Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2020 | Nov. 01, 2020 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Current Fiscal Year End Date | --12-31 | |
Document Period End Date | Sep. 30, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Transition Report | false | |
Entity File Number | 001-31588 | |
Entity Registrant Name | COMMUNICATIONS SYSTEMS INC | |
Entity Incorporation, State or Country Code | MN | |
Entity Tax Identification Number | 41-0957999 | |
Entity Address, Address Line One | 10900 Red Circle Drive | |
Entity Address, City or Town | Minnetonka | |
Entity Address, State or Province | MN | |
Entity Address, Postal Zip Code | 55343 | |
City Area Code | 952 | |
Local Phone Number | 996-1674 | |
Title of 12(b) Security | Common Stock, par value , $.05 per share | |
Trading Symbol | JCS | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 9,320,475 | |
Amendment Flag | false | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0000022701 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 9,123,704 | $ 13,928,504 |
Restricted cash | 251,642 | 679,006 |
Investments | 5,264,774 | 9,449,650 |
Trade accounts receivable, less allowance for doubtful accounts of $161,000 and $154,000, respectively | 10,360,155 | 10,242,405 |
Inventories | 9,831,656 | 8,531,112 |
Prepaid income taxes | 88,580 | 72,994 |
Other current assets | 1,335,649 | 1,160,865 |
Current assets held for sale | 5,337,274 | |
TOTAL CURRENT ASSETS | 36,256,160 | 49,401,810 |
PROPERTY, PLANT AND EQUIPMENT, net | 7,302,577 | 8,238,089 |
OTHER ASSETS: | ||
Investments | 7,566,900 | 250,000 |
Goodwill | 1,370,918 | |
Deferred income taxes | 9,534 | |
Operating lease right of use asset | 463,563 | 367,909 |
Intangible assets | 2,123,667 | |
Other assets, net | 187,524 | |
Non-current assets held for sale | 445,687 | 883,370 |
TOTAL OTHER ASSETS | 12,158,259 | 1,510,813 |
TOTAL ASSETS | 55,716,996 | 59,150,712 |
CURRENT LIABILITIES: | ||
Accounts payable | 3,112,381 | 3,720,445 |
Accrued compensation and benefits | 2,622,292 | 3,517,331 |
Operating lease liability | 204,255 | 115,935 |
Other accrued liabilities | 1,606,339 | 2,602,752 |
Dividends payable | 16,637 | 200,363 |
Deferred revenue | 219,695 | |
Current liabilities held for sale | 1,193,218 | |
TOTAL CURRENT LIABILITIES | 7,781,599 | 11,350,044 |
LONG TERM LIABILITIES: | ||
Long-term compensation plans | 66,137 | 164,348 |
Operating lease liability | 252,543 | 244,038 |
Deferred revenue | 374,686 | |
TOTAL LONG-TERM LIABILITIES | 693,366 | 408,386 |
COMMITMENTS AND CONTINGENCIES (Footnote 8) | ||
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; 9,313,164 and 9,252,749 shares issued and outstanding, respectively | 465,658 | 462,637 |
Additional paid-in capital | 43,401,673 | 42,977,914 |
Retained earnings | 4,138,023 | 4,649,395 |
Accumulated other comprehensive loss | (763,323) | (697,664) |
TOTAL STOCKHOLDERS' EQUITY | 47,242,031 | 47,392,282 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 55,716,996 | $ 59,150,712 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Condensed Consolidated Balance Sheets [Abstract] | ||
Trade accounts receivable, allowance for doubtful accounts | $ 161 | $ 154 |
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 | 9,313,164 | 9,252,749 |
Common stock, shares outstanding | 9,313,164 | 9,252,749 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Condensed Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) [Abstract] | ||||
Sales | $ 12,109,529 | $ 13,622,120 | $ 30,900,223 | $ 35,542,758 |
Cost of sales | 6,927,701 | 7,337,203 | 18,501,200 | 20,391,087 |
Gross profit | 5,181,828 | 6,284,917 | 12,399,023 | 15,151,671 |
Operating expenses: | ||||
Selling, general and administrative expenses | 4,804,492 | 5,513,119 | 14,477,050 | 16,330,583 |
Acquisition costs | 71,301 | 485,886 | ||
Total operating expenses | 4,875,793 | 5,513,119 | 14,962,936 | 16,330,583 |
Operating income (loss) from continuing operations | 306,035 | 771,798 | (2,563,913) | (1,178,912) |
Other income (expenses): | ||||
Investment and other income | 263,660 | 108,349 | 663,898 | 229,981 |
Gain (loss) on sale of assets | (10,217) | 308,403 | (20,152) | |
Interest and other expense | (7,060) | (9,696) | (26,151) | (28,734) |
Other income, net | 256,600 | 88,436 | 946,150 | 181,095 |
Operating income (loss) from continuing operations before income taxes | 562,635 | 860,234 | (1,617,763) | (997,817) |
Income tax expense (benefit) | 8,952 | (26,788) | 4,049 | (42,629) |
Net income (loss) from continuing operations | 553,683 | 887,022 | (1,621,812) | (955,188) |
Net income from discontinued operations, net of tax | (291,318) | 850,837 | 1,453,289 | 5,706,338 |
Net income (loss) | 262,365 | 1,737,859 | (168,523) | 4,751,150 |
Other comprehensive income (loss), net of tax: | ||||
Unrealized gain on available-for-sale securities | (15,897) | (925) | (5,800) | (522) |
Foreign currency translation adjustment | 81,146 | (63,037) | (59,859) | (82,085) |
Total other comprehensive income (loss) | 65,249 | (63,962) | (65,659) | (82,607) |
Comprehensive income (loss) | $ 327,614 | $ 1,673,897 | $ (234,182) | $ 4,668,543 |
Basic net income (loss) per share: | ||||
Continuing operations | $ 0.06 | $ 0.10 | $ (0.17) | $ (0.11) |
Discontinued operations | (0.03) | 0.09 | 0.15 | 0.62 |
Basic net (loss) income per share | 0.03 | 0.19 | (0.02) | 0.51 |
Diluted net income (loss) per share: | ||||
Continuing operations | 0.06 | 0.10 | (0.17) | (0.10) |
Discontinued operations | (0.03) | 0.09 | 0.15 | 0.61 |
Diluted net (loss) income per share | $ 0.03 | $ 0.19 | $ (0.02) | $ 0.51 |
Weighted Average Basic Shares Outstanding | 9,355,425 | 9,317,129 | 9,323,902 | 9,270,125 |
Weighted Average Dilutive Shares Outstanding | 9,444,986 | 9,368,171 | 9,323,902 | 9,278,803 |
Dividends declared per share | $ 0.02 | $ 0.04 | $ 0.06 |
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, 2018 | $ 457,922 | $ 42,680,499 | $ (734,001) | $ (751,293) | $ 41,653,127 |
BALANCE, Shares at Dec. 31, 2018 | 9,158,438 | ||||
Net (loss) income | 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) income | (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 (loss) income | 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) income | (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 | ||||
BALANCE at Dec. 31, 2019 | $ 462,637 | 42,977,914 | 4,649,395 | (697,664) | 47,392,282 |
BALANCE, Shares at Dec. 31, 2019 | 9,252,749 | ||||
Net (loss) income | (168,523) | (168,523) | |||
Issuance of common stock under Employee Stock Purchase Plan | $ 648 | 66,246 | 66,894 | ||
Issuance of common stock under Employee Stock Purchase Plan, Shares | 12,968 | ||||
Issuance of common stock to Employee Stock Ownership Plan | $ 3,303 | 404,281 | 407,584 | ||
Issuance of common stock to Employee Stock Ownership Plan, Shares | 66,059 | ||||
Issuance of common stock under Executive Stock Plan | $ 3,218 | 20,720 | 23,938 | ||
Issuance of common stock under Executive Stock Plan, Shares | 64,352 | ||||
Share based compensation | 319,777 | 319,777 | |||
Other share retirements | $ (4,148) | (387,265) | 37,192 | (354,221) | |
Other share retirements, Shares | (82,964) | ||||
Shareholder dividends | (380,041) | (380,041) | |||
Other comprehensive (loss) income | (65,659) | (65,659) | |||
BALANCE at Sep. 30, 2020 | $ 465,658 | 43,401,673 | 4,138,023 | (763,323) | 47,242,031 |
BALANCE, Shares at Sep. 30, 2020 | 9,313,164 | ||||
BALANCE at Jun. 30, 2020 | $ 467,573 | 43,495,046 | 3,830,132 | (828,572) | 46,964,179 |
BALANCE, Shares at Jun. 30, 2020 | 9,351,486 | ||||
Net (loss) income | 262,365 | 262,365 | |||
Issuance of common stock under Employee Stock Purchase Plan | $ 245 | 24,593 | 24,838 | ||
Issuance of common stock under Employee Stock Purchase Plan, Shares | 4,899 | ||||
Issuance of common stock under Executive Stock Plan | $ 789 | 15,540 | 16,329 | ||
Issuance of common stock under Executive Stock Plan, Shares | 15,768 | ||||
Share based compensation | 143,150 | 143,150 | |||
Other share retirements | $ (2,949) | (276,656) | 44,309 | (235,296) | |
Other share retirements, Shares | (58,989) | ||||
Shareholder dividends | 1,217 | 1,217 | |||
Other comprehensive (loss) income | 65,249 | 65,249 | |||
BALANCE at Sep. 30, 2020 | $ 465,658 | $ 43,401,673 | $ 4,138,023 | $ (763,323) | $ 47,242,031 |
BALANCE, Shares at Sep. 30, 2020 | 9,313,164 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes In Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Condensed Consolidated Statements of Changes in Stockholders' Equity [Abstract] | ||||
Shareholder dividends per share | $ 0 | $ 0.02 | $ 0.04 | $ 0.06 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income (loss) | $ (168,523) | $ 4,751,150 |
Net income from discontinued operations, net of tax | 1,453,289 | 5,706,338 |
Net loss from continuing operations | (1,621,812) | (955,188) |
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities: | ||
Depreciation and amortization | 740,531 | 806,169 |
Share based compensation | 319,777 | 276,236 |
Deferred taxes | 9,534 | |
(Gain) loss on sale of assets | (303,899) | 20,152 |
Changes in assets and liabilities: | ||
Trade accounts receivable | 54,701 | (402,333) |
Inventories | (1,230,228) | 2,258,386 |
Prepaid income taxes | (15,587) | 65,772 |
Other assets, net | (21,031) | (43,385) |
Accounts payable | (655,111) | (421,309) |
Accrued compensation and benefits | (663,272) | 404,422 |
Other accrued liabilities | (666,979) | 158,112 |
Income taxes payable | (28,267) | |
Net cash (used in) provided by operating activities - continuing operations | (4,053,376) | 2,138,767 |
