Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Nov. 01, 2019 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2019 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2019 | |
Entity Registrant Name | COMMUNICATIONS SYSTEMS INC | |
Entity Central Index Key | 0000022701 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Title of 12(b) Security | Common Stock, par value , $.05 per share | |
Trading Symbol | JCS | |
Security Exchange Name | NASDAQ | |
Entity Common Stock, Shares Outstanding | 9,281,023 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 14,621,921 | $ 11,056,426 |
Restricted cash | 677,269 | |
Investments | 5,502,752 | |
Trade accounts receivable, less allowance for doubtful accounts of $178,000 and $136,000, respectively | 12,950,442 | 13,401,042 |
Inventories | 12,586,500 | 16,175,616 |
Prepaid income taxes | 82,275 | 148,036 |
Other current assets | 1,568,326 | 1,553,972 |
TOTAL CURRENT ASSETS | 47,989,485 | 42,335,092 |
PROPERTY, PLANT AND EQUIPMENT, net | 9,303,323 | 10,962,239 |
OTHER ASSETS: | ||
Deferred income taxes | 19,068 | 19,068 |
Operating lease right of use asset | 395,574 | |
Other assets, net | 4,765 | |
TOTAL OTHER ASSETS | 414,642 | 23,833 |
TOTAL ASSETS | 57,707,450 | 53,321,164 |
CURRENT LIABILITIES: | ||
Accounts payable | 4,510,344 | 5,394,981 |
Accrued compensation and benefits | 2,934,110 | 2,892,199 |
Operating lease liability | 109,354 | |
Other accrued liabilities | 3,344,177 | 3,168,049 |
Dividends payable | 197,220 | 184,541 |
TOTAL CURRENT LIABILITIES | 11,095,205 | 11,639,770 |
LONG TERM LIABILITIES: | ||
Long-term compensation plans | 90,642 | |
Uncertain tax positions | 28,267 | |
Operating lease liability | 265,192 | |
TOTAL LONG-TERM LIABILITIES | 355,834 | 28,267 |
COMMITMENTS AND CONTINGENCIES (Footnote 9) | ||
STOCKHOLDERS' EQUITY | ||
Preferred stock, par value $1.00 per share; 3,000,000 shares authorized; none issued | ||
Common stock, par value $.05 per share; 30,000,000 shares authorized; 9,308,820 and 9,158,438 shares issued and outstanding, respectively | 465,441 | 457,922 |
Additional paid-in capital | 43,189,025 | 42,680,499 |
Retained earnings (accumulated deficit) | 3,435,845 | (734,001) |
Accumulated other comprehensive loss | (833,900) | (751,293) |
TOTAL STOCKHOLDERS' EQUITY | 46,256,411 | 41,653,127 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 57,707,450 | $ 53,321,164 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Condensed Consolidated Balance Sheets [Abstract] | ||
Trade accounts receivable, allowance for doubtful accounts | $ 178 | $ 136 |
Preferred stock, par value | $ 1 | $ 1 |
Preferred stock, shares authorized | 3,000,000 | 3,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $ 0.05 | $ 0.05 |
Common stock, shares authorized | 30,000,000 | 30,000,000 |
Common stock, shares issued | 9,308,820 | 9,158,438 |
Common stock, shares outstanding | 9,308,820 | 9,158,438 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Condensed Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) [Abstract] | ||||
Sales | $ 18,222,980 | $ 15,291,993 | $ 50,346,350 | $ 47,103,837 |
Cost of sales | 10,485,429 | 10,051,419 | 30,473,832 | 32,699,559 |
Gross profit | 7,737,551 | 5,240,574 | 19,872,518 | 14,404,278 |
Operating expenses: | ||||
Selling, general and administrative expenses | 6,108,756 | 6,842,348 | 18,327,186 | 20,702,476 |
Total operating expenses | 6,108,756 | 6,842,348 | 18,327,186 | 20,702,476 |
Operating profit (loss) | 1,628,795 | (1,601,774) | 1,545,332 | (6,298,198) |
Other income (expenses): | ||||
Investment and other income | 108,349 | 70,638 | 229,981 | 263,890 |
(Loss) gain on sale of assets | (6,717) | (6,147) | 2,008 | 10,904 |
Gain on sale of FutureLink Fiber business line | 2,966,906 | |||
Interest and other expense | (9,696) | (9,586) | (28,734) | (28,774) |
Other income, net | 91,936 | 54,905 | 3,170,161 | 246,020 |
Income (Loss) from operations before income taxes | 1,720,731 | (1,546,869) | 4,715,493 | (6,052,178) |
Income tax expense (benefit) | (17,128) | (2,137) | (35,657) | (6,092) |
Net income (loss) | 1,737,859 | (1,544,732) | 4,751,150 | (6,046,086) |
Other comprehensive (loss) income, net of tax: | ||||
Unrealized loss (gain) on available-for-sale securities | (925) | 2,403 | (522) | 405 |
Foreign currency translation adjustment | (63,037) | (15,357) | (82,085) | (86,262) |
Total other comprehensive loss | (63,962) | (12,954) | (82,607) | (85,857) |
Comprehensive income (loss) | $ 1,673,897 | $ (1,557,686) | $ 4,668,543 | $ (6,131,943) |
Basic net income (loss) per share: | $ 0.19 | $ (0.17) | $ 0.51 | $ (0.66) |
Diluted net income (loss) per share: | $ 0.19 | $ (0.17) | $ 0.51 | $ (0.66) |
Weighted Average Basic Shares Outstanding | 9,317,129 | 9,146,184 | 9,270,125 | 9,093,609 |
Weighted Average Dilutive Shares Outstanding | 9,368,171 | 9,146,184 | 9,278,803 | 9,093,609 |
Dividends declared per share | $ 0.02 | $ 0.04 | $ 0.06 | $ 0.12 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($) | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] | Total |
BALANCE at Dec. 31, 2017 | $ 448,685 | $ 42,006,750 | $ 7,328,671 | $ (613,379) | $ 49,170,727 |
BALANCE, Shares at Dec. 31, 2017 | 8,973,708 | ||||
Net income (loss) | (6,046,086) | (6,046,086) | |||
Issuance of common stock under Employee Stock Purchase Plan | $ 1,053 | 76,964 | 78,017 | ||
Issuance of common stock under Employee Stock Purchase Plan, Shares | 21,053 | ||||
Issuance of common stock to Employee Stock Ownership Plan | $ 5,982 | 419,908 | 425,890 | ||
Issuance of common stock to Employee Stock Ownership Plan, Shares | 119,632 | ||||
Issuance of common stock under Executive Stock Plan | $ 2,175 | 2,175 | |||
Issuance of common stock under Executive Stock Plan, Shares | 43,501 | ||||
Share based compensation | 156,214 | 156,214 | |||
Other share retirements | $ (401) | (37,387) | 9,325 | (28,463) | |
Other share retirements, Shares | (8,017) | ||||
Shareholder dividends | (1,098,502) | (1,098,502) | |||
Other comprehensive loss | (85,857) | (85,857) | |||
BALANCE at Sep. 30, 2018 | $ 457,494 | 42,622,449 | 193,408 | (699,236) | 42,574,115 |
BALANCE, Shares at Sep. 30, 2018 | 9,149,877 | ||||
BALANCE at Jun. 30, 2018 | $ 457,132 | 42,548,812 | 2,104,414 | (686,282) | 44,424,076 |
BALANCE, Shares at Jun. 30, 2018 | 9,142,649 | ||||
Net income (loss) | (1,544,732) | (1,544,732) | |||
Issuance of common stock under Employee Stock Purchase Plan | $ 362 | 27,206 | 27,568 | ||
Issuance of common stock under Employee Stock Purchase Plan, Shares | 7,228 | ||||
Share based compensation | 46,431 | 46,431 | |||
Shareholder dividends | (366,274) | (366,274) | |||
Other comprehensive loss | (12,954) | (12,954) | |||
BALANCE at Sep. 30, 2018 | $ 457,494 | 42,622,449 | 193,408 | (699,236) | 42,574,115 |
BALANCE, Shares at Sep. 30, 2018 | 9,149,877 | ||||
BALANCE at Dec. 31, 2018 | $ 457,922 | 42,680,499 | (734,001) | (751,293) | 41,653,127 |
BALANCE, Shares at Dec. 31, 2018 | 9,158,438 | ||||
Net income (loss) | 4,751,150 | 4,751,150 | |||
Issuance of common stock under Employee Stock Purchase Plan | $ 1,484 | 71,818 | 73,302 | ||
Issuance of common stock under Employee Stock Purchase Plan, Shares | 29,686 | ||||
Issuance of common stock to Employee Stock Ownership Plan | $ 6,641 | 262,995 | 269,636 | ||
Issuance of common stock to Employee Stock Ownership Plan, Shares | 132,826 | ||||
Issuance of common stock under Executive Stock Plan | $ 1,354 | 80,100 | 81,454 | ||
Issuance of common stock under Executive Stock Plan, Shares | 27,075 | ||||
Share based compensation | 276,236 | 276,236 | |||
Other share retirements | $ (1,960) | (182,623) | (11,659) | (196,242) | |
Other share retirements, Shares | (39,205) | ||||
Shareholder dividends | (569,645) | (569,645) | |||
Other comprehensive loss | (82,607) | (82,607) | |||
BALANCE at Sep. 30, 2019 | $ 465,441 | 43,189,025 | 3,435,845 | (833,900) | 46,256,411 |
BALANCE, Shares at Sep. 30, 2019 | 9,308,820 | ||||
BALANCE at Jun. 30, 2019 | $ 465,829 | 43,176,179 | 1,901,373 | (769,938) | 44,773,443 |
BALANCE, Shares at Jun. 30, 2019 | 9,316,576 | ||||
Net income (loss) | 1,737,859 | 1,737,859 | |||
Issuance of common stock under Employee Stock Purchase Plan | $ 410 | 24,298 | 24,708 | ||
Issuance of common stock under Employee Stock Purchase Plan, Shares | 8,209 | ||||
Issuance of common stock under Executive Stock Plan | $ 1,125 | 80,100 | 81,225 | ||
Issuance of common stock under Executive Stock Plan, Shares | 22,500 | ||||
Share based compensation | 87,649 | 87,649 | |||
Other share retirements | $ (1,923) | (179,201) | (13,153) | (194,277) | |
Other share retirements, Shares | (38,465) | ||||
Shareholder dividends | (190,234) | (190,234) | |||
Other comprehensive loss | (63,962) | (63,962) | |||
BALANCE at Sep. 30, 2019 | $ 465,441 | $ 43,189,025 | $ 3,435,845 | $ (833,900) | $ 46,256,411 |
BALANCE, Shares at Sep. 30, 2019 | 9,308,820 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes In Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Condensed Consolidated Statements of Changes in Stockholders' Equity [Abstract] | ||||
Shareholder dividends per share | $ 0.02 | $ 0.04 | $ 0.06 | $ 0.12 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income (loss) | $ 4,751,150 | $ (6,046,086) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 1,088,684 | 1,695,451 |
Share based compensation | 276,236 | 156,214 |
Gain on sale of FutureLink Fiber business line | (2,966,906) | |
Gain on sale of assets | (2,008) | (10,904) |
Changes in assets and liabilities: | ||
Trade accounts receivable | 434,618 | 704,698 |
Inventories | 2,509,977 | (2,181,679) |
Prepaid income taxes | 65,772 | 29,375 |
Other assets, net | (24,152) | (559,003) |
Accounts payable | (872,027) | (893,578) |
Accrued compensation and benefits | 404,422 | 702,267 |
Other accrued liabilities | 171,215 | 1,441,020 |
Income taxes payable | (28,267) | (4,065) |
Net cash provided by (used in) operating activities | 5,808,714 | (4,966,290) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Capital expenditures | (342,788) | (699,818) |
Purchases of investments | (8,593,711) | (6,580,917) |
Proceeds from the sale of FutureLink Fiber business line | 4,857,214 | |
Proceeds from the sale of property, plant and equipment | 63,139 | 33,763 |
Proceeds from the sale of investments | 3,090,437 | 9,503,744 |
Net cash (used in) provided by investing activities | (925,709) | 2,256,772 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Cash dividends paid | (556,966) | (1,126,870) |
Proceeds from issuance of common stock, net of shares withheld | (41,486) | 51,729 |
Net cash used in financing activities | (598,452) | (1,075,141) |
EFFECT OF FOREIGN EXCHANGE RATE CHANGES ON CASH | (41,789) | (36,210) |
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 4,242,764 | (3,820,869) |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH AT BEGINNING OF PERIOD | 11,056,426 | 12,453,663 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH AT END OF PERIOD | 15,299,190 | 8,632,794 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ||
Income taxes refunded | (73,151) | (31,402) |
Interest paid | 28,508 | 18,969 |
Dividends declared not paid | 197,220 | 368,783 |
Capital expenditures in accounts payable | $ 33,934 | |
