Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Aug. 12, 2019 | |
Document Information [Line Items] | ||
Entity Registrant Name | MIKROS SYSTEMS CORP | |
Entity Central Index Key | 0000317340 | |
Trading Symbol | mkrs | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Common Stock, Shares Outstanding (in shares) | 35,588,775 | |
Entity Shell Company | false | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Title of 12(g) Security | Common Stock |
Balance Sheets (Current Period
Balance Sheets (Current Period Unaudited) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 1,651,427 | $ 2,206,749 |
Receivables on government contracts | 1,190,170 | 1,043,738 |
Prepaid expenses and other current assets | 139,185 | 94,717 |
Total current assets | 2,980,782 | 3,345,204 |
Property and equipment: | ||
Operating lease-right to use asset | 413,080 | |
Equipment | 383,190 | 357,796 |
Leasehold improvements | 21,306 | 21,306 |
Furniture & fixtures | 43,174 | 43,174 |
Less: accumulated depreciation | (139,951) | (109,484) |
Property and equipment, net | 720,799 | 312,792 |
Intangible assets | 140,660 | 140,428 |
Less: accumulated amortization | (93,955) | (75,241) |
Intangible assets, net | 46,705 | 65,187 |
Deferred tax assets | 50,428 | 34,623 |
Total assets | 3,798,714 | 3,757,806 |
Current liabilities: | ||
Accrued payroll and payroll taxes | 541,186 | 868,618 |
Accounts payable and accrued expenses | 228,204 | 308,415 |
Accrued warranty expense | 106,550 | 153,723 |
Lease obligation, current portion | 122,103 | |
Deferred revenue | 33,847 | 39,824 |
Total current liabilities | 1,031,890 | 1,370,580 |
Lease obligation, net of current portion | 308,995 | |
Other long-term liabilities | 19,560 | |
Total liabilities | 1,340,885 | 1,390,140 |
Shareholders' equity: | ||
Preferred stock, convertible, par value $.01 per share, authorized 5,000,000 shares, none issued and outstanding | ||
Common stock, par value $.01 per share, authorized 60,000,000 shares, issued and outstanding 35,588,775 and 35,568,775 shares, respectively | 355,889 | 355,689 |
Capital in excess of par value | 10,119,222 | 10,106,344 |
Accumulated deficit | (8,017,282) | (8,094,367) |
Total shareholders' equity | 2,457,829 | 2,367,666 |
Total liabilities and shareholders' equity | $ 3,798,714 | $ 3,757,806 |
Balance Sheets (Current Perio_2
Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares | Jun. 30, 2019 | Dec. 31, 2018 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 60,000,000 | 60,000,000 |
Common stock, issued (in shares) | 35,588,775 | 35,568,775 |
Common stock, outstanding (in shares) | 35,588,775 | 35,568,775 |
Statements of Income (Unaudited
Statements of Income (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Contract revenues | $ 1,853,503 | $ 2,242,111 | $ 3,873,768 | $ 4,732,771 |
Cost of sales | 792,151 | 1,102,407 | 1,570,693 | 2,279,439 |
Gross margin | 1,061,352 | 1,139,704 | 2,303,075 | 2,453,332 |
Expenses: | ||||
Engineering | 695,838 | 593,797 | 1,358,088 | 1,234,090 |
General and administrative | 369,742 | 422,259 | 833,307 | 873,937 |
Total expenses | 1,065,580 | 1,016,056 | 2,191,395 | 2,108,027 |
Income (loss) from operations | (4,228) | 123,648 | 111,680 | 345,305 |
Other income: | ||||
Interest income | 939 | 456 | 2,671 | 916 |
Income (loss) before income taxes | (3,289) | 124,564 | 114,351 | 346,221 |
Income tax expense | 432 | 40,277 | 37,267 | 109,089 |
Net income (loss) available to common shareholders | $ (3,721) | $ 84,287 | $ 77,084 | $ 237,132 |
Income per common share - basic (in dollars per share) | $ 0.01 | |||
Basic weighted average number of shares outstanding (in shares) | 35,577,786 | 35,568,775 | 35,573,305 | 35,566,609 |
Income per common share - diluted (in dollars per share) | $ 0.01 | |||
Diluted weighted average number of shares outstanding (in shares) | 35,577,786 | 35,846,608 | 35,765,111 | 35,849,795 |
Statements of Shareholders' Equ
Statements of Shareholders' Equity (Unaudited) - USD ($) | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Balance (in shares) at Dec. 31, 2017 | 35,561,775 | ||||
Balance at Dec. 31, 2017 | $ 355,619 | $ 10,087,843 | $ (8,423,577) | $ 2,019,885 | |
Stock compensation | 9,143 | 9,143 | |||
Exercise of stock options (in shares) | 7,000 | ||||
Exercise of stock options | $ 70 | 280 | 350 | ||
Net income | 237,132 | 237,132 | |||
Balance (in shares) at Jun. 30, 2018 | 35,568,775 | ||||
Balance at Jun. 30, 2018 | $ 355,689 | 10,097,266 | (8,186,445) | 2,266,510 | |
Balance (in shares) at Mar. 31, 2018 | 35,568,775 | ||||
Balance at Mar. 31, 2018 | $ 355,689 | 10,092,727 | (8,270,732) | 2,177,684 | |
Stock compensation | 4,539 | 4,539 | |||
Net income | 84,287 | 84,287 | |||
