Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2021 | May 06, 2021 | |
Document Information Line Items | ||
Entity Registrant Name | BLONDER TONGUE LABORATORIES INC | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 11,960,505 | |
Amendment Flag | false | |
Entity Central Index Key | 0001000683 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Document Period End Date | Mar. 31, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity File Number | 1-14120 | |
Entity Incorporation, State or Country Code | DE | |
Entity Interactive Data Current | Yes |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash | $ 56 | $ 69 |
Accounts receivable, net of allowance for doubtful accounts of $275 as of both March 31, 2021 and December 31,2020, respectively | 1,074 | 1,741 |
Inventories | 4,043 | 4,063 |
Prepaid and other current assets | 1,185 | 231 |
Total current assets | 6,358 | 6,104 |
Property, plant and equipment, net | 396 | 429 |
License agreements, net | 30 | 10 |
Intangible assets, net | 884 | 927 |
Goodwill | 493 | 493 |
Right of use assets, net | 2,218 | 2,411 |
Other assets, net | 744 | 756 |
Total assets | 11,123 | 11,130 |
Current liabilities: | ||
Line of credit | 1,238 | 2,145 |
Current portion of long-term debt | 24 | 28 |
Current portion of lease liability | 796 | 794 |
Accounts payable | 2,207 | 2,014 |
Accrued compensation | 638 | 370 |
Accrued benefit pension liability | 17 | 17 |
Income taxes payable | 28 | 28 |
Other accrued expenses | 22 | 138 |
Total current liabilities | 4,970 | 5,534 |
Subordinated convertible debt with related parties, net | 1,280 | 791 |
Lease liability, net of current portion | 1,575 | 1,771 |
Long-term debt, net of current portion | 1,793 | 1,797 |
Total liabilities | 9,618 | 9,893 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Preferred stock, $.001 par value; authorized 5,000 shares, no shares outstanding | ||
Common stock, $.001 par value; authorized 25,000 shares, 11,874 and 11,558 shares issued and outstanding as of March 31, 2021 and December 31, 2020, respectively | 12 | 12 |
Paid-in capital | 30,253 | 29,571 |
Accumulated deficit | (27,808) | (27,394) |
Accumulated other comprehensive loss | (952) | (952) |
Total stockholders’ equity | 1,505 | 1,237 |
Total liabilities and stockholders' equity | $ 11,123 | $ 11,130 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts (in Dollars) | $ 275 | $ 275 |
Preferred stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 5,000 | 5,000 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 25,000 | 25,000 |
Common stock, shares issued | 11,874 | 11,558 |
Common stock, shares outstanding | 11,874 | 11,558 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Statement [Abstract] | ||
Net sales | $ 3,251 | $ 4,050 |
Cost of goods sold | 1,866 | 3,497 |
Gross profit | 1,385 | 553 |
Operating expenses: | ||
Selling | 531 | 728 |
General and administrative | 1,079 | 1,187 |
Research and development | 638 | 657 |
Total operating expenses | 2,248 | 2,572 |
Loss from operations | (863) | (2,019) |
Other Income | 577 | |
Interest Expense | (128) | (61) |
Loss before income taxes | (414) | (2,080) |
Provision for income taxes | ||
Net loss | $ (414) | $ (2,080) |
Basic and diluted net loss per share (in Dollars per share) | $ (0.04) | $ (0.21) |
Basic and diluted weighted average shares outstanding (in Shares) | 11,650 | 9,766 |
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 | Total |
Balance at Dec. 31, 2019 | $ 10 | $ 28,158 | $ (19,920) | $ (885) | $ 7,363 |
Balance (in Shares) at Dec. 31, 2019 | 9,766 | ||||
Net loss | (2,080) | (2,080) | |||
Stock-based Compensation | 118 | 118 | |||
Balance at Mar. 31, 2020 | $ 10 | 28,276 | (22,000) | (885) | 5,401 |
Balance (in Shares) at Mar. 31, 2020 | 9,766 | ||||
Balance at Dec. 31, 2020 | $ 12 | 29,571 | (27,394) | (952) | 1,237 |
Balance (in Shares) at Dec. 31, 2020 | 11,558 | ||||
Net loss | (414) | (414) | |||
Subordinated convertible debt discount | 186 | 186 | |||
Stock-based Compensation | 130 | 130 | |||
Conversion of convertible subordinated debt | 101 | 101 | |||
Conversion of convertible subordinated debt (in Shares) | 101 | ||||
Stock awards for directors’ fees and employee compensation | 261 | 261 | |||
Stock awards for directors’ fees and employee compensation (in Shares) | 172 | ||||
Exercised stock options | 4 | 4 | |||
Exercised stock options (in Shares) | 43 | ||||
Balance at Mar. 31, 2021 | $ 12 | $ 30,253 | $ (27,808) | $ (952) | $ 1,505 |
Balance (in Shares) at Mar. 31, 2021 | 11,874 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash Flows From Operating Activities: | ||
Net loss | $ (414) | $ (2,080) |
Adjustments to reconcile net loss to cash provided by (used in) operating activities: | ||
Stock based compensation expense | 130 | 118 |
Depreciation | 33 | 35 |
Amortization | 59 | 56 |
Amortization of deferred loan costs | 15 | 15 |
Amortization of subordinated debt discount | 39 | |