Net cash (used in) provided by operating activities - discontinued operations | (1,526,458) | 3,669,947 |
Net cash (used in) provided by operating activities | (5,579,834) | 5,808,714 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Capital expenditures | (182,842) | (326,291) |
Acquisition of business, net of cash acquired | (3,975,894) | |
Purchases of investments | (18,415,534) | (8,593,711) |
Proceeds from the sale of property, plant and equipment | 420,000 | |
Proceeds from the sale of investments | 15,277,710 | 3,090,437 |
Net cash used in investing activities - continuing operations | (6,876,560) | (5,829,565) |
Net cash provided by investing activities - discontinued operations | 8,059,110 | 4,903,856 |
Net cash provided by (used in) investing activities | 1,182,550 | (925,709) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Cash dividends paid | (563,766) | (556,966) |
Proceeds from issuance of common stock, net of shares withheld | 90,832 | (41,486) |
Purchase of common stock | (354,221) | |
Net cash used in financing activities | (827,155) | (598,452) |
EFFECT OF FOREIGN EXCHANGE RATE CHANGES ON CASH | (7,725) | (41,789) |
NET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | (5,232,164) | 4,242,764 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH AT BEGINNING OF PERIOD | 14,607,510 | 11,056,426 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH AT END OF PERIOD | 9,375,346 | 15,299,190 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ||
Income taxes paid (refunded) | 10,102 | (73,151) |
Interest paid | 25,387 | 28,508 |
Dividends declared not paid | 16,637 | 197,220 |
Capital expenditures in accounts payable | ||
Operating right of use assets obtained in exchange for lease obligations | $ 208,650 | $ 449,995 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2020 | |
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 in operations through its subsidiaries Transition Networks, Inc. (“Transition Networks” or “Transition”), U.K.-based Net2Edge Limited (“Net2Edge”), JDL Technologies, Incorporated (“JDL Technologies” or “JDL”), and Ecessa Corporation (“Ecessa”). During the second quarter of 2020, following the May 2020 acquisition of Ecessa and the consolidation of operations within the Transition Networks and Net2Edge divisions, the Company realigned its business operations. Following this realignment, the Company now classifies its business into two segments: (1) the Electronics & Software segment (consisting of Transition Networks and Net2Edge) which (i) manufactures and sells solutions that provide actionable intelligence, power and connectivity at the edge of networks through Power over Ethernet (“PoE”) products, software and services as well as traditional products such as media converters, network adapters and other connectivity products and (ii) designs, develops, and sells edge network access products, TDM (time-division multiplexing) over IP and other circuit emulation solutions, along with specialized cloud-based software solutions, primarily within the telecommunications market; and (2) the Services and Support segment (consisting of JDL and Ecessa), which (i) provides technology solutions including virtualization, managed services, wired and wireless network design and implementation, and hybrid cloud infrastructure and deployment and (ii) designs, develops, and sells SD-WAN (software-designed wide-area network) solutions. 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, 2020 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, 2020 and 2019 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, 2020 and 2019 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, 2019 Annual Report to Shareholders on Form 10-K (“2019 Form 10-K”). The results of operations for the period ended September 30, 2020 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 2019 Form 10-K, 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 (loss) on securities Accumulated Other Comprehensive Loss December 31, 2019 $ (709,000) $ 11,000 $ (698,000) Net current period change (60,000) (5,000) (65,000) September 30, 2020 $ (769,000) $ 6,000 $ (763,000) |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2020 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | NOTE 2 – REVENUE RECOGNITION Electronics & Software The Company has determined that the revenue recognition for its Electronics & Software segment 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. Services & Support The Company has determined that the following performance obligations identified in its Services & Support segment are transferred over time: managed services and professional services (time and materials (“T&M”) and fixed price) as well as services under maintenance and service contracts. The 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 recognized 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 are also recognized over time with an input method based on hours expended. Maintenance and service contracts are recognized evenly over the life of the contract. The Company has also identified the following performance obligations within its Services & Support segment that are recognized at a point in time which include resale of third-party hardware and software, installation, arranging for another party to transfer services 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 after the Company has transferred control when the service is first 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. 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. During the second quarter of 2020, following the May 2020 acquisition of Ecessa and the consolidation of operations within the Transition Networks and Net2Edge divisions, the Company realigned its business operations. Following this realignment, the Company now classifies its businesses into two segments, Electronics & Software and Services & Support. To conform to the presentation, the Company has reclassified the 2019 information within its financial statements in this Form 10-Q. For the Electronics & Software segment, we analyze revenue by region and product group, which is as follows for the three and nine months ended September 30, 2020 and 2019 : Electronics & Software Sales by Region Three Months Ended September 30 Nine Months Ended September 30 2020 2019 2020 2019 North America $ 7,672,000 $ 11,479,000 $ 22,019,000 $ 26,448,000 International 1,083,000 1,556,000 3,560,000 5,814,000 $ 8,755,000 $ 13,035,000 $ 25,579,000 $ 32,262,000 Electronics & Software Sales by Product Group Three Months Ended September 30 Nine Months Ended September 30 2020 2019 2020 2019 Intelligent edge solutions $ 2,990,000 $ 5,791,000 $ 9,368,000 $ 10,846,000 Traditional products 5,765,000 7,244,000 16,211,000 21,416,000 $ 8,755,000 $ 13,035,000 $ 25,579,000 $ 32,262,000 For the Services & Support segment, we analyze revenue by customer group and type, which is as follows for the three and nine months ended September 30, 2020 and 2019 : Services & Support Revenue by Customer Group Three Months Ended September 30 Nine Months Ended September 30 2020 2019 2020 2019 Education $ 2,312,000 $ 63,000 $ 3,031,000 $ 1,831,000 Healthcare 244,000 175,000 674,000 551,000 Financial and other commercial clients 799,000 353,000 1,616,000 902,000 CSI IT operations 175,000 192,000 561,000 658,000 $ 3,530,000 $ 783,000 $ 5,882,000 $ 3,942,000 Services & Support Revenue by Type Three Months Ended September 30 Nine Months Ended September 30 2020 2019 2020 2019 Project & product revenue $ 2,611,000 $ 130,000 $ 3,498,000 $ 2,124,000 Services & support revenue 919,000 653,000 2,384,000 1,818,000 $ 3,530,000 $ 783,000 $ 5,882,000 $ 3,942,000 |
Discontinued Operations
Discontinued Operations | 9 Months Ended |
Sep. 30, 2020 | |
Discontinued Operations [Abstract] | |
Discontinued Operations | NOTE 3 – DISCONTINUED OPERATIONS On March 11, 2020, the Company sold the remainder of its Suttle business lines, including the SoHo, MediaMAX, and SpeedStar brands and inventory as well as working capital, certain capital equipment, intellectual property, and customer relationships to Oldcastle Infrastructure, Inc. (“Oldcastle”) for $8,000,000 , with a working capital adjustment 90 days after close. Oldcastle will operate the majority of the acquired Suttle business through its wholly-owned subsidiary, Primex Technologies, Inc. The Company received proceeds of $ 8,243,000 and recorded a gain on the sale of $ 2,057,000 in the first nine months of 2020. Concurrent with the closing of the transaction, the Company and Oldcastle entered into a Transition Services Agreement (“TSA”) under which Suttle agreed to continue to manufacture products for Oldcastle for up to six months, to ensure seamless supply and quality assurance to the existing customer base. As of September 30, 2020, the services under the TSA were complete and the plant closed and was readied for sale. Concurrently with the closing of the transaction and the TSA, the Company and Oldcastle also entered into a lease agreement under which Oldcastle agreed to lease two buildings in Hector, Minnesota, where Suttle had conducted operations. Base rents under the lease agreement range from $6,970 to $7,180 per month. On October 29, 2020, the Company conducted an on-line auction for the remaining Suttle machinery and equipment assets in Hector and the preliminary net sales price totaled $700,000 . The associated assets and liabilities related to this sale were classified as held for sale at December 31, 2019. The presentation of discontinued operations has been retrospectively applied to all prior periods presented. The assets