Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Mar. 30, 2020 | Jun. 28, 2019 | |
Text Block [Abstract] | |||
Registrant Name | EVANS & SUTHERLAND COMPUTER CORPORATION | ||
Registrant CIK | 0000276283 | ||
SEC Form | 10-K | ||
Period End date | Dec. 31, 2019 | ||
Fiscal Year End | --12-31 | ||
Tax Identification Number (TIN) | 87-0278175 | ||
Number of common stock shares outstanding | 11,482,516 | ||
Public Float | $ 4,669,905 | ||
Filer Category | Non-accelerated Filer | ||
Current with reporting | Yes | ||
Voluntary filer | No | ||
Well-known Seasoned Issuer | No | ||
Entity Small Business | true | ||
Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Interactive Data Current | Yes | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Entity Incorporation, State or Country Code | UT | ||
Entity File Number | 0-8771 | ||
Entity Address, Address Line One | 770 Komas Drive | ||
Entity Address, City or Town | Salt Lake City | ||
Entity Address, State or Province | UT | ||
Entity Address, Postal Zip Code | 84108 | ||
City Area Code | 801 | ||
Local Phone Number | 588-1000 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 5,962 | $ 8,365 |
Restricted cash | 31 | 220 |
Accounts receivable, net | 4,957 | 3,250 |
Current portion of lease receivable | 278 | 262 |
Contract revenue in excess of billings | 2,655 | 3,484 |
Inventories, net | 2,516 | 3,072 |
Prepaid expenses and deposits | 652 | 655 |
Total current assets | 17,051 | 19,308 |
Long-term lease receivable, net of current portion | 295 | 574 |
Operating lease right-of-use asset | 2,509 | 187 |
Property and equipment, net | 4,260 | 4,395 |
Goodwill | 635 | 635 |
Other assets | 1,928 | 2,249 |
Total assets | 26,678 | 27,348 |
Current liabilities: | ||
Accounts payable | 1,243 | 1,527 |
Accrued liabilities | 1,214 | 1,059 |
Billings in excess of contract revenue | 5,428 | 5,959 |
Current portion of operating lease liability | 307 | 188 |
Current portion of retirement obligations | 682 | 621 |
Current portion of pension settlement obligation | 468 | 438 |
Current portion of long-term debt | 251 | 237 |
Total current liabilities | 9,593 | 10,029 |
Operating lease liability, net of current portion | 2,189 | 0 |
Retirement obligations, net of current portion | 3,585 | 3,601 |
Pension settlement obligation, net of current portion | 3,575 | 4,042 |
Long-term debt, net of current portion | 1,052 | 1,303 |
Total liabilities | 19,994 | 18,975 |
Commitments and contingencies | 0 | 0 |
Stockholders' equity: | ||
Preferred stock, no par value: 10,000,000 shares authorized; no shares outstanding | 0 | 0 |
Common stock, $0.20 par value: 30,000,000 shares authorized; 11,746,866 shares issued | 2,349 | 2,323 |
Additional paid-in-capital | 54,057 | 53,967 |
Common stock in treasury, at cost, 264,350 shares | (3,532) | (3,532) |
Accumulated deficit | (44,008) | (42,409) |
Accumulated other comprehensive loss | (2,182) | (1,976) |
Total stockholders' equity | 6,684 | 8,373 |
Total liabilities and stockholders' equity | $ 26,678 | $ 27,348 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2019 | Dec. 31, 2018 |
Text Block [Abstract] | ||
Preferred Stock, No Par Value | $ 0 | $ 0 |
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common Stock, Par or Stated Value Per Share | $ 0.20 | $ 0.20 |
Common Stock, Shares Authorized | 30,000,000 | 30,000,000 |
Common Stock, Shares, Issued | 11,746,866 | 11,746,866 |
Treasury Stock, Shares | 264,350 | 264,350 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Text Block [Abstract] | ||
Sales | $ 27,716 | $ 37,193 |
Cost of sales | (18,357) | (23,748) |
Gross profit | 9,359 | 13,445 |
Operating expenses: | ||
Selling, general and administrative | (7,450) | (6,669) |
Research and development | (3,164) | (2,903) |
Pension | (226) | (217) |
Total operating expenses | (10,840) | (9,789) |
Operating income (loss) | (1,481) | 3,656 |
Other income, net | (256) | (327) |
Income (loss) before income tax provision | (1,737) | 3,329 |
Income tax benefit (provision) | 138 | (21) |
Net income (loss) | $ (1,599) | $ 3,308 |
Net income (loss) per common share - basic | $ (0.14) | $ 0.29 |
Net income (loss) per common share - diluted | $ (0.14) | $ 0.28 |
Weighted average common shares outstanding - basic | 11,464 | 11,353 |
Weighted average common shares outstanding - diluted | 11,464 | 12,002 |
Comprehensive income (loss), net of tax: | ||
Net income (loss) | $ (1,599) | $ 3,308 |
Decrease (increase) in minimum pension liability | (206) | 200 |
Total comprehensive income (loss) | $ (1,805) | $ 3,508 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT) - USD ($) shares in Thousands, $ in Thousands | Common Stock | Additional Paid-In Capital | Treasury Stock | Accumulated Deficit | Accumulated Other Comprehensive Loss | Total |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Beginning Balance at Dec. 31, 2017 | $ 2,323 | $ 53,818 | $ (3,532) | $ (47,208) | $ (2,176) | $ 3,225 |
Shares, Outstanding, Beginning Balance at Dec. 31, 2017 | 11,617 | |||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Beginning Balance, Previously Reported | $ 2,323 | 53,818 | (3,532) | (47,208) | (2,176) | 3,225 |
Shares, Outstanding, Beginning Balance, Previously Reported | 11,617 | |||||
Impact of change in accounting policy topic 606 | 683 | 683 | ||||
Impact of change in accounting policy topic 842 | 808 | 808 | ||||
Stockholders' Equity Adjusted balance | $ 2,323 | 53,818 | (3,532) | (45,717) | (2,176) | 4,716 |
Shares Outstanding, Adjusted balance | 11,617 | |||||
Net income (loss) | 3,308 | 3,308 | ||||
Other comprehensive income | 200 | 200 | ||||
Stock-based compensation | 149 | 149 | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance at Dec. 31, 2018 | $ 2,323 | 53,967 | (3,532) | (42,409) | (1,976) | 8,373 |
Shares, Outstanding, Ending Balance at Dec. 31, 2018 | 11,617 | |||||
Net income (loss) | (1,599) | (1,599) | ||||
Exercise of stock options | $ 26 | (5) | 21 | |||
Exercise of stock options, shares | 130 | |||||
Other comprehensive income | (206) | (206) | ||||
Stock-based compensation | 95 | 95 | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance at Dec. 31, 2019 | $ 2,349 | $ 54,057 | $ (3,532) | $ (44,008) | $ (2,182) | $ 6,684 |
Shares, Outstanding, Ending Balance at Dec. 31, 2019 | 11,747 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities: | ||
Net income | $ (1,599) | $ 3,308 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 266 | 263 |
Deferred pension costs | (206) | 200 |
Bad debt expense | 457 | 0 |
Provision for excess and obsolete inventory | 0 | 427 |
Noncash lease expense | 420 | 529 |
Other | 95 | 167 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (2,171) | 496 |
Lease receivable | 263 | 247 |
Inventories | 556 | (449) |
Operating lease right-of-use asset | (44) | 0 |
Contract revenue in excess of billings | 829 | 33 |
Prepaid expenses and other assets | 324 | (237) |
Accounts payable | (284) | (140) |
Accrued liabilities | 155 | 147 |
Accrued pension and retirement liabilities | 45 | (428) |
Billings in excess of contract revenue | (531) | (306) |
Operating lease liability | (390) | (528) |
Net cash provided by (used in) operating activities | (1,815) | 3,729 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (131) | (136) |
Proceeds from sale of property and equipment | 7 | 35 |
Net cash used in investing activities | (124) | (101) |
Cash flows from financing activities: | ||
Proceeds for shares issued on exercise of options | 21 | 0 |
Principal payments on long-term debt | (674) | (631) |
Net cash used in financing activities | (653) | (631) |
Net increase (decrease) in cash, cash equivalents, and restricted cash | (2,592) | 2,997 |
Cash, cash equivalents, and restricted cash as of beginning of the year | 8,585 | 5,588 |
Cash, cash equivalents, and restricted cash as of end of the year | 5,993 | 8,585 |
Supplemental disclosures of non-cash investing and financing activities | ||
New operating lease | 2,698 | 0 |
Supplemental disclosures of cash flow information | ||
Cash paid (received) during the period for (from): Interest | 398 | 74 |
Cash paid (received) during the period for (from): Income taxes | $ (165) | $ 103 |
Note 1 - Nature of Operations a
Note 1 - Nature of Operations and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Text Block [Abstract] | |
Note 1 - Nature of Operations and Summary of Significant Accounting Policies | Note 1 - Nature of Operations and Summary of Significant Accounting Policies Nature of Operations Evans & Sutherland Computer Corporation, referred to in these notes as “Evans & Sutherland,” “E&S,” or the “Company,” produces high-quality advanced visual display systems used primarily in full-dome video projection applications, dome projection screens and dome architectural treatments. E&S also produces unique content for planetariums, schools, science centers and other educational institutions and entertainment venues. The Company’s products include state of the art planetarium and dome theater systems consisting of proprietary hardware and software, and other unique visual display systems primarily used to project digital video on large curved surfaces. Additionally, E&S manufactures and installs metal domes with customized optical coatings and acoustical properties that are used for planetarium and dome theaters as well as many other unique custom applications. The Company operates in one business segment, which is the visual simulation market. Basis of Presentation The consolidated financial statements include the accounts of Evans & Sutherland and its wholly owned subsidiaries. All inter-company accounts and transactions have been eliminated in consolidation. Certain prior year amounts have been reclassified to conform to the current year presentation. Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. The accounting estimates that require management’s most difficult and subjective judgments include revenue recognition based on the percentage-of-completion method, inventory reserves, allowance for doubtful accounts receivable, allowance for deferred income tax assets, impairment of long-lived assets, pension and retirement obligations and useful lives of depreciable assets. Actual results could differ from those estimates. Cash and Cash Equivalents The Company considers all highly liquid investments with original maturities of three or fewer months to be cash equivalents. The Company maintains cash balances in bank accounts that, at times, exceed federally insured limits. The Company has not experienced any losses in these accounts and believes it is not exposed to any significant risk with respect to cash. As of December 31, 2019, cash deposits as reported by the banks, including restricted cash, exceeded the federally insured limits by approximately $5,702. Restricted Cash The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the statements of cash flows. 2019 2018 Cash and cash equivalents $ 5,962 $ 8,365 Restricted cash 31 220 Total cash, cash equivalents, and restricted cash shown in the statements of cash flows $ 5,993 $ 8,585 Amounts included in restricted cash represent those required to be set aside by a contractual agreement. Restricted cash that guarantees letters of credit that mature or expire within one year is reported as a current asset. Restricted cash that guarantees letters of credit that mature or expire after more than one year is reported as a long-term asset. Trade Accounts Receivable In the normal course of business, E&S provides unsecured credit terms to its customers. Accordingly, the Company maintains an allowance for doubtful accounts for possible losses on uncollectible accounts receivable. The Company routinely analyzes accounts receivable and costs and estimated earnings in excess of billings, and considers history, customer creditworthiness, facts and circumstances specific to outstanding balances, current economic trends, and changes in payment terms when evaluating the adequacy of the allowance for doubtful accounts receivable. Changes in these factors could result in material differences to bad debt expense. Past due balances are determined based on contractual terms and are reviewed individually for collectability. Uncollectible accounts receivable are charged against the allowance for doubtful accounts when management determines the probability of collection is remote. The table below represents changes in E&S’s allowance for doubtful accounts receivable for the years ended December 31: 2019 2018 Beginning balance $ 157 $ 109 Increase in estimated losses on accounts receivable 464 48 Ending balance $ 621 $ 157 Inventories Inventories include materials at weighted average actual costs. Inventoried costs include material, direct engineering and production costs, and applicable overhead, not in excess of estimated market value. E&S periodically reviews inventories for excess supply, obsolescence, and valuations above estimated realizable amounts, and provides a reserve sufficient to reduce inventories to net realizable values. Revisions of these estimates could impact net loss. During the years ended December 31, 2019 and 2018, E&S recognized impairment losses on inventory of $0 and $427, respectively. Inventories as of December 31, were as follows: 2019 2018 Raw materials $ 5,215 $ 5,979 Work in process 182 116 Finished goods 465 323 Reserve for obsolete inventory (3,346) (3,346) Inventories, net $ 2,516 $ 3,072 Property and Equipment Property and equipment are stated at cost. Depreciation and amortization are computed using the straight-line method based on the estimated useful lives of the related assets. Expenditures that materially increase values or capacities or extend useful lives of property and equipment are capitalized. Leasehold improvements are assigned useful lives based on the shorter of their useful lives or the term of the related leases, including renewal options likely to be exercised. Routine maintenance, repairs and renewal costs are expensed as incurred. When property is retired or otherwise disposed of, the carrying values are removed from the property and equipment and related accumulated depreciation and amortization accounts. Depreciation and amortization are included in cost of sales, research and development or