Balance (in shares) at Jun. 30, 2018 | 35,568,775 | ||||
Balance at Jun. 30, 2018 | $ 355,689 | 10,097,266 | (8,186,445) | 2,266,510 | |
Balance (in shares) at Dec. 31, 2018 | 35,568,775 | ||||
Balance at Dec. 31, 2018 | $ 355,689 | 10,106,344 | (8,094,366) | 2,367,666 | |
Stock compensation | 9,078 | 9,078 | |||
Exercise of stock options (in shares) | 20,000 | ||||
Exercise of stock options | $ 200 | 3,800 | 4,000 | ||
Net income | 77,084 | 77,084 | |||
Balance (in shares) at Jun. 30, 2019 | 35,588,775 | ||||
Balance at Jun. 30, 2019 | $ 355,889 | 10,119,222 | (8,017,282) | 2,457,829 | |
Balance (in shares) at Mar. 31, 2019 | 35,568,775 | ||||
Balance at Mar. 31, 2019 | $ 355,689 | 10,110,883 | (8,013,561) | 2,453,011 | |
Stock compensation | 4,539 | 4,539 | |||
Exercise of stock options (in shares) | 20,000 | ||||
Exercise of stock options | $ 200 | 3,800 | 4,000 | ||
Net income | (3,721) | (3,721) | |||
Balance (in shares) at Jun. 30, 2019 | 35,588,775 | ||||
Balance at Jun. 30, 2019 | $ 355,889 | $ 10,119,222 | $ (8,017,282) | $ 2,457,829 |
Statements of Cash Flows (Unaud
Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 77,084 | $ 237,132 |
Adjustments to reconcile net income to net cash provided by (used in ) operating activities: | ||
Depreciation and amortization | 51,771 | 25,456 |
Deferred tax benefit | (15,805) | (27,283) |
Share-based compensation expense | 9,078 | 9,143 |
Changes in assets and liabilities: | ||
(Increase) in receivables on government contracts | (146,432) | (331,359) |
(Increase) in prepaid expenses and other current assets | (44,468) | (2,843) |
(Decrease) increase in accrued payroll and payroll taxes | (327,432) | 81,415 |
(Decrease) in accounts payable and accrued expenses | (80,210) | (58,223) |
(Decrease) increase in accrued warranty expense | (47,173) | 21,641 |
(Decrease) in deferred revenue | (5,977) | (5,000) |
(Decrease) in long-term liabilities | (1,542) | (1,898) |
Net cash used in operating activities | (531,106) | (51,819) |
Cash flows from investing activities: | ||
Payments related to intangible assets | (232) | (2,123) |
Purchase of property and equipment | (27,984) | (38,383) |
Net cash used in investing activities | (28,216) | (40,506) |
Cash flows from financing activities: | ||
Exercise of stock options | 4,000 | 350 |
Net cash provided by financing activities | 4,000 | 350 |
Net decrease in cash and cash equivalents | (555,322) | (91,975) |
Cash and cash equivalents, beginning of period | 2,206,749 | 1,173,177 |
Cash and cash equivalents, end of period | 1,651,427 | 1,081,202 |
Cash paid for income taxes | $ 121,000 | $ 26,000 |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | Note 1 – Basis of Presentation The financial statements included herein have been prepared by Mikros Systems Corporation (the “Company”) pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to such rules and regulations. These condensed financial statements should be read in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form 10 December 31, 2018. In the opinion of the Company’s management, the accompanying unaudited interim condensed financial statements contain all adjustments, consisting solely of those which are of a normal recurring nature, necessary to present fairly its financial position as of June 30, 2019, three six June 30, 2019 2018, three six June 30, 2019 2018 six June 30, 2019 2018. |
Note 2 - Recent Accounting Pron
Note 2 - Recent Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | Note 2 – Recent Accounting Pronouncements In February 2016, 2016 02, 842 2016 02 December 15, 2018, July 2018 2018 11 2016 02 January 1, 2019 Adoption of the new standard resulted in the recording of operating lease right-of-use assets and operating lease liabilities on our balance sheet, but did not June 30, 2019, $413,080 $122,103 $308,995, |
Note 3 - Significant Accounting
Note 3 - Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | Note 3 – Significant Accounting Policies Revenue Recognition We provide our products and services under fixed-price and cost-reimbursable contracts. Under fixed-price contracts we agree to perform the specified work for a pre-determined price. To the extent our actual costs vary from the estimates upon which the price was negotiated, we will generate more or less profit or could incur a loss. Cost-reimbursable contracts provide for the payment of allowable costs incurred during performance of the contract. We also enter into cost-plus-fixed-fee contracts. The fixed-fee in a cost-plus-fixed-fee contract is negotiated at the inception of the contract and that fixed-fee does not vary with actual costs. We account for a contract after it has been approved by all parties to the