and liabilities of the discontinued operations classified as held for sale are as follows: September 30, 2020 December 31, 2019 Trade accounts receivable $ - $ 2,235,000 Inventories - 3,009,000 Other current assets - 93,000 Total current assets $ - $ 5,337,000 Property, plant, and equipment $ 446,000 $ 883,000 Total noncurrent assets $ 446,000 $ 883,000 Total assets held for sale $ 446,000 $ 6,220,000 Accounts payable $ - $ 1,111,000 Other accrued liabilities - 82,000 Total liabilities held for sale $ - $ 1,193,000 The financial results of the discontinued operations are as follows: Three Months Ended September 30 Nine Months Ended September 30 2020 2019 2020 2019 Sales $ - $ 4,601,000 $ 3,024,000 $ 14,804,000 Cost of sales 99,000 3,148,000 2,149,000 10,083,000 Selling, general and administrative expenses 22,000 596,000 522,000 1,997,000 Restructuring expenses 194,000 - 958,000 - Gain on sale of assets (19,000) (4,000) (2,058,000) (2,989,000) Other expense - - - - Operating (loss) income before income taxes (296,000) 861,000 1,453,000 5,713,000 Income tax expense (benefit) (5,000) 10,000 - 7,000 (Loss) income from discontinued operations $ (291,000) $ 851,000 $ 1,453,000 $ 5,706,000 During the nine months ended September 30, 2020 , the Company re corded $ 958,000 in restructuring expense. This consisted of severance and related benefits costs due to the sale of the remainder of Suttle’s business lines and the closure of the plant now that the TSA is completed. We expect total restructuring costs over 2020 and 2021 to be $ 1,100,000, including any remaining shut down costs. The Company paid $ 396,000 in restructuring charges during the first nine months of 2020 and had $ 562,000 in restructu ring accruals recorded in accrued compensation and benefits at September 30, 2020 that are expected to be paid during 2020 and 2021. |
Cash Equivalents and Investment
Cash Equivalents and Investments | 9 Months Ended |
Sep. 30, 2020 | |
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, 2020 and December 31, 2019 : September 30, 2020 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash Equivalents Short-Term Investments Long-Term Investments Cash equivalents: Money Market funds $ 7,189,000 $ - $ - $ 7,189,000 $ 7,189,000 $ - $ - Subtotal 7,189,000 - - 7,189,000 7,189,000 - - Investments: Commercial Paper 3,898,000 2,000 - 3,900,000 - 3,900,000 - Corporate Notes/Bonds 7,687,000 - (9,000) 7,678,000 - 1,365,000 6,313,000 Convertible Debt 355,000 - - 355,000 - - 355,000 Subtotal 11,940,000 2,000 (9,000) 11,933,000 - 5,265,000 6,668,000 Total $ 19,129,000 $ 2,000 $ (9,000) $ 19,122,000 $ 7,189,000 $ 5,265,000 $ 6,668,000 December 31, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash Equivalents Short-Term Investments Long-Term Investments Cash equivalents: Money Market funds $ 8,761,000 $ - $ - $ 8,761,000 $ 8,761,000 $ - $ - Subtotal 8,761,000 - - 8,761,000 8,761,000 - - Investments: Commercial Paper 8,695,000 - (1,000) 8,694,000 - 8,694,000 - Corporate Notes/Bonds 756,000 - - 756,000 - 756,000 - Convertible Debt 250,000 - - 250,000 - - 250,000 Subtotal 9,701,000 - (1,000) 9,700,000 - 9,450,000 250,000 Total $ 18,462,000 $ - $ (1,000) $ 18,461,000 $ 8,761,000 $ 9,450,000 $ 250,000 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, 2020 : Amortized Cost Estimated Market Value Due within one year $ 5,264,000 $ 5,265,000 Due after one year through five years 6,676,000 6,668,000 $ 11,940,000 $ 11,933,000 The Company did no t recognize any gross realized gains or losses during either of the three or nine month periods ending September 30, 2020 and 2019 , 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) . In April 2020, the Company made an $899,000 investment in the common stock of Quortus Ltd., a UK-based company that provides virtual core network software for Private LTE solutions for critical and secure communications. T his investment is important for the Company’s Electronics & Software segment because this segment has be en partnering with Quortus to integrate the Quortus Private LTE core in existing and new products for th at segment ’s federal business, network extensions, and private networks for enterprises. The Company’s investment represents less than 10% of the outstanding equity of Quortus Ltd. The Company uses the cost method to account for investments in common stock of entities such as Quortus if the Company does not have the ability to exercise significant influence over the operating and financial matters of the entity . The Company also uses the cost method to account for its i nvestments that are not in the form of common stock or in-substance common stock in entities if the Company does not have the ability to exercise significant influence over the entity’s operating and financial matters . |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2020 | |
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, 2020 . The ESPP is considered compensatory under current Internal Revenue Service rules. At September 30, 2020 , after giving effect to the shares issued as of that date, 76,154 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. At September 30, 2020 , 429,432 shares have been issued under the 2011 Incentive Plan, 1,509,623 shares are subject to currently outstanding options, deferred stock awards, and unvested restricted stock units, and 560,945 shares are eligible for grant under future awards. Changes in Stock Options Outstanding The following table summarizes changes in the number of outstanding stock options under the 2011 Incentive Plan over the period December 31, 2019 to September 30, 2020 : Weighted average Weighted average remaining exercise price contractual term Options per share in years Outstanding – December 31, 2019 1,130,472 $ 7.28 3.48 Awarded 159,301 5.22 Exercised (8,000) 2.64 Forfeited (46,369) 11.11 Outstanding – September 30, 2020 1,235,404 6.90 3.33 Exercisable at September 30, 2020 961,317 $ 7.58 2.65 Expected to vest September 30, 2020 1,235,404 6.90 3.33 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, 2020 was $ 193,000 . The intrinsic value of all options exercised during the nine months ended September 30, 2020 was $ 18,000 . Net cash proceeds from the exercise of all stock options were $ 0 in each of the nine-month periods ended September 30, 2020 and 2019 . 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, 2019 to September 30, 2020 : Weighted Average Grant Date Shares Fair Value Outstanding – December 31, 2019 321,227 $ 3.37 Granted 89,131 5.39 Vested (56,352) 2.64 Forfeited (79,787) 4.24 Outstanding – September 30, 2020 274,219 3.92 Compensation Expense Share-based compensation expense recognized for the nine-months ended September 30, 2020 was $ 320,000 before income taxes and $ 253,000 after income taxes. 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. Unrecognized compensation expense for the Company’s plans was $ 662,000 at September 30, 2020 and is expected to be recognized over a weighted-average period of 2.6 years. Share-based compensation expense is recorded as a part of selling, general and administrative expenses. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2020 | |
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 2020 2019 Finished goods $ 8,958,000 $ 6,728,000 Raw and processed materials 874,000 1,803,000 $ 9,832,000 $ 8,531,000 |
Acquisition
Acquisition | 9 Months Ended |
Sep. 30, 2020 | |
Acquisition [Abstract] | |
Acquisition | NOTE 7 – ACQUISITION On May 14, 2020, in a reverse triangular merger, the Company completed the acquisition of 100% of Ecessa Corporation (“Ecessa”), based in Plymouth, Minnesota. The purchase price w as $ 4,642,000 , with cash acquired totaling $ 666,000 . The purchase price includes initial consideration of $ 4,666,000 and $ (24,000) in working capital adjustments. The estimated assets and liabilities of Ecessa are recorded in the condensed consolidated balance sheet within the Services & Support segment at September 30, 2020 . The purchase price allocation was based on estimates of the fair value of assets acquired and liabilities assumed, and included total assets of $ 5,249,000 , including estimated goodwill of $ 1,371,000 and estimated intangibles of $ 2,230,000 , and total liabilities of $ 608,000 . The fair value of acquired identifiable intangible assets of $ 2,230,000 is provisional depending on the final valuations for those assets. All balances recorded are estimated amounts and the Company expects to finalize the purchase price allocation during the fourth quarter of 2020 as the valuation of identifiable assets and liabilities is completed. The pro forma impact of Ecessa was not significant to the Company’s results for the three and nine months ended September 30, 2020 . Ecessa’s revenue and operating loss since acquisition are $ 798,000 and $ (319,000) , respectively. The operating loss is primarily due to the revaluation of $1,561,000 of pre-acquisition deferred revenue to a preliminary fair value of $257,000 as of the opening balance sheet date and $106,000 of intangibles amortization, thus lowering revenue recognized and increasing post-acquisition expenses on a similar operating cost structure. The Company is still in process of integrating Ecessa into its operations and therefore has not realized all potential cost-saving synergies. The Company will include further, more detailed information on the 2020 post-acquisition Ecessa operating results in the 2020 Form 10-K. |
Contingencies
Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
General Commitments and Contingencies [Abstract] | |
