Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2022 | Nov. 04, 2022 | |
Document Information Line Items | ||
Entity Registrant Name | BLONDER TONGUE LABORATORIES, INC. | |
Trading Symbol | NONE | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 13,349,241 | |
Amendment Flag | false | |
Entity Central Index Key | 0001000683 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Document Period End Date | Sep. 30, 2022 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 1-14120 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 52-1611421 | |
Entity Address, Address Line One | One Jake Brown Road | |
Entity Address, City or Town | Old Bridge | |
Entity Address, State or Province | NJ | |
Entity Address, Postal Zip Code | 08857 | |
City Area Code | (732) | |
Local Phone Number | 679-4000 | |
Title of 12(b) Security | NONE | |
Security Exchange Name | NONE | |
Entity Interactive Data Current | Yes |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash | $ 167 | $ 274 |
Accounts receivable, net of allowance for doubtful accounts of $240 as of both September 30, 2022 and December 31,2021, respectively | 3,152 | 1,765 |
Inventories | 4,158 | 4,854 |
Prepaid and other current assets | 756 | 785 |
Total current assets | 8,233 | 7,678 |
Property, plant and equipment, net | 245 | 290 |
License agreements, net | 5 | 7 |
Intangible assets, net | 741 | 755 |
Goodwill | 493 | 493 |
Right of use assets, net | 4,927 | 1,984 |
Other assets, net | 635 | 703 |
Total assets | 15,279 | 11,910 |
Current liabilities: | ||
Line of credit | 4,318 | 2,400 |
Current portion of long-term debt | 69 | 71 |
Current portion of lease liability | 552 | 826 |
Accounts payable | 2,654 | 2,264 |
Accrued compensation | 492 | 298 |
Accrued benefit pension liability | 16 | 16 |
Income taxes payable | 24 | 34 |
Other accrued expenses | 339 | 151 |
Total current liabilities | 8,464 | 6,060 |
Subordinated convertible debt with related parties, net | 1,487 | 1,372 |
Lease liability, net of current portion | 4,240 | 993 |
Long-term debt, net of current portion | 151 | 200 |
Total liabilities | 14,342 | 8,625 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Preferred stock, $.001 par value; authorized 5,000 shares, no shares outstanding | ||
Common stock, $.001 par value; authorized 50,000 and 25,000 shares, 13,336 and 13,011 shares issued and outstanding as of September 30, 2022 and December 31, 2021, respectively | 13 | 13 |
Paid-in capital | 32,175 | 31,513 |
Accumulated deficit | (30,320) | (27,310) |
Accumulated other comprehensive loss | (931) | (931) |
Total stockholders’ equity | 937 | 3,285 |
Total liabilities and stockholders' equity | $ 15,279 | $ 11,910 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parentheticals) - USD ($) shares in Thousands, $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts (in Dollars) | $ 240 | $ 240 |
Preferred stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 5,000 | 5,000 |
Preferred stock, shares outstanding | ||
Common stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 50,000 | 25,000 |
Common stock, shares issued | 13,336 | 13,011 |
Common stock, shares outstanding | 13,336 | 13,011 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Statement [Abstract] | ||||
Net sales | $ 5,262 | $ 4,172 | $ 12,837 | $ 11,761 |
Cost of goods sold | 3,854 | 2,673 | 9,430 | 7,272 |
Gross profit | 1,408 | 1,499 | 3,407 | 4,489 |
Operating expenses: | ||||
Selling | 481 | 642 | 1,518 | 1,807 |
General and administrative | 1,020 | 900 | 2,925 | 2,944 |
Research and development | 382 | 660 | 1,421 | 1,921 |
Total operating expenses | 1,883 | 2,202 | 5,864 | 6,672 |
Loss from operations | (475) | (703) | (2,457) | (2,183) |
Gain on debt forgiveness | 1,769 | |||
Other Income | 619 | 1,804 | ||
Interest Expense | (228) | (117) | (553) | (379) |
(Loss) income before income taxes | (703) | (201) | (3,010) | 1,011 |
Provision for income taxes | ||||
Net (loss) income | $ (703) | $ (201) | $ (3,010) | $ 1,011 |
Basic net (loss) income per share (in Dollars per share) | $ (0.05) | $ (0.02) | $ (0.23) | $ 0.08 |
Diluted net (loss) income per share (in Dollars per share) | $ (0.05) | $ (0.02) | $ (0.23) | $ 0.08 |
Basic weighted average shares outstanding (in Shares) | 13,333 | 12,227,000 | 13,259,000 | 11,956,000 |
Diluted weighted average shares outstanding (in Shares) | 13,333,000 | 12,227,000 | 13,259,000 | 15,311,000 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders’ Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Common Stock | Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Total |
Balance at Dec. 31, 2020 | $ 12 | $ 29,571 | $ (27,394) | $ (952) | $ 1,237 |
Balance (in Shares) at Dec. 31, 2020 | 11,558 | ||||
Net Income (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 | ||||
Balance at Dec. 31, 2020 | $ 12 | 29,571 | (27,394) | (952) | 1,237 |
Balance (in Shares) at Dec. 31, 2020 | 11,558 | ||||
Net Income (loss) | 1,011 | ||||
Balance at Sep. 30, 2021 | $ 12 | 31,078 | (26,383) | (952) | 3,755 |
Balance (in Shares) at Sep. 30, 2021 | 12,388 | ||||
Balance at Mar. 31, 2021 | $ 12 | 30,253 | (27,808) | (952) | 1,505 |
Balance (in Shares) at Mar. 31, 2021 | 11,874 | ||||
Net Income (loss) | 1,626 | 1,626 | |||
Stock-based Compensation | 159 | 159 | |||
Conversion of convertible subordinated debt | 103 | 103 | |||
Conversion of convertible subordinated debt (in Shares) | 104 | ||||
