Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Mar. 09, 2016 | Jun. 30, 2015 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Registrant Name | ELECTRO SENSORS INC | ||
Entity Central Index Key | 351,789 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Common Stock, Shares Outstanding | 3,395,521 | ||
Entity Public Float | $ 6,700,000 | ||
Trading Symbol | ELSE |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets | ||
Cash and cash equivalents | $ 569 | $ 1,190 |
Treasury bills | 7,872 | 6,542 |
Available-for-sale securities | 0 | 1,256 |
Trade receivables, less allowance for doubtful accounts of $8 and $10, respectively | 689 | 738 |
Inventories | 1,564 | 1,224 |
Other current assets | 170 | 163 |
Deferred income tax asset, current | 14 | 0 |
Total current assets | 10,878 | 11,113 |
Deferred income tax asset | 170 | 0 |
Intangible assets, net | 1,270 | 1,505 |
Property and equipment, net | 1,103 | 1,146 |
Total assets | 13,421 | 13,764 |
Current liabilities | ||
Current maturities of note payable | 390 | 381 |
Accounts payable current | 136 | 126 |
Accrued expenses current | 396 | 392 |
Income tax payable | 4 | 82 |
Total current liabilities | 926 | 981 |
Long-term liabilities | ||
Note payable - long term | 0 | 390 |
Contingent earn-out | 455 | 472 |
Deferred income tax liability | 0 | 391 |
Total long-term liabilities | $ 455 | $ 1,253 |
Commitments and contingencies | ||
Stockholders' equity | ||
Common stock par value $0.10 per share; authorized 10,000,000 shares; 3,395,521 shares issued and outstanding | $ 339 | $ 339 |
Additional paid-in capital | 1,879 | 1,816 |
Retained earnings | 9,855 | 8,641 |
Accumulated other comprehensive income (loss) (unrealized gain (loss) on available-for-sale securities, net of income tax) | (33) | 734 |
Total stockholders' equity | 12,040 | 11,530 |
Total liabilities and stockholders' equity | $ 13,421 | $ 13,764 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Condensed Consolidated Balance Sheets [Abstract] | ||
Trade receivables, allowance for doubtful accounts | $ 8 | $ 10 |
Common stock, par value | $ 0.10 | $ 0.10 |
Common stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, shares issued | 3,395,521 | 3,395,521 |
Common stock, shares outstanding | 3,395,521 | 3,395,521 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Consolidated Statements Of Comprehensive Income [Abstract] | ||
Net Sales | $ 7,636 | $ 7,041 |
Cost of Goods Sold | 3,410 | 2,955 |
Gross Profit | 4,226 | 4,086 |
Operating Expenses | ||
Selling and marketing | 1,558 | 1,556 |
General and administrative | 1,625 | 1,329 |
Research and development | 753 | 810 |
Total Operating Expenses | 3,936 | 3,695 |
Operating Income | 290 | 391 |
Non-operating Income (Expense) | ||
Interest expense | (11) | (17) |
Gain on sale of available-for-sale securities | 1,449 | 1,163 |
Interest income | 0 | 2 |
Other income | 16 | 15 |
Total Non-operating Income, Net | 1,454 | 1,163 |
Income before Income Taxes | 1,744 | 1,554 |
Income taxes | 530 | 460 |
Net Income | 1,214 | 1,094 |
Other Comprehensive Loss | ||
Change in unrealized value of available-for-sale securities, net of income tax | 131 | (176) |
Reclassification of gains included in net income, net of income tax | (898) | (721) |
Other Comprehensive Loss | (767) | (897) |
Net Comprehensive Income | $ 447 | $ 197 |
Basic | ||
Net income per share | $ 0.36 | $ 0.32 |
Weighted average shares | 3,395,521 | 3,395,510 |
Diluted | ||
Net income per share | $ 0.33 | $ 0.30 |
Weighted average shares | 3,653,021 | 3,654,382 |
Consolidated Statements Of Chan
Consolidated Statements Of Changes In Stockholders' Equity - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total |
Beginning Balance at Dec. 31, 2013 | $ 339 | $ 1,746 | $ 7,547 | $ 1,631 | $ 11,263 |
Beginning Balance, Shares at Dec. 31, 2013 | 3,394,707 | ||||
Other Comprehensive Loss | (897) | (897) | |||
Stock issued through the employee stock purchase plan | $ 0 | 3 | 3 | ||
Stock issued through the employee stock purchase plan, shares | 814 | ||||
Stock based compensation expense | 67 | 67 | |||
Net income | 1,094 | 1,094 | |||
Ending Balance at Dec. 31, 2014 | $ 339 | 1,816 | 8,641 | 734 | 11,530 |
Ending Balance, Shares at Dec. 31, 2014 | 3,395,521 | ||||
Other Comprehensive Loss | (767) | (767) | |||
Stock based compensation expense | 63 | 63 | |||
Net income | 1,214 | 1,214 | |||
Ending Balance at Dec. 31, 2015 | $ 339 | $ 1,879 | $ 9,855 | $ (33) | $ 12,040 |
Ending Balance, Shares at Dec. 31, 2015 | 3,395,521 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from (used in) operating activities | ||
Net income | $ 1,214 | $ 1,094 |
Adjustments to reconcile net income to net cash from (used in) operating activities: | ||
Depreciation and amortization | 348 | 209 |
Realized gain on sale of available-for-sale securities | (1,449) | (1,163) |
Deferred income taxes | (104) | (81) |
Change in contingent earn-out fair value | (17) | 0 |
Stock-based compensation expense | 63 | 67 |
Other | (1) | 1 |
Change in operating assets and liabilities, net of acquisition: | ||
Trade receivables | 51 | 6 |
Inventories | (340) | (164) |
Current assets, other | (7) | 18 |
Accounts payable | 10 | 67 |
Accrued expenses | 4 | 127 |
Accrued income taxes | (78) | 82 |
Net cash from (used in) operating activities | (306) | 263 |
Cash flows from (used in) investing activities | ||
Proceeds from sale of available-for-sale securities | 1,467 | 1,178 |
Purchase of treasury bills | (12,674) | (14,184) |
Proceeds from the maturity of treasury bills | 11,343 | 12,871 |
Cash paid for acquisition | 0 | (400) |
Purchase of property and equipment | (70) | (46) |
Net cash from (used in) investing activities | 66 | (581) |
Cash flows from (used in) financing activities | ||
Proceeds from issuance of common stock | 0 | 3 |
Payments on long-term debt | (381) | 0 |
Net cash from (used in) financing activities | (381) | 3 |
Net decrease in cash and cash equivalents | (621) | (315) |
Cash and cash equivalents, beginning | 1,190 | 1,505 |
Cash and cash equivalents, ending | 569 | 1,190 |
Supplemental cash flow information | ||
Cash paid during the year for income taxes | 712 | 462 |
Cash paid during the year for interest | 19 | 0 |
Supplemental disclosures of non-cash investment and financing activities | ||
Note payable issued to fund acquisition, net of discount | 0 | 771 |
Contingent earn-out recorded at fair value in connection with the acquisition | $ 0 | $ 472 |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
Dec. 31, 2015 | |
Nature Of Business And Significant Accounting Policies [Abstract] | |
Basis Of Presentation | Note 1. Nature of Business and Significant Accounting Policies Nature of business: The accompanying consolidated financial statements include the accounts of Electro-Sensors, Inc. and its wholly-owned subsidiaries, ESI Investment Company and Senstar Corporation. Senstar has no assets or operations. As of December 31, 2015, these two subsidiaries were merged into the Electro-Sensors, Inc. parent company. Intercompany accounts, transactions and earnings have been eliminated in consolidation. The consolidated entity is referred to as “the Company” or “ESI”. Electro-Sensors, Inc. manufactures and markets a complete line of monitoring and control systems for a variety of industrial machinery. The Company uses leading-edge technology to continuously improve its products and make them easier to use, with the ultimate goal of manufacturing the industry-preferred product for every market served. The Company sells these products through an internal sales staff, manufacturer’s representatives, and distributors to a wide variety of industries that use the products in a range of applications to monitor process machinery operations. The Company markets its products to a variety of different industries located throughout the United States, Canada, Mexico, Latin America, Europe, and Asia. In addition, through our former subsidiary ESI Investment Company, we periodically ma d e strategic investments in other businesses, primarily when we believe d that thes e investments w ou l d facilitate the development of technology complementary to our existing products. During 2015, we sold substantially all our remaining investments in other businesses and companies. See Note 3 for additional information regarding the Company’s investments. The Company’s investments in securities are subject to normal market risks. Significant accounting policies of the Company are summarized below: Use of estimates The preparation of consolidated financial statements in accordance with accounting principles generally accepted in the United States of America (US GAAP) requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Significant estimates, including the underlying assumptions, consist of the economic lives of long lived assets, realizability of trade receivable s , valuation of deferred tax assets/liabilities, inventory, investments, contingent earn-out, and stock compensation expense. It is at least reasonably possible that these estimates may change in the near term. Cash and cash equivalents The Company considers all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents. Cash equivalents are invested in commercial paper, money market accounts and may , also , be invested in three month Treasury Bills. Cash equivalents are carried at cost plus accrued interest which approximates fair value. The Company maintains its cash and cash equivalents in primarily one bank deposit account, which, at times, may exceed federally insured limits. The Company has not experienced any losses on these accounts. The Company believes it is not exposed to any significant credit risk on cash. Trade receivables and credit policies Trade receivables are uncollateralized customer obligations due under normal trade terms generally requiring payment within 30 days from the invoice date. Trade receivables are stated at the amount billed to the customer. Customer account balances with invoices over 90 days are considered delinquent. The Company does not accrue interest on delinquent trade receivables. Payments of trade receivables are allocated to the specific invoices identified on the customer’s remittance advice or, if unspecified, are applied to the earliest unpaid invoices. The carrying amount of trade receivables is reduced by an allowance for doubtful accounts that reflects management’s best estimate of the amounts that will not be collected. Management individually reviews all trade receivable balances that exceed 90 days from the invoice date and based on an assessment of current creditworthiness, estimates the portion, if any, of the balance that may not be collected. Management uses this information to estimate the allowance. Available-for-sale securities The Company’s investments have traditionally consist ed of equity securities, primarily common stocks and government debt