Non cash interest expense | 37 | |
Amortization of right of use assets | 193 | 190 |
Fair value adjustment of stock awards | 190 | |
Changes in operating assets and liabilities: | ||
Accounts receivable | 667 | 321 |
Inventories | 20 | 829 |
Prepaid and other current assets | (954) | (213) |
Other assets | (3) | (13) |
Change in lease liability | (194) | (188) |
Accounts payable, accrued compensation and other accrued expenses | 416 | 88 |
Net cash provided by (used in) operating activities | 234 | (842) |
Cash Flows From Investing Activities: | ||
Purchases of property and equipment | (6) | |
Acquisition of licenses | (36) | |
Net cash used in investing activities | (36) | (6) |
Cash Flows From Financing Activities: | ||
Net (repayments) proceeds of line of credit | (907) | 365 |
Proceeds from exercise of stock options | 4 | |
Borrowings of subordinated convertible debt | 700 | |
Repayments of long-term debt | (8) | (10) |
Net cash (used in) provided by financing activities | (211) | 355 |
Net decrease in cash | (13) | (493) |
Cash, beginning of period | 69 | 572 |
Cash, end of period | 56 | 79 |
Supplemental Cash Flow Information: | ||
Cash paid for interest | 41 | 49 |
Non cash investing and financing activities: | ||
Capital expenditures financed by notes payable | 3 | |
Conversion of subordinated convertible debt to common stock | $ 101 |
Company and Basis of Consolidat
Company and Basis of Consolidation | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Company and Basis of Consolidation | Note 1 - Company and Basis of Consolidation Blonder Tongue Laboratories, Inc. (together with its consolidated subsidiaries, the “ Company MDU” SMB” The accompanying unaudited condensed consolidated interim financial statements as of March 31, 2021 and for the three months ended March 31, 2021 and 2020 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 | 3 Months Ended |
Mar. 31, 2021 | |
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) Loss Per Share Loss per share is calculated in accordance with Accounting Standards Codification ( “ASC” The diluted share base excludes the following potential common shares due to their antidilutive effect: Three months ended 2021 2020 Stock options 3,982 2,882 Warrants 929 - Convertible debt 2,060 - 6,971 2,882 (c) Amortization of Debt Discount The Company accounts for the amortization of the debt discount utilizing the effective interest method. (d) Adoption of Recent Accounting Pronouncements In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes “Topic 740” (e) Liquidity and Ability to Continue as a Going Concern In March 2020, the World Health Organization declared the outbreak of a novel coronavirus (COVID-19) as a pandemic which continues to spread throughout the United States. On March 21, 2020, the Governor of New Jersey declared a health emergency and issued an order to close all nonessential businesses until further notice. As a maker of telecommunication equipment, the Company is deemed to be an essential business. Nonetheless, out of concern for our workers and pursuant to the government order, the Company has reduced the scope of its operations and where possible, certain workers are telecommuting from their homes. While the Company expects this matter to continue to negatively impact its results of operations, cash flows and financial position, the related impact cannot be reasonably estimated at this time. As disclosed in the Company’s most recent Annual Report on Form 10-K, the Company experienced a decline in sales, a reduction in working capital, a loss from operations and net cash used in operating activities, in conjunction with liquidity constraints. The above factors raised substantial doubt about the Company’s ability to continue as a going concern. As of March 31, 2021, certain of these factors still exist. Accordingly, there still exists substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include any adjustments relating to the recoverability of the recorded assets or the classification of the liabilities that might be necessary should the Company be unable to continue as a going concern. In response to lower than expected sales due to a slowdown in market activities experienced during 2019, exacerbated by the outbreak of the novel coronavirus during the early part of 2020, the Company has continued a multi-phase operational cost-reduction program, which included adjustments to our staffing (in the form of furloughs and both temporary and permanent layoffs) and strategically timed reductions in manufacturing activities, which we believe will improve our ability to continue our operations and meet our obligations to customers. The Company’s primary sources of liquidity have been its existing cash balances, cash generated from operations, amounts available under the MidCap Facility (see Note 5 below), amounts available under the Subordinated Loan