Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Mar. 24, 2021 | Jun. 30, 2020 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2020 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Registrant Name | ELECTRO SENSORS INC | ||
Entity Central Index Key | 0000351789 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Shell Company | false | ||
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 | $ 7,800,000 | ||
Trading Symbol | ELSE | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | true | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity File Number | 000-09587 | ||
Entity Incorporation, State or Country Code | MN | ||
Entity Tax Identification Number | 41-0943459 | ||
Entity Address, Address Line One | 6111 Blue Circle Drive | ||
Entity Address, City or Town | Minnetonka | ||
Entity Address, State or Province | MN | ||
City Area Code | 952 | ||
Local Phone Number | 930-0100 | ||
Title of 12(b) Security | Common Stock | ||
Security Exchange Name | NASDAQ | ||
Entity Interactive Data Current | Yes | ||
Entity Address, Postal Zip Code | 55343-9108 |
Balance Sheets
Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets | ||
Cash and cash equivalents | $ 1,090 | $ 8,785 |
Treasury bills | 7,999 | 0 |
Equity securities | 42 | 45 |
Trade receivables, less allowance for doubtful accounts of $11 | 957 | 1,036 |
Inventories | 1,572 | 1,695 |
Other current assets | 170 | 159 |
Income tax receivable | 26 | 0 |
Total current assets | 11,856 | 11,720 |
Deferred income tax asset | 246 | 203 |
Intangible assets, net | 228 | 489 |
Property and equipment, net | 989 | 1,063 |
Total assets | 13,319 | 13,475 |
Current liabilities | ||
Current maturity of financing lease | 6 | 5 |
Accounts payable | 197 | 129 |
Accrued expenses | 330 | 431 |
Total current liabilities | 533 | 565 |
Long-term liabilities | ||
Financing lease, net of current maturities | 12 | 19 |
Total long-term liabilities | 12 | 19 |
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 | 2,036 | 2,030 |
Retained earnings | 10,398 | 10,522 |
Accumulated other comprehensive gain (unrealized gain on available-for-sale securities, net of income tax) | 1 | 0 |
Total stockholders' equity | 12,774 | 12,891 |
Total liabilities and stockholders' equity | $ 13,319 | $ 13,475 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Condensed Balance Sheets [Abstract] | ||
Trade receivables, allowance for doubtful accounts | $ 11 | $ 11 |
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 |
Statements Of Comprehensive Inc
Statements Of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Statements Of Comprehensive Income (Loss) [Abstract] | ||
Net sales | $ 7,621 | $ 8,258 |
Cost of goods sold | 3,691 | 3,892 |
Gross profit | 3,930 | 4,366 |
Operating expenses | ||
Selling and marketing | 1,612 | 1,929 |
General and administrative | 1,686 | 1,657 |
Research and development | 836 | 811 |
Total operating expenses | 4,134 | 4,397 |
Operating loss | (204) | (31) |
Non-operating income (expense) | ||
Interest expense | (3) | (2) |
Interest income | 36 | 209 |
Other income (expense) | (1) | 10 |
Total non-operating income, net | 32 | 217 |
Income (loss) before income taxes | (172) | 186 |
Income tax benefit | (48) | (1) |
Net income (loss) | (124) | 187 |
Other comprehensive income (loss) | ||
Change in unrealized value of available-for-sale securities, net of income tax | 1 | (32) |
Other comprehensive income (loss) | 1 | (32) |
Net Comprehensive Income (Loss) | $ (123) | $ 155 |
Basic | ||
Net income (loss) per share | $ (0.04) | $ 0.06 |
Weighted average shares | 3,395,521 | 3,395,521 |
Diluted | ||
Net income (loss) per share | $ (0.04) | $ 0.06 |
Weighted average shares | 3,395,521 | 3,398,035 |
Statements Of Changes In Stockh
Statements Of Changes In Stockholders' Equity - USD ($) $ in Thousands | Common Stock Issued [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total |
Beginning Balance at Dec. 31, 2018 | $ 339 | $ 2,019 | $ 10,335 | $ 32 | $ 12,725 |
Beginning Balance, Shares at Dec. 31, 2018 | 3,395,521 | ||||
Other comprehensive income (loss) | (32) | (32) | |||
Stock-based compensation expense | 11 | 11 | |||
Net income (loss) | 187 | 187 | |||
Ending Balance at Dec. 31, 2019 | $ 339 | 2,030 | 10,522 | 0 | 12,891 |
Ending Balance, Shares at Dec. 31, 2019 | 3,395,521 | ||||
Other comprehensive income (loss) | 1 | 1 | |||
Stock-based compensation expense | 6 | 6 | |||
Net income (loss) | (124) | (124) | |||
Ending Balance at Dec. 31, 2020 | $ 339 | $ 2,036 | $ 10,398 | $ 1 | $ 12,774 |
Ending Balance, Shares at Dec. 31, 2020 | 3,395,521 |
Statements Of Cash Flows
Statements Of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities | ||
Net income (loss) | $ (124) | $ 187 |
Adjustments to reconcile net income (loss) to net cash from operating activities: | ||
Depreciation and amortization | 360 | 320 |
Deferred income taxes | (43) | (2) |
Stock-based compensation expense | 6 | 11 |
Interest accrued on treasury bills | (4) | (182) |
Other | 4 | 0 |
Change in: | ||
Trade receivables | 79 | (140) |
Inventories | 123 | (77) |
Other current assets | (11) | (4) |
Accounts payable | 68 | 13 |
Accrued expenses | (101) | 26 |
Income taxes receivable | (26) | 0 |
Net cash from operating activities | 331 | 152 |
Cash flows from investing activitiesCash flows from (used in) investing activities | ||
Purchases of treasury bills | (13,745) | (7,662) |
Proceeds from the maturity of treasury bills | 5,750 | 15,500 |
Purchase of intangible asset | 0 | (150) |
Purchase of property and equipment | (25) | (107) |
Net cash from (used in) investing activities | (8,020) | 7,581 |
Cash flows used in financing activities | ||
Payments on financing lease | (6) | (5) |
Repayment of Paycheck Protection Program loan | (645) | 0 |
Proceeds from Paycheck Protection Program | 645 | 0 |
Repayment of Paycheck Protection Program loan | 645 | 0 |
Net cash used in financing activities | (6) | (5) |
Net increase (decrease) in cash and cash equivalents | (7,695) | 7,728 |
Cash and cash equivalents, beginning | 8,785 | 1,057 |
Cash and cash equivalents, ending | 1,090 | 8,785 |
Supplemental cash flow information | ||
Cash paid during the year for income taxes | 20 | 1 |
Cash paid during the year for interest | $ 3 | $ 2 |
Nature of Business and Signific
Nature of Business and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Nature Of Business And Significant Accounting Policies [Abstract] | |