securities. The estimated fair value of publicly traded equity securities is based on reported market prices or management’s reasonable market price when quoted prices are not available , and therefore subject to the inherent risk of market fluctuations. Management determines the appropriate classification of securities at the date individual investments are acquired, and evaluates the appropriateness of this classification at each balance sheet date. Since the Company generally does not make investments in anticipation of short-term fluctuations in market price, the Company classifies its investments in equity securities and treasury bills as available-for-sale. Available-for-sale securities with readily determinable values are stated at fair value, and unrealized holding gains and losses, net of the related deferred tax effect, are reported as a separate component of stockholders’ equity and within accumulated other comprehensive income (loss) . Realized gains and losses on securities , including losses from declines in value of specific securities determined by management to be other-than-temporary, are included in the statement of comprehensive income. Realized gains and losses are determined on the basis of the specific securities sold. There were no other-than-temporary impairments recognized in the years ended December 31, 201 5 and 201 4 . The Company sold substantially all of its available-for-sale securities during 2015. Fair value measurements The Company’s policies incorporate the guidance for accounting for fair value measurements of financial assets and financial liabilities and for fair value measurements of nonfinancial items that are recognized or disclosed at fair value in the consolidated financial statements on a recurring basis. These policies also incorporate the guidance for fair value measurement related to nonfinancial items that are recognized and disclosed at fair value in the consolidated financial statements on a nonrecurring basis. The guidance establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to measurements involving significant unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows: · Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. · Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. · Level 3 inputs are unobservable inputs for the asset or liability. The level in the fair value hierarchy within which a fair measurement in its entirety falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company currently has no nonfinancial or financial items that are measured on a nonrecurring basis. The carrying value of cash equivalents, trade receivables, accounts payable, and other financial working capital items approximate fair value at December 31, 201 5 and 201 4 due to the short term maturity nature of these instruments. Inventories Inventories include material, labor and overhead and are valued at the lower of cost (first-in, first-out) or market. Property and equipment Property and equipment are stated at cost. Depreciation is provided over estimated useful lives by use of the straight-line method. Maintenance and repairs are expensed as incurred. Major improvements and betterments are capitalized. Long-lived assets, such as property and equipment and intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset be tested for possible impairment, the Company first compares undiscounted cash flows expected to be generated by an asset to the carrying value of the asset. If the carrying value of the long-lived asset is not recoverable on an undiscounted cash flow basis, the Company recognizes impairment to the extent that the carrying value of an asset exceeds its fair value. Fair value is determined through various valuation techniques including, but not limited to, discounted cash flow models, quoted market values and third-party independent appraisals. Estimated useful lives are as follows Years Equipment 3-10 Furniture and Fixtures 3-10 Building 7-40 Intangible assets Intangible assets are comprised of a noncompete agreement and the HazardPRO TM technology. The Company amortizes the cost of these intangible assets on a straight-line method over the estimated useful lives. Revenue recognition The Company recognizes revenue when persuasive evidence of an arrangement exists, the product has been picked up by common carrier, the fee is fixed and determinable and collection of the resulting receivable is reasonably assured. Product revenue s are recognized upon shipment because the contracts generally do not include post-shipment obligations. The Company may offer discounts that it record s at the time of sale. In addition to exchanges and warranty returns, customers have limited refund rights. Historically, returns have been minimal and immaterial to the consolidated financial statements and are generally recognized when the returned product is received by the Company. In some situations, the Company receives advance payments from its customers. The Company defers the recognition of revenue associated with these advance payments until the product ships. Advertising costs The Company expenses advertising costs as incurred. Total advertising expense was $ 56 and $ 57 in fiscal 2015 and 2014, respectively. Research and development Expenditures for research and development are expensed as incurred. The Company incurred expenses of $ 753 and $ 810 in fiscal 2015 and 2014, respectively. Income taxes The Company presents d eferred income taxes on an asset and liability approach to financial accounting and reporting for income taxes. The Company annually determines the difference between the financial reporting and tax bases of assets and liabilities. The company computes d eferred income tax assets and liabilities for those differences that have future tax consequences using the currently enacted tax laws and rates that apply to the periods in which the se laws are expected to affect taxable income. Income tax expense is the current tax payable or refundable for the period plus or minus the net change in the deferred tax assets and liabilities, excluding the portion of the deferred asset or liability allocated to other comprehensive income (loss) . Deferred taxes are reduced by a valuation allowance to the extent that realization of the related deferred tax asset is not assured. No valuation allowance was deemed necessary at December 31, 2015 and 2014 . The Company recognizes the effect of income tax positions only if those positions are more likely than not to be sustained. The Company r ecognized income tax positions at the largest amount that is more likely than not to be realized. The C ompany reflects c hanges in recognition or measurement in the period in which the change in judgment occurs. The Company records interest and penalties related to unrecognized tax benefits in income tax expense. Net income per common share Basic earnings per share ( EPS ) excludes dilution and is determined by dividing net income by the weighted average number of common shares outstanding during the period. Diluted EPS reflects the potential dilution that could occur if securities and other contracts to issue common stock were exercised or converted into common stock. The following information presents the Company’s computations of basic and diluted EPS for the periods presented in the statements of comprehensive income. Income Shares Per share amount 2015: Basic EPS $ 1,214 3,395,521 $ 0.36 Effect of dilutive stock options 257,500 (0.03) Diluted EPS $ 1,214 3,653,021 $ 0.33 2014: Basic EPS $ 1,094 3,395,510 $ 0.32 Effect of dilutive stock options 258,872 (0.02) Diluted EPS $ 1,094 3,654,382 $ 0.30 Stock -based compensation The Company records compensation expense for stock options based on the estimated fair value of the options on the date of grant using the Black-Scholes-Merton (“BSM”) model. The Company uses historical data, among other factors, to estimate the expected price volatility, the expected option life and the expected forfeiture rate. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant for the estimated life of the option. At December 31, 2015, the Company had two stock-based compensation plans. Recently Issued Accounting Pronouncements Inventory Measurement (Evaluating) In July 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2015-11, which amended Inventory (Topic 330) Related to Simplifying the Measurement of Inventory of the Accounting Standards Codification. The amended guidance applies to all inventory except that which is measured using last-in, first-out (LIFO) or the retail inventory method. Inventory measured using first-in, first-out (FIFO) or average cost is included in the new amendments. Inventory within the scope of the new guidance should be measured at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Subsequent measurement is unchanged for inventory measured using LIFO or the retail inventory method. The amendments will take effect for public business entities for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. For all other entities, the amendments in this update are effective for fiscal years beginning after December 15, 2016, and interim periods within fiscal years beginning after December 15, 2017. The new guidance should be applied prospectively, and earlier application is permitted as of the beginning of an interim or annual reporting period. The Company does not expect this standard to have a material effect on its consolidated financial statements. Contract Revenue Recognition (Evaluating) In May 2014, the FASB issued Accounting Standards Update (ASU) No. 2014-09 which was amended in August 2015. This standard amended the Revenue from Contracts with Customers (Topic 606) of the Accounting Standards Codification. The core principle of the new guidance is that an entity should recognize revenue to reflect the transfer of goods and services to customers in an amount equal to the consideration the entity receives or expects to receive. The guidance will be effective for the Company for reporting periods beginning after December 15, 2017. The Company will apply the guidance using a modified retrospective approach. The Company does not expect this standard to have a material effect on its consolidated financial statements. |
Business Combination