Facility (see Note 6 below) and cash generated from the private placement of common stock. As of March 31, 2021, the Company had approximately $1,238 outstanding under the MidCap Facility (as defined in Note 5 below) and $537 of additional availability for borrowing under the MidCap Facility. If anticipated operating results are not achieved and/or the Company is unable to obtain additional financing, it may be required to take additional measures to reduce costs in order to conserve its cash in amounts sufficient to sustain operations and meet its obligations, which measures could have a material adverse effect on the Company’s ability to achieve its intended business objectives and may be insufficient to enable the Company to continue as a going concern. (f) Subsequent Events 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. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2021 | |
Revenue Recognition [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 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 and internet protocol (IP) video. DOCSIS 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 provide manufacturing, research and development and product support services for other companies’ products. CPE products are used by cable operators to provide video delivery to customers using IP technology. NXG is a two-way forward-looking IP digital video signal processing platform that is used to deliver next-generation entertainment services in both enterprise and residential locations. Transcoders convert video streams from one format to another to allow the video to be viewed across different platforms and devices. The Company also provides technical services, including hands-on training, system design engineering, on-site field support and complete system verification testing. The following table presents the Company’s disaggregated revenues by revenue source: Three months ended 2021 2020 Digital video headend products $ 543 $ 1,057 CPE 695 646 DOCSIS data products 28 871 HFC distribution products 427 688 Analog video headend products 243 339 NXG 421 196 Transcoders 736 115 Contract manufactured products 5 44 Other 153 94 $ 3,251 $ 4,050 All of the Company’s sales are to customers located primarily throughout the United States and Canada. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 4 – Inventories Inventories, net of reserves, are summarized as follows: March 31, December 31, Raw Materials $ 1,927 $ 1,706 Work in process 1,200 1,144 Finished Goods 916 1,213 $ 4,043 $ 4,063 Inventories are stated at the lower of cost, determined by the first-in, first-out (“ FIFO 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 zero and $389 during the three months ended March 31, 2021 and 2020, respectively. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Note 5 – Debt Line of Credit 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 has a minimum availability cap of $400. On April 7, 2020, the Company entered into a certain Consent and Amendment to Loan Agreement and Loan Documents with Midcap (the “ MidCap First Amendment On January 8, 2021, the parties entered into a Second Amendment to Loan Agreement (the “ Second Amendment Long-Term Debt On April 10, 2020, the Company received loan proceeds of approximately $1,769 (“ PPP Loan PPP CARES Act Covered Period The PPP Loan is evidenced by a promissory note, dated as of April 5, 2020 (the “ Note Lender Deferral Period As noted above, the principal and accrued interest under the Note evidencing the PPP Loan are forgivable after twenty-four weeks as long the Company has used the loan proceeds for eligible purposes, including payroll, benefits, rent and utilities, and maintains its payroll levels. The amount of loan forgiveness will be reduced if the Company terminates employees or reduces salaries during the eight-week period. The Company used the proceeds for purposes consistent with the PPP. While the Company currently believes that its use of the PPP Loan proceeds will meet the conditions for forgiveness of the PPP Loan, we cannot assure you that we will not take actions that could cause the Company to be ineligible for forgiveness of the PPP Loan, in whole or in part. In order to obtain full or partial forgiveness of the PPP Loan, the Company must request forgiveness and must provide satisfactory documentation in accordance with applicable Small Business Administration (“ SBA Beginning one month following expiration of the Deferral Period, and continuing monthly until 24 months from the date of the Note (the “ Maturity Date |
Subordinated Convertible Debt w
Subordinated Convertible Debt with Related Parties | 3 Months Ended |
Mar. 31, 2021 | |
Subordinated Borrowings [Abstract] | |
