Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2021 | Jul. 31, 2021 | |
Cover [Abstract] | ||
Entity Registrant Name | DATA I/O CORPORATION | |
Entity Central Index Key | 0000351998 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Small Business | true | |
Entity Shell Company | false | |
Entity Emerging Growth Company | false | |
Entity Current Reporting Status | Yes | |
Document Period End Date | Jun. 30, 2021 | |
Entity Filer Category | Non-accelerated Filer | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2021 | |
Entity Common Stock Shares Outstanding | 8,619,522 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 0-10394 | |
Entity Incorporation State Country Code | WA | |
Entity Tax Identification Number | 91-0864123 | |
Entity Address Address Line 1 | 6645 185th Ave NE | |
Entity Address Address Line 2 | Suite 100 | |
Entity Address City Or Town | Redmond | |
Entity Address State Or Province | WA | |
Entity Address Postal Zip Code | 98052 | |
City Area Code | 425 | |
Local Phone Number | 881-6444 | |
Security 12b Title | Common Stock | |
Trading Symbol | DAIO | |
Security Exchange Name | NASDAQ | |
Entity Interactive Data Current | Yes |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 13,013 | $ 14,167 |
Trade accounts receivable, net of allowance for doubtful accounts of $83 and $66, respectively | 4,502 | 2,494 |
Inventories | 5,611 | 5,270 |
Other current assets | 1,179 | 1,319 |
TOTAL CURRENT ASSETS | 24,305 | 23,250 |
Property, plant and equipment - net | 971 | 1,216 |
Other assets | 1,614 | 1,126 |
TOTAL ASSETS | 26,890 | 25,592 |
CURRENT LIABILITIES: | ||
Accounts payable | 1,720 | 1,245 |
Accrued compensation | 1,700 | 1,509 |
Deferred revenue | 1,340 | 1,068 |
Other accrued liabilities | 1,293 | 1,307 |
Income taxes payable | 93 | 62 |
TOTAL CURRENT LIABILITIES | 6,146 | 5,191 |
Operating lease liabilities non | 1,085 | 588 |
Long-term other payables | 161 | 174 |
COMMITMENTS | 0 | 0 |
STOCKHOLDERS' EQUITY | ||
Preferred stock - Authorized, 5,000,000 shares, including 200,000 shares of Series A Junior ParticipatingIssued and outstanding, none | 0 | 0 |
Common stock, at stated value - Authorized, 30,000,000 sharesIssued and outstanding, 8,619,522 shares as of June 30, 2021 and 8,416,335 shares as of December 31, 2020 | 20,320 | 20,071 |
Accumulated earnings (deficit) | (1,818) | (1,456) |
Accumulated other comprehensive income (loss) | 996 | 1,024 |
TOTAL STOCKHOLDERS' EQUITY | 19,498 | 19,639 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 26,890 | $ 25,592 |
CONSOLIDATED BALANCE SHEETS) (P
CONSOLIDATED BALANCE SHEETS) (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
CURRENT ASSETS: | ||
Trade accounts receivable, net of allowance | $ 83 | $ 66 |
STOCKHOLDERS' EQUITY | ||
Preferred stock, authorized shares | 5,000,000 | 5,000,000 |
Common stock, authorized shares | 30,000,000 | 30,000,000 |
Common stock, issued shares | 8,619,522 | 8,416,335 |
Common stock, outstanding shares | 8,619,522 | 8,416,335 |
Series A Junior Participating | ||
STOCKHOLDERS' EQUITY | ||
Preferred stock, authorized shares | 200,000 | 200,000 |
Preferred stock, issued shares | 0 | 0 |
Preferred stock, outstanding shares | 0 | 0 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) | ||||
Net sales | $ 6,733,000 | $ 4,655,000 | $ 12,748,000 | $ 9,440,000 |
Cost of goods sold | 2,896,000 | 2,216,000 | 5,573,000 | 4,217,000 |
Gross margin | 3,837,000 | 2,439,000 | 7,175,000 | 5,223,000 |
Operating expenses: | ||||
Research and development | 1,673,000 | 1,614,000 | 3,279,000 | 3,196,000 |
Selling, general and administrative | 2,054,000 | 1,703,000 | 4,116,000 | 3,514,000 |
Total operating expenses | 3,727,000 | 3,317,000 | 7,395,000 | 6,710,000 |
Operating income (loss) | 110,000 | (878,000) | (220,000) | (1,487,000) |
Non-operating income: | ||||
Interest income | 0 | 1,000 | 3,000 | 9,000 |
Foreign currency transaction gain (loss) | (64,000) | (83,000) | (38,000) | (31,000) |
Total non-operating income (loss) | (64,000) | (82,000) | (35,000) | (22,000) |
Income (loss) before income taxes | 46,000 | (960,000) | (255,000) | (1,509,000) |
Income tax (expense) benefit | (75,000) | (97,000) | (107,000) | (102,000) |
Net income (loss) | $ (29,000) | $ (1,057,000) | $ (362,000) | $ (1,611,000) |
Basic earnings (loss) per share | $ 0 | $ (0.13) | $ (0.04) | $ (0.19) |
Diluted earnings (loss) per share | $ 0 | $ (0.13) | $ (0.04) | $ (0.19) |
Weighted-average basic shares | 8,517 | 8,302 | 8,469 | 8,261 |
Weighted-average diluted shares | 8,517 | 8,302 | 8,469 | 8,261 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) | ||||
Net income (loss) | $ (29) | $ (1,057) | $ (362) | $ (1,611) |
Other comprehensive income (loss): | ||||
Foreign currency translation gain (loss) | 152 | 85 | 4,210 | (180) |
Comprehensive income (loss) | $ 123 | $ (972) | $ 3,848 | $ (1,791) |
CONSOLIDATED STATEMENT OF STOCK
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (UNAUDITED) - USD ($) | Total | Common Stock | Retained Earnings (Accumulated Deficit) | Accumulated other comprehensive loss |
Balance, shares at Dec. 31, 2019 | 8,212,748 | |||
Balance, amount at Dec. 31, 2019 | $ 21,530,000 | $ 18,748,000 | $ 2,508,000 | $ 274,000 |
Repurchased shares | 0 | $ 0 | ||
Stock awards issued, net of tax withheld, shares | 5,190 | |||
Stock awards issued, net of tax withheld, amount | (10,000) | $ (10,000) | 0 | 0 |
Issuance of stock through: ESPP, shares | 3,509 | |||
Issuance of stock through: ESPP, amount | 14,000 | $ 14,000 | 0 | 0 |
Share-based compensation | 249,000 | 249,000 | 0 | 0 |
Net income (loss) | (554,000) | 0 | (554,000) | 0 |
Other comprehensive income (loss) | (265,000) | $ 0 | 0 | (265,000) |
Balance, shares at Mar. 31, 2020 | 8,221,447 | |||
Balance, amount at Mar. 31, 2020 | 20,964,000 | $ 19,001,000 | 1,954,000 | 9,000 |
Balance, shares at Dec. 31, 2019 | 8,212,748 | |||
Balance, amount at Dec. 31, 2019 | 21,530,000 | $ 18,748,000 | 2,508,000 | 274,000 |
Net income (loss) | (1,611,000) | |||
Balance, shares at Jun. 30, 2020 | 8,390,943 | |||
Balance, amount at Jun. 30, 2020 | 20,310,000 | $ 19,319,000 | 897,000 | 94,000 |
Balance, shares at Mar. 31, 2020 | 8,221,447 | |||
Balance, amount at Mar. 31, 2020 | 20,964,000 | $ 19,001,000 | 1,954,000 | 9,000 |
Repurchased shares | 0 | $ 0 | ||
Stock awards issued, net of tax withheld, shares | 169,496 | |||
Stock awards issued, net of tax withheld, amount | (163,000) | $ (163,000) | 0 | 0 |