arrangement, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable. We assess each contract at its inception to determine whether it should be combined with other contracts. When making this determination, we consider factors such as whether two or more contracts were negotiated and executed at or near the same time or were negotiated with an overall profit objective. If combined, we treat the combined contracts as a single contract for revenue recognition purposes. We evaluate the products or services promised in each contract at inception to determine whether the contract should be accounted for as having one or more performance obligations. The products and services in our contracts are typically not distinct from one another due to their complex relationships and the significant contract management functions required to perform under the contract. Accordingly, our contracts are typically accounted for as one performance obligation. Significant judgment is required in determining performance obligations, and these decisions could change the amount of revenue and profit recorded in a given period. We classify net sales as products or services on our statements of income based on the predominant attributes of the performance obligations. We determine the transaction price for each contract based on the consideration we expect to receive for the products or services being provided under the contract. Our contracts do not include variable consideration. At the inception of a contract we estimate the transaction price based on our current rights and do not contemplate future modifications. Contracts are often subsequently modified to include changes in specifications, requirements or price, which may create new or change existing enforceable rights and obligations. Depending on the nature of the modification, we consider whether to account for the modification as an adjustment to the existing contract or as a separate contract. Generally, modifications to our contracts or delivery orders are distinct and will be accounted for as a separate contract. We recognize revenue as performance obligations are satisfied and the customer obtains control of the products and services. In determining when performance obligations are satisfied, we consider factors such as contract terms, payment terms and whether there is an alternative future use of the product or service. Substantially all of our revenue is recognized over a period of time as we perform under the contract because control of the work in process transfers continuously to the customer. This continuous transfer of control of the work in process to the customer is supported by clauses in the contract that allow the customer to unilaterally terminate the contract for convenience, pay us for costs incurred plus a reasonable profit, and take control of any work in process. For performance obligations to deliver products with continuous transfer of control to the customer, revenue is recognized based on the extent of progress towards completion of the performance obligation, generally using the cost-to-cost measure of progress for our contracts because it best depicts the transfer of control to the customer as we incur costs on our contracts. Under the cost-to-cost measure of progress, the extent of progress towards completion is measured based on the ratio of costs incurred to date to the total estimated costs to complete the performance obligation. For performance obligations to provide services to the customer, revenue is recognized over a period of time based on costs incurred as our customer receives and consumes the benefits. Backlog (i.e., unfulfilled or remaining performance obligations) represents the sales we expect to recognize for our products and services for which control has not yet transferred to the customer. The estimated consideration is determined at the outset of the contract and considers the risks related to the technical, schedule and cost impacts to complete the contract. Periodically, we review these risks and may increase or decrease backlog accordingly. As the risks on such contracts are successfully retired, the estimated consideration from customers may be reduced, resulting in a reduction of backlog without a corresponding recognition of revenue. As of June 30, 2019, our ending backlog was $1.8 million. For arrangements with the Department of Defense, we generally do not begin work on contracts until funding is appropriated by the customer. Billing timetables and payment terms on our contracts vary based on a number of factors, including the contract type. Warranty Expense The Company provides a limited warranty, as defined by the related warranty agreements, for its production