Operating right of use assets obtained in exchange for lease obligations | $ 449,995 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2019 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Description of Business Communications Systems, Inc. (herein collectively referred to as “CSI,” “our,” “we” or the “Company”) is a Minnesota corporation organized in 1969 that operates directly and through its subsidiaries located in the United States (U.S.) and the United Kingdom (U.K.). CSI is principally engaged through its Transition Networks, Inc. (“Transition Networks” or “Transition”) subsidiary and business unit in the manufacture and sale of core media conversion products, Ethernet switches, and other connectivity and data transmission products, and through its Suttle, Inc. (“Suttle”) subsidiary and business unit in the manufacture and sale of connectivity infrastructure products for broadband and voice communications. Through its JDL Technologies, Inc. (“JDL Technologies” or “JDL”) business unit, CSI provides technology solutions including virtualization, managed services, wired and wireless network design and implementation, and hybrid cloud infrastructure and deployment. Through its Net2Edge Limited (“Net2Edge”) U.K.-based business unit, the Company develops, manufactures and sells Ethernet-based edge network access products to telecommunications carriers. The Company classifies its businesses into four segments corresponding to the Transition Networks, Suttle, JDL Technologies, and Net2Edge business units. Non-allocated general and administrative expenses are separately accounted for as “Other” in the Company’s segment reporting. Intersegment revenues are eliminated upon consolidation. Financial Statement Presentation The condensed consolidated balance sheets and condensed consolidated statement of changes in stockholders’ equity as of September 30, 2019 and the related condensed consolidated statements of income (loss) and comprehensive income (loss), and the condensed consolidated statements of cash flows for the periods ended September 30, 2019 and 2018 have been prepared by Company management . In the opinion of management, all adjustments (which include only normal recurring adjustments, except where noted) necessary to present fairly the financial position, results of operations, and cash flows at September 30, 2019 and 2018 and for the periods then ended have been made. Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with generally accepted accounting principles in the United States of America have been condensed or omitted. We recommend these condensed consolidated financial statements be read in conjunction with the financial statements and notes thereto included in the Company’s December 31, 2018 Annual Report to Shareholders on Form 10-K. The results of operations for the period ended September 30, 2019 are not necessarily indicative of operating results for the entire year. The presentation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the balance sheet date, and the reported amounts of revenues and expenses during the reporting period. The estimates and assumptions used in the accompanying condensed consolidated financial statements are based upon management’s evaluation of the relevant facts and circumstances as of the time of the financial statements. Actual results could differ from those estimates. Except to the extent updated or described below, the significant accounting policies set forth in Note 1 to the consolidated financial statements in the Company's Annual Report on Form 10-K for the year ended December 31, 2018 , appropriately represent, in all material respects, the current status of accounting policies, and are incorporated herein by reference. Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss, net of tax, are as follows: Foreign Currency Translation Unrealized gain on securities Accumulated Other Comprehensive Loss December 31, 2018 $ (764,000) $ 13,000 $ (751,000) Net current period change (83,000) 0 (83,000) September 30, 2019 $ (847,000) $ 13,000 $ (834,000) |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2019 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | NOTE 2 – REVENUE RECOGNITION Transition Networks & Suttle, Inc. The Company has determined that the revenue recognition for its Suttle and Transition Networks divisions occurs upon delivery of the Company’s connectivity infrastructure and data transmission products. To determine when revenue should be recognized, it is important to determine when the transfer of control has occurred. The Company has determined that control transfers for these products upon shipment or delivery to the customer, in accordance with the agreed upon shipping terms. As such, the timing of revenue recognition occurs at a specific point in time. JDL Technologies, Inc. The Company has determined that the following performance obligations identified in its JDL Technologies, Inc. division are transferred over time: managed services and professional services (time and materials (“T&M”) and fixed price). JDL’s managed services performance obligation is a bundled solution consisting of a series of distinct services that are substantially the same and that have the same pattern of transfer to the customer and are therefore recognized evenly over the term of the contract. T&M professional services arrangements are measured over time with an input method based on hours expended towards satisfying the performance obligation. Fixed price professional service arrangements under a relatively longer-term service will also be measured over time with an input method based on hours expended. The Company has also identified the following performance obligations within its JDL Technologies division that are recognized at a point in time which include resale of third-party hardware and software, installation, arranging for another party to transfer serv ices to the customer, and certain professional services. The resale of third-party hardware and software is recognized at a point in time, when the goods are shipped or delivered to the customer’s location, in accordance with the shipping terms. Installation services are recognized at a point in time when the services are completed. The service the Company provides to arrange for another party to transfer services to the customer is satisfied at a point in time when the Company has transferred control upon the service first being made available to the customer by the third party vendor. The Company reports revenue from these third party services on a net basis in its financial statements. Depending on the nature of the service, certain professional services transfer control at a point in time. The Company evaluates these circumstances on a case by case basis to determine if revenue should be recognized over time or at a point in time. Net2Edge Limited The Company’s Net2Edge division manufactures and markets Ethernet based edge network access devices. The Company principally sells these products through approved partners and integrators outside the United States. The Company has determined that the performance obligation in the Net2Edge division occurs at a point in time, upon the delivery of its connectivity infrastructure and data transmission products. Disaggregation of revenue Revenues are recognized when control of the promised goods or services is transferred to our customers, in an amount that best reflects the consideration we expect to receive in exchange for those goods or services. In accordance with ASC 606-10-50-5, the following tables present how we disaggregate our revenues, which is different for each segment. For Transition Networks, we analyze revenue by region and product group, which is as follows for the three and nine months ended September 30, 2019 and 2018: Transition Networks Sales by Region Three Months Ended September 30 Nine Months Ended September 30 2019 2018 2019 2018 North America $ 11,479,000 $ 8,015,000 $ 26,442,000 $ 22,107,000 Rest of World 426,000 690,000 1,822,000 2,530,000 Europe, Middle East, Africa ("EMEA") 578,000 526,000 2,284,000 1,582,000 $ 12,483,000 $ 9,231,000 $ 30,548,000 $ 26,219,000 Transition Networks Sales by Product Group Three Months Ended September 30 Nine Months Ended September 30 2019 2018 2019 2018 Media converters $ 5,031,000 $ 5,059,000 $ 15,092,000 $ 14,735,000 Ethernet switches and adapters 5,957,000 2,563,000 10,788,000 6,650,000 Other products 1,495,000 1,609,000 4,668,000 4,834,000 $ 12,483,000 $ 9,231,000 $ 30,548,000 $ 26,219,000 For Suttle, we analyze revenues by product and customer group, which is as follows for the three and nine months ended September 30, 2019 and 2018 : Suttle Sales by Product Group Three Months Ended September 30 Nine Months Ended September 30 2019 2018 2019 2018 Structured cabling and connecting system products $ 3,706,000 $ 4,748,000 $ 12,549,000 $ 16,490,000 DSL and other products 945,000 261,000 2,369,000 1,365,000 $ 4,651,000 $ 5,009,000 $ 14,918,000 $ 17,855,000 Suttle Sales by Customer Group Three Months Ended September 30 Nine Months Ended September 30 2019 2018 2019 2018 Communication service providers $ 3,506,000 $ 4,258,000 $ 11,463,000 $ 14,705,000 International 137,000 350,000 645,000 1,696,000 Distributors 414,000 401,000 1,513,000 1,454,000 Other 594,000 - 1,297,000 - $ 4,651,000 $ 5,009,000 $ 14,918,000 $ 17,855,000 For JDL, we analyze revenue by customer group, which is as follows for the three and nine months ended September 30, 2019 and 2018 : JDL Revenue by Customer Group Three Months Ended September 30 Nine Months Ended September 30 2019 2018 2019 2018 Education $ 63,000 $ 185,000 $ 1,831,000 $ 574,000 Healthcare and commercial clients 720,000 674,000 2,111,000 1,908,000 $ 783,000 $ 859,000 $ 3,942,000 $ 2,482,000 The Company does not currently analyze revenue for Net2Edge on a disaggregated basis. Revenues from Net2Edge were $ 611,000 and $ 405,000 for the three months ended September 30, 2019 and 2018 , respectively. Revenues were $ 1,856,000 and $ 1,251,000 for the nine mo nths ended September 30, 2019 and 2018, respectively. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | NOTE 3 – LEASES In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-02, Leases (ASC Topic 842), which is intended to improve financial reporting of leasing transactions by requiring organizations that lease assets to recognize assets and liabilities for the rights and obligations created by leases that extend more than twelve months from the date of the balance sheet. This accounting update also requires additional disclosures surrounding the amount, timing, and uncertainty of cash flows arising from leases. This standard is effective for financial statements issued for annual and interim periods beginning after December 15, 2018 for public business entities. The Company adopted this standard with a cumulative-effect adjustment as of January 1, 2019, the beginning of the period of adoption. The Company has elected the package of practical expedients permitted in ASC Topic 842. Adoption of the new standard resulted in the recording of right of use (“ROU”) assets and lease liabilities of approximately $ 280,000 and $ 259,000 , respectively as of January 1, 2019. ROU assets represent our right to use an underlying asset for the lease term, while lease liabilities represent our obligation to make lease payments arising from the lease. Lease ROU assets and liabilities are recognized at the commencement date of a lease based on the present value of lease payments over the lease term. Because the rate implicit in each individual lease is not readily determinable, the Company uses its incremental borrowing rate to determine the present value of the lease payments. Adoption of the standard did not materially impact the Company’s condensed consolidated balance sheets, consolidated statement of income (loss) and comprehensive income (loss) or