 | |||
Conversion of loan amount | $ 67 | $ 455 | ||
Principal amount | 50 | 350 | ||
Accrued interest | $ 17 | $ 105 | ||
Conversion rights and converted common stock | 125 | 842 | ||
Conversion and termination agreement, description | The Borrower was indebted to Steven L. Shea ("Shea") for the principal and accrued interest relating to a $100 loan advanced by Shea under the Subordinated Loan Agreement (the "Shea Indebtedness"). In addition, as of the date of the Conversion and Termination Agreement Robert J. Pallé and Carol M. Pallé (collectively, "Initial Lenders"), remained subject to a commitment to lend Borrower up to an additional $250 (the "Additional Commitment"). | |||
Subordinated loan agreement maturity term | 3 years | |||
Common stock shares facility issued | 260 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Related Party Transactions (Textual) | |||||
Legal services | $ 123 | $ 398 | $ 225 | $ 626 | |
Accounts payable | $ 92 | $ 92 | $ 0 |
Concentration of Credit Risk (D
Concentration of Credit Risk (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Net Sales [Member] | Customer A [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 17.00% | 12.00% | |||
Net Sales [Member] | Customer B [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 11.00% | 23.00% | 12.00% | 25.00% | |
Net Sales [Member] | Customer C [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 11.00% | 10.00% | 13.00% | ||
Net Sales [Member] | Customer D [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | |||||
Net Sales [Member] | Customer E [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | |||||
Net Sales [Member] | Customer F [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | |||||
Accounts Receivable [Member] | Customer A [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 28.00% | ||||
Accounts Receivable [Member] | Customer B [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 22.00% | ||||
Accounts Receivable [Member] | Customer C [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 14.00% | ||||
Accounts Receivable [Member] | Customer D [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 13.00% | ||||
Accounts Receivable [Member] | Customer E [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 10.00% | ||||
Accounts Receivable [Member] | Customer F [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 11.00% |
Commitments and Contingencies_2
Commitments and Contingencies (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Amount remaining year ending December 31, 2019 | $ 180 |
2020 | 768 |
2021 | 809 |
2022 | 809 |
2023 | 885 |
Thereafter | 77 |
Lease liability | $ 3,528 |
Commitments and Contingencies_3
Commitments and Contingencies (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Commitments and Contingencies (Textual) | ||||
Lease expiration date | Jan. 31, 2024 | |||
Lease costs and cash paid | $ 160 | $ 220 | $ 381 | $ 524 |
Building Sale and Leaseback (De
Building Sale and Leaseback (Details) - USD ($) $ in Thousands | Aug. 03, 2018 | Sep. 30, 2019 |
Building Sale and Leaseback (Textual) | ||
Proceeds from sale | $ 10,500 | |
Advance to buyer | 130 | |
Gain on sale | $ 7,175 | |
Lease obligation, description | The Lease has an initial term of five years and allows the Company to extend the term for an additional five years following the initial term. The Company is obligated to pay base rent of approximately $837 for the first year of the Lease with the amount of base rent adjusted for each subsequent year to equal 102.5% of the preceding year's base rent. |
Subsequent Events (Details)
Subsequent Events (Details) - Line of Credit [Member] - Subsequent Event [Member] $ in Thousands | 1 Months Ended |
Oct. 25, 2019USD ($) | |
Term Loan, description | The Company must maintain minimum availability of $500 initially with the minimum availability to be reduced to $400 upon the deliverance of an inventory appraisal satisfactory to MidCap. |
Line of credit facility, percentage | 4.75% |
Line of credit facility | $ 5,000 |