Issuance of stock through: ESPP, amount | 0 | 0 | 0 | 0 |
Share-based compensation | 481,000 | 481,000 | 0 | 0 |
Net income (loss) | (1,057,000) | 0 | (1,057,000) | 0 |
Other comprehensive income (loss) | 85,000 | $ 0 | 0 | 85,000 |
Balance, shares at Jun. 30, 2020 | 8,390,943 | |||
Balance, amount at Jun. 30, 2020 | 20,310,000 | $ 19,319,000 | 897,000 | 94,000 |
Balance, shares at Dec. 31, 2020 | 8,416,335 | |||
Balance, amount at Dec. 31, 2020 | 19,639,000 | $ 20,071,000 | (1,456,000) | 1,024,000 |
Repurchased shares | 0 | $ 0 | ||
Stock awards issued, net of tax withheld, shares | 2,089 | |||
Stock awards issued, net of tax withheld, amount | (4,000) | $ (4,000) | 0 | 0 |
Issuance of stock through: ESPP, shares | 3,175 | |||
Issuance of stock through: ESPP, amount | 16,000 | $ 16,000 | 0 | 0 |
Share-based compensation | 278,000 | 278,000 | 0 | 0 |
Net income (loss) | (333,000) | 0 | (333,000) | 0 |
Other comprehensive income (loss) | (180,000) | $ 0 | 0 | (180,000) |
Balance, shares at Mar. 31, 2021 | 8,421,599 | |||
Balance, amount at Mar. 31, 2021 | 19,416,000 | $ 20,361,000 | (1,789,000) | 844,000 |
Balance, shares at Dec. 31, 2020 | 8,416,335 | |||
Balance, amount at Dec. 31, 2020 | 19,639,000 | $ 20,071,000 | (1,456,000) | 1,024,000 |
Net income (loss) | (362,000) | |||
Balance, shares at Jun. 30, 2021 | 8,619,522 | |||
Balance, amount at Jun. 30, 2021 | 19,498,000 | $ 20,320,000 | (1,818,000) | 996,000 |
Balance, shares at Mar. 31, 2021 | 8,421,599 | |||
Balance, amount at Mar. 31, 2021 | 19,416,000 | $ 20,361,000 | (1,789,000) | 844,000 |
Repurchased shares | 0 | $ 0 | ||
Stock awards issued, net of tax withheld, shares | 197,923 | |||
Stock awards issued, net of tax withheld, amount | (442,000) | $ (442,000) | 0 | 0 |
Issuance of stock through: ESPP, amount | 0 | 0 | 0 | 0 |
Share-based compensation | 401,000 | 401,000 | 0 | 0 |
Net income (loss) | (29,000) | 0 | (29,000) | 0 |
Other comprehensive income (loss) | 152,000 | $ 0 | 0 | 152,000 |
Balance, shares at Jun. 30, 2021 | 8,619,522 | |||
Balance, amount at Jun. 30, 2021 | $ 19,498,000 | $ 20,320,000 | $ (1,818,000) | $ 996,000 |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income (loss) | $ (362) | $ (1,611) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 350 | 446 |
Equipment transferred to cost of goods sold | 131 | 52 |
Share-based compensation | 680 | 730 |
Net change in: | ||
Trade accounts receivable | (2,031) | 1,262 |
Inventories | (20) | 273 |
Other current assets | 139 | 1,076 |
Accounts payable and accrued liabilities | 626 | (541) |
Deferred revenue | 273 | (77) |
Other long-term liabilities | (222) | (264) |
Deposits and other long-term assets | 280 | 912 |
Net cash provided by (used in) operating activities | (156) | 106 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property, plant and equipment | (235) | (432) |
Cash provided by (used in) investing activities | (235) | (432) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Net proceeds from issuance of common stock, less payments for shares withheld to cover tax | (431) | (159) |
Cash provided by (used in) financing activities | (431) | (159) |
Increase (decrease) in cash and cash equivalents | (822) | (485) |
Effects of exchange rate changes on cash | (332) | (178) |
Cash and cash equivalents at beginning of period | 14,167 | 13,936 |
Cash and cash equivalents at end of period | 13,013 | 13,273 |
Supplemental disclosure of cash flow information: | ||
Income taxes | $ 78 | $ 69 |
FINANCIAL STATEMENT PREPARATION
FINANCIAL STATEMENT PREPARATION | 6 Months Ended |
Jun. 30, 2021 | |
FINANCIAL STATEMENT PREPARATION | |
NOTE 1 - FINANCIAL STATEMENT PREPARATION | NOTE 1 - FINANCIAL STATEMENT PREPARATION Data I/O Corporation (“Data I/O”, “We”, “Our”, “Us”) prepared the financial statements as of June 30, 2021 and June 30, 2020 according to the rules and regulations of the Securities and Exchange Commission (“SEC”). These statements are unaudited but, in the opinion of management, include all adjustments (consisting of normal recurring adjustments and accruals) necessary to present fairly the results for the periods presented. The balance sheet at December 31, 2020 has been derived from the audited financial statements at that date. We have condensed or omitted certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America according to such SEC rules and regulations. Operating results for the six months ended June 30, 2021 are not necessarily indicative of the results that may be expected for the year ending December 31, 2021. These financial statements should be read in conjunction with the annual audited financial statements and the accompanying notes included in our Form 10-K for the year ended December 31, 2020. Revenue Recognition Topic 606 provides a single, principles-based five-step model to be applied to all contracts with customers. It generally provides for the recognition of revenue in an amount that reflects the consideration to which the Company expects to be entitled, net of allowances for estimated returns, discounts or sales incentives, as well as taxes collected from customers when control over the promised goods or services are transferred to the customer. We expense contract acquisition costs, primarily sales commissions, for contracts with terms of one year or less and will capitalize and amortize incremental costs with terms that exceed one year. During 2021 and 2020, the impact of capitalization of incremental costs for obtaining contracts was immaterial. We exclude sales, use, value added, some excise taxes and other similar taxes from the measurement of the transaction price. We recognize revenue upon transfer of control of the promised products or services to customers in an amount that reflects the consideration we expect to receive in exchange for those products or services. We have determined that our programming equipment has reached a point of maturity and stability such that product acceptance can be assured by testing at the factory prior to shipment and that the installation meets the criteria to be a separate performance obligation. These systems are standard products with published product specifications and are configurable with standard options. The evidence that these systems could be deemed as accepted was based upon having standardized factory production of the units, results from batteries of tests of product performance to our published specifications, quality inspections and installation standardization, as well