condensed consolidated statements of cash flows. The Company has entered into operating leases for two office locations, including one in February 2019. These leases have remaining lease terms of 5 to 8 years. One of the leases includes two options to extend the lease for 5 years each, and the other lease includes an option to terminate the lease in 2022 . One of the leases includes a 3% rent adjustment on each anniversary of the lease. As of September 30, 2019 , total ROU assets and operating lease liabilities were $ 396,000 and $ 375,000 , respectively. All operating lease expense is recognized on a straight-line basis over the lease term. In the three and nine months ended September 30, 2019 , the Company recognized $ 31,000 and $ 92,000 in lease expense, respectively. Information related to the Company’s ROU assets and related lease liabilities were as follows: Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Cash paid for operating leases $ 30,000 $ 80,000 Right-of-use assets obtained in exchange for new operating lease obligations (1) - 450,000 As of September 30, 2019 Weighted-average remaining lease term 3.5 years Weighted-average discount rate 4.5% (1) Includes $262,000 for operating leases existing on January 1, 2019 and $188,000 for operating leases that commenced in the first quarter of 2019. Maturities of lease liabilities as of September 30, 2019 were as follows: Q4 2019 $ 31,000 2020 121,000 2021 126,000 2022 87,000 2023 47,000 Thereafter 4,000 Total lease payments 416,000 Less imputed interest (41,000) Total operating lease liabilities $ 375,000 Future minimum lease commitments under operating leases based on accounting standards applicable as of December 31, 2018 were as follows: Year Ending December 31: 2019 $ 106,000 2020 86,000 2021 86,000 2022 50,000 $ 328,000 As of September 30, 2019 , the Company does no t have any additional future operating lease obligations that have not yet commenced. |
Cash Equivalents and Investment
Cash Equivalents and Investments | 9 Months Ended |
Sep. 30, 2019 | |
Cash Equivalents and Investments [Abstract] | |
Cash Equivalents and Investments | NOTE 4 – CASH EQUIVALENTS AND INVESTMENTS The following tables show the Company’s cash equivalents and available –for-sale securities’ amortized cost, gross unrealized gains, gross unrealized losses and fair value by significant investment category recorded as cash and cash equivalents or short and long term investments as of September 30, 2019 and December 31, 2018 : September 30, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash Equivalents Short-Term Investments Long-Term Investments Cash equivalents: Money Market funds 10,716,000 - - 10,716,000 10,716,000 - - Subtotal 10,716,000 - - 10,716,000 10,716,000 - - Investments: Commercial Paper 4,491,000 - - 4,491,000 - 4,491,000 - Corporate Notes/Bonds 1,012,000 - - 1,012,000 - 1,012,000 - Subtotal 5,503,000 - - 5,503,000 - 5,503,000 - Total $ 16,219,000 $ - $ - $ 16,219,000 $ 10,716,000 $ 5,503,000 $ - December 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash Equivalents Short-Term Investments Long-Term Investments Cash equivalents: Money Market funds $ 8,428,000 $ - $ - $ 8,428,000 $ 8,428,000 $ - $ - Total $ 8,428,000 $ - $ - $ 8,428,000 $ 8,428,000 $ - $ - The Company tests for other than temporary losses on a quarterly basis. The Company intends to hold the investments until it can recover the full principal amount and has the ability to do so based on other sources of liquidity. The Company expects such recoveries to occur prior to the contractual maturities. The Company did no t have any unrealized losses as of September 30, 2019 . The following table summarizes the estimated fair value of our investments, designated as available-for-sale and classified by the contractual maturity date of the securities as of September 30, 2019 : Amortized Cost Estimated Market Value Due within one year $ 5,503,000 $ 5,503,000 The Company did not recognize any gross realized gains or losses during either of the nine-month periods ending September 30, 2019 and 2018 , respectively. If the Company had realized gains or losses, they would be included within investment and other income in the accompanying condensed consolidated statement of income (loss) and comprehensive income (loss). |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2019 | |
Stock-Based Compensation [Abstract] | |
Stock-Based Compensation | NOTE 5 - STOCK-BASED COMPENSATION Employee Stock Purchase Plan Under the Company’s Employee Stock Purchase Plan (“ESPP”), employees are able to acquire shares of common stock at 85 % of the price at the end of each current quarterly plan term. The most recent term ended September 30, 2019 . The ESPP is considered compensatory under current Internal Revenue Service rules. At September 30, 2019 , after giving effect to the shares issued as of that date, 93,905 shares remain available for future issuance under the ESPP. 2011 Executive Incentive Compensation Plan On March 28, 2011 the Board adopted and on May 19, 2011 the Company’s shareholders approved the Company’s 2011 Executive Incentive Compensation Plan (“2011 Incentive Plan”). The 2011 Incentive Plan authorizes incentive awards to officers, key employees and non-employee directors in the form of options (incentive and non-qualified), stock appreciation rights, restricted stock, restricted stock units, performance stock units (“deferred stock”), performance cash units, and other awards in stock, cash, or a combination of stock and cash. The 2011 Incentive Plan, as amended, allows the issuance of up to 2,500,000 shares of common stock. During 2019 , stock options covering 100,769 shares have been awarded to key executive employees and directors. These options expire seven years from the date of award and generally vest 25 % each year beginning one year after the date of award. The Company also granted deferred stock awards of 157,907 shares to key employees during the first quarter of 2019 under the Company’s long-term incentive plan. These awards vest over three years with the first vesting date being March 28, 2020. At September 30, 2019 , 235,630 shares have been issued under the 2011 Incentive Plan, 1,651,801 shares are subject to currently outstanding options, deferred stock awards, and unvested restricted stock units, and 612,569 shares are eligible for grant under future awards. Stock Option Plan for Directors Shares of common stock are reserved for issuance to non-employee directors under options granted by the Company prior to 2011 under its Stock Option Plan for Non-Employee Directors (the “Director Plan”) . Under the Director Plan nonqualified stock options to acquire shares of common stock were automatically granted to each non-employee director concurrent with annual meetings of shareholders in 2010 and earlier years, with t he exercise price of options granted being the fair market value of the common stock on the date of the respective shareholder meetings. Options granted under the Director Plan expire 10 years from date of grant. No options have been granted under the Director Plan since 2011 when the Company amended the Director Plan to prohibit future option grants. As of September 30, 2019 , there were 18,000 shares subject to outstanding options under the Director Plan. Changes in Stock Options Outstanding The following table summarizes changes in the number of outstanding stock options under the 2011 Incentive Plan and the Director Plan over the period December 31, 2018 to September 30, 2019 : Weighted average Weighted average remaining exercise price contractual term Options per share in years Outstanding – December 31, 2018 1,380,492 $ 7.56 4.18 Awarded 100,769 2.69 Exercised (22,500) 3.61 Forfeited (147,127) 10.84 Outstanding – September 30, 2019 1,311,634 6.89 3.88 Exercisable at September 30, 2019 960,165 $ 8.04 3.30 Expected to vest September 30, 2019 1,268,303 6.98 3.83 The aggregate intrinsic value of all options (the amount by which the market price of the stock on the last day of the period exceeded the market price of the stock on the date of grant) outstanding at September 30, 2019 was $ 539,000 . The intrinsic value of all options exercised during the nine months ended September 30, 2019 was $ 33,000 . Net cash proceeds from the exercise of all stock options were $ 0 in each of the nine-month periods ended September 30, 2019 and 2018 . Changes in Deferred Stock Outstanding The following table summarizes the changes in the number of deferred stock shares under the 2011 Incentive Plan over the period December 31, 2018 to September 30, 2019 : Weighted Average Grant Date Shares Fair Value Outstanding – December 31, 2018 270,066 $ 4.48 Granted 157,907 2.64 Vested (4,575) 4.56 Forfeited (65,231) 4.28 Outstanding – September 30, 2019 358,167 3.31 Compensation Expense Share-based compensation expense recognized for the nine months ended September 30, 2019 was $ 276,000 before income taxes and $ 218,000 after income taxes. Share-based compensation expense recognized for the nine months ended September 30 , 2018 was $ 156,000 before income taxes and $ 123,000 after income taxes. Unrecognized compensation expense for the Company’s plans was $ 427,000 at September 30, 2019 and is expected to be recognized over a weighted-average period of 2.3 years. Share-based compensation expense is recorded as a part of selling, general and administrative expenses. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2019 | |
Inventories [Abstract] | |
Inventories | NOTE 6 - INVENTORIES Inventories summarized below are priced at the lower of first-in, first-out cost or net realizable value: September 30 December 31 2019 2018 Finished goods $ 8,110,000 $ 9,608,000 Raw and processed materials 4,477,000 6,568,000 $ 12,587,000 $ 16,176,000 |
Intangible Assets
Intangible Assets | 9 Months Ended |
Sep. 30, 2019 | |
Intangible Assets [Abstract] | |
Intangible Assets | NOTE 7 –INTANGIBLE ASSETS The Company’s identifiable intangible assets with finite lives, included in other assets, net on the condensed consolidated balance sheets, are being amortized over their estimated useful lives and were as follows: September 30, 2019 Gross Carrying Amount Accumulated Amortization Impairment loss Foreign Currency Translation Net Trademarks $ 98,000 $ (78,000) $ - $ (20,000) $ - Customer relationships 491,000 (230,000) (154,000) (107,000) - Technology 229,000 (189,000) - (40,000) - $ 818,000 $ (497,000) $ (154,000) $ (167,000) $ - December 31, 2018 Gross Carrying Amount Accumulated Amortization Impairment loss Foreign Currency Translation Net Trademarks $ 98,000 $ (74,000) $ - $ (19,000) $ 5,000 Customer relationships 491,000 (230,000) (154,000) (107,000) - Technology 229,000 (178,000) - (51,000) - $ 818,000 $ (482,000) $ (154,000) $ (177,000) $ 5,000 Amortization expense on these identifiable intangible assets was $ 5,000 and $ 9,000 for the nine months ended September 30, 2019 and 2018 , respectively. The amortization expense is included in selling, general and administrative expenses. |
Warranty
Warranty | 9 Months Ended |
Sep. 30, 2019 | |
Warranty [Abstract] | |