Contingencies | NOTE 8 – 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, 2020 | |
Debt [Abstract] | |
Debt | NOTE 9 – DEBT Line of Credit On August 28, 2020, the Company entered into a Credit Agreement with Wells Fargo Bank, National Association, establishing a $5,000,000 line of credit facility agreement, that replaced a prior facility. On October 29, 2020, the Company entered into a First Amendment to the Credit Agreement. Under the Credit Agreement, as amended, the Company has the ability to obtain one or more letters of credit in an aggregate amount up to $2,000,000 , subject to the general terms of the credit agreement. The Company had no outstanding borrowings against the line of credit, or the prior credit facility, at September 30, 2020 or December 31, 2019 and $ 3,976,000 of the credit line is available for use. Due to the revolving nature of loans under this credit facility, additional borrowings and periodic repayments and re-borrowings may be made until the maturity date. Interest on borrowings on the credit line is at LIBOR plus 1.25% , with a minimum LIBOR rate of 0.75% , ( 2.0% at September 30, 2020 ). The Credit Agreement expires August 28, 2021 and is secured by assets of the Company. The Credit Agreement contains financial covenants including a tangible net worth minimum. The Company was in compliance with its financial covenants at September 30, 2020 . |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2020 | |
Income Taxes [Abstract] | |
Income Taxes | NOTE 10 – 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, 2020 there was $ 111,000 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 2017 - 2019 remain open to examination by the Internal Revenue Service and the years 2016 - 2019 remain open to examination by various state tax departments. The tax years from 2016 - 2018 remain open in Costa Rica. The Company’s effective income tax rate was (0.3%) for the first nine months of 2020 . The effective tax rate differs from the federal tax rate of 21 % due to state income taxes, foreign tax rate differences, foreign losses not deductible for U.S. income tax purposes, the effect of uncertain income tax positions, stock compensation windfalls 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 99.3% for the nine months ended September 30, 2020 . There were no additional uncertain tax positions identified in the first nine months of 2020 . The Company's effective income tax rate for the nine months ended September 30 , 2019 was 4 .3% , 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, changes in the reserve for uncertain income tax positions, 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, 2020 | |
Segment Information [Abstract] | |
Segment Information | NOTE 11 – SEGMENT INFORMATION Following the acquisition of Ecessa during the second quarter of 2020 and the merging of certain operations, the Company classifies its remaining businesses into two segments as follows: · Electronics & Software: designs, develops and sells Intelligent Edge solutions that provide connectivity and power through PoE products and actionable intelligence to end devices in an IoT ecosystem through embedded and cloud-based management software. In addition, this segment continues to generate revenue from its traditional products consisting of, media converters, NICs, and Ethernet switches that offer the ability to affordably integrate the benefits of fiber optics into any data network; and · Services & Support: provides technology solutions that address prevalent IT challenges, including network resiliency, security products and services, network virtualization, and cloud migrations, IT managed services, wired and wireless network design and implementation, and converged infrastructure configuration, deployment and management . Management has chosen to organize the Company and disclose reportable segments based on our products and services. Intersegment revenues are eliminated upon consolidation. “Other” includes non-allocated corporate overhead costs. As a result of our treatment of Suttle as discontinued operations, “Other” includes amounts previously allocated to Suttle that do not meet the criteria to be included in income from discontinued operations. The Company has reclassified its 2019 financial statements to conform to its new segment reporting. Information concerning the Company’s continuing operations in these two segments for the three and nine-month periods ended September 30, 2020 and 2019 are as follows: Electronics & Services & Intersegment Software Support Other Eliminations Total Three Months Ended September 30, 2020 Sales $ 8,755,000 $ 3,530,000 $ - $ (175,000) $ 12,110,000 Cost of sales 4,746,000 2,190,000 - (8,000) 6,928,000 Gross profit 4,009,000 1,340,000 - (167,000) 5,182,000 Selling, general and administrative expenses 3,281,000 909,000 782,000 (167,000) 4,805,000 Acquisition costs - - 71,000 - 71,000 Operating income (loss) 728,000 431,000 (853,000) - 306,000 Other (expense) income (18,000) - 275,000 - 257,000 Income (loss) before income tax $ 710,000 $ 431,000 $ (578,000) $ - $ 563,000 Depreciation and amortization $ 71,000 $ 146,000 $ 94,000 $ - $ 311,000 Capital expenditures $ 14,000 $ - $ 79,000 $ - $ 93,000 Assets $ 16,600,000 $ 9,034,000 $ 30,110,000 $ (27,000) $ 55,717,000 Electronics & Services & Intersegment Software Support Other Eliminations Total Three Months Ended September 30, 2019 Sales $ 13,035,000 $ 783,000 $ - $ (196,000) $ 13,622,000 Cost of sales 6,753,000 603,000 - (19,000) 7,337,000 Gross profit 6,282,000 180,000 - (177,000) 6,285,000 Selling, general and administrative expenses 4,419,000 349,000 922,000 (177,000) 5,513,000 Operating income (loss) 1,863,000 (169,000) (922,000) - 772,000 Other income 11,000 - 77,000 - 88,000 Income (loss) before income tax $ 1,874,000 $ (169,000) $ (845,000) $ - $ 860,000 Depreciation and amortization $ 86,000 $ 25,000 $ 154,000 $ - $ 265,000 Capital expenditures $ 8,000 $ 4,000 $ 71,000 $ - $ 83,000 Assets $ 21,114,000 $ 1,419,000 $ 35,201,000 $ (27,000) $ 57,707,000 Electronics & Services & Intersegment Software Support Other Eliminations Total Nine Months Ended September 30, 2020 Sales $ 25,579,000 $ 5,882,000 $ - $ (561,000) $ 30,900,000 Cost of sales 14,745,000 3,792,000 - (36,000) 18,501,000 Gross profit 10,834,000 2,090,000 - (525,000) 12,399,000 Selling, general and administrative expenses 10,816,000 1,720,000 2,466,000 (525,000) 14,477,000 Acquisition costs - - 486,000 - 486,000 Operating income (loss) 18,000 370,000 (2,952,000) - (2,564,000) Other (expense) income (1,000) - 947,000 - 946,000 Income (loss) before income tax $ 17,000 $ 370,000 $ (2,005,000) $ - $ (1,618,000) Depreciation and amortization $ 218,000 $ 178,000 $ 345,000 $ - $ 741,000 Capital expenditures $ 82,000 $ 1,000 $ 100,000 $ - $ 183,000 Electronics & Services & Intersegment Software Support Other Eliminations Total Nine Months Ended September 30, 2019 Sales $ 32,262,000 $ 3,942,000 $ - $ (661,000) $ 35,543,000 Cost of sales 17,892,000 2,643,000 - (144,000) 20,391,000 Gross profit 14,370,000 1,299,000 - (517,000) 15,152,000 Selling, general and administrative expenses 13,116,000 1,056,000 2,676,000 (517,000) 16,331,000 Operating income (loss) 1,254,000 243,000 (2,676,000) - (1,179,000) Other income (expense) 12,000 (10,000) 179,000 - 181,000 Income (loss) before income tax $ 1,266,000 $ 233,000 $ (2,497,000) $ - $ (998,000) Depreciation and amortization $ 274,000 $ 80,000 $ 452,000 $ - $ 806,000 Capital expenditures $ 19,000 $ 39,000 $ 268,000 $ - $ 326,000 |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 9 Months Ended |
Sep. 30, 2020 | |
Net Income (Loss) Per Share [Abstract] | |
Net Income (Loss) Per Share | NOTE 12 – 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 89,561 and 0 shares for the three and nine months ended September 30, 2020, respectively . The dilutive effect for the three and nine-month periods ended September 30 , 2019 was 51,042 and 8,678 shares, respectively. The Company calculates the dilutive effect of outstanding options using the treasury stock method. Due to the net losses in the first nine months ended September 30, 2020, there was no dilutive impact from stock options or unvested shares. Options totaling 791,415 and 727,915 were excluded from the calculation of diluted earnings per share for the three and nine months ended September 30, 2020 , respectively because the exercise price was greater than the average market price of common stock during the period and deferred stock awards totaling 110,308 shares would not have been included for the three and nine months ended September 30, 2020 , because of unmet performance conditions. 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, respectively 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. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | NOTE 13 – 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, 2020 and December 31, 2019 , are summarized below: September 30, 2020 Level 1 Level 2 Level 3 Total Fair Value Cash equivalents: Money Market Funds $ 7,189,000 $ - $ - $ 7,189,000 Subtotal 7,189,000 - - 7,189,000 Short-term investments: Commercial Paper - 3,900,000 - 3,900,000 Corporate Notes/Bonds - 1,365,000 - 1,365,000 Subtotal - 5,265,000 - 5,265,000 Long-term investments: Corporate Notes/Bonds - 6,313,000 - 6,313,000 Convertible debt - - 355,000 355,000 Subtotal - 6,313,000 355,000 6,668,000 Total $ 7,189,000 $ 11,578,000 $ 355,000 $ 19,122,000 December 31, 2019 Level 1 Level 2 Level 3 Total Fair Value Cash equivalents: Money Market Funds $ 8,761,000 $ - $ - $ 8,761,000 Subtotal 8,761,000 - - 8,761,000 Short-term investments: Commercial Paper - 8,694,000 - 8,694,000 Corporate Notes/Bonds - 756,000 - 756,000 Subtotal - 9,450,000 - 9,450,000 Long-term investments: Convertible debt - - 250,000 250,000 Subtotal - - 250,000 250,000 Total $ 8,761,000 $ 9,450,000 $ 250,000 $ 18,461,000 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 three and nine months ended September 30, 2020 . |