units. The Company’s warranties require the Company to repair or replace defective products during such warranty period. The Company estimates the costs that may be incurred under its warranty and records a liability in the amount of such costs at the time product revenue is recognized. Factors that affect the Company’s warranty liability include the number of units sold, expected and anticipated rates of warranty claims, and cost per claim. The Company periodically assesses the adequacy of its recorded warranty liability and adjusts the amount as necessary. During the three months ended June 30, 2019 and 2018, the Company recognized a warranty (benefit) expense of $( 40,400 ) and $40,000, respectively, and for the six months ended June 30, 2019 and 2018, the Company recognized a warranty (benefit) expense of $( 40,400 ) and $40,000, respectively. Since the inception of the ADEPT IDIQ contract in March 2010, the Company has delivered 226 ADEPT units. As of June 30, 2019, there were 26 ADEPT units remaining under the limited warranty coverage. The following table reflects the reserve for product warranty activity for: June 30, 2019 December 31, 2018 Balance, beginning of the period $ 153,723 $ 40,000 Provision for product warranty - 142,000 Product warranty expirations (40,400 ) - Product warranty costs paid (6,773 ) (28,277 ) Balance, end of the period $ 106,550 $ 153,723 Research and Development Expense Research and Development expenditures for research and development of the Company's products are expensed when incurred and are included in general and administrative expenses. The Company recognized research and development costs as follows: Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 Salaries $ 11,195 $ 25,654 $ 17,641 $ 62,680 Other costs 12,454 20,608 12,454 24,401 $ 23,649 $ 46,262 $ 30,095 $ 87,081 Intangible Assets The Company’s intangible assets include a license acquired during 2015. In July 2015, the Company purchased certain software products, intellectual property and related assets from VSE Corporation. The primary software programs purchased were the Prognostics Framework and Diagnostic Profiler programs. The Diagnostic Profiler software is used worldwide by several multinational companies for optimized maintenance of diverse product lines. The Diagnostic Profiler is also used by the US Air Force for depot test programs, and Prognostics Framework is used by the US Army for several missile defense systems. Licenses are amortized using a straight-line method over their estimated life of six years. For the three and six months ended June 30, 2019 and 2018, amortization expense related to the Company’s license amounted to $5,250 and $5,250 and $10,500 and $10,500, respectively, and is included in general and administrative expenses on the Statements of Income. |
Note 4 - Income Tax Matters
Note 4 - Income Tax Matters | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | Note 4 At June 30, 2019, 2019 32%. $37,267 six June 30, 2019. June 30, 2019, The Company conducts an on-going analysis to review its net deferred tax asset and the need for a related valuation allowance. As a result of this analysis and the actual results of operations, the Company has increased its net deferred tax assets by $15,805 $27,283 six June 30, 2019 2018, |
Note 5 - Income Per Share
Note 5 - Income Per Share | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | Note 5 – Income Per Share Net income per common share information is as follows: Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 Basic earnings per common share: Net (loss) income $ (3,721 ) $ 84,287 $ 77,084 $ 237,132 Weighted average basic shares outstanding 35,577,786 35,568,775 35,573,305 35,566,609 Basic income per common share $ - $ - $ - $ 0.01 Dilutive earnings per common share: Net (loss) income allocable to common shareholders $ (3,721 ) $ 84,287 $ 77,084 $ 237,132 Weighted average shares outstanding - basic 35,577,786 35,568,775 35,573,305 35,566,609 Diluted effect: Stock options - 67,571 41,516 69,000 Unvested restricted stock - 210,262 150,290 214,186 Weighted average dilutive shares outstanding 35,577,786 35,846,608 35,765,111 35,849,795 Dilutive income per common share $ - $ - $ - $ 0.01 Diluted net income per share for the three six June 30, 2019 2018 not Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 Unvested restricted stock 447,000 70,000 80,000 70,000 Stock options 195,000 - - - |
Note 6 - Operating Leases