Nature of Business and Significant Accounting Policies | Note 1. Nature of Business and Significant Accounting Policies Nature of business: 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, with the ultimate goal of manufacturing the industry-preferred product for each 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 variety of applications to monitor process machinery operations. The Company markets its products to customers located throughout the United States, Canada, Latin America, Europe, and Asia. In addition, we may periodically make strategic investments in other businesses and companies, including investments that we believe would facilitate the development of new relationships, or technology complementary to our existing products, or other investments that we believe present good opportunities for the Company and its shareholders. See Note 2 Significant accounting policies of the Company are summarized below: Use of estimates The preparation of 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 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 receivables, valuation of deferred tax assets/liabilities, inventory, investments, stock compensation expense, and the potential estimated impact on operations due to the COVID-19 pandemic as it relates to disruptions to our supply chain and customer demand. 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 three- The Company maintains its cash and cash equivalents primarily in two bank deposit accounts, 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 due 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. As of December 31, 2020, the Company had two cu stomers that acc one 19 Investments Substantially all the Company’s current investments consist of government debt securities. The estimated fair value of publicly traded securities is based on reported market prices or management’s estimate of a 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 treasury bills as available-for-sale. Treasury bills 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 gain. Equity securities with readily determinable values are stated at fair value. Unrealized gains and losses on equity securities are reported in the statement of comprehensive income in non-operating income. 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 in non-operating 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, 2020 and 2019. 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 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 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 whic h 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, 2020 and 2019 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 net realizable value. 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 the Company to test a long-lived asset 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. The Company determines fair value 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 A utos 3 Equipment 5 - 10 Furniture and Fixtures 3 - 7 Building 7 - 40 Intangible assets Intangible assets are comprised of the HazardPRO technology and a communication technology. The Company amortizes the cost of these intangible assets on a straight-line method over the estimated useful lives. The Company also had a non-compete agreement that expired in February 2019. Revenue recognition At contract inception, the Company assesses the goods and services promised to a customer and identifies a performance obligation for each distinct promised good or service. We also determine the transaction price for each performance obligation at contract inception. Our contracts, generally in the form of a purchase order, specify the product or service that is promised to the customer. The typical contract life is less than one month and contains a single performance obligation, to provide conforming goods or services to the customer. On some contracts, we have a second performance obligation, which typically is the initialization of the HazardPRO product. For contracts that have multiple performance obligations, we allocate the transaction price to each performance obligation using the relative stand-alone selling price. Advertising costs The Company expenses advertising costs as incurred. Total advertising expense was $45 and $61 in 2020 and 2019, respectively. Research and development Expenditures for research and development are expensed as incurred. The Company incurred expenses of $836 and $811 in 2020 and 2019, respectively. Income taxes The Company presents deferred 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 deferred 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 these 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 gain (loss). Deferred taxes are reduced by a valuation allowance to the extent that realization of the related deferred tax asset is not certain. We recorded a valuation allow ance on our defe The Company recognizes the effect of income tax positions only if those positions are more likely than not to be sustained. The Company recognizes income tax positions at the largest amount that is more likely than not to be realized. The Company reflects changes in recognition or measurement in the period in which the Company's change in judgment occurs. The Company records interest and penalties related to unrecognized tax benefits in income tax expense. Net income (loss) 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 such as options and other contracts to issue common stock were exercised or converted into common stock. For the years ending December 31, 2020 and 2019, respectively, options to purchase 332,500 and 329,986 weighted average common shares have been excluded from the diluted weighted average shares because their effect would be anti-dilutive. The following information presents the Company’s computations of basic and diluted EPS for the periods presented in the statements of comprehensive income (loss). Income (loss) Shares Per share amount 2020: Basic EPS $ (124 ) 3,395,521 $ (0.04 ) Effect of dil 0 0.00 Diluted EPS $ (124 ) 3,395,521 $ (0.04 ) 2019: Basic EPS $ 187 3,395,521 $ 0.06 Effect of dilutive stock options 2,514 0.00 Diluted EPS $ 187 3,398,035 $ 0.06 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, 2020, the Company had two stock-based compensation plans. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2020 | |
Investments [Abstract] | |