Business Combination | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Business Combination | Note 2. Business Combination On February 18, 2014, the Company acquired Harvest Engineering, Inc.’s wireless hazard monitoring technology system and Insta-Link product family, together with related technology and intellectual property rights, for a total purchase price of $1,643 . The fair value of the consideration transferred on the acquisition date consisted of the following: Cash consideration $ 400 Note payable issued to seller (Note 9) 771 Contingent earn-out liability 472 Total consideration $ 1,643 The transaction was recorded as a business combination and the results of operations have been included in the consolidated statement of comprehensive income since the date of acquisition. Acquisition fees of approximately $15 incurred in connection with the transaction were recorded in operating expenses in 2014. In connection with the acquisition, the Company is obligated to pay an earn-out of up to $550 based upon the level of revenues generated from the acquired products during the four calendar years following closing. At the time of acquisition, the Company recorded a contingent liability of $472 representing the fair value estimate of the earn-out based upon the Company’s projected likelihood of meeting the revenue targets. The following table summarizes the estimated fair value of the assets acquired at the acquisition date: In process research and development $ 1,478 Noncompete agreement 120 Deferred service costs 45 Total assets acquired $ 1,643 The noncompete agreement is being amortized over a five -year period. The fair value of the noncompete agreement was estimated using a discounted cash flow model. The unobservable inputs are considered Level 3 inputs in the fair value hierarchy. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2015 | |
Investments [Abstract] | |
Investments | Note 3. Investments The cost and estimated fair value of the investments are as follows: Gross Gross Fair unrealized unrealized value Cost gain loss December 31, 2015 Money Market Funds $ 246 $ 0 $ 0 $ 246 Commercial Paper 247 0 0 247 Treasury Bills 7,876 0 (4) 7,872 Equity Securities 54 0 (54) 0 8,423 0 (58) 8,365 Less Cash Equivalents 493 0 0 493 Total Investments, December 31, 2015 $ 7,930 $ 0 $ (58) $ 7,872 December 31, 2014 Money Market Funds $ 510 $ 0 $ 0 $ 510 Commercial Paper 345 0 0 345 Treasury Bills 6,542 0 0 6,542 Equity Securities 72 1,238 (54) 1,256 7,469 1,238 (54) 8,653 Less Cash Equivalents 855 0 0 855 Total Investments, December 31, 2014 $ 6,614 $ 1,238 $ (54) $ 7,798 Realized gains and losses on investments are as follows: Years Ended December 31, 2015 2014 Gross Realized Gains $ 1,449 $ 1,163 Gross Realized Losses 0 0 Net Realized Gain $ 1,449 $ 1,163 At December 31, 2014, the Company’s significant investment in equity securities was 1 22 , 649 shares of Rudolph Technologies, Inc. (“Rudolph”) accounted for under the available-for-sale method. As of December 31, 2014, the aggregate value of the Company’s Rudolph shares as reported on the Nasdaq Stock Exchange (ticker symbol RTEC) was approximately $ 1,254 , with an approximate cost of $ 16 . During fiscal 2015 and 2014, the Company sold 1 22,649 and 108 , 687 shares, respectively, of Rudolph stock and reported a gain of $1,447 and $1,163 , respectively, in other income. Changes in Accumulated Other Comprehensive Income (Loss) Changes in Accumulated Other Comprehensive Income (Loss) are as follows: December 31, 2015 2014 Unrealized Gains (Losses) Unrealized holding gains (losses) arising during the period $ 211 $ (284) Less: Reclassification of gains included in net income (1,449) (1,163) (1,238) (1,447) Deferred Taxes on Unrealized Gains (Losses): Increase (decrease) in deferred taxes on unrealized gains (losses) arising during the period 80 (108) Less: Reclassification of taxes on gains included in net income (551) (442) (471) (550) Net Change in Accumulated Other Comprehensive Income (Loss) $ (767) $ (897) |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | Note 4. Fair Value Measurements The following table provides information on those assets and liabilities measured at fair value on a recurring basis. December 31 ,2015 Carrying amount in consolidated Fair Value Measurement Using balance sheet Fair Value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents: Money market $ 246 $ 246 $ 246 $ 0 $ 0 Commercial paper 247 247 247 0 0 Treasury bills 7,872 7,872 7,872 0 0 Liabilities: Contingent earn-out 455 455 0 0 455 December 31 ,2014 Carrying amount in consolidated Fair Value Measurement Using balance sheet Fair Value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents: Money market $ 510 $ 510 $ 510 $ 0 $ 0 Commercial paper 345 345 345 0 0 Treasury bills 6,542 6,542 6,542 0 0 Available-for-sale: Equities: Small cap technology sector 1,256 1,256 1,256 0 0 Liabilities: Contingent earn-out 472 472 0 0 472 The fair value of the money market funds, commercial paper, and treasury bills is based on quoted market prices in an active market. Available-for-sale securities include equity securities, except for the limited-marketable company, that are traded in an active market. Closing stock prices are readily available from active markets and are used as being representative of fair value. The Company classifies these securities as level 1. There is an insignificant market for the limited-marketable company and the Company has determined the value based on financial and other factors, which are considered level 3 inputs in the fair value hierarchy. Management estimated the probability of meeting the revenue targets over the measurement period to determine the fair value of the contingent earn-out, which is considered a level 3 input in the fair value hierarchy. The change in level 3 liabilities at fair value on a recurring basis is summarized as follows: December 31, 2015 2014 Beginning Balance 472 0 Additions (Note 2) 0 472 Charge to earnings (17) 0 Ending Balance 455 472 The decrease in the contingent earn-out, in 2015, reflects the Company’s expectation of moderately lower future contingent payments due to delays in releasing the product due to development and obtaining third-party certifications. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2015 | |
Inventories [Abstract] | |
Inventories | Note 5. Inventories Inventories used in the determination of cost of goods sold are as follows: December 31, 2015 2014 Raw Materials $ 956 $ 729 Work In Process 297 263 Finished Goods 311 232 Total Inventories $ 1,564 $ 1,224 |
Property And Equipment
Property And Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Property And Equipment [Abstract] | |
Property And Equipment | Note 6. Property and Equipment, Net The following is a summary of property and equipment: December 31, 2015 2014 Equipment $ 285 $ 266 Furniture and Fixtures 410 380 Building 1,365 1,365 Land 415 415 2,475 2,426 Less Accumulated Depreciation 1,372 1,280 Total Property and Equipment $ 1,103 $ 1,146 Depreciation expense for the years ended December 31, 201 5 and 201 4 was $ 11 3 and $ 1 1 6 , respectively. |
Net Intangible Assets
Net Intangible Assets | 12 Months Ended |
Dec. 31, 2015 | |
Finite-Lived Intangible Assets, Net [Abstract] | |
Net Intangible Assets | Note 7. Net Intangible Assets Intangible assets include the following: December 31, 2015 Average Useful Lives Gross Carrying Amount Accumulated Amortization Net Carrying Amount Noncompete 5 Years $ 120 $ 46 $ 74 Technology 7 Years 1,478 282 1,196 Net Intangible Assets 1,598 328 1,270 December 31, 2014 Average Useful Lives Gross Carrying Amount Accumulated Amortization Net Carrying Amount Noncompete 5 Years $ 120 $ 22 $ 98 Technology 7 Years 1,478 71 1,407 Net Intangible Assets 1,598 93 1,505 Amortization expense for the years ended December 31, 2015 and 2014 was $235 and $ 93 , respectively. Estimated amortization expense over the next five years is as follows: 2016 $ 235 2017 235 2018 235 2019 213 2020 211 |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Dec. 31, 2015 | |
Accrued Expenses [Abstract] | |
Accrued Expenses | Note 8. Accrued Expenses Accrued expenses include the following: December 31, 2015 2014 Wages and Commissions $ 272 $ 276 Other 124 116 Total Accrued Expenses $ 396 $ 392 |
Note Payable
Note Payable | 12 Months Ended |
Dec. 31, 2015 | |
Note Payable [Abstract] | |
Notes Payable | Note 9. Note Payable The note payable consists of the following: December 31, 2015 2014 Note payable to seller $ 400 $ 800 Payable in annual installments of principal of $400, with a maturity date of February 2016 . This note is non-interest bearing and unsecured. Less: Discount of note payable listed above (10) (29) Net note payable 390 771 Less: Current maturities 390 381 Note Payable – Long Term $ 0 $ 390 |
Commitments
Commitments | 12 Months Ended |
Dec. 31, 2015 | |
Commitments [Abstract] | |
Commitments | Note 10. Commitments Lease commitments The Company is leasing office equipment under an operating lease expiring in 2017. Minimum lease payments required under non-cancelable operating leases are as follows: Year Amount 2016 $ 8 2017 3 Total Minimum Lease Payments $ 11 Rental expense charged to operations was $8 and $21 for the years ended December 31, 2015 and 2014, respectively. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2015 | |
Stock-Based Compensation [Abstract] | |
Stock-Based Compensation | Note 11. Common Stock Options and Stock Purchase Plan Stock options The 1997 Stock Option Plan (the “1997 Plan”) and 2013 Equity Incentive Plan (the “2013 Plan”) authorize the issuance of both nonqualified and incentive stock options. Payment for the shares may be made in cash, shares of the Company’s common stock or a combination thereof. Under the terms of the plans, incentive stock options and non-qualified stock options are granted at a minimum of 100 % of fair market value on the date of grant and may be exercised at various times depending upon the terms of the option. All existing options expire 10 years from the date of grant or one year from the date of death. Stock-based compensation Pursuant to the 2013 Plan, the Company is authorized to grant options to purchase up to 300,000 shares of its common stock. As of December 31, 2015, options to purchase an aggregate of 250,000 shares were outstanding, 165,000 shares were exercisable under the 2013 Plan, and 50,000 shares were available for issuance pursuant to awards that may be granted under the plan in the future. Pursuant to the 1997 Plan, the Company was authorized to grant options to purchase up to 450,000 shares of its common stock. As of December 31, 2015, options to purchase an aggregate of 7,500 shares were outstanding and exercisable under the 1997 Plan. The board terminated the plan in 2014. The existing grants may be exercised according to the terms of the grant agreements but no additional options will be granted under the 1997 Plan. During the year ended December 31, 2014, options to purchase 11,980 shares of common stock expired for four employees. The following table summarizes the activity for outstanding incentive stock options under the 2013 Plan to employees of the company: Options Outstanding Number of Weighted- Weighted- Aggregate Shares Average Average Intrinsic Value Exercise Remaining (1) Price Contractual Term (in years) Balance at January 1, 2014 61,980 $ 4.20 9.7 Granted 0 Exercised 0 Canceled/forfeited/expired (11,980) (4.16) Balance at December 31, 2014 50,000 4.21 8.6 Granted 0 Exercised 0 