selling, general and administrative expenses depending on the nature of the asset. Depreciation expense was $266 and $263 for the years ended December 31, 2019 and 2018, respectively. The cost and estimated useful lives of property and equipment and the total accumulated depreciation were as follows as of December 31: Estimated Useful Lives 2019 2018 Land n/a $ 2,250 $ 2,250 Buildings and improvements 5 - 40 years 3,065 3,065 Manufacturing machinery and equipment 3 - 8 years 4,685 4,554 Office furniture and equipment 3 - 8 years 630 630 Total 10,630 10,499 Less accumulated depreciation (6,370) (6,104) Net property and equipment $ 4,260 $ 4,395 Goodwill The Company tests its recorded goodwill for impairment on an annual basis during the fourth quarter, or more often if indicators of potential impairment exist, by determining if the carrying value of each reporting unit exceeds its estimated fair value. Factors that could trigger impairment include, but are not limited to, underperformance relative to historical or projected future operating results, significant changes in the manner of use of the acquired assets or the Company’s overall business and significant negative industry or economic trends. Future impairment reviews may require write-downs in the Company’s goodwill and could have a material adverse impact on the Company’s operating results for the periods in which such write-downs occur. Impairment of Long-Lived Assets Long-lived assets are reviewed for impairment when events or changes in circumstances indicate the carrying values of the assets may not be fully recoverable. When this occurs, the Company reviews the values assigned to long-lived assets by analyzing the anticipated, undiscounted cash flows they generate. When the expected future undiscounted cash flows from these assets do not exceed their carrying values, the Company estimates the fair values of such assets. Impairment is recognized to the extent the carrying values of the assets exceed their estimated fair values. Assets held for sale are reported at the lower of their carrying values or fair values less costs to sell. Warranty Reserve E&S provides a warranty reserve for estimated future costs of servicing products under warranty agreements extending for periods from 90 days to one year. Anticipated costs for product warranties are based upon estimates derived from experience factors and are recorded at the time of sale or over the period revenues are recognized for long-term contracts. Warranty reserves are classified as accrued liabilities in the accompanying consolidated balance sheets. The table below represents changes in E&S’s warranty reserve for the years ended December 31: 2019 2018 Beginning balance $ 171 $ 139 Additions to warranty reserve 139 166 Warranty costs (139) (134) Ending balance $ 171 $ 171 Stock-Based Compensation The Company records compensation expense in the financial statements for stock-based awards based on the grant date fair value of those awards that are ultimately expected to vest. As such, the value of the award is reduced for the estimated forfeitures at the date of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The Company determines the grant date fair value of the options using the Black-Scholes option-pricing model. Stock-based compensation expense is recognized over the requisite service periods of the awards on a ratable basis, which recognizes expense for each vesting tranche of each grant starting on the grant date and finishing on the vest date for that tranche. Net Income (Loss) per Common Share Basic net income (loss) per common share represents income available to common shareholders divided by the weighted-average number of common shares outstanding during the period. Diluted net income (loss) per common share reflects additional common shares that would have been outstanding if dilutive potential common shares had been issued. Potential common shares include shares that may be issued by the Company for outstanding stock options determined using the treasury stock method. In periods resulting in a net loss, potential common shares are anti-dilutive and therefore are not included. Net income (loss) per common share has been computed based on the following: 2019 2018 Numerator Net Income (Loss) $ (1,599) $ 3,308 Denominator Weighted-average number of common shares outstanding - basic 11,464 11,353 Incremental shares assumed for stock options - 625 Weighted-average number of common shares outstanding - dilutive 11,464 11,978 Basic net income (loss) per common share $ (0.14) $ 0.29 Diluted net income (loss) per common share $ (0.14) $ 0.28 Income Taxes The Company uses the asset and liability method of accounting for income taxes. Under the asset and liability method, deferred income tax assets and liabilities are recognized for the future income tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective income tax bases and operating loss and income tax credit carry-forwards. Deferred income tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred income tax assets and liabilities of a change in income tax rates is recognized in the period that includes the enactment date. Other Comprehensive Income On a net basis for 2019 and 2018, there were deferred income tax assets resulting from items reflected in comprehensive income. However, E&S has determined that it is more likely than not that it will not realize such net deferred income tax assets and has therefore established a valuation allowance against the full amount of the net deferred income tax assets. Accordingly, the net income tax effect of the items included in other comprehensive income is zero. Therefore, the Company has included no income tax expense or benefit in relation to items reflected in other comprehensive income. The accumulated other comprehensive loss at the end of 2018 and 2019 consists of minimum pension liability attributable to the Supplemental Executive Retirement Plan (“SERP”) (see Note 7). Recent Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-02, Leases (Topic 842) ("Topic 842"). Topic 842 changes the accounting for leases. In particular, lessees will recognize lease assets and lease liabilities for operating leases. Effective January 1, 2019, the Company implemented Topic 842 as described in Note 6. |
Note 2 - Revenue
Note 2 - Revenue | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Text Block [Abstract] | |
Note 2 - Revenue | Note 2 – Revenue The Company adopted Topic 606, Revenue from Contracts with Customers Products and services The Company generates its revenue through manufacturing, integrating, distributing, and servicing its various products consisting of: Audio-Visual Systems, Domes, Show Content, and Maintenance and Service contracts. All of the Company’s products are sold worldwide. Audio-Visual Systems consist of standard and customized hardware components integrated with proprietary software. The Audio-Visual Systems are most often used as the primary equipment for planetarium theaters operated by educational institutions. Occasionally, Audio-Visual Systems are sold for other special purposes at various visitor attractions. Audio-Visual System sales include upgrades of existing systems and sub-systems. Sales of typical Audio-Visual Systems range from $200 to $2,000. Domes are hemispheric or curved metal structures fabricated from mostly aluminum metal tubing and sheets at the Company’s factory. Some Dome components have a special optical coating applied by a partner vendor. The Dome components are shipped to a customer site and are assembled and installed in or on the customer’s building by Company employees or subcontractors. Domes are often sold with an Audio-Visual System to serve as projection screens but can also be sold separately. Most often a Dome sold separately is used as a projection screen but occasionally they are used as architectural treatments. Dome projection screens sold separately can be used for existing planetarium theaters or other special visitor attractions such as theme park rides. A typical Dome is a hemispheric structure ranging from 40 to 70 feet in diameter, but Domes are also produced in various curved shapes and sizes to accommodate a special purpose. Dome sales typically range from $200 to $1,000 but occasionally exceed this range for sales of multiple complex structures priced at several million dollars. Show Content is sold under a license agreement. Show Content can also be sold with or without an Audio-Visual System. Most Show Content is sold to planetarium theaters which historically have been used as astronomical simulators; however, digital technologies have expanded capabilities to display a wider variety of content. The Company’s Show Content products include a variety of mostly educational topics including but not limited to astronomy, earth sciences, history, and biology. The Company sells Show Content it produces as well as content produced by other entities under distribution arrangements. Show Content sales typically range from $2 to $80. Maintenance and Service is sold in the form of spare parts or service agreements that sometimes include an extended warranty feature. Maintenance and Service is sold predominantly for Audio-Visual Systems. Dome products require less maintenance but can benefit from an occasional cleaning. Part sales typically range from $1 to $100. Maintenance and Service contract sales typically range from $3 to $200. The Company sells and markets its products through its employee sales team. For many foreign sales, the employee team is assisted by commissioned agents based in the locale of the customer. The Company markets its products through a network of industry associations and by messaging to the designers of planetarium theaters and visitor attractions. For Dome sales other than for planetarium projects, the Company relies on relationships developed with many satisfied customers in the architectural, visitor attraction, and theme park community. Customer decisions are based on price, product features and the experience of the supplier. Most of the Company’s revenue comes from sales of Audio-Visual Systems and Domes for planetarium theaters or other visitor attractions. Sales can be to existing theaters interested in upgrading or to a new theater. Service Support and Show Content provide a reasonably steady stream of repeat revenue from existing customers which supplements the revenue from Audio-Visual Systems and Domes. As such, the Company relies on Audio-Visual Systems and Domes sales to new projects to generate the volume of revenue necessary sustain the business. Customer sales sometimes can take years to consummate from the initial planning stage to the award of the contract. Often there is a competitive bid process with multiple suppliers involved. Customer contracts generally provide for progress payments which in many cases provides advance funding for the cost of performance. In some cases, customers hold a small portion of the contract payment for performance security through the warranty. The Company may also be required to provide performance security in the form of a surety bond or international standby letter of credit. Most customers are large public institutions, government or quasi-government entities, and large theme park entities, which carry little credit risk. Multiple Performance Obligations Some contracts include multiple performance obligations. Significant performance obligations commonly include the supply of Audio-Visual Systems, Domes, Show Content and various Service deliverables. Revenue earned on performance obligations are allocated to each deliverable based on the relative fair values. Relative fair values of performance obligations are generally determined based on actual and estimated selling price. Completion times of such contract obligations vary but typically occur within a three to twelve-month time period. Revenue Recognition Methods Following the adoption of Topic 606, the Company recognizes revenue when it satisfies a performance obligation by transferring control over a product or service to a customer. The following describes the methods used to recognize revenue under the application of Topic 606. Audio-Visual Systems. Domes. Show Content. Maintenance and Service. Contract Acquisition Costs Contract acquisition costs consist of expenditures of Company employee and other resources and, in some cases, the payment of sales commissions to non-employee agents. Expenditures of Company employee and other resources are costs that would be incurred regardless of whether the contract is obtained, are not recoverable, and therefore are expensed as they are incurred under Topic 606. Sales commissions paid to agents are incurred only if the contract is obtained and therefore are incremental costs of acquiring the contract. Rather than capitalize the cost of sales commissions, the Company has elected to expense sales commissions as incurred under the practical expedient permitted by Topic 606, whereby expensing is permitted when the amortization period of the asset that the entity otherwise would have recognized is one year or less. Disaggregation of Revenue In the following tables, revenue reported for the years ended December 31, 2019 and 2018 under Topic 606 is disaggregated by primary geographical market, major product line, timing of revenue recognition and product application. Revenue for the year ended December 31, 2019: Product Application Planetarium Theaters Other Visitor Attractions Architectural Treatments Total Primary Geographic Area: North America $ 13,376 $ 1,188 $ 125 $ 14,689 Europe 4,519 1,245 - 5,764 Asia 3,798 977 - 4,775 Other 2,458 30 - 2,488 $ 24,151 $ 3,440 $ 125 $ 27,716 Products: Audio-Visual Systems $ 14,802 $ 1,249 $ - $ 16,051 Domes 4,726 2,112 125 6,963 Show Content 2,340 76 - 2,416 Maintenance and Service 2,283 3 - 2,286 $ 24,151 $ 3,440 $ 125 $ 27,716 Timing of revenue recognition: Goods transferred at point in time $ 3,138 $ 103 $ - $ 3,241 Goods and services transferred over time 21,013 3,337 125 24,475 $ 24,151 $ 3,440 $ 125 $ 27,716 Revenue for the year ended December 31, 2018: Product Application Planetarium Theaters Other Visitor Attractions Architectural Treatments Total Primary