Warranty | NOTE 8 – WARRANTY We provide reserves for the estimated cost of product warranties at the time revenue is recognized. We estimate the costs of our warranty obligations based on our warranty policy or applicable contractual warranty, historical experience of known product failure rates, and use of materials and service delivery costs incurred in correcting product failures. Management reviews the estimated warranty liability on a quarterly basis to determine its adequacy. The actual warranty expense could differ from the estimates made by the Company based on product performance. The warranty liability is included in other accrued liabilities on the condensed consolidated balance sheet. The following table presents the changes in the Company’s warranty liability for the nine-month periods ended September 30, 2019 and 2018 , respectively, the majority of which relates to a five -year obligation to provide for potential future liabilities for network equipment sales. 2019 2018 Beginning balance $ 594,000 $ 603,000 Amounts charged (credited) to expense (40,000) 116,000 Actual warranty costs paid (28,000) (75,000) Ending balance $ 526,000 $ 644,000 |
Contingencies
Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
Contingencies And Commitments [Abstract] | |
Contingencies | NOTE 9 – CONTINGENCIES In the ordinary course of business, the Company is exposed to legal actions and claims and incurs costs to defend against these actions and claims. Company management is not aware of any outstanding or pending legal actions or claims that could materially affect the Company’s financial position or results of operations. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2019 | |
Debt [Abstract] | |
Debt | NOTE 10 – DEBT Line of Credit The Company has a $15,000,000 line of credit from Wells Fargo Bank, N.A. The Company had no outstanding borrowings against the line of credit at September 30, 2019 or December 31, 2018 . Due to the revolving nature of loans under our credit facility, additional borrowings and periodic repayments and re-borrowings may be made until the maturity date. The total amount available for borrowings under our credit facility at September 30, 2019 was $ 7,018,000 , based on the borrowing base calculation. Interest on borrowings on the credit line is at LIBOR plus 2.0% ( 4.0% at September 30, 2019 ). The credit agreement expires August 12, 2021 and is secured by assets of the Company. Our credit agreement contains financial covenants including a minimum liquidity balance of $10,000,000 . Liquidity is calculated as the sum of unrestricted cash, marketable securities and the availability on the line of credit. The Company was in compliance with its financial covenants at September 30, 2019 . |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2019 | |
Income Taxes [Abstract] | |
Income Taxes | NOTE 11 – INCOME TAXES In the preparation of the Company’s consolidated financial statements, management calculates income taxes based upon the estimated effective rate applicable to operating results for the full fiscal year. This includes estimating the current tax liability as well as assessing differences resulting from different treatment of items for tax and book accounting purposes. These differences result in deferred tax assets and liabilities, which are recorded on the balance sheet. Management analyzes these assets and liabilities regularly and assesses the likelihood that deferred tax assets will be recovered from future taxable income. At September 30, 2019 there was $ 90,000 of net uncertain tax benefit positions that would reduce the effective income tax rate if recognized. The Company records interest and penalties related to income taxes as income tax expense in the condensed consolidated statements of income (loss) and comprehensive income (loss). The Company is subject to U.S. federal income tax as well as income tax of multiple state and foreign jurisdictions. The tax years 2016-2018 remain open to examination by the Internal Revenue Service and the years 2015-2018 remain open to examination by various state tax departments. The tax years from 2015-2018 remain open in Costa Rica. The Company’s effective income tax rate was (0.8%) for the first nine months of 2019 . The effective tax rate differs from the federal tax rate of 21 % due primarily to foreign losses not deductible for U.S. income tax purposes, the effect of uncertain income tax positions, and changes in valuation allowances related to deferred tax assets. The foreign operating losses may ultimately be deductible in the countries in which they occurred; however, the Company has not recorded a deferred tax asset for these losses due to uncertainty regarding the eventual realization of the benefit. The effect of the foreign operations was an overall rate decrease of approximately 7.2% for the nine months ended September 30, 2019 . There were no additional uncertain tax positions identified in the first nine months of 2019 . The Company's effective income tax rate for the nine months ended September 30 , 2018 was 0.1% , and differed from the federal tax rate due to state income taxes, foreign tax rate differences, foreign losses not deductible for U.S. income tax purposes, provisions for interest charges for uncertain income tax positions, stock compensation shortfalls and changes in valuation allowances related to deferred tax assets. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2019 | |
Segment Information [Abstract] | |
Segment Information | NOTE 12 – SEGMENT INFORMATION Effective January 1, 2019, the Company realigned the financial reporting for its business units. As a result of this realignment, certain corporate general and administrative expenses that were previously included within the business unit level as fully allocated costs are now categorized as “Other”. The Company classifies its businesses into the four segments as follows: · Transition Networks manufactures media converters, NIDs, NICs, Ethernet switches and other connectivity products that offer customers the ability to affordably integrate the benefits of fiber optics into any data network; · Suttle manufactures and markets connectivity infrastructure products for broadband and voice communications; · JDL Technologies provides technology solutions that address prevalent IT challenges, including virtualization and cloud solutions, managed services, wired and wireless network design and implementation, and converged infrastructure configuration and deployment ; and · Net2Edge develops, manufactures and sells edge network access products to telecommunications carriers . Management has chosen to organize the Company and disclose reportable segments based on our products and services. Intersegment revenues are eliminated upon consolidation. In order to conform to the 2019 presentation, the Company has reclassified the 2018 corporate expenses previously allocated to reportable segments to the “Other” section. Information concerning the Company’s continuing operations in the various segments for the three and nine-month periods ended September 30, 2019 and 2018 are as follows: Transition JDL Intersegment Networks Suttle Technologies Net2Edge Other Eliminations Total Three Months Ended September 30, 2019 Sales $ 12,483,000 $ 4,651,000 $ 783,000 $ 611,000 $ - $ (305,000) $ 18,223,000 Cost of sales 6,441,000 3,198,000 603,000 328,000 - (85,000) 10,485,000 Gross profit 6,042,000 1,453,000 180,000 283,000 - (220,000) 7,738,000 Selling, general and administrative expenses 3,810,000 888,000 349,000 653,000 629,000 (220,000) 6,109,000 Operating income (loss) 2,232,000 565,000 (169,000) (370,000) (629,000) - 1,629,000 Other income (expense) (11,000) 5,000 - 22,000 76,000 - 92,000 Income (loss) before income tax $ 2,221,000 $ 570,000 $ (169,000) $ (348,000) $ (553,000) $ - $ 1,721,000 Depreciation and amortization $ 74,000 $ 223,000 $ 26,000 $ 11,000 $ - $ - $ 334,000 Capital expenditures $ 7,000 $ - $ 4,000 $ - $ 72,000 $ - $ 83,000 Assets $ 18,487,000 $ 9,212,000 $ 1,419,000 $ 2,627,000 $ 25,989,000 $ (27,000) $ 57,707,000 Transition JDL Intersegment Networks Suttle Technologies Net2Edge Other Eliminations Total Three Months Ended September 30, 2018 Sales $ 9,231,000 $ 5,009,000 $ 859,000 $ 405,000 $ - $ (212,000) $ 15,292,000 Cost of sales 4,883,000 4,093,000 712,000 365,000 - (2,000) 10,051,000 Gross profit 4,348,000 916,000 147,000 40,000 - (210,000) 5,241,000 Selling, general and administrative expenses 3,481,000 1,756,000 380,000 809,000 627,000 (210,000) 6,843,000 Operating (loss) income 867,000 (840,000) (233,000) (769,000) (627,000) - (1,602,000) Other income (expense) (1,000) (5,000) - 19,000 42,000 - 55,000 Income (loss) before income tax $ 866,000 $ (845,000) $ (233,000) $ (750,000) $ (585,000) $ - $ (1,547,000) Depreciation and amortization $ 96,000 $ 374,000 $ 40,000 $ 13,000 $ - $ - $ 523,000 Capital expenditures $ 31,000 $ 48,000 $ - $ (7,000) $ 14,000 $ - $ 86,000 Assets $ 17,644,000 $ 13,277,000 $ 1,177,000 $ 2,421,000 $ 17,764,000 $ (27,000) $ 52,256,000 Transition JDL Intersegment Networks Suttle Technologies Net2Edge Other Eliminations Total Nine Months Ended September 30, 2019 Sales $ 30,548,000 $ 14,918,000 $ 3,942,000 $ 1,856,000 $ - $ (918,000) $ 50,346,000 Cost of sales 16,809,000 10,198,000 2,643,000 1,099,000 - (275,000) 30,474,000 Gross profit 13,739,000 4,720,000 1,299,000 757,000 - (643,000) 19,872,000 Selling, general and administrative expenses 11,080,000 2,883,000 1,056,000 2,162,000 1,789,000 (643,000) 18,327,000 Operating (loss) income 2,659,000 1,837,000 243,000 (1,405,000) (1,789,000) - 1,545,000 Other income (expense) (12,000) 2,994,000 (10,000) 25,000 173,000 - 3,170,000 Income (loss) before income tax $ 2,647,000 $ 4,831,000 $ 233,000 $ (1,380,000) $ (1,616,000) $ - $ 4,715,000 Depreciation and amortization $ 224,000 $ 735,000 $ 80,000 $ 50,000 $ - $ - $ 1,089,000 Capital expenditures $ 11,000 $ 16,000 $ 40,000 $ 8,000 $ 268,000 $ - $ 343,000 Transition JDL Intersegment Networks Suttle Technologies Net2Edge Other Eliminations Total Nine Months Ended September 30, 2018 Sales $ 26,219,000 $ 17,855,000 $ 2,482,000 $ 1,251,000 $ - $ (703,000) $ 47,104,000 Cost of sales 14,436,000 15,105,000 2,281,000 929,000 - (51,000) 32,700,000 Gross profit 11,783,000 2,750,000 201,000 322,000 - (652,000) 14,404,000 Selling, general and administrative expenses 10,212,000 5,633,000 1,225,000 2,533,000 1,751,000 (652,000) 20,702,000 Operating (loss) income 1,571,000 (2,883,000) (1,024,000) (2,211,000) (1,751,000) - (6,298,000) Other income 3,000 15,000 3,000 31,000 194,000 - 246,000 Income (loss) before income tax $ 1,574,000 $ (2,868,000) $ (1,021,000) $ (2,180,000) $ (1,557,000) $ - $ (6,052,000) Depreciation and amortization $ 337,000 $ 1,173,000 $ 144,000 $ 41,000 $ - $ - $ 1,695,000 Capital expenditures $ 69,000 $ 508,000 $ - $ 109,000 $ 14,000 $ - $ 700,000 |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 9 Months Ended |
Sep. 30, 2019 | |
Net Income (Loss) Per Share [Abstract] | |