Canceled/forfeited/expired 0 Balance at December 31, 2015 50,000 $ 4.21 7.6 Vested and exercisable as of December 31, 2015 50,000 $ 0 (1) The aggregate intrinsic value is calculated as approximately the difference between the weighted average exercise price of the underlying awards and the Company’s estimated current fair market value at December 31, 2015. During the second quarter of 2014, the Company granted one outside director options to purchase 25,000 shares of common stock. The options were priced above fair market value and vested 20% on the grant date, with an additional 20% vesting on the first four anniversaries of the grant date. The options expire ten years from the date of grant. During the year ended December 31, 201 4 , one former outside director forfeited options to purchase 2 , 5 00 shares of common stock. The following table summarizes the activity for outstanding director stock options under both plans: Options Outstanding Number of Weighted- Weighted- Aggregate Shares Average Average Intrinsic Value Exercise Remaining (1) Price Contractual Term (in years) Balance at January 1, 2014 185,000 $ 4.64 9.5 Granted 25,000 4.39 10.0 Exercised 0 Canceled/forfeited/expired (2,500) (4.15) Balance at December 31, 2014 207,500 4.62 8.4 Granted 0 Exercised 0 Canceled/forfeited/expired 0 Balance at December 31, 2015 207,500 $ 4.62 7.4 Vested and exercisable as of December 31, 2015 122,500 $ 0 (1) The aggregate intrinsic value is calculated as approximately the difference between the weighted average exercise price of the underlying awards and the Company’s estimated current fair market value at December 31, 2015. The weighted average grant date fair value of options granted during the year ended December 31, 2014 was $35 . The Company recogniz ed compensation expense of approximately $ 63 and $ 67 during the years ended December 31, 2015 and 2014, respectively, in connection with the issuance of the options . The assumptions made in estimating the fair value of the options on the grant date based upon the BSM option-pricing model for the year ended December 31, 2014 are as follows: Dividend yield 0.00% Expected volatility 44.11% Risk free interest rate 2.02% Expected life 6 Years The Company calculates expected volatility for stock options and other awards using historical volatility as the Company believes the expected volatility will approximate historical volatility. There were no options exercised during the years ended December 31, 2015 and 2014. As of December 31, 2015, there was approximately $ 109 of unrecognized compensation expense under the 2013 Plan. The Company expects to recognize this expense over the next three years. To the extent the forfeiture rate is different than we have anticipated, stock-based compensation related to these awards will be different from our expectations. Stock purchase plan The 1996 Employee Stock Purchase Plan (the “ESPP”) allowed employees to set aside up to 10 % of their earnings for the purchase of shares of the Company’s common stock. The purchase price was the lower of 85 % of the market value at the date of the grant or the exercise date, which was six months from the date of the grant. Under the ESPP, the Company was authorized to sell and issue up to 150,000 shares of its common stock to its full-time employees. There were 81,653 shares issued under the plan. The plan was terminated effective January 1, 2014. |
Benefit Plans
Benefit Plans | 12 Months Ended |
Dec. 31, 2015 | |
Benefit Plans [Abstract] | |
Benefit Plans | Note 12. Benefit Plans Employee stock ownership plan The Company sponsors an employee stock ownership plan (“ESOP”) that covers substantially all employees who work 1,000 or more hours during the year. The ESOP has, at various times, secured financing from the Company to purchase the Company’s shares on the open market. When the Plan purchases shares with the proceeds of the Company loans, the shares are pledged as collateral for these loans. The shares are maintained in a suspense account until released and allocated to participant accounts. The Plan owns 153,457 shares of the Company’s stock at December 31, 2015. All shares held by the Plan have been released and allocated. No dividends were paid during the years ended December 31, 2015 and 2014. The Plan had no debt to the Company at December 31, 2015 or 2014. The Company recognized compensation expense for contributions of $24 and $ 18 , respectively, to the ESOP plan in 2015 and 2014. In the event a terminated ESOP participant desires to sell his or her shares of the Company’s stock and the shares are not readily tradable, the Company may be required to purchase the shares from the participant at fair market value. In addition, the Company may distribute the ESOP’s shares to the terminated participant at the Company’s election. At December 31, 2015, 153,457 shares of the Company’s stock, with an aggregate fair market value of approximately $ 549 , are held by ESOP participants who, if terminated, would have rights under the repurchase provisions. The Company believes that the market for its shares meets the ESOP requirements and that there would not be a current obligation to repurchase shares. Profit sharing plan and savings plan The Company has a salary reduction and profit sharing plan that conforms to IRS provisions for 401(k) plans. The Company may make profit sharing contributions with the approval of the Board of Directors. There were no profit sharing contributions by the Company in 2015 or 2014 . |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Taxes [Abstract] | |
Income Taxes | Note 13. Income Taxes The components of the income tax provision for the years ended December 31, 2015 and 2014 are as follows: 2015 2014 Current: Federal $ 633 $ 540 State 1 1 Deferred: Federal (101) (60) State (3) (21) Total Federal and State Income Taxes $ 530 $ 460 The provision for income taxes for the years ended December 31, 2015 and 2014 differs from the amount obtained by applying the U.S. federal income tax rate to pretax income due to the following: 2015 2014 Computed “Expected” Federal Tax Expense $ 601 $ 529 Increase (Decrease) in Taxes Resulting From: State Income Taxes, net of Federal Benefit 10 10 Credits (43) (47) Domestic Production Activities Deduction (22) (17) Permanent Differences 5 4 Other (21) (19) Total Federal and State Income Taxes $ 530 $ 460 The components of the net deferred tax asset (liability) consist of: 2015 2014 Deferred Tax Assets: Vacation Accrual $ 34 $ 33 Allowance for Doubtful Accounts 3 4 Stock Compensation 102 80 Bonus 10 0 Depreciation and Amortization 1 0 Net Unrealized Loss on Investments 21 0 State Carryforward R&D Credit 46 31 Total Deferred Tax Assets $ 217 $ 148 Deferred Tax Liabilities: Prepaid Expenses $ 33 $ 35 Depreciation and Amortization 0 54 Net Unrealized Gain on Investments 0 450 Total Deferred Tax Liabilities $ 33 $ 539 Net Deferred Tax Asset (Liability) $ 184 $ (391) Deferred assets and liabilities are reported on the balance sheet as follows: 2015 2014 Deferred Tax Assets: Current $ 14 0 Long-term 170 0 Total Deferred Tax Assets $ 184 $ 0 Deferred Tax Liabilities: Long-term $ 0 $ 391 The Company is subject to the following material taxing jurisdictions: U.S. and Minnesota. The tax years that remain open to examination by the Internal Revenue Service and state jurisdictions are 2012 through 2015. We have no accrued interest or penalties related to uncertain tax positions as of January 1, 2015 or December 31, 2015 and uncertain tax positions are not significant. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2015 | |
Segment Information [Abstract] | |
Segment Information | Note 14. Segment Information As of December 31, 2015, the Company has two reportable operating segments: Production Monitoring and Investments. The Production Monitoring Division manufactures and markets a complete line of production monitoring equipment, in particular speed monitoring and motor control systems for industrial machinery. ESI Investment Company holds investments in marketable and non-marketable securities. The accounting policies of the segments are the same as those described in Note 1. In evaluating segment performance, management focuses on sales and income before taxes. The Company has no inter-segment sales. The following is financial information relating to the continuing operating segments: 2015 2014 Net revenues Production Monitoring $ 7,636 $ 7,041 Total 7,636 7,041 Sales in foreign countries Production Monitoring 972 973 Total 972 973 Interest income Production Monitoring 0 0 ESI Investment Company 0 2 Total 0 2 Depreciation and amortization expense Production Monitoring 348 209 Total 348 209 Interest expense Production Monitoring 11 17 Total 11 17 Capital purchases Production Monitoring 70 46 Total 70 46 Total assets Production Monitoring 4,998 4,945 ESI Investment Company 8,423 8,819 Total 13,421 13,764 Income before income taxes Production Monitoring 295 389 ESI Investment Company 1,449 1,165 Total 1,744 1,554 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 15. Subsequent Events On February 9, 2016, the Board of Directors approved a stock option grant of 50,000 shares for the Company’s president. The options vest 20% immediately and 20% on each of the next four anniversaries of the grant. The options were priced at the fair market value on the date of grant. |
Basis Of Presentation (Policy)
Basis Of Presentation (Policy) | 12 Months Ended |
Dec. 31, 2015 | |
Nature Of Business And Significant Accounting Policies [Abstract] | |
Nature Of Business | Nature of business: The accompanying consolidated financial statements include the accounts of Electro-Sensors, Inc. and its wholly-owned subsidiaries, ESI Investment Company and Senstar Corporation. Senstar has no assets or operations. As of December 31, 2015, these two subsidiaries were merged into the Electro-Sensors, Inc. parent company. Intercompany accounts, transactions and earnings have been eliminated in consolidation. The consolidated entity is referred to as “the Company” or “ESI”. Electro-Sensors, Inc. manufactures and markets a complete line of monitoring and control systems for a variety of industrial machinery. The Company uses leading-edge technology to continuously improve its products and make them easier to use, with the ultimate goal of manufacturing the industry-preferred product for every market served. The Company sells these products through an internal sales staff, manufacturer’s representatives, and distributors to a wide variety of industries that use the products in a range of applications to monitor process machinery operations. The Company markets its products to a variety of different industries located throughout the United States, Canada, Mexico, Latin America, Europe, and Asia. In addition, through our former subsidiary ESI Investment Company, we periodically ma d e strategic investments in other businesses, primarily when we believe d that thes e investments w ou l d facilitate the development of technology complementary to our existing products. During 2015, we sold substantially all our remaining investments in other businesses and companies. See Note 3 for additional information regarding the Company’s investments. The Company’s investments in securities are subject to normal market risks. |