General Commitments
General Commitments | 9 Months Ended |
Sep. 30, 2020 | |
General Commitments and Contingencies [Abstract] | |
General Commitments | NOTE 14 – 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 and JDL Technologies. This agreement was terminated on July 28, 2020 and earnest money totaling $225,000 was transferred to the Company and recognized as other income in the accompanying condensed consolidated statement s of income (loss) and comprehensive income (loss) for the three and nine months ended September 30, 2020. The Company is reviewing options to continue to use or sell the property. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2020 | |
Recent Accounting Pronouncements [Abstract] | |
Recent Accounting Pronouncements | NOTE 15 – RECENT ACCOUNTING PRONOUNCEMENTS In December 2019, the FASB issued ASU 2019-12, “Simplifying the Accounting for Income Taxes”, which, as part of its Simplification Initiative to reduce the cost and complexity in accounting for income taxes, removes certain exceptions related to the approach for intra-period tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. ASU 2019-12 also amends other aspects of the guidance to help simplify and promote consistent application of GAAP. The guidance is effective for interim and annual periods beginning after December 15, 2020, with early adoption permitted. The Company adopted this standard during the first quarter of 2020 with an immaterial impact to our consolidated financial statements. 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, 2022, which for us is the first quarter ending March 31, 2023. 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, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 16 – SUBSEQUENT EVENTS On November 3, 2020, the Company acquired the operating assets of privately held IVDesk M innesota, Inc. (“IVDesk”) from a third party receiver (“Receiver”) appointed by Hennepin County, Minnesota State District Court Judge for aggregate consideration of up to $1,500,000 . The transaction was structured as an asset purchase under which the Company paid $950,000 in cash at closing with up to an additional $550,000 payment contingent on an earn-out tied to customer retention. The Company provided the Receiver as seller a $550,000 letter of credit to secure its obligation to pay the earn-out under the asset purchase agreement. IVDesk provides private cloud services to small- and mid-size businesses (SMB), with a particular focus on the financial services industry. IVDesk currently services over 85 customers across the US with a focus on a tri-state region with Minnesota at the center. IVDesk’s business model is built on monthly recurring revenue. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policy) | 9 Months Ended |
Sep. 30, 2020 | |
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 in operations through its subsidiaries Transition Networks, Inc. (“Transition Networks” or “Transition”), U.K.-based Net2Edge Limited (“Net2Edge”), JDL Technologies, Incorporated (“JDL Technologies” or “JDL”), and Ecessa Corporation (“Ecessa”). During the second quarter of 2020, following the May 2020 acquisition of Ecessa and the consolidation of operations within the Transition Networks and Net2Edge divisions, the Company realigned its business operations. Following this realignment, the Company now classifies its business into two segments: (1) the Electronics & Software segment (consisting of Transition Networks and Net2Edge) which (i) manufactures and sells solutions that provide actionable intelligence, power and connectivity at the edge of networks through Power over Ethernet (“PoE”) products, software and services as well as traditional products such as media converters, network adapters and other connectivity products and (ii) designs, develops, and sells edge network access products, TDM (time-division multiplexing) over IP and other circuit emulation solutions, along with specialized cloud-based software solutions, primarily within the telecommunications market; and (2) the Services and Support segment (consisting of JDL and Ecessa), which (i) provides technology solutions including virtualization, managed services, wired and wireless network design and implementation, and hybrid cloud infrastructure and deployment and (ii) designs, develops, and sells SD-WAN (software-designed wide-area network) solutions. 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, 2020 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, 2020 and 2019 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, 2020 and 2019 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, 2019 Annual Report to Shareholders on Form 10-K (“2019 Form 10-K”). The results of operations for the period ended September 30, 2020 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 2019 Form 10-K, 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 (loss) on securities Accumulated Other Comprehensive Loss December 31, 2019 $ (709,000) $ 11,000 $ (698,000) Net current period change (60,000) (5,000) (65,000) September 30, 2020 $ (769,000) $ 6,000 $ (763,000) |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Summary of Significant Accounting Policies [Abstract] | |
Components of Accumulated Other Comprehensive Loss | Foreign Currency Translation Unrealized gain (loss) on securities Accumulated Other Comprehensive Loss December 31, 2019 $ (709,000) $ 11,000 $ (698,000) Net current period change (60,000) (5,000) (65,000) September 30, 2020 $ (769,000) $ 6,000 $ (763,000) |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Revenue Recognition [Abstract] | |
Schedule of Disaggregation of Revenues | For the Electronics & Software segment, we analyze revenue by region and product group, which is as follows for the three and nine months ended September 30, 2020 and 2019 : Electronics & Software Sales by Region Three Months Ended September 30 Nine Months Ended September 30 2020 2019 2020 2019 North America $ 7,672,000 $ 11,479,000 $ 22,019,000 $ 26,448,000 International 1,083,000 1,556,000 3,560,000 5,814,000 $ 8,755,000 $ 13,035,000 $ 25,579,000 $ 32,262,000 Electronics & Software Sales by Product Group Three Months Ended September 30 Nine Months Ended September 30 2020 2019 2020 2019 Intelligent edge solutions $ 2,990,000 $ 5,791,000 $ 9,368,000 $ 10,846,000 Traditional products 5,765,000 7,244,000 16,211,000 21,416,000 $ 8,755,000 $ 13,035,000 $ 25,579,000 $ 32,262,000 For the Services & Support segment, we analyze revenue by customer group and type, which is as follows for the three and nine months ended September 30, 2020 and 2019 : Services & Support Revenue by Customer Group Three Months Ended September 30 Nine Months Ended September 30 2020 2019 2020 2019 Education $ 2,312,000 $ 63,000 $ 3,031,000 $ 1,831,000 Healthcare 244,000 175,000 674,000 551,000 Financial and other commercial clients 799,000 353,000 1,616,000 902,000 CSI IT operations 175,000 192,000 561,000 658,000 $ 3,530,000 $ 783,000 $ 5,882,000 $ 3,942,000 Services & Support Revenue by Type Three Months Ended September 30 Nine Months Ended September 30 2020 2019 2020 2019 Project & product revenue $ 2,611,000 $ 130,000 $ 3,498,000 $ 2,124,000 Services & support revenue 919,000 653,000 2,384,000 1,818,000 $ 3,530,000 $ 783,000 $ 5,882,000 $ 3,942,000 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Discontinued Operations [Abstract] | |
Schedule of Discontinued Operations Assets and Liabilities Classified as Held-for-Sale | September 30, 2020 December 31, 2019 Trade accounts receivable $ - $ 2,235,000 Inventories - 3,009,000 Other current assets - 93,000 Total current assets $ - $ 5,337,000 Property, plant, and equipment $ 446,000 $ 883,000 Total noncurrent assets $ 446,000 $ 883,000 Total assets held for sale $ 446,000 $ 6,220,000 Accounts payable $ - $ 1,111,000 Other accrued liabilities - 82,000 Total liabilities held for sale $ - $ 1,193,000 |
Schedule of Financial Results of Discontinued Operations | Three Months Ended September 30 Nine Months Ended September 30 2020 2019 2020 2019 Sales $ - $ 4,601,000 $ 3,024,000 $ 14,804,000 Cost of sales 99,000 3,148,000 2,149,000 10,083,000 Selling, general and administrative expenses 22,000 596,000 522,000 1,997,000 Restructuring expenses 194,000 - 958,000 - Gain on sale of assets (19,000) (4,000) (2,058,000) (2,989,000) Other expense - - - - Operating (loss) income before income taxes (296,000) 861,000 1,453,000 5,713,000 Income tax expense (benefit) (5,000) 10,000 - 7,000 (Loss) income from discontinued operations $ (291,000) $ 851,000 $ 1,453,000 $ 5,706,000 |
Cash Equivalents and Investme_2
Cash Equivalents and Investments (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Cash Equivalents and Investments [Abstract] | |