Subordinated Convertible Debt with Related Parties | Note 6 – Subordinated Convertible Debt with Related Parties On April 8, 2020, the Company, as borrower, together with Livewire Ventures, LLC (wholly owned by the Company’s Chief Executive Officer, Edward R. Grauch), MidAtlantic IRA, LLC FBO Steven L. Shea IRA (an IRA account for the benefit of the Company’s Chairman of the Board, Steven Shea), Carol M. Pallé and Robert J. Pallé (Company Director and employed as Managing Director-Strategic Accounts) , Anthony J. Bruno (Company Director), and Stephen K. Necessary (Company Director) , as lenders (collectively, the “ Initial Lenders Agent Subordinated Loan Agreement Subordinated Loan Facility PIK Interest On April 8, 2020, the Initial Lenders agreed to provide the Company with a Tranche A term loan facility of $800 of which $600 was advanced to the Company on April 8, 2020, $100 was advanced to the Company on April 17, 2020 and $100 was advanced to the Company on January 12, 2021. The Initial Lenders participating in the Tranche A term loan facility have the option of converting the principal balance of the loan held by each of them, in whole (unless otherwise agreed by the Company), into shares of the Company’s common stock at a conversion price equal to the volume weighted average price of the Common Stock as reported by the NYSE American, during the five trading days preceding April 8, 2020 (the “ Tranche A Conversion Price On April 24, 2020, the Company, the Initial Lenders, Ronald V. Alterio (the Company’s Senior Vice President-Engineering, Chief Technology Officer) and certain additional unaffiliated investors (the “ Additional Lenders Lenders Amendment Tranche B Conversion Price On October 29, 2020, the additional unaffiliated investors as described above, submitted irrevocable notices of conversion under the Tranche B Term Loan. As a result, $175 of original principal and $11 of PIK interest outstanding under the Tranche B Term Loan were converted into 338 shares of Company common stock in full satisfaction of their indebtedness. On January 28, 2021, the Company entered into the Third Amendment to Senior Subordinated Convertible Loan and Security Agreement and Joinder (the “ LSA Third Amendment Tranche C Parties Tranche C Loans On March 15, 2021, one of the Tranche C Parties submitted an irrevocable notice of conversion under the Tranche C Loans. As a result, $100 of original principal and $1 of PIK interest outstanding under the Tranche C Loans were converted into 101 shares of Company common stock in partial satisfaction of their indebtedness. On April 6, 2021, the same Tranche C Party submitted an irrevocable notice of conversion under the Tranche C Loans. As a result, $50 of original principal and $1 of PIK interest outstanding under the Tranche C Loans were converted into 51 shares of Company common stock in partial satisfaction of their indebtedness. The obligations of the Company under the Subordinated Loan Agreement are guaranteed by Drake and are secured by substantially all of the Company’s and Drake’s assets. The Subordinated Loan Agreement has 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 Lenders and MidCap entered into a Subordination Agreement (the “ Subordination Agreement |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 7 – Related Party Transactions A director and shareholder of the Company is a partner of a law firm that serves as outside legal counsel for the Company. During the three-month periods ended March 31, 2021 and 2020, this law firm billed the Company approximately $196 and $152, respectively for legal services provided by the firm. Included in accounts payable on the accompanying unaudited condensed balance sheet at March 31, 2021 and December 31, 2020 is approximately $218 and $183 owed to this law firm. |
Concentration of Credit Risk
Concentration of Credit Risk | 3 Months Ended |
Mar. 31, 2021 | |
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 month periods ended March 31, 2021 and 2020: Three months ended 2021 2020 Customer A 12 % - Customer B 12 % - Customer C 12 % - Customer D - 12 % Customer E - 10 % The following table summarizes credit risk with respect to customers as percentage of accounts receivable: March 31, December 31, 2021 2020 Customer A 18 % 11 % Customer B 16 % 13 % Customer C 13 % - Customer F 22 % 15 % The following table summarizes credit risk with respect to vendors as percentage of purchases for the three-month periods ended March 31, 2020 and 2019: Three months ended 2021 2020 Vendor A 30 % - Vendor B 13 % - Vendor C 12 % - Vendor D - 54 % Vendor E - 16 % The following table summarizes credit risk with respect to vendors as percentage of accounts payable: March 31, December 31, 2021 2020 Vendor B - 11 % Vendor D 29 % 45 % Vendor F 13 % 20 % |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