Geographic Area: North America $ 23,443 $ 1,452 $ 1,022 $ 25,917 Europe 2,607 1,175 - 3,782 Asia 4,077 1,911 - 5,988 Other 1,506 - - 1,506 $ 31,633 $ 4,538 $ 1,022 $ 37,193 Products: Audio-Visual Systems $ 21,315 $ 1,646 $ - $ 22,961 Domes 5,686 2,892 1,022 9,600 Show Content 2,225 - - 2,225 Maintenance and Service 2,407 - - 2,407 $ 31,633 $ 4,538 $ 1,022 $ 37,193 Timing of revenue recognition: Goods transferred at point in time $ 2,935 $ - $ - $ 2,935 Goods and services transferred over time 28,698 4,538 1,022 34,258 $ 31,633 $ 4,538 $ 1,022 $ 37,193 Contract Balances The following table provides information about receivables, contract assets, and contract liabilities from contracts with customers as of December 31, 2019 and 2018: December 31, 2019 December 31, 2018 Receivables reported as accounts receivable, net $ 4,957 $ 3,250 Contract revenue in excess of billings 2,655 3,484 Billings in excess of contract revenue 5,428 5,959 Significant changes in the contract assets and the contract liabilities balances during the year are as follows: Contract Assets Contract Liabilities Revenue recognized that was included in the contract liability balance at the beginning of the period $ (4,478) Increases due to amounts billed to customers, excluding amounts recognized as revenue during the period $ 3,947 Transferred to receivables from contract assets recognized at the beginning of the period $ (2,994) Increases as a result of revenue recognized, excluding amounts transferred to receivables during the period $ 2,165 Contract revenue in excess of billings are contract assets that arise when revenue recognized on a contract exceeds the cumulative progress billings. Contracts generally provide for an enforceable right to payment for performance completed to date but do not necessarily have a present right to consideration payment for performance completed until the event that triggers the progress billing. The contract assets are transferred to receivables when the rights to payment occur and amounts are billed. Billings in excess of contract revenue are contract liabilities that arise when progress billings on a contract exceed the revenue recognized. Contract liabilities are relieved as the performance obligation is completed and revenue is recognized. Progress billings vary among contracts and can be triggered by chronological milestones, performance events or other various measurements of performance. Backlog of Remaining Customer Performance Obligations The following table includes estimated revenue expected to be recognized and recorded as sales in the future from the backlog of performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period. 2020 2021 2022 2023 2024 Sales $ 16,018 $ 3,381 $ 202 $ 22 $ 85 |
Note 3 - Changes in Accounting
Note 3 - Changes in Accounting Principal | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Text Block [Abstract] | |
Note 3 - Changes in Accounting Principal | Note 3 – Changes in Accounting Principal As described in Note 6, the Company adopted Topic 842 Leases |
Note 4 - Goodwill
Note 4 - Goodwill | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Text Block [Abstract] | |
Note 4 - Goodwill | Note 4 – Goodwill Goodwill of $635 resulted from the acquisition of the Company’s wholly owned subsidiary, Spitz, and was measured as the excess of the $2,884 purchase consideration paid over the fair value of the net assets acquired. The Company has made its annual assessment of impairment of goodwill and has concluded that goodwill is not impaired as of December 31, 2019. |
Note 5 - Lease Receivable
Note 5 - Lease Receivable | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Text Block [Abstract] | |
Note 5 - Lease Receivable | Note 5 – Lease Receivable In 2016, the Company entered into a lease agreement with a customer whereby the Company will be the Lessor and the customer will be the lessee of a Planetarium System produced, delivered and installed by the Company. The lease term is 5 years and requires the customer to make rent payments to the Company over the lease term in accordance with the fixed schedule in the agreement. The equipment will be returned to the Company at the end of the lease term at which time the Company estimates that the system will have no residual value. The customer obtained control of the leased assets upon delivery and acceptance of the system on December 7, 2016. The lease is accounted for as a sales-type lease since the lease term is for substantially all of the economic life of the system, the present value of the lease payments amounts to substantially all of the fair value of the underlying assets, and the customer will retain the control with substantially all of the risks and awards of ownership of the system. The discounted present value of the payments to be made under the lease agreement, using an annual rate of 6%, amounts to $1,754. This amount represents the fair value of the equipment of $1,678 and the maintenance services E&S is to provide over the terms of the lease valued at $76. In 2018, the Company collected $307 in lease payments of which $60 was recorded as interest income and $247 as principal reduction of the lease receivable. In 2019, the Company collected $307 in lease payments of which $44 was recorded as interest income and $263 as principal reduction of the lease receivable. The balance of lease receivable as of December 31, 2019 and 2018 is recorded as follows: 2019 2018 Lease receivable $ 278 $ 262 Lease receivable long term 295 574 Total $ 573 $ 836 |
Note 6 - Operating Lease
Note 6 - Operating Lease | 12 Months Ended |
Dec. 31, 2019 | |
Notes To Financial Statements Abstract | |
Note 6 - Operating Lease | Note 6 – Operating Lease The Company leases its office, shop and warehouse space in Salt Lake City, Utah under a non-cancellable operating lease agreement. The lease agreement had an amended term set to expire October 2019 (the “Previous Facility Lease”). On April 15, 2019, the Company signed an amendment to the Previous Facility Lease (the “Lease Amendment”). The Lease Amendment effectively terminated, as of April 30, 2019, the Previous Facility Lease, and revised the terms whereby, effective May 1, 2019, the Company continues to lease 60% of the space, while the other 40% is leased from the Landlord by a third-party tenant (“New Facility Lease”). The Company continues to pay 100% of the maintenance and utility costs for the buildings and grounds, of which approximately 40% is reimbursed by the third-party tenant in accordance with terms set by the New Facility Lease. The New Facility Lease has a seven-year term with two five-year renewal options with monthly base rent of $35 during the first year with a 3% escalation per year. As a result of the adoption of ASC 842, the Company recognized an operating lease liability with a corresponding ROU asset of the same amount based on the present value of the minimum rental payments of the Previous Facility Lease as of January 1, 2018. The discount rate used to compute the present value of the minimum rental payments of the Previous is the Company’s estimated borrowing rate of 7.5% as of the inception of the term of the Previous . The operating lease expense was computed on the straight-line basis which amounted to $573 reported as rent expense for the year ended December 31, 2018 and $183 for the first four months of 2019 through the April 30, 2019 termination of the Previous Facility Lease. For the New Facility Lease, the Company recognized an operating lease liability in the amount of $2,698 and a ROU asset in the amount of $2,742 as of May 1, 2019. The operating lease liability consists of the present value of the minimum rental payments of the New Facility Lease. The discount rate used to compute the present value of the minimum rental payments of the New Facility Lease is the Company’s estimated borrowing rate of 5.25% as of May 1, 2019. The ROU asset consists of the lease liability plus an indirect cost of $44 attributable to negotiating and arranging the lease. The operating lease expense is computed on the straight-line basis which amounts to $312 reported as rent expense for the eight-month period ended December 31, 2019. Balance sheet information related to Previous Facility Lease and New Facility Lease are as follows: December 31, December 31, 2019 2018 Operating lease right-of-use asset $ 2,509 $ 187 Operating lease liability, current portion 307 188 Operating lease liability, net of current portion 2,189 - The components of lease expense are as follows: December 31, December 31, 2019 2018 Amortization of right-of-use asset recorded as rent expense $ 413 $ 540 Interest on lease liability included in other expense 82 33 Total lease cost $ 495 $ 573 Maturities of the lease liability are as follows: Future Minimum Lease Payments 2020 $ 431 2021 444 2022 457 2023 471 2024 485 Thereafter 666 Total future minimum lease payments 2,954 Less: amount representing interest (458) Present value of future payments 2,496 Current portion 307 Long-term portion $ 2,189 Other information related to the lease: For the years ended: December 31, December 31, 2019 2018 Operating cashflows Cash paid related to operating lease obligation $ 460 $ 566 Remaining lease term (in years) Operating lease 6.3 0.3 |
Note 7 - Employee Retirement Be
Note 7 - Employee Retirement Benefit Plans | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Text Block [Abstract] | |
Note 7 - Employee Retirement Benefit Plans | Note 7 - Employee Retirement Benefit Plans Settlement of Pension Plan Liabilities On April 21, 2015, the Company, as the administrator of its qualified defined benefit pension plan (“Pension Plan”), and the Pension Benefit Guaranty Corporation (“PBGC”) entered into an Agreement for Appointment of Trustee and Termination of Plan (the “Termination Agreement”) (a) terminating the Pension Plan, (b) establishing March 9, 2013 as the Plan’s termination date and (c) appointing the PBGC as statutory trustee of the Pension Plan. In connection with the Termination Agreement, on April 21, 2015, the Company entered into the Pension Settlement Agreement with the PBGC to settle all liabilities of the Pension Plan including any termination premium resulting from the Pension Plan termination (the “Settled ERISA Liabilities”). Pursuant to the Pension Settlement Agreement, the Company agreed to (a) pay to the PBGC a total of $10,500, with $1,500 due within ten days following the effective date of the Pension Settlement Agreement and the remainder paid in twelve annual installments of $750 beginning on October 31, 2015 (the “Pension Settlement Obligation”) and (b) issue within ten days following the effective date of the Pension Settlement Agreement 88,117 shares of the Company’s treasury stock in the name of the PBGC. The Pension Settlement Agreement further provides that the PBGC will be deemed to have released the Company from all Settled ERISA Liabilities upon payment of the Pension Settlement Obligation. In the event of a default by the Company of its obligations under the Pension Settlement Agreement or the underlying agreements which secure the Pension Settlement Obligation, the PBGC may enforce payment of the Settled ERISA Liabilities, which would accrue interest at various rates until payment is made and be reduced by any payments made by the Company pursuant to the Pension Settlement Agreement. The estimated total Settled ERISA Liabilities as of the settlement date is $46,000. To secure the Company’s obligations under the Pension Settlement Agreement, on April 21, 2015, the Company also entered into a Security Agreement with the PBGC (the “Security Agreement”), and executed an Open-End Mortgage in favor of the PBGC (the “Mortgage”) on certain real property owned by the Company’s subsidiary, Spitz, Inc. (“Spitz”). The Security Agreement and Mortgage grant to the PBGC a security interest on all the Company’s presently owned and after-acquired property and proceeds thereof, free and clear of all liens and other encumbrances, except those described therein (the “Senior Liens”). The PBGC’s security interest in the Company’s property is subordinate to the Company’s two senior lenders pursuant to the Security Agreement and agreements between the PBGC and the lenders (the “Intercreditor Agreements”). The Intercreditor Agreements provide for the lenders to extend credit to the Company, secured by the Senior Liens, up to specified limits. The Intercreditor Agreement between the lender of the mortgage notes and line of credit (see Note 8) and the PBGC provides for total aggregate loans of up to $6,500 secured by Senior Liens on Spitz assets. The second Intercreditor Agreement between another lender and the PBGC provides for up to $3,000 of letter of credit indebtedness secured by Senior Liens on cash deposits. The balance of the Pension Settlement Obligation is recorded on the balance sheet as of December 31, 2019 and 2018 as follows: 2019 2018 Current portion of pension settlement obligation $ 468 $ 438 Pension settlement obligation, net of current portion 3,575 4,042 Total Pension Settlement Obligation $ 4,043 $ 4,480 Supplemental Executive Retirement Plan (SERP) The SERP provides eligible former executives, employed by the Company prior to 2002, defined pension benefits based on average salary, years of service and age at retirement. The SERP was amended in 2002 to discontinue further SERP gains from future salary increases and close the SERP to new participants. Obligations and Funded Status for SERP E&S uses a December 31 measurement date for the SERP. Information concerning the obligations, plan assets and funded status of employee retirement defined benefit plans are provided below: Changes in benefit obligation 2019 2018 Projected benefit obligation - beginning of year $ 4,222 $ 4,650 Interest cost 148 136 Actuarial loss (gain) 284 (119) Benefits paid (387) (445) Projected benefit obligation - end of year $ 4,267 $ 4,222 Changes in plan assets 2019 2018 Contributions $ 386 $ 445 Benefits paid (386) (445) Fair value of plan assets - end of year $ - $ - Net amount recognized 2019 2018 Unfunded status $ (4,267) $ (4,222) Unrecognized net actuarial loss 2,182 1,976 Net amount recognized $ (2,085) Amounts recognized in the consolidated balance