Stock awards for directors’ fees and employee compensation | 51 | 51 | |||
Stock awards for directors’ fees and employee compensation (in Shares) | 35 | ||||
Exercised stock options | |||||
Exercised stock options (in Shares) | 4 | ||||
Exercised stock warrants | 46 | 46 | |||
Exercised stock warrants (in Shares) | 65 | ||||
Balance at Jun. 30, 2021 | $ 12 | 30,612 | (26,182) | (952) | 3,490 |
Balance (in Shares) at Jun. 30, 2021 | 12,082 | ||||
Net Income (loss) | (201) | (201) | |||
Stock-based Compensation | 138 | 138 | |||
Stock issuances | 257 | 257 | |||
Stock issuances (in Shares) | 239 | ||||
Stock awards for directors’ fees and employee compensation | 50 | 50 | |||
Stock awards for directors’ fees and employee compensation (in Shares) | 37 | ||||
Exercised stock options | 6 | 6 | |||
Exercised stock options (in Shares) | 8 | ||||
Exercised stock warrants | 15 | 15 | |||
Exercised stock warrants (in Shares) | 22 | ||||
Balance at Sep. 30, 2021 | $ 12 | 31,078 | (26,383) | (952) | 3,755 |
Balance (in Shares) at Sep. 30, 2021 | 12,388 | ||||
Balance at Dec. 31, 2021 | $ 13 | 31,513 | (27,310) | (931) | 3,285 |
Balance (in Shares) at Dec. 31, 2021 | 13,011 | ||||
Net Income (loss) | (1,154) | (1,154) | |||
Stock-based Compensation | 121 | 121 | |||
Conversion of convertible subordinated debt | 62 | 62 | |||
Conversion of convertible subordinated debt (in Shares) | 104 | ||||
Stock awards for employee compensation | 97 | 97 | |||
Stock awards for employee compensation (in Shares) | 157 | ||||
Balance at Mar. 31, 2022 | $ 13 | 31,793 | (28,464) | (931) | 2,411 |
Balance (in Shares) at Mar. 31, 2022 | 13,272 | ||||
Balance at Dec. 31, 2021 | $ 13 | 31,513 | (27,310) | (931) | 3,285 |
Balance (in Shares) at Dec. 31, 2021 | 13,011 | ||||
Net Income (loss) | (3,010) | ||||
Balance at Sep. 30, 2022 | $ 13 | 32,175 | (30,320) | (931) | 937 |
Balance (in Shares) at Sep. 30, 2022 | 13,336 | ||||
Balance at Mar. 31, 2022 | $ 13 | 31,793 | (28,464) | (931) | 2,411 |
Balance (in Shares) at Mar. 31, 2022 | 13,272 | ||||
Net Income (loss) | (1,153) | (1,153) | |||
Stock-based Compensation | 172 | 172 | |||
Stock awards for employee compensation | 38 | 38 | |||
Stock awards for employee compensation (in Shares) | 54 | ||||
Balance at Jun. 30, 2022 | $ 13 | 32,003 | (29,617) | (931) | 1,468 |
Balance (in Shares) at Jun. 30, 2022 | 13,326 | ||||
Net Income (loss) | (703) | (703) | |||
Stock-based Compensation | 176 | 176 | |||
Stock awards for employee compensation | (4) | (4) | |||
Stock awards for employee compensation (in Shares) | 10 | ||||
Balance at Sep. 30, 2022 | $ 13 | $ 32,175 | $ (30,320) | $ (931) | $ 937 |
Balance (in Shares) at Sep. 30, 2022 | 13,336 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Statement of Cash Flows [Abstract] | ||
Net (loss) income | $ (3,010) | $ 1,011 |
Adjustments to reconcile net (loss) income to cash used in operating activities: | ||
Gain on debt forgiveness | (1,769) | |
Stock based compensation expense | 469 | 427 |
Depreciation | 80 | 95 |
Amortization | 23 | 165 |
Amortization of deferred loan costs | 45 | 45 |
Amortization of subordinated debt discount | 47 | 94 |
Non cash interest expense | 130 | 119 |
Amortization of right of use assets | 618 | 590 |
Fair value adjustment of stock awards | (3) | 160 |
Loss on disposal of right of use assets | 3 | |
Changes in operating assets and liabilities: | ||
Accounts receivable | (1,387) | (29) |
Inventories | 696 | (18) |
Prepaid and other current assets | 29 | (1,286) |
Other assets | 23 | 21 |
Change in lease liability | (588) | (590) |
Accounts payable, accrued compensation, income taxes payable and other accrued expenses | 1,236 | 335 |
Net cash used in operating activities | (1,592) | (627) |
Cash Flows From Investing Activities: | ||
Purchases of property and equipment | (35) | (12) |
Acquisition of licenses | (7) | (55) |
Net cash used in investing activities | (42) | (67) |
Cash Flows From Financing Activities: | ||
Net borrowing (repayments) of line of credit | 1,918 | (87) |
Proceeds from stock issuances | 257 | |
Proceeds from subordinated convertible debt | 700 | |
Proceeds from exercise of stock options | 10 | |
Proceeds from exercise of stock warrants | 61 | |
Repayments of promissory notes | (340) | |
Repayments of long-term debt | (51) | (45) |
Net cash provided by financing activities | 1,527 | 896 |
Net (decrease) increase in cash | (107) | 202 |
Cash, beginning of period | 274 | 69 |
Cash, end of period | 167 | 271 |
Supplemental Cash Flow Information: | ||
Cash paid for interest | 303 | 123 |
Cash paid for income taxes | 10 | 8 |
Non cash investing and financing activities: | ||
Stock paid to employees in lieu of cash | 131 | 312 |
Capital expenditures financed by notes payable | 276 | |
Conversion of subordinated convertible debt to common stock | 62 | 204 |
Right of use assets obtained by lease obligations | $ 3,561 | $ 60 |
Company and Basis of Consolidat
Company and Basis of Consolidation | 9 Months Ended |
Sep. 30, 2022 | |
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 The accompanying unaudited condensed consolidated interim financial statements as of September 30, 2022 and for the three and nine months ended September 30, 2022 and 2021 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, 2022 | |