as past product operation validation with the customer and the history provided by our installed base of products upon which the current versions were based. The revenue related to products requiring installation that is perfunctory is recognized upon transfer of control of the product to customers, which generally is at the time of shipment. Installation that is considered perfunctory includes any installation that is expected to be performed by other parties, such as distributors, other vendors, or the customers themselves. This considers the complexity, skill and training needed as well as customer expectations regarding installation. We enter into arrangements with multiple performance obligations that arise during the sale of a system that includes an installation component, a service and support component and a software maintenance component. We allocate the transaction price of each element based on relative selling prices. Relative selling price is based on the selling price of the standalone system. For the installation and service and support performance obligations, we use the value of the discount given to distributors who perform these components. For software maintenance performance obligations, we use what we charge for annual software maintenance renewals after the initial year the system is sold. Revenue is recognized on the system sale based on shipping terms, installation revenue is recognized after the installation is performed, and hardware service and support and software maintenance revenue is recognized ratably over the term of the agreement, typically one year. Deferred revenue includes service, support and maintenance contracts and represents the undelivered performance obligation of agreements that are typically for one year. When we sell software separately, we recognize revenue upon the transfer of control of the software, which is generally upon shipment, provided that only inconsequential performance obligations remain on our part and substantive acceptance conditions, if any, have been met. We recognize revenue when there is an approved contract that both parties are committed to perform, both parties rights have been identified, the contract has substance, collection of substantially all the consideration is probable, the transaction price has been determined and allocated over the performance obligations, the performance obligations including substantive acceptance conditions, if any, in the contract have been met, the obligation is not contingent on resale of the product, the buyer’s obligation would not be changed in the event of theft, physical destruction or damage to the product, the buyer acquiring the product for resale has economic substance apart from us and we do not have significant obligations for future performance to directly bring about the resale of the product by the buyer. We establish a reserve for sales returns based on historical trends in product returns and estimates for new items. Payment terms are generally 30 days from shipment. We transfer certain products out of service from their internal use and make them available for sale. The products transferred are typically our standard products in one of the following areas: service loaners, rental or test units; engineering test units; or sales demonstration equipment. Once transferred, the equipment is sold by our regular sales channels as used equipment inventory. These product units often involve refurbishing and an equipment warranty, and are conducted as sales in our normal and ordinary course of business. The transfer amount is the product unit’s net book value and the sale transaction is accounted for as revenue and cost of goods sold. The following table represents our revenues by major categories: Three Months Ended Six Months Ended Net sales by type June 30, Change June 30, June 30, Change June 30, (in thousands) Equipment $ 4,130 66.8 % $ 2,476 $ 7,477 47.7 % $ 5,063 Adapter 1,942 46.7 % 1,324 3,850 44.2 % 2,669 Software and Maintenance 661 (22.7 %) 855 1,421 (16.8 %) 1,708 Total $ 6,733 44.6 % $ 4,655 $ 12,748 35.0 % $ 9,440 Share-Based Compensation All stock-based compensation awards are measured based on estimated fair values on the date of grant and recognized as compensation expense on the straight-line single-option method. Our share-based compensation is reduced for estimated forfeitures at the time of grant and revised as necessary in subsequent periods if actual forfeitures differ from those estimates. Income Tax Income taxes are computed at current enacted tax rates, less tax credits using the asset and liability method. Deferred taxes are adjusted both for items that do not have tax consequences and for the cumulative effect of any changes in tax rates from those previously used to determine deferred tax assets or liabilities. Tax provisions include amounts that are currently payable, changes in deferred tax assets and liabilities that arise because of temporary differences between the timing of when items of income and expense are recognized for financial reporting and income tax purposes, and any changes in the valuation allowance caused by a change in judgment about the realization of the related deferred tax assets. A valuation allowance is established when necessary to reduce deferred tax assets to amounts expected to be realized. The CARES Act, enacted in Q1 2020, accelerated the AMT credit refund of $640,000, which is carried as a current asset. COVID-19 In 2021, we have continued to react to and manage our business relative to the COVID-19 pandemic. During 2020, COVID-19 had impacted all aspects of our business, from customer demand, to supply chain integrity, employee safety, business processes, and financial management. As a global company, we had to manage each of these while working within the guidelines of local and national policy in the U.S., China and Germany. Our philosophy at the start of the outbreak was simple: 1. Keep our people and their families safe; 2. Keep our facilities safe and operational while we serve our customers as an essential business; and 3. Preserve cash We have managed the COVID-19 impact successfully to date, with no known employee transmissions in the workplace and significant preservation of our cash and working capital. Our resilient supply chain model kept our facilities in Shanghai, China and Redmond, Washington open, and serving customers globally. We face continued international travel restrictions, shipping