Note 6 - Operating Leases | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Lessee, Operating Leases [Text Block] | Note 6 – Operating Leases The Company adopted the ASU Topic 842 January 1, 2019 ● Did not ● Did not ● Did not In addition, the Company elected to retrospectively determine the lease term and assess impairment of right of use asset. At the date of transition, the Company recognized an operating lease liability and right of use asset. The amount of lease liability is equal to the present value of the remaining lease payments as of January 1, 2019 4.89%. A right-of-use asset is measured at the amount of the lease liability adjusted for the amount of deferred straight-line rent, prepaid rent and lease incentive allowances previously recognized. The determination of whether an arrangement is, or contains, a lease is based on the substance of the arrangement at the inception date and requires an assessment of whether the fulfillment of the arrangement is dependent on the use of a specific asset or assets or the arrangement conveys a right to use the asset. A reassessment is made after inception of the lease only if one a. there is a change in contractual terms, other than a renewal or extension of the arrangement; b. a renewal option is exercised or extension granted, unless the term of the renewal or extension was initially included in the lease term; c. there is a change in the determination of whether fulfillment is dependent on a specified asset; or d. there is a substantial change to the asset. Whenever a reassessment is made, lease accounting shall commence or cease from the date when the change in circumstances gave rise to the reassessment for scenarios (a), (c) or (d) and at the date of renewal or extension period for scenario (b). Leases where the lessor retains substantially all of the risks and rewards of ownership are classified as operating leases. Operating lease payments are recognized as an operating expense on a straight-line basis over the lease term. The Company has operating lease agreements for each of its offices. The Company has determined that the risks and benefits related to the leased properties are retained by the lessors. Accordingly, these are accounted for as operating leases. These lease agreements are for terms ranging from 5.25 5.33 2.1%. The following table presents the maturity profile of the Company’s operating lease liabilities based on the contractual undiscounted payments with a reconciliation of these amounts to the remaining net present value of the operating lease liability reported in the balance sheet as of June 30, 2019. Year Amount Remainder of 2019 $ 69,738 2020 141,976 2021 144,976 2022 110,857 Total lease payments 467,547 Less: Interest (36,449 ) Net present value of lease liabilities $ 431,098 The weighted average remaining lease terms and discount rates for all of the Company’s operating leases as of June 30, 2019 Weighted average lease term (in months) 39 Weighted average discount rate 4.89 % |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Revenue [Policy Text Block] | Revenue Recognition We provide our products and services under fixed-price and cost-reimbursable contracts. Under fixed-price contracts we agree to perform the specified work for a pre-determined price. To the extent our actual costs vary from the estimates upon which the price was negotiated, we will generate more or less profit or could incur a loss. Cost-reimbursable contracts provide for the payment of allowable costs incurred during performance of the contract. We also enter into cost-plus-fixed-fee contracts. The fixed-fee in a cost-plus-fixed-fee contract is negotiated at the inception of the contract and that fixed-fee does not We assess each contract at its inception to determine whether it should be combined with other contracts. When making this determination, we consider factors such as whether two We evaluate the products or services promised in each contract at inception to determine whether the contract should be accounted for as having one not one Accordingly, our contracts are typically accounted for as one We determine the transaction price for each contract based on the consideration we expect to receive for the products or services being provided under the contract. Our contracts do not not may We recognize revenue as performance obligations are satisfied and the customer obtains control of the products and services. In determining when performance obligations are satisfied, we consider factors such as contract terms, payment terms and whether there is an alternative future use of the product or service. Substantially all of our revenue is recognized over a period of time as we perform under the contract because control of the work in process transfers continuously to the customer. This continuous transfer of control of the work in process to the customer is supported by clauses in the contract that allow the customer to unilaterally