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) Net (Loss) Income Per Share Net (loss) income per share is calculated in accordance with Accounting Standards Codification ( “ASC” The following table presents the computation of basic and diluted net income per share for the nine months ended September 30, 2021: Income Shares Per-Share Basic EPS $ 1,011 11,956 $ 0.08 Effect of dilutive securities Convertible debt 213 2,079 Warrants 48 Options 1,228 Diluted EPS $ 1,224 15,311 $ 0.08 The diluted share base excludes the following potential common shares due to their antidilutive effect: Three months ended Nine months ended 2022 2021 2022 2021 Stock options 4,893 4,221 4,668 491 Convertible debt 2,229 2,079 2,229 - Warrants - 45 - - 7,122 6,345 6,897 491 (c) Amortization of Debt Discount The Company accounts for the amortization of the debt discount utilizing the effective interest method. (d) Going Concern and COVID-19 Our business has been materially and adversely affected by the outbreak of the Coronavirus or COVID-19. COVID-19, which has been declared by the World Health Organization to be a “pandemic,” has spread to many countries, including the United States, and is impacting domestic and worldwide economic activity. Since being declared a “pandemic”, COVID-19 interfered with our ability to meet with certain customers during 2020 and continued into the first half of 2021. In addition, the COVID-19 outbreak has affected the supply chain for many types of products and materials, particularly those being manufactured in China and other countries where the outbreak has resulted in significant disruptions to ongoing business activities. Beginning in the second quarter of 2021 and continuing into the second quarter of 2022, we experienced a material disruption in our supply chain as it relates to the procurement of certain sole source and other multiple source components utilized in a material portion of several product lines. There are frequent developments regarding the COVID-19 outbreak that may impact our customers, employees and business partners. As a result, it is not possible at this time to estimate the duration or the scope of the impact COVID-19 could have on the Company's business. The Company has experienced and is continuing to experience a significant reduction in sales as a result of its inability to procure parts necessary to manufacture products due to the supply chain issues related to the COVID-19 outbreak. It remains unclear when or whether our supply chain partners will resume their activities at a level where our sales will return to historical levels. 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 September 30, 2022, 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. 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) and amounts available under the Subordinated Loan Facility (see Note 6 below). As of September 30, 2022, the Company had approximately $4,318 outstanding under the MidCap Facility (as defined in Note 5 below) and $520 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. (e) 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 except as disclosed in Note 5. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2022 | |
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. Encoder/transcoder products are used by a system operator for encoding and transcoding of digital video. Encoders accept various input sources (analog and/or digital) and output digitally encoded 4K, UHD, HD or SD video in various output formats. Transcoders convert video files from one codec compression format to another to allow the video to be viewed across different platforms and devices. NXG is a two-way forward-looking platform that is used to deliver next-generation entertainment services in both enterprise and residential locations. Coax 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 coax distribution network. CPE products are used by cable operators to provide video delivery to customers using IP technology. Digital modulation products are used by a system operator for acquisition, processing, compression, and management of digital video. Analog modulation products are used by a system operator for signal acquisition, processing and manipulation to create an analog channel lineup for further transmission. 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 Service agreements and design includes hands-on training, system design engineering, on-site field support, remote support and troubleshooting and complete system verification testing. Fiber optic 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 distribution network. The following table presents the Company’s disaggregated revenues by revenue source. Some of the product categories shown for the three and nine months ended September 30, 2021 have been reclassified to reflect the Company’s current product categories: Three months ended Nine months ended 2022 2021 2022 2021 Encoder and Transcoder products $ 2,177 $ 2,242 $ 5,858 $ 5,349 NXG IP video signal processing products 1,028 420 1,994 1,311 Coax distribution products 537 311 1,157 1,094 CPE products 2 113 29 1,096 Digital modulation products 363 335 785 837 Analog modulation products 80 175 317 657 DOCSIS data products 951 326 2,091 634 Service agreements and design 37 41 270 282 Fiber optic products 74 100 232 252 Other 13 109 104 249 $ 5,262 $ 4,172 $ 12,837 $ 11,761 All of the Company’s sales are to customers located in North America. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2022 | |