sheets consisted of: 2019 2018 Accrued liability $ (4,267) $ (4,222) Accumulated other comprehensive loss 2,182 1,976 Net amount recognized $ (2,085) $ (2,246) Components of net periodic benefit cost: 2019 2018 Interest cost $ 148 $ 136 Amortization of actuarial loss 78 81 Amortization of prior year service cost - - Net periodic benefit expense $ 226 $ 217 Additional information Pension expense was $226 and $217 for the years ended December 31, 2019 and 2018, respectively, which consisted of net periodic benefit expense for the SERP. The SERP minimum liability recorded in other comprehensive loss increased $206 in 2019 compared to a decrease of $200 in 2018. The increase in 2019 was primarily due to a decrease in the discount rate. The decrease in 2018 was primarily due to an increase in the discount rate and change to the mortality table offset by an increase due to the change to payout assumption. Assumptions The weighted average assumptions used to remeasure benefit obligations as of December 31, 2019 and 2018 included a discount rate of 2.6% and 3.8%, respectively, for the SERP. The weighted average assumptions used to determine net periodic cost for the years ended December 31, 2019 and 2018 included a discount rate of 2.6% and 3.8%, respectively, in each year for the SERP. In prior years, for persons who have not yet commenced benefits, it was assumed that installment payments would commence on the valuation date and continue for 10 years. That assumption was changed such that if an individual has not yet commenced benefit payments, the first payment would be a one-time lump sum equal to installments in arrears plus future installments commencing on the valuation date and continuing through the original end date assuming payments had commenced on the expected start date. Cash Flows Employer contributions The Company is not currently required to fund the SERP. All benefit payments are made by E&S directly to those who receive benefits from the SERP. As such, these payments are treated as both contributions and benefits paid for reporting purposes. The Company expects to contribute and pay benefits of approximately $682 related to the SERP in 2020. Estimated future benefit payments As of December 31, 2019, the following benefits are expected to be paid based on actuarial estimates and prior experience: Years Ending December 31, SERP 2020 $ 682 2021 $ 419 2022 $ 412 2023 $ 396 2024 $ 387 2025-2029 $ 1,336 401(k) Deferred Savings Plan The Company has a deferred savings plan that qualifies under Section 401(k) of the Internal Revenue Code. The 401(k) plan covers all employees of the Company who have at least one year of service and who are age 18 or older. Matching contributions of 50% are made on the first 6% of employee contributions after the employee has achieved one year of service. Extra matching contributions can be made based on profitability and other financial and operational considerations. The Company makes a 3% contribution in addition to the matching contribution. Contributions to the 401(k) plan for 2019 and 2018 were $482 and $444, respectively. |
Note 8 - Debt
Note 8 - Debt | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Text Block [Abstract] | |
Note 8 -Debt | Note 8 –Debt Long-term debt consisted of the following as of December 31, 2019 and 2018: 2019 2018 First mortgage note payable due in monthly installments of $23 (interest at 5.75%) through January 1, 2024; payment and rate subject to adjustment every 3 years, next adjustment January 14, 2021 $ 1,008 $ 1,221 Second mortgage note payable due in monthly installments of $4 (interest at 5.99%) through October 1, 2028; payment and rate subject to adjustment every 5 years, next adjustment October 1, 2023 295 319 Total debt 1,303 1,540 Current portion of long-term debt (251) (237) Long-term debt, net of current portion $ 1,052 $ 1,303 Principal maturities on total debt are as follows: Years Ending December 31, 2020 $ 251 2021 266 2022 282 2023 299 2024 56 Thereafter 149 Total debt $ 1,303 Mortgage Notes The first mortgage note payable represents the balance on a $3,200 note (“First Mortgage Note”) issued on January 14, 2004 by Spitz. The First Mortgage Note requires repayment in monthly installments of principal and interest over 20 years. On January 14, 2006 and each third anniversary thereof, the interest rate on the First Mortgage Note is adjusted to the greater of 5.75% or 3% over the Three-Year Constant Maturity Treasury Rate published by the United States Federal Reserve (“3YCMT”). The monthly installment is recalculated on the first month following a change in the interest rate. The recalculated monthly installment is equal to the monthly installment sufficient to repay the principal balance, as of the date of the change in the interest rate, over the remaining portion of the original 20-year term. On January 14, 2018, the 3YCMT was 2.09% and the interest rate on the First Mortgage Note remained at 5.75% per annum. As a result, the monthly installment amount remained at $23. The second mortgage note payable represents the balance on a $500 note (“Second Mortgage Note”) issued on September 11, 2008 by Spitz. The Second Mortgage Note requires repayment in monthly installments of principal and interest over 20 years. On October 1, 2013 and each fifth anniversary thereof, the interest rate on the Second Mortgage Note is adjusted to the greater of 5.75% or 3% over the Five-Year Constant Maturity Treasury Rate published by the United States Federal Reserve (“5YCMT”). The monthly installment is recalculated on the first month following a change in the interest rate. The recalculated monthly installment is equal to the monthly installment sufficient to repay the principal balance, as of the date of the change in the interest rate, over the remaining portion of the original 20-year term. On October 1, 2018, the fifth anniversary of the Second Mortgage Note, the 5YCMT was 2.99%. As a result, interest was adjusted to 5.99%. The monthly installment remains at $4. The Mortgage Notes are secured by the real property occupied by Spitz pursuant to a Mortgage and Security Agreement. The real property had a carrying value of $3,863 as of December 31, 2019. The Mortgage Notes are guaranteed by E&S. Line of Credit The Company is a party to a line-of-credit agreement with a commercial bank which permits borrowings of up to $1,100 to fund Spitz working capital requirements. Under the line of credit agreement, interest is charged on amounts borrowed at the lender’s prime rate less 0.25%. Any borrowings under the Credit Agreement are secured by Spitz real and personal property and all of the outstanding shares of Spitz common stock. The line-of-credit agreement and mortgage notes (with the same commercial bank) contain cross default provisions whereby a default on either agreement will result in a default on both agreements. There were no borrowings outstanding under the line-of-credit agreement as of December 31, 2019. |
Note 9 - Income Taxes
Note 9 - Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Text Block [Abstract] | |
Note 9 - Income Taxes | Note 9 - Income Taxes Income tax for 2019 and 2018 consisted of a benefit of $(138) and an expense of $21, respectively, of federal and state income taxes. The actual expense (benefit) differs from the expected tax expense (benefit) as computed by applying the U.S. federal statutory income tax rate of 21 percent for 2019 and 2018, respectively, as follows: 2019 2018 Income tax provision (benefit) at U.S. federal statutory rate $ (365) $ 791 State tax provision (benefit), net of federal income tax (155) 116 Change in valuation allowance attributable to operations (298) (3,114) Change in effective tax rate - 111 Stock compensation 9 30 True-up adjustments and expiration of tax carryforwards and credits 685 2,105 Other, net (14) (18) Income tax expense (benefit) $ (138) $ 21 The tax effects of temporary differences that give rise to significant portions of the deferred income tax assets and liabilities as of December 31, 2019 and 2018 are as follows: 2019 2018 Property and equipment, principally due to differences in depreciation $ 85 $ 68 Inventory reserves and other inventory-related temporary basis differences 437 437 Warranty, vacation, deferred rent and other liabilities (446) 251 Retirement liabilities 504 543 Net operating loss carryforwards 35,205 35,532 Credit carryforwards - 28 Other 956 181 Total deferred income tax 36,741 37,040 Less valuation allowance (36,741) (37,040) Net deferred income tax $ - $ - Worldwide income before income taxes consisted of the following: 2019 2018 United States $ (1,738) $ 3,768 International - - Total $ (1,738) $ 3,768 Income tax expense (benefit) consisted of the following: 2019 2018 Current U.S. federal $ (28) $ (1) State (110) 22 Total current expense (benefit) $ (138) $ 21 Deferred U.S. federal $ (297) $ 1,477 State 595 1,637 Total 298 3,114 Valuation allowance increase (298) (3,114) Total deferred expense (benefit) - - Total income tax expense (benefit) $ (138) $ 21 The Company recognizes the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement with the relevant tax authority. E&S has total federal net operating loss carryforwards of approximately $162,300 which begin to expire in 2020. The Company has federal minimum tax credit carryforwards of approximately $0 which do not expire. The Company has $1,600 of federal research credits that begin to expire in 2020 and $800 of state research credits that begin to expire in 2020. The Company has not recorded a benefit for these research credits in the financial statements because it does not meet the more-likely-than-not position recognition threshold. E&S also has state net operating loss carryforwards of approximately $23,900 that expire at various dates depending on the rules of the states to which the loss or credit is allocated. The Company evaluates its deferred tax assets for realizability based on the available positive and negative evidence. Due to cumulative losses and the significance of the carryforwards, the Company determined that it is more likely than not that the deferred tax assets will not be realized. Accordingly, a valuation allowance has been established to offset the net deferred tax assets. During the years ended December 31, 2019 and 2018, the valuation allowance on deferred tax assets decreased by $298 and $3,114, respectively. The Company is subject to audit by the IRS and various states for tax years dating back to 2016. No federal or state tax returns are currently under audit. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in income tax expense. |
Note 10 - Commitments and Conti
Note 10 - Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Text Block [Abstract] | |
Note 10 - Commitments and Contingencies | Note 10 - Commitments and Contingencies Letters of Credit Under the terms of financing arrangements for letters of credit, E&S is required to maintain a balance in a specific cash account equal to or greater than the outstanding value of all letters of credit or bank guarantees issued, plus other amounts necessary to adequately secure obligations with the financial institution. As of December 31, 2018, there were outstanding letters of credit and bank guarantees of $220 which are scheduled to expire in 2019. As of December 31, 2019, there was an outstanding letter of credit and bank guarantee of $31 which is scheduled to expire in January 2021. |
Note 11 - Stock Option Plan
Note 11 - Stock Option Plan | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Text Block [Abstract] | |
Note 11 - Stock Option Plan | Note 11 - Stock Option Plan In 2014, stockholders approved the adoption of the Evans & Sutherland Computer Corporation 2014 Stock Incentive Plan (“2014 Plan”) which replaced the expired 2004 Stock Incentive Plan of Evans & Sutherland Computer Corporation (“2004 Plan”). The 2014 Plan is a stock incentive plan that provides for the grant of options and restricted stock awards to employees and for the grant of options to non-employee directors essentially the same as the 2004 Plan. Under the 2014 Plan, non-employee directors may continue to receive an annual option grant for no more than 10,000 shares. New non-employee directors may also continue to receive an option grant for no more than 10,000 shares upon their appointment or election. With the adoption of the 2014 Plan, no additional options can be issued under the 2004 Plan. The 2014 Plan continues a minimum exercise price for options of 110% of fair market value on the date of grant. Restricted stock awards may be qualified as a performance-based award that conditions a participant’s award upon achievement by the Company or its subsidiaries of performance goals established by the Board of Directors’ Compensation Committee. The number of shares, terms, and exercise periods of option grants are determined by the Board of Directors on an option-by-option basis. Options generally vest ratably over three years and expire ten years from the date of grant. As of December 31, 2019, options to purchase 876,981 shares of common stock were authorized and reserved for future grant. A summary of activity follows (shares in thousands): 2019 2018 Weighted- Weighted- Average Average Number Exercise Number Exercise of Shares Price of Shares Price Outstanding as of beginning of the year 1,597 $ 0.65 1,610 $ 0.66 Granted 166 0.80 150 1.12 Exercised (130) 0.17 - - Forfeited or expired (41) 0.66 (163) 1.21 Outstanding as of end of the year 1,592 0.71 1,597 0.65 Exercisable as of end of the year 1,523 0.61 1,131 0.48 The weighted average fair value of options granted during 2019 and 2018 was $0.40 and $0.77, respectively. As of December 31, 2019, options exercisable and options outstanding had a weighted average remaining contractual term of 4.7 and 5.8 years with aggregate intrinsic value of $276 and $276, respectively. As of December 31, 2018, options exercisable and options outstanding had a weighted average remaining contractual term of 4.7 and 5.7 years with aggregate intrinsic value of $385 and $385, respectively. The fair value of each option grant is estimated on the date of the grant using the Black-Scholes option-pricing model with the following weighted-average assumptions used for the grants made in 2019 and 2018: 2019 2018 Expected life (in years) 3.5 3.5 Risk free interest rate 2.6% 2.0% Expected volatility 81.2% 125.0% Dividend yield - - Expected option lives and volatilities are based on historical data of the Company. The risk-free interest rate is calculated as the average US Treasury bill rate that corresponds with the option life. Historically, the Company has not declared dividends and there are no plans to do so. As of December 31, 2019, there was approximately $76 of total unrecognized share-based compensation cost related to grants collectively under the 2004 Plan and 2014 Plan that will be recognized over a weighted-average period of 1.9 years. As of December 31, 2018, there was approximately $90 of total unrecognized share-based compensation cost related to grants collectively under the 2004 Plan and 2014 Plan that will be recognized over a weighted-average period of 1.9 years. Share-based compensation expense, from awards collectively under the 2004 Plan and 2014 Plan for the years ended December 31, 2019 and 2018 amounted to $95 and $149, respectively, and was included in general and administrative expense on the statements of comprehensive income. |