Net Income (Loss) Per Share | NOTE 13 – NET INCOME (LOSS) PER SHARE Basic net income (loss) per common share is based on the weighted average number of common shares outstanding during each period and year. Diluted net income per common share takes into effect the dilutive effect of potential common shares outstanding. The Company’s only potential common shares outstanding are stock options and shares associated with the long-term incentive compensation plans, which resulted in a dilutive effect of 51,042 and 8,678 for the three and nine-month periods ended September 30, 2019 , respectively. Due to the net losses in the first three and nine months of 2018, there was no dilutive impact from stock options or unvested shares. The Company calculates the dilutive effect of outstanding options using the treasury stock method. Options totaling 936,817 and 1,150,865 were excluded from the calculation of diluted earnings per share for the three and nine months ended September 30, 2019 because the exercise price was greater than the average market price of common stock during the period and deferred stock awards totaling 200,260 shares would not have been included for the three and nine months ended September 30, 2019 because of unmet performance conditions. Options totaling 1,144,607 and 1,351,772 were excluded from the calculation of diluted earnings per share for the three and nine months ended September 30 , 2018 because the exercise price was greater than the average market price of common stock during the period and deferred stock awards totaling 309,819 shares would not have been included for the three and nine months ended September 30 , 2018 because of unmet performance conditions. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | NOTE 14 – FAIR VALUE MEASUREMENTS The accounting guidance establishes a valuation hierarchy for disclosure of the inputs to valuation used to measure fair value. This hierarchy prioritizes the inputs into three broad levels as follows: Level 1 – Observable inputs that reflect unadjusted quoted prices for identical assets or liabilities in active markets that the Company has the ability to access at the measurement date. Level 2 – Observable inputs such as quoted prices for similar instruments and quoted prices in markets that are not active, and inputs that are directly observable or can be corroborated by observable market data. The types of assets and liabilities included in Level 2 are typically either comparable to actively traded securities or contracts, such as treasury securities with pricing interpolated from recent trades of similar securities, or priced with models using highly observable inputs, such as commodity options priced using observable forward prices and volatilities. Level 3 – Significant inputs to pricing that have little or no observability as of the reporting date. The types of assets and liabilities included in Level 3 are those with inputs requiring significant management judgment or estimation, such as the complex and subjective models and forecasts used to determine the fair value of financial instruments. Financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2019 and December 31, 2018 , are summarized below: September 30, 2019 Level 1 Level 2 Level 3 Total Fair Value Cash equivalents: Money Market Funds 10,716,000 - - 10,716,000 Subtotal 10,716,000 - - 10,716,000 Short-term investments: Commercial Paper - 4,491,000 - 4,491,000 Corporate Notes/Bonds - 1,012,000 - 1,012,000 Subtotal - 5,503,000 - 5,503,000 Total $ 10,716,000 $ 5,503,000 $ - $ 16,219,000 December 31, 2018 Level 1 Level 2 Level 3 Total Fair Value Cash equivalents: Money Market Funds $ 8,428,000 $ - $ - $ 8,428,000 Total $ 8,428,000 $ - $ - $ 8,428,000 We record transfers between levels of the fair value hierarchy, if necessary, at the end of the reporting period. There were no transfers between levels during the nine months ended September 30, 2019 . |
General Commitments
General Commitments | 9 Months Ended |
Sep. 30, 2019 | |
Contingencies And Commitments [Abstract] | |
General Commitments | NOTE 15 – GENERAL COMMITMENTS On August 2, 2018, the Company entered into a purchase agreement with Launch Properties, LLC for the sale of the Company’s building located at 10900 Red Circle Drive, Minnetonka, MN for $10,000,000 . The building currently includes the Company’s corporate administrative offices, as well as some operations for Transition Networks, Suttle and JDL Technologies. The closing of the transaction is subject to several closing conditions, including the buyer’s ability to complete due diligence within 180 days and the buyer’s ability to obtain regulatory approval for its intended use of the property. The due diligence period lapsed on January 29, 2019 and the buyer has met certain required obligations. One of the conditions of the agreement included non-refundable deposits into an escrow account. As of September 30, 2019 , the balance within this escrow accounts was $175,000 and is included within restricted cash within the condensed consolidated balance sheet. If the sale proceeds, the Company currently expects the transaction to close in the second half of 2020. |
Disposition Of Assets
Disposition Of Assets | 9 Months Ended |
Sep. 30, 2019 | |
Disposition Of Assets [Abstract] | |
Disposition Of Assets | NOTE 16 – DISPOSITION OF ASSETS On April 5, 2019, the Company sold its Suttle FutureLink™ Fiber business line, including inventory, equipment, and customer relationships, to PPC Broadband Inc. (“PPC”). The transaction was structured as an Asset Purchase Agreement with a simultaneous signing and closing. The sale price was $5,000,000 cash, of which $500,000 was deferred into an escrow account until certain criteria are met and is recorded as restricted cash within the condensed consolidated balance sheet. The Company recognized a gain on the sale of inventory and capital equipment totalin g $2,967,000 during the second quarter of 2019 . Concurrent with the closing of the transaction, Suttle and PPC entered into a Transition Services Agreement under which Suttle agreed to manufacture products related to the FutureLink™ Fiber business line until September 30, 2019, to ensure seamless supply to the customer base. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2019 | |
Recent Accounting Pronouncements [Abstract] | |
Recent Accounting Pronouncements | NOTE 17 – RECENT ACCOUNTING PRONOUNCEMENTS In February 2016, the FASB issued ASU 2016-02, “Leases” (Topic 842), which amends existing guidance and requires an entity to recognize both assets and liabilities arising from financing and operating leases, along with additional qualitative and quantitative disclosures. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within that reporting period, and early adoption is permitted. The Company adopted the accounting standard effective January 1, 2019. Please see Note 3 for the required disclosures related to the impact of adopting this standard. In June 2016, FASB issued ASU 2016-13, "Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments." The amendments in this update replace the incurred loss impairment methodology in current U.S. GAAP with a methodology that reflects expected credit losses. This ASU is intended to provide financial statement users with more decision-useful information about the expected credit losses and is effective for annual periods and interim periods for those annual periods beginning after December 15, 2019, which for us is the first quarter ending March 31, 2020. Entities may early adopt beginning after December 15, 2018. We are currently evaluating the impact of the adoption of ASU 2016-13 on our consolidated financial statements. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 18 – SUBSEQUENT EVENTS The Company has evaluated subsequent events through the date of this filing. We do not believe there are any material subsequent events other than those disclosed in the footnotes to these financial statements that require further disclosure. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policy) | 9 Months Ended |
Sep. 30, 2019 | |
Summary of Significant Accounting Policies [Abstract] | |
Description of Business | Description of Business Communications Systems, Inc. (herein collectively referred to as “CSI,” “our,” “we” or the “Company”) is a Minnesota corporation organized in 1969 that operates directly and through its subsidiaries located in the United States (U.S.) and the United Kingdom (U.K.). CSI is principally engaged through its Transition Networks, Inc. (“Transition Networks” or “Transition”) subsidiary and business unit in the manufacture and sale of core media conversion products, Ethernet switches, and other connectivity and data transmission products, and through its Suttle, Inc. (“Suttle”) subsidiary and business unit in the manufacture and sale of connectivity infrastructure products for broadband and voice communications. Through its JDL Technologies, Inc. (“JDL Technologies” or “JDL”) business unit, CSI provides technology solutions including virtualization, managed services, wired and wireless network design and implementation, and hybrid cloud infrastructure and deployment. Through its Net2Edge Limited (“Net2Edge”) U.K.-based business unit, the Company develops, manufactures and sells Ethernet-based edge network access products to telecommunications carriers. The Company classifies its businesses into four segments corresponding to the Transition Networks, Suttle, JDL Technologies, and Net2Edge business units. Non-allocated general and administrative expenses are separately accounted for as “Other” in the Company’s segment reporting. Intersegment revenues are eliminated upon consolidation. |
Financial Statement Presentation | Financial Statement Presentation The condensed consolidated balance sheets and condensed consolidated statement of changes in stockholders’ equity as of September 30, 2019 and the related condensed consolidated statements of income (loss) and comprehensive income (loss), and the condensed consolidated statements of cash flows for the periods ended September 30, 2019 and 2018 have been prepared by Company management . In the opinion of management, all adjustments (which include only normal recurring adjustments, except where noted) necessary to present fairly the financial position, results of operations, and cash flows at September 30, 2019 and 2018 and for the periods then ended have been made. Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with generally accepted accounting principles in the United States of America have been condensed or omitted. We recommend these condensed consolidated financial statements be read in conjunction with the financial statements and notes thereto included in the Company’s December 31, 2018 Annual Report to Shareholders on Form 10-K. The results of operations for the period ended September 30, 2019 are not necessarily indicative of operating results for the entire year. The presentation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the balance sheet date, and the reported amounts of revenues and expenses during the reporting period. The estimates and assumptions used in the accompanying condensed consolidated financial statements are based upon management’s evaluation of the relevant facts and circumstances as of the time of the financial statements. Actual results could differ from those estimates. Except to the extent updated or described below, the significant accounting policies set forth in Note 1 to the consolidated financial statements in the Company's Annual Report on Form 10-K for the year ended December 31, 2018 , appropriately represent, in all material respects, the current status of accounting policies, and are incorporated herein by reference. |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss, net of tax, are as follows: Foreign Currency Translation Unrealized gain on securities Accumulated Other Comprehensive Loss December 31, 2018 $ (764,000) $ 13,000 $ (751,000) Net current period change (83,000) 0 (83,000) September 30, 2019 $ (847,000) $ 13,000 $ (834,000) |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Summary of Significant Accounting Policies [Abstract] | |
Components of Accumulated Other Comprehensive Loss | Foreign Currency Translation Unrealized gain on securities Accumulated Other Comprehensive Loss December 31, 2018 $ (764,000) $ 13,000 $ (751,000) Net current period change (83,000) 0 (83,000) September 30, 2019 $ (847,000) $ 13,000 $ (834,000) |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Revenue Recognition [Abstract] | |