Inventories [Abstract] | |
Inventories | Note 4 – Inventories Inventories are summarized as follows: September 30, December 31, Raw Materials $ 2,478 $ 1,824 Work in process 1,429 2,730 Finished Goods 251 300 $ 4,158 $ 4,854 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 $325 and zero during the three months ended September 30, 2022 and 2021, respectively and $547 and zero during the nine months ended September 30, 2022 and 2021, respectively. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2022 | |
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 was initially required to maintain minimum availability of $500, with the minimum availability to be reduced to $400 upon the deliverance of an inventory appraisal satisfactory to MidCap, which occurred during the fourth quarter 2019. 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 On June 14, 2021, the parties entered into a Third Amendment to Loan Agreement (the " Third Amendment On July 30, 2021, the parties entered into a Fourth Amendment to Loan Agreement (the " Fourth Amendment On August 26, 2021, the parties entered into a Fifth Amendment to Loan Agreement (the " Fifth Amendment On December 16, 2021, the parties entered into a Sixth Amendment to Loan Agreement (the “ Sixth Amendment On February 11, 2022, the parties entered into a Seventh Amendment to Loan Agreement (the “ Seventh Amendment On March 3, 2022, the parties entered into an Eighth Amendment to Loan Agreement (the “ Eighth Amendment On April 5, 2022, the Company entered into a Ninth Amendment to Loan Agreement (the “ Ninth Amendment 2022 Over-Advance Facility Pallé Parties On May 5, 2022, the parties entered into a Tenth Amendment to Loan Agreement (the " Tenth Amendment On June 14, 2022, the parties entered into a Eleventh Amendment to Loan Agreement (the " Eleventh Amendment On July 1, 2022, the parties entered into a Twelfth Amendment to Loan Agreement (the " Twelfth Amendment On October 25, 2022, the parties entered into a Thirteenth Amendment to Loan Agreement (the " Thirteenth Amendment On October 28, 2022, the parties entered into a Fourteenth Amendment to Loan Agreement (the " Fourteenth 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 was evidenced by a promissory note, dated as of April 5, 2020 (the “ Note Lender On June 22, 2021, the Company applied to the SBA for full forgiveness of the PPP Loan. On June 30, 2021, the Company received notification that the forgiveness was granted. The Company recorded the $1,769 forgiveness as a gain on debt forgiveness during the year ended December 31, 2021. |
Subordinated Convertible Debt w
Subordinated Convertible Debt with Related Parties | 9 Months Ended |
Sep. 30, 2022 | |
Subordinated Convertible Debt with Related Parties [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 five 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. On May 24, 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 $2 of PIK interest outstanding under the Tranche C Loans were converted into 52 shares of Company common stock in complete satisfaction of their indebtedness. On January 21, 2022, one of the Tranche A Parties submitted an irrevocable notice of conversion under the Tranche A Loans. As a result, $50 of original principal and $12 of PIK interest outstanding under the Tranche A Loans were converted into 104 shares of Company common stock in complete 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 | 9 Months Ended |
Sep. 30, 2022 | |
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 served as outside legal counsel for the Company. During the three-month periods ended September 30, 2022 and 2021, this law firm billed the Company approximately $15 and $116, respectively and during the nine-month periods ended September 30, 2022 and 2021, this law firm billed the Company approximately $413 and $465, respectively for legal services provided by the firm. Included in accounts payable on the accompanying unaudited condensed balance sheet at September 30, 2022 and December 31, 2021 is approximately $408 and $293 owed to this law firm. A different director and shareholder of the Company is engaged to provide consulting services to the Company. At September 30, 2022, $78 was included in accounts payable. |
Concentration of Credit Risk
Concentration of Credit Risk | 9 Months Ended |
Sep. 30, 2022 | |
Concentration of Credit Risk [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 ended September 30, 2022 and 2021: Three months ended Nine months ended 2022 2021 2022 2021 Customer A 15 % - 10 % - Customer B 12 % 13 % 13 % 12 % Customer C - 23 % 12 % 19 % Customer D - 20 % - 15 % Customer E - - 12 % - The following table summarizes credit risk with respect to customers as percentage of accounts receivable: September 30, December 31, 2022 2021 Customer B 12 % 17 % Customer C - 24 % Customer E 14 % - Customer F 11 % - Customer G - 21 % The following table summarizes credit risk with respect to vendors as percentage of purchases for the three-month and nine-month periods ended September 30, 2022 and 2021: Three months ended Nine months ended 2022 2021 2022 2021 Vendor A 24 % 17 % 17 % 15 % Vendor B 15 % - 12 % - Vendor C 12 % 18 % 23 % 19 % Vendor D - 10 % - - The following table summarizes credit risk with respect to vendors as percentage of accounts