delays, and inability to meet with customers in person. As business has recovered we have been able to respond by having the working capital needed and the workforce in place. In the second quarter, we experienced a surge of demand as customers resumed operations and adding capacity. In supply chains around the world with the re-openings and now, in a believed ripple effect, factories are experiencing the impact of chip shortages on their production plans. This appears to be a shorter-term issue and the outlook for automotive electronics remains strong for a decade. Waves of COVID-19 infection rates and variants have kept or re-imposed revised travel restrictions. Customers largely have not permitted in-person sales and other visits. Converting these interactions to remote and virtual means has meant implementing new processes and technology usage. In production, in addition to adding protective health measures for our employees, we have focused on supply chain resilience and duplicating production capability for some products in both our Shanghai, China and Redmond, USA facilities. We implemented additional supplier financial and other monitoring, as well as adding additional local suppliers and increasing inventory stock levels of key parts. Other than production employees who necessarily are onsite, most other Redmond employees are working remotely with hybrid flexibility to be onsite as desired or needed and this is expected to continue through the summer. China employees are generally onsite. We believe our exposure to COVID-19 risks are reduced by vaccination coverage, which is mid 90% in Redmond with our China and Germany facilities not far behind. New Accounting Pronouncements In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-13, "Measurement of Credit Losses on Financial Instruments," which amends the impairment model by requiring entities to use a forward-looking approach based on expected losses rather than incurred losses to estimate credit losses on certain types of financial instruments. We are planning to adopt the standard effective for years after December 15, 2022 and do not expect this to have a material impact on our financial statements. |
INVENTORIES
INVENTORIES | 6 Months Ended |
Jun. 30, 2021 | |
INVENTORIES | |
NOTE 2 - INVENTORIES | NOTE 2 – INVENTORIES Inventories consisted of the following components: June 30, December 31, (in thousands) Raw material $ 3,439 $ 3,143 Work-in-process 1,377 1,204 Finished goods 795 923 Inventories $ 5,611 $ 5,270 |
PROPERTY PLANT AND EQUIPMENT NE
PROPERTY PLANT AND EQUIPMENT NET | 6 Months Ended |
Jun. 30, 2021 | |
PROPERTY PLANT AND EQUIPMENT NET | |
NOTE 3 - PROPERTY, PLANT AND EQUIPMENT, NET | NOTE 3 – PROPERTY, PLANT AND EQUIPMENT, NET Property and equipment consisted of the following components: June 30, December 31, (in thousands) Leasehold improvements $ 425 $ 421 Equipment 5,570 5,625 Sales demonstration equipment 802 963 6,797 7,009 Less accumulated depreciation 5,826 5,793 Property and equipment, net $ 971 $ 1,216 |
OTHER ACCRUED LIABILITIES
OTHER ACCRUED LIABILITIES | 6 Months Ended |
Jun. 30, 2021 | |
OTHER ACCRUED LIABILITIES | |
NOTE 4 - OTHER ACCRUED LIABILITIES | NOTE 4 – OTHER ACCRUED LIABILITIES Other accrued liabilities consisted of the following components: June 30, December 31, (in thousands) Lease liability - short term $ 604 $ 673 Product warranty 383 371 Sales return reserve 71 61 Other taxes 127 109 Other 108 93 Other accrued liabilities $ 1,293 $ 1,307 The changes in our product warranty liability for the six months ending June 30, 2021 are as follows: June 30, (in thousands) Liability, beginning balance $ 371 Net expenses 383 Warranty claims (383 ) Accrual revisions 12 Liability, ending balance $ 383 |
LEASES
LEASES | 6 Months Ended |
Jun. 30, 2021 | |
LEASES | |
NOTE 5 - LEASES | NOTE 5 – LEASES Our leasing arrangements are primarily for facility leases we use to conduct our operations. The following table presents our future lease payments for long-term operating leases as of June 30, 2021: Operating (in thousands) 2021 (remaining) $ 412 2022 678 2023 429 2024 368 2025 67 Thereafter 82 Total $ 2,036 Less Imputed interest (346 ) Total operating lease liabilities $ 1,690 Cash paid for operating lease liabilities for the three and six months ended June 30, 2021 were $202,000 and $402,000, respectively. There were three new operating leases during the six months ended June 30, 2021. Cash paid for operating lease liabilities for the three and six months ended June 30, 2020 were $189,000 and $374,000, respectively. The following table presents supplemental balance sheet information related to leases as of June 30, 2021: Balance at June 30, Balance at December 31, (in thousands) Right-of-use assets (Long-term other assets) $ 1,569 $ 1,081 Lease liability-short term (Other accrued liabilities) 604 673 Lease liability-long term (Operating lease liabilities) 1,086 588 At June 30, 2021, the weighted average remaining lease term is 2.83 years and the weighted average discount rate used is 5%. The components of our lease expense for the three and six months ended June 30, 2021 include operating lease costs of $172,000 and $343,000, respectively, and short-term lease costs of $8,000 and $15,000, respectively. The components of our lease expense for the three and six months ended June 30, 2020 include operating lease costs of $164,000 and $326,000, respectively, and short-term lease costs of $8,000 and $16,000, respectively. Our lease for the Redmond, Washington headquarters facility runs through July 31, 2022. This lease is for approximately 20,460 square feet. Our lease for a facility located in Shanghai, China ran through October 31, 2021. In April 2021, we signed a lease extension effective November 1, 2021 that extends the lease through October 31, 2024. This lease is for approximately 19,400 square feet. Our lease near Munich, Germany runs through February 28, 2022 with a five year extension available. This lease is for approximately 4,895 square feet. |
OTHER COMMITMENTS
OTHER COMMITMENTS | 6 Months Ended |
Jun. 30, 2021 | |
OTHER COMMITMENTS | |