Use Of Estimates | Use of estimates The preparation of consolidated financial statements in accordance with accounting principles generally accepted in the United States of America (US GAAP) requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Significant estimates, including the underlying assumptions, consist of the economic lives of long lived assets, realizability of trade receivable s , valuation of deferred tax assets/liabilities, inventory, investments, contingent earn-out, and stock compensation expense. It is at least reasonably possible that these estimates may change in the near term. |
Cash And Cash Equivalents | Cash and cash equivalents The Company considers all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents. Cash equivalents are invested in commercial paper, money market accounts and may , also , be invested in three month Treasury Bills. Cash equivalents are carried at cost plus accrued interest which approximates fair value. The Company maintains its cash and cash equivalents in primarily one bank deposit account, which, at times, may exceed federally insured limits. The Company has not experienced any losses on these accounts. The Company believes it is not exposed to any significant credit risk on cash. |
Trade Receivables And Credit Policies | Trade receivables and credit policies Trade receivables are uncollateralized customer obligations due under normal trade terms generally requiring payment within 30 days from the invoice date. Trade receivables are stated at the amount billed to the customer. Customer account balances with invoices over 90 days are considered delinquent. The Company does not accrue interest on delinquent trade receivables. Payments of trade receivables are allocated to the specific invoices identified on the customer’s remittance advice or, if unspecified, are applied to the earliest unpaid invoices. The carrying amount of trade receivables is reduced by an allowance for doubtful accounts that reflects management’s best estimate of the amounts that will not be collected. Management individually reviews all trade receivable balances that exceed 90 days from the invoice date and based on an assessment of current creditworthiness, estimates the portion, if any, of the balance that may not be collected. Management uses this information to estimate the allowance. |
Available For Sale Securities | Available-for-sale securities The Company’s investments have traditionally consist ed of equity securities, primarily common stocks and government debt securities. The estimated fair value of publicly traded equity securities is based on reported market prices or management’s reasonable market price when quoted prices are not available , and therefore subject to the inherent risk of market fluctuations. Management determines the appropriate classification of securities at the date individual investments are acquired, and evaluates the appropriateness of this classification at each balance sheet date. Since the Company generally does not make investments in anticipation of short-term fluctuations in market price, the Company classifies its investments in equity securities and treasury bills as available-for-sale. Available-for-sale securities with readily determinable values are stated at fair value, and unrealized holding gains and losses, net of the related deferred tax effect, are reported as a separate component of stockholders’ equity and within accumulated other comprehensive income (loss) . Realized gains and losses on securities , including losses from declines in value of specific securities determined by management to be other-than-temporary, are included in the statement of comprehensive income. Realized gains and losses are determined on the basis of the specific securities sold. There were no other-than-temporary impairments recognized in the years ended December 31, 201 5 and 201 4 . The Company sold substantially all of its available-for-sale securities during 2015. |
Fair Value Measurements | Fair value measurements The Company’s policies incorporate the guidance for accounting for fair value measurements of financial assets and financial liabilities and for fair value measurements of nonfinancial items that are recognized or disclosed at fair value in the consolidated financial statements on a recurring basis. These policies also incorporate the guidance for fair value measurement related to nonfinancial items that are recognized and disclosed at fair value in the consolidated financial statements on a nonrecurring basis. The guidance establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to measurements involving significant unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows: · Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. · Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. · Level 3 inputs are unobservable inputs for the asset or liability. The level in the fair value hierarchy within which a fair measurement in its entirety falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company currently has no nonfinancial or financial items that are measured on a nonrecurring basis. The carrying value of cash equivalents, trade receivables, accounts payable, and other financial working capital items approximate fair value at December 31, 201 5 and 201 4 due to the short term maturity nature of these instruments. |
Inventories | Inventories Inventories include material, labor and overhead and are valued at the lower of cost (first-in, first-out) or market. |
Property And Equipment | Property and equipment Property and equipment are stated at cost. Depreciation is provided over estimated useful lives by use of the straight-line method. Maintenance and repairs are expensed as incurred. Major improvements and betterments are capitalized. Long-lived assets, such as property and equipment and intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset be tested for possible impairment, the Company first compares undiscounted cash flows expected to be generated by an asset to the carrying value of the asset. If the carrying value of the long-lived asset is not recoverable on an undiscounted cash flow basis, the Company recognizes impairment to the extent that the carrying value of an asset exceeds its fair value. Fair value is determined through various valuation techniques including, but not limited to, discounted cash flow models, quoted market values and third-party independent appraisals. Estimated useful lives are as follows Years Equipment 3-10 Furniture and Fixtures 3-10 Building 7-40 |
Intangible Assets | Intangible assets Intangible assets are comprised of a noncompete agreement and the HazardPRO TM technology. The Company amortizes the cost of these intangible assets on a straight-line method over the estimated useful lives. |
Revenue Recognition | Revenue recognition The Company recognizes revenue when persuasive evidence of an arrangement exists, the product has been picked up by common carrier, the fee is fixed and determinable and collection of the resulting receivable is reasonably assured. Product revenue s are recognized upon shipment because the contracts generally do not include post-shipment obligations. The Company may offer discounts that it record s at the time of sale. In addition to exchanges and warranty returns, customers have limited refund rights. Historically, returns have been minimal and immaterial to the consolidated financial statements and are generally recognized when the returned product is received by the Company. In some situations, the Company receives advance payments from its customers. The Company defers the recognition of revenue associated with these advance payments until the product ships. |
Advertising Costs | Advertising costs The Company expenses advertising costs as incurred. Total advertising expense was $ 56 and $ 57 in fiscal 2015 and 2014, respectively. |
Research And Development | Research and development Expenditures for research and development are expensed as incurred. The Company incurred expenses of $ 753 and $ 810 in fiscal 2015 and 2014, respectively. |
Income Taxes | Income taxes The Company presents d eferred income taxes on an asset and liability approach to financial accounting and reporting for income taxes. The Company annually determines the difference between the financial reporting and tax bases of assets and liabilities. The company computes d eferred income tax assets and liabilities for those differences that have future tax consequences using the currently enacted tax laws and rates that apply to the periods in which the se laws are expected to affect taxable income. Income tax expense is the current tax payable or refundable for the period plus or minus the net change in the deferred tax assets and liabilities, excluding the portion of the deferred asset or liability allocated to other comprehensive income (loss) . Deferred taxes are reduced by a valuation allowance to the extent that realization of the related deferred tax asset is not assured. No valuation allowance was deemed necessary at December 31, 2015 and 2014 . The Company recognizes the effect of income tax positions only if those positions are more likely than not to be sustained. The Company r ecognized income tax positions at the largest amount that is more likely than not to be realized. The C ompany reflects c hanges in recognition or measurement in the period in which the change in judgment occurs. The Company records interest and penalties related to unrecognized tax benefits in income tax expense. |
Net Income Per Common Share | Net income per common share Basic earnings per share ( EPS ) excludes dilution and is determined by dividing net income by the weighted average number of common shares outstanding during the period. Diluted EPS reflects the potential dilution that could occur if securities and other contracts to issue common stock were exercised or converted into common stock. The following information presents the Company’s computations of basic and diluted EPS for the periods presented in the statements of comprehensive income. Income Shares Per share amount 2015: Basic EPS $ 1,214 3,395,521 $ 0.36 Effect of dilutive stock options 257,500 (0.03) Diluted EPS $ 1,214 3,653,021 $ 0.33 2014: Basic EPS $ 1,094 3,395,510 $ 0.32 Effect of dilutive stock options 258,872 (0.02) Diluted EPS $ 1,094 3,654,382 $ 0.30 |