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 March 31, 2021 were $193 and $194, respectively. Lease costs and cash paid for the three-month period ended March 31, 2020 were $190 and $188, respectively. Maturities of the lease liabilities are as follows: For the year ended December 31, Amount Amount remaining year ending December 31, 2021 $ 711 2022 901 2023 922 2024 77 Thereafter - Total 2,611 Less present value discount 240 Total operating lease liabilities $ 2,371 As of March 31, 2021, the weighted average remaining lease term is 3.04 years and the weighted average discount rate used to determine the operating lease liabilities was 6.5%. 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. |
Other Income
Other Income | 3 Months Ended |
Mar. 31, 2021 | |
Other Income and Expenses [Abstract] | |
Other Income | Note 10 – Other Income In April 2021, the Company received a payroll tax credit of $577 through the Employee Retention Tax Credit (“ ERTC CAA ARPA |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
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. |
Loss Per Share | (b) Loss Per Share Loss per share is calculated in accordance with Accounting Standards Codification ( “ASC” The diluted share base excludes the following potential common shares due to their antidilutive effect: Three months ended 2021 2020 Stock options 3,982 2,882 Warrants 929 - Convertible debt 2,060 - 6,971 2,882 |
Amortization of Debt Discount | (c) Amortization of Debt Discount The Company accounts for the amortization of the debt discount utilizing the effective interest method. |
Adoption of Recent Accounting Pronouncements | (d) Adoption of Recent Accounting Pronouncements In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes “Topic 740” |
Liquidity and Ability to Continue as a Going Concern | (e) Liquidity and Ability to Continue as a Going Concern In March 2020, the World Health Organization declared the outbreak of a novel coronavirus (COVID-19) as a pandemic which continues to spread throughout the United States. On March 21, 2020, the Governor of New Jersey declared a health emergency and issued an order to close all nonessential businesses until further notice. As a maker of telecommunication equipment, the Company is deemed to be an essential business. Nonetheless, out of concern for our workers and pursuant to the government order, the Company has reduced the scope of its operations and where possible, certain workers are telecommuting from their homes. While the Company expects this matter to continue to negatively impact its results of operations, cash flows and financial position, the related impact cannot be reasonably estimated at this time. As disclosed in the Company’s most recent Annual Report on Form 10-K, the Company experienced a decline in sales, a reduction in working capital, a loss from operations and net cash used in operating activities, in conjunction with liquidity constraints. The above factors raised substantial doubt about the Company’s ability to continue as a going concern. As of March 31, 2021, certain of these factors still exist. Accordingly, there still exists substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include any adjustments relating to the recoverability of the recorded assets or the classification of the liabilities that might be necessary should the Company be unable to continue as a going concern. In response to lower than expected sales due to a slowdown in market activities experienced during 2019, exacerbated by the outbreak of the novel coronavirus during the early part of 2020, the Company has continued a multi-phase operational cost-reduction program, which included adjustments to our staffing (in the form of furloughs and both temporary and permanent layoffs) and strategically timed reductions in manufacturing activities, which we believe will improve our ability to continue our operations and meet our obligations to customers. The Company’s primary sources of liquidity have been its existing cash balances, cash generated from operations, amounts available under the MidCap Facility (see Note 5 below), amounts available under the Subordinated Loan Facility (see Note 6 below) and cash generated from the private placement of common stock. As of March 31, 2021, the Company had approximately $1,238 outstanding under the MidCap Facility (as defined in Note 5 below) and $537 of additional availability for borrowing under the MidCap Facility. If anticipated operating results are not achieved and/or the Company is unable to obtain additional financing, it may be required to take additional measures to reduce costs in order to conserve its cash in amounts sufficient to sustain operations and meet its obligations, which measures could have a material adverse effect on the Company’s ability to achieve its intended business objectives and may be insufficient to enable the Company to continue as a going concern. |
Subsequent Events | (f) Subsequent Events 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 (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of diluted potential common shares due to their antidilutive effect | Three months ended 2021 2020 Stock options 3,982 2,882 Warrants 929 - Convertible debt 2,060 - 6,971 2,882 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Revenue Recognition [Abstract] | |