terminate the contract for convenience, pay us for costs incurred plus a reasonable profit, and take control of any work in process. For performance obligations to deliver products with continuous transfer of control to the customer, revenue is recognized based on the extent of progress towards completion of the performance obligation, generally using the cost-to-cost measure of progress for our contracts because it best depicts the transfer of control to the customer as we incur costs on our contracts. Under the cost-to-cost measure of progress, the extent of progress towards completion is measured based on the ratio of costs incurred to date to the total estimated costs to complete the performance obligation. For performance obligations to provide services to the customer, revenue is recognized over a period of time based on costs incurred as our customer receives and consumes the benefits. Backlog (i.e., unfulfilled or remaining performance obligations) represents the sales we expect to recognize for our products and services for which control has not may may June 30, 2019, $1.8 not |
Standard Product Warranty, Policy [Policy Text Block] | Warranty Expense The Company provides a limited warranty, as defined by the related warranty agreements, for its production units. The Company’s warranties require the Company to repair or replace defective products during such warranty period. The Company estimates the costs that may three June 30, 2019 2018, 40,400 $40,000, six June 30, 2019 2018, 40,400 $40,000, March 2010, 226 June 30, 2019, 26 The following table reflects the reserve for product warranty activity for: June 30, 2019 December 31, 2018 Balance, beginning of the period $ 153,723 $ 40,000 Provision for product warranty - 142,000 Product warranty expirations (40,400 ) - Product warranty costs paid (6,773 ) (28,277 ) Balance, end of the period $ 106,550 $ 153,723 |
Research and Development Expense, Policy [Policy Text Block] | Research and Development Expense Research and Development expenditures for research and development of the Company's products are expensed when incurred and are included in general and administrative expenses. The Company recognized research and development costs as follows: Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 Salaries $ 11,195 $ 25,654 $ 17,641 $ 62,680 Other costs 12,454 20,608 12,454 24,401 $ 23,649 $ 46,262 $ 30,095 $ 87,081 |
Intangible Assets, Finite-Lived, Policy [Policy Text Block] | Intangible Assets The Company’s intangible assets include a license acquired during 2015. July 2015, Licenses are amortized using a straight-line method over their estimated life of six three six June 30, 2019 2018, $5,250 $5,250 $10,500 $10,500, |
Note 3 - Significant Accounti_2
Note 3 - Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Schedule of Product Warranty Liability [Table Text Block] | June 30, 2019 December 31, 2018 Balance, beginning of the period $ 153,723 $ 40,000 Provision for product warranty - 142,000 Product warranty expirations (40,400 ) - Product warranty costs paid (6,773 ) (28,277 ) Balance, end of the period $ 106,550 $ 153,723 |
Research and Development Expense [Table Text Block] | Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 Salaries $ 11,195 $ 25,654 $ 17,641 $ 62,680 Other costs 12,454 20,608 12,454 24,401 $ 23,649 $ 46,262 $ 30,095 $ 87,081 |
Note 5 - Income Per Share (Tabl
Note 5 - Income Per Share (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 Basic earnings per common share: Net (loss) income $ (3,721 ) $ 84,287 $ 77,084 $ 237,132 Weighted average basic shares outstanding 35,577,786 35,568,775 35,573,305 35,566,609 Basic income per common share $ - $ - $ - $ 0.01 Dilutive earnings per common share: Net (loss) income allocable to common shareholders $ (3,721 ) $ 84,287 $ 77,084 $ 237,132 Weighted average shares outstanding - basic 35,577,786 35,568,775 35,573,305 35,566,609 Diluted effect: Stock options - 67,571 41,516 69,000 Unvested restricted stock - 210,262 150,290 214,186 Weighted average dilutive shares outstanding 35,577,786 35,846,608 35,765,111 35,849,795 Dilutive income per common share $ - $ - $ - $ 0.01 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 Unvested restricted stock 447,000 70,000 80,000 70,000 Stock options 195,000 - - - |
Note 6 - Operating Leases (Tabl
Note 6 - Operating Leases (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | Year Amount Remainder of 2019 $ 69,738 2020 141,976 2021 144,976 2022 110,857 Total lease payments 467,547 Less: Interest (36,449 ) Net present value of lease liabilities $ 431,098 |
Operating Lease, Weighted Average Remaining Lease Terms and Discount Rates [Table Text Block] | Weighted average lease term (in months) 39 Weighted average discount rate 4.89 % |