NOTE 6 - OTHER COMMITMENTS | NOTE 6 – OTHER COMMITMENTS We have purchase obligations for inventory and production costs as well as other obligations such as capital expenditures, service contracts, marketing, and development agreements. Arrangements are considered purchase obligations if a contract specifies all significant terms, including fixed or minimum quantities to be purchased, a pricing structure and approximate timing of the transaction. Most arrangements are cancelable without a significant penalty, and with short notice, typically less than 90 days. At June 30, 2021, the purchase commitments and other obligations totaled $2.5 million of which all but $81,000 are expected to be paid over the next twelve months. |
CONTINGENCIES
CONTINGENCIES | 3 Months Ended |
Mar. 31, 2021 | |
OTHER COMMITMENTS | |
NOTE 7 - CONTINGENCIES | NOTE 7 – CONTINGENCIES As of June 30, 2021, we were not a party to any legal proceedings or aware of any indemnification agreement claims, the adverse outcome of which in management’s opinion, individually or in the aggregate, would have a material adverse effect on our results of operations or financial position. |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2021 | |
OTHER COMMITMENTS | |
NOTE - INCOME TAXES | NOTE 8 – INCOME TAXES Income tax benefit (expense) for the second quarter of both 2021 and 2020, primarily related to foreign and state taxes. The effective tax rate differed from the statutory tax rate primarily due to the effect of valuation allowances, as well as foreign taxes. We have a valuation allowance of $9.5 million as of June 30, 2021. As of June 30, for both 2021 and 2020, our deferred tax assets and valuation allowance have been reduced by approximately $376,000 and $363,000, respectively, associated with the requirements of accounting for uncertain tax positions. Given the uncertainty created by our loss history, as well as the volatile and uncertain economic outlook for our industry and capital spending, we have limited the recognition of net deferred tax assets including our net operating losses and credit carryforwards and continue to maintain a valuation allowance for the full amount of the net deferred tax asset balance. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 2021 | |
EARNINGS PER SHARE | |
NOTE 9 - EARNINGS PER SHARE | NOTE 9 – EARNINGS PER SHARE Basic earnings per share is calculated based on the weighted average number of common shares outstanding during each period. Diluted earnings per share is calculated based on these same weighted average shares outstanding plus the effect of potential shares issuable upon assumed exercise of stock options based on the treasury stock method. Potential shares issuable upon the exercise of stock options are excluded from the calculation of diluted earnings per share to the extent their effect would be anti-dilutive. The following table sets forth the computation of basic and diluted earnings per share: Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, (in thousands except per share data) Numerator for basic and diluted earnings (loss) per share: Net income (loss) $ (29 ) $ (1,057 ) $ (362 ) $ (1,611 ) Denominator for basic earnings (loss) per share: Weighted-average shares 8,517 8,302 8,469 8,261 Employee stock options and awards - - - - Denominator for diluted earnings (loss) per share: Adjusted weighted-average shares & assumed conversions of stock options 8,517 8,302 8,469 8,261 Basic and diluted earnings (loss) per share: Basic earnings (loss) per share $ 0.00 $ (0.13 ) $ (0.04 ) $ (0.19 ) Diluted earnings (loss) per share $ 0.00 $ (0.13 ) $ (0.04 ) $ (0.19 ) As all periods presented are net loss, excluded from the computation of diluted earnings per share were weighted average options to purchase shares that were anti-dilutive. For the three months ending June 30, 2021, there were no weighted average options to purchase antidilutive shares and for the six months ending June 30, 2021 there were 24,448 weighted average options to purchase antidilutive shares, For the three and six months ending June 30, 2020, respectively, there were 25,000 weighted average options to purchase antidilutive shares. |
SHAREBASED COMPENSATION
SHAREBASED COMPENSATION | 6 Months Ended |
Jun. 30, 2021 | |
SHAREBASED COMPENSATION | |
NOTE 10 - SHARE-BASED COMPENSATION | NOTE 10 – SHARE-BASED COMPENSATION For share-based awards granted, we have recognized compensation expense based on the estimated grant date fair value method. For these awards we have recognized compensation expense using a straight-line amortization method reduced for estimated forfeitures. The impact on our results of operations of recording share-based compensation, net of forfeitures, for the three and six months ended June 30, 2021 and 2020, respectively, were as follows: Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, (in thousands) Cost of goods sold $ 16 $ 15 $ 26 $ 21 Research and development 101 132 172 196 Selling, general and administrative 284 334 482 513 Total share-based compensation $ 401 $ 481 $ 680 $ 730 Equity awards granted during the three and six months ended June 30, 2021 and 2020 were as follows: Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, Restricted Stock Units 254,400 376,200 256,400 376,200 Stock Options - - - - Non-employee directors Restricted Stock Units (“RSUs”) vest over one year and options vest over three years and have a six-year exercise period. Employee RSUs typically vest over four years and employee Non-Qualified stock options typically vest quarterly over 4 years and have a six-year exercise period. The remaining unamortized expected future equity compensation expense and remaining amortization period associated with unvested option grants, restricted stock awards and restricted stock unit awards at June 30, 2021 are: June 30, Unamortized future equity compensation expense (in thousands) $ 2,844 Remaining weighted average amortization period (in years) 2.92 |
FINANCIAL STATEMENT PREPARATI_2
FINANCIAL STATEMENT PREPARATION (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
FINANCIAL STATEMENT PREPARATION | |