Stock-based Compensation | Stock -based compensation The Company records compensation expense for stock options based on the estimated fair value of the options on the date of grant using the Black-Scholes-Merton (“BSM”) model. The Company uses historical data, among other factors, to estimate the expected price volatility, the expected option life and the expected forfeiture rate. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant for the estimated life of the option. At December 31, 2015, the Company had two stock-based compensation plans. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements Inventory Measurement (Evaluating) In July 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2015-11, which amended Inventory (Topic 330) Related to Simplifying the Measurement of Inventory of the Accounting Standards Codification. The amended guidance applies to all inventory except that which is measured using last-in, first-out (LIFO) or the retail inventory method. Inventory measured using first-in, first-out (FIFO) or average cost is included in the new amendments. Inventory within the scope of the new guidance should be measured at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Subsequent measurement is unchanged for inventory measured using LIFO or the retail inventory method. The amendments will take effect for public business entities for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. For all other entities, the amendments in this update are effective for fiscal years beginning after December 15, 2016, and interim periods within fiscal years beginning after December 15, 2017. The new guidance should be applied prospectively, and earlier application is permitted as of the beginning of an interim or annual reporting period. The Company does not expect this standard to have a material effect on its consolidated financial statements. Contract Revenue Recognition (Evaluating) In May 2014, the FASB issued Accounting Standards Update (ASU) No. 2014-09 which was amended in August 2015. This standard amended the Revenue from Contracts with Customers (Topic 606) of the Accounting Standards Codification. The core principle of the new guidance is that an entity should recognize revenue to reflect the transfer of goods and services to customers in an amount equal to the consideration the entity receives or expects to receive. The guidance will be effective for the Company for reporting periods beginning after December 15, 2017. The Company will apply the guidance using a modified retrospective approach. The Company does not expect this standard to have a material effect on its consolidated financial statements. |
Basis Of Presentation (Tables)
Basis Of Presentation (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Nature Of Business And Significant Accounting Policies [Abstract] | |
Schedule Of Estimated Useful Lives | Years Equipment 3-10 Furniture and Fixtures 3-10 Building 7-40 |
Schedule Of Net Income Per Common Share | Income Shares Per share amount 2015: Basic EPS $ 1,214 3,395,521 $ 0.36 Effect of dilutive stock options 257,500 (0.03) Diluted EPS $ 1,214 3,653,021 $ 0.33 2014: Basic EPS $ 1,094 3,395,510 $ 0.32 Effect of dilutive stock options 258,872 (0.02) Diluted EPS $ 1,094 3,654,382 $ 0.30 |
Business Combination (Tables)
Business Combination (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Schedule Of Consideration Transferred | Cash consideration $ 400 Note payable issued to seller (Note 9) 771 Contingent earn-out liability 472 Total consideration $ 1,643 |
Schedule Of Assets Acquired | In process research and development $ 1,478 Noncompete agreement 120 Deferred service costs 45 Total assets acquired $ 1,643 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Investments [Abstract] | |
Cost And Estimated Fair Value Of Investments | Gross Gross Fair unrealized unrealized value Cost gain loss December 31, 2015 Money Market Funds $ 246 $ 0 $ 0 $ 246 Commercial Paper 247 0 0 247 Treasury Bills 7,876 0 (4) 7,872 Equity Securities 54 0 (54) 0 8,423 0 (58) 8,365 Less Cash Equivalents 493 0 0 493 Total Investments, December 31, 2015 $ 7,930 $ 0 $ (58) $ 7,872 December 31, 2014 Money Market Funds $ 510 $ 0 $ 0 $ 510 Commercial Paper 345 0 0 345 Treasury Bills 6,542 0 0 6,542 Equity Securities 72 1,238 (54) 1,256 7,469 1,238 (54) 8,653 Less Cash Equivalents 855 0 0 855 Total Investments, December 31, 2014 $ 6,614 $ 1,238 $ (54) $ 7,798 |
Schedule Of Realized Gains And Losses On Investments | Years Ended December 31, 2015 2014 Gross Realized Gains $ 1,449 $ 1,163 Gross Realized Losses 0 0 Net Realized Gain $ 1,449 $ 1,163 |
Schedule Of Changes In Accumulated Other Comprehensive Income | December 31, 2015 2014 Unrealized Gains (Losses) Unrealized holding gains (losses) arising during the period $ 211 $ (284) Less: Reclassification of gains included in net income (1,449) (1,163) (1,238) (1,447) Deferred Taxes on Unrealized Gains (Losses): Increase (decrease) in deferred taxes on unrealized gains (losses) arising during the period 80 (108) Less: Reclassification of taxes on gains included in net income (551) (442) (471) (550) Net Change in Accumulated Other Comprehensive Income (Loss) $ (767) $ (897) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements On A Recurring Basis | December 31 ,2015 Carrying amount in consolidated Fair Value Measurement Using balance sheet Fair Value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents: Money market $ 246 $ 246 $ 246 $ 0 $ 0 Commercial paper 247 247 247 0 0 Treasury bills 7,872 7,872 7,872 0 0 Liabilities: Contingent earn-out 455 455 0 0 455 December 31 ,2014 Carrying amount in consolidated Fair Value Measurement Using balance sheet Fair Value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents: Money market $ 510 $ 510 $ 510 $ 0 $ 0 Commercial paper 345 345 345 0 0 Treasury bills 6,542 6,542 6,542 0 0 Available-for-sale: Equities: Small cap technology sector 1,256 1,256 1,256 0 0 Liabilities: Contingent earn-out 472 472 0 0 472 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | December 31, 2015 2014 Beginning Balance 472 0 Additions (Note 2) 0 472 Charge to earnings (17) 0 Ending Balance 455 472 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Inventories [Abstract] | |
Schedule Of Inventories | December 31, 2015 2014 Raw Materials $ 956 $ 729 Work In Process 297 263 Finished Goods 311 232 Total Inventories $ 1,564 $ 1,224 |
Property And Equipment (Tables)
Property And Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property And Equipment [Abstract] | |
Schedule Of Property And Equipment | December 31, 2015 2014 Equipment $ 285 $ 266 Furniture and Fixtures 410 380 Building 1,365 1,365 Land 415 415 2,475 2,426 Less Accumulated Depreciation 1,372 1,280 Total Property and Equipment $ 1,103 $ 1,146 |
Net Intangible Assets (Tables)
Net Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Finite-Lived Intangible Assets, Net [Abstract] | |
Schedule of Finite-Lived Intangible Assets | December 31, 2015 Average Useful Lives Gross Carrying Amount Accumulated Amortization Net Carrying Amount Noncompete 5 Years $ 120 $ 46 $ 74 Technology 7 Years 1,478 282 1,196 Net Intangible Assets 1,598 328 1,270 December 31, 2014 Average Useful Lives Gross Carrying Amount Accumulated Amortization Net Carrying Amount Noncompete 5 Years $ 120 $ 22 $ 98 Technology 7 Years 1,478 71 1,407 Net Intangible Assets 1,598 93 1,505 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | 2016 $ 235 2017 235 2018 235 2019 213 2020 211 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accrued Expenses [Abstract] | |
Schedule Of Accrued Expenses | December 31, 2015 2014 Wages and Commissions $ 272 $ 276 Other 124 116 Total Accrued Expenses $ 396 $ 392 |
Note Payable (Tables)
Note Payable (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Note Payable [Abstract] | |
Schedule Of Note Payable | December 31, 2015 2014 Note payable to seller $ 400 $ 800 Payable in annual installments of principal of $400, with a maturity date of February 2016 . This note is non-interest bearing and unsecured. Less: Discount of note payable listed above (10) (29) Net note payable 390 771 Less: Current maturities 390 381 Note Payable – Long Term $ 0 $ 390 |
Commitments (Tables)
Commitments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments [Abstract] | |
Schedule Of Minimum Lease Payments | Year Amount 2016 $ 8 2017 3 Total Minimum Lease Payments $ 11 |
Common Stock Options And Stock
Common Stock Options And Stock Purchase Plan (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Employee Stock Option [Member] | |
Schedule Of Stock Options Activity | Options Outstanding Number of Weighted- Weighted- Aggregate Shares Average Average Intrinsic Value Exercise Remaining (1) Price Contractual Term (in years) Balance at January 1, 2014 61,980 $ 4.20 9.7 Granted 0 Exercised 0 Canceled/forfeited/expired (11,980) (4.16) Balance at December 31, 2014 50,000 4.21 8.6 Granted 0 Exercised 0 Canceled/forfeited/expired 0 Balance at December 31, 2015 50,000 $ 4.21 7.6 Vested and exercisable as of December 31, 2015 50,000 $ 0 (1) The aggregate intrinsic value is calculated as approximately the difference between the weighted average exercise price of the underlying awards and the Company’s estimated current fair market value at December 31, 2015. |
Director Stock Option [Member] | |
Schedule Of Stock Options Activity | Options Outstanding Number of Weighted- Weighted- Aggregate Shares Average Average Intrinsic Value Exercise Remaining (1) Price Contractual Term (in years) Balance at January 1, 2014 185,000 $ 4.64 9.5 Granted 25,000 4.39 10.0 Exercised 0 Canceled/forfeited/expired (2,500) (4.15) Balance at December 31, 2014 207,500 4.62 8.4 Granted 0 Exercised 0 Canceled/forfeited/expired 0 Balance at December 31, 2015 207,500 $ 4.62 7.4 Vested and exercisable as of December 31, 2015 122,500 $ 0 (1) The aggregate intrinsic value is calculated as approximately the difference between the weighted average exercise price of the underlying awards and the Company’s estimated current fair market value at December 31, 2015. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Stock-Based Compensation (Valuation Assumption) [Abstract] | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Dividend yield 0.00% Expected volatility 44.11% Risk free interest rate 2.02% Expected life 6 Years |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Taxes [Abstract] | |
Schedule Of Components Of The Income Tax Provision | 2015 2014 Current: Federal $ 633 $ 540 State 1 1 Deferred: Federal (101) (60) State (3) (21) Total Federal and State Income Taxes $ 530 $ 460 |
Schedule Of Effective Income Tax Rate Reconciliation | 2015 2014 Computed “Expected” Federal Tax Expense $ 601 $ 529 Increase (Decrease) in Taxes Resulting From: State Income Taxes, net of Federal Benefit 10 10 Credits (43) (47) Domestic Production Activities Deduction (22) (17) Permanent Differences 5 4 Other (21) (19) Total Federal and State Income Taxes $ 530 $ 460 |