Note 12 - Preferred Stock
Note 12 - Preferred Stock | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Text Block [Abstract] | |
Note 12 - Preferred Stock | Note 12 - Preferred Stock Class A Preferred Stock The Company has 5,000,000 authorized shares of Class A Preferred stock. As of December 31, 2019 and 2018, there were no Class A Preferred shares outstanding. Class B Preferred Stock The Company has 5,000,000 authorized shares of Class B Preferred stock. As of December 31, 2019 and 2018, there were no Class B Preferred shares outstanding. |
Note 13 - Significant Customers
Note 13 - Significant Customers | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Text Block [Abstract] | |
Note 13 - Significant Customers | Note 13 - Significant Customers As of December 31, 2019, Customer A represented 32% and Customer B represented 10% of accounts receivable, and Customer C represented 16%, Customer D 17%, Customer E 13%, and Customer F 11% of contract revenue in excess of billings. As of December 31, 2018, Customer G represented 24% of accounts receivable, and Customer H represented 10% of contract revenue in excess of billings. For the years ended December 31, 2019 and 2018, no customers represented 10% or more of total sales. |
Note 14 - Subsequent Events
Note 14 - Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Note 14 - Subsequent Events | Note 14 – Subsequent Events Merger Agreement and Tender Offer On February 9, 2020, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Elevate Entertainment Inc., a Delaware corporation (“Elevate”), and Elevate Acquisition Corporation, a Delaware corporation and wholly owned subsidiary of Elevate (“Purchaser”). On February 27, 2020, Purchaser commenced a cash tender offer (the “Offer”) to purchase all of the outstanding shares (the “Shares”) of common stock of the Company at a price of $1.19 per Share, net to the seller in cash, without interest, and subject to applicable withholding taxes. The Offer expired at midnight (Eastern Time) at the end of the day March 25, 2020. As of the expiration of the tender offer period, approximately 10,576,487 Shares (excluding approximately 50,741 Shares subject to guaranteed delivery procedures) were properly tendered and not withdrawn in the Offer, representing approximately 92.1% of the aggregate number of the Company’s issued and outstanding Shares. On March 26, 2020, Purchaser announced that it had accepted for purchase the tendered Shares and the termination of the Offer. Pursuant to the terms of the Merger Agreement and in accordance with applicable Utah law, Elevate will complete a second-step merger that will result in the Company becoming a subsidiary of Elevate. Elevate and its subsidiary intend to complete the merger and acquisition of the Company as promptly as practicable without a meeting of Company shareholders. In the merger, each of the remaining Shares will be converted into the right to receive $1.19 per Share, net to the shareholder in cash, without interest thereon and subject to any applicable tax withholding, which is the same amount per Share that was paid in the Offer. The Impact of COVID-19 As of the time of this filing the Company’s operating activities have been curtailed by the impact of COVID-19. Government directives have suspended manufacturing and limited workplace activities beginning March 23, 2020. The Company has empowered its employees to work remotely wherever possible to minimize the disruption to Company operations. The Company has received no communications from customers that indicate cancellations. We have received some requests to postpone deliveries and we expect more which will extend the timing of revenue recognition and, in some cases, customer payments. Public health directives from governments around the world are advising or prohibiting large gatherings to inhibit the spread of COVID-19. This has suspended the use of our products for much of our installed customer base. Continued restrictions and the potential behavioral changes resulting from the impact of COVID-19 may continue to influence the demand for our products which typically attract a large audience. Also, the ongoing impact of COVID-19 on the world’s economy could ultimately have material adverse consequences to the Company; however, as of now, the Company is unable to determine the likelihood or degree of such adverse consequences. |
Note 1 - Nature of Operations_2
Note 1 - Nature of Operations and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Policy Text Block [Abstract] | |
Nature of Operations | Nature of Operations Evans & Sutherland Computer Corporation, referred to in these notes as “Evans & Sutherland,” “E&S,” or the “Company,” produces high-quality advanced visual display systems used primarily in full-dome video projection applications, dome projection screens and dome architectural treatments. E&S also produces unique content for planetariums, schools, science centers and other educational institutions and entertainment venues. The Company’s products include state of the art planetarium and dome theater systems consisting of proprietary hardware and software, and other unique visual display systems primarily used to project digital video on large curved surfaces. Additionally, E&S manufactures and installs metal domes with customized optical coatings and acoustical properties that are used for planetarium and dome theaters as well as many other unique custom applications. The Company operates in one business segment, which is the visual simulation market. |
Basis of Presentation | Basis of Presentation The consolidated financial statements include the accounts of Evans & Sutherland and its wholly owned subsidiaries. All inter-company accounts and transactions have been eliminated in consolidation. Certain prior year amounts have been reclassified to conform to the current year presentation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. The accounting estimates that require management’s most difficult and subjective judgments include revenue recognition based on the percentage-of-completion method, inventory reserves, allowance for doubtful accounts receivable, allowance for deferred income tax assets, impairment of long-lived assets, pension and retirement obligations and useful lives of depreciable assets. Actual results could differ from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments with original maturities of three or fewer months to be cash equivalents. The Company maintains cash balances in bank accounts that, at times, exceed federally insured limits. The Company has not experienced any losses in these accounts and believes it is not exposed to any significant risk with respect to cash. As of December 31, 2019, cash deposits as reported by the banks, including restricted cash, exceeded the federally insured limits by approximately $5,702. |
Restricted Cash | Restricted Cash The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the statements of cash flows. 2019 2018 Cash and cash equivalents $ 5,962 $ 8,365 Restricted cash 31 220 Total cash, cash equivalents, and restricted cash shown in the statements of cash flows $ 5,993 $ 8,585 Amounts included in restricted cash represent those required to be set aside by a contractual agreement. Restricted cash that guarantees letters of credit that mature or expire within one year is reported as a current asset. Restricted cash that guarantees letters of credit that mature or expire after more than one year is reported as a long-term asset. |
Trade Accounts Receivable | Trade Accounts Receivable In the normal course of business, E&S provides unsecured credit terms to its customers. Accordingly, the Company maintains an allowance for doubtful accounts for possible losses on uncollectible accounts receivable. The Company routinely analyzes accounts receivable and costs and estimated earnings in excess of billings, and considers history, customer creditworthiness, facts and circumstances specific to outstanding balances, current economic trends, and changes in payment terms when evaluating the adequacy of the allowance for doubtful accounts receivable. Changes in these factors could result in material differences to bad debt expense. Past due balances are determined based on contractual terms and are reviewed individually for collectability. Uncollectible accounts receivable are charged against the allowance for doubtful accounts when management determines the probability of collection is remote. The table below represents changes in E&S’s allowance for doubtful accounts receivable for the years ended December 31: 2019 2018 Beginning balance $ 157 $ 109 Increase in estimated losses on accounts receivable 464 48 Ending balance $ 621 $ 157 |
Inventories | Inventories Inventories include materials at weighted average actual costs. Inventoried costs include material, direct engineering and production costs, and applicable overhead, not in excess of estimated market value. E&S periodically reviews inventories for excess supply, obsolescence, and valuations above estimated realizable amounts, and provides a reserve sufficient to reduce inventories to net realizable values. Revisions of these estimates could impact net loss. During the years ended December 31, 2019 and 2018, E&S recognized impairment losses on inventory of $0 and $427, respectively. Inventories as of December 31, were as follows: 2019 2018 Raw materials $ 5,215 $ 5,979 Work in process 182 116 Finished goods 465 323 Reserve for obsolete inventory (3,346) (3,346) Inventories, net $ 2,516 $ 3,072 |
Property and Equipment | Property and Equipment Property and equipment are stated at cost. Depreciation and amortization are computed using the straight-line method based on the estimated useful lives of the related assets. Expenditures that materially increase values or capacities or extend useful lives of property and equipment are capitalized. Leasehold improvements are assigned useful lives based on the shorter of their useful lives or the term of the related leases, including renewal options likely to be exercised. Routine maintenance, repairs and renewal costs are expensed as incurred. When property is retired or otherwise disposed of, the carrying values are removed from the property and equipment and related accumulated depreciation and amortization accounts. Depreciation and amortization are included in cost of sales, research and development or selling, general and administrative expenses depending on the nature of the asset. Depreciation expense was $266 and $263 for the years ended December 31, 2019 and 2018, respectively. The cost and estimated useful lives of property and equipment and the total accumulated depreciation were as follows as of December 31: Estimated Useful Lives 2019 2018 Land n/a $ 2,250 $ 2,250 Buildings and improvements 5 - 40 years 3,065 3,065 Manufacturing machinery and equipment 3 - 8 years 4,685 4,554 Office furniture and equipment 3 - 8 years 630 630 Total 10,630 10,499 Less accumulated depreciation (6,370) (6,104) Net property and equipment $ 4,260 $ 4,395 |
Goodwill | Goodwill The Company tests its recorded goodwill for impairment on an annual basis during the fourth quarter, or more often if indicators of potential impairment exist, by determining if the carrying value of each reporting unit exceeds its estimated fair value. Factors that could trigger impairment include, but are not limited to, underperformance relative to historical or projected future operating results, significant changes in the manner of use of the acquired assets or the Company’s overall business and significant negative industry or economic trends. Future impairment reviews may require write-downs in the Company’s goodwill and could have a material adverse impact on the Company’s operating results for the periods in which such write-downs occur. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets Long-lived assets are reviewed for impairment when events or changes in circumstances indicate the carrying values of the assets may not be fully recoverable. When this occurs, the Company reviews the values assigned to long-lived assets by analyzing the anticipated, undiscounted cash flows they generate. When the expected future undiscounted cash flows from these assets do not exceed their carrying values, the Company estimates the fair values of such assets. Impairment is recognized to the extent the carrying values of the assets exceed their estimated fair values. Assets held for sale are reported at the lower of their carrying values or fair values less costs to sell. |
Warranty Reserve | Warranty Reserve E&S provides a warranty reserve for estimated future costs of servicing products under warranty agreements extending for periods from 90 days to one year. Anticipated costs for product warranties are based upon estimates derived from experience factors and are recorded at the time of sale or over the period revenues are recognized for long-term contracts. Warranty reserves are classified as accrued liabilities in the accompanying consolidated balance sheets. The table below represents changes in E&S’s warranty reserve for the years ended December 31: 2019 2018 Beginning balance $ 171 $ 139 Additions to warranty reserve 139 166 Warranty costs (139) (134) Ending balance $ 171 $ 171 |