Schedule of Cash Equivalents and Available-for-Sale Securities | September 30, 2020 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash Equivalents Short-Term Investments Long-Term Investments Cash equivalents: Money Market funds $ 7,189,000 $ - $ - $ 7,189,000 $ 7,189,000 $ - $ - Subtotal 7,189,000 - - 7,189,000 7,189,000 - - Investments: Commercial Paper 3,898,000 2,000 - 3,900,000 - 3,900,000 - Corporate Notes/Bonds 7,687,000 - (9,000) 7,678,000 - 1,365,000 6,313,000 Convertible Debt 355,000 - - 355,000 - - 355,000 Subtotal 11,940,000 2,000 (9,000) 11,933,000 - 5,265,000 6,668,000 Total $ 19,129,000 $ 2,000 $ (9,000) $ 19,122,000 $ 7,189,000 $ 5,265,000 $ 6,668,000 December 31, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash Equivalents Short-Term Investments Long-Term Investments Cash equivalents: Money Market funds $ 8,761,000 $ - $ - $ 8,761,000 $ 8,761,000 $ - $ - Subtotal 8,761,000 - - 8,761,000 8,761,000 - - Investments: Commercial Paper 8,695,000 - (1,000) 8,694,000 - 8,694,000 - Corporate Notes/Bonds 756,000 - - 756,000 - 756,000 - Convertible Debt 250,000 - - 250,000 - - 250,000 Subtotal 9,701,000 - (1,000) 9,700,000 - 9,450,000 250,000 Total $ 18,462,000 $ - $ (1,000) $ 18,461,000 $ 8,761,000 $ 9,450,000 $ 250,000 |
Schedule of Estimated Fair Value of Available-for-Sale Securities | Amortized Cost Estimated Market Value Due within one year $ 5,264,000 $ 5,265,000 Due after one year through five years 6,676,000 6,668,000 $ 11,940,000 $ 11,933,000 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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, 2019 1,130,472 $ 7.28 3.48 Awarded 159,301 5.22 Exercised (8,000) 2.64 Forfeited (46,369) 11.11 Outstanding – September 30, 2020 1,235,404 6.90 3.33 Exercisable at September 30, 2020 961,317 $ 7.58 2.65 Expected to vest September 30, 2020 1,235,404 6.90 3.33 |
Schedule of Changes in the Number of Deferred Stock Shares Under the Incentive Plan | Weighted Average Grant Date Shares Fair Value Outstanding – December 31, 2019 321,227 $ 3.37 Granted 89,131 5.39 Vested (56,352) 2.64 Forfeited (79,787) 4.24 Outstanding – September 30, 2020 274,219 3.92 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Inventories [Abstract] | |
Schedule of Inventories | September 30 December 31 2020 2019 Finished goods $ 8,958,000 $ 6,728,000 Raw and processed materials 874,000 1,803,000 $ 9,832,000 $ 8,531,000 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Segment Information [Abstract] | |
Schedule of Segment Information | Electronics & Services & Intersegment Software Support Other Eliminations Total Three Months Ended September 30, 2020 Sales $ 8,755,000 $ 3,530,000 $ - $ (175,000) $ 12,110,000 Cost of sales 4,746,000 2,190,000 - (8,000) 6,928,000 Gross profit 4,009,000 1,340,000 - (167,000) 5,182,000 Selling, general and administrative expenses 3,281,000 909,000 782,000 (167,000) 4,805,000 Acquisition costs - - 71,000 - 71,000 Operating income (loss) 728,000 431,000 (853,000) - 306,000 Other (expense) income (18,000) - 275,000 - 257,000 Income (loss) before income tax $ 710,000 $ 431,000 $ (578,000) $ - $ 563,000 Depreciation and amortization $ 71,000 $ 146,000 $ 94,000 $ - $ 311,000 Capital expenditures $ 14,000 $ - $ 79,000 $ - $ 93,000 Assets $ 16,600,000 $ 9,034,000 $ 30,110,000 $ (27,000) $ 55,717,000 Electronics & Services & Intersegment Software Support Other Eliminations Total Three Months Ended September 30, 2019 Sales $ 13,035,000 $ 783,000 $ - $ (196,000) $ 13,622,000 Cost of sales 6,753,000 603,000 - (19,000) 7,337,000 Gross profit 6,282,000 180,000 - (177,000) 6,285,000 Selling, general and administrative expenses 4,419,000 349,000 922,000 (177,000) 5,513,000 Operating income (loss) 1,863,000 (169,000) (922,000) - 772,000 Other income 11,000 - 77,000 - 88,000 Income (loss) before income tax $ 1,874,000 $ (169,000) $ (845,000) $ - $ 860,000 Depreciation and amortization $ 86,000 $ 25,000 $ 154,000 $ - $ 265,000 Capital expenditures $ 8,000 $ 4,000 $ 71,000 $ - $ 83,000 Assets $ 21,114,000 $ 1,419,000 $ 35,201,000 $ (27,000) $ 57,707,000 Electronics & Services & Intersegment Software Support Other Eliminations Total Nine Months Ended September 30, 2020 Sales $ 25,579,000 $ 5,882,000 $ - $ (561,000) $ 30,900,000 Cost of sales 14,745,000 3,792,000 - (36,000) 18,501,000 Gross profit 10,834,000 2,090,000 - (525,000) 12,399,000 Selling, general and administrative expenses 10,816,000 1,720,000 2,466,000 (525,000) 14,477,000 Acquisition costs - - 486,000 - 486,000 Operating income (loss) 18,000 370,000 (2,952,000) - (2,564,000) Other (expense) income (1,000) - 947,000 - 946,000 Income (loss) before income tax $ 17,000 $ 370,000 $ (2,005,000) $ - $ (1,618,000) Depreciation and amortization $ 218,000 $ 178,000 $ 345,000 $ - $ 741,000 Capital expenditures $ 82,000 $ 1,000 $ 100,000 $ - $ 183,000 Electronics & Services & Intersegment Software Support Other Eliminations Total Nine Months Ended September 30, 2019 Sales $ 32,262,000 $ 3,942,000 $ - $ (661,000) $ 35,543,000 Cost of sales 17,892,000 2,643,000 - (144,000) 20,391,000 Gross profit 14,370,000 1,299,000 - (517,000) 15,152,000 Selling, general and administrative expenses 13,116,000 1,056,000 2,676,000 (517,000) 16,331,000 Operating income (loss) 1,254,000 243,000 (2,676,000) - (1,179,000) Other income (expense) 12,000 (10,000) 179,000 - 181,000 Income (loss) before income tax $ 1,266,000 $ 233,000 $ (2,497,000) $ - $ (998,000) Depreciation and amortization $ 274,000 $ 80,000 $ 452,000 $ - $ 806,000 Capital expenditures $ 19,000 $ 39,000 $ 268,000 $ - $ 326,000 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Measurements [Abstract] | |
Schedule of Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis | September 30, 2020 Level 1 Level 2 Level 3 Total Fair Value Cash equivalents: Money Market Funds $ 7,189,000 $ - $ - $ 7,189,000 Subtotal 7,189,000 - - 7,189,000 Short-term investments: Commercial Paper - 3,900,000 - 3,900,000 Corporate Notes/Bonds - 1,365,000 - 1,365,000 Subtotal - 5,265,000 - 5,265,000 Long-term investments: Corporate Notes/Bonds - 6,313,000 - 6,313,000 Convertible debt - - 355,000 355,000 Subtotal - 6,313,000 355,000 6,668,000 Total $ 7,189,000 $ 11,578,000 $ 355,000 $ 19,122,000 December 31, 2019 Level 1 Level 2 Level 3 Total Fair Value Cash equivalents: Money Market Funds $ 8,761,000 $ - $ - $ 8,761,000 Subtotal 8,761,000 - - 8,761,000 Short-term investments: Commercial Paper - 8,694,000 - 8,694,000 Corporate Notes/Bonds - 756,000 - 756,000 Subtotal - 9,450,000 - 9,450,000 Long-term investments: Convertible debt - - 250,000 250,000 Subtotal - - 250,000 250,000 Total $ 8,761,000 $ 9,450,000 $ 250,000 $ 18,461,000 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Narrative) (Details) | 9 Months Ended |
Sep. 30, 2020segment | |
Summary of Significant Accounting Policies [Abstract] | |
Number of segments | 2 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Components of Accumulated Other Comprehensive Loss) (Details) | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
BALANCE | $ 47,392,282 |
BALANCE | 47,242,031 |
Foreign Currency Translation [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
BALANCE | (709,000) |
Net current period change | (60,000) |
BALANCE | (769,000) |
Unrealized gain (loss) on securities [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
BALANCE | 11,000 |
Net current period change | (5,000) |
BALANCE | 6,000 |
Accumulated Other Comprehensive Loss [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
BALANCE | (697,664) |
Net current period change | (65,000) |
BALANCE | $ (763,323) |
Revenue Recognition (Narrative)
Revenue Recognition (Narrative) (Details) | 9 Months Ended |
Sep. 30, 2020segment | |
Revenue Recognition [Abstract] | |
Number of segments | 2 |
Revenue Recognition (Schedule o
Revenue Recognition (Schedule of Disaggregation of Revenues) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 12,109,529 | $ 13,622,120 | $ 30,900,223 | $ 35,542,758 |
Electronics & Software Segment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 8,755,000 | 13,035,000 | 25,579,000 | 32,262,000 |
Electronics & Software Segment [Member] | North America [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 7,672,000 | 11,479,000 | 22,019,000 | 26,448,000 |
Electronics & Software Segment [Member] | International [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,083,000 | 1,556,000 | 3,560,000 | 5,814,000 |
Electronics & Software Segment [Member] | Intelligent Edge Solutions [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 2,990,000 | 5,791,000 | 9,368,000 | 10,846,000 |
Electronics & Software Segment [Member] | Traditional Products [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 5,765,000 | 7,244,000 | 16,211,000 | 21,416,000 |
Services & Support Segment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 3,530,000 | 783,000 | 5,882,000 | 3,942,000 |
Services & Support Segment [Member] | Education [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 2,312,000 | 63,000 | 3,031,000 | 1,831,000 |
Services & Support Segment [Member] | Healthcare [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 244,000 | 175,000 | 674,000 | 551,000 |
Services & Support Segment [Member] | Financial and Other Commercial Clients [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 799,000 | 353,000 | 1,616,000 | 902,000 |
Services & Support Segment [Member] | CSI IT Operations [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 175,000 | 192,000 | 561,000 | 658,000 |
Services & Support Segment [Member] | Project & Product [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 2,611,000 | 130,000 | 3,498,000 | 2,124,000 |
Services & Support Segment [Member] | Services & Support [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 919,000 | $ 653,000 | $ 2,384,000 | $ 1,818,000 |
Discontinued Operations (Narrat
Discontinued Operations (Narrative) (Details) | Oct. 29, 2020USD ($) | Mar. 11, 2020USD ($)item | Sep. 30, 2020USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Proceeds from sale | $ 8,243,000 | ||||
Gain on sale of business line | 2,057,000 | ||||
Number of buildings leased to purchaser | item | 2 | ||||
