Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2021 | May 03, 2021 | |
Document Information [Line Items] | ||
Entity Registrant Name | LGL GROUP INC | |
Entity Central Index Key | 0000061004 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 5,272,204 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2021 | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity File Number | 001-00106 | |
Entity Tax Identification Number | 38-1799862 | |
Entity Address, Address Line One | 2525 Shader Rd | |
Entity Address, City or Town | Orlando | |
Entity Address, State or Province | FL | |
Entity Address, Postal Zip Code | 32804 | |
City Area Code | 407 | |
Local Phone Number | 298-2000 | |
Entity Incorporation, State or Country Code | DE | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Interactive Data Current | Yes | |
Common Stock [Member] | ||
Document Information [Line Items] | ||
Trading Symbol | LGL | |
Title of 12(b) Security | Common Stock, par value $0.01 | |
Security Exchange Name | NYSE | |
Warrants To Purchase Common Stock [Member] | ||
Document Information [Line Items] | ||
Trading Symbol | LGL WS | |
Title of 12(b) Security | Warrants to Purchase Common Stock, par value $0.01 | |
Security Exchange Name | NYSE |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Current Assets: | ||
Cash and cash equivalents | $ 18,678 | $ 18,331 |
Marketable securities | 5,918 | 5,791 |
Accounts receivable, net of allowances of $191 and $189, respectively | 3,913 | 4,122 |
Inventories, net | 5,339 | 5,280 |
Prepaid expenses and other current assets | 365 | 257 |
Total Current Assets | 34,213 | 33,781 |
Property, plant and equipment: | ||
Land | 536 | 536 |
Buildings and improvements | 4,822 | 4,810 |
Machinery and equipment | 17,818 | 17,775 |
Gross property, plant and equipment | 23,176 | 23,121 |
Less: accumulated depreciation | (20,451) | (20,336) |
Net property, plant, and equipment | 2,725 | 2,785 |
Right-of-use lease assets | 396 | 422 |
Equity investment in unconsolidated subsidiary | 5,721 | 3,072 |
Intangible assets, net | 308 | 327 |
Deferred income taxes, net | 3,023 | 3,052 |
Other assets | 64 | 16 |
Total Assets | 46,450 | 43,455 |
Current Liabilities: | ||
Subscription agreement payable (Note C) | 2,725 | |
Accounts payable | 1,517 | 1,265 |
Accrued compensation and commissions | 1,491 | 1,324 |
Other accrued expenses | 575 | 808 |
Total Current Liabilities | 6,308 | 3,397 |
Long-term lease liabilities | 272 | 293 |
Total Liabilities | 6,580 | 3,690 |
Contingencies (Note N) | ||
Stockholders’ Equity | ||
Common stock, $0.01 par value - 10,000,000 shares authorized; 5,383,300 shares issued and 5,272,204 shares outstanding at March 31, 2021, and 5,409,550 shares issued and 5,272,204 shares outstanding at December 31, 2020 | 53 | 53 |
Additional paid-in capital | 45,555 | 45,477 |
Accumulated deficit | (5,158) | (5,185) |
Treasury stock, 81,584 shares held in treasury at cost at March 31, 2021 and December 31, 2020 | (580) | (580) |
Total Stockholders' Equity | 39,870 | 39,765 |
Total Liabilities and Stockholders' Equity | $ 46,450 | $ 43,455 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Current Assets: | ||
Accounts receivable, allowances | $ 191 | $ 189 |
Stockholders’ Equity | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Common stock, shares issued (in shares) | 5,383,300 | 5,409,550 |
Common stock, shares outstanding (in shares) | 5,272,204 | 5,272,204 |
Treasury stock, (in shares) | 81,584 | 81,584 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Statement [Abstract] | ||
REVENUES | $ 6,536 | $ 8,618 |
Type of Revenue [Extensible List] | us-gaap:ProductMember | us-gaap:ProductMember |
Costs and expenses: | ||
Manufacturing cost of sales | $ 4,401 | $ 5,662 |
Engineering, selling and administrative | 2,195 | 2,296 |
OPERATING (LOSS) INCOME | (60) | 660 |
Other income (expense): | ||
Interest expense, net | (3) | |
Loss on equity investment in unconsolidated subsidiary | (76) | (39) |
Other income (expense), net | 172 | (384) |
Total other income (expense), net | 93 | (423) |
INCOME BEFORE INCOME TAXES | 33 | 237 |
Income tax expense | 6 | 54 |
NET INCOME | $ 27 | $ 183 |
Basic per share information: | ||
Weighted average shares outstanding | 5,272,204 | 5,052,184 |
Net income | $ 0.01 | $ 0.04 |
Diluted per share information: | ||
Weighted average shares outstanding | 5,350,571 | 5,097,879 |
Net income | $ 0.01 | $ 0.04 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholder's Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Treasury Stock [Member] |
Balance at Dec. 31, 2019 | $ 34,893 | $ 50 | $ 41,576 | $ (6,153) | $ (580) |
Balance (in shares) at Dec. 31, 2019 | 4,933,063 | ||||
Net income | 183 | 183 | |||
Exercise of stock options | 58 | 58 | |||
Exercise of stock options (in shares) | 14,000 | ||||
At-the-market stock sales, net of costs | 3,254 | $ 3 | 3,251 | ||
At-the-market stock sales, net of costs (in shares) | 263,725 | ||||
Stock-based compensation | 10 | 10 | |||
Balance at Mar. 31, 2020 | 38,398 | $ 53 | 44,895 | (5,970) | (580) |
Balance (in shares) at Mar. 31, 2020 | 5,210,788 | ||||
Balance at Dec. 31, 2020 | $ 39,765 | $ 53 | 45,477 | (5,185) | (580) |
Balance (in shares) at Dec. 31, 2020 | 5,272,204 | 5,272,204 | |||
Net income | $ 27 | 27 | |||
Stock-based compensation | 78 | 78 | |||
Balance at Mar. 31, 2021 | $ 39,870 | $ 53 | $ 45,555 | $ (5,158) | $ (580) |
Balance (in shares) at Mar. 31, 2021 | 5,272,204 | 5,272,204 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholder's Equity (Unaudited) (Parenthetical) $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Statement Of Stockholders Equity [Abstract] | |
Stock issuance costs | $ 346 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
OPERATING ACTIVITIES | ||
Net income | $ 27 | $ 183 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 115 | 116 |
Amortization of finite-lived intangible assets | 19 | 19 |
Stock-based compensation | 78 | 10 |
Loss from equity investment in unconsolidated subsidiary | 76 | 39 |
Unrealized (gain) loss on marketable securities | (127) | 325 |
Deferred income tax expense | 29 | 59 |
Changes in operating assets and liabilities: | ||
Decrease (increase) in accounts receivable, net | 209 | (374) |
(Increase) decrease in inventories, net | (59) | 30 |
(Increase) decrease in prepaid expenses and other assets | (156) | 126 |
Increase in accounts payable, accrued compensation and commissions and other | 191 | 389 |
Net cash provided by operating activities | 402 | 922 |