Investments | Note 2. Investments The Company has investments in commercial paper, Treasury Bills, and common equity securities of a private U.S. company. The commercial paper investment is in U.S. debt with ratings of F1+. The Treasury Bills have terms ranging from one month five months and are included within cash and cash equivalents on the balance sheet The Company classifies its investments in commercial paper and Treasury Bills as available-for-sale accounted for at fair value with unrealized gains and losses recognized in accumulated other comprehensive gain on the balance sheet. Equity securities are measured at fair value and unrealized gains and losses are recognized in non-operating income. The cost and estimated fair value of the investments are as follows: Cost Gross unrealized gain Gross unrealized loss Fair value December 31, 2020 Commercial Paper $ 718 $ 0 $ 0 $ 718 Treasury Bills 7,998 1 0 7,999 Equity Securities 54 0 (12 ) 42 8,770 1 (12 ) 8,759 Less Cash Equivalents 718 0 0 718 Total Investments, December 31, 2020 $ 8,052 $ 1 $ (12 ) $ 8,041 December 31, 2019 Commercial Paper $ 797 $ 0 $ 0 $ 797 Treasury Bills 7,734 0 0 7,734 Equity Securities 54 0 (9 ) 45 8,585 0 (9 ) 8,576 Less Cash Equivalents 8,531 0 0 8,531 Total Investments, December 31, 2019 $ 54 $ 0 $ (9 ) $ 45 Changes in Accumulated Other Comprehensive Income Changes in Accumulated Other Comprehensive Income are as follows: December 31, 2020 2019 Unrealized Gains Unrealized holding gains arising during the period $ 1 $ 0 Less: Reclassification of gains included in net income (loss) 0 (41 ) 1 (41 ) Deferred Taxes on Unrealized Gains: Increase in deferred taxes on unrealized gains arising during the period 0 0 Less: Reclassification of taxes on gains included in net income (loss) 0 (9 ) 0 (9 ) Net Change in Accumulated Other Comprehensive Income (Loss) $ 1 $ (32 ) |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | Note 3. Fair Value Measurements The following table prov ides info December 31, 2020 Carrying amount in Fair Value Measurement Using balance sheet Fair Value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents: Commercial paper $ 718 $ 718 $ 718 $ 0 $ 0 Treasury bills 7,999 7,999 7,999 0 0 Equity securities 42 42 0 0 42 December 31, 2019 Carrying amount in Fair Value Measurement Using balance sheet Fair Value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents: Commercial paper $ 797 $ 797 $ 797 $ 0 $ 0 7,734 7,734 7,734 0 0 Equity securities 45 45 0 0 45 The fair value of the money market funds, commercial paper, and treasury bills is based on quoted market prices in an active market. Closing prices are readily available from active markets and are used as being representative of fair value. The Company classifies these securities as level 1 The equity securities owned by the Company are investments in two non-publicly traded companies, as a previously owned non-publicly traded company spun off its wholly owned subsidiary in October 2020. Each shareholder in the parent company received the same number of shares in the spun off new company. There is an undeterminable market for each of these two companies and the Company has determined the value based on financial and other factors, which are considered level 3 The change in level 3 asse ts at fair valu curring bas Years Ended December 31, 2020 2019 Beginning Balance $ 45 $ 45 Change in value (3 ) 0 Ending Balance $ 42 $ 45 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2020 | |
Inventories [Abstract] | |
Inventories | Note 4 Inventories used in the determination of cost of goods sold are as follows: December 31, 2020 2019 Raw Materials $ 922 $ 973 Work In Process 292 383 Finished Goods 363 359 Reser ve for Obs (5 ) (20 ) Total Inventories $ 1,572 $ 1,695 |
Property And Equipment, Net
Property And Equipment, Net | 12 Months Ended |
Dec. 31, 2020 | |
Property And Equipment, Net [Abstract] | |
Property and Equipment, Net | Note 5 . Property and Equipment, Net The following is a summary of property and equipment: December 31, 2020 2019 Autos $ 23 $ 23 Equi pment 302 308 Furniture and Fixtures 501 526 Right -of-Use 30 30 Building 1,382 1,378 Land 415 415 2,653 2,680 Less Accumulated Depreciation 1,664 1,617 Total Property and Equipment $ 989 $ 1,063 Depreciation expense for the years ended December 31, 2020 and 2019 was $99 and $94, respectively. |
Net Intangible Assets
Net Intangible Assets | 12 Months Ended |
Dec. 31, 2020 | |
Net Intangible Assets [Abstract] | |
Net Intangible Assets | Note 6. Net Intangible Assets Intang ible assets incl December 31, 2020 Average Useful Lives Gross Carrying Amount Accumulated Amortization Net Carrying Amount Technology 7 Years $ 1,478 $ 1,337 $ 141 Communication Technology 3 150 63 87 Net Intangible Assets $ 1,628 $ 1,400 $ 228 December 31, 2019 Average Useful Lives Gross Carrying Amount Accumulated Amortization Net Carrying Amount Non-compete 5 Years $ 120 $ 120 $ 0 Technology 7 Years 1,478 1,126 352 Comm unica tio n Tec 3 Years 150 13 137 Net Intangible Assets $ 1,748 $ 1,259 $ 489 Amortization expense for the years ended December 31, 2020 and 2019 was $261 and $226, respectively. Estimated amortization expense over the next two years is as follows: 2021 $ 191 2022 $ 37 |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Dec. 31, 2020 | |
Accrued Expenses [Abstract] | |
Accrued Expenses | Note 7. Accrued Expenses Accrued expenses include the following: December 31, 2020 2019 Wages and Commissions $ 257 $ 359 Other 73 72 Total Accrued Expenses $ 330 $ 431 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases | Note 8. Leases The Company has a financing lease for office equipment. years The components of lease expense were as follows: Years Ended December 31, 2020 2019 Finance lease cost: Amortization of right-of-use assets $ 6 $ 6 Interest on lease liabilities 1 2 Total finance lease cost $ 7 $ 8 Supplemental balance sheet information related to leases is as follows: December 31, 2020 2019 Finance leases Prope rty and equ $ 30 $ 30 Accumulated amortization (13 ) ( ) Property and equipment, net $ 17 $ 23 Weighted average remaining lease term Finance leases 3 years Weighted average discount rate Finance leases 7.0 % Maturities of lease liabilities are as follows: Year ending December 31 2021 $ 7 2022 7 2023 6 Total lease payments 20 Less imputed interest (2 ) Total $ 18 |
Common Stock Options
Common Stock Options | 12 Months Ended |
Dec. 31, 2020 | |
Common Stock Options [Abstract] | |