Stock-Based Compensation | Stock-Based Compensation The Company records compensation expense in the financial statements for stock-based awards based on the grant date fair value of those awards that are ultimately expected to vest. As such, the value of the award is reduced for the estimated forfeitures at the date of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The Company determines the grant date fair value of the options using the Black-Scholes option-pricing model. Stock-based compensation expense is recognized over the requisite service periods of the awards on a ratable basis, which recognizes expense for each vesting tranche of each grant starting on the grant date and finishing on the vest date for that tranche. |
Net Income Per Common Share | Net Income (Loss) per Common Share Basic net income (loss) per common share represents income available to common shareholders divided by the weighted-average number of common shares outstanding during the period. Diluted net income (loss) per common share reflects additional common shares that would have been outstanding if dilutive potential common shares had been issued. Potential common shares include shares that may be issued by the Company for outstanding stock options determined using the treasury stock method. In periods resulting in a net loss, potential common shares are anti-dilutive and therefore are not included. Net income (loss) per common share has been computed based on the following: 2019 2018 Numerator Net Income (Loss) $ (1,599) $ 3,308 Denominator Weighted-average number of common shares outstanding - basic 11,464 11,353 Incremental shares assumed for stock options - 625 Weighted-average number of common shares outstanding - dilutive 11,464 11,978 Basic net income (loss) per common share $ (0.14) $ 0.29 Diluted net income (loss) per common share $ (0.14) $ 0.28 |
Income Taxes | Income Taxes The Company uses the asset and liability method of accounting for income taxes. Under the asset and liability method, deferred income tax assets and liabilities are recognized for the future income tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective income tax bases and operating loss and income tax credit carry-forwards. Deferred income tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred income tax assets and liabilities of a change in income tax rates is recognized in the period that includes the enactment date. |
Other Comprehensive Income | Other Comprehensive Income On a net basis for 2019 and 2018, there were deferred income tax assets resulting from items reflected in comprehensive income. However, E&S has determined that it is more likely than not that it will not realize such net deferred income tax assets and has therefore established a valuation allowance against the full amount of the net deferred income tax assets. Accordingly, the net income tax effect of the items included in other comprehensive income is zero. Therefore, the Company has included no income tax expense or benefit in relation to items reflected in other comprehensive income. The accumulated other comprehensive loss at the end of 2018 and 2019 consists of minimum pension liability attributable to the Supplemental Executive Retirement Plan (“SERP”) (see Note 7). |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-02, Leases (Topic 842) ("Topic 842"). Topic 842 changes the accounting for leases. In particular, lessees will recognize lease assets and lease liabilities for operating leases. Effective January 1, 2019, the Company implemented Topic 842 as described in Note 6. |
Note 1- Nature of Operations an
Note 1- Nature of Operations and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Table Text Block Supplement [Abstract] | |
Schedule of Restricted Cash | The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the statements of cash flows. 2019 2018 Cash and cash equivalents $ 5,962 $ 8,365 Restricted cash 31 220 Total cash, cash equivalents, and restricted cash shown in the statements of cash flows $ 5,993 $ 8,585 |
Schedule of Doubtful Accounts | The table below represents changes in E&S’s allowance for doubtful accounts receivable for the years ended December 31: 2019 2018 Beginning balance $ 157 $ 109 Increase in estimated losses on accounts receivable 464 48 Ending balance $ 621 $ 157 |
Schedule of Inventory | Inventories as of December 31, were as follows: 2019 2018 Raw materials $ 5,215 $ 5,979 Work in process 182 116 Finished goods 465 323 Reserve for obsolete inventory (3,346) (3,346) Inventories, net $ 2,516 $ 3,072 |
Schedule of Depreciation | Depreciation expense was $266 and $263 for the years ended December 31, 2019 and 2018, respectively. The cost and estimated useful lives of property and equipment and the total accumulated depreciation were as follows as of December 31: Estimated Useful Lives 2019 2018 Land n/a $ 2,250 $ 2,250 Buildings and improvements 5 - 40 years 3,065 3,065 Manufacturing machinery and equipment 3 - 8 years 4,685 4,554 Office furniture and equipment 3 - 8 years 630 630 Total 10,630 10,499 Less accumulated depreciation (6,370) (6,104) Net property and equipment $ 4,260 $ 4,395 |
Schedule of Product Warranty Reserve | The table below represents changes in E&S’s warranty reserve for the years ended December 31: 2019 2018 Beginning balance $ 171 $ 139 Additions to warranty reserve 139 166 Warranty costs (139) (134) Ending balance $ 171 $ 171 |
Schedule of Net Income Per Common Share | In periods resulting in a net loss, potential common shares are anti-dilutive and therefore are not included. Net income (loss) per common share has been computed based on the following: 2019 2018 Numerator Net Income (Loss) $ (1,599) $ 3,308 Denominator Weighted-average number of common shares outstanding - basic 11,464 11,353 Incremental shares assumed for stock options - 625 Weighted-average number of common shares outstanding - dilutive 11,464 11,978 Basic net income (loss) per common share $ (0.14) $ 0.29 Diluted net income (loss) per common share $ (0.14) $ 0.28 |
Note 2 - Revenue (Tables)
Note 2 - Revenue (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Table Text Block Supplement [Abstract] | |
Schedule of geographical revenues | Revenue for the year ended December 31, 2019: Product Application Planetarium Theaters Other Visitor Attractions Architectural Treatments Total Primary Geographic Area: North America $ 13,376 $ 1,188 $ 125 $ 14,689 Europe 4,519 1,245 - 5,764 Asia 3,798 977 - 4,775 Other 2,458 30 - 2,488 $ 24,151 $ 3,440 $ 125 $ 27,716 Products: Audio-Visual Systems $ 14,802 $ 1,249 $ - $ 16,051 Domes 4,726 2,112 125 6,963 Show Content 2,340 76 - 2,416 Maintenance and Service 2,283 3 - 2,286 $ 24,151 $ 3,440 $ 125 $ 27,716 Timing of revenue recognition: Goods transferred at point in time $ 3,138 $ 103 $ - $ 3,241 Goods and services transferred over time 21,013 3,337 125 24,475 $ 24,151 $ 3,440 $ 125 $ 27,716 Revenue for the year ended December 31, 2018: Product Application Planetarium Theaters Other Visitor Attractions Architectural Treatments Total Primary Geographic Area: North America $ 23,443 $ 1,452 $ 1,022 $ 25,917 Europe 2,607 1,175 - 3,782 Asia 4,077 1,911 - 5,988 Other 1,506 - - 1,506 $ 31,633 $ 4,538 $ 1,022 $ 37,193 Products: Audio-Visual Systems $ 21,315 $ 1,646 $ - $ 22,961 Domes 5,686 2,892 1,022 9,600 Show Content 2,225 - - 2,225 Maintenance and Service 2,407 - - 2,407 $ 31,633 $ 4,538 $ 1,022 $ 37,193 Timing of revenue recognition: Goods transferred at point in time $ 2,935 $ - $ - $ 2,935 Goods and services transferred over time 28,698 4,538 1,022 34,258 $ 31,633 $ 4,538 $ 1,022 $ 37,193 |
Schedule of contract balances | The following table provides information about receivables, contract assets, and contract liabilities from contracts with customers as of December 31, 2019 and 2018: December 31, 2019 December 31, 2018 Receivables reported as accounts receivable, net $ 4,957 $ 3,250 Contract revenue in excess of billings 2,655 3,484 Billings in excess of contract revenue 5,428 5,959 |
Schedule of changes in the contract assets and the contract liabilities | Significant changes in the contract assets and the contract liabilities balances during the year are as follows: Contract Assets Contract Liabilities Revenue recognized that was included in the contract liability balance at the beginning of the period $ (4,478) Increases due to amounts billed to customers, excluding amounts recognized as revenue during the period $ 3,947 Transferred to receivables from contract assets recognized at the beginning of the period $ (2,994) Increases as a result of revenue recognized, excluding amounts transferred to receivables during the period $ 2,165 |
Schedule of backlog of performance obligations | Backlog of Remaining Customer Performance Obligations The following table includes estimated revenue expected to be recognized and recorded as sales in the future from the backlog of performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period. 2020 2021 2022 2023 2024 Sales $ 16,018 $ 3,381 $ 202 $ 22 $ 85 |
Note 5 - Lease Receivable (Tabl
Note 5 - Lease Receivable (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Table Text Block Supplement [Abstract] | |
Schedule of Lease Receivable | The balance of lease receivable as of December 31, 2019 and 2018 is recorded as follows: 2019 2018 Lease receivable $ 278 $ 262 Lease receivable long term 295 574 Total $ 573 $ 836 |
Note 6 - Operating Lease (Table
Note 6 - Operating Lease (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Notes To Financial Statements Abstract | |
Schedule of lease expense | Balance sheet information related to Previous Facility Lease and New Facility Lease are as follows: December 31, December 31, 2019 2018 Operating lease right-of-use asset $ 2,509 $ 187 Operating lease liability, current portion 307 188 Operating lease liability, net of current portion 2,189 - |
Components of lease expense | The components of lease expense are as follows: December 31, December 31, 2019 2018 Amortization of right-of-use asset recorded as rent expense $ 413 $ 540 Interest on lease liability included in other expense 82 33 Total lease cost $ 495 $ 573 |
Schedule of Future Minimum Payments for Operating Leases | Maturities of the lease liability are as follows: Future Minimum Lease Payments 2020 $ 431 2021 444 2022 457 2023 471 2024 485 Thereafter 666 Total future minimum lease payments 2,954 Less: amount representing interest (458) Present value of future payments 2,496 Current portion 307 Long-term portion $ 2,189 |
Other information related to the lease | Other information related to the lease: For the years ended: December 31, December 31, 2019 2018 Operating cashflows Cash paid related to operating lease obligation $ 460 $ 566 Remaining lease term (in years) Operating lease 6.3 0.3 |
Note 7 - Employee Retirement _2
Note 7 - Employee Retirement Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Table Text Block Supplement [Abstract] | |
Schedule of Settlement of Pension Plan Liabilities | The balance of the Pension Settlement Obligation is recorded on the balance sheet as of December 31, 2019 and 2018 as follows: 2019 2018 Current portion of pension settlement obligation $ 468 $ 438 Pension settlement obligation, net of current portion 3,575 4,042 Total Pension Settlement Obligation $ 4,043 $ 4,480 |
Schedule of Costs of Retirement Plans, changes in benefit obligation | Information concerning the obligations, plan assets and funded status of employee retirement defined benefit plans are provided below: Changes in benefit obligation 2019 2018 Projected benefit obligation - beginning of year $ 4,222 $ 4,650 Interest cost 148 136 Actuarial loss (gain) 284 (119) Benefits paid (387) (445) Projected benefit obligation - end of year $ 4,267 $ 4,222 Changes in plan assets 2019 2018 Contributions $ 386 $ 445 Benefits paid (386) (445) Fair value of plan assets - end of year $ - $ - Net amount recognized 2019 2018 Unfunded status $ (4,267) $ (4,222) Unrecognized net actuarial loss 2,182 1,976 Net amount recognized $ (2,085) |
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) | Net amount recognized 2019 2018 Unfunded status $ (4,267) $ (4,222) Unrecognized net actuarial loss 2,182 1,976 Net amount recognized $ (2,085) $ (2,246) |
Schedule of Amounts Recognized in Balance Sheet | Amounts recognized in the consolidated balance sheets consisted of: 2019 2018 Accrued liability $ (4,267) $ (4,222) Accumulated other comprehensive loss 2,182 1,976 Net amount recognized $ (2,085) $ (2,246) |
Schedule of Net Periodic Benefit Cost | Components of net periodic benefit cost: 2019 2018 Interest cost $ 148 $ 136 Amortization of actuarial loss 78 81 Amortization of prior year service cost - - Net periodic benefit expense $ 226 $ 217 |
Schedule of Expected Benefit Payments | As of December 31, 2019, the following benefits are expected to be paid based on actuarial estimates and prior experience: Years Ending December 31, SERP 2020 $ 682 2021 $ 419 2022 $ 412 2023 $ 396 2024 $ 387 2025-2029 $ 1,336 |
Note 8 - Debt (Tables)
Note 8 - Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Table Text Block Supplement [Abstract] | |
Schedule of Long-term Debt | Long-term debt consisted of the following as of December 31, 2019 and 2018: 2019 2018 First mortgage note payable due in monthly installments of $23 (interest at 5.75%) through January 1, 2024; payment and rate subject to adjustment every 3 years, next adjustment January 14, 2021 $ 1,008 $ 1,221 Second mortgage note payable due in monthly installments of $4 (interest at 5.99%) through October 1, 2028; payment and rate subject to adjustment every 5 years, next adjustment October 1, 2023 295 319 Total debt 1,303 1,540 Current portion of long-term debt (251) (237) Long-term debt, net of current portion $ 1,052 $ 1,303 |
Schedule of Principal maturities | Principal maturities on total debt are as follows: Years Ending December 31, 2020 $ 251 2021 266 2022 282 2023 299 2024 56 Thereafter 149 Total debt $ 1,303 |