Schedule of disaggregation revenues | Three months ended 2021 2020 Digital video headend products $ 543 $ 1,057 CPE 695 646 DOCSIS data products 28 871 HFC distribution products 427 688 Analog video headend products 243 339 NXG 421 196 Transcoders 736 115 Contract manufactured products 5 44 Other 153 94 $ 3,251 $ 4,050 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories net of reserves | March 31, December 31, Raw Materials $ 1,927 $ 1,706 Work in process 1,200 1,144 Finished Goods 916 1,213 $ 4,043 $ 4,063 |
Concentration of Credit Risk (T
Concentration of Credit Risk (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Risks and Uncertainties [Abstract] | |
Schedule of credit risk with respect to customers as percentage of sales | Three months ended 2021 2020 Customer A 12 % - Customer B 12 % - Customer C 12 % - Customer D - 12 % Customer E - 10 % |
Schedule of credit risk with respect to customers as percentage of accounts receivable | March 31, December 31, 2021 2020 Customer A 18 % 11 % Customer B 16 % 13 % Customer C 13 % - Customer F 22 % 15 % |
Schedule of credit risk with respect to vendors as percentage of purchases | Three months ended 2021 2020 Vendor A 30 % - Vendor B 13 % - Vendor C 12 % - Vendor D - 54 % Vendor E - 16 % |
Schedule of credit risk with respect to vendors as percentage of accounts payable | March 31, December 31, 2021 2020 Vendor B - 11 % Vendor D 29 % 45 % Vendor F 13 % 20 % |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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, 2021 $ 711 2022 901 2023 922 2024 77 Thereafter - Total 2,611 Less present value discount 240 Total operating lease liabilities $ 2,371 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Accounting Policies [Abstract] | |
Borrowing outstanding | $ 1,238 |
Additional availability | $ 537 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - Schedule of diluted potential common shares due to their antidilutive effect - shares | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Incremental shares due to their antidilutive effect | 6,971 | 2,882 |
Stock options [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Incremental shares due to their antidilutive effect | 3,982 | 2,882 |
Warrants [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Incremental shares due to their antidilutive effect | 929 | |
Convertible debt [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Incremental shares due to their antidilutive effect | 2,060 |
Revenue Recognition (Details) -
Revenue Recognition (Details) - Schedule of disaggregation revenues - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Schedule of disaggregation revenues [Abstract] | ||
Digital video headend products | $ 543 | $ 1,057 |
CPE | 695 | 646 |
DOCSIS data products | 28 | 871 |
HFC distribution products | 427 | 688 |
Analog video headend products | 243 | 339 |
NXG | 421 | 196 |
Transcoders | 736 | 115 |
Contract manufactured products | 5 | 44 |
Other | 153 | 94 |
Total | $ 3,251 | $ 4,050 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Net realizable value | $ 0 | $ 389 |
Inventories (Details) - Schedul
Inventories (Details) - Schedule of inventories net of reserves - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Schedule of inventories net of reserves [Abstract] | ||
Raw Materials | $ 1,927 | $ 1,706 |
Work in process | 1,200 | 1,144 |
Finished Goods | 916 | 1,213 |
Inventory Net | $ 4,043 | $ 4,063 |
Debt (Details)
Debt (Details) - USD ($) $ in Thousands | Apr. 10, 2020 | Apr. 07, 2020 | Apr. 05, 2020 | Oct. 25, 2019 | Mar. 31, 2021 |
Debt (Details) [Line Items] | |||||
Term loan, description | the Company entered into a certain Consent and Amendment to Loan Agreement and Loan Documents with Midcap (the “MidCap First Amendment”), which amended the MidCap Facility to, among other things, remove the existing $400 availability block, subject to the same being re-imposed at the rate of approximately $7 per month commencing June 1, 2020. | ||||
Proceeds from loan | $ 1,769 | ||||
Paycheck protection program, description | The PPP, established as part of the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”), provides for loans to qualifying businesses for amounts up to 2.5 times the average monthly payroll expenses of the qualifying business. The PPP Loan and accrued interest are forgivable after twenty-four weeks (the “Covered Period”) as long as the borrower uses the loan proceeds for eligible purposes, including payroll, benefits, rent and utilities, and maintains its payroll levels. The amount of loan forgiveness will be reduced if the borrower terminates employees or reduces salaries during the Covered Period. | ||||
Interest rate | 0.98% | ||||