Schedule of Disaggregation of Revenues | For Transition Networks, we analyze revenue by region and product group, which is as follows for the three and nine months ended September 30, 2019 and 2018: Transition Networks Sales by Region Three Months Ended September 30 Nine Months Ended September 30 2019 2018 2019 2018 North America $ 11,479,000 $ 8,015,000 $ 26,442,000 $ 22,107,000 Rest of World 426,000 690,000 1,822,000 2,530,000 Europe, Middle East, Africa ("EMEA") 578,000 526,000 2,284,000 1,582,000 $ 12,483,000 $ 9,231,000 $ 30,548,000 $ 26,219,000 Transition Networks Sales by Product Group Three Months Ended September 30 Nine Months Ended September 30 2019 2018 2019 2018 Media converters $ 5,031,000 $ 5,059,000 $ 15,092,000 $ 14,735,000 Ethernet switches and adapters 5,957,000 2,563,000 10,788,000 6,650,000 Other products 1,495,000 1,609,000 4,668,000 4,834,000 $ 12,483,000 $ 9,231,000 $ 30,548,000 $ 26,219,000 For Suttle, we analyze revenues by product and customer group, which is as follows for the three and nine months ended September 30, 2019 and 2018 : Suttle Sales by Product Group Three Months Ended September 30 Nine Months Ended September 30 2019 2018 2019 2018 Structured cabling and connecting system products $ 3,706,000 $ 4,748,000 $ 12,549,000 $ 16,490,000 DSL and other products 945,000 261,000 2,369,000 1,365,000 $ 4,651,000 $ 5,009,000 $ 14,918,000 $ 17,855,000 Suttle Sales by Customer Group Three Months Ended September 30 Nine Months Ended September 30 2019 2018 2019 2018 Communication service providers $ 3,506,000 $ 4,258,000 $ 11,463,000 $ 14,705,000 International 137,000 350,000 645,000 1,696,000 Distributors 414,000 401,000 1,513,000 1,454,000 Other 594,000 - 1,297,000 - $ 4,651,000 $ 5,009,000 $ 14,918,000 $ 17,855,000 For JDL, we analyze revenue by customer group, which is as follows for the three and nine months ended September 30, 2019 and 2018 : JDL Revenue by Customer Group Three Months Ended September 30 Nine Months Ended September 30 2019 2018 2019 2018 Education $ 63,000 $ 185,000 $ 1,831,000 $ 574,000 Healthcare and commercial clients 720,000 674,000 2,111,000 1,908,000 $ 783,000 $ 859,000 $ 3,942,000 $ 2,482,000 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Information Related to ROU Assets and Related Lease Liabilities | Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Cash paid for operating leases $ 30,000 $ 80,000 Right-of-use assets obtained in exchange for new operating lease obligations (1) - 450,000 As of September 30, 2019 Weighted-average remaining lease term 3.5 years Weighted-average discount rate 4.5% (1) Includes $262,000 for operating leases existing on January 1, 2019 and $188,000 for operating leases that commenced in the first quarter of 2019. |
Maturities of Lease Liabilities | Q4 2019 $ 31,000 2020 121,000 2021 126,000 2022 87,000 2023 47,000 Thereafter 4,000 Total lease payments 416,000 Less imputed interest (41,000) Total operating lease liabilities $ 375,000 |
Future Minimum Lease Commitments under Operating Leases based on ASC 840 | Year Ending December 31: 2019 $ 106,000 2020 86,000 2021 86,000 2022 50,000 $ 328,000 |
Cash Equivalents and Investme_2
Cash Equivalents and Investments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Cash Equivalents and Investments [Abstract] | |
Schedule of Cash Equivalents and Available-for-Sale Securities | September 30, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash Equivalents Short-Term Investments Long-Term Investments Cash equivalents: Money Market funds 10,716,000 - - 10,716,000 10,716,000 - - Subtotal 10,716,000 - - 10,716,000 10,716,000 - - Investments: Commercial Paper 4,491,000 - - 4,491,000 - 4,491,000 - Corporate Notes/Bonds 1,012,000 - - 1,012,000 - 1,012,000 - Subtotal 5,503,000 - - 5,503,000 - 5,503,000 - Total $ 16,219,000 $ - $ - $ 16,219,000 $ 10,716,000 $ 5,503,000 $ - December 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash Equivalents Short-Term Investments Long-Term Investments Cash equivalents: Money Market funds $ 8,428,000 $ - $ - $ 8,428,000 $ 8,428,000 $ - $ - Total $ 8,428,000 $ - $ - $ 8,428,000 $ 8,428,000 $ - $ - |
Schedule of Estimated Fair Value of Available-for-Sale Securities | Amortized Cost Estimated Market Value Due within one year $ 5,503,000 $ 5,503,000 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Stock-Based Compensation [Abstract] | |
Schedule of Changes in Number of Outstanding Stock Options Under Director Plan, Stock Plan and 2011 Incentive Plan | Weighted average Weighted average remaining exercise price contractual term Options per share in years Outstanding – December 31, 2018 1,380,492 $ 7.56 4.18 Awarded 100,769 2.69 Exercised (22,500) 3.61 Forfeited (147,127) 10.84 Outstanding – September 30, 2019 1,311,634 6.89 3.88 Exercisable at September 30, 2019 960,165 $ 8.04 3.30 Expected to vest September 30, 2019 1,268,303 6.98 3.83 |
Schedule of Changes in the Number of Deferred Stock Shares Under the Incentive Plan | Weighted Average Grant Date Shares Fair Value Outstanding – December 31, 2018 270,066 $ 4.48 Granted 157,907 2.64 Vested (4,575) 4.56 Forfeited (65,231) 4.28 Outstanding – September 30, 2019 358,167 3.31 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Inventories [Abstract] | |
Schedule of Inventories | September 30 December 31 2019 2018 Finished goods $ 8,110,000 $ 9,608,000 Raw and processed materials 4,477,000 6,568,000 $ 12,587,000 $ 16,176,000 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Intangible Assets [Abstract] | |
Schedule of Finite-Lived Intangible Assets | September 30, 2019 Gross Carrying Amount Accumulated Amortization Impairment loss Foreign Currency Translation Net Trademarks $ 98,000 $ (78,000) $ - $ (20,000) $ - Customer relationships 491,000 (230,000) (154,000) (107,000) - Technology 229,000 (189,000) - (40,000) - $ 818,000 $ (497,000) $ (154,000) $ (167,000) $ - December 31, 2018 Gross Carrying Amount Accumulated Amortization Impairment loss Foreign Currency Translation Net Trademarks $ 98,000 $ (74,000) $ - $ (19,000) $ 5,000 Customer relationships 491,000 (230,000) (154,000) (107,000) - Technology 229,000 (178,000) - (51,000) - $ 818,000 $ (482,000) $ (154,000) $ (177,000) $ 5,000 |
Warranty (Tables)
Warranty (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Warranty [Abstract] | |
Schedule of Warranty | 2019 2018 Beginning balance $ 594,000 $ 603,000 Amounts charged (credited) to expense (40,000) 116,000 Actual warranty costs paid (28,000) (75,000) Ending balance $ 526,000 $ 644,000 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Information [Abstract] | |
Schedule of Segment Information | Transition JDL Intersegment Networks Suttle Technologies Net2Edge Other Eliminations Total Three Months Ended September 30, 2019 Sales $ 12,483,000 $ 4,651,000 $ 783,000 $ 611,000 $ - $ (305,000) $ 18,223,000 Cost of sales 6,441,000 3,198,000 603,000 328,000 - (85,000) 10,485,000 Gross profit 6,042,000 1,453,000 180,000 283,000 - (220,000) 7,738,000 Selling, general and administrative expenses 3,810,000 888,000 349,000 653,000 629,000 (220,000) 6,109,000 Operating income (loss) 2,232,000 565,000 (169,000) (370,000) (629,000) - 1,629,000 Other income (expense) (11,000) 5,000 - 22,000 76,000 - 92,000 Income (loss) before income tax $ 2,221,000 $ 570,000 $ (169,000) $ (348,000) $ (553,000) $ - $ 1,721,000 Depreciation and amortization $ 74,000 $ 223,000 $ 26,000 $ 11,000 $ - $ - $ 334,000 Capital expenditures $ 7,000 $ - $ 4,000 $ - $ 72,000 $ - $ 83,000 Assets $ 18,487,000 $ 9,212,000 $ 1,419,000 $ 2,627,000 $ 25,989,000 $ (27,000) $ 57,707,000 Transition JDL Intersegment Networks Suttle Technologies Net2Edge Other Eliminations Total Three Months Ended September 30, 2018 Sales $ 9,231,000 $ 5,009,000 $ 859,000 $ 405,000 $ - $ (212,000) $ 15,292,000 Cost of sales 4,883,000 4,093,000 712,000 365,000 - (2,000) 10,051,000 Gross profit 4,348,000 916,000 147,000 40,000 - (210,000) 5,241,000 Selling, general and administrative expenses 3,481,000 1,756,000 380,000 809,000 627,000 (210,000) 6,843,000 Operating (loss) income 867,000 (840,000) (233,000) (769,000) (627,000) - (1,602,000) Other income (expense) (1,000) (5,000) - 19,000 42,000 - 55,000 Income (loss) before income tax $ 866,000 $ (845,000) $ (233,000) $ (750,000) $ (585,000) $ - $ (1,547,000) Depreciation and amortization $ 96,000 $ 374,000 $ 40,000 $ 13,000 $ - $ - $ 523,000 Capital expenditures $ 31,000 $ 48,000 $ - $ (7,000) $ 14,000 $ - $ 86,000 Assets $ 17,644,000 $ 13,277,000 $ 1,177,000 $ 2,421,000 $ 17,764,000 $ (27,000) $ 52,256,000 Transition JDL Intersegment Networks Suttle Technologies Net2Edge Other Eliminations Total Nine Months Ended September 30, 2019 Sales $ 30,548,000 $ 14,918,000 $ 3,942,000 $ 1,856,000 $ - $ (918,000) $ 50,346,000 Cost of sales 16,809,000 10,198,000 2,643,000 1,099,000 - (275,000) 30,474,000 Gross profit 13,739,000 4,720,000 1,299,000 757,000 - (643,000) 19,872,000 Selling, general and administrative expenses 11,080,000 2,883,000 1,056,000 2,162,000 1,789,000 (643,000) 18,327,000 Operating (loss) income 2,659,000 1,837,000 243,000 (1,405,000) (1,789,000) - 1,545,000 Other income (expense) (12,000) 2,994,000 (10,000) 25,000 173,000 - 3,170,000 Income (loss) before income tax $ 2,647,000 $ 4,831,000 $ 233,000 $ (1,380,000) $ (1,616,000) $ - $ 4,715,000 Depreciation and amortization $ 224,000 $ 735,000 $ 80,000 $ 50,000 $ - $ - $ 1,089,000 Capital expenditures $ 11,000 $ 16,000 $ 40,000 $ 8,000 $ 268,000 $ - $ 343,000 Transition JDL Intersegment Networks Suttle Technologies Net2Edge Other Eliminations Total Nine Months Ended September 30, 2018 Sales $ 26,219,000 $ 17,855,000 $ 2,482,000 $ 1,251,000 $ - $ (703,000) $ 47,104,000 Cost of sales 14,436,000 15,105,000 2,281,000 929,000 - (51,000) 32,700,000 Gross profit 11,783,000 2,750,000 201,000 322,000 - (652,000) 14,404,000 Selling, general and administrative expenses 10,212,000 5,633,000 1,225,000 2,533,000 1,751,000 (652,000) 20,702,000 Operating (loss) income 1,571,000 (2,883,000) (1,024,000) (2,211,000) (1,751,000) - (6,298,000) Other income 3,000 15,000 3,000 31,000 194,000 - 246,000 Income (loss) before income tax $ 1,574,000 $ (2,868,000) $ (1,021,000) $ (2,180,000) $ (1,557,000) $ - $ (6,052,000) Depreciation and amortization $ 337,000 $ 1,173,000 $ 144,000 $ 41,000 $ - $ - $ 1,695,000 Capital expenditures $ 69,000 $ 508,000 $ - $ 109,000 $ 14,000 $ - $ 700,000 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Measurements [Abstract] | |
Schedule of Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis | September 30, 2019 Level 1 Level 2 Level 3 Total Fair Value Cash equivalents: Money Market Funds 10,716,000 - - 10,716,000 Subtotal 10,716,000 - - 10,716,000 Short-term investments: Commercial Paper - 4,491,000 - 4,491,000 Corporate Notes/Bonds - 1,012,000 - 1,012,000 Subtotal - 5,503,000 - 5,503,000 Total $ 10,716,000 $ 5,503,000 $ - $ 16,219,000 December 31, 2018 Level 1 Level 2 Level 3 Total Fair Value Cash equivalents: Money Market Funds $ 8,428,000 $ - $ - $ 8,428,000 Total $ 8,428,000 $ - $ - $ 8,428,000 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Narrative) (Details) | 9 Months Ended |
Sep. 30, 2019segment | |
Summary of Significant Accounting Policies [Abstract] | |
Number of segments | 4 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Components of Accumulated Other Comprehensive Loss) (Details) | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
BALANCE | $ 41,653,127 |
BALANCE | 46,256,411 |
Foreign Currency Translation [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
BALANCE | (764,000) |
Net current period change | (83,000) |