Note 9 - Income Taxes (Tables)
Note 9 - Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Table Text Block Supplement [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation | The actual expense (benefit) differs from the expected tax expense (benefit) as computed by applying the U.S. federal statutory income tax rate of 21 percent for 2019 and 2018, respectively, as follows: 2019 2018 Income tax provision (benefit) at U.S. federal statutory rate $ (365) $ 791 State tax provision (benefit), net of federal income tax (155) 116 Change in valuation allowance attributable to operations (298) (3,114) Change in effective tax rate - 111 Stock compensation 9 30 True-up adjustments and expiration of tax carryforwards and credits 685 2,105 Other, net (14) (18) Income tax expense (benefit) $ (138) $ 21 |
Schedule of Deferred Income Tax Assets and Liabilities | The tax effects of temporary differences that give rise to significant portions of the deferred income tax assets and liabilities as of December 31, 2019 and 2018 are as follows: 2019 2018 Property and equipment, principally due to differences in depreciation $ 85 $ 68 Inventory reserves and other inventory-related temporary basis differences 437 437 Warranty, vacation, deferred rent and other liabilities (446) 251 Retirement liabilities 504 543 Net operating loss carryforwards 35,205 35,532 Credit carryforwards - 28 Other 956 181 Total deferred income tax 36,741 37,040 Less valuation allowance (36,741) (37,040) Net deferred income tax $ - $ - |
Schedule of Worldwide Income Before Income Taxes | Worldwide income before income taxes consisted of the following: 2019 2018 United States $ (1,738) $ 3,768 International - - Total $ (1,738) $ 3,768 |
Schedule of Components of Income Tax Expense (Benefit) | Income tax expense (benefit) consisted of the following: 2019 2018 Current U.S. federal $ (28) $ (1) State (110) 22 Total current expense (benefit) $ (138) $ 21 Deferred U.S. federal $ (297) $ 1,477 State 595 1,637 Total 298 3,114 Valuation allowance increase (298) (3,114) Total deferred expense (benefit) - - Total income tax expense (benefit) $ (138) $ 21 |
Note 11 - Stock Option Plan (Ta
Note 11 - Stock Option Plan (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Table Text Block Supplement [Abstract] | |
Schedule of Stock Option Plan Activity | A summary of activity follows (shares in thousands): 2019 2018 Weighted- Weighted- Average Average Number Exercise Number Exercise of Shares Price of Shares Price Outstanding as of beginning of the year 1,597 $ 0.65 1,610 $ 0.66 Granted 166 0.80 150 1.12 Exercised (130) 0.17 - - Forfeited or expired (41) 0.66 (163) 1.21 Outstanding as of end of the year 1,592 0.71 1,597 0.65 Exercisable as of end of the year 1,523 0.61 1,131 0.48 |
Schedule of Stock Options Valuation Assumptions | The fair value of each option grant is estimated on the date of the grant using the Black-Scholes option-pricing model with the following weighted-average assumptions used for the grants made in 2019 and 2018: 2019 2018 Expected life (in years) 3.5 3.5 Risk free interest rate 2.6% 2.0% Expected volatility 81.2% 125.0% Dividend yield - - |
Note 1 - Nature of Operations_3
Note 1 - Nature of Operations and Summary of Significant Accounting Policies: Cash and Cash Equivalents (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Text Block [Abstract] | |
Cash, Uninsured Amount | $ 5,702 |
Note 1 - Nature of Operations_4
Note 1 - Nature of Operations and Summary of Significant Accounting Policies: Restricted Cash: Schedule of Restricted Cash (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Text Block [Abstract] | |||
Cash and cash equivalents | $ 5,962 | $ 8,365 | |
Restricted cash | 31 | 220 | |
Total cash, cash equivalents, and restricted cash shown in the statements of cash flows | $ 5,993 | $ 8,585 | $ 5,588 |
Note 1 - Nature of Operations_5
Note 1 - Nature of Operations and Summary of Significant Accounting Policies: Trade Accounts Receivable: Schedule of Doubtful Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Text Block [Abstract] | ||
Allowance for Doubtful Accounts Receivable, Beginning Balance | $ 157 | $ 109 |
Increase in estimated losses on accounts receivable | 464 | 48 |
Allowance for Doubtful Accounts Receivable, Ending Balance | $ 621 | $ 157 |
Note 1 - Nature of Operations_6
Note 1 - Nature of Operations and Summary of Significant Accounting Policies: Inventories (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Text Block [Abstract] | ||
Provision for excess and obsolete inventory | $ 0 | $ 427 |
Note 1 - Nature of Operations_7
Note 1 - Nature of Operations and Summary of Significant Accounting Policies: Inventories: Schedule of Inventory (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Text Block [Abstract] | ||
Raw Materials | $ 5,215 | $ 5,979 |
Work-in-process | 182 | 116 |
Finished goods | 465 | 323 |
Reserve for obsolete inventory | (3,346) | (3,346) |
Inventories, net | $ 2,516 | $ 3,072 |
Note 1 - Nature of Operations_8
Note 1 - Nature of Operations and Summary of Significant Accounting Policies: Property and Equipment: Schedule of Depreciation (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Depreciation | $ 266 | $ 263 |
Property, Plant and Equipment, Gross | 10,630 | 10,499 |
Less accumulated depreciation and amortization | (6,370) | (6,104) |
Property and equipment, net | 4,260 | 4,395 |
Building and Building Improvements | ||
Property, Plant and Equipment, Gross | $ 3,065 | 3,065 |
Building and Building Improvements | Minimum | ||
Property, Plant and Equipment, Useful Life | 5 years | |
Building and Building Improvements | Maximum | ||
Property, Plant and Equipment, Useful Life | 40 years | |
Machinery and Equipment | ||
Property, Plant and Equipment, Gross | $ 4,685 | 4,554 |
Machinery and Equipment | Minimum | ||
Property, Plant and Equipment, Useful Life | 3 years | |
Machinery and Equipment | Maximum | ||
Property, Plant and Equipment, Useful Life | 8 years | |
Office Equipment | ||
Property, Plant and Equipment, Gross | $ 630 | 630 |
Office Equipment | Minimum | ||
Property, Plant and Equipment, Useful Life | 3 years | |
Office Equipment | Maximum | ||
Property, Plant and Equipment, Useful Life | 8 years | |
Land {1} | ||
Property, Plant and Equipment, Gross | $ 2,250 | $ 2,250 |
Note 1 - Nature of Operations_9
Note 1 - Nature of Operations and Summary of Significant Accounting Policies: Warranty Reserve: Schedule of Product Warranty Reserve (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Text Block [Abstract] | ||
Beginning balance | $ 171 | $ 139 |
Additions to warranty reserve | 139 | 166 |
Warranty costs | (139) | (134) |
Ending balance | $ 171 | $ 171 |
Note 1 - Nature of Operation_10
Note 1 - Nature of Operations and Summary of Significant Accounting Policies: Net Income Per Common Share: Schedule of Net Income Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Numerator | ||
Net Income (Loss) | $ (1,599) | $ 3,308 |
Denominator | ||
Weighted-average number of common shares outstanding - basic | 11,464 | 11,353 |
Incremental shares assumed for stock options | 0 | 625 |
Weighted-average number of common shares outstanding - dilutive | 11,464 | 11,978 |
Basic net income (loss) per common share | $ (0.14) | $ 0.29 |
Diluted net income (loss) per common share | $ (0.14) | $ 0.28 |
Note 2 - Revenue (Details)
Note 2 - Revenue (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Maintenance and Service | |
Products and services segment | Part sales typically range from $1 to $100. Maintenance and Service contract sales typically range from $3 to $200. |
Audio-Visual Systems | |
Products and services segment | Sales of typical Audio-Visual Systems range from $200 to $2,000. |
Note 2 - Revenue_ Schedule of
Note 2 - Revenue: Schedule of geographical revenues (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Application total | ||
Product Application | $ 27,716 | $ 37,193 |
Transferred at Point in Time | ||
Product Application | 3,241 | 2,935 |
Transferred over Time | ||
Product Application | 24,475 | 34,258 |
Audio-Visual Systems | ||
Product Application | 16,051 | 22,961 |
Domes | ||
Product Application | 6,963 | 9,600 |
Show Content | ||
Product Application | 2,416 | 2,225 |
Maintenance and Service | ||
Product Application | 2,286 | 2,407 |
Planetarium Theaters | Application total | ||
Product Application | 24,151 | 31,633 |
Planetarium Theaters | Transferred at Point in Time | ||
Product Application | 3,138 | 2,935 |
Planetarium Theaters | Transferred over Time | ||
Product Application | 21,013 | 28,698 |
Planetarium Theaters | Audio-Visual Systems | ||
Product Application | 14,802 | 21,315 |
Planetarium Theaters | Domes | ||
Product Application | 4,726 | 5,686 |
Planetarium Theaters | Show Content | ||
Product Application | 2,340 | 2,225 |
Planetarium Theaters | Maintenance and Service | ||
Product Application | 2,283 | 2,407 |
Other Visitor Attractions | Application total | ||
Product Application | 3,440 | 4,538 |
Other Visitor Attractions | Transferred at Point in Time | ||
Product Application | 103 | 0 |
Other Visitor Attractions | Transferred over Time | ||
Product Application | 3,337 | 4,538 |
Other Visitor Attractions | Audio-Visual Systems | ||
Product Application | 1,249 | 1,646 |
Other Visitor Attractions | Domes | ||
Product Application | 2,112 | 2,892 |
Other Visitor Attractions | Show Content | ||
Product Application | 76 | 0 |
Other Visitor Attractions | Maintenance and Service | ||
Product Application | 0 | 0 |
Architectural Treatments | Application total | ||
Product Application | 125 | 1,022 |
Architectural Treatments | Transferred at Point in Time | ||
Product Application | 0 | 0 |
Architectural Treatments | Transferred over Time | ||
Product Application | 125 | 1,022 |
Architectural Treatments | Audio-Visual Systems | ||
Product Application | 0 | 0 |
Architectural Treatments | Domes | ||
Product Application | 125 | 1,022 |
Architectural Treatments | Show Content | ||
Product Application | 0 | 0 |
Architectural Treatments | Maintenance and Service | ||
Product Application | 3 | 0 |
North America | ||
Product Application | 14,689 | 25,917 |
North America | Planetarium Theaters | ||
Product Application | 13,376 | 23,443 |
North America | Other Visitor Attractions | ||
Product Application | 1,188 | 1,452 |
North America | Architectural Treatments | ||
Product Application | 125 | 1,022 |
Europe | ||
Product Application | 5,764 | 3,782 |
Europe | Planetarium Theaters | ||
Product Application | 4,519 | 2,607 |
Europe | Other Visitor Attractions | ||
Product Application | 1,245 | 1,175 |
Europe | Architectural Treatments | ||
Product Application | 0 | 0 |
Asia | ||
Product Application | 4,775 | 5,988 |
Asia | Planetarium Theaters | ||
Product Application | 3,798 | 4,077 |
Asia | Other Visitor Attractions | ||
Product Application | 977 | 1,911 |
Asia | Architectural Treatments | ||
Product Application | 0 | 0 |
Other {1} | ||
Product Application | 2,488 | 1,506 |
Other {1} | Planetarium Theaters | ||
Product Application | 2,458 | 1,506 |
Other {1} | Other Visitor Attractions | ||
Product Application | 30 | 0 |
Other {1} | Architectural Treatments | ||
Product Application | $ 0 | $ 0 |
Note 2 - Revenue_ Schedule of c
Note 2 - Revenue: Schedule of contract balances (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Text Block [Abstract] | ||
Accounts receivable, net | $ 4,957 | $ 3,250 |
Contract revenue in excess of billings | 2,655 | 3,484 |
Other Liabilities, Current | $ 5,428 | $ 5,959 |
Note 2 - Revenue_ Schedule of_2
Note 2 - Revenue: Schedule of changes in the contract assets and the contract liabilities (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Contract revenue recognized | |
Increase (Decrease) in Contract with Customer, Liability | $ (4,478) |
Increase (Decrease) in Contract with Customer, Asset | (2,994) |
Contract receivables recorded | |
Increase (Decrease) in Contract with Customer, Asset | 2,165 |
Contract amount billed | |
Increase (Decrease) in Contract with Customer, Liability | $ 3,947 |
Note 2 - Revenue_ Schedule of b
Note 2 - Revenue: Schedule of backlog of performance obligations (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Sales | $ 27,716 | $ 37,193 |
Backlog in sales | 2020 | ||
Sales | 16,018 | |
Backlog in sales | 2021 | ||
Sales | 3,381 | |
Backlog in sales | 2022 | ||
Sales | 202 | |
Backlog in sales | 2023 | ||
Sales | 22 | |
Backlog in sales | 2024 | ||
Sales | $ 85 |
Note 3 - Changes in Accounting
Note 3 - Changes in Accounting Principal (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2019 | Jan. 02, 2018 | |
Text Block [Abstract] | |||
Stockholders' equity | $ 8,373 | $ 6,684 | $ 808 |
Increase rent expense | 439 | ||
Increase in stockholders' equity | $ 369 |
Note 4 - Goodwill (Details)
Note 4 - Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2008 | Dec. 31, 2019 | Dec. 31, 2018 | |
Text Block [Abstract] | |||
Goodwill | $ 635 | $ 635 | |
Payments to Acquire Businesses, Gross | $ 2,884 |
Note 5 - Lease Receivable (Deta
Note 5 - Lease Receivable (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2016 | |
Lease term | 5 years | ||
Fair Value Inputs, Discount Rate | 6.00% | ||
Present value of future lease payments | $ 1,754 | ||
Fair value of lease equipment | 1,678 | ||
Present value of future maintenance exenses | $ 76 | ||
Sales | $ 27,716 | $ 37,193 | |
Increase (Decrease) in Leasing Receivables | (263) | (247) | |
Property, Plant and Equipment | |||
Proceeds from Lease Payments | 307 | 307 | |
Interest Income, Other | 44 | 60 | |
Increase (Decrease) in Leasing Receivables | $ 263 | $ 247 |
Note 5 - Lease Receivable_ Sche
Note 5 - Lease Receivable: Schedule of Lease Receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Text Block [Abstract] | ||
Lease receivable | $ 278 | $ 262 |
Lease receivable long term | 295 | 574 |
Total | $ 573 | $ 836 |
Note 6 - Operating Lease (Detai
Note 6 - Operating Lease (Details) - USD ($) $ in Thousands | 1 Months Ended | 4 Months Ended | 8 Months Ended | 12 Months Ended | ||
Apr. 15, 2019 | Apr. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | May 02, 2019 | |
Notes To Financial Statements Abstract | ||||||
Lease expiration date | Oct. 31, 2019 | |||||