Common Stock Options | Note 9. Common Stock Options Stock options The 1997 1997 2013 2013 one year Stock-based compensation Under the 2013 2013 Under the 1997 1997 There were options The following table summarizes the activity for outstanding incentive stock options under the 2013 Options Outstanding Number of Shares Weighted- Average Exercise Price Weighted- Average Remaining Term (in years) Aggregate Intrinsic Value (1) Balance at January 1, 2019 125,000 $ 3.78 8.1 Granted 0 Exercised 0 Canceled/forfeited/expired 0 Bal ance 125,000 3.78 7.1 Gra nte 0 Exercised 0 Canceled/forfeited/expired 0 B al 125,000 $ 3.78 6.1 Vested and exercisable as of December 31, 2020 115,000 $ 118 ( 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, 2020. The following table summarizes the activity for outstanding stock options under the 2013 Plan and 1997 Plan to directors of the company: Options Outstanding Number of Shares Weighted- Average Exercise Price Weighted- Average Remaining Term (in years) Aggregate Intrinsic Value (1) Balance at January 1, 2019 207,500 $ 4.62 4.4 Granted 0 Exercised 0 Canceled/forfeited/expired 0 Balance at December 31, 2019 207,500 4.62 3.4 Granted 0 Exercised 0 Canceled/forfeited/expired 0 Balance at December 31, 2020 207,500 $ 4.62 2.4 Vested and exercisable as of December 31, 2020 207,500 $ 40 (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, 2020. There were no options exercised during the years ended December 31, 2020 and 2019. As of December 31, 2020, there was approximately $9 of unrecognized compensation expense under the 2013 Plan. The Company expects to recognize this expense over the next two 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. |
Benefit Plans
Benefit Plans | 12 Months Ended |
Dec. 31, 2020 | |
Benefit Plans [Abstract] | |
Benefit Plans | Note 10. 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 ESOP 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 ESOP owns 135,490 shares of the Company’s stock at December 31, 2020. All shares held by the ESOP have been released and allocated to participants' accounts. No dividends were paid during the years ended December 31, 2020 and 2019. The ESOP had no debt to the Company at December 31, 2020 or 2019. The Company recognized compensation expense for contributions of $24 to the ESOP plan in both 2020 and 2019. 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, at its election, the Company may distribute the ESOP’s shares to the terminated participant. At December 31, 2020, 135,490 shares of the Company’s stock, with an aggregate fair market value of approximately $652, are held by ESOP participants who, if terminated, would have rights under the repurchase provisions if the Company's stock were not readily traded. The Company believes because its stock is listed on the Nasdaq Capital Market it meets the ESOP requirements and that there would not be a current obligation for it to repurchase any distributed ESOP 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 2020 or 2019. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Taxes [Abstract] | |
Income Taxes | Note 11. Income Taxes The compon ents of the income tax 2020 2019 Current: Federal $ (6 ) $ 0 State 1 1 Deferred: Fe der (43 ) ( 2 ) State 0 0 Total Federal and State Income Taxes $ (48 ) $ (1 ) The provision for incom 2020 2019 Computed “Expected” Federal Tax Expense (Benefit From) $ (36 ) $ 39 Increase (Decrease) in Taxes Resulting From: State Income Taxes, net of Federal Benefit 1 1 R&D Credits (7 ) (72 ) Permanent Differences 1 5 Other (7 ) 26 Total Federal and State Income Taxes $ (48 ) $ (1 ) The components of the net deferred tax asset consist of: 2020 2019 Deferred Tax Assets: Vacation accrual $ 29 $ 24 Allowance for doubtful accounts 2 2 Stock compensation 94 93 Bonus 0 2 Depreciation and amortization 94 50 Inventory Obsolescence 1 4 R&D credit carryforward 235 171 Valuation allowance (186 ) (121 ) Total Deferred Tax Assets 269 225 Deferred Tax Liabilities: Prepaid expenses 23 22 Total Deferred Tax Liabilities 23 22 Net Deferred Tax Asset $ 246 $ 203 R&D credits can be carried forward for twenty years for federal purposes and fifteen years in Minnesota. The Company is materially subject to the following taxing jurisdictions: U.S. and Minnesota. The tax years 2017 through 2019 remain open to examination by the Internal Revenue Service and state jurisdictions. We have no accrued interest or penalties related to uncertain tax positions as of January 1, 2020 or December 31, 2020 and uncertain tax positions are not significant. |
Nature of Business and Signif_2
Nature of Business and Significant Accounting Policies (Policy) | 12 Months Ended |
Dec. 31, 2020 | |
Nature Of Business And Significant Accounting Policies [Abstract] | |
Nature Of Business | Nature of business: 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, with the ultimate goal of manufacturing the industry-preferred product for each 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 variety of applications to monitor process machinery operations. The Company markets its products to customers located throughout the United States, Canada, Latin America, Europe, and Asia. In addition, we may periodically make strategic investments in other businesses and companies, including investments that we believe would facilitate the development of new relationships, or technology complementary to our existing products, or other investments that we believe present good opportunities for the Company and its shareholders. See Note 2 |
Use Of Estimates | Use of estimates The preparation of 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 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 receivables, valuation of deferred tax assets/liabilities, inventory, investments, stock compensation expense, and the potential estimated impact on operations due to the COVID-19 pandemic as it relates to disruptions to our supply chain and customer demand. 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 three- The Company maintains its cash and cash equivalents primarily in two bank deposit accounts, 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 due 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. As of December 31, 2020, the Company had two cu stomers that acc one 19 |