payable: September 30, December 31, 2022 2021 Vendor A 17 % 28 % Vendor C 11 % - Vendor E - 10 % |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies [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 2029. Lease costs and cash paid for the three-month period ended September 30, 2022 were $193 and $181, respectively. Lease costs and cash paid for the three-month period ended September 30, 2021 were $199 and $200, respectively. Lease costs and cash paid for the nine-month period ended September 30, 2022 were $618 and $588, respectively. Lease costs and cash paid for the nine-month period ended September 30, 2021 were $590 and $590, respectively. On July 29, 2022, the Company extended its lease by another five years, with a new termination date of January 31, 2029. Maturities of the lease liabilities are as follows: For the year ended December 31, Amount Amount remaining year ending December 31, 2022 $ 231 2023 945 2024 957 2025 971 2026 995 Thereafter 2,148 Total 6,247 Less present value discount 1,455 Total operating lease liabilities $ 4,792 As of September 30, 2022, the weighted average remaining lease term is 6.30 years and the weighted average discount rate used to determine the operating lease liabilities was between 6.5% and 8.5%. 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. Promissory Notes In connection with the fulfillment of certain of the Company's purchase orders, the Company is financing expediting fees charged in connection with the purchase orders by delivering a promissory note (the “ Supplier Note th In connection with the continued extension of credit terms, the Company entered into promissory notes (the “ Notes |
Other Income
Other Income | 9 Months Ended |
Sep. 30, 2022 | |
Other Income [Abstract] | |
Other Income | Note 10 – Other Income For the year ended December 31, 2021, the Company accrued payroll tax credits of $1,804, through the Employee Retention Tax Credit program (“ ERTC CAA ARPA |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
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. |
Net (Loss) Income Per Share | (b) Net (Loss) Income Per Share Net (loss) income per share is calculated in accordance with Accounting Standards Codification ( “ASC” The following table presents the computation of basic and diluted net income per share for the nine months ended September 30, 2021: Income Shares Per-Share Basic EPS $ 1,011 11,956 $ 0.08 Effect of dilutive securities Convertible debt 213 2,079 Warrants 48 Options 1,228 Diluted EPS $ 1,224 15,311 $ 0.08 The diluted share base excludes the following potential common shares due to their antidilutive effect: Three months ended Nine months ended 2022 2021 2022 2021 Stock options 4,893 4,221 4,668 491 Convertible debt 2,229 2,079 2,229 - Warrants - 45 - - 7,122 6,345 6,897 491 |
Amortization of Debt Discount | (c) Amortization of Debt Discount The Company accounts for the amortization of the debt discount utilizing the effective interest method. |
Going Concern and COVID-19 | (d) Going Concern and COVID-19 Our business has been materially and adversely affected by the outbreak of the Coronavirus or COVID-19. COVID-19, which has been declared by the World Health Organization to be a “pandemic,” has spread to many countries, including the United States, and is impacting domestic and worldwide economic activity. Since being declared a “pandemic”, COVID-19 interfered with our ability to meet with certain customers during 2020 and continued into the first half of 2021. In addition, the COVID-19 outbreak has affected the supply chain for many types of products and materials, particularly those being manufactured in China and other countries where the outbreak has resulted in significant disruptions to ongoing business activities. Beginning in the second quarter of 2021 and continuing into the second quarter of 2022, we experienced a material disruption in our supply chain as it relates to the procurement of certain sole source and other multiple source components utilized in a material portion of several product lines. There are frequent developments regarding the COVID-19 outbreak that may impact our customers, employees and business partners. As a result, it is not possible at this time to estimate the duration or the scope of the impact COVID-19 could have on the Company's business. The Company has experienced and is continuing to experience a significant reduction in sales as a result of its inability to procure parts necessary to manufacture products due to the supply chain issues related to the COVID-19 outbreak. It remains unclear when or whether our supply chain partners will resume their activities at a level where our sales will return to historical levels. 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 September 30, 2022, 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. 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) and amounts available under the Subordinated Loan Facility (see Note 6 below). As of September 30, 2022, the Company had approximately $4,318 outstanding under the MidCap Facility (as defined in Note 5 below) and $520 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 | (e) 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 except as disclosed in Note 5. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Schedule of basic and diluted net income per share | Income Shares Per-Share Basic EPS $ 1,011 11,956 $ 0.08 Effect of dilutive securities Convertible debt 213 2,079 Warrants 48 Options 1,228 Diluted EPS $ 1,224 15,311 $ 0.08 |