Lease Term | 7 years | |||||
Renewal lease term | 5 years | |||||
Monthly base rent | $ 35 | |||||
Escalation percent | 3.00% | |||||
Estimated borrowing rate | 5.25% | 5.25% | 7.50% | |||
Rent expense | $ 183 | $ 312 | $ 573 | |||
Operating lease liability | 2,496 | $ 2,496 | $ 2,698 | |||
ROU asset | 2,509 | 2,509 | $ 187 | $ 2,742 | ||
Indirect cost | $ 44 | $ 44 |
Note 6 - Operating Lease_ Compo
Note 6 - Operating Lease: Components of lease expense (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | May 02, 2019 | Dec. 31, 2018 |
Notes To Financial Statements Abstract | |||
Operating lease right-of-use asset | $ 2,509 | $ 2,742 | $ 187 |
Operating lease liability, current portion | 307 | 188 | |
Operating lease liability, net of current portion | $ 2,189 | $ 0 |
Note 6 - Operating Lease_ Sched
Note 6 - Operating Lease: Schedule of lease expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Notes To Financial Statements Abstract | ||
Amortization of right-of-use asset recorded as rent expense | $ 413 | $ 540 |
Interest on lease liability included in other expense | 82 | 33 |
Total lease cost | $ 495 | $ 573 |
Note 6 - Operating Lease_ Futur
Note 6 - Operating Lease: Future Minimum Lease Payments (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | May 02, 2019 | Dec. 31, 2018 |
Notes To Financial Statements Abstract | |||
2020 | $ 431 | ||
2021 | 444 | ||
2022 | 457 | ||
2023 | 471 | ||
2024 | 485 | ||
Thereafter | 666 | ||
Total future minimum lease payments | 2,954 | ||
Less: amount representing interest | (458) | ||
Present value of future payments | 2,496 | $ 2,698 | |
Current portion | 307 | $ 188 | |
Long-term portion | $ 2,189 | $ 0 |
Note 6 - Operating Lease_ Other
Note 6 - Operating Lease: Other information related to lease (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Operating cashflows | ||
Cash paid related to operating lease obligation | $ 460 | $ 566 |
Remaining lease term (in years) Operating lease | 6 years 3 months 19 days | 3 months 19 days |
Note 7 - Employee Retirement _3
Note 7 - Employee Retirement Benefit Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Apr. 21, 2016 | |
Pension Plan Settlement Agreement, Amount Payable | $ 10,500 | ||
Pension Plan Settlement Agreement, Payment Schedule | with $1,500 due within ten days following the effective date of the Pension Settlement Agreement and the remainder paid in twelve annual installments of $750 beginning on October 31, 2015 | ||
Pension Plan Settlement Agreement, Stock Payable | 88,117 | ||
Settled ERISA Liabilities | $ 46,000 | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,100 | ||
Pension Cost (Reversal of Cost) | 226 | $ 217 | |
Decrease (increase) in minimum pension liability | $ (206) | $ 200 | |
Assumptions Used Calculating Benefit Obligation, Discount Rate | 2.60% | 3.80% | |
Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | 2.60% | 3.80% | |
Second Intercreditor Agreement | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 3,000 | ||
Intercreditor Agreement | |||
Line of Credit Facility, Maximum Borrowing Capacity | 6,500 | ||
401K Deferred Savings Plan | |||
Contribution by Employer | $ 482 | $ 444 |
Note 7 - Employee Retirement _4
Note 7 - Employee Retirement Benefit Plans: Schedule of Settlement of Pension Plan Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Text Block [Abstract] | ||
Current portion of pension settlement obligation | $ 468 | $ 438 |
Pension settlement obligation, net of current portion | 3,575 | 4,042 |
Pension Settlement Obligation | $ 4,043 | $ 4,480 |
Note 7 - Employee Retirement _5
Note 7 - Employee Retirement Benefit Plans: Schedule of Costs of Retirement Plans, changes in benefit obligation (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Text Block [Abstract] | ||
Projected benefit obligation as of beginning of the year | $ 4,222 | $ 4,650 |
Interest cost | 148 | 136 |
Actuarial loss (gain) | 284 | (119) |
Benefits paid | (387) | (445) |
Projected benefit obligation as of beginning of the year | 4,267 | 4,222 |
Contributions | 386 | 445 |
Fair value of plan assets - end of year | $ 0 | $ 0 |
Note 7 - Employee Retirement _6
Note 7 - Employee Retirement Benefit Plans: Schedule of Amounts Recognized in Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Text Block [Abstract] | ||
Unfunded status | $ (4,267) | $ (4,222) |
Unrecognized net actuarial loss | 2,182 | 1,976 |
Net amount recognized | $ (2,085) | $ (2,246) |
Note 7 - Employee Retirement _7
Note 7 - Employee Retirement Benefit Plans: Schedule of Amounts Recognized in Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Text Block [Abstract] | ||
Accrued liability | $ (4,267) | $ (4,222) |
Accumulated other comprehensive loss | 2,182 | 1,976 |
Net amount recognized | $ (2,085) | $ (2,246) |
Note 7 - Employee Retirement _8
Note 7 - Employee Retirement Benefit Plans: Schedule of Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Text Block [Abstract] | ||
Interest cost | $ 148 | $ 136 |
Amortization of actuarial loss | 78 | 81 |
Amortization of prior year service cost | 0 | 0 |
Net periodic benefit cost | $ 226 | $ 217 |
Note 7 - Employee Retirement _9
Note 7 - Employee Retirement Benefit Plans: Schedule of Expected Benefit Payments (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Text Block [Abstract] | |
2020 | $ 682 |
2021 | 419 |
2022 | 412 |
2023 | 396 |
2024 | 387 |
2025-2029 | $ 1,336 |
Note 8 - Debt (Details)
Note 8 - Debt (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Jan. 14, 2005 | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,100 | |
First Mortgage Note Payable | ||
Debt Instrument, Face Amount | $ 3,200 | |
Long-term Debt, Maturities, Repayment Terms | The First Mortgage Note requires repayment in monthly installments of principal and interest over 20 years. On January 14, 2006 and each third anniversary thereof, the interest rate on the First Mortgage Note is adjusted to the greater of 5.75% or 3% over the Three-Year Constant Maturity Treasury Rate published by the United States Federal Reserve (“3YCMT”). | |
Debt Instrument, Interest Rate, Basis for Effective Rate | On January 14, 2018, the 3YCMT was 2.09% and the interest rate on the First Mortgage Note remained at 5.75% per annum. As a result, the monthly installment amount remained at $23. | |
Second Mortgage Note Payable | ||
Debt Instrument, Interest Rate, Basis for Effective Rate | On October 1, 2018, the fifth anniversary of the Second Mortgage Note, the 5YCMT was 2.99%. As a result, interest was adjusted to 5.99%. The monthly installment remains at $4. | |
Property Carrying Value | $ 3,863 | |
Line Of Credit 1 | ||
Debt Instrument, Interest Rate Terms | Under the line of credit agreement, interest is charged on amounts borrowed at the lender’s prime rate less 0.25%. |
Note 8 - Debt_ Schedule of Long
Note 8 - Debt: Schedule of Long-term Debt (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Long-term Debt | $ 1,303 | $ 1,540 |
Current portion of long-term debt | (251) | (237) |
Long-term debt, net of current portion | 1,052 | 1,303 |
First Mortgage Note Payable | ||
Debt Instrument, Periodic Payment | $ 23 | |
Debt Instrument, Interest Rate, Effective Percentage | 5.75% | |
Long-term Debt | $ 1,008 | 1,221 |
Second Mortgage Note Payable | ||
Debt Instrument, Periodic Payment | $ 4 | |
Debt Instrument, Interest Rate, Effective Percentage | 5.99% | |
Long-term Debt | $ 295 | $ 319 |
Note 8 - Debt_ Schedule of Prin
Note 8 - Debt: Schedule of Principal maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Text Block [Abstract] | ||
2020 | $ 251 | |
2021 | 266 | |
2022 | 282 | |
2023 | 299 | |
2024 | 56 | |
Thereafter | 149 | |
Long-term Debt | $ 1,303 | $ 1,540 |
Note 9 - Income Taxes (Details)
Note 9 - Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Federal research credits | $ 1,600 | |
Change in valuation allowance attributable to operations | (298) | $ (3,114) |
Internal Revenue Service (IRS) | ||
Operating Loss Carryforwards | 162,300 | |
Internal Revenue Service (IRS) | No Expire | ||
Operating Loss Carryforwards | 0 | |
State and Local Jurisdiction | ||
State research credits | 800 | |
State and Local Jurisdiction | Expire On Various Dates | ||
Operating Loss Carryforwards | $ 23,900 |
Note 9 - Income Taxes_ Schedule
Note 9 - Income Taxes: Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Text Block [Abstract] | ||
Income tax provision (benefit) at U.S. federal statutory rate | $ (365) | $ 791 |
State tax provision, (benefit), net of federal income tax | (155) | 116 |
Change in valuation allowance attributable to operations | (298) | (3,114) |
Change in effective tax rate | 0 | 111 |
Stock compensation | 9 | 30 |
True-up adjustments and expiration of tax carryforwards and credits | 685 | 2,105 |
Other, net | (14) | (18) |
Income tax provision (benefit) | $ (138) | $ 21 |
Note 9 - Income Taxes_ Schedu_2
Note 9 - Income Taxes: Schedule of Deferred Income Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Text Block [Abstract] | ||
Property and equipment, principally due to differences in depreciation | $ 85 | $ 68 |
Inventory reserves and other inventory-related temporary basis differences | 437 | 437 |
Warranty, vacation, deferred rent and other liabilities | (446) | 251 |
Retirement liabilities | 504 | 543 |
Net operating loss carryforwards | 35,205 | 35,532 |
Credit carryforwards | 0 | 28 |
Other | 956 | 181 |
Total deferred income tax assets | 36,741 | 37,040 |
Less valuation allowance | (36,741) | (37,040) |
Net deferred income tax assets | $ 0 | $ 0 |
Note 9 - Income Taxes_ Schedu_3
Note 9 - Income Taxes: Schedule of Worldwide Income Before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Text Block [Abstract] | ||
United States | $ (1,738) | $ 3,768 |
International | 0 | 0 |
Total | $ (1,738) | $ 3,768 |
Note 9 - Income Taxes_ Schedu_4
Note 9 - Income Taxes: Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Current | ||
U.S. federal | $ (28) | $ (1) |
State | 110 | (22) |
Current Income Tax Expense (Benefit) | (138) | 21 |
Deferred | ||
U.S. federal | (297) | 1,477 |
State | 595 | 1,637 |
Deferred Federal, State and Local, Tax Expense (Benefit) | 298 | 3,114 |
Valuation allowance increase | (298) | (3,114) |
Total deferred expense (benefit) | 0 | 0 |
Total income tax expense (benefit) | $ (138) | $ 21 |
Note 10 - Commitments and Con_2
Note 10 - Commitments and Contingencies (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Text Block [Abstract] | ||
Letters of Credit Outstanding, Amount | $ 31 | $ 220 |
Note 11 - Stock Option Plan (De
Note 11 - Stock Option Plan (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Options, Granted, Weighted Average Grant Date Fair Value | $ 0.40 | $ 0.77 |
Options exercisable, weighted average remaining contractual term | 4 years 8 months 12 days | 4 years 8 months 12 days |
Options outstanding, weighted average remaining contractual term | 5 years 9 months 18 days | 5 years 8 months 12 days |
Options, Exercisable, Aggregate Intrinsic Value | $ 276 | $ 385 |
Options, Outstanding, Aggregate Intrinsic Value | 276 | 385 |
Total unrecognized share-based compensation cost | $ 76 | $ 90 |
Total unrecognized share-based compensation, compensation cost not yet recognized, weighted-average period | 1 year 10 months 25 days | 1 year 10 months 25 days |
Allocated Share-based Compensation Expense | $ 95 | $ 149 |
2004 Stock Incentive Plan Of Evans Sutherland Computer Corporation | ||
Minimum exercise price for options | The 2014 Plan continues a minimum exercise price for options of 110% of fair market value on the date of grant. | |
Number of Shares Authorized | 876,981 | |
2004 Stock Incentive Plan Of Evans Sutherland Computer Corporation | Directors | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 10,000 |
Note 11 - Stock Option Plan_ Sc
Note 11 - Stock Option Plan: Schedule of Stock Option Plan Activity (Details) - $ / shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Text Block [Abstract] | ||
Outstanding at beginning of year | 1,597 | 1,610 |
Outstanding at beginning of year, weighted average exercise price | $ 0.65 | $ 0.66 |
Granted | 166 | 150 |
Granted, weighted average exercise price | $ 0.80 | $ 1.12 |
Exercised | (130) | 0 |
Exercised, weighted average exercise price | $ 0.17 | $ 0 |
Forfeited or expired | (41) | (163) |
Forfeited or expired, weighted average exercise price | $ 0.66 | $ 1.21 |
Outstanding at beginning of year | 1,592 | 1,597 |
Outstanding at beginning of year, weighted average exercise price | $ 0.71 | $ 0.65 |
Exercisable as of end of the period | 1,523 | 1,131 |
Exercisable as of end of the period, weighted average exercise price | $ 0.61 | $ 0.48 |
Note 11 - Stock Option Plan_ _2
Note 11 - Stock Option Plan: Schedule of Stock Options Valuation Assumptions (Details) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Text Block [Abstract] | ||
Expected life (in years) | 3 years 6 months | 3 years 6 months |
Risk-free interest rate | 2.60% | 2.00% |
Expected Volatility | 81.20% | 125.00% |
Dividend yield | 0.00% | 0.00% |
Note 12 - Preferred Stock (Deta
Note 12 - Preferred Stock (Details) - shares | Dec. 31, 2019 | Dec. 31, 2018 |
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Preferred Class A | ||
Preferred Stock, Shares Authorized | 5,000,000 | |
Preferred Stock, Shares Outstanding | 0 | 0 |
Preferred Class B | ||
Preferred Stock, Shares Authorized | 5,000,000 | |
Preferred Stock, Shares Outstanding | 0 | 0 |
Note 13 - Significant Custome_2
Note 13 - Significant Customers (Details) - Accounts Receivable | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Customer G | ||
Concentration Risk, Percentage | 24.00% | |
Customer H | ||
Concentration Risk, Percentage | 10.00% | |
Customer A | ||
Concentration Risk, Percentage | 32.00% | |
Customer B | ||
Concentration Risk, Percentage | 10.00% | |
Customer C | ||
Concentration Risk, Percentage | 16.00% | |
Customer D | ||
Concentration Risk, Percentage | 17.00% | |
Customer E | ||
Concentration Risk, Percentage | 13.00% | |
Customer F | ||
Concentration Risk, Percentage | 11.00% |
Note 14 - Subsequent Events (De
Note 14 - Subsequent Events (Details) - Subsequent Event [Member] - Merger Agreement - Elevate | Feb. 09, 2020$ / sharesshares |
Share Price | $ / shares | $ 1.19 |
Expiration of shares | shares | 10,576,487 |