Investments | Investments Substantially all the Company’s current investments consist of government debt securities. The estimated fair value of publicly traded securities is based on reported market prices or management’s estimate of a 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 treasury bills as available-for-sale. Treasury bills 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 gain. Equity securities with readily determinable values are stated at fair value. Unrealized gains and losses on equity securities are reported in the statement of comprehensive income in non-operating income. 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 in non-operating 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, 2020 and 2019. |
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 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 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 whic h 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, 2020 and 2019 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 net realizable value. |
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 the Company to test a long-lived asset 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. The Company determines fair value 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 A utos 3 Equipment 5 - 10 Furniture and Fixtures 3 - 7 Building 7 - 40 |
Intangible Assets | Intangible assets Intangible assets are comprised of the HazardPRO technology and a communication technology. The Company amortizes the cost of these intangible assets on a straight-line method over the estimated useful lives. The Company also had a non-compete agreement that expired in February 2019. |
Revenue Recognition | Revenue recognition At contract inception, the Company assesses the goods and services promised to a customer and identifies a performance obligation for each distinct promised good or service. We also determine the transaction price for each performance obligation at contract inception. Our contracts, generally in the form of a purchase order, specify the product or service that is promised to the customer. The typical contract life is less than one month and contains a single performance obligation, to provide conforming goods or services to the customer. On some contracts, we have a second performance obligation, which typically is the initialization of the HazardPRO product. For contracts that have multiple performance obligations, we allocate the transaction price to each performance obligation using the relative stand-alone selling price. |
Advertising Costs | Advertising costs The Company expenses advertising costs as incurred. Total advertising expense was $45 and $61 in 2020 and 2019, respectively. |
Research And Development | Research and development Expenditures for research and development are expensed as incurred. The Company incurred expenses of $836 and $811 in 2020 and 2019, respectively. |
Income Taxes | Income taxes The Company presents deferred 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 deferred 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 these 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 gain (loss). Deferred taxes are reduced by a valuation allowance to the extent that realization of the related deferred tax asset is not certain. We recorded a valuation allow ance on our defe The Company recognizes the effect of income tax positions only if those positions are more likely than not to be sustained. The Company recognizes income tax positions at the largest amount that is more likely than not to be realized. The Company reflects changes in recognition or measurement in the period in which the Company's change in judgment occurs. The Company records interest and penalties related to unrecognized tax benefits in income tax expense. |
Net Income (Loss) Per Common Share | Net income (loss) 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 such as options and other contracts to issue common stock were exercised or converted into common stock. For the years ending December 31, 2020 and 2019, respectively, options to purchase 332,500 and 329,986 weighted average common shares have been excluded from the diluted weighted average shares because their effect would be anti-dilutive. The following information presents the Company’s computations of basic and diluted EPS for the periods presented in the statements of comprehensive income (loss). Income (loss) Shares Per share amount 2020: Basic EPS $ (124 ) 3,395,521 $ (0.04 ) Effect of dil 0 0.00 Diluted EPS $ (124 ) 3,395,521 $ (0.04 ) 2019: Basic EPS $ 187 3,395,521 $ 0.06 Effect of dilutive stock options 2,514 0.00 Diluted EPS $ 187 3,398,035 $ 0.06 |
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, 2020, the Company had two stock-based compensation plans. |
Nature of Business and Signif_3
Nature of Business and Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Nature Of Business And Significant Accounting Policies [Abstract] | |
Schedule Of Estimated Useful Lives | Years A utos 3 Equipment 5 - 10 Furniture and Fixtures 3 - 7 Building 7 - 40 |
Schedule Of Net Income (Loss) Per Common Share | Income (loss) Shares Per share amount 2020: Basic EPS $ (124 ) 3,395,521 $ (0.04 ) Effect of dil 0 0.00 Diluted EPS $ (124 ) 3,395,521 $ (0.04 ) 2019: Basic EPS $ 187 3,395,521 $ 0.06 Effect of dilutive stock options 2,514 0.00 Diluted EPS $ 187 3,398,035 $ 0.06 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Investments [Abstract] | |
Schedule of cost and estimated fair value of investments | Cost Gross unrealized gain Gross unrealized loss Fair value December 31, 2020 Commercial Paper $ 718 $ 0 $ 0 $ 718 Treasury Bills 7,998 1 0 7,999 Equity Securities 54 0 (12 ) 42 8,770 1 (12 ) 8,759 Less Cash Equivalents 718 0 0 718 Total Investments, December 31, 2020 $ 8,052 $ 1 $ (12 ) $ 8,041 December 31, 2019 Commercial Paper $ 797 $ 0 $ 0 $ 797 Treasury Bills 7,734 0 0 7,734 Equity Securities 54 0 (9 ) 45 8,585 0 (9 ) 8,576 Less Cash Equivalents 8,531 0 0 8,531 Total Investments, December 31, 2019 $ 54 $ 0 $ (9 ) $ 45 |
Schedule of Changes in Accumulated Other Comprehensive Income | December 31, 2020 2019 Unrealized Gains Unrealized holding gains arising during the period $ 1 $ 0 Less: Reclassification of gains included in net income (loss) 0 (41 ) 1 (41 ) Deferred Taxes on Unrealized Gains: Increase in deferred taxes on unrealized gains arising during the period 0 0 Less: Reclassification of taxes on gains included in net income (loss) 0 (9 ) 0 (9 ) Net Change in Accumulated Other Comprehensive Income (Loss) $ 1 $ (32 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Measurements [Abstract] | |