Restructuring expense | 958,000 | ||||
Restructuring payments | 396,000 | ||||
Restructuring accrual | $ 562,000 | ||||
Scenario, Forecast [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Restructuring expense | $ 1,100,000 | $ 1,100,000 | |||
Remainder of Suttle Business Lines [Member] | Discontinued Operations, Disposed of by Sale [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Proceeds from sale | $ 8,000,000 | ||||
Working capital adjustment, period after close | 90 days | ||||
Subsequent Event [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Proceeds from sale | $ 700,000 | ||||
Minimum [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Base rents | $ 6,970 | ||||
Maximum [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Base rents | $ 7,180 | ||||
Suttle [Member] | Maximum [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Continuation of product manufacturing, period | 6 months |
Discontinued Operations (Schedu
Discontinued Operations (Schedule of Discontinued Operations Assets and Liabilities Classified as Held-for-Sale) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Discontinued Operations [Abstract] | ||
Trade accounts receivable | $ 2,235 | |
Inventories | 3,009 | |
Other current assets | 93 | |
Total current assets | 5,337 | |
Property, plant, and equipment | 446 | 883 |
Total noncurrent assets | 446 | 883 |
Total assets held for sale | 446 | 6,220 |
Accounts payable | 1,111 | |
Other accrued liabilities | 82 | |
Total liabilities held for sale | $ 1,193 |
Discontinued Operations (Sche_2
Discontinued Operations (Schedule of Financial Results of Discontinued Operations) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Discontinued Operations [Abstract] | ||||
Sales | $ 4,601,000 | $ 3,024,000 | $ 14,804,000 | |
Cost of sales | $ 99,000 | 3,148,000 | 2,149,000 | 10,083,000 |
Selling, general and administrative expenses | 22,000 | 596,000 | 522,000 | 1,997,000 |
Restructuring expenses | 194,000 | 958,000 | ||
Gain on sale of assets | (19,000) | (4,000) | (2,058,000) | (2,989,000) |
Operating (loss) income before income taxes | (296,000) | 861,000 | 1,453,000 | 5,713,000 |
Income tax expense (benefit) | (5,000) | 10,000 | 7,000 | |
(Loss) income from discontinued | $ (291,318) | $ 850,837 | $ 1,453,289 | $ 5,706,338 |
Cash Equivalents and Investme_3
Cash Equivalents and Investments (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Apr. 30, 2020 | |
Debt and Equity Securities, FV-NI [Line Items] | |||||
Gross realized gains (losses) | $ 0 | $ 0 | $ 0 | $ 0 | |
Common Stock [Member] | |||||
Debt and Equity Securities, FV-NI [Line Items] | |||||
Investment | $ 899,000 |
Cash Equivalents and Investme_4
Cash Equivalents and Investments (Schedule of Cash Equivalents and Available-for-Sale Securities) (Details) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 19,129,000 | $ 18,462,000 |
Gross Unrealized Gains | 2,000 | |
Gross Unrealized Losses | (9,000) | (1,000) |
Fair Value | 19,122,000 | 18,461,000 |
Cash Equivalents | 7,189,000 | 8,761,000 |
Short-Term Investments | 5,264,774 | 9,449,650 |
Long-Term Investments | 6,668,000 | 250,000 |
Cash Equivalents [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 7,189,000 | 8,761,000 |
Gross Unrealized Gains | ||
Gross Unrealized Losses | ||
Fair Value | 7,189,000 | 8,761,000 |
Cash Equivalents | 7,189,000 | 8,761,000 |
Short-Term Investments | ||
Long-Term Investments | ||
Cash Equivalents [Member] | Money Market Funds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 7,189,000 | 8,761,000 |
Gross Unrealized Gains | ||
Gross Unrealized Losses | ||
Fair Value | 7,189,000 | 8,761,000 |
Cash Equivalents | 7,189,000 | 8,761,000 |
Short-Term Investments | ||
Long-Term Investments | ||
Investments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 11,940,000 | 9,701,000 |
Gross Unrealized Gains | 2,000 | |
Gross Unrealized Losses | (9,000) | (1,000) |
Fair Value | 11,933,000 | 9,700,000 |
Cash Equivalents | ||
Short-Term Investments | 5,265,000 | 9,450,000 |
Long-Term Investments | 6,668,000 | 250,000 |
Investments [Member] | Commercial Paper [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 3,898,000 | 8,695,000 |
Gross Unrealized Gains | 2,000 | |
Gross Unrealized Losses | (1,000) | |
Fair Value | 3,900,000 | 8,694,000 |
Cash Equivalents | ||
Short-Term Investments | 3,900,000 | 8,694,000 |
Long-Term Investments | ||
Investments [Member] | Corporate Notes/Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 7,687,000 | 756,000 |
Gross Unrealized Gains | ||
Gross Unrealized Losses | (9,000) | |
Fair Value | 7,678,000 | 756,000 |
Cash Equivalents | ||
Short-Term Investments | 1,365,000 | 756,000 |
Long-Term Investments | 6,313,000 | |
Investments [Member] | Convertible Debt [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 355,000 | 250,000 |
Gross Unrealized Gains | ||
Gross Unrealized Losses | ||
Fair Value | 355,000 | 250,000 |
Cash Equivalents | ||
Short-Term Investments | ||
Long-Term Investments | $ 355,000 | $ 250,000 |
Cash Equivalents and Investme_5
Cash Equivalents and Investments (Schedule of Estimated Fair Value of Available-for-Sale Securities) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Schedule of Available-for-sale Securities [Line Items] | ||
Estimated Market Value | $ 19,122 | $ 18,461 |
Investments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost, Due within one year | 5,264 | |
Amortized Cost, Due after one year through five years | 6,676 | |
Amortized Cost | 11,940 | |
Estimated Market Value, Due within one year | 5,265 | |
Estimated Market Value, Due after one year through five years | 6,668 | |
Estimated Market Value | $ 11,933 | $ 9,700 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - USD ($) | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | May 19, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of options outstanding | 1,235,404 | 1,130,472 | ||
Aggregate intrinsic value of options outstanding | $ 193,000 | |||
Intrinsic value of all options exercised | 18,000 | |||
Net cash proceeds from exercise of stock options | 0 | $ 0 | ||
Share based compensation expense before income taxes | 320,000 | 276,000 | ||
Share based compensation expense after income taxes | 253,000 | $ 218,000 | ||
Unrecognized compensation expense for awards | $ 662,000 | |||
Recognition period for unrecognized compensation expense | 2 years 7 months 6 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 | 429,432 | |||
Number of options outstanding | 1,509,623 | |||
Awards eligible for grant | 560,945 | |||
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 | 76,154 |
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, 2020 | Dec. 31, 2019 | |
Stock-Based Compensation [Abstract] | ||
Options, Outstanding - December 31, 2019 | 1,130,472 | |
Options, Awarded | 159,301 | |
Options, Exercised | (8,000) | |
Options, Forfeited | (46,369) | |
Options, Outstanding - September 30, 2020 | 1,235,404 | 1,130,472 |
Options, Exercisable at September 30, 2020 | 961,317 | |
Options, Expected to vest September 30, 2020 | 1,235,404 | |
Weighted average exercise price per share, Outstanding - December 31, 2019 | $ 7.28 | |
Weighted average exercise price per share, Awarded | 5.22 | |
Weighted average exercise price per share, Exercised | 2.64 | |
Weighted average exercise price per share, Forfeited | 11.11 | |
Weighted average exercise price per share, Outstanding - September 30, 2020 | 6.90 | $ 7.28 |
Weighted average exercise price per share, Exercisable at September 30, 2020 | 7.58 | |
Weighted average exercise price per share, Expected to vest September 30, 2020 | $ 6.90 | |
Options, Outstanding - Weighted average remaining contractual term in years | 3 years 3 months 29 days | 3 years 5 months 23 days |
Options, Exercisable - Weighted average remaining contractual term in years | 2 years 7 months 24 days | |
Options, Expected to vest - Weighted average remaining contractual term in years | 3 years 3 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, 2020$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares, Outstanding - December 31, 2019 | shares | 321,227 |
Shares, Granted | shares | 89,131 |
Shares, Vested | shares | (56,352) |
Shares, Forfeited | shares | (79,787) |
Shares, Outstanding - September 30, 2020 | shares | 274,219 |
Weighted Average Grant Date Fair Value, Outstanding - December 31, 2019 | $ / shares | $ 3.37 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 5.39 |
Weighted Average Grant Date Fair Value, Vested | $ / shares | 2.64 |
Weighted Average Grant Date Fair Value, Forfeited | $ / shares | 4.24 |
Weighted Average Grant Date Fair Value, Outstanding - September 30, 2020 | $ / shares | $ 3.92 |
Inventories (Schedule of Invent
Inventories (Schedule of Inventories) (Details) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Inventories [Abstract] | ||
Finished goods | $ 8,958,000 | $ 6,728,000 |
Raw and processed materials | 874,000 | 1,803,000 |
Inventories | $ 9,831,656 | $ 8,531,112 |
Acquisition (Narrative) (Detail
Acquisition (Narrative) (Details) - USD ($) | May 14, 2020 | Sep. 30, 2020 | Sep. 30, 2020 |
Business Acquisition [Line Items] | |||
Goodwill | $ 1,370,918 | $ 1,370,918 | |
Ecessa Corporation [Member] | |||
Business Acquisition [Line Items] | |||
Ownership acquired | 100.00% | ||
Total purchase price of acquired entity | $ 4,642,000 | ||
Cash acquired in acquisition | 666,000 | ||
Business acquisition, initial cash consideration paid | 4,666,000 | ||
Business acquisition, working capital adjustment | $ (24,000) | ||
Business acquisition, fair value of assets acquired and liabilities assumed | 5,249,000 | 5,249,000 | |