Schedule of potential common shares | Three months ended Nine months ended 2022 2021 2022 2021 Stock options 4,893 4,221 4,668 491 Convertible debt 2,229 2,079 2,229 - Warrants - 45 - - 7,122 6,345 6,897 491 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Revenue Recognition [Abstract] | |
Schedule of disaggregated revenues | Three months ended Nine months ended 2022 2021 2022 2021 Encoder and Transcoder products $ 2,177 $ 2,242 $ 5,858 $ 5,349 NXG IP video signal processing products 1,028 420 1,994 1,311 Coax distribution products 537 311 1,157 1,094 CPE products 2 113 29 1,096 Digital modulation products 363 335 785 837 Analog modulation products 80 175 317 657 DOCSIS data products 951 326 2,091 634 Service agreements and design 37 41 270 282 Fiber optic products 74 100 232 252 Other 13 109 104 249 $ 5,262 $ 4,172 $ 12,837 $ 11,761 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Inventories [Abstract] | |
Schedule of inventories | September 30, December 31, Raw Materials $ 2,478 $ 1,824 Work in process 1,429 2,730 Finished Goods 251 300 $ 4,158 $ 4,854 |
Concentration of Credit Risk (T
Concentration of Credit Risk (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Concentration of Credit Risk [Abstract] | |
Schedule of credit risk with respect to customers as percentage of sales | Three months ended Nine months ended 2022 2021 2022 2021 Customer A 15 % - 10 % - Customer B 12 % 13 % 13 % 12 % Customer C - 23 % 12 % 19 % Customer D - 20 % - 15 % Customer E - - 12 % - |
Schedule of credit risk with respect to customers as percentage of accounts receivable | September 30, December 31, 2022 2021 Customer B 12 % 17 % Customer C - 24 % Customer E 14 % - Customer F 11 % - Customer G - 21 % |
Schedule of credit risk with respect to vendors as percentage of purchases | Three months ended Nine months ended 2022 2021 2022 2021 Vendor A 24 % 17 % 17 % 15 % Vendor B 15 % - 12 % - Vendor C 12 % 18 % 23 % 19 % Vendor D - 10 % - - |
Schedule of credit risk with respect to vendors as percentage of accounts payable | September 30, December 31, 2022 2021 Vendor A 17 % 28 % Vendor C 11 % - Vendor E - 10 % |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies [Abstract] | |
Schedule of maturities of the lease liabilities | For the year ended December 31, Amount Amount remaining year ending December 31, 2022 $ 231 2023 945 2024 957 2025 971 2026 995 Thereafter 2,148 Total 6,247 Less present value discount 1,455 Total operating lease liabilities $ 4,792 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2022 USD ($) | |
Accounting Policies [Abstract] | |
Outstanding amount | $ 4,318 |
Additional availability | $ 520 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - Schedule of basic and diluted net income per share $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2021 USD ($) $ / shares shares | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Basic EPS, Income (Numerator) (in Dollars) | $ | $ 1,011 |
Basic EPS, Shares (Denominator) | 11,956,000 |
Basic EPS, Per-Share Amount (in Dollars per share) | $ / shares | $ 0.08 |
Effect of dilutive securities | |
Diluted EPS, Income (Numerator) (in Dollars) | $ | $ 1,224 |
Diluted EPS, Shares (Denominator) | 15,311,000 |
Diluted EPS, Per-Share Amount (in Dollars per share) | $ / shares | $ 0.08 |
Convertible debt [Member] | |
Effect of dilutive securities | |
Effect of dilutive securities, Income (Numerator) (in Dollars) | $ | $ 213 |
Effect of dilutive securities, Shares (Denominator) | 2,079,000 |
Warrants [Member] | |
Effect of dilutive securities | |
Effect of dilutive securities, Shares (Denominator) | 48,000 |
Options [Member] | |
Effect of dilutive securities | |
Effect of dilutive securities, Shares (Denominator) | 1,228,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details) - Schedule of potential common shares - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Summary of Significant Accounting Policies (Details) - Schedule of potential common shares [Line Items] | ||||
Potential common shares due to their antidilutive effect | 7,122 | 6,345 | 6,897 | 491 |
Stock options [Member] | ||||
Summary of Significant Accounting Policies (Details) - Schedule of potential common shares [Line Items] | ||||
Potential common shares due to their antidilutive effect | 4,893 | 4,221 | 4,668 | 491 |
Convertible debt [Member] | ||||
Summary of Significant Accounting Policies (Details) - Schedule of potential common shares [Line Items] | ||||
Potential common shares due to their antidilutive effect | 2,229 | 2,079 | 2,229 | |
Warrants [Member] | ||||
Summary of Significant Accounting Policies (Details) - Schedule of potential common shares [Line Items] | ||||
Potential common shares due to their antidilutive effect | 45 |
Revenue Recognition (Details) -
Revenue Recognition (Details) - Schedule of disaggregated revenues - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Schedule Of Disaggregated Revenues Abstract | ||||
Encoder and Transcoder products | $ 2,177 | $ 2,242 | $ 5,858 | $ 5,349 |
NXG IP video signal processing products | 1,028 | 420 | 1,994 | 1,311 |
Coax distribution products | 537 | 311 | 1,157 | 1,094 |
CPE products | 2 | 113 | 29 | 1,096 |