Schedule of fair value measurement on a recurring basis | December 31, 2020 Carrying amount in Fair Value Measurement Using balance sheet Fair Value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents: Commercial paper $ 718 $ 718 $ 718 $ 0 $ 0 Treasury bills 7,999 7,999 7,999 0 0 Equity securities 42 42 0 0 42 December 31, 2019 Carrying amount in Fair Value Measurement Using balance sheet Fair Value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents: Commercial paper $ 797 $ 797 $ 797 $ 0 $ 0 7,734 7,734 7,734 0 0 Equity securities 45 45 0 0 45 |
Summary of changes in level 3 assets at fair value on a recurring basis | Years Ended December 31, 2020 2019 Beginning Balance $ 45 $ 45 Change in value (3 ) 0 Ending Balance $ 42 $ 45 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Inventories [Abstract] | |
Schedule of Inventories | December 31, 2020 2019 Raw Materials $ 922 $ 973 Work In Process 292 383 Finished Goods 363 359 Reser ve for Obs (5 ) (20 ) Total Inventories $ 1,572 $ 1,695 |
Property And Equipment, Net (Ta
Property And Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property And Equipment, Net [Abstract] | |
Schedule of Property And Equipment | December 31, 2020 2019 Autos $ 23 $ 23 Equi pment 302 308 Furniture and Fixtures 501 526 Right -of-Use 30 30 Building 1,382 1,378 Land 415 415 2,653 2,680 Less Accumulated Depreciation 1,664 1,617 Total Property and Equipment $ 989 $ 1,063 |
Net Intangible Assets (Tables)
Net Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Net Intangible Assets [Abstract] | |
Schedule of Finite-Lived Intangible Assets | December 31, 2020 Average Useful Lives Gross Carrying Amount Accumulated Amortization Net Carrying Amount Technology 7 Years $ 1,478 $ 1,337 $ 141 Communication Technology 3 150 63 87 Net Intangible Assets $ 1,628 $ 1,400 $ 228 December 31, 2019 Average Useful Lives Gross Carrying Amount Accumulated Amortization Net Carrying Amount Non-compete 5 Years $ 120 $ 120 $ 0 Technology 7 Years 1,478 1,126 352 Comm unica tio n Tec 3 Years 150 13 137 Net Intangible Assets $ 1,748 $ 1,259 $ 489 |
Schedule of estimated amortization expense | 2021 $ 191 2022 $ 37 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accrued Expenses [Abstract] | |
Schedule Of Accrued Expenses | December 31, 2020 2019 Wages and Commissions $ 257 $ 359 Other 73 72 Total Accrued Expenses $ 330 $ 431 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Schedule of components of lease expense | Years Ended December 31, 2020 2019 Finance lease cost: Amortization of right-of-use assets $ 6 $ 6 Interest on lease liabilities 1 2 Total finance lease cost $ 7 $ 8 |
Schedule of supplemental balance sheet information related to leases | December 31, 2020 2019 Finance leases Prope rty and equ $ 30 $ 30 Accumulated amortization (13 ) ( ) Property and equipment, net $ 17 $ 23 Weighted average remaining lease term Finance leases 3 years Weighted average discount rate Finance leases 7.0 % |
Schedule of maturities of lease liabilities | Year ending December 31 2021 $ 7 2022 7 2023 6 Total lease payments 20 Less imputed interest (2 ) Total $ 18 |
Common Stock Options (Tables)
Common Stock Options (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Employee Stock Option [Member] | |
Schedule of stock options activity | Options Outstanding Number of Shares Weighted- Average Exercise Price Weighted- Average Remaining Term (in years) Aggregate Intrinsic Value (1) Balance at January 1, 2019 125,000 $ 3.78 8.1 Granted 0 Exercised 0 Canceled/forfeited/expired 0 Bal ance 125,000 3.78 7.1 Gra nte 0 Exercised 0 Canceled/forfeited/expired 0 B al 125,000 $ 3.78 6.1 Vested and exercisable as of December 31, 2020 115,000 $ 118 ( 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, 2020. |
Director Stock Option [Member] | |
Schedule of stock options activity | Options Outstanding Number of Shares Weighted- Average Exercise Price Weighted- Average Remaining Term (in years) Aggregate Intrinsic Value (1) Balance at January 1, 2019 207,500 $ 4.62 4.4 Granted 0 Exercised 0 Canceled/forfeited/expired 0 Balance at December 31, 2019 207,500 4.62 3.4 Granted 0 Exercised 0 Canceled/forfeited/expired 0 Balance at December 31, 2020 207,500 $ 4.62 2.4 Vested and exercisable as of December 31, 2020 207,500 $ 40 (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, 2020. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Taxes [Abstract] | |
Schedule Of Components Of The Income Tax Provision | 2020 2019 Current: Federal $ (6 ) $ 0 State 1 1 Deferred: Fe der (43 ) ( 2 ) State 0 0 Total Federal and State Income Taxes $ (48 ) $ (1 ) |
Schedule Of Effective Income Tax Rate Reconciliation | 2020 2019 Computed “Expected” Federal Tax Expense (Benefit From) $ (36 ) $ 39 Increase (Decrease) in Taxes Resulting From: State Income Taxes, net of Federal Benefit 1 1 R&D Credits (7 ) (72 ) Permanent Differences 1 5 Other (7 ) 26 Total Federal and State Income Taxes $ (48 ) $ (1 ) |
Schedule Of Net Deferred Tax Assets and Liabilities | 2020 2019 Deferred Tax Assets: Vacation accrual $ 29 $ 24 Allowance for doubtful accounts 2 2 Stock compensation 94 93 Bonus 0 2 Depreciation and amortization 94 50 Inventory Obsolescence 1 4 R&D credit carryforward 235 171 Valuation allowance (186 ) (121 ) Total Deferred Tax Assets 269 225 Deferred Tax Liabilities: Prepaid expenses 23 22 Total Deferred Tax Liabilities 23 22 Net Deferred Tax Asset $ 246 $ 203 |
Nature Of Business And Signif_4
Nature Of Business And Significant Accounting Policies (Narrative) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020USD ($)ShareBasedCompensationPlanCustomer | Dec. 31, 2019USD ($)Customer | |
Nature Of Business And Significant Accounting Policies [Abstract] | ||
Other-than-temporary impairments recognized | $ 0 | $ 0 |
Nonfinancial or financial items measured on a nonrecurring basis | 0 | |
Advertising expense | 45 | 61 |
Research and development expense | 836 | 811 |
Valuation allowance on deferred tax assets | $ 186 | $ 121 |
Number of company compensation plans | ShareBasedCompensationPlan | 2 | |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | ||
Schedule of Significant Accounting Policies [Line Items] | ||
Number of customers | Customer | 2 | 1 |
Concentration risk percentage | 21.00% | 19.00% |
Nature Of Business And Signif_5
Nature Of Business And Significant Accounting Policies (Schedule Of Estimated Useful Lives) (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Autos [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Minimum [Member] | Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Minimum [Member] | Furniture And Fixtures [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Minimum [Member] | Building [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 7 years |