Schedule Of Net Deferred Tax Assets and Liabilities | 2015 2014 Deferred Tax Assets: Vacation Accrual $ 34 $ 33 Allowance for Doubtful Accounts 3 4 Stock Compensation 102 80 Bonus 10 0 Depreciation and Amortization 1 0 Net Unrealized Loss on Investments 21 0 State Carryforward R&D Credit 46 31 Total Deferred Tax Assets $ 217 $ 148 Deferred Tax Liabilities: Prepaid Expenses $ 33 $ 35 Depreciation and Amortization 0 54 Net Unrealized Gain on Investments 0 450 Total Deferred Tax Liabilities $ 33 $ 539 Net Deferred Tax Asset (Liability) $ 184 $ (391) |
Schedule Of Components Of Current And Noncurrent Tax Assets And Liabilities [Table Text Block] | 2015 2014 Deferred Tax Assets: Current $ 14 0 Long-term 170 0 Total Deferred Tax Assets $ 184 $ 0 Deferred Tax Liabilities: Long-term $ 0 $ 391 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Information [Abstract] | |
Financial Information Relating To Continuing Operating Segments | 2015 2014 Net revenues Production Monitoring $ 7,636 $ 7,041 Total 7,636 7,041 Sales in foreign countries Production Monitoring 972 973 Total 972 973 Interest income Production Monitoring 0 0 ESI Investment Company 0 2 Total 0 2 Depreciation and amortization expense Production Monitoring 348 209 Total 348 209 Interest expense Production Monitoring 11 17 Total 11 17 Capital purchases Production Monitoring 70 46 Total 70 46 Total assets Production Monitoring 4,998 4,945 ESI Investment Company 8,423 8,819 Total 13,421 13,764 Income before income taxes Production Monitoring 295 389 ESI Investment Company 1,449 1,165 Total 1,744 1,554 |
Nature Of Business And Signific
Nature Of Business And Significant Accounting Policies (Narrative) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015USD ($)ShareBasedCompensationPlan | Dec. 31, 2014USD ($) | |
Nature Of Business And Significant Accounting Policies [Abstract] | ||
Nonfinancial And Financial Items Measured On A Nonrecurring Basis | $ 0 | |
Advertising expense | 56 | $ 57 |
Research and development expense | 753 | 810 |
Other-than-Temporary Impairments Recognized in the Income Statement | 0 | 0 |
Deferred Tax Assets, Valuation Allowance | $ 0 | $ 0 |
Number Of Company Compensation Plans | ShareBasedCompensationPlan | 2 |
Nature Of Business And Signif38
Nature Of Business And Significant Accounting Policies (Schedule Of Estimated Useful Lives) (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Minimum [Member] | Equipment [Member] | |
Estimated useful lives | 3 years |
Minimum [Member] | Furniture And Fixtures [Member] | |
Estimated useful lives | 3 years |
Minimum [Member] | Building [Member] | |
Estimated useful lives | 7 years |
Maximum [Member] | Equipment [Member] | |
Estimated useful lives | 10 years |
Maximum [Member] | Furniture And Fixtures [Member] | |
Estimated useful lives | 10 years |
Maximum [Member] | Building [Member] | |
Estimated useful lives | 40 years |
Nature Of Business And Signif39
Nature Of Business And Significant Accounting Policies (Schedule Of Net Income Per Common Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Nature Of Business And Significant Accounting Policies [Abstract] | ||
Net income | $ 1,214 | $ 1,094 |
Basic EPS, Per share amount | $ 0.36 | $ 0.32 |
Effect of dilutive stock options, per share amount | (0.03) | (0.02) |
Diluted EPS, Per share amount | $ 0.33 | $ 0.30 |
Basic EPS, Shares | 3,395,521 | 3,395,510 |
Effect of dilutive stock options, shares | 257,500 | 258,872 |
Diluted EPS, Shares | 3,653,021 | 3,654,382 |
Business Combination (Narrative
Business Combination (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Business Combinations [Abstract] | ||
Acquisition purchase price | $ 1,643 | |
Acquisition fees | 15 | |
Potential contingent consideration | $ 550 | |
Contingent consideration measurement period | 4 years | |
Contingent liability recorded | $ 472 | |
Acquired intangibles, amortization period | 5 years |
Business Combination (Schedule
Business Combination (Schedule Of Contingent Consideration Transferred) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Business Combinations [Abstract] | ||
Cash consideration | $ 0 | $ 400 |
Note payable issued to seller (Note 8) | 0 | 771 |
Contingent earn-out liability | $ 0 | 472 |
Total consideration | $ 1,643 |
Business Combination (Schedul42
Business Combination (Schedule OfAssets Acquired) (Details) $ in Thousands | Dec. 31, 2014USD ($) |
Business Combinations [Abstract] | |
In-process research and development | $ 1,478 |
Noncompete agreement | 120 |
Deferred service costs | 45 |
Total assets acquired | $ 1,643 |
Investments (Narrative) (Detail
Investments (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Investment In Organization [Line Items] | ||
Gain on sale of available-for-sale securities | $ 1,449 | $ 1,163 |
Rudolph Technologies, Inc [Member] | ||
Investment In Organization [Line Items] | ||
Investments owned, shares | 122,649 | |
Aggregate value of shares | $ 1,254 | |
Approximate cost | $ 16 | |
Available-for-sale shares sold | 122,649 | 108,687 |
Gain on sale of available-for-sale securities | $ 1,447 | $ 1,163 |
Investments (Cost And Estimated
Investments (Cost And Estimated Fair Value Of Investments) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Cost | $ 7,930 | $ 6,614 | |
Gross unrealized gain | 0 | 1,238 | |
Gross unrealized loss | 58 | 54 | |
Fair value, investments | 7,872 | 7,798 | |
Less cash equivalents, Carrying amount | 569 | 1,190 | $ 1,505 |
Money Market [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Cost | 246 | 510 | |
Gross unrealized gain | 0 | 0 | |
Gross unrealized loss | 0 | 0 | |
Fair value, investments | 246 | 510 | |
Commercial Paper [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Cost | 247 | 345 | |
Gross unrealized gain | 0 | 0 | |
Gross unrealized loss | 0 | 0 | |
Fair value, investments | 247 | 345 | |
Treasury Bills [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Cost | 7,876 | 6,542 | |
Gross unrealized gain | 0 | 0 | |
Gross unrealized loss | 4 | 0 | |
Fair value, investments | 7,872 | 6,542 | |
Equity Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Cost | 54 | 72 | |
Gross unrealized gain | 0 | 1,238 | |
Gross unrealized loss | 54 | 54 | |
Fair value, investments | 0 | 1,256 | |
Debt and Equity Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Cost | 8,423 | 7,469 | |
Gross unrealized gain | 0 | 1,238 | |
Gross unrealized loss | 58 | 54 | |
Fair value, investments | 8,365 | 8,653 | |
Less Cash and Cash Equivalents [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Gross unrealized gain | 0 | 0 | |
Gross unrealized loss | 0 | 0 | |
Less cash equivalents, Carrying amount | 493 | 855 | |
Less cash equivalents, Fair value | $ 493 | $ 855 |
Investments (Schedule Of Realiz
Investments (Schedule Of Realized Gains And Losses On Investments) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Investments [Abstract] | ||
Gross Realized Gains | $ 1,449 | $ 1,163 |
Gross Realized Losses | 0 | 0 |
Net Realized Gain | $ 1,449 | $ 1,163 |
Investments (Schedule Of Change
Investments (Schedule Of Changes In Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Investments [Abstract] | ||
Unrealized holding gains (losses) arising during the period | $ 211 | $ (284) |
Less: Reclassification of gains included in net income | (1,449) | (1,163) |
Net Decrease in Unrealized Gains | (1,238) | (1,447) |
Increase (decrease) in deferred taxes on unrealized gains (losses) arising during the period | 80 | (108) |
Less: Reclassification of taxes on gains included in net income | (551) | (442) |
Net Decrease in Deferred Taxes | (471) | (550) |
Other Comprehensive Loss | $ (767) | $ (897) |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value Measurements On A Recurring Basis) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents, Carrying amount | $ 569 | $ 1,190 | $ 1,505 |
Treasury Bills, fair value | 7,872 | 6,542 | |
Available-for-sale Securities, Fair Value | 7,872 | 7,798 | |
Obligations [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Contingent Earn-out, Fair Value | 455 | 472 | |
Contingent Earn-out, Carrying Value | 455 | 472 | |
Fair Value, Inputs, Level 1 [Member] | Obligations [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Contingent Earn-out, Fair Value | 0 | 0 | |
Fair Value, Inputs, Level 2 [Member] | Obligations [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Contingent Earn-out, Fair Value | 0 | 0 | |
Fair Value, Inputs, Level 3 [Member] | Obligations [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Contingent Earn-out, Fair Value | 455 | 472 | |
Small Cap Technology Sector [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities, Carrying amount | 1,256 | ||
Available-for-sale Securities, Fair Value | 1,256 | ||
Small Cap Technology Sector [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities, Fair Value | 1,256 | ||
Small Cap Technology Sector [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities, Fair Value | 0 | ||
Small Cap Technology Sector [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities, Fair Value | 0 | ||
Money Market [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents, Carrying amount | 246 | 510 | |
Cash and cash equivalents, Fair Value | 246 | 510 | |
Money Market [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents, Fair Value | 246 | 510 | |
Money Market [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents, Fair Value | 0 | 0 | |
Money Market [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents, Fair Value | 0 | 0 | |
Commercial Paper [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents, Carrying amount | 247 | 345 | |
Cash and cash equivalents, Fair Value | 247 | 345 | |
Commercial Paper [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents, Fair Value | 247 | 345 | |
Commercial Paper [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents, Fair Value | 0 | 0 | |
Commercial Paper [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents, Fair Value | 0 | 0 | |
Treasury Bills [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Treasury Bills, carrying value | 7,872 | 6,542 | |
Treasury Bills, fair value | 7,872 | 6,542 | |
Treasury Bills [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Treasury Bills, fair value | 7,872 | 6,542 | |
Treasury Bills [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Treasury Bills, fair value | 0 | 0 | |
Treasury Bills [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Treasury Bills, fair value | $ 0 | $ 0 |
Fair Value Liabilities Measured
Fair Value Liabilities Measured on Recurring Basis Unobservable Inputs Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value Measurements [Abstract] | ||
Beginning Balance | $ 472 | $ 0 |
Additions (Note 2) | 0 | 472 |
Charge to earnings | (17) | 0 |
Ending Balance | $ 455 | $ 472 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Inventories [Abstract] | ||
Raw Materials | $ 956 | $ 729 |
Work in Process | 297 | 263 |
Finished Goods | 311 | 232 |