Digital modulation products | 363 | 335 | 785 | 837 |
Analog modulation products | 80 | 175 | 317 | 657 |
DOCSIS data products | 951 | 326 | 2,091 | 634 |
Service agreements and design | 37 | 41 | 270 | 282 |
Fiber optic products | 74 | 100 | 232 | 252 |
Other | 13 | 109 | 104 | 249 |
Total | $ 5,262 | $ 4,172 | $ 12,837 | $ 11,761 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Inventories [Abstract] | ||||
Net realizable value | $ 325 | $ 0 | $ 547 | $ 0 |
Inventories (Details) - Schedul
Inventories (Details) - Schedule of inventories - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Schedule Of Inventories Abstract | ||
Raw Materials | $ 2,478 | $ 1,824 |
Work in process | 1,429 | 2,730 |
Finished Goods | 251 | 300 |
Inventory Net | $ 4,158 | $ 4,854 |
Debt (Details)
Debt (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Dec. 01, 2022 | Apr. 10, 2020 | Apr. 07, 2020 | Aug. 26, 2021 | Oct. 25, 2019 | Sep. 30, 2022 | Sep. 30, 2022 | Dec. 31, 2021 | Apr. 05, 2022 | Apr. 05, 2020 | |
Debt (Details) [Line Items] | ||||||||||
Line of credit amount | $ 1,000 | |||||||||
Maintain minimum availability | $ 500 | |||||||||
Term loan, description | 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”), 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. | |||||||||
Maximum amount | $ 400 | |||||||||
Parties paid in advance | $ 200 | |||||||||
Bear interest rate | 1% | |||||||||
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% | |||||||||
Gain on debt | $ 1,769 | |||||||||
Loan Agreement [Member] | ||||||||||
Debt (Details) [Line Items] | ||||||||||
Line of credit amount | $ 5,000 | |||||||||
Interest on revolver - margin | 4.75% | 7.85% | ||||||||
Maintain minimum availability | $ 400 | |||||||||
Subsequent Event [Member] | ||||||||||
Debt (Details) [Line Items] | ||||||||||
Additional over advance | $ 1,500 | |||||||||
MidCap [Member] | ||||||||||
Debt (Details) [Line Items] | ||||||||||
Interest incurred | $ 136 | $ 294 | ||||||||
Parties paid in advance | $ 975 | |||||||||
Pallé Parties [Member] | ||||||||||
Debt (Details) [Line Items] | ||||||||||
Parties paid in advance | $ 100 |
Subordinated Convertible Debt_2
Subordinated Convertible Debt with Related Parties (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||||
May 24, 2021 | Apr. 06, 2021 | Mar. 15, 2021 | Mar. 04, 2021 | Apr. 08, 2020 | Jan. 21, 2022 | Jan. 28, 2021 | Oct. 29, 2020 | Apr. 24, 2020 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Subordinated Convertible Debt with Related Parties (Details) [Line Items] | |||||||||||||
Accrued interest | $ 45 | $ 42 | $ 130 | $ 119 | |||||||||
Stock price (in Dollars per share) | $ 1.31 | ||||||||||||
Discount amount | $ 186 | ||||||||||||
Warrants issued (in Shares) | 42 | ||||||||||||
Warrant exercise price (in Dollars per share) | $ 1 | ||||||||||||
Warrants term | 5 years | ||||||||||||
Interest expense | $ 15 | $ 15 | $ 46 | $ 94 | |||||||||
Tranche B [Member] | |||||||||||||
Subordinated Convertible Debt with Related Parties (Details) [Line Items] | |||||||||||||
Term loan facility | $ 200 | ||||||||||||
Conversion price (in Dollars per share) | $ 0.55 | ||||||||||||
Principal amount | $ 175 | ||||||||||||
Accrued interest | $ 11 | ||||||||||||
Shares of company common stock (in Shares) | 338 | ||||||||||||
Tranche C [Member] | |||||||||||||
Subordinated Convertible Debt with Related Parties (Details) [Line Items] | |||||||||||||
Principal amount | $ 50 | $ 50 | $ 100 | ||||||||||
Accrued interest | $ 2 | $ 1 | $ 1 | ||||||||||
Shares of company common stock (in Shares) | 52 | 51 | 101 | ||||||||||
Tranche A [Member] | |||||||||||||
Subordinated Convertible Debt with Related Parties (Details) [Line Items] | |||||||||||||
Principal amount | $ 50 | ||||||||||||
Accrued interest | $ 12 | ||||||||||||
Shares of company common stock (in Shares) | 104 | ||||||||||||
Subordinated Loan Facility [Member] | |||||||||||||
Subordinated Convertible Debt with Related Parties (Details) [Line Items] | |||||||||||||
Term loan facility | $ 1,500 | ||||||||||||
Subordinated loan facility, interest accrues | 12% | ||||||||||||
Term loan, description | 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”) 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 $1.00. |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Related Party Transactions (Details) [Line Items] | |||||
Legal services | $ 15,000 | $ 116,000 | $ 413,000 | $ 465,000 | |
Legal Services [Member] | |||||
Related Party Transactions (Details) [Line Items] | |||||
Accounts payable | 408,000 | 408,000 | $ 293,000 | ||
Consulting Services [Member] | |||||
Related Party Transactions (Details) [Line Items] | |||||
Accounts payable | $ 78 | $ 78 |
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 | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Customer A [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 15% | 10% | ||
Customer B [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 12% | 13% | 13% | 12% |
Customer C [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 23% | 12% | 19% | |
Customer D [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 20% | 15% | ||
Customer E [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 12% |
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] | 9 Months Ended | |
Sep. 30, 2022 | Dec. 31, 2021 | |
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 | 12% | 17% |