Maximum [Member] | Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 10 years |
Maximum [Member] | Furniture And Fixtures [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 7 years |
Maximum [Member] | Building [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 40 years |
Nature Of Business And Signif_6
Nature Of Business And Significant Accounting Policies (Schedule Of Net Income (Loss) Per Common Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Nature Of Business And Significant Accounting Policies [Abstract] | ||
Net income (loss) | $ (124) | $ 187 |
Basic EPS, Shares | 3,395,521 | 3,395,521 |
Effect of dilutive stock options, shares | 0 | 2,514 |
Diluted EPS, Shares | 3,395,521 | 3,398,035 |
Net income (loss) per share, Basic | $ (0.04) | $ 0.06 |
Effect of dilutive stock options, per share amount | 0 | 0 |
Net income (loss) per share, Diluted | $ (0.04) | $ 0.06 |
Options excluded from the computation of diluted weighted-average shares outstanding|shares | 332,500 | 329,986 |
Investments (Narrative) (Detail
Investments (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Minimum [Member] | |
Investment In Organization [Line Items] | |
Treasury Bills, term | 1 month |
Maximum [Member] | |
Investment In Organization [Line Items] | |
Treasury Bills, term | 5 months |
Investments (Cost And Estimated
Investments (Cost And Estimated Fair Value Of Investments) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule of Available-for-sale Securities [Line Items] | |||
Cost | $ 8,052 | $ 54 | |
Gross unrealized gain | 1 | 0 | |
Gross unrealized loss | (12) | (9) | |
Fair value, investments | 8,041 | 45 | |
Less cash equivalents, Carrying amount | 1,090 | 8,785 | $ 1,057 |
Commercial Paper [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Cost | 718 | 797 | |
Gross unrealized gain | 0 | 0 | |
Gross unrealized loss | 0 | 0 | |
Fair value, investments | 718 | 797 | |
Treasury Bills [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Cost | 7,998 | 7,734 | |
Gross unrealized gain | 1 | 0 | |
Gross unrealized loss | 0 | 0 | |
Fair value, investments | 7,999 | 7,734 | |
Equity Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Cost | 54 | 54 | |
Gross unrealized gain | 0 | 0 | |
Gross unrealized loss | (12) | (9) | |
Fair value, investments | 42 | 45 | |
Debt and Equity Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Cost | 8,770 | 8,585 | |
Gross unrealized gain | 1 | 0 | |
Gross unrealized loss | (12) | (9) | |
Fair value, investments | 8,759 | 8,576 | |
Less 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 | 718 | 8,531 | |
Less cash equivalents, Fair value | $ 718 | $ 8,531 |
Investments (Schedule Of Change
Investments (Schedule Of Changes In Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Investments [Abstract] | ||
Unrealized holding gains arising during the period | $ 1 | $ 0 |
Less: Reclassification of gains included in net income (loss) | 0 | (41) |
Net Increase (decrease) in Unrealized Gains | 1 | (41) |
Increase in deferred taxes on unrealized gains arising during the period | 0 | 0 |
Less: Reclassification of taxes on gains included in net income (loss) | 0 | (9) |
Net increase (decrease) in Deferred Taxes | 0 | (9) |
Other comprehensive income (loss) | $ 1 | $ (32) |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value Measurements On A Recurring Basis) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents, Carrying amount | $ 1,090 | $ 8,785 | $ 1,057 |
Treasury Bills, carrying value | 7,999 | 0 | |
Fair value, investments | 8,041 | 45 | |
Equity Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities, Carrying amount | 42 | 45 | |
Fair value, investments | 42 | 45 | |
Equity Securities [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value, investments | 0 | 0 | |
Equity Securities [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value, investments | 0 | 0 | |
Equity Securities [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value, investments | 42 | 45 | |
Commercial Paper [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents, Carrying amount | 718 | 797 | |
Cash and cash equivalents, Fair Value | 718 | 797 | |
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 | 718 | 797 | |
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] | |||
Cash and cash equivalents, Carrying amount | 7,999 | 7,734 | |
Cash and cash equivalents, Fair Value | 7,999 | 7,734 | |
Treasury Bills [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 | 7,999 | 7,734 | |
Treasury Bills [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 | |
Treasury Bills [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 |
Fair Value Measurements (Fair_2
Fair Value Measurements (Fair Value Assets Measured on Recurring Basis Unobservable Inputs Reconciliation) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Fair Value Measurements [Abstract] | ||
Beginning Balance | $ 45 | $ 45 |
Change in value | (3) | 0 |
Ending Balance | $ 42 | $ 45 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Inventories [Abstract] | ||
Raw Materials | $ 922 | $ 973 |
Work in Process | 292 | 383 |
Finished Goods | 363 | 359 |
Reserve for Obsolescence | (5) | (20) |
Total Inventories | $ 1,572 | $ 1,695 |
Property And Equipment, Net (Na
Property And Equipment, Net (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Property And Equipment, Net [Abstract] | ||
Depreciation expense | $ 99 | $ 94 |
Property And Equipment, Net (De
Property And Equipment, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, Gross | $ 2,653 | $ 2,680 |
Less Accumulated Depreciation | 1,664 | 1,617 |
Total Property and Equipment | 989 | 1,063 |
Autos [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, Gross | 23 | 23 |
Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, Gross | 302 | 308 |
Furniture And Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, Gross | 501 | 526 |
Right-of-Use Asset [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, Gross | 30 | 30 |
Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, Gross | 1,382 | 1,378 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, Gross | $ 415 | $ 415 |
Net Intangible Assets (Schedule
Net Intangible Assets (Schedule of Finite Lived Intangible Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 1,628 | $ 1,748 |
Accumulated Amortization | 1,400 | 1,259 |
Net Carrying Amount | 228 | 489 |
Amortization expense | $ 261 | $ 226 |