Debt instrument term, description | 24 months | ||||
Loan Agreement [Member] | |||||
Debt (Details) [Line Items] | |||||
Aggregate amount of credit facility | $ 5,000 | ||||
Interest on revolver - margin | 4.75% | 4.96% |
Subordinated Convertible Debt_2
Subordinated Convertible Debt with Related Parties (Details) - USD ($) $ / shares in Units, $ in Thousands | Apr. 06, 2021 | Mar. 15, 2021 | Mar. 04, 2021 | Apr. 08, 2020 | Jan. 28, 2021 | Oct. 29, 2020 | Apr. 24, 2020 | Mar. 31, 2021 | Mar. 31, 2020 |
Subordinated Convertible Debt with Related Parties (Details) [Line Items] | |||||||||
Accrued interest | $ 37 | $ 0 | |||||||
Stock price (in Dollars per share) | $ 1.31 | ||||||||
Discount amount | $ 186 | ||||||||
Warrants issued (in Shares) | 42 | ||||||||
Warrants exercise price (in Dollars per share) | $ 1 | ||||||||
Subordinated loan agreement maturity term | 3 years | ||||||||
Tranche B [Member] | |||||||||
Subordinated Convertible Debt with Related Parties (Details) [Line Items] | |||||||||
Term loan facilit | $ 200 | ||||||||
Conversion price (in Dollars per share) | $ 0.55 | ||||||||
Principal amount | $ 175 | ||||||||
Accrued interest | $ 11 | ||||||||
Common stock shares facility issued (in Shares) | 338 | ||||||||
Tranche C [Member] | |||||||||
Subordinated Convertible Debt with Related Parties (Details) [Line Items] | |||||||||
Principal amount | $ 100 | ||||||||
Accrued interest | $ 1 | ||||||||
Common stock shares facility issued (in Shares) | 101 | ||||||||
Tranche C [Member] | Subsequent Event [Member] | |||||||||
Subordinated Convertible Debt with Related Parties (Details) [Line Items] | |||||||||
Principal amount | $ 50 | ||||||||
Accrued interest | $ 1 | ||||||||
Common stock shares facility issued (in Shares) | 51 | ||||||||
Subordinated Loan Facility [Member] | |||||||||
Subordinated Convertible Debt with Related Parties (Details) [Line Items] | |||||||||
Term loan facilit | $ 1,500 | ||||||||
Subordinated loan facility, interest accrues | 12.00% | ||||||||
Term loan, description | the Initial Lenders agreed to provide the Company with a Tranche A term loan facility of $800 of which $600 was advanced to the Company on April 8, 2020, $100 was advanced to the Company on April 17, 2020 and $100 was advanced to the Company on January 12, 2021. The Initial Lenders participating in the Tranche A term loan facility have the option of converting the principal balance of the loan held by each of them, in whole (unless otherwise agreed by the Company), into shares of the Company’s common stock at a conversion price equal to the volume weighted average price of the Common Stock as reported by the NYSE American, during the five trading days preceding April 8, 2020 (the “Tranche A Conversion Price”) which was calculated at $0.593. | ||||||||
Subordinated convertible loan and security agreement, description | the Company entered into the Third Amendment to Senior Subordinated Convertible Loan and Security Agreement and Joinder (the “LSA Third Amendment”) with the Tranche A Parties, the Tranche B Parties (that had not previously converted the loans attributable to each of them into shares of Common Stock), the Agent and certain other investors (the “Tranche C Parties”). Pursuant to the LSA Third Amendment, the parties agreed to increase the aggregate loan limit from $1,500 to $1,600 and the Tranche C Parties agreed to provide the Company with a commitment for a $600 term loan facility, all of which was advanced to the Company on January 29, 2021 (the “Tranche C Loans”). As is the case with the loans provided by the Tranche A Parties and Tranche B Parties, interest on the Tranche C Loans accrues at 12% per annum and is payable monthly in-kind, by the automatic increase of the principal amount of the loans on each monthly interest payment date, by the amount of the accrued interest payable at that time. The Company, at its option, may pay any interest due on the Tranche C Loans in cash on any interest payment date in lieu of PIK Interest. The Tranche C Parties also have the option, following the stockholder approval described in the next sentence, of converting the accreted principal balance of the Tranche C Loans attributable to each of them into shares of the Company’s common stock at a conversion price of $1.00. |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Related Party Transactions [Abstract] | ||
Legal services | $ 196 | $ 152 |
Accounts payable | $ 218 | $ 183 |
Concentration of Credit Risk (D
Concentration of Credit Risk (Details) - Schedule of credit risk with respect to customers as percentage of sales - Net Sales [Member] | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Customer A [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 12.00% | |
Customer B [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 12.00% | |
Customer C [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 12.00% | |