Goodwill | 1,371,000 | 1,371,000 | |
Intangible assets | 2,230,000 | 2,230,000 | |
Business acquisition, liabilities | 608,000 | 608,000 | |
Revenue since acquisition | 798,000 | 798,000 | |
Operating (loss) since acquisition | (319,000) | (319,000) | |
Pre-acquisition deferred revenue | 1,561,000 | 1,561,000 | |
Revaluation of pre-acquisition deferred revenue to preliminary fair value | 257,000 | 257,000 | |
Intangibles amortization | $ 106,000 | $ 106,000 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) | Oct. 29, 2020USD ($)item | Sep. 30, 2020USD ($) | Dec. 31, 2019USD ($) |
Line of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit, maximum borrowing capacity | $ 5,000,000 | ||
Line of credit, amount outstanding | 0 | $ 0 | |
Line of credit, remaining borrowing capacity | $ 3,976,000 | ||
Line of credit facility, interest rate at period end | 2.00% | ||
Line of credit, expiration date | Aug. 28, 2021 | ||
Line of Credit [Member] | LIBOR [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit, basis spread on variable rate | 1.25% | ||
Minimum [Member] | Line of Credit [Member] | LIBOR [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit, basis spread on variable rate | 0.75% | ||
Subsequent Event [Member] | Letter of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit, maximum borrowing capacity | $ 2,000,000 | ||
Subsequent Event [Member] | Minimum [Member] | Line of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Number of letters of credit | item | 1 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Income Taxes [Line Items] | ||
Uncertain tax benefit positions that would reduce the effective income tax rate if recognized | $ 111,000 | |
Effective tax rate | (0.30%) | 4.30% |
Tax at U.S. statutory rate | 21.00% | |
Foreign net operating loss carry-forwards and credits | $ 0 | |
Foreign income taxes, net of foreign tax credits | 99.30% | |
Uncertain tax positions | $ 0 | |
Domestic Tax Authority [Member] | Earliest Tax Year [Member] | ||
Income Taxes [Line Items] | ||
Open tax year | 2017 | |
Domestic Tax Authority [Member] | Latest Tax Year [Member] | ||
Income Taxes [Line Items] | ||
Open tax year | 2019 | |
State and Local Jurisdiction [Member] | Earliest Tax Year [Member] | ||
Income Taxes [Line Items] | ||
Open tax year | 2016 | |
State and Local Jurisdiction [Member] | Latest Tax Year [Member] | ||
Income Taxes [Line Items] | ||
Open tax year | 2019 | |
Foreign Tax Authority [Member] | Earliest Tax Year [Member] | ||
Income Taxes [Line Items] | ||
Open tax year | 2016 | |
Foreign Tax Authority [Member] | Latest Tax Year [Member] | ||
Income Taxes [Line Items] | ||
Open tax year | 2018 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) | 9 Months Ended |
Sep. 30, 2020segment | |
Segment Information [Abstract] | |
Number of segments | 2 |
Segment Information (Schedule o
Segment Information (Schedule of Segment Information) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||||
Sales | $ 12,109,529 | $ 13,622,120 | $ 30,900,223 | $ 35,542,758 | |
Cost of sales | 6,927,701 | 7,337,203 | 18,501,200 | 20,391,087 | |
Gross profit | 5,181,828 | 6,284,917 | 12,399,023 | 15,151,671 | |
Selling, general and administrative expenses | 4,804,492 | 5,513,119 | 14,477,050 | 16,330,583 | |
Acquisition costs | 71,301 | 485,886 | |||
Operating income (loss) from continuing operations | 306,035 | 771,798 | (2,563,913) | (1,178,912) | |
Other income (expense) | 256,600 | 88,436 | 946,150 | 181,095 | |
Operating income (loss) from continuing operations before income taxes | 562,635 | 860,234 | (1,617,763) | (997,817) | |
Depreciation and amortization | 311,000 | 265,000 | 740,531 | 806,169 | |
Capital expenditures | 93,000 | 83,000 | 183,000 | 326,000 | |
Assets | 55,716,996 | 57,707,000 | 55,716,996 | 57,707,000 | $ 59,150,712 |
Intersegment Eliminations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales | (175,000) | (196,000) | (561,000) | (661,000) | |
Cost of sales | (8,000) | (19,000) | (36,000) | (144,000) | |
Gross profit | (167,000) | (177,000) | (525,000) | (517,000) | |
Selling, general and administrative expenses | (167,000) | (177,000) | (525,000) | (517,000) | |
Depreciation and amortization | |||||
Capital expenditures | |||||
Assets | (27,000) | (27,000) | (27,000) | (27,000) | |
Electronics & Software Segment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 8,755,000 | 13,035,000 | 25,579,000 | 32,262,000 | |
Cost of sales | 4,746,000 | 6,753,000 | 14,745,000 | 17,892,000 | |
Gross profit | 4,009,000 | 6,282,000 | 10,834,000 | 14,370,000 | |
Selling, general and administrative expenses | 3,281,000 | 4,419,000 | 10,816,000 | 13,116,000 | |
Operating income (loss) from continuing operations | 728,000 | 1,863,000 | 18,000 | 1,254,000 | |
Other income (expense) | (18,000) | 11,000 | (1,000) | 12,000 | |
Operating income (loss) from continuing operations before income taxes | 710,000 | 1,874,000 | 17,000 | 1,266,000 | |
Depreciation and amortization | 71,000 | 86,000 | 218,000 | 274,000 | |
Capital expenditures | 14,000 | 8,000 | 82,000 | 19,000 | |
Assets | 16,600,000 | 21,114,000 | 16,600,000 | 21,114,000 | |
Services & Support Segment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 3,530,000 | 783,000 | 5,882,000 | 3,942,000 | |
Cost of sales | 2,190,000 | 603,000 | 3,792,000 | 2,643,000 | |
Gross profit | 1,340,000 | 180,000 | 2,090,000 | 1,299,000 | |
Selling, general and administrative expenses | 909,000 | 349,000 | 1,720,000 | 1,056,000 | |
Operating income (loss) from continuing operations | 431,000 | (169,000) | 370,000 | 243,000 | |
Other income (expense) | (10,000) | ||||
Operating income (loss) from continuing operations before income taxes | 431,000 | (169,000) | 370,000 | 233,000 | |
Depreciation and amortization | 146,000 | 25,000 | 178,000 | 80,000 | |
Capital expenditures | 4,000 | 1,000 | 39,000 | ||
Assets | 9,034,000 | 1,419,000 | 9,034,000 | 1,419,000 | |
Other [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales | |||||
Cost of sales | |||||
Gross profit | |||||
Selling, general and administrative expenses | 782,000 | 922,000 | 2,466,000 | 2,676,000 | |
Acquisition costs | 71,000 | 486,000 | |||
Operating income (loss) from continuing operations | (853,000) | (922,000) | (2,952,000) | (2,676,000) | |
Other income (expense) | 275,000 | 77,000 | 947,000 | 179,000 | |
Operating income (loss) from continuing operations before income taxes | (578,000) | (845,000) | (2,005,000) | (2,497,000) | |
Depreciation and amortization | 94,000 | 154,000 | 345,000 | 452,000 | |
Capital expenditures | 79,000 | 71,000 | 100,000 | 268,000 | |
Assets | $ 30,110,000 | $ 35,201,000 | $ 30,110,000 | $ 35,201,000 |
Net Income (Loss) Per Share (Na
Net Income (Loss) Per Share (Narrative) (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
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 | 89,561 | 51,042 | 0 | 8,678 |
Shares not included in the computation of diluted earnings per share | 936,817 | 1,150,865 | ||
Employee Stock Option [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 | 0 | |||
Shares not included in the computation of diluted earnings per share | 791,415 | 727,915 | ||
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 | 110,308 | 200,260 | 110,308 | 200,260 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2020 | Sep. 30, 2020 | |
Fair Value Measurements [Abstract] | ||
Transfers between levels | $ 0 | $ 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, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 7,189 | $ 8,761 |
Short-term investments | 5,265 | 9,450 |
Long-term investments | 6,668 | 250 |
Total | 19,122 | 18,461 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 7,189 | 8,761 |
Total | 7,189 | 8,761 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 5,265 | 9,450 |
Long-term investments | 6,313 | |
Total | 11,578 | 9,450 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term investments | 355 | 250 |
Total | 355 | 250 |
Money Market Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 7,189 | 8,761 |
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 | 7,189 | 8,761 |
Commercial Paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 3,900 | 8,694 |
Commercial Paper [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 3,900 | 8,694 |
Corporate Notes/Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 1,365 | 756 |
Long-term investments | 6,313 | |
Corporate Notes/Bonds [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 1,365 | 756 |
Long-term investments | 6,313 | |
Convertible Debt [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term investments | 355 | 250 |
Convertible Debt [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term investments | $ 355 | $ 250 |
General Commitments (Narrative)
General Commitments (Narrative) (Details) - USD ($) | Aug. 02, 2018 | Jul. 28, 2020 |
Other Commitments [Line Items] | ||
Sale of building, purchase agreement, consideration amount | $ 10,000,000 | |
Purchase Agreement [Member] | ||
Other Commitments [Line Items] | ||
Earnest money in escrow transferred to Company | $ 225,000 |
Subsequent Events (Narrative) (
Subsequent Events (Narrative) (Details) - IVDesk [Member] - Subsequent Event [Member] $ in Thousands | Nov. 03, 2020USD ($)customer |
Subsequent Events [Line Items] | |
Total purchase price of acquired entity | $ 1,500 |
Business acquisition, initial cash consideration paid | 950 |
Letter of credit issued to Receiver | $ 550 |
Number of customers | customer | 85 |
Customer Retention [Member] | |
Subsequent Events [Line Items] | |
Contingent consideration at fair value | $ 550 |