BALANCE | (847,000) |
Unrealized gain on securities [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
BALANCE | 13,000 |
Net current period change | 0 |
BALANCE | 13,000 |
Accumulated Other Comprehensive Loss [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
BALANCE | (751,293) |
Net current period change | (83,000) |
BALANCE | $ (833,900) |
Revenue Recognition (Narrative)
Revenue Recognition (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 18,222,980 | $ 15,291,993 | $ 50,346,350 | $ 47,103,837 |
Net2Edge [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 611,000 | $ 405,000 | $ 1,856,000 | $ 1,251,000 |
Revenue Recognition (Schedule o
Revenue Recognition (Schedule of Disaggregation of Revenues) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 18,222,980 | $ 15,291,993 | $ 50,346,350 | $ 47,103,837 |
Transition Networks [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 12,483,000 | 9,231,000 | 30,548,000 | 26,219,000 |
Transition Networks [Member] | North America [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 11,479,000 | 8,015,000 | 26,442,000 | 22,107,000 |
Transition Networks [Member] | Rest of World [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 426,000 | 690,000 | 1,822,000 | 2,530,000 |
Transition Networks [Member] | Europe, Middle East, Africa ("EMEA") [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 578,000 | 526,000 | 2,284,000 | 1,582,000 |
Transition Networks [Member] | Media Converters [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 5,031,000 | 5,059,000 | 15,092,000 | 14,735,000 |
Transition Networks [Member] | Ethernet Switches and Adapters [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 5,957,000 | 2,563,000 | 10,788,000 | 6,650,000 |
Transition Networks [Member] | Other Products [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,495,000 | 1,609,000 | 4,668,000 | 4,834,000 |
Suttle [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 4,651,000 | 5,009,000 | 14,918,000 | 17,855,000 |
Suttle [Member] | Communication Service Providers [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 3,506,000 | 4,258,000 | 11,463,000 | 14,705,000 |
Suttle [Member] | International [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 137,000 | 350,000 | 645,000 | 1,696,000 |
Suttle [Member] | Distributors [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 414,000 | 401,000 | 1,513,000 | 1,454,000 |
Suttle [Member] | Other Customer [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 594,000 | 1,297,000 | ||
Suttle [Member] | Structured Cabling and Connecting System Products [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 3,706,000 | 4,748,000 | 12,549,000 | 16,490,000 |
Suttle [Member] | DSL and Other Products [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 945,000 | 261,000 | 2,369,000 | 1,365,000 |
JDL Technologies [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 783,000 | 859,000 | 3,942,000 | 2,482,000 |
JDL Technologies [Member] | Education [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 63,000 | 185,000 | 1,831,000 | 574,000 |
JDL Technologies [Member] | Healthcare and Commercial Clients [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 720,000 | $ 674,000 | $ 2,111,000 | $ 1,908,000 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |
Feb. 28, 2019item | Sep. 30, 2019USD ($) | Sep. 30, 2019USD ($)item | Jan. 01, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | ||||
Operating lease right of use asset | $ | $ 395,574 | $ 395,574 | $ 280,000 | |
Lease liability | $ | 375,000 | $ 375,000 | $ 259,000 | |
Number of locations | item | 1 | 2 | ||
Lease expense | $ | $ 31,000 | $ 92,000 | ||
Additional future obligation, lease not yet commenced | $ | $ 0 | |||
Lease 1 [Member] | ||||
Lessee, Lease, Description [Line Items] | ||||
Number of leases with option to extend | item | 1 | |||
Number of options to extend | item | 2 | |||
Lease renewal term | 5 years | 5 years | ||
Lease 2 [Member] | ||||
Lessee, Lease, Description [Line Items] | ||||
Date of option to terminate | 2022 | |||
Number of leases with annual payment adjustment | item | 1 | |||
Percentage of annual rent adjustment | 3.00% | |||
Minimum [Member] | Lease 1 [Member] | ||||
Lessee, Lease, Description [Line Items] | ||||
Lease term | 5 years | 5 years | ||
Minimum [Member] | Lease 2 [Member] | ||||
Lessee, Lease, Description [Line Items] | ||||
Lease term | 5 years | 5 years | ||
Maximum [Member] | Lease 1 [Member] | ||||
Lessee, Lease, Description [Line Items] | ||||
Lease term | 8 years | 8 years | ||
Maximum [Member] | Lease 2 [Member] | ||||
Lessee, Lease, Description [Line Items] | ||||
Lease term | 8 years | 8 years |
Leases (Information Related to
Leases (Information Related to ROU Assets and Related Lease Liabilities) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2019 | Jan. 01, 2019 | |
Cash paid for operating leases | $ 30,000 | $ 80,000 | |
Right-of-use assets obtained in exchange for new operating lease obligations | $ 449,995 | ||
Weighted-average remaining lease term | 3 years 6 months | 3 years 6 months | |
Weighted-average discount rate | 4.50% | 4.50% | |
Operating lease right of use asset | $ 395,574 | $ 395,574 | $ 280,000 |
Existing on January 1, 2019 [Member] | |||
Operating lease right of use asset | 262,000 | 262,000 | |
Commenced First Quarter 2019 [Member] | |||
Operating lease right of use asset | $ 188,000 | $ 188,000 |
Leases (Maturities of Lease Lia
Leases (Maturities of Lease Liabilities) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jan. 01, 2019 |
Leases [Abstract] | ||
Q4 2019 | $ 31 | |
2020 | 121 | |
2021 | 126 | |
2022 | 87 | |
2023 | 47 | |
Thereafter | 4 | |
Total lease payments | 416 | |
Less imputed interest | (41) | |
Total operating lease liabilities | $ 375 | $ 259 |
Leases (Future Minimum Lease Co
Leases (Future Minimum Lease Commitments under Operating Leases based on ASC 840) (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 106 |
2020 | 86 |
2021 | 86 |
2022 | 50 |
Total minimum future lease commitments | $ 328 |
Cash Equivalents and Investme_3
Cash Equivalents and Investments (Narrative) (Details) - USD ($) | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Cash Equivalents and Investments [Abstract] | |||
Gross unrealized losses | $ 0 | ||
Gross realized gains (losses) | $ 0 | $ 0 |
Cash Equivalents and Investme_4
Cash Equivalents and Investments (Schedule of Cash Equivalents and Available-for-Sale Securities) (Details) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 16,219,000 | $ 8,428,000 |
Gross Unrealized Gains | ||
Gross Unrealized Losses | 0 | |
Fair Value | 16,219,000 | 8,428,000 |
Cash Equivalents | 10,716,000 | 8,428,000 |
Short-Term Investments | 5,502,752 | |
Long-Term Investments | ||
Cash Equivalents [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 10,716,000 | |
Gross Unrealized Gains | ||
Fair Value | 10,716,000 | |
Cash Equivalents | 10,716,000 | |
Short-Term Investments | ||
Long-Term Investments | ||
Cash Equivalents [Member] | Money Market Funds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 10,716,000 | 8,428,000 |
Gross Unrealized Gains | ||
Gross Unrealized Losses | ||
Fair Value | 10,716,000 | 8,428,000 |
Cash Equivalents | 10,716,000 | 8,428,000 |
Short-Term Investments | ||
Long-Term Investments | ||
Investments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 5,503,000 | |
Gross Unrealized Gains | ||
Fair Value | 5,503,000 | |
Short-Term Investments | 5,503,000 | |
Long-Term Investments | ||
Investments [Member] | Commercial Paper [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 4,491,000 | |
Gross Unrealized Gains | ||
Fair Value | 4,491,000 | |
Short-Term Investments | 4,491,000 | |
Long-Term Investments | ||
Investments [Member] | Corporate Notes/Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 1,012,000 | |
Gross Unrealized Gains | ||
Fair Value | 1,012,000 | |
Short-Term Investments | 1,012,000 | |
Long-Term Investments |
Cash Equivalents and Investme_5
Cash Equivalents and Investments (Schedule of Estimated Fair Value of Available-for-Sale Securities) (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Cash Equivalents and Investments [Abstract] | |
Amortized Cost, Due within one year | $ 5,503 |
Estimated Market Value, Due within one year | $ 5,503 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 96 Months Ended | ||
Mar. 31, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | May 19, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of options outstanding | 1,311,634 | 1,380,492 | |||
Aggregate intrinsic value of options outstanding | $ 539,000 | ||||
Intrinsic value of all options exercised | 33,000 | ||||
Net cash proceeds from exercise of stock options | 0 | $ 0 | |||
Share based compensation expense before income taxes | 276,236 | 156,214 | |||
Share based compensation expense after income taxes | 218,000 | $ 123,000 | |||
Unrecognized compensation expense for awards | $ 427,000 | ||||
Recognition period for unrecognized compensation expense | 2 years 3 months 18 days | ||||
2011 Executive Incentive Compensation Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of awards authorized | 2,500,000 | ||||
Shares issued under Plan | 235,630 | ||||
Number of options outstanding | 1,651,801 | ||||
Awards eligible for grant | 612,569 | ||||
2011 Executive Incentive Compensation Plan [Member] | Share-based Payment Arrangement, Tranche One [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting percentage | 25.00% | ||||
Stock Option Plan For Directors [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of options granted | 0 | 0 | |||
Award expiration period | 10 years | ||||
Number of options outstanding | 18,000 | ||||
Employee Stock Purchase Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percentage of price of common stock at which employees are able to acquire | 85.00% | ||||
Shares available | 93,905 | ||||
Key Employees [Member] | 2011 Executive Incentive Compensation Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Deferred stock awards granted | 157,907 | ||||
Award vesting period | 3 years | ||||
Key Executive Employees [Member] | 2011 Executive Incentive Compensation Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of options granted | 100,769 | ||||
Award expiration period | 7 years |
Stock-Based Compensation (Sched
Stock-Based Compensation (Schedule of Changes in Number of Outstanding Stock Options Under Director Plan, Stock Plan and 2011 Incentive Plan) (Details) - $ / shares | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Stock-Based Compensation [Abstract] | ||
Options, Outstanding - December 31, 2018 | 1,380,492 | |
Options, Awarded | 100,769 | |
Options, Exercised | (22,500) | |
Options, Forfeited | (147,127) | |
Options, Outstanding - September 30, 2019 | 1,311,634 | 1,380,492 |
Options, Exercisable at September 30, 2019 | 960,165 | |
Options, Expected to vest September 30, 2019 | 1,268,303 | |
Weighted average exercise price per share, Outstanding - December 31, 2018 | $ 7.56 | |
Weighted average exercise price per share, Awarded | 2.69 | |
Weighted average exercise price per share, Exercised | 3.61 | |
Weighted average exercise price per share, Forfeited | 10.84 | |
Weighted average exercise price per share, Outstanding - September 30, 2019 | 6.89 | $ 7.56 |
Weighted average exercise price per share, Exercisable at September 30, 2019 | 8.04 | |
Weighted average exercise price per share, Expected to vest September 30, 2019 | $ 6.98 | |
Options, Outstanding - Weighted average remaining contractual term in years | 3 years 10 months 17 days | 4 years 2 months 5 days |