INVESTING ACTIVITIES | ||
Capital expenditures | (55) | (56) |
Net cash used in investing activities | (55) | (56) |
FINANCING ACTIVITIES | ||
Proceeds from at-the-market stock sales | 3,254 | |
Proceeds from stock option exercise | 58 | |
Net cash provided by financing activities | 3,312 | |
Increase in cash and cash equivalents | 347 | 4,178 |
Cash and cash equivalents at beginning of period | 18,331 | 12,453 |
Cash and cash equivalents at end of period | 18,678 | 16,631 |
Supplemental Disclosure: | ||
Cash paid for income taxes | 27 | $ 72 |
Non-cash subscription agreement (Note C) | $ 2,725 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | A. Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial reporting and the instructions to Form 10-Q. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 2021 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2021. The information included in this Form 10-Q should be read in conjunction with the |
Summary of Significant Accounti
Summary of Significant Accounting Polices | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Polices | A. Summary of Significant Accounting Polices Principles of Consolidation The consolidated financial statements include the accounts of the Company and all of its majority-owned subsidiaries except its sole variable interest entity (“VIE”), LGL Systems Acquisition Holding Company, LLC (the “Sponsor”). The VIE serves as the sponsor to a special purpose acquisition company (“SPAC”). Intercompany transactions and accounts have been eliminated in consolidation. VIE: Our sole interest in a VIE, the Sponsor, is accounted for under the equity method of accounting and not consolidated. Determining whether to consolidate a VIE requires judgement in assessing whether an entity is a VIE and if we are the entity’s primary beneficiary. If we are the primary beneficiary of a VIE, we are required to consolidate it. To determine if we are the primary beneficiary, we evaluate whether we have the power to direct the activities that most significantly impact the VIE’s economic performance and the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to the VIE. Our evaluation included identification of significant activities and an assessment of our ability to direct those activities, based on operating and other legal agreements as well as governance provisions. As a result of our review, we concluded that we are not the primary beneficiary of the VIE and that consolidation is not warranted. The Company reassesses its evaluation of whether an entity is a VIE when certain reconsideration events occur. The Company reassesses its determination of whether it is the primary beneficiary of a VIE on an ongoing basis based on current facts and circumstances. Equity-Method Investments: When the Company does not have a controlling financial interest in an entity but can exert significant influence over the entity’s operating and financial policies, the investment is accounted for either (i) under the equity method of accounting or (ii) at fair value by electing the fair value option available under GAAP. Significant influence generally exists when the Company owns 20% to 50% of the entity’s common stock or in-substance common stock. Revenue Recognition The Company recognizes revenue from the sale of its products in accordance with the criteria in Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers Step 1: Identify the contract(s) with a customer. Step 2: Identify the performance obligations in the contract. Step 3: Determine the transaction price. Step 4: Allocate the transaction price to the performance obligations in the contract. Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation. The Company meets these conditions upon the Company’s satisfaction of the performance obligation, usually at the time of shipment to the customer, because control passes to the customer at that time. Our standard terms for customers are net due within 30 days, with a few exceptions, none regularly exceeding 60 days. The Company provides disaggregated revenue details by segment in Note L – Segment Information, and geographic markets in Note M – Domestic and Foreign Revenues. The Company offers a limited right of return and/or authorized price protection provisions in its agreements with certain electronic component distributors who resell the Company's products to original equipment manufacturers or electronic manufacturing services companies. As a result, the Company estimates and records a reserve for future returns and other charges against revenue at the time of shipment consistent with the terms of sale. The reserve is estimated based on historical experience with each respective distributor. These reserves and charges are immaterial as the Company does not have a history of significant price protection adjustments or returns. The Company provides a standard assurance warranty that does not create a performance obligation. Practical Expedients: - The Company applies the practical expedient for shipping and handling as fulfillment costs. - The Company expenses sales commissions as sales and marketing expenses in the period they are incurred. Income Taxes The Company periodically undertakes a review of its valuation allowance and it evaluates all positive and negative factors that may affect whether it is more likely than not that the Company would realize its future tax benefits from its deferred tax balances. Impairments of Long-Lived Assets Long-lived assets, including intangible assets subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. Long-lived assets are grouped with other assets to the lowest level to which identifiable cash flows are largely independent of the cash flows of other groups of assets and liabilities. Management assesses the recoverability of the carrying cost of the assets based on a review of projected undiscounted cash flows. If an asset is held for sale, management reviews its estimated fair value less cost to sell. Fair value is determined using pertinent market information, including appraisals or broker's estimates, and/or projected discounted cash flows. In the event an impairment loss is identified, it is recognized based on the amount by which the carrying value exceeds the estimated fair value of the long-lived asset. During the quarter ended March 31, 2021, we performed an assessment to determine if there were any indicators of impairment as a result of the operating conditions resulting from the coronavirus (“COVID-19”) pandemic. We concluded that, while there were events and circumstances in the macro-environment that did impact us, we did not experience any entity-specific indicators of asset impairment and no triggering events occurred . Recent Accounting Pronouncements In Jun e 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2016-13, “ Financial Instruments-Credit Losses: Measurement of Credit Losses on Financial Instruments ,” which changes the impairment model for most financial assets. The standard replaces the incurred loss model with the current expected credit loss (“CECL”) model to estimate credit losses for financial assets. The provisions of the standard are effective for the Company on January 1, 2023; early adoption is permitted. The Company is currently evaluating the impact of adopting this standard on its financial statements. |