Non-compete [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Average Useful Life | 5 years | |
Gross Carrying Amount | $ 120 | |
Accumulated Amortization | 120 | |
Net Carrying Amount | $ 0 | |
Unpatented Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Average Useful Life | 7 years | 7 years |
Gross Carrying Amount | $ 1,478 | $ 1,478 |
Accumulated Amortization | 1,337 | 1,126 |
Net Carrying Amount | $ 141 | $ 352 |
Communication Technolog [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Average Useful Life | 3 years | 3 years |
Gross Carrying Amount | $ 150 | $ 150 |
Accumulated Amortization | 63 | 13 |
Net Carrying Amount | $ 87 | $ 137 |
Net Intangible Assets (Schedu_2
Net Intangible Assets (Schedule of estimated amortization expense) (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Net Intangible Assets [Abstract] | |
2021 | $ 191 |
2022 | $ 37 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Accrued Expenses [Abstract] | ||
Wages and Commissions | $ 257 | $ 359 |
Other | 73 | 72 |
Total Accrued Expenses | $ 330 | $ 431 |
Leases (Schedule of components
Leases (Schedule of components of lease expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | ||
Remaining term of financing lease | 3 years | |
Finance lease cost: | ||
Amortization of right-of-use assets | $ 6 | $ 6 |
Interest on lease liabilities | 1 | 2 |
Total finance lease cost | $ 7 | $ 8 |
Leases (Schedule of supplementa
Leases (Schedule of supplemental balance sheet information related to leases) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Finance leases | ||
Property and equipment, gross | $ 30 | $ 30 |
Accumulated amortization | (13) | (7) |
Property and equipment, net | $ 17 | $ 23 |
Weighted average remaining lease term | 3 years | |
Weighted average discount rate | 7.00% |
Leases (Schedule of maturities
Leases (Schedule of maturities of lease liabilities) (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Maturities of lease liabilities - Year ending December 31 | |
2021 | $ 7 |
2022 | 7 |
2023 | 6 |
Total lease payments | 20 |
Less imputed interest | (2) |
Total | $ 18 |
Common Stock Options (Narrative
Common Stock Options (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock options fair market value | 100.00% | |
Options expiration from date of grant | 10 years | |
Options expiration from date of death | 1 year | |
Granted, Number of Shares | 0 | 0 |
Recognized compensation expense | $ 6 | $ 11 |
Exercised, Number of Shares | 0 | 0 |
Unrecognized compensation expense | $ 9 | |
Number of years to recognize remaining expense | 2 years | |
2013 Equity Incentive Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Maximum amount of options authorized | 600,000 | |
Number of shares available for purchase | 325,000 | |
Number of shares exercisable | 315,000 | |
Number of shares available for grant | 275,000 | |
1997 Stock Option Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Maximum amount of options authorized | 450,000 | |
Number of shares available for purchase | 7,500 | |
Number of shares exercisable | 7,500 |
Common Stock Options (Schedule
Common Stock Options (Schedule Of Stock Options Activity) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted, Number of Shares | 0 | 0 | ||
Exercised, Number of Shares | 0 | 0 | ||
Employee Stock Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Beginning balance, Number of Shares | 125,000 | 125,000 | ||
Granted, Number of Shares | 0 | 0 | ||
Exercised, Number of Shares | 0 | 0 | ||
Canceled/forfeited/expired, Number of Shares | 0 | 0 | ||
Ending balance, Number of Shares | 125,000 | 125,000 | 125,000 | |
Number of shares vested | 115,000 | |||
Beginning balance, Weighted-Average Exercise Price | $ 3.78 | $ 3.78 | ||
Ending balance, Weighted-Average Exercise Price | $ 3.78 | $ 3.78 | $ 3.78 | |
Balance, Weighted-Average Remaining Contractual Term | 6 years 1 month 6 days | 7 years 1 month 6 days | 8 years 1 month 6 days | |
Vested and exercisable, Aggregate Intrinsic Value | [1] | $ 118 | ||
Director Stock Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Beginning balance, Number of Shares | 207,500 | 207,500 | ||
Granted, Number of Shares | 0 | 0 | ||
Exercised, Number of Shares | 0 | 0 | ||
Canceled/forfeited/expired, Number of Shares | 0 | 0 | ||
Ending balance, Number of Shares | 207,500 | 207,500 | 207,500 | |
Number of shares vested | 207,500 | |||
Beginning balance, Weighted-Average Exercise Price | $ 4.62 | $ 4.62 | ||
Ending balance, Weighted-Average Exercise Price | $ 4.62 | $ 4.62 | $ 4.62 | |
Balance, Weighted-Average Remaining Contractual Term | 2 years 4 months 24 days | 3 years 4 months 24 days | 4 years 4 months 24 days | |
Vested and exercisable, Aggregate Intrinsic Value | [1] | $ 40 | ||
[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, 2020. |
Benefit Plans (Details)
Benefit Plans (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020USD ($)shares | Dec. 31, 2019USD ($) | |
Benefit Plans [Abstract] | ||
Minimum hours employees required to work per year to qualify for ESOP | 1,000 | |
Common shares owned by ESOP | shares | 135,490 | |
Dividends Paid to ESOP | $ 0 | $ 0 |
Employee Stock Ownership Plan Debt to Company | 0 | 0 |
ESOP compensation expense | 24 | 24 |
Common shares owned by ESOP, fair market value | 652 | |
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, 2020 | Dec. 31, 2019 | |
Income Taxes [Abstract] | ||
Current, Federal | $ (6) | $ 0 |
Current, State | 1 | 1 |
Deferred, Federal | (43) | (2) |
Deferred, State | 0 | 0 |
Total Federal and State Income Taxes | $ (48) | $ (1) |
Income Taxes (Schedule Of Effec
Income Taxes (Schedule Of Effective Income Tax Rate Reconciliation) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Taxes [Abstract] | ||
Computed "Expected" Federal Tax Expense (Benefit From) | $ (36) | $ 39 |
State Income Taxes, net of Federal Benefit | 1 | 1 |
R&D Credits | (7) | (72) |
Permanent Differences | 1 | 5 |
Other | (7) | 26 |
Total Federal and State Income Taxes | (48) | (1) |
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, 2020 | Dec. 31, 2019 |
Income Taxes [Abstract] | ||
Vacation Accrual | $ 29 | $ 24 |
Allowance for Doubtful Accounts | 2 | 2 |
Stock Compensation | 94 | 93 |
Bonus | 0 | 2 |
Depreciation and Amortization | 94 | 50 |
Inventory Obsolescence | 1 | 4 |
R&D Credit Carryforward | 235 | 171 |
Valuation allowance | (186) | (121) |
Total Deferred Tax Assets | 269 | 225 |
Prepaid Expenses | 23 | 22 |
Total Deferred Tax Liabilities | 23 | 22 |
Net Deferred Tax Asset | $ 246 | $ 203 |