Note 2 - Recent Accounting Pr_2
Note 2 - Recent Accounting Pronouncements (Details Textual) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Operating Lease, Right-of-Use Asset | $ 413,080 | |
Operating Lease, Liability, Current | 122,103 | |
Operating Lease, Liability, Noncurrent | $ 308,995 |
Note 3 - Significant Accounti_3
Note 3 - Significant Accounting Policies (Details Textual) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | |
Contract with Customer, Asset, after Allowance for Credit Loss, Total | $ 1,800,000 | $ 1,800,000 | ||
Product Warranty Expense (Benefit) | (40,400) | $ 40,000 | $ (40,400) | $ 40,000 |
Licensing Agreements [Member] | ||||
Finite-Lived Intangible Asset, Useful Life | 6 years | |||
Amortization of Intangible Assets, Total | $ 5,250 | $ 5,250 | $ 10,500 | $ 10,500 |
IDIQ Agreement [Member] | ADEPT Units [Member] | ||||
Units Delivered | 226 | |||
Units to be Delivered | 26 | 26 |
Note 3 - Significant Accounti_4
Note 3 - Significant Accounting Policies - Reserve for Product Warranty Activity (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Balance, beginning of the period | $ 153,723 | $ 40,000 |
Provision for product warranty | 142,000 | |
Product warranty expirations | (40,400) | |
Product warranty costs paid | (6,773) | (28,277) |
Balance, end of the period | $ 106,550 | $ 153,723 |
Note 3 - Significant Accounti_5
Note 3 - Significant Accounting Policies - Research and Development Expense (Details) - General and Administrative Expense [Member] - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Research and development cost | $ 23,649 | $ 46,262 | $ 30,095 | $ 87,081 |
Research and Development, Salaries [Member] | ||||
Research and development cost | 11,195 | 25,654 | 17,641 | 62,680 |
Research and Development, Other Costs [Member] | ||||
Research and development cost | $ 12,454 | $ 20,608 | $ 12,454 | $ 24,401 |
Note 4 - Income Tax Matters (De
Note 4 - Income Tax Matters (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Effective Income Tax Rate Reconciliation, Percent, Total | 32.00% | |||
Income Tax Expense (Benefit), Total | $ 432 | $ 40,277 | $ 37,267 | $ 109,089 |
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | $ 15,805 | $ 27,283 |
Note 5 - Income Per Share - Wei
Note 5 - Income Per Share - Weighted Average Shares Outstanding (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Net (loss) income | $ (3,721) | $ 84,287 | $ 77,084 | $ 237,132 |
Weighted average basic shares outstanding (in shares) | 35,577,786 | 35,568,775 | 35,573,305 | 35,566,609 |
Basic income per common share (in dollars per share) | $ 0.01 | |||
us-gaap_EarningsPerShareDilutedAbstract | ||||
Net (loss) income allocable to common shareholders | $ (3,721) | $ 84,287 | $ 77,084 | $ 237,132 |
Weighted average basic shares outstanding (in shares) | 35,577,786 | 35,568,775 | 35,573,305 | 35,566,609 |
us-gaap_WeightedAverageNumberDilutedSharesOutstandingAdjustmentAbstract | ||||
Stock options (in shares) | 67,571 | 41,516 | 69,000 | |
Weighted average dilutive shares outstanding (in shares) | 35,577,786 | 35,846,608 | 35,765,111 | 35,849,795 |
Dilutive income per common share (in dollars per share) | $ 0.01 | |||
Restricted Stock [Member] | ||||
us-gaap_WeightedAverageNumberDilutedSharesOutstandingAdjustmentAbstract | ||||
Stock options (in shares) | 210,262 | 150,290 | 214,186 |
Note 5 - Income Per Share - Dil
Note 5 - Income Per Share - Diluted Net Earnings (loss) Per Share (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Restricted Stock [Member] | ||||
Antidilutive shares (in shares) | 447,000 | 70,000 | 80,000 | 70,000 |
Share-based Payment Arrangement, Option [Member] | ||||
Antidilutive shares (in shares) | 195,000 |
Note 6 - Operating Leases (Deta
Note 6 - Operating Leases (Details Textual) | Jun. 30, 2019Rate |
Lessee, Operating Lease, Discount Rate | 4.89% |
Operating Lease, Provided, Rental Escalations | 2.10% |
Minimum [Member] | |
Lessee, Operating Lease, Term of Contract | 5 years 91 days |
Maximum [Member] | |
Lessee, Operating Lease, Term of Contract | 5 years 120 days |
Note 6 - Operating Leases - Mat
Note 6 - Operating Leases - Maturity Based on the Contractual Undiscounted Payments (Details) | Jun. 30, 2019USD ($) |
Remainder of 2019 | $ 69,738 |
2020 | 141,976 |
2021 | 144,976 |
2022 | 110,857 |
Total lease payments | 467,547 |
Less: Interest | (36,449) |
Net present value of lease liabilities | $ 431,098 |
Note 6 - Operating Leases - Wei
Note 6 - Operating Leases - Weighted Average Remaining Lease Terms and Discount Rates (Details) | Jun. 30, 2019 |
Weighted average lease term (Month) | 3 years 90 days |
Weighted average discount rate | 4.89% |