Options, Exercisable - Weighted average remaining contractual term in years | 3 years 3 months 18 days | |
Options, Expected to vest - Weighted average remaining contractual term in years | 3 years 9 months 29 days |
Stock-Based Compensation (Sch_2
Stock-Based Compensation (Schedule of Changes in the Number of Deferred Stock Shares Under the Incentive Plan) (Details) - Performance Units [Member] | 9 Months Ended |
Sep. 30, 2019$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares, Outstanding - December 31, 2018 | shares | 270,066 |
Shares, Granted | shares | 157,907 |
Shares, Vested | shares | (4,575) |
Shares, Forfeited | shares | (65,231) |
Shares, Outstanding - September 30, 2019 | shares | 358,167 |
Weighted Average Grant Date Fair Value, Outstanding - December 31, 2018 | $ / shares | $ 4.48 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 2.64 |
Weighted Average Grant Date Fair Value, Vested | $ / shares | 4.56 |
Weighted Average Grant Date Fair Value, Forfeited | $ / shares | 4.28 |
Weighted Average Grant Date Fair Value, Outstanding - September 30, 2019 | $ / shares | $ 3.31 |
Inventories (Schedule of Invent
Inventories (Schedule of Inventories) (Details) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Inventories [Abstract] | ||
Finished goods | $ 8,110,000 | $ 9,608,000 |
Raw and processed materials | 4,477,000 | 6,568,000 |
Inventories | $ 12,586,500 | $ 16,175,616 |
Intangible Assets (Narrative) (
Intangible Assets (Narrative) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Intangible Assets [Abstract] | ||
Amortization expense | $ 5 | $ 9 |
Intangible Assets (Schedule of
Intangible Assets (Schedule of Finite-Lived Intangible Assets) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 818 | $ 818 |
Accumulated Amortization | (497) | (482) |
Impairment loss | (154) | (154) |
Foreign Currency Translation | (167) | (177) |
Net | 5 | |
Trademarks [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 98 | 98 |
Accumulated Amortization | (78) | (74) |
Impairment loss | ||
Foreign Currency Translation | (20) | (19) |
Net | 5 | |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 491 | 491 |
Accumulated Amortization | (230) | (230) |
Impairment loss | (154) | (154) |
Foreign Currency Translation | (107) | (107) |
Net | ||
Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 229 | 229 |
Accumulated Amortization | (189) | (178) |
Impairment loss | ||
Foreign Currency Translation | (40) | (51) |
Net |
Warranty (Details)
Warranty (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Warranty [Abstract] | ||
Product warranty period | 5 years | |
Beginning balance | $ 594 | $ 603 |
Amounts charged (credited) to expense | (40) | 116 |
Actual warranty costs paid | (28) | (75) |
Ending balance | $ 526 | $ 644 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - Line of Credit [Member] - USD ($) | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | ||
Line of credit, maximum borrowing capacity | $ 15,000,000 | |
Line of credit, amount outstanding | 0 | $ 0 |
Line of credit, remaining borrowing capacity | $ 7,018,000 | |
Line of credit facility, interest rate at period end | 4.00% | |
Line of credit, expiration date | Aug. 12, 2021 | |
Minimum liquidity | $ 10,000,000 | |
LIBOR [Member] | ||
Debt Instrument [Line Items] | ||
Line of credit, basis spread on variable rate | 2.00% |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Income Taxes [Abstract] | ||
Uncertain tax benefit positions that would reduce the effective income tax rate if recognized | $ 90,000 | |
Effective tax rate | (0.80%) | 0.10% |
Federal tax rate | 21.00% | |
Foreign net operating loss carry-forwards and credits | $ 0 | |
Foreign income taxes, net of foreign tax credits | 7.20% | |
Uncertain tax positions | $ 0 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) | 9 Months Ended |
Sep. 30, 2019segment | |
Segment Information [Abstract] | |
Number of segments | 4 |
Segment Information (Schedule o
Segment Information (Schedule of Segment Information) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||||
Sales | $ 18,222,980 | $ 15,291,993 | $ 50,346,350 | $ 47,103,837 | |
Cost of sales | 10,485,429 | 10,051,419 | 30,473,832 | 32,699,559 | |
Gross profit | 7,737,551 | 5,240,574 | 19,872,518 | 14,404,278 | |
Selling, general and administrative expenses | 6,108,756 | 6,842,348 | 18,327,186 | 20,702,476 | |
Operating profit (loss) | 1,628,795 | (1,601,774) | 1,545,332 | (6,298,198) | |
Other income (expense) | 91,936 | 54,905 | 3,170,161 | 246,020 | |
Income (Loss) from operations before income taxes | 1,720,731 | (1,546,869) | 4,715,493 | (6,052,178) | |
Depreciation and amortization | 334,000 | 523,000 | 1,088,684 | 1,695,451 | |
Capital expenditures | 83,000 | 86,000 | 343,000 | 700,000 | |
Assets | 57,707,450 | 52,256,000 | 57,707,450 | 52,256,000 | $ 53,321,164 |
Intersegment Eliminations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales | (305,000) | (212,000) | (918,000) | (703,000) | |
Cost of sales | (85,000) | (2,000) | (275,000) | (51,000) | |
Gross profit | (220,000) | (210,000) | (643,000) | (652,000) | |
Selling, general and administrative expenses | (220,000) | (210,000) | (643,000) | (652,000) | |
Depreciation and amortization | |||||
Capital expenditures | |||||
Assets | (27,000) | (27,000) | (27,000) | (27,000) | |
Transition Networks [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 12,483,000 | 9,231,000 | 30,548,000 | 26,219,000 | |
Cost of sales | 6,441,000 | 4,883,000 | 16,809,000 | 14,436,000 | |
Gross profit | 6,042,000 | 4,348,000 | 13,739,000 | 11,783,000 | |
Selling, general and administrative expenses | 3,810,000 | 3,481,000 | 11,080,000 | 10,212,000 | |
Operating profit (loss) | 2,232,000 | 867,000 | 2,659,000 | 1,571,000 | |
Other income (expense) | (11,000) | (1,000) | (12,000) | 3,000 | |
Income (Loss) from operations before income taxes | 2,221,000 | 866,000 | 2,647,000 | 1,574,000 | |
Depreciation and amortization | 74,000 | 96,000 | 224,000 | 337,000 | |
Capital expenditures | 7,000 | 31,000 | 11,000 | 69,000 | |
Assets | 18,487,000 | 17,644,000 | 18,487,000 | 17,644,000 | |
Suttle [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 4,651,000 | 5,009,000 | 14,918,000 | 17,855,000 | |
Cost of sales | 3,198,000 | 4,093,000 | 10,198,000 | 15,105,000 | |
Gross profit | 1,453,000 | 916,000 | 4,720,000 | 2,750,000 | |
Selling, general and administrative expenses | 888,000 | 1,756,000 | 2,883,000 | 5,633,000 | |
Operating profit (loss) | 565,000 | (840,000) | 1,837,000 | (2,883,000) | |
Other income (expense) | 5,000 | (5,000) | 2,994,000 | 15,000 | |
Income (Loss) from operations before income taxes | 570,000 | (845,000) | 4,831,000 | (2,868,000) | |
Depreciation and amortization | 223,000 | 374,000 | 735,000 | 1,173,000 | |
Capital expenditures | 48,000 | 16,000 | 508,000 | ||
Assets | 9,212,000 | 13,277,000 | 9,212,000 | 13,277,000 | |
JDL Technologies [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 783,000 | 859,000 | 3,942,000 | 2,482,000 | |
Cost of sales | 603,000 | 712,000 | 2,643,000 | 2,281,000 | |
Gross profit | 180,000 | 147,000 | 1,299,000 | 201,000 | |
Selling, general and administrative expenses | 349,000 | 380,000 | 1,056,000 | 1,225,000 | |
Operating profit (loss) | (169,000) | (233,000) | 243,000 | (1,024,000) | |
Other income (expense) | (10,000) | 3,000 | |||
Income (Loss) from operations before income taxes | (169,000) | (233,000) | 233,000 | (1,021,000) | |
Depreciation and amortization | 26,000 | 40,000 | 80,000 | 144,000 | |
Capital expenditures | 4,000 | 40,000 | |||
Assets | 1,419,000 | 1,177,000 | 1,419,000 | 1,177,000 | |
Net2Edge [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 611,000 | 405,000 | 1,856,000 | 1,251,000 | |
Cost of sales | 328,000 | 365,000 | 1,099,000 | 929,000 | |
Gross profit | 283,000 | 40,000 | 757,000 | 322,000 | |
Selling, general and administrative expenses | 653,000 | 809,000 | 2,162,000 | 2,533,000 | |
Operating profit (loss) | (370,000) | (769,000) | (1,405,000) | (2,211,000) | |
Other income (expense) | 22,000 | 19,000 | 25,000 | 31,000 | |
Income (Loss) from operations before income taxes | (348,000) | (750,000) | (1,380,000) | (2,180,000) | |
Depreciation and amortization | 11,000 | 13,000 | 50,000 | 41,000 | |
Capital expenditures | (7,000) | 8,000 | 109,000 | ||
Assets | 2,627,000 | 2,421,000 | 2,627,000 | 2,421,000 | |
Other [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales | |||||
Cost of sales | |||||
Gross profit | |||||
Selling, general and administrative expenses | 629,000 | 627,000 | 1,789,000 | 1,751,000 | |
Operating profit (loss) | (629,000) | (627,000) | (1,789,000) | (1,751,000) | |
Other income (expense) | 76,000 | 42,000 | 173,000 | 194,000 | |
Income (Loss) from operations before income taxes | (553,000) | (585,000) | (1,616,000) | (1,557,000) | |
Depreciation and amortization | |||||
Capital expenditures | 72,000 | 14,000 | 268,000 | 14,000 | |
Assets | $ 25,989,000 | $ 17,764,000 | $ 25,989,000 | $ 17,764,000 |
Net Income (Loss) Per Share (Na
Net Income (Loss) Per Share (Narrative) (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Stock Compensation Plan [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Dilutive effect of outstanding stock options and shares associated with long-term incentive compensation plans | 51,042 | 0 | 8,678 | 0 |
Shares not included in the computation of diluted earnings per share | 936,817 | 1,144,607 | 1,150,865 | 1,351,772 |
Performance Units [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Shares not included in the computation of diluted earnings per share | 200,260 | 309,819 | 200,260 | 309,819 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Fair Value Measurements [Abstract] | |
Transfers between levels | $ 0 |
Fair Value Measurements (Schedu
Fair Value Measurements (Schedule of Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 10,716 | |
Investments | 5,503 | |
Total | 16,219 | $ 8,428 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 10,716 | |
Total | 10,716 | 8,428 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 5,503 | |
Total | 5,503 | |
Money Market Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 10,716 | 8,428 |
Money Market Funds [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 10,716 | $ 8,428 |
Commercial Paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 4,491 | |
Commercial Paper [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 4,491 | |
Corporate Notes/Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 1,012 | |
Corporate Notes/Bonds [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | $ 1,012 |
General Commitments (Narrative)
General Commitments (Narrative) (Details) - USD ($) | Aug. 02, 2018 | Sep. 30, 2019 |
Other Commitments [Line Items] | ||
Sale of building, purchase agreement, consideration amount | $ 10,000,000 | |
Purchase agreement, buyer to complete due diligence, period | 180 days | |
Restricted cash | $ 677,269 | |
Purchase Agreement [Member] | ||
Other Commitments [Line Items] | ||
Restricted cash | $ 175,000 |
Disposition Of Assets (Narrativ
Disposition Of Assets (Narrative) (Details) - USD ($) | Apr. 05, 2019 | Jun. 30, 2019 | Sep. 30, 2019 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Proceeds from the sale of FutureLink Fiber business line | $ 5,000,000 | $ 4,857,214 | |
Restricted cash | 677,269 | ||
Gain on sale of FutureLink Fiber business line | $ 2,967,000 | 2,966,906 | |
Suttle FutureLink Fiber Business Line [Member] | Disposal Group, Not Discontinued Operations [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Restricted cash | $ 500,000 |