Customer D [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 12.00% | |
Customer E [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 10.00% |
Concentration of Credit Risk _2
Concentration of Credit Risk (Details) - Schedule of credit risk with respect to customers as percentage of accounts receivable - Accounts Receivable [Member] | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Customer A [Member] | ||
Concentration of Credit Risk (Details) - Schedule of credit risk with respect to customers as percentage of accounts receivable [Line Items] | ||
Concentration risk, percentage | 18.00% | 11.00% |
Customer B [Member] | ||
Concentration of Credit Risk (Details) - Schedule of credit risk with respect to customers as percentage of accounts receivable [Line Items] | ||
Concentration risk, percentage | 16.00% | 13.00% |
Customer C [Member] | ||
Concentration of Credit Risk (Details) - Schedule of credit risk with respect to customers as percentage of accounts receivable [Line Items] | ||
Concentration risk, percentage | 13.00% | |
Customer F [Member] | ||
Concentration of Credit Risk (Details) - Schedule of credit risk with respect to customers as percentage of accounts receivable [Line Items] | ||
Concentration risk, percentage | 22.00% | 15.00% |
Concentration of Credit Risk _3
Concentration of Credit Risk (Details) - Schedule of credit risk with respect to vendors as percentage of purchases - Purchases [Member] | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Vendor A [Member] | ||
Concentration of Credit Risk (Details) - Schedule of credit risk with respect to vendors as percentage of purchases [Line Items] | ||
Concentration risk, percentage | 30.00% | |
Vendor B [Member] | ||
Concentration of Credit Risk (Details) - Schedule of credit risk with respect to vendors as percentage of purchases [Line Items] | ||
Concentration risk, percentage | 13.00% | |
Vendor C [Member] | ||
Concentration of Credit Risk (Details) - Schedule of credit risk with respect to vendors as percentage of purchases [Line Items] | ||
Concentration risk, percentage | 12.00% | |
Vendor D [Member] | ||
Concentration of Credit Risk (Details) - Schedule of credit risk with respect to vendors as percentage of purchases [Line Items] | ||
Concentration risk, percentage | 54.00% | |
Vendor E [Member] | ||
Concentration of Credit Risk (Details) - Schedule of credit risk with respect to vendors as percentage of purchases [Line Items] | ||
Concentration risk, percentage | 16.00% |
Concentration of Credit Risk _4
Concentration of Credit Risk (Details) - Schedule of credit risk with respect to vendors as percentage of accounts payable - Accounts Payable [Member] | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Vendor B [Member] | ||
Concentration of Credit Risk (Details) - Schedule of credit risk with respect to vendors as percentage of accounts payable [Line Items] | ||
Concentration risk, percentage | 11.00% | |
Vendor D [Member] | ||
Concentration of Credit Risk (Details) - Schedule of credit risk with respect to vendors as percentage of accounts payable [Line Items] | ||
Concentration risk, percentage | 29.00% | 45.00% |
Vendor F [Member] | ||
Concentration of Credit Risk (Details) - Schedule of credit risk with respect to vendors as percentage of accounts payable [Line Items] | ||
Concentration risk, percentage | 13.00% | 20.00% |
Commitments and Contingencies_2
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Lease cost | $ 193 | $ 190 |
Cash paid | $ 194 | $ 188 |
Weighted average remaining lease term | 3 years 14 days | |
Weighted average discount rate | 6.50% |
Commitments and Contingencies_3
Commitments and Contingencies (Details) - Schedule of maturities of the lease liabilities $ in Thousands | Dec. 31, 2020USD ($) |
Schedule of maturities of the lease liabilities [Abstract] | |
Amount remaining year ending December 31, 2021 | $ 711 |
2022 | 901 |
2023 | 922 |
2024 | 77 |
Thereafter | |
Total | 2,611 |
Less present value discount | 240 |
Total operating lease liabilities | $ 2,371 |
Other Income (Details)
Other Income (Details) - Subsequent Event [Member] $ in Thousands | 1 Months Ended |
Apr. 30, 2021USD ($) | |
Other Income (Details) [Line Items] | |
Payroll tax credit | $ 577 |
Percentage of tax credit | 70.00% |
Maximum credit, description | The maximum amount of qualified wages taken into account with respect to each employee for each calendar quarter is $10,000, so that the maximum credit that an eligible employer may claim for qualified wages paid to any employee is $7,000 per quarter. For purposes of the amended ERTC, an eligible employer is defined as having experienced a significant (20% or more) decline in gross receipts during each 2021 calendar quarter when compared with the same quarter in 2019. The credit is taken against the Company’s share of Social Security Tax when the Company’s payroll provider files the applicable quarterly tax filings on Form 941. |