Total Inventories | $ 1,564 | $ 1,224 |
Property And Equipment (Narrati
Property And Equipment (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Property And Equipment [Abstract] | ||
Depreciation | $ 113 | $ 116 |
Property And Equipment (Details
Property And Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, Gross | $ 2,475 | $ 2,426 |
Less Accumulated Depreciation | 1,372 | 1,280 |
Total Property and Equipment | 1,103 | 1,146 |
Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, Gross | 285 | 266 |
Furniture And Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, Gross | 410 | 380 |
Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, Gross | 1,365 | 1,365 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, Gross | $ 415 | $ 415 |
Schedule of Finite Lived Assets
Schedule of Finite Lived Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 5 years | |
Gross Carrying Amount | $ 1,598 | $ 1,598 |
Accumulated Amortization | 328 | 93 |
Intangible assets, net | 1,270 | 1,505 |
Amortization of Intangible Assets | $ 235 | $ 93 |
Noncompete Agreements [Member] | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 5 years | 5 years |
Gross Carrying Amount | $ 120 | $ 120 |
Accumulated Amortization | 46 | 22 |
Intangible assets, net | $ 74 | $ 98 |
Unpatented Technology [Member] | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 7 years | 7 years |
Gross Carrying Amount | $ 1,478 | $ 1,478 |
Accumulated Amortization | 282 | 71 |
Intangible assets, net | $ 1,196 | $ 1,407 |
Schedule of Five Year Amortizat
Schedule of Five Year Amortization Schedule (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Finite-Lived Intangible Assets, Net [Abstract] | |
Amortization Expense Year 1 | $ 235 |
Amortization Expense Year 2 | 235 |
Amortization Expense Year 3 | 235 |
Amortization Expense Year 4 | 213 |
Amortization Expense Year 5 | $ 211 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Accrued Expenses [Abstract] | ||
Wages and Commissions | $ 272 | $ 276 |
Other | 124 | 116 |
Total Accrued Expenses | $ 396 | $ 392 |
Note Payable (Schedule of Notes
Note Payable (Schedule of Notes Payable) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Note Payable Long Term [Abstract] | ||
Note Payable to seller | $ 400 | $ 800 |
Less: Discount of note payable listed above | 10 | 29 |
Net Note Payable | 390 | 771 |
Current maturities of note payable | 390 | 381 |
Note Payable - Long Term | 0 | $ 390 |
Note Payable, Annual Installment | $ 400 | |
Note Payable, Maturity Date | Feb. 18, 2016 |
Commitments (Details)
Commitments (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Commitments [Abstract] | ||
Annual minimum lease payment Year 1 | $ 8 | |
Annual minimum lease payment Year 2 | 3 | |
Total Minimum Lease Payments | 11 | |
Rental expense | $ 8 | $ 21 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015USD ($)shares | Dec. 31, 2014USD ($)employeeshares | |
Stock options fair market value | 100.00% | |
Options expiration from date of grant | 10 years | |
Options expiration from date of death | 1 year | |
Exercised, Number of Shares | 0 | 0 |
Stock Granted, Value, Share-based Compensation, Gross | $ | $ 35 | |
Unrecognized Share Based Compensation | $ | $ 109 | |
Number of Years To Recognize Remaining Expense | 3 years | |
Recognized compensation expense | $ | $ 63 | $ 67 |
Employee [Member] | ||
Number Of Employees That Forfeited Options To Purchase Common Shares | employee | 4 | |
Canceled/forfeited/expired, Number of Shares | 11,980 | |
Director [Member] | ||
Granted, Number of Shares | 25,000 | |
Number of individuals receiving grants | employee | 1 | |
Stock Option Vesting Period | 4 years | |
Vesting Percentage | 20% | |
Former Director [Member] | ||
Number of outside directors that forfeited options to purchase common shares | employee | 1 | |
Canceled/forfeited/expired, Number of Shares | 2,500 | |
2013 Equity Incentive Plan [Member] | ||
Number of shares vested | 165,000 | |
Maximum amount of options authorized | 300,000 | |
Number of shares available for purchase | 250,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 50,000 | |
1997 Stock Option Plan [Member] | ||
Number of shares vested | 7,500 | |
Maximum amount of options authorized | 450,000 | |
Number of shares available for purchase | 7,500 | |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 0 | |
1996 Stock Purchase Plan [Member] | ||
Stock options fair market value | 85.00% | |
Maximum amount of options authorized | 150,000 | |
Maximum percentage of earning employees can use to purchase company common stock | 10.00% | |
Total Shares Issued Through Employee Stock Purchase Plans Since Inception | 81,653 |
Stock Based Compensation (Valua
Stock Based Compensation (Valuation Assumptions) (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Stock-Based Compensation (Valuation Assumption) [Abstract] | |
Dividend Yield | 0.00% |
Expected Volatility | 44.11% |
Risk Free Interest Rate | 2.02% |
Expected Life | 6 years |
Common Stock Options And Stoc59
Common Stock Options And Stock Purchase Plan (Schedule Of Stock Options Activity) (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Exercised, Number of Shares | 0 | 0 | ||
Employee Stock Option [Member] | ||||
Beginning balance, Number of Shares | 50,000 | 61,980 | ||
Granted, Number of Shares | 0 | 0 | ||
Exercised, Number of Shares | 0 | 0 | ||
Canceled/forfeited/expired, Number of Shares | 0 | 11,980 | ||
Ending balance, Number of Shares | 50,000 | 50,000 | 61,980 | |
Beginning balance, Weighted-Average Exercise Price | $ 4.21 | $ 4.20 | ||
Canceled/forfeited/expired, Weighted-Average Exercise Price | 4.16 | |||
Ending balance, Weighted-Average Exercise Price | $ 4.21 | $ 4.21 | $ 4.20 | |
Balance, Weighted-Average Remaining Contractual Term | 7 years 7 months 6 days | 8 years 7 months 6 days | 9 years 8 months 12 days | |
Vested and exercisable, Aggregate Intrinsic Value | [1] | $ 0 | ||
Number of shares vested | 50,000 | |||
Director Stock Option [Member] | ||||
Beginning balance, Number of Shares | 207,500 | 185,000 | ||
Granted, Number of Shares | 0 | 25,000 | ||
Exercised, Number of Shares | 0 | 0 | ||
Canceled/forfeited/expired, Number of Shares | 0 | 2,500 | ||
Ending balance, Number of Shares | 207,500 | 207,500 | 185,000 | |
Beginning balance, Weighted-Average Exercise Price | $ 4.62 | $ 4.64 | ||
Granted, Weighted-Average Exercise Price | 4.39 | |||
Canceled/forfeited/expired, Weighted-Average Exercise Price | 4.15 | |||
Ending balance, Weighted-Average Exercise Price | $ 4.62 | $ 4.62 | $ 4.64 | |
Balance, Weighted-Average Remaining Contractual Term | 7 years 4 months 24 days | 8 years 4 months 24 days | 9 years 6 months | |
Sharebased Compensation Arrangement by Sharebased Payment Award Option Granted Weighted Average Remaining Contractual Term | 10 years | |||
Vested and exercisable, Aggregate Intrinsic Value | [1] | $ 0 | ||
Number of shares vested | 122,500 | |||
[1] | The aggregate intrinsic value is calculated as approximately the difference between the weighted average exercise price of the underlying awards and the Company's estimated current fair market value at December 31, 2015. |
Benefit Plans (Details)
Benefit Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Benefit Plans [Abstract] | ||
Minimum hours employees required to work per year to qualify for ESOP | 1000 hours | |
Common shares owned by ESOP | 153,457 | |
Employee Stock Ownership Plan Debt to Company | $ 0 | $ 0 |
Common shares owned by ESOP, fair market value | 549 | |
ESOP compensation expense | 24 | 18 |
Board of Directors' discretionary contribution to 401(k) plan | $ 0 | $ 0 |
Income Taxes (Schedule Of Compo
Income Taxes (Schedule Of Components Of The Income Tax Provision) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Income Taxes [Abstract] | ||
Current, Federal | $ 633 | $ 540 |
Current, State | 1 | 1 |
Deferred, Federal | (101) | (60) |
Deferred, State | (3) | (21) |
Income taxes | $ 530 | $ 460 |
Income Taxes (Schedule Of Effec
Income Taxes (Schedule Of Effective Income Tax Rate Reconciliation) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Income Taxes [Abstract] | ||
Computed "Expected" Federal Tax Expense | $ 601 | $ 529 |
State Income Taxes, net of Federal Benefit | 10 | 10 |
Credits | (43) | (47) |
Domestic Production Activities Deduction | (22) | (17) |
Permanent Differences | 5 | 4 |
Other Adjustments | (21) | (19) |
Income taxes | 530 | 460 |
Accrued Interest or Penalties Related to Uncertain Tax Positions | $ 0 | $ 0 |
Income Taxes (Schedule Of Net D
Income Taxes (Schedule Of Net Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Income Taxes [Abstract] | ||
Vacation Accrual | $ 34 | $ 33 |
Allowance for Doubtful Accounts | 3 | 4 |
Stock Compensation | 102 | 80 |
Bonus | 10 | 0 |
Depreciation And Amortization Deferred Tax Asset | 1 | 0 |
Net Unrealized Loss on Investments | 21 | 0 |
State Carryforward R&D Credit | 46 | 31 |
Total Deferred Tax Assets | 217 | 148 |
Prepaid Expenses | 33 | 35 |
Depreciation and Amortization Deferred Tax Liability | 0 | 54 |
Net Unrealized Gain on Investments | 0 | 450 |
Total Deferred Tax Liabilities | 33 | 539 |
Net Deferred Tax Asset | $ 184 | 0 |
Net Deferred Tax Liability | $ (391) |
Income Taxes (Schedule Of Com64
Income Taxes (Schedule Of Components Of Current And Noncurrent Deferred Tax Assets And Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Income Taxes [Abstract] | ||
Deferred income tax asset, current | $ 14 | $ 0 |
Deferred income tax asset | 170 | 0 |
Deferred Tax Assets, Net, Total | 184 | 0 |
Deferred income tax liability | $ 0 | $ 391 |
Segment Information (Continuing
Segment Information (Continuing Operating Segments) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015USD ($)segment | Dec. 31, 2014USD ($) | |
Net revenues | $ 7,636 | $ 7,041 |
Interest income | 0 | 2 |
Depreciation and amortization | 348 | 209 |
Interest expense | 11 | 17 |
Purchase of property and equipment | 70 | 46 |
Total assets | 13,421 | 13,764 |
Income before income taxes | $ 1,744 | 1,554 |
Number of reportable segments | segment | 2 | |
Foreign Country Revenue [Member] | ||
Net revenues | $ 972 | 973 |
Production Monitoring [Member] | ||
Net revenues | 7,636 | 7,041 |
Interest income | 0 | 0 |
Depreciation and amortization | 348 | 209 |
Interest expense | 11 | 17 |
Purchase of property and equipment | 70 | 46 |
Total assets | 4,998 | 4,945 |
Income before income taxes | 295 | 389 |
Production Monitoring [Member] | Foreign Country Revenue [Member] | ||
Net revenues | 972 | 973 |
ESI Investment Company [Member] | ||
Interest income | 0 | 2 |
Total assets | 8,423 | 8,819 |
Income before income taxes | $ 1,449 | $ 1,165 |
Subsequent Events (Details)
Subsequent Events (Details) - Executive Officer [Member] - Subsequent Event [Member] | Feb. 09, 2016shares |
Subsequent Event [Line Items] | |
Granted, Number of Shares | 50,000 |
Vesting Percentage | 20% |
Stock Option Vesting Period | 4 years |