Equity Investment in Unconsolid
Equity Investment in Unconsolidated Subsidiary | 3 Months Ended |
Mar. 31, 2021 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Equity Investment in Unconsolidated Subsidiary | C. Equity Investment in Unconsolidated Subsidiary On November 6, 2019, the Company invested $3.35 million in LGL Systems Acquisition Holding Company, LLC, a partially owned subsidiary that serves as the Sponsor of LGL Systems Acquisition Corp., (“the SPAC” or “DFNS”). The SPAC is a publicly-traded company on the NYSE under the ticker symbol “DFNS” which was formed for the purpose of effecting a business combination in the aerospace, defense and communications industries. The Sponsor holds 100% of the SPAC’s Class B common shares, which are restricted and non-tradable, and 5,200,000 private warrants. The Sponsor purchased the private warrants in a private placement that closed simultaneously with the consummation of the SPAC’s initial public offering (“SPAC IPO”). Each private warrant is exercisable to purchase one share of common stock of the SPAC at an exercise price of $11.50 per share. The Company contributed 62.2% of the Sponsor’s risk capital to effect the SPAC IPO. The SPAC IPO closed on November 12, 2019; proceeds from the SPAC IPO totaled $172.5 million. If the SPAC does not complete a business combination within 24 months from the closing of the SPAC IPO, the proceeds from the sale of the private warrants will be used to fund the redemption of the shares sold in the SPAC IPO (subject to the requirements of applicable law); and the private warrants will expire worthless. The Sponsor holds 20% of the total common shares (Class A and Class B) in the SPAC along with the 5,200,000 private warrants. The Company subscribed to a $2.725 million investment into the Sponsor in March 2021 which it funded in May 2021. The PIPE is in connection with the recent announcement by DFNS and IronNet Cybersecurity, Inc. (“IronNet”) of the definitive business combination agreement reached between IronNet and DFNS. The PIPE and business combination are expected to close in the third quarter of 2021, after the required approval by the shareholders of DFNS and the fulfillment of certain other conditions. While the syndicated PIPE investment increases the Company’s commitment to the pro forma IronNet company, its position is not expected to be material to the pro forma capitalization. Upon completion of the business combination, which is subject to regulatory and other approvals, the combined company will be renamed IronNet Cybersecurity, Inc. and will be listed on the NYSE and trade under the ticker symbol “IRNT”. The Sponsor is managed by LGL Systems Nevada Management Partners LLC (“Nevada GP”), an affiliated entity deemed to be under the significant influence of Marc Gabelli, the Company’s non-executive Chairman of the Board, who is also a greater than 10% stockholder of the Company For the three months ended March 31, 2021 and 2020, the Company recognized a loss on equity investment in unconsolidated subsidiary of $76,000 and $39,000, respectively. The Company has recognized a cumulative loss of $354,000 on its investment in the unconsolidated Sponsor as of March 31, 2021 On April 12, 2021, the SEC’s Staff Statement on Accounting and Reporting Considerations for Warrants Issued by Special Purpose Acquisition Companies (the “Staff Statement”) was released. The SPAC evaluated the applicability and impact of the Staff Statement on its historical financial statements that have been filed with the SEC and determined that restatement was required. The SPAC changed its accounting treatment for both its public and private warrants outstanding using liability classification instead of equity classification resulting in a mark to market warrant liability adjustment for each reporting period since issuance in 2019. The Company reports its investment in the Sponsor under the equity method of accounting using hypothetical liquidation at book value (“HLBV”). HLBV determines the amount that would be received by the Company if the partnership were liquidated at book value at the end of each measurement period. The SPAC’s mark to market accounting adjustments for the warrant liability does not change the Company’s HLBV due to the warrants requiring no cash settlement as of December 31, 2020 under a hypothetical liquidation; therefore, the SPAC’s restatement did not impact the Company’s carrying amount of its equity investment in the Sponsor as of March 31, 2021, or any previously reported period. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | D. Related Party Transactions Certain balances held and invested in various mutual funds are managed by a related entity (the "Fund Manager"). Marc Gabelli currently serves as an executive officer of the Fund Manager. The brokerage and fund transactions in 2021 and 2020 were directed solely at the discretion of the Company’s management. As of March 31, 2021 As of December 31, 2020 Marc Gabelli serves as Chairman and Co- Chief Executive Officer Chief Executive Officer and Chief Financial Officer Chief Executive Officer, is also . |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | E . Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value guidance identifies three primary valuation techniques: the market approach, the income approach and the cost approach. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts, such as cash flows or earnings, to a single present amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that currently would be required to replace the service capacity of an asset. The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The fair value hierarchy gives the highest priority to observable inputs such as quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The maximization of observable inputs and the minimization of the use of unobservable inputs are required. Classification within the fair value hierarchy is based upon the objectivity of the inputs that are significant to the valuation of an asset or liability as of the measurement date. The three levels within the fair value hierarchy are characterized as follows: Level 1 - 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 other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include: quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability; and inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 3 - Unobservable inputs for the asset or liability for which there is little, if any, market activity for the asset or liability at the measurement date. Unobservable inputs reflect the Company's own assumptions about what market participants would use to price the asset or liability. These inputs may include internally developed pricing models, discounted cash flow methodologies as well as instruments for which the fair value determination requires significant management judgment. Assets To estimate the market value of its cash and cash equivalents and marketable securities, the Company obtains current market pricing from quoted market sources or uses pricing for identical securities. Assets measured at fair value on a recurring basis are summarized below (in thousands). Level 1 Level 2 Level 3 Total at March 31, 2021 Equity Security $ 11 $ — $ — $ 11 Equity Mutual Fund — 5,907 — 5,907 U.S. Treasury Mutual Fund 13,282 — — 13,282 Level 1 Level 2 Level 3 Total at December 31, 2020 Equity Security $ 11 $ — $ — $ 11 Equity Mutual Fund — 5,780 — 5,780 U.S. Treasury Mutual Fund 13,282 — — 13,282 There were no transfers from Level 3 during the periods presented. The Company also has assets that may be subject to measurement at fair value on a non-recurring basis, including goodwill and intangible assets and other long-lived assets. There were no liabilities subject to fair value on a non-recurring or recurring basis as of March 31, 2021 or December 31, 2020. As of March 31, 2021 and December 31, 2020, the Company had investments in two mutual funds. The Equity Mutual Fund noted above is invested in the Gabelli ABC Fund, and the U.S. Treasury Mutual Fund is invested in the Gabelli US Treasury Money Market Fund. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | F. Inventories Inventories are valued at the lower of cost or net realizable value using the FIFO (first-in, first-out) method. The Company reduces the value of its inventories to net realizable value when the net realizable value is believed to be less than the cost of the item. The reserve for excess and obsolete inventory as of March 31, 2021 and December 31, 2020 was $1,298,000 Inventories are comprised of the following (in thousands): March 31, 2021 December 31, 2020 Raw materials $ 2,116 $ 2,080 Work in process 2,489 2,467 Finished goods 734 733 Total Inventories, net $ 5,339 $ 5,280 |
Intangible Assets
Intangible Assets | 3 Months Ended |
Mar. 31, 2021 | |
Intangible Assets Net Excluding Goodwill [Abstract] | |
Intangible Assets | G . Intangible Assets Intangible assets are recorded at cost less accumulated amortization which is included in engineering, selling and administrative expenses in the accompanying unaudited condensed consolidated statements of operations. Amortization is computed for financial reporting purposes using the straight-line method over the estimated useful lives of the assets, which range up to 10 years. The intangible assets consist of intellectual property and goodwill. The net carrying value of the amortizable intangible assets was $268,000 and |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | H . Stock-Based Compensation Under the Company’s 2011 Incentive Plan, as amended, restricted stock and stock options have been awarded to certain employees as share-based compensation. Compensation expense is based on t he grant-date fair value over the requisite service period. As of December 31, 2020, there was approximately $415,000 of total unrecognized compensation expense related to unvested share-based compensation arrangements, primarily related to restricted stock awards. In March 2021, 26,250 unvested restricted shares were forfeited; total unrecognized compensation expense amounted to $166,000 at March 31, 2021. This cost will be recognized over the weighted average remaining service period of these awards, 2 |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | I . Earnings Per Share The Company computes earnings per share in accordance with ASC 260, Earnings Per Share For the three months ended March 31, 2021, there were warrants to purchase 1,051,664 shares of common stock and options to purchase 25,000 shares of common stock excluded from the diluted earnings per share computation. For the three months ended March 31, 2020, there were options to purchase 25,000 shares of common stock excluded from the diluted earnings per share computation. The warrants and stock options were excluded because the impact of the assumed exercise of such warrants and stock options would have been anti-dilutive. The following table reconciles basic weighted average shares outstanding to diluted weighted average shares outstanding for the three months ended March 31, 2021 and 2020: Three Months Ended March 31, 2021 2020 Weighted average shares outstanding - basic 5,272,204 5,052,184 Effect of diluted securities 78,367 45,695 Weighted average shares outstanding - diluted 5,350,571 5,097,879 |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2021 | |
Stockholders Equity Note [Abstract] | |