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 | 24% | |
Customer E [Member] | ||
Concentration of Credit Risk (Details) - Schedule of credit risk with respect to customers as percentage of accounts receivable [Line Items] | ||
Concentration risk, percentage | 14% | |
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 | 11% | |
Customer G [Member] | ||
Concentration of Credit Risk (Details) - Schedule of credit risk with respect to customers as percentage of accounts receivable [Line Items] | ||
Concentration risk, percentage | 21% |
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 | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
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 | 24% | 17% | 17% | 15% |
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 | 15% | 12% | ||
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% | 18% | 23% | 19% |
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 | 10% |
Concentration of Credit Risk _4
Concentration of Credit Risk (Details) - Schedule of credit risk with respect to vendors as percentage of accounts payable - Accounts Receivable [Member] | 9 Months Ended | |
Sep. 30, 2022 | Dec. 31, 2021 | |
Vendor A [Member] | ||
Concentration of Credit Risk (Details) - Schedule of credit risk with respect to vendors as percentage of accounts payable [Line Items] | ||
Concentration risk, percentage | 17% | 28% |
Vendor C [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% | |
Vendor E [Member] | ||
Concentration of Credit Risk (Details) - Schedule of credit risk with respect to vendors as percentage of accounts payable [Line Items] | ||
Concentration risk, percentage | 10% |
Commitments and Contingencies_2
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Commitments and Contingencies (Details) [Line Items] | ||||
Lease cost | $ 193 | $ 199 | $ 618 | $ 590 |
Cash paid | $ 181 | $ 200 | $ 588 | $ 590 |
Extended lease termination date | On July 29, 2022, the Company extended its lease by another five years, with a new termination date of January 31, 2029. | |||
Weighted average remaining lease term | 6 years 3 months 18 days | 6 years 3 months 18 days | ||
Principal amount of supplier | $ 630 | $ 630 | ||
Unsecured interest rate, percent | 12% | |||
Promissory note, description | The Company was obligated to repay the principal balance of the note beginning in September 2021 and continuing thereafter for an additional five consecutive monthly installments on the 15th day of each successive calendar month, as follows: September 2021, $100, October 2021, $100, November 2021, $100, December 2021, $100, January 2022, $100 and February 2022, $140. Accrued interest was paid concurrently with each principal installment. Upon a default under the Supplier Note, including the non-payment of principal or interest, the Company's obligations may be accelerated, and the Supplier Note holder may pursue its rights under the Supplier Note and under applicable law. The final February 2022 payment was made in April 2022.In connection with the continued extension of credit terms, the Company entered into promissory notes (the “Notes”) to three vendors of the goods, in the principal amount of approximately $866. The Notes are unsecured and have interest rates varying between 0% and 9% per annum. The Company is obligated to repay the principal balance of the notes beginning in June 2022 and continuing thereafter until fully paid in November 2023. As of September 30, 2022, the amount remaining under the Notes is approximately $526, with approximately $338 to be paid by December 31, 2022. Upon a default under the Notes, including the non-payment of principal or interest, the Company's obligations may be accelerated, and the Note holders may pursue their rights under the Notes and under applicable law. | |||
Minimum [Member] | ||||
Commitments and Contingencies (Details) [Line Items] | ||||
Weighted average discount rate | 6.50% | 6.50% | ||
Maximum [Member] | ||||
Commitments and Contingencies (Details) [Line Items] | ||||
Weighted average discount rate | 8.50% | 8.50% |
Commitments and Contingencies_3
Commitments and Contingencies (Details) - Schedule of maturities of the lease liabilities $ in Thousands | Sep. 30, 2022 USD ($) |
Schedule Of Maturities Of The Lease Liabilities Abstract | |
Amount remaining year ending December 31, 2022 | $ 231 |
2023 | 945 |
2024 | 957 |
2025 | 971 |
2026 | 995 |
Thereafter | 2,148 |
Total | 6,247 |
Less present value discount | 1,455 |
Total operating lease liabilities | $ 4,792 |
Other Income (Details)
Other Income (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||
Aug. 31, 2022 | Jun. 30, 2022 | Nov. 30, 2021 | Oct. 31, 2021 | Aug. 31, 2021 | Jul. 31, 2021 | Apr. 30, 2021 | Dec. 31, 2021 | |
Other Income [Abstract] | ||||||||
Payroll tax credit | $ 1,804 | |||||||
Other cost of operating revenue | $ 20 | $ 198 | $ 195 | $ 219 | $ 181 | $ 115 | $ 577 | |
Maximum credit, description | The CAA and ARPA amendments to the ERTC program provide eligible employers with a tax credit in an amount equal to 70% of qualified wages (including certain health care expenses) that eligible employers pay their employees after January 1, 2021 through September 30, 2021. 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. At September 30, 2022, the Company is still owed $299 in ERTC funds which it expects to receive during the fourth quarter of 2022. |