Revenue Recognition | Topic 606 provides a single, principles-based five-step model to be applied to all contracts with customers. It generally provides for the recognition of revenue in an amount that reflects the consideration to which the Company expects to be entitled, net of allowances for estimated returns, discounts or sales incentives, as well as taxes collected from customers when control over the promised goods or services are transferred to the customer. We expense contract acquisition costs, primarily sales commissions, for contracts with terms of one year or less and will capitalize and amortize incremental costs with terms that exceed one year. During 2021 and 2020, the impact of capitalization of incremental costs for obtaining contracts was immaterial. We exclude sales, use, value added, some excise taxes and other similar taxes from the measurement of the transaction price. We recognize revenue upon transfer of control of the promised products or services to customers in an amount that reflects the consideration we expect to receive in exchange for those products or services. We have determined that our programming equipment has reached a point of maturity and stability such that product acceptance can be assured by testing at the factory prior to shipment and that the installation meets the criteria to be a separate performance obligation. These systems are standard products with published product specifications and are configurable with standard options. The evidence that these systems could be deemed as accepted was based upon having standardized factory production of the units, results from batteries of tests of product performance to our published specifications, quality inspections and installation standardization, as well as past product operation validation with the customer and the history provided by our installed base of products upon which the current versions were based. The revenue related to products requiring installation that is perfunctory is recognized upon transfer of control of the product to customers, which generally is at the time of shipment. Installation that is considered perfunctory includes any installation that is expected to be performed by other parties, such as distributors, other vendors, or the customers themselves. This considers the complexity, skill and training needed as well as customer expectations regarding installation. We enter into arrangements with multiple performance obligations that arise during the sale of a system that includes an installation component, a service and support component and a software maintenance component. We allocate the transaction price of each element based on relative selling prices. Relative selling price is based on the selling price of the standalone system. For the installation and service and support performance obligations, we use the value of the discount given to distributors who perform these components. For software maintenance performance obligations, we use what we charge for annual software maintenance renewals after the initial year the system is sold. Revenue is recognized on the system sale based on shipping terms, installation revenue is recognized after the installation is performed, and hardware service and support and software maintenance revenue is recognized ratably over the term of the agreement, typically one year. Deferred revenue includes service, support and maintenance contracts and represents the undelivered performance obligation of agreements that are typically for one year. When we sell software separately, we recognize revenue upon the transfer of control of the software, which is generally upon shipment, provided that only inconsequential performance obligations remain on our part and substantive acceptance conditions, if any, have been met. We recognize revenue when there is an approved contract that both parties are committed to perform, both parties rights have been identified, the contract has substance, collection of substantially all the consideration is probable, the transaction price has been determined and allocated over the performance obligations, the performance obligations including substantive acceptance conditions, if any, in the contract have been met, the obligation is not contingent on resale of the product, the buyer’s obligation would not be changed in the event of theft, physical destruction or damage to the product, the buyer acquiring the product for resale has economic substance apart from us and we do not have significant obligations for future performance to directly bring about the resale of the product by the buyer. We establish a reserve for sales returns based on historical trends in product returns and estimates for new items. Payment terms are generally 30 days from shipment. We transfer certain products out of service from their internal use and make them available for sale. The products transferred are typically our standard products in one of the following areas: service loaners, rental or test units; engineering test units; or sales demonstration equipment. Once transferred, the equipment is sold by our regular sales channels as used equipment inventory. These product units often involve refurbishing and an equipment warranty, and are conducted as sales in our normal and ordinary course of business. The transfer amount is the product unit’s net book value and the sale transaction is accounted for as revenue and cost of goods sold. The following table represents our revenues by major categories: Three Months Ended Six Months Ended Net sales by type June 30, Change June 30, June 30, Change June 30, (in thousands) Equipment $ 4,130 66.8 % $ 2,476 $ 7,477 47.7 % $ 5,063 Adapter 1,942 46.7 % 1,324 3,850 44.2 % 2,669 Software and Maintenance 661 (22.7 %) 855 1,421 (16.8 %) 1,708 Total $ 6,733 44.6 % $ 4,655 $ 12,748 35.0 % $ 9,440 |
Share-Based Compensation | All stock-based compensation awards are measured based on estimated fair values on the date of grant and recognized as compensation expense on the straight-line single-option method. Our share-based compensation is reduced for estimated forfeitures at the time of grant and revised as necessary in subsequent periods if actual forfeitures differ from those estimates. |
Income Tax | Income taxes are computed at current enacted tax rates, less tax credits using the asset and liability method. Deferred taxes are adjusted both for items that do not have tax consequences and for the cumulative effect of any changes in tax rates from those previously used to determine deferred tax assets or liabilities. Tax provisions include amounts that are currently payable, changes in deferred tax assets and liabilities that arise because of temporary differences between the timing of when items of income and expense are recognized for financial reporting and income tax purposes, and any changes in the valuation allowance caused by a change in judgment about the realization of the related deferred tax assets. A valuation allowance is established when necessary to reduce deferred tax assets to amounts expected to be realized. The CARES Act, enacted in Q1 2020, accelerated the AMT credit refund of $640,000, which is carried as a current asset. |
COVID-19 | In 2021, we have continued to react to and manage our business relative to the COVID-19 pandemic. During 2020, COVID-19 had impacted all aspects of our business, from customer demand, to supply chain integrity, employee safety, business processes, and financial management. As a global company, we had to manage each of these while working within the guidelines of local and national policy in the U.S., China and Germany. Our philosophy at the start of the outbreak was simple: 1. Keep our people and their families safe; 2. Keep our facilities safe and operational while we serve our customers as an essential business; and 3. Preserve cash We have managed the COVID-19 impact successfully to date, with no known employee transmissions in the workplace and significant preservation of our cash and working capital. Our resilient supply chain model kept our facilities in Shanghai, China and Redmond, Washington open, and serving customers globally. We face continued international travel restrictions, shipping delays, and inability to meet with customers in person. As business has recovered we have been able to respond by having the working capital needed and the workforce in place. In the second quarter, we experienced a surge of demand as customers resumed operations and adding capacity. In supply chains around the world with the re-openings and now, in a believed ripple effect, factories are experiencing the impact of chip shortages on their production plans. This appears to be a shorter-term issue and the outlook for automotive electronics remains strong for a decade. Waves of COVID-19 infection rates and variants have kept or re-imposed revised travel restrictions. Customers largely have not permitted in-person sales and other visits. Converting these interactions to remote and virtual means has meant implementing new processes and technology usage. In production, in addition to adding protective health measures for our employees, we have focused on supply chain resilience and duplicating production capability for some products in both our Shanghai, China and Redmond, USA facilities. We implemented additional supplier financial and other monitoring, as well as adding additional local suppliers and increasing inventory stock levels of key parts. Other than production employees who necessarily are onsite, most other Redmond employees are working remotely with hybrid flexibility to be onsite as desired or needed and this is expected to continue through the summer. China employees are generally onsite. We believe our exposure to COVID-19 risks are reduced by vaccination coverage, which is mid 90% in Redmond with our China and Germany facilities not far behind. |
Recently Adopted Accounting Pronouncements | In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-13, "Measurement of Credit Losses on Financial Instruments," which amends the impairment model by requiring entities to use a forward-looking approach based on expected losses rather than incurred losses to estimate credit losses on certain types of financial instruments. We are planning to adopt the standard effective for years after December 15, 2022 and do not expect this to have a material impact on our financial statements. |
FINANCIAL STATEMENT PREPARATI_3
FINANCIAL STATEMENT PREPARATION (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
FINANCIAL STATEMENT PREPARATION | |
Disaggregation of revenue | Three Months Ended Six Months Ended Net sales by type June 30, Change June 30, June 30, Change June 30, (in thousands) Equipment $ 4,130 66.8 % $ 2,476 $ 7,477 47.7 % $ 5,063 Adapter 1,942 46.7 % 1,324 3,850 44.2 % 2,669 Software and Maintenance 661 (22.7 %) 855 1,421 (16.8 %) 1,708 Total $ 6,733 44.6 % $ 4,655 $ 12,748 35.0 % $ 9,440 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
INVENTORIES | |
Inventories | June 30, December 31, (in thousands) Raw material $ 3,439 $ 3,143 Work-in-process 1,377 1,204 Finished goods 795 923 Inventories $ 5,611 $ 5,270 |
PROPERTY PLANT AND EQUIPMENT _2
PROPERTY PLANT AND EQUIPMENT NET (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
PROPERTY PLANT AND EQUIPMENT NET | |
Property, plant, and equipment, net | June 30, December 31, (in thousands) Leasehold improvements $ 425 $ 421 Equipment 5,570 5,625 Sales demonstration equipment 802 963 6,797 7,009 Less accumulated depreciation 5,826 5,793 Property and equipment, net $ 971 $ 1,216 |
OTHER ACCRUED LIABILITIES (Tabl
OTHER ACCRUED LIABILITIES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
OTHER ACCRUED LIABILITIES | |
Other accrued liabilities | June 30, December 31, (in thousands) Lease liability - short term $ 604 $ 673 Product warranty 383 371 Sales return reserve 71 61 Other taxes 127 109 Other 108 93 Other accrued liabilities $ 1,293 $ 1,307 |
Product warranty liability | June 30, (in thousands) Liability, beginning balance $ 371 Net expenses 383 Warranty claims (383 ) Accrual revisions 12 Liability, ending balance $ 383 |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
LEASES | |
Operating lease commitments | Operating (in thousands) 2021 (remaining) $ 412 2022 678 2023 429 2024 368 2025 67 Thereafter 82 Total $ 2,036 Less Imputed interest (346 ) Total operating lease liabilities $ 1,690 |
Supplemental balance sheet information related to leases | Balance at June 30, Balance at December 31, (in thousands) Right-of-use assets (Long-term other assets) $ 1,569 $ 1,081 Lease liability-short term (Other accrued liabilities) 604 673 Lease liability-long term (Operating lease liabilities) 1,086 588 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
EARNINGS PER SHARE | |
Earnings (loss) per share | Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, (in thousands except per share data) Numerator for basic and diluted earnings (loss) per share: Net income (loss) $ (29 ) $ (1,057 ) $ (362 ) $ (1,611 ) Denominator for basic earnings (loss) per share: Weighted-average shares 8,517 8,302 8,469 8,261 Employee stock options and awards - - - - Denominator for diluted earnings (loss) per share: Adjusted weighted-average shares & assumed conversions of stock options 8,517 8,302 8,469 8,261 Basic and diluted earnings (loss) per share: Basic earnings (loss) per share $ 0.00 $ (0.13 ) $ (0.04 ) $ (0.19 ) Diluted earnings (loss) per share $ 0.00 $ (0.13 ) $ (0.04 ) $ (0.19 ) |
SHAREBASED COMPENSATION (Tables
SHAREBASED COMPENSATION (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
SHAREBASED COMPENSATION | |
Impact on operations of recording share-based compensation | Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, (in thousands) Cost of goods sold $ 16 $ 15 $ 26 $ 21 Research and development 101 132 172 196 Selling, general and administrative 284 334 482 513 Total share-based compensation $ 401 $ 481 $ 680 $ 730 |
Equity award activity | Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, Restricted Stock Units 254,400 376,200 256,400 376,200 Stock Options - - - - |
Future equity compensation expense | June 30, Unamortized future equity compensation expense (in thousands) $ 2,844 Remaining weighted average amortization period (in years) 2.92 |
FINANCIAL STATEMENT PREPARATI_4
FINANCIAL STATEMENT PREPARATION (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Revenues | $ 6,733 | $ 4,655 | $ 12,748 | $ 9,440 |
Change in revenue | 44.60% | 35.00% | ||
Equipment | ||||
Revenues | $ 4,130 | 2,476 | $ 7,477 | 5,063 |
Change in revenue | 66.80% | 47.70% | ||
Adapter | ||||
Revenues | $ 1,942 | 1,324 | $ 3,850 | 2,669 |
Change in revenue | 46.70% | 44.20% | ||
Software and Maintenance | ||||
Revenues | $ 661 | $ 855 | $ 1,421 | $ 1,708 |
Change in revenue | 22.70% | 16.80% |
FINANCIAL STATEMENT PREPARATI_5
FINANCIAL STATEMENT PREPARATION (Details Narrative) | Jun. 30, 2021USD ($) |
FINANCIAL STATEMENT PREPARATION | |
AMT credit refund amount | $ 640,000 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
INVENTORIES | ||
Raw material | $ 3,439 | $ 3,143 |
Work-in-process | 1,377 | 1,204 |
Finished goods | 795 | 923 |
Inventories | $ 5,611 | $ 5,270 |
PROPERTY PLANT AND EQUIPMENT _3
PROPERTY PLANT AND EQUIPMENT NET (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
PROPERTY PLANT AND EQUIPMENT NET | ||
Leasehold improvements | $ 425 | $ 421 |
Equipment | 5,570 | 5,625 |
Sale demonstration equipment | 802 | 963 |
Property and equipment gross | 6,797 | 7,009 |
Less accumulated depreciation | 5,826 | 5,793 |
Property and equipment, net | $ 971 | $ 1,216 |
OTHER ACCRUED LIABILITIES (Deta
OTHER ACCRUED LIABILITIES (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
OTHER ACCRUED LIABILITIES | ||
Lease liability - short term | $ 604 | $ 673 |
Product warranty | 383 | 371 |
Sales return reserve | 71 | 61 |
Other taxes | 127 | 109 |
Other | 108 | 93 |
Other accrued liabilities | $ 1,293 | $ 1,307 |
OTHER ACCRUED LIABILITIES (De_2
OTHER ACCRUED LIABILITIES (Details 1) $ in Thousands | 6 Months Ended |
Jun. 30, 2021USD ($) | |
OTHER ACCRUED LIABILITIES | |
Liability, beginning balance | $ 371 |
Net expenses | 383 |
Warranty claims | 383 |
Accrual revisions | (12) |
Liability, ending balance | $ 383 |
LEASES (Details)
LEASES (Details) $ in Thousands | Jun. 30, 2021USD ($) |
LEASES | |
2021 (remaining) | $ 412 |
2022 | 678 |
2023 | 429 |
2024 | 368 |
2025 | 67 |
Thereafter | 82 |
Total | 2,036 |
Less: imputed interest | 346 |
Total operating lease liability | $ 1,690 |
LEASES (Details 1)
LEASES (Details 1) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
LEASES | ||
Right-of-use assets (Long-term other assets) | $ 1,569 | $ 1,081 |
Lease liability-short term (Other accrued liabilities) | 604 | 673 |
Lease liability-long term (Long-term other payables) | $ 1,086 | $ 588 |
LEASES (Details Narrative)
LEASES (Details Narrative) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021USD ($)ft² | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)ft² | Jun. 30, 2020USD ($) | |
Cash paid for operating lease liabilities | $ | $ 202,000 | $ 189,000 | $ 402,000 | $ 374,000 |
Weighted average remaining lease term | 2 years 9 months 29 days | |||
Weighted average discount rate | 5.00% | 5.00% | ||
Operating lease costs | $ | $ 172,000 | 164,000 | $ 343,000 | 326,000 |
Short-term lease costs | $ | $ 8,000 | $ 8,000 | $ 15,000 | $ 16,000 |
Maturity date | Jul. 31, 2022 | |||
Area of lease | ft² | 20,460 | 20,460 | ||
Shanghai, China | ||||
Maturity date | Oct. 31, 2024 | |||
Area of lease | ft² | 19,400 | 19,400 | ||
Munich, Germany | ||||
Maturity date | Feb. 28, 2022 | |||
Area of lease | ft² | 4,895 | 4,895 |
OTHER COMMITMENTS (Details Narr
OTHER COMMITMENTS (Details Narrative) | Jun. 30, 2021USD ($) |
OTHER COMMITMENTS | |
Purchase commitments and other obligations | $ 2,500,000 |
Purchase commitments and other obligations expected to be paid beyond the next 12 months | $ 81,000 |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
INCOME TAXES (Details Narrative) | ||
Reduction in deferred tax assets and valuation allowance | $ 376,000 | $ 363,000 |
Valuation allowance, net | $ 9,500,000 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
EARNINGS PER SHARE | ||||||
Net income (loss) | $ (29) | $ (333) | $ (1,057) | $ (554) | $ (362) | $ (1,611) |
Denominator for basic earnings (loss) per share: weighted average shares | 8,517 | 8,302 | 8,469 | 8,261 | ||
Employee stock options and awards (in thousands) | 0 | 0 | 0 | 0 | ||
Denominator for diluted earnings (loss) per share: adjusted weighted-average shares and assumed conversions of stock options | 8,517 | 8,302 | 8,469 | 8,261 | ||
Total basic earnings (loss) per share | $ 0 | $ (0.13) | $ (0.04) | $ (0.19) | ||
Total diluted earnings (loss) per share | $ 0 | $ (0.13) | $ (0.04) | $ (0.19) |
EARNINGS PER SHARE (Details Nar
EARNINGS PER SHARE (Details Narrative) - shares | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
EARNINGS PER SHARE | ||
Anti dilutive options to purchase shares | 24,448 | 25,000 |
SHARE BASED COMPENSATION (Detai
SHARE BASED COMPENSATION (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Share-based compensation | $ 401 | $ 481 | $ 680 | $ 730 |
Cost of Goods Sold | ||||
Share-based compensation | 16 | 15 | 26 | 21 |
Research and Development | ||||
Share-based compensation | 101 | 132 | 172 | 196 |
Selling, General and Administrative | ||||
Share-based compensation | $ 284 | $ 334 | $ 482 | $ 513 |
SHARE BASED COMPENSATION (Det_2
SHARE BASED COMPENSATION (Details 1) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
SHAREBASED COMPENSATION | ||||
Restricted stock units | 254,400 | 256,400 | 376,200 | 376,200 |
Stock options | 0 | 0 | 0 | 0 |
SHAREBASED COMPENSATION (Detail
SHAREBASED COMPENSATION (Details 2) $ in Thousands | 6 Months Ended |
Jun. 30, 2021USD ($) | |
SHAREBASED COMPENSATION | |
Unamortized future equity compensation expense | $ 2,844 |
Remaining weighted average amortization period | 2 years 11 months 1 day |