Stockholders' Equity | J . Stockholders’ Equity On January 22, 2020, the Company entered into an Open Market Sales Agreement (the “Sales Agreement”) with Jefferies LLC, as sales agent (“Jefferies”), pursuant to which the Company may offer and sell, from time to time, in what is deemed to be an “at the market offering” (“ATM Offering”) through Jefferies, shares of the Company’s common stock, par value $0.01 $15,000,000 263,725 13.65 3,492,000 108,000 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | K . Income Taxes The Company’s quarterly provision for income taxes is measured using an annual effective tax rate, adjusted for discrete items within the period presented. To determine the annual effective tax rate, the Company estimates both the total income (loss) before income taxes for the full year and the jurisdictions in which that income (loss) is subject to tax. The actual effective tax rate for the full year may differ from these estimates if income (loss) before income taxes is greater than or less than what was estimated or if the allocation of income (loss) to jurisdictions in which it is taxed is different from the estimated allocations. The effective tax rate for the three months ended March 31, 2021 and March 31, 2020 was 18.2% and 22.8%, respectively. Differences between the Company’s effective income tax rate and the U.S. federal statutory rate are primarily the impact of state taxes, foreign taxes, non-deductible expenses and excess tax benefits or expense on share-based compensation. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | L . Segment Information The Company has two reportable business segments, electronic components and electronic instruments. T he electronic components segment is focused on the design, manufacture and marketing of highly-engineered, high reliability frequency and spectrum control products. These electronic components ensure reliability and security in aerospace and defense communications, low noise and base accuracy for laboratory instruments, and synchronous data transfers throughout the wireless and Internet infrastructure. The electronic instruments segment is focused on the design and manufacture of high performance Frequency and Time Reference Standards that form the basis for timing and synchronization in various applications. Business segment information follows (in thousands): Three Months Ended March 31, 2021 2020 Revenues from Operations Electronic components $ 6,254 $ 8,276 Electronic instruments 282 342 Total consolidated revenues $ 6,536 $ 8,618 Operating (Loss) Income Electronic components $ 349 $ 871 Electronic instruments 16 37 Unallocated corporate expense (425 ) (248 ) Total operating (loss) income (60 ) 660 Interest expense, net (3 ) — Loss on equity investment in unconsolidated subsidiary (76 ) (39 ) Other income (expense), net 172 (384 ) Total other income (expense) 93 (423 ) Income Before Income Taxes $ 33 $ 237 Operating income is equal to revenues less cost of sales and operating expenses, excluding investment income, interest expense, loss on equity investment and income taxes. |
Domestic and Foreign Revenues
Domestic and Foreign Revenues | 3 Months Ended |
Mar. 31, 2021 | |
Revenues [Abstract] | |
Domestic and Foreign Revenues | M . Domestic and Foreign Revenues Significant foreign revenues from operations (10% or more of foreign sales) follows (in thousands): Three Months Ended March 31, 2021 2020 Malaysia $ 609 $ 1,018 Hong Kong 189 246 All other foreign countries 550 822 Total foreign revenues $ 1,348 $ 2,086 Total domestic revenue $ 5,188 $ 6,532 The Company allocates its foreign revenue based on the customer's ship-to location. |
Contingencies
Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Contingencies | N . Contingencies In the ordinary course of business, the Company and its subsidiaries may become defendants in certain product liability, patent infringement, worker claims and other litigation. The Company records a liability when it is probable that a loss has been incurred and the amount is reasonably estimable. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Leases | O . Leases The Company leases certain manufacturing and office space and equipment. The Company determines if an arrangement is a lease at inception. A contract is, or contains, a lease if the contract conveys the right to control the use of identified property, plant or equipment (an identified asset) for a period of time in exchange for consideration. Amounts associated with operating leases, which are not short-term, are included in right-of-use lease assets, and other accrued expenses and long-term lease liabilities in the Company’s condensed consolidated balance sheet. Right-of-use lease assets represents the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Right-of-use lease assets and liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the expected lease term. The Company uses its incremental borrowing rate at the lease commencement date in determining the present value of lease payments. Short-term l The Company leases certain property under operating leases with terms that range from one to five years. Certain of these leases have one or more options to renew, with renewal terms that can extend the lease term from one to 10 years or more, and the exercise of lease renewal options under these leases is at our sole discretion. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. Future minimum lease payment obligations under operating leases are as follows (in thousands): March 31, 2021 2021 $ 106 2022 113 2023 113 2024 113 2025 13 Total lease payments 458 Less: interest (62 ) Total lease payments $ 396 |
Summary of Significant Accoun_2
Summary of Significant Accounting Polices (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Company and all of its majority-owned subsidiaries except its sole variable interest entity (“VIE”), LGL Systems Acquisition Holding Company, LLC (the “Sponsor”). The VIE serves as the sponsor to a special purpose acquisition company (“SPAC”). Intercompany transactions and accounts have been eliminated in consolidation. VIE: Our sole interest in a VIE, the Sponsor, is accounted for under the equity method of accounting and not consolidated. Determining whether to consolidate a VIE requires judgement in assessing whether an entity is a VIE and if we are the entity’s primary beneficiary. If we are the primary beneficiary of a VIE, we are required to consolidate it. To determine if we are the primary beneficiary, we evaluate whether we have the power to direct the activities that most significantly impact the VIE’s economic performance and the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to the VIE. Our evaluation included identification of significant activities and an assessment of our ability to direct those activities, based on operating and other legal agreements as well as governance provisions. As a result of our review, we concluded that we are not the primary beneficiary of the VIE and that consolidation is not warranted. The Company reassesses its evaluation of whether an entity is a VIE when certain reconsideration events occur. The Company reassesses its determination of whether it is the primary beneficiary of a VIE on an ongoing basis based on current facts and circumstances. Equity-Method Investments: When the Company does not have a controlling financial interest in an entity but can exert significant influence over the entity’s operating and financial policies, the investment is accounted for either (i) under the equity method of accounting or (ii) at fair value by electing the fair value option available under GAAP. Significant influence generally exists when the Company owns 20% to 50% of the entity’s common stock or in-substance common stock. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue from the sale of its products in accordance with the criteria in Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers Step 1: Identify the contract(s) with a customer. Step 2: Identify the performance obligations in the contract. Step 3: Determine the transaction price. Step 4: Allocate the transaction price to the performance obligations in the contract. Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation. The Company meets these conditions upon the Company’s satisfaction of the performance obligation, usually at the time of shipment to the customer, because control passes to the customer at that time. Our standard terms for customers are net due within 30 days, with a few exceptions, none regularly exceeding 60 days. The Company provides disaggregated revenue details by segment in Note L – Segment Information, and geographic markets in Note M – Domestic and Foreign Revenues. The Company offers a limited right of return and/or authorized price protection provisions in its agreements with certain electronic component distributors who resell the Company's products to original equipment manufacturers or electronic manufacturing services companies. As a result, the Company estimates and records a reserve for future returns and other charges against revenue at the time of shipment consistent with the terms of sale. The reserve is estimated based on historical experience with each respective distributor. These reserves and charges are immaterial as the Company does not have a history of significant price protection adjustments or returns. The Company provides a standard assurance warranty that does not create a performance obligation. Practical Expedients: - The Company applies the practical expedient for shipping and handling as fulfillment costs. - The Company expenses sales commissions as sales and marketing expenses in the period they are incurred. |
Income Taxes | Income Taxes The Company periodically undertakes a review of its valuation allowance and it evaluates all positive and negative factors that may affect whether it is more likely than not that the Company would realize its future tax benefits from its deferred tax balances. |
Impairments of Long-Lived Assets | Impairments of Long-Lived Assets Long-lived assets, including intangible assets subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. Long-lived assets are grouped with other assets to the lowest level to which identifiable cash flows are largely independent of the cash flows of other groups of assets and liabilities. Management assesses the recoverability of the carrying cost of the assets based on a review of projected undiscounted cash flows. If an asset is held for sale, management reviews its estimated fair value less cost to sell. Fair value is determined using pertinent market information, including appraisals or broker's estimates, and/or projected discounted cash flows. In the event an impairment loss is identified, it is recognized based on the amount by which the carrying value exceeds the estimated fair value of the long-lived asset. During the quarter ended March 31, 2021, we performed an assessment to determine if there were any indicators of impairment as a result of the operating conditions resulting from the coronavirus (“COVID-19”) pandemic. We concluded that, while there were events and circumstances in the macro-environment that did impact us, we did not experience any entity-specific indicators of asset impairment and no triggering events occurred . |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In Jun e 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2016-13, “ Financial Instruments-Credit Losses: Measurement of Credit Losses on Financial Instruments ,” which changes the impairment model for most financial assets. The standard replaces the incurred loss model with the current expected credit loss (“CECL”) model to estimate credit losses for financial assets. The provisions of the standard are effective for the Company on January 1, 2023; early adoption is permitted. The Company is currently evaluating the impact of adopting this standard on its financial statements. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Assets Measured at Fair Value on Recurring Basis | Assets measured at fair value on a recurring basis are summarized below (in thousands). Level 1 Level 2 Level 3 Total at March 31, 2021 Equity Security $ 11 $ — $ — $ 11 Equity Mutual Fund — 5,907 — 5,907 U.S. Treasury Mutual Fund 13,282 — — 13,282 Level 1 Level 2 Level 3 Total at December 31, 2020 Equity Security $ 11 $ — $ — $ 11 Equity Mutual Fund — 5,780 — 5,780 U.S. Treasury Mutual Fund 13,282 — — 13,282 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of Components of Inventory | Inventories are comprised of the following (in thousands): March 31, 2021 December 31, 2020 Raw materials $ 2,116 $ 2,080 Work in process 2,489 2,467 Finished goods 734 733 Total Inventories, net $ 5,339 $ 5,280 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Reconciliation of Basic to Diluted Weighted Average Shares Outstanding | The following table reconciles basic weighted average shares outstanding to diluted weighted average shares outstanding for the three months ended March 31, 2021 and 2020: Three Months Ended March 31, 2021 2020 Weighted average shares outstanding - basic 5,272,204 5,052,184 Effect of diluted securities 78,367 45,695 Weighted average shares outstanding - diluted 5,350,571 5,097,879 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Reportable Business Segment | Business segment information follows (in thousands): Three Months Ended March 31, 2021 2020 Revenues from Operations Electronic components $ 6,254 $ 8,276 Electronic instruments 282 342 Total consolidated revenues $ 6,536 $ 8,618 Operating (Loss) Income Electronic components $ 349 $ 871 Electronic instruments 16 37 Unallocated corporate expense (425 ) (248 ) Total operating (loss) income (60 ) 660 Interest expense, net (3 ) — Loss on equity investment in unconsolidated subsidiary (76 ) (39 ) Other income (expense), net 172 (384 ) Total other income (expense) 93 (423 ) Income Before Income Taxes $ 33 $ 237 |
Domestic and Foreign Revenues (
Domestic and Foreign Revenues (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Revenues [Abstract] | |
Significant Foreign Revenues from Operations | Significant foreign revenues from operations (10% or more of foreign sales) follows (in thousands): Three Months Ended March 31, 2021 2020 Malaysia $ 609 $ 1,018 Hong Kong 189 246 All other foreign countries 550 822 Total foreign revenues $ 1,348 $ 2,086 Total domestic revenue $ 5,188 $ 6,532 The Company allocates its foreign revenue based on the customer's ship-to location. |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Schedule of Future Minimum Payment Under Operating Lease Liabilities | Future minimum lease payment obligations under operating leases are as follows (in thousands): March 31, 2021 2021 $ 106 2022 113 2023 113 2024 113 2025 13 Total lease payments 458 Less: interest (62 ) Total lease payments $ 396 |
Summary of Significant Accoun_3
Summary of Significant Accounting Polices - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2021 | |
ASU 2014-09 [Member] | |
Summary Of Significant Accounting Policies [Line Items] | |
Revenue, performance obligation, description of timing | The Company meets these conditions upon the Company’s satisfaction of the performance obligation, usually at the time of shipment to the customer, because control passes to the customer at that time. Our standard terms for customers are net due within 30 days, with a few exceptions, none regularly exceeding 60 days. |
Minimum [Member] | |
Summary Of Significant Accounting Policies [Line Items] | |
Equity method investment ownership percentage | 20.00% |
Minimum [Member] | ASU 2014-09 [Member] | |
Summary Of Significant Accounting Policies [Line Items] | |
Customer due days | 30 days |
Maximum [Member] | |
Summary Of Significant Accounting Policies [Line Items] | |
Equity method investment ownership percentage | 50.00% |
Maximum [Member] | ASU 2014-09 [Member] | |
Summary Of Significant Accounting Policies [Line Items] | |
Customer due days | 60 days |
Equity Investment in Unconsol_2
Equity Investment in Unconsolidated Subsidiary - Additional Information (Details) - USD ($) | Nov. 06, 2019 | Mar. 31, 2021 | Mar. 31, 2020 |
Schedule Of Equity Method Investments [Line Items] | |||
Investment funded description | The Company subscribed to a $2.725 million investment into the Sponsor in March 2021 which it funded in May 2021. | ||
Investment amount under sponser syndication | $ 5,660,000 | ||
Common Class A | Private Placement | |||
Schedule Of Equity Method Investments [Line Items] | |||
Amount of share under private placement | $ 125,000,000 | ||
Shares issued under private placement | 12,500,000 | ||
LGL Systems Acquisition Holdings Company, LLC [Member] | |||
Schedule Of Equity Method Investments [Line Items] | |||
Contribution to fund purchase of private warrants | $ 3,350,000 | ||
Percentage of risk capital contributed to effect IPO | 62.20% | ||
Number of restricted and non-tradeable shares held | 5,200,000 | ||
Proceeds from subscription of investment | $ 2,725,000 | ||
LGL Systems Acquisition Holdings Company, LLC [Member] | L G L Systems Acquisition Corp | |||
Schedule Of Equity Method Investments [Line Items] | |||
Percentage of risk capital contributed to effect IPO | 20.00% | ||
Amount raised through offering | $ 172,500,000 | ||
Class of warrants held | 5,200,000 | ||
LGL Systems Acquisition Holdings Company, LLC [Member] | Private Placement | |||
Schedule Of Equity Method Investments [Line Items] | |||
Warrant exercise/ strike price | $ 11.50 | ||
LGL Systems Acquisition Holdings Company, LLC [Member] | Class B Common Shares [Member] | |||
Schedule Of Equity Method Investments [Line Items] | |||
Percentage of sponsorship owned | 100.00% | ||
LGL Systems Acquisition Holdings Company, LLC [Member] | Common Stock [Member] | Private Placement | |||
Schedule Of Equity Method Investments [Line Items] | |||
Warrant exercisable to purchase common stock | 1 | ||
LGL Systems Acquisition Holdings Company, LLC [Member] | |||
Schedule Of Equity Method Investments [Line Items] | |||
Equity losses | $ 76,000 | $ 39,000 | |
Cumulative loss on investments | $ 354,000 | ||
LGL Systems Acquisition Holdings Company, LLC [Member] | Minimum [Member] | |||
Schedule Of Equity Method Investments [Line Items] | |||
Percentage of sponsorship owned | 10.00% |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Related Party Transaction [Line Items] | |||
Balance with Fund Manager | $ 19,189,000 | $ 19,062,000 | |
Maximum [Member] | |||
Related Party Transaction [Line Items] | |||
Fund management fee percent | 0.25% | ||
Other Income (Expense) [Member] | |||
Related Party Transaction [Line Items] | |||
Investment income generated from mutual funds | $ 127,000 | $ 293,000 | |
Cash and Cash Equivalents [Member] | |||
Related Party Transaction [Line Items] | |||
Balance with Fund Manager | 13,282,000 | 13,282,000 | |
Marketable Securities [Member] | |||
Related Party Transaction [Line Items] | |||
Balance with Fund Manager | $ 5,907,000 | $ 5,780,000 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets Measured at Fair Value on Recurring Basis (Details) - Recurring [Member] - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Equity Security [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair value assets | $ 11 | $ 11 |
Equity Mutual Fund [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair value assets | 5,907 | 5,780 |
U.S. Treasury Mutual Fund [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair value assets | 13,282 | 13,282 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Equity Security [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair value assets | 11 | 11 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | U.S. Treasury Mutual Fund [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair value assets | 13,282 | 13,282 |
Significant Other Observable Inputs (Level 2) [Member] | Equity Mutual Fund [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair value assets | $ 5,907 | $ 5,780 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) $ in Thousands | Mar. 31, 2021USD ($)MutualFund | Dec. 31, 2020USD ($)MutualFund |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Number of mutual fund investment | MutualFund | 2 | 2 |
Non-Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other liabilities, fair value disclosure, non-recurring | $ | $ 0 | $ 0 |
Inventories - Additional Inform
Inventories - Additional Information (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Reserve for excess and obsolete inventory | $ 1,298 | $ 1,219 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Classification of Inventories [Abstract] | ||
Raw materials | $ 2,116 | $ 2,080 |
Work in process | 2,489 | 2,467 |
Finished goods | 734 | 733 |
Total Inventories, net | $ 5,339 | $ 5,280 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets carrying value | $ 268,000 | $ 287,000 |
Goodwill | $ 40,000 | $ 40,000 |
Maximum [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Estimated useful life of intangible assets | 10 years |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation expense | $ 415,000 | |
Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation expense | $ 166,000 | |
Unvested restricted shares forfeited | 26,250 | |
Unrecognized compensation expense, recognition period | 2 years 9 months | |
Stock Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation expense, recognition period | 1 year 6 months |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Details) - shares | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Options [Member] | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Securities excluded from the diluted earnings per share computation (in shares) | 25,000 | 25,000 |
Warrant [Member] | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Securities excluded from the diluted earnings per share computation (in shares) | 1,051,664 |
Earnings Per Share - Reconcilia
Earnings Per Share - Reconciliation of Basic to Diluted Weighted Average Shares Outstanding (Details) - shares | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | ||
Weighted average shares outstanding - basic | 5,272,204 | 5,052,184 |
Effect of diluted securities | 78,367 | 45,695 |
Weighted average shares outstanding - diluted | 5,350,571 | 5,097,879 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - USD ($) | Jan. 22, 2020 | Mar. 31, 2020 | Mar. 31, 2021 | Dec. 31, 2020 |
Equity Class Of Treasury Stock [Line Items] | ||||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | ||
Open Market Sale Agreement [Member] | Jefferies LLC [Member] | ||||
Equity Class Of Treasury Stock [Line Items] | ||||
Common stock, par value (in dollars per share) | $ 0.01 | |||
Shares sold in the offering | 263,725 | |||
Price per share | $ 13.65 | |||
Amount raised through offering | $ 3,492,000 | |||
Brokerage charges | $ 108,000 | |||
Form S-3 and ATM registration costs | $ 238,000 | |||
Open Market Sale Agreement [Member] | Jefferies LLC [Member] | Maximum [Member] | ||||
Equity Class Of Treasury Stock [Line Items] | ||||
Aggregate offering price | $ 15,000,000 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate | 18.20% | 22.80% |
Segment Information - Additiona
Segment Information - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2021Segment | |
Segment Reporting [Abstract] | |
Number of reportable business segments | 2 |
Segment Information - Schedule
Segment Information - Schedule of Reportable Business Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Revenues from Operations | ||
Revenues from operations | $ 6,536 | $ 8,618 |
Operating (Loss) Income | ||
Total operating (loss) income | (60) | 660 |
Interest expense, net | (3) | |
Loss on equity investment in unconsolidated subsidiary | (76) | (39) |
Other income (expense), net | 172 | (384) |
Total other income (expense), net | 93 | (423) |
INCOME BEFORE INCOME TAXES | 33 | 237 |
Unallocated corporate expense [Member] | ||
Operating (Loss) Income | ||
Total operating (loss) income | (425) | (248) |
Electronic components [Member] | ||
Revenues from Operations | ||
Revenues from operations | 6,254 | 8,276 |
Electronic components [Member] | Reportable Segment [Member] | ||
Operating (Loss) Income | ||
Total operating (loss) income | 349 | 871 |
Electronic instruments [Member] | ||
Revenues from Operations | ||
Revenues from operations | 282 | 342 |
Electronic instruments [Member] | Reportable Segment [Member] | ||
Operating (Loss) Income | ||
Total operating (loss) income | $ 16 | $ 37 |
Domestic and Foreign Revenues -
Domestic and Foreign Revenues - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2021 | |
Foreign [Member] | Sales Revenue, Segment [Member] | Customer Concentration Risk [Member] | |
Entity Wide Revenue Major Customer [Line Items] | |
Portion of foreign sales | 10.00% |
Domestic and Foreign Revenues_2
Domestic and Foreign Revenues - Significant Foreign Revenues from Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Entity Wide Revenue Major Customer [Line Items] | ||
Revenues from operations | $ 6,536 | $ 8,618 |
Malaysia [Member] | ||
Entity Wide Revenue Major Customer [Line Items] | ||
Revenues from operations | 609 | 1,018 |
Hong Kong [Member] | ||
Entity Wide Revenue Major Customer [Line Items] | ||
Revenues from operations | 189 | 246 |
All other foreign countries [Member] | ||
Entity Wide Revenue Major Customer [Line Items] | ||
Revenues from operations | 550 | 822 |
Foreign [Member] | ||
Entity Wide Revenue Major Customer [Line Items] | ||
Revenues from operations | 1,348 | 2,086 |
Domestic [Member] | ||
Entity Wide Revenue Major Customer [Line Items] | ||
Revenues from operations | $ 5,188 | $ 6,532 |
Leases - Additional Information
Leases - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2021 | |
Lessee Lease Description [Line Items] | |
Operating lease, existence of option to extend | true |
Maximum [Member] | |
Lessee Lease Description [Line Items] | |
Leases, initial term | 12 months |
Operating lease renewal term | 10 years |
Lessee operating lease term of certain property | 5 years |
Minimum [Member] | |
Lessee Lease Description [Line Items] | |
Operating lease renewal term | 1 year |
Lessee operating lease term of certain property | 1 year |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Payment Under Operating Lease Liabilities (Details) $ in Thousands | Mar. 31, 2021USD ($) |
Leases [Abstract] | |
2021 | $ 106 |
2022 | 113 |
2023 | 113 |
2024 | 113 |
2025 | 13 |
Total lease payments | 458 |
Less: